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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

or

TRANSITION REPORT PURSUANT TO Section 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                        to                       .

Commission file number: 000-11688

Graphic

US ECOLOGY, INC.

(Exact name of registrant as specified in its charter)

Delaware

95-3889638

(State or other jurisdiction of incorporation or

(I.R.S. Employer Identification No.)

organization)

101 S. Capitol Blvd., Suite 1000

BoiseIdaho

83702

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (208) 331-8400

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

ECOL

Nasdaq Global Select Market

Warrants to Purchase Common Stock

ECOLW

Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-Accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes       No  

At October 29, 2019, there were 22,093,904 shares of the registrant’s Common Stock outstanding.

Table of Contents

US ECOLOGY, INC.

FORM 10-Q

TABLE OF CONTENTS

Item

    

Page

PART I — FINANCIAL INFORMATION

1.

Financial Statements (Unaudited)

3

Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018

3

Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018

4

Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2019 and 2018

5

Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018

6

Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2019 and 2018

7

Notes to Consolidated Financial Statements

8

Report of Independent Registered Public Accounting Firm

31

2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

32

3.

Quantitative and Qualitative Disclosures About Market Risk

48

4.

Controls and Procedures

49

PART II — OTHER INFORMATION

Cautionary Statement

50

1.

Legal Proceedings

51

1A.

Risk Factors

51

2.

Unregistered Sales of Equity Securities and Use of Proceeds

51

3.

Defaults Upon Senior Securities

52

4.

Mine Safety Disclosures

52

5.

Other Information

52

6.

Exhibits

53

SIGNATURE

54

2

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

US ECOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except par value amount)

    

September 30, 2019

    

December 31, 2018

Assets

Current Assets:

Cash and cash equivalents

$

21,074

$

31,969

Receivables, net

 

155,826

 

144,690

Prepaid expenses and other current assets

 

16,014

 

10,938

Income taxes receivable

4,786

7,071

Total current assets

 

197,700

 

194,668

Property and equipment, net

 

273,781

 

258,443

Operating lease assets

17,496

Restricted cash and investments

 

5,045

 

4,941

Intangible assets, net

 

275,983

 

279,666

Goodwill

 

219,181

 

207,177

Other assets

 

10,963

 

3,003

Total assets

$

1,000,149

$

947,898

Liabilities and Stockholders’ Equity

Current Liabilities:

Accounts payable

$

23,162

$

17,754

Deferred revenue

 

12,278

 

10,451

Accrued liabilities

 

33,369

 

35,524

Accrued salaries and benefits

 

19,469

 

16,732

Income taxes payable

 

275

 

505

Short-term borrowings

1,535

Current portion of closure and post-closure obligations

 

2,196

 

2,266

Current portion of operating lease liabilities

4,914

Total current liabilities

 

97,198

 

83,232

Long-term debt

 

354,000

 

364,000

Long-term closure and post-closure obligations

 

78,203

 

76,097

Long-term operating lease liabilities

12,590

Other long-term liabilities

 

3,792

 

2,146

Deferred income taxes, net

 

68,399

 

63,206

Total liabilities

 

614,182

 

588,681

Commitments and contingencies

Stockholders’ Equity:

Common stock $0.01 par value, 50,000 authorized; 22,094 and 22,040 shares issued and outstanding, respectively

 

221

 

220

Additional paid-in capital

 

185,940

 

183,834

Retained earnings

 

214,013

 

189,324

Treasury stock, at cost, 13 and 8 shares, respectively

 

(772)

 

(370)

Accumulated other comprehensive loss

 

(13,435)

 

(13,791)

Total stockholders’ equity

 

385,967

 

359,217

Total liabilities and stockholders’ equity

$

1,000,149

$

947,898

The accompanying notes are an integral part of these consolidated financial statements.

