Investor Presentation May 2015 1 Safe Harbor During the c o urse - - PowerPoint PPT Presentation

1

May 2015

Investor Presentation

2

Safe Harbor

During the c o urse o f this pre se ntatio n the Co mpany will be making fo rward-lo o king state me nts (as suc h te rm is de fine d in the Private S e c uritie s L itig atio n Re fo rm Ac t o f 1995) that are base d o n o ur c urre nt e xpe c tatio ns, be lie fs and assumptio ns abo ut the industry and marke ts in whic h USE c o lo gy, I nc . and its subsidiarie s o pe rate . S uc h state me nts may inc lude , but are no t limite d to , state me nts abo ut the Co mpany's ability to inte g rate its ac quisitio n o f E Q—T he E nviro nme ntal Quality Co mpany (E Q), e xpe c te d syne rg ie s fro m the transac tio n, pro je c tio ns o f the financ ial re sults o f the c o mbine d c o mpany and o the r state me nts that are no t histo ric al fac ts. S uc h state me nts invo lve kno wn and unkno wn risks, unc e rtaintie s and o the r fac to rs that c o uld c ause the ac tual re sults o f the Co mpany to diffe r mate rially fro m the re sults e xpre sse d o r implie d by suc h state me nts, inc luding g e ne ral e c o no mic and busine ss c o nditio ns, c o nditio ns affe c ting the industrie s se rve d by USE c o lo gy, E Q and the ir re spe c tive subsidiarie s, c o nditio ns affe c ting o ur c usto me rs and supplie rs, c o mpe tito r re spo nse s to o ur pro duc ts and se rvic e s, the o ve rall marke t ac c e ptanc e o f suc h pro duc ts and se rvic e s, the inte g ratio n and pe rfo rmanc e o f ac quisitio ns (inc luding the ac quisitio n o f E Q) and o the r fac to rs disc lo se d in the Co mpany's pe rio dic re po rts file d with the S e c uritie s and E xc hang e Co mmissio n. F

• r info rmatio n o n o the r fac to rs that c o uld c ause ac tual re sults to diffe r

mate rially fro m e xpe c tatio ns, ple ase re fe r to US E c o lo g y, I nc .'s De c e mbe r 31, 2014 Annual Re po rt o n F

• rm 10-K and o the r re po rts

file d with the S e c uritie s and E xc hang e Co mmissio n. Many o f the fac to rs that will de te rmine the Co mpany's future re sults are be yo nd the ability o f manag e me nt to c o ntro l o r pre dic t. Re ade rs sho uld no t plac e undue re lianc e o n fo rward-lo o king state me nts, whic h re fle c t manag e me nt's vie ws o nly as o f the date suc h state me nts are made . T he Co mpany unde rtake s no o blig atio n to re vise o r update any fo rward-lo o king state me nts, o r to make any o the r fo rward-lo o king state me nts, whe the r as a re sult o f ne w info rmatio n, future e ve nts o ro the rwise . I mpo rtant assumptio ns and o the r impo rtant fac to rs that c o uld c ause ac tual re sults to diffe r mate rially fro m tho se se t fo rth in the fo rward-lo o king info rmatio n inc lude a lo ss o f a majo r c usto me r o r c o ntrac t, c o mplianc e with and c hang e s to applic able laws, rule s,

• r re g ulatio ns, ac c e ss to c o st e ffe c tive transpo rtatio n se rvic e s, ac c e ss to insuranc e , sure ty bo nds and o the r financ ial assuranc e s, lo ss
• f ke y pe rso nne l, lawsuits, labo r dispute s, adve rse e c o no mic c o nditio ns, g o ve rnme nt funding o r c o mpe titive pre ssure s, inc ide nts o r

adve rse we athe r c o nditio ns that c o uld limit o r suspe nd spe c ific o pe ratio ns, imple me ntatio n o f ne w te c hno lo g ie s, marke t c o nditio ns, ave rag e se lling pric e s fo r re c yc le d mate rials, o ur ability to re plac e busine ss fro m re c e ntly c o mple te d larg e pro je c ts, o ur ability to pe rfo rm unde r re quire d c o ntrac ts, o ur ability to pe rmit and c o ntrac t fo r time ly c o nstruc tio n o f ne w o r e xpande d dispo sal c e lls, o ur willing ne ss o r ab ility to pay divide nds and o ur ab ility to e ffe c tive ly c lo se , inte g rate and re alize antic ipate d syne rg ie s fro m future ac quisitio ns, whic h c an be impac te d by the failure o f the ac quire d c o mpany to ac hie ve antic ipate d re ve nue s, e arning s o r c ash flo ws, assumptio n o f liabilitie s that e xc e e d o ur e stimate s, po te ntial c o mplianc e issue s, dive rsio n o f manag e me nt's atte ntio n o r o the r re so urc e s fro m o ur e xisting busine ss, risks asso c iate d with e nte ring pro duc t / se rvic e are as in whic h we have limite d e xpe rie nc e , inc re ase s in wo rking c apital inve stme nt, une xpe c te d c apital e xpe nditure s, po te ntial lo sse s o f ke y e mplo ye e s and c usto me rs o f the ac quire d c o mpany and future write -o ffs o f intang ible and o the r asse ts, inc luding g o o dwill, if the ac q uire d o pe ratio ns fail to g e ne rate suffic ie nt c ash flo ws.

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(4)

Mexico Québec

(3) (2)

Landfills Treatment & Recycling Services Headquarters

US Ecology Overview

Vision: To be the premier North American provider of environmental services where the highest caliber people work delivering sustainable solutions for our customers and long term value for stockholders and the communities in which we live and operate

Fully integrated North American Environmental Services provider Unique and Irreplaceable Assets with Robust Waste Permits Diverse, Blue Chip Customer Base Across a Broad Range of Industries with over 7,000 Customers 60 + year Commitment to Health, Safety and the Environment Strong Financial Performance

4

$24 Billion Industry

Strong Growth Drivers Considerable Barriers to Entry

• Government regulation
• Track Record of execution
• Capex requirements
• Talented professionals
• Regulation
• Industrial
• Commercial
• Government

Hazardous Waste

Field & Industrial Services $10 billion market Provides treatment, disposal & recycling services Radioactive waste constitutes $1 billion $14 billion market Consists of cleanup of operating facilities Government agencies a major customer

Retail LTL Industrial Cleaning & Maintenance In-Plant Total Waste Management Terminal Services Petroleum Services Airport Environmental Services Remediation & Construction Sewer Inspection & Maintenance Emergency Response Household Hazardous Waste Collection Lab-Pack

TSDFs / Brokers Other Environmental Services Companies Truck & Rail Services

Treatment, Storage & Disposal Facilities (“TSDFs”)

Wastewater Treatment Facilities Mobile Recycling Operation Hazardous Landfill Solvent Recycling Oil Recycling Incineration Fuel Blending Non-Haz Landfill Cement Kiln Waste - to - Energy

Sourcing from Intermediaries Direct Sourcing

Waste Generation Services Transfer, Storage & Treatment Disposal

Infrastructure Support

5

Hazardous Waste is Generated by Diverse End Markets

Ae r

• spac e / De fe nse

Paint Sludge / R adium

Industr y E xample Waste Str e ams

Industr ial Manufac tur ing Ste e l & Aluminum Pr e c ious Me tals Oil E xplor ation & Pr

• duc tion

Utilitie s Ac ids & Caustic s, He avy Me tals E mission Contr

• l, Dust, Spe nt Pot L

ine r s Me r c ur y, Cr uc ible Waste , Unuse d Che mic als Spe nt Catalysts, R e fine r y T ank Bottoms, Dr ill Cuttings Unuse d House hold Che mic als, Sludge fr

• m

Batte r y Pr

• duc tion, He avy Me tals fr
• m Pigme nts

Consume r Pr

• duc ts

PCBs, De c ommissione d T r ansfor me r Waste E tc hing Solutions for Se mic onduc tor s T e c hnology PCBs, R adioac tive Gove r nme nt

6

US Ecology Focuses on the Most Complex Waste Streams

Waste Str e am Pr ic ing Continuum

Pr ic e pe r T

• n

MSW L L R W R e fine r y Sludge s / Catalysts Hazar dous Containe r ize d F ission Pr

• duc ts /

SNM Hazar dous De br is NOR M PCB / Hazar dous Solids

High Low

Volume

Low High

Non Haz / State R e gulate d T E NOR M He avy Me tals High L e ve l R adium 6

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Our Transformation…

L imite d Ge ogr aphic F

• otpr

int

Ac quir e Valuable Asse ts

Nar r

• w Se r

vic e Offe r ing (Haz/ R ad Waste Disposal) E ve nt-Ce ntr ic , Custome r

• Conc e ntr

ate d Mode l L imite d Gr

• wth

Pr

• spe c ts Give n Idaho

F

• c us

National T SDF F

• otpr

int E xpande d Se r vic e Capabilitie s F le xible & Dive r sifie d Busine ss Mode l Ability to Suppor t Custome r Ne e ds has Dr ive n Gr

• wth

Pe r mit / Se r vic e E xpansion Inve st in Infr astr uc tur e E xe c ute

• Dyne c ol

Cr e ating the Pr e mie r Nor th Ame r ic an Pr

• vide r
• f

E nvir

• nme ntal Se r

vic e s

Our Str ate gy “T he n” – 2008 T

• day – 2015

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…Into a North American Leader

■ 5 Haz/Non-Haz Landfills ■ 1 Radioactive Waste Landfill (Class A, B, C) ■ 21 Treatment & Recycling Facilities 1 ■ Rail-accessible Facilities & Infrastructure ■ 26 Field & Industrial Services Centers

1 Five treatment facilities and one recycling facility co-located with disposal sites

(4)

Mexico Québec

(3) (2)

Landfills Treatment & Recycling Services Headquarters

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A Full Service Platform

Technical Services Emergency Response Remedial Construction Packaging & Collection Brokering

Transportation

Beneficial Re-use Thermal Recycling Incineration Treatment & Disposal Field / On- Site Services

• Custome r
• Ce ntr

ic Appr

• ac h
• National T

SDF F

• otpr

int

• Br
• ad Se t of E

nvir

• nme ntal Se r

vic e Solutions

• E

mphasis on Solving Custome r Ne e ds

F ie ld & Industr ial Se r vic e s E nvir

• nme ntal

Se r vic e s

≈ 40% ≈ 60%

F ie ld & Industr ial Se r vic e s E nvir

• nme ntal

Se r vic e s

US E c ology Busine ss Mix Services not offered by USE

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Coast to Coast Disposal Network

■ 6 Facilities Positioned throughout North America

5 Haz / Non-Haz Landfills (All Co-Located with Treatment) 1 Radioactive Waste Landfill (Class A, B, C)

■ Located near Industrial Centers in the West, Northeast, Midwest and Gulf Regions ■ Broad Range of Permits and Acceptance Criteria ■ Infrastructure to Support High Volume Transfer ■ Rail and Truck Access

Idaho (Gr and Vie w) Washington (R ic hland)

Radio ac tive L andfill

Mic higan (Be lle ville ) Ne vada (Be atty) T e xas (R

• bstown)

Stable x (Que be c - Blainville )

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Large Treatment Network

■ 14 facilities throughout the Northeast, Midwest, West, South and Gulf regions ■ Five co-located with disposal facilities ■ Ability to manage a wide range of liquid and solid waste streams ■ Broad range of de-characterization and de- listing capabilities ■ State-of-the-Art Air Handling

14 T r e atme nt F ac ilitie s

L

• c ate d at L

andfills

• Idaho
• Michigan
• Nevada
• Quebec
• Texas

Standalone

• Michigan (2)
• Ohio
• Penn.
• Illinois
• Alabama
• Oklahoma
• Georgia
• Florida

Mic higan (De tr

• it)

T re atme nt / S tabilizatio n and WWT

Pe nn., Ohio and Illinois

L iquid and S

• lid Waste T

re atme nt

Ne vada (Be atty)

T re atme nt / S tabilizatio n

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Recycling

■ Seven recovery / recycling operations operating in the Gulf, Midwest, Northeast and Southern Regions ■ Market Oriented Solutions: Thermal Desorption – Oil / Catalyst Recovery Solvent Distillation – Airline De-icing, Other Solvents Mobile Distillation – On-site Solvent Recovery for Manufacturing facilities in the South and Midwest Selective Precipitation – Valuable Metals Recovery

R e sour c e R e c ove ry

Glyc o l & NMP S

• lve nt Re c yc ling

(Mic hig an) T wo Airpo rt Re c o ve ry S ite s (MN & PA)

T e xas (R

• bstown)

T he rmal Re c yc ling

Nor th Car

• lina (Mt. Air

y)

Mo bile S

• lve nt Re c o ve ry –

S

• uth & Midwe st

Pe nnsylvania (Yor k) Ohio (Canton)

S e le c tive Pre c ipitatio n Me tals Re c o ve ry

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Field Services

R e me diation Manag e me nt o f re me dial c o nstruc tio n pro je c ts fro m start to finish R e tail E nd-to -e nd manag e me nt o f re tail hazardo us waste pro g rams T r anspor tation & L

• gistic s

T ranspo rt o f waste fro m po int o f g e ne ratio n to ultimate dispo sal L ab Pac k S mall quantity c he mic al manag e me nt se rvic e s T

• tal Waste Manage me nt

Outso urc e d manag e me nt, trac king and re po rting all waste stre ams fo r g e ne rato rs L T L / HHW Ho use ho ld hazardo us waste c o lle c tio n and L e ss-than-truc klo ad c o ntaine r manag e me nt

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Industrial Services

Industr ial Cle aning Mainte nanc e and c le aning se rvic e s fo r industrial fac ilitie s R e fine r y Se r vic e s T ank farm c le aning , mainte nanc e , c e ntrifug atio n and te mpo rary sto rag e Se we r Se r vic e s S e we r Main L ining (Cure d-in-Plac e ), Cle aning and Unde rg ro und I nspe c tio n E me r ge nc y R e sponse 24/ 7 spill re spo nse . E me rg e nc y c le an-

• uts, sampling and analysis

Hydr

• -e xc avation / Wate r

Blasting Ultra hig h pre ssure , abrasive hydro -c utting and wate r/ vac uum base d e xc avatio n Mar ine & T e r minal Se r vic e s 24/ 7 spill re spo nse . Co ntainme nt bo o ming , saltwate r intake c le aning and de -silting

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Organic & Inorganic Growth Opportunities

Build on R

• bust Waste

Handling Infr astr uc tur e L e ve r age R e gulator y E xpe r tise Pr

• vide Une qualle d

Custome r Se r vic e Ge ne r ate Sustainable Inc r e ase s in E PS and Cash F low F

• c us on High Value

Waste Str e ams

Target high margin, niche waste streams Develop new markets and services Drive volumes to profit from inherent

• perating leverage

Build base business Increase win rate on clean-up project pipeline Expand current permit capabilities Seek new permits for service expansion Capitalize on evolving regulatory environment Take advantage of cross-border, import- export expertise Introduce new treatment technologies Maximize throughput at all facilities Develop low cost airspace Utilize transportation assets Expand thermal recycling Customer-centric focus Listening to customers is critical to success Research solutions for customer challenges

F

• c use d Ac quisition

Str ate gy

Expand TSDF footprint Invest in services that drive growth and margin to Environmental Services Business Preserve flexibility

F

• c us on High Value

Waste Str e ams

16

Financial Overview

17

Total revenue $447.4 million compared with $201.1 million

• EQ assets contributed $228.2 million from mid-year close

ES revenue $311.8 million, up from $201.1 million in 2013 FIS revenue $135.6 million (no revenue in prior year) Legacy US Ecology revenue of $219.2 million, up from $201.1 million in 2013

• 16% lower Event business; 5% improvement on Base

Business

• Event business strength driven from private cleanup, other

industry and broker, offsetting declines in government and refinery Top customer represented 10% of revenue; top 10 customers represented 29% of revenue Legacy US Ecology % Change 2014 vs. 2013(1)

Private Cleanup 31% Other Industry 17% Broker 8% Rate Regulated 1% Government Cleanup

• 11%

Refinery

• 13%

2014 Full Year Financial Review

70% 30%

R e ve nue

ES FIS

(1) Amounts exclude EQ and transportation services

5% 3% 8% 48% 19% 17% Legacy US Ecology % of 2014 T&D Revenue

Government Cleanup Rate Regulated Refinery Broker Other Industry Private Cleanup

18

Gross profit was $145.8 million, up from $79.0 million

• EQ contributed $57.4 million from close on June 17th
• ES gross profit was $117.5 million, up from $79.0 million last year
• Legacy US Ecology was $88.4 million, up 12% in 2014
• Legacy US Ecology T&D margin was 49% in 2014, up from 48% in 2013

SG&A was $73.3 million compared with $26.1 million

• EQ contributed $38.9 million
• Business development costs of $6.4 million

Operating income was $72.5 million, up from $52.9 million in 2013

• EQ contributed $18.5 million of operating income
• Includes intangible amortization of approximately $6.8 million

Adjusted EBITDA1 was $109.0 million, up from $71.2 million in 2013

• EQ contributed $35.6 million of Adjusted EBITDA1
• Includes $6.4 million of business development costs

2014 net income was $38.2 million, up from $32.2 million in 2013 Adjusted EPS1 was $2.02 per share, up from $1.82 per share in 2013

• EQ contributed approximately $0.20 per share
• Share count 16% higher due to December 2013 equity offering

2014 Full Year Financial Review

1See reconciliation of Adjusted EBITDA and Adjusted earnings per share on pages 28 - 34

• f this presentation

19 19

2014 Pro Forma Results

• EQ first half results (prior to ownership) impacted by normal seasonality and

severe weather conditions

• Deferment of work pushed into second half results
• EQ saw a significant improvement in results post US Ecology ownership
• Pro forma EQ1 results would have been break even to EPS in 2014; actual

results show $0.20 accretion

• Pro forma1 combined company 2014 EPS would have been $1.72 vs. $2.02

adjusted EPS as reported

• Pro forma1 net income was $37.3 million

1See reconciliation of pro forma revenue, eps and Adjusted EBITDA on pages 36 - 37 of

this presentation

20

2014 Pro Forma Results

P: Pro Forma; A: Actual; H1: First Half; H2: Second Half

1See reconciliation of pro forma revenue, eps and Adjusted EBITDA on pages 36 - 37 of

this presentation

$‐ $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 H1 '14 H2 '14 2014 P

Pro Forma Revenue

USE EQ Total

$615,264 $328,069 $287,195 $447,411

$(5,000) $5,000 $15,000 $25,000 $35,000 $45,000 H1 '14 H2 '14 2014 P

Pro Forma Net Income

USE EQ Actual 2014

$14,613 $22,735 $37,348 $38,236

$‐ $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 H1 '14 H2 '14 2014 P 2014 A

Pro Forma Adjusted EBITDA

USE EQ Actual 2014

$53,539 $72,822 $126,361 $108,976

$(0.50) $‐ $0.50 $1.00 $1.50 $2.00 $2.50 H1 '14 H2 '14 2014 P

Pro Forma EPS

USE EQ Actual 2014

$0.68 $1.04 $1.72 $2.02

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Total revenue $136.7 million compared with $53.4 million last

year ― EQ assets contributed $84.7 million

• ES revenue $91.4 million, up from $53.4 million in prior year
• FIS revenue $45.2 million (no revenue in prior year

period)

• Legacy US Ecology revenue of $52.0 million, down $1.3

million from prior year

― 17% lower Event business; 7% improvement on Base Business Q1 ’14 was unseasonably strong ― Decline related to private cleanup and “other industry” customer groupings ― Top customer represented 8% of revenue; top 10 customers represented 30% of revenue

g y Ecolog y % Cha ng e Q1 '15 vs. Q1 '14

(1)

G o ve rnme nt Cle a nup 100% Re fine ry 47% Broke r

• 4%

Ra te Re g ula te d

• 7%

O the r Industry

• 21%

Priva te Cle a nup

• 26%

Q1 ‘15 Financial Review

67% 33%

R e ve nue

ES FIS

(1) Amounts exclude EQ and transportation services

22

Gross profit was $39.8 million, up from $22.1 million

• EQ contributed $18.8 million
• ES gross profit was $34.0 million, up from $22.1 million same period last year

― Legacy US Ecology was $21.0 million, down 5% in Q1’14 on lower revenue ― Legacy US Ecology T&D margin was 50% in both periods SG&A was $24.9 million compared with $6.6 million

• EQ contributed $15.3 million
• Total SG&A includes $1.7 million of business development expense

Operating income was $15.0 million, down from $15.5 million

• EQ contributed $3.5 million of operating income during the quarter

― Includes intangible amortization of approximately $3.0 million Net income was $5.9 million, down from $9.4 million Adjusted EPS1 was $0.35 per share, down from $0.48 per share Adjusted EBITDA1 was $27.2 million, up from $20.3 million

• EQ contributed $11.2 million of Adjusted EBITDA1

22

Q1 ‘15 Financial Review

1See definition and reconciliation of Adjusted EBITDA and Adjusted earnings per share on pages 28 – 34 of this presentation or attached as Exhibit A to our earnings release filed with the SEC

• n Form 8‐K

2See reconciliation of pro forma revenue, eps and Adjusted EBITDA on pages 36 ‐ 37 of this presentation

23 23

Q1 ‘15 Financial Position, Cash Flow & Return Metrics

■ Exited quarter with cash of $10.2 million ■ Net borrowings on credit agreement of $362.5 million ■ Working Capital = $66.3 million compared to $78.9 million at December 31, 2014 ■ Cash generated from operations = $22.6 million ■ Capital expenditures = $9.2 million ■ Dividends paid = $3.9 million ■ Payments on long-term debt = $22.0 million ■ Pro forma return on total capital1 = 6.5% ■ Pro forma return on total assets1 = 4.1% ■ Pro forma return on total equity1 = 15.0%

1 Pro forma return calculated as of March 31, 2015 assuming four full quarters of EQ

• perations.

24

Reaffirming Full Year 2015 Estimates

• Revenue estimate of $585 million to $620 million
• Adjusted EBITDA1 estimated to range from $137 million to $143

million

• Diluted Earnings Per Share1 estimated between $1.76 to $1.92
• Represents growth of up to 13% pro forma2 2014 earnings and

EBITDA

Event Pