A message from the CEO
April 28, 2010
2009 was a challenging year for US Ecology as we experienced a soft business climate and uncertain economic times. We responded to these difficult times by rescaling and refocusing our business. 2010, while starting slowly, is showing signs of recovery. I believe we are now well-positioned to take advantage of these improving conditions.
Profitable, Strong and Stable
All four of our operating facilities continue to produce solid earnings. We have no debt and over $30 million in cash. Our recurring business from ongoing industrial activities ("Base Business") while sluggish appears to have bottomed out. Indications are that our business from discrete clean-ups ("Event Business"), which has been hit particularly hard, is improving. While demanding, we have navigated these tough times and have emerged a stronger, more focused company.
Investing in the Future
Because of our financial strength, we are able to continue to invest in our future. In 2009, we invested over $9 million in property, plant and equipment. In 2010, our capital spending plan is over $13 million or 40% higher than 2009. We continue to invest in landfill space, treatment capabilities, and infrastructure development. Consequently, we will be able take advantage of improving market conditions and large scale clean-up opportunities as business conditions improve.
Sustainability
Exceptional execution and superior customer service are fundamental to our success. And when combined with our rigorous asset and expense management, we have a sustainable strategy for delivering long term shareholder value. We are focused and committed to protecting people and the environment from the hazardous materials that we handle through our robust and dynamic health, safety, and compliance programs. All together we have a uniquely sustainable business model.
Acquisitions are Key to Long Term Growth
Over the years, we have proven ourselves to be excellent asset managers. I believe we have been able to extract more from our operating assets than our competitors do from theirs. However, for us to achieve our long term growth goals, we will need to acquire more operating assets. Our management team is committed to finding the right assets at the right price in 2010.
Our People
I am fortunate to be surrounded by a committed, proven, and capable management team that shares a common vision for growing our business. This team provides leadership to a dedicated, knowledgeable, and experienced staff without which we could not succeed. The right people, in the right jobs, doing the right things will always be the key to our success.
In closing, my primary goal as CEO is simple-to create sustainable and increasing value for our shareholders, while providing our employees with a safe and healthy working environment. We will achieve this by providing our customers with safe, compliant, and cost-effective solutions to their hazardous and radioactive waste problems. While uncertainties remain, I am genuinely enthusiastic about our future.
Regards,
Jim Baumgardner
President and Chief Executive Officer