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US ECOLOGY, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

2019

    

2018

    

2019

    

2018

Revenue

$

167,402

$

151,416

$

454,241

$

408,387

Direct operating costs

 

110,862

 

104,116

 

312,877

 

283,968

Gross profit

 

56,540

 

47,300

 

141,364

 

124,419

Selling, general and administrative expenses

 

33,329

 

23,649

 

77,683

 

67,037

Impairment charges

3,666

3,666

Operating income

 

23,211

 

19,985

 

63,681

 

53,716

Other income (expense):

Interest income

 

158

 

34

 

567

 

97

Interest expense

 

(3,891)

 

(3,066)

 

(11,509)

 

(8,782)

Foreign currency loss

 

(90)

 

(303)

 

(613)

 

(456)

Other

 

110

 

177

 

342

 

2,493

Total other expense

 

(3,713)

 

(3,158)

 

(11,213)

 

(6,648)

Income before income taxes

 

19,498

 

16,827

 

52,468

 

47,068

Income tax expense

 

6,428

 

3,400

 

15,864

 

11,178

Net income

$

13,070

$

13,427

$

36,604

$

35,890

Earnings per share:

Basic

$

0.59

$

0.61

$

1.66

$

1.64

Diluted

$

0.59

$

0.61

$

1.65

$

1.63

Shares used in earnings per share calculation:

Basic

 

22,013

 

21,928

 

22,002

 

21,866

Diluted

 

22,231

 

22,099

 

22,212

 

22,027

The accompanying notes are an integral part of these consolidated financial statements.

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US ECOLOGY, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

2019

    

2018

    

2019

    

2018

Net income

$

13,070

$

13,427

$

36,604

$

35,890

Other comprehensive income (loss):

Foreign currency translation gain (loss)

 

(995)

 

1,590

 

2,374

 

(1,878)

Net changes in interest rate hedge, net of taxes of $(40), $114, $(537) and $706, respectively

(150)

428

(2,018)

2,651

Comprehensive income, net of tax

$

11,925

$

15,445

$

36,960

$

36,663

The accompanying notes are an integral part of these consolidated financial statements.

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US ECOLOGY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Nine Months Ended September 30, 

    

2019

    

2018

Cash flows from operating activities:

Net income

$

36,604

$

35,890

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of property and equipment

 

26,656

 

20,991

Amortization of intangible assets

 

8,600

 

6,925

Accretion of closure and post-closure obligations

 

3,397

 

3,242

Property and equipment impairment charges

25

Goodwill and intangible asset impairment charges

3,666

Unrealized foreign currency loss (gain)

 

(361)

 

899

Deferred income taxes

 

3,873

 

4,730

Share-based compensation expense

 

3,713

 

3,272

Unrecognized tax benefits

 

(238)

674

Net loss (gain) on disposition of assets

 

665

 

(57)

Gain on insurance proceeds from damaged property and equipment

(9,651)

Amortization of debt issuance costs

613

607

Changes in assets and liabilities (net of effects of business acquisitions):

Receivables

 

(9,449)

 

(27,573)

Income taxes receivable

 

2,292

 

(7,878)

Other assets

 

(7,206)

 

(2,355)

Accounts payable and accrued liabilities

 

1,873

 

11,218

Deferred revenue

 

1,770

 

3,579

Accrued salaries and benefits

 

2,665

 

1,576

Income taxes payable

 

(425)

 

(2,884)

Closure and post-closure obligations

 

(1,414)

 

(1,026)

Net cash provided by operating activities

 

64,002

 

55,496

Cash flows from investing activities:

Purchases of property and equipment

 

(38,443)

 

(25,791)

Business acquisitions (net of cash acquired)

(17,851)

(21,253)

Insurance proceeds from damaged property and equipment

10,000

Minority interest investment

(7,870)

Proceeds from sale of property and equipment

 

549

 

307

Purchases of restricted investments

 

(798)

 

(673)

Proceeds from sale of restricted investments

 

751

 

583

Net cash used in investing activities

 

(53,662)

 

(46,827)

Cash flows from financing activities:

Proceeds from long-term debt

20,000

Payments on long-term debt

(30,000)

Payments on short-term borrowings

(51,018)

Proceeds from short-term borrowings

52,553

Dividends paid

 

(11,915)

 

(11,838)

Payment of equipment financing obligations

(619)

(326)

Proceeds from exercise of stock options

 

63

 

2,427

Other

 

(915)

 

(314)

Net cash used in financing activities

 

(21,851)

 

(10,051)

Effect of foreign exchange rate changes on cash

 

673

 

(578)

Decrease in Cash and cash equivalents and restricted cash

 

(10,838)

 

(1,960)

Cash and cash equivalents and restricted cash at beginning of period

 

32,753

 

28,799

Cash and cash equivalents and restricted cash at end of period

$

21,915

$

26,839

Reconciliation of Cash and cash equivalents and restricted cash

Cash and cash equivalents at beginning of period

31,969

27,042

Restricted cash at beginning of period

784

1,757

Cash and cash equivalents and restricted cash at beginning of period

$

32,753

$

28,799

Cash and cash equivalents at end of period

21,074

26,076

Restricted cash at end of period

841

763

Cash and cash equivalents and restricted cash at end of period

$

21,915

$

26,839

Supplemental Disclosures:

Income taxes paid, net of receipts

$

10,422

$

17,842

Interest paid

$

10,340

$

8,001

Non-cash investing and financing activities:

Capital expenditures in accounts payable

$

558

$

2,684

Restricted stock issued from treasury shares

$

514

$

11

The accompanying notes are an integral part of these consolidated financial statements.

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US ECOLOGY, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(In thousands)

Three Months Ended September 30, 

Nine Months Ended September 30, 

    

2019

    

2018

    

2019

    

2018

Total stockholders' equity, beginning balances

$

376,759

$

340,300

$

359,217

$

324,077

Common stock:

Beginning balances

$

221

$

220

$

220

$

218

Stock option exercises and issuance of common stock and restricted common stock

 

 

1

 

2

Ending balances

$

221

$

220

$

221

$

220

Additional paid-in capital:

Beginning balances

$

184,747

$

180,687

$

183,834

$

177,498

Share-based compensation

 

1,246

1,193

 

3,713

 

3,272

Stock option exercises and issuance of common stock and restricted common stock

10

857

(1,093)

1,978

Issuance of restricted common stock from treasury shares

(63)

(514)

(11)

Ending balances

$

185,940

$

182,737

$

185,940

$

182,737

Retained earnings:

Beginning balances

$

204,916

$

170,112

$

189,324

$

155,533

Net income

 

13,070

13,427

 

36,604

 

35,890

Dividends paid

(3,973)

(3,954)

(11,915)

(11,838)

Ending balances

$

214,013

$

179,585

$

214,013

$

179,585

Treasury stock:

Beginning balances

$

(835)

$

(370)

$

(370)

$

(68)

Repurchase of common stock

 

 

(916)

 

(313)

Issuance of restricted common stock from treasury shares

63

514

11

Ending balances

$

(772)

$

(370)

$

(772)

$

(370)

Accumulated other comprehensive income (loss):

Beginning balances

$

(12,290)

$

(10,349)

$

(13,791)

$

(9,104)

Other comprehensive income (loss)

 

(1,145)

2,018

 

356

 

773

Ending balances

$

(13,435)

$

(8,331)

$

(13,435)

$

(8,331)

Total stockholders' equity, ending balances

$

385,967

$

353,841

$

385,967

$

353,841

The accompanying notes are an integral part of these consolidated financial statements.

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US ECOLOGY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1.     GENERAL

Basis of Presentation

The accompanying unaudited consolidated financial statements include the results of operations, financial position and cash flows of US Ecology, Inc. and its wholly-owned subsidiaries. All inter-company balances have been eliminated. Throughout these consolidated financial statements words such as “we,” “us,” “our,” “US Ecology” and “the Company” refer to US Ecology, Inc. and its subsidiaries.

In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly, in all material respects, the results of the Company for the periods presented. These consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been omitted pursuant to the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the entire year ending December 31, 2019.

The Company’s consolidated balance sheet as of December 31, 2018 has been derived from the Company’s audited consolidated balance sheet as of that date.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our consolidated financial statements. As it relates to estimates and assumptions in amortization rates and environmental obligations, significant engineering, operations and accounting judgments are required. We review these estimates and assumptions no less than annually. In many circumstances, the ultimate outcome of these estimates and assumptions will not be known for decades into the future. Actual results could differ materially from these estimates and assumptions due to changes in applicable regulations, changes in future operational plans and inherent imprecision associated with estimating environmental impacts far into the future.

Recently Issued Accounting Pronouncements

In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, “Disclosure Update and Simplification,” adopting amendments to certain disclosure rules that were redundant, duplicative, overlapping, outdated, or superseded, in light of other SEC disclosure requirements, GAAP or changes in the information environment. In addition, the amendments expanded the disclosure requirements relating to the analysis of equity for interim financial statements. Under the amendments, an analysis of the changes in each caption of shareholders’ equity and noncontrolling interests presented in the balance sheet must be provided in a note or separate statement. The analysis must present a reconciliation of the beginning balance to the ending balance of each period for which a statement of earnings is required to be filed. The final rule was effective on November 5, 2018. The Company adopted the final rule effective for the first quarter of 2019. The adoption of the final rule did not have an impact on the Company’s consolidated financial position or results of operations.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815). This ASU amends the guidance in ASC 815 to better align an entity’s risk management activities and financial reporting for hedging relationships

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through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU 2017-12 on January 1, 2019 and the standard did not have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU significantly changes the accounting model used by lessees to account for leases, requiring that all material leases be presented on the balance sheet. Lessees will recognize substantially all leases on the balance sheet as a right-of-use asset and a corresponding lease liability. The Company adopted ASU 2016-02 on January 1, 2019 utilizing the modified retrospective transition method and elected not to recast comparative periods. We elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any existing leases as of the adoption date.  We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements. The Company did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of right-of-use assets.

Adoption of ASU 2016-02 resulted in the recognition of right-of-use assets and lease liabilities for operating leases of $18.1 million on its consolidated balance sheet as of March 31, 2019, with no material impact on its consolidated statement of stockholders’ equity or consolidated statements of operations. See Note 9 for additional information and disclosure on our leases.

NRCG Merger

On June 23, 2019, US Ecology, Inc. entered into an Agreement and Plan of Merger (the “Merger Agreement”) with NRC Group Holdings Corp., a Delaware corporation (“NRCG”), US Ecology Holdings, Inc. (f/k/a US Ecology, Inc.) (“Predecessor US Ecology”), Rooster Merger Sub, Inc., a Delaware corporation (“NRCG Merger Sub”), and ECOL Merger Sub, Inc., a Delaware corporation (“ECOL Merger Sub”).

On November 1, 2019, pursuant to and subject to the conditions set forth in the Merger Agreement, ECOL Merger Sub merged with and into US Ecology Holdings, Inc. (“Predecessor US Ecology”) (the “ECOL Merger”), with Predecessor US Ecology continuing as the surviving company and as a wholly-owned subsidiary of the Company. Substantially concurrently therewith, NRCG Merger Sub merged with and into NRCG (the “NRCG Merger,” and, together with the ECOL Merger, the “Mergers”), with NRCG continuing as the surviving company and as a wholly-owned subsidiary of the Company. Following the completion of the Mergers, the Company contributed all of the issued and outstanding equity interests of NRCG to Predecessor US Ecology so that, after such contribution, NRCG became a wholly-owned subsidiary of Predecessor US Ecology.

In the ECOL Merger, each share of common stock, par value $0.01 per share, of Predecessor US Ecology (“Predecessor US Ecology Common Stock”) issued and outstanding immediately prior to the Effective Time (other than cancelled shares) was converted into one share of common stock, par value $0.01 per share, of the Company (“Company Common Stock”). Each share of Predecessor US Ecology Common Stock that was held by Predecessor US Ecology as treasury stock or that was owned by Predecessor US Ecology, ECOL Merger Sub, or any other subsidiary of the Company, immediately prior to the effective time of the Mergers (the “Effective Time”) ceased to be outstanding and was cancelled and ceased to exist, and no consideration was delivered in exchange therefor. At the Effective Time, outstanding equity awards of Predecessor US Ecology were automatically assumed by the Company and converted into equity awards of the Company on a one-for-one basis as set forth in the Merger Agreement.

In the NRCG Merger, each share of common stock, par value $0.0001 per share, of NRCG (“NRCG Common Stock”) issued and outstanding immediately prior to the Effective Time (other than cancelled shares) was converted into: (1) 0.196 (the “NRCG Exchange Ratio”) of a share of Company Common Stock, (2) cash in lieu of fractional shares of Company Common Stock payable pursuant to the Merger Agreement and (3) any dividends or other distributions to which the holder thereof became entitled to upon the surrender of such shares of NRCG Common Stock in accordance with the Merger Agreement. Outstanding shares of NRCG equity awards were converted into equity awards of the Company pursuant to the mechanics set forth in the Merger Agreement. In the NRCG Merger, each share of NRCG Common Stock that was

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held by NRCG as treasury stock or that is owned by NRCG, NRCG Merger Sub or any other subsidiary of Predecessor US Ecology or NRCG immediately prior to the Effective Time ceased to be outstanding and was cancelled and ceased to exist, and no consideration was delivered in exchange therefor. At the Effective Time, outstanding equity awards of NRCG were automatically assumed by the Company and converted into equity awards of the Company pursuant to the terms of the Merger Agreement.

In addition, in the NRCG Merger, each share of 7.00% Series A Convertible Cumulative Preferred Stock, par value $0.0001 per share, of NRCG (the “NRCG Series A Preferred Stock”) was converted into, and became exchangeable for 1.7506 shares of Company Common Stock in accordance with the Merger Agreement.

At the closing of the NRCG Merger, in respect of each outstanding warrant to purchase NRCG Common Stock (each, a “NRCG Warrant”) issued pursuant to that certain Warrant Agreement, dated as of June 22, 2017 (the “NRCG Warrant Agreement”), between Continental Stock Transfer & Trust Company and NRCG, the Company issued a replacement warrant (each, a “Replacement Warrant”) to each holder of such NRCG Warrant that complies with and satisfies that applicable terms and conditions under the NRCG Warrant Agreement and is exercisable for a number of shares of Company Common Stock equal to the product (rounded to the nearest whole number) of (1) the number of shares of NRCG Common Stock that would have been issuable upon the exercise of the NRCG Warrant immediately prior to the effective time of the NRCG Merger and (2) the NRCG Exchange Ratio, at an exercise price equal to $58.67.

At the Effective Time, Predecessor US Ecology caused all shares of the Company issued and outstanding immediately prior to the Effective Time to be surrendered and cancelled and cease to exist, with no consideration delivered in exchange therefor.

Effective as of the close of market on October 31, 2019, each of the Predecessor US Ecology Common Stock, the NRCG Common Stock and the NRCG Warrants ceased to be traded on the Nasdaq Global Select Market and NYSE American, respectively. As a consequence of the Mergers, Form 25s were filed to (i) remove of the Predecessor US Ecology Common Stock from listing and registration on Nasdaq and from registration under the Exchange Act and (ii) remove the NRCG Common Stock and NRCG Warrants from listing and registration on NYSE American, and each of Predecessor US Ecology and NRCG intend to file a Form 15 with the SEC to terminate the registration under the Exchange Act of the Predecessor US Ecology Common Stock and the NRCG Common Stock and NRCG Warrants, respectively, and suspend all of their respective reporting obligations under Section 15(d) of the Exchange Act.

Effective as of November 1, 2019, the Company changed its name from “US Ecology Parent, Inc.” to “US Ecology, Inc.,” the Company Common Stock and the Replacement Warrants began trading on the Nasdaq Global Select Market under the symbol “ECOL” and “ECOLW,” respectively. Also effective as of November 1, 2019, Predecessor US Ecology changed its name from “US Ecology, Inc.” to “US Ecology Holdings, Inc.”

See Note 18 for additional information on the NRCG Merger.

NOTE 2.     REVENUES

Our operations are managed in two reportable segments, Environmental Services and Field & Industrial Services, reflecting our internal reporting structure and nature of services offered. See Note 17 for additional information on our operating segments.

Effective December 31, 2018, we changed our presentation of disaggregated revenues to align with changes in how we manage our service lines within our Field & Industrial Services segment. Revenues previously combined and reported as Technical Services are now disaggregated into two service lines, Small Quantity Generation (“SQG”) and Total Waste Management (“TWM”) and certain revenues formerly classified as Technical Services are now included in Remediation. Also, marine terminal services revenues, formerly classified as Other, are now included in Industrial Services. Effective January 1, 2019, Emergency Response revenues, formerly classified as Other, are now presented as a discrete service line. We also conformed the allocation of intercompany revenues between Treatment & Disposal Revenue and Services

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Revenue to be consistent across both segments. Throughout this Quarterly Report on Form 10-Q, our disaggregated revenues for all periods presented have been recast to reflect these changes.

The following table presents our revenue disaggregated by our reportable segments and service lines:

Three Months Ended September 30, 2019

Field &

Environmental

Industrial

$s in thousands

    

Services

    

Services

    

Total

Treatment & Disposal Revenue (1)

$

98,554

$

3,312

$

101,866

Services Revenue:

Transportation and Logistics (2)

23,658

12,070

35,728

Industrial Services (3)

4,850

4,850

Small Quantity Generation (4)

10,001

10,001

Total Waste Management (5)

8,674

8,674

Remediation (6)

1,388

1,388

Emergency Response (7)

3,294

3,294

Other (8)

1,601

1,601

Revenue

$

122,212

$

45,190

$

167,402

Three Months Ended September 30, 2018

Field &

Environmental

Industrial

$s in thousands

    

Services

    

Services

    

Total

Treatment & Disposal Revenue (1)

$

82,768

$

3,221

$

85,989

Services Revenue:

Transportation and Logistics (2)

24,429

9,345

33,774

Industrial Services (3)

6,052

6,052

Small Quantity Generation (4)

8,611

8,611

Total Waste Management (5)

10,054

10,054

Remediation (6)

2,296

2,296

Emergency Response (7)

2,794

2,794

Other (8)

1,846

1,846

Revenue

$

107,197

$

44,219

$

151,416

Nine Months Ended September 30, 2019

Field &

Environmental

Industrial

$s in thousands

    

Services

    

Services

    

Total

Treatment & Disposal Revenue (1)

$

266,646

$

9,241

$

275,887

Services Revenue:

Transportation and Logistics (2)

60,743

31,922

92,665

Industrial Services (3)

15,830

15,830

Small Quantity Generation (4)

27,516

27,516

Total Waste Management (5)

25,393

25,393

Remediation (6)

4,003

4,003

Emergency Response (7)

9,520

9,520

Other (8)

3,427

3,427

Revenue

$

327,389

$

126,852

$

454,241

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Nine Months Ended September 30, 2018

Field &

Environmental

Industrial

$s in thousands

    

Services

    

Services

    

Total

Treatment & Disposal Revenue (1)

$

233,570

$

8,770

$

242,340

Services Revenue:

Transportation and Logistics (2)

59,058

22,593

81,651

Industrial Services (3)

14,437

14,437

Small Quantity Generation (4)

26,075

26,075

Total Waste Management (5)

29,295

29,295

Remediation (6)

8,454

8,454

Emergency Response (7)

4,185

4,185

Other (8)

1,950

1,950

Revenue

$

292,628

$

115,759

$

408,387

(1)We categorize our treatment and disposal revenue as either “Base Business” or “Event Business” based on the underlying nature of the revenue source. We define Event Business as non-recurring projects that are expected to equal or exceed 1,000 tons, with Base Business defined as all other business not meeting the definition of Event Business. For the three months ended September 30, 2019 and 2018, 25% and 22%, respectively, of our treatment and disposal revenue was derived from Event Business projects. Base Business revenue accounted for 75% and 78% of our treatment and disposal revenue for the three months ended September 30, 2019 and 2018, respectively. For the nine months ended September 30, 2019 and 2018, 22% and 20%, respectively, of our treatment and disposal revenue was derived from Event Business projects. Base Business revenue accounted for 78% and 80% of our treatment and disposal revenue for the nine months ended September 30, 2019 and 2018, respectively.
(2)Includes collection and transportation of non-hazardous and hazardous waste.
(3)Includes industrial cleaning and maintenance for refineries, chemical plants, steel and automotive plants, marine terminals and refinery services such as tank cleaning and temporary storage.
(4)Includes retail services, laboratory packing, less-than-truck-load service and household hazardous waste collection. Contracts for Small Quantity Generation may extend beyond one year and a portion of the transaction price can be fixed.
(5)Through our TWM program, customers outsource the management of their waste compliance program to us, allowing us to organize and coordinate their waste management disposal activities and environmental compliance. TWM contracts may extend beyond one year and a portion of the transaction price can be fixed.
(6)Includes site assessment, onsite treatment, project management and remedial action planning and execution. Contracts for Remediation may extend beyond one year and a portion of the transaction price can be fixed.
(7)Includes spill response, waste analysis and treatment and disposal planning.
(8)Includes equipment rental and other miscellaneous services.

We provide services in the United States and Canada. The following table presents our revenue disaggregated by our reportable segments and geographic location where the underlying services were performed:

    

Three Months Ended September 30, 2019

Three Months Ended September 30, 2018

Field &

Field &

Environmental

Industrial

Environmental

Industrial

$s in thousands

    

Services

    

Services

Total

Services

    

Services

Total

United States

$

99,554

$

44,332

$

143,886

$

85,183

$

44,219

$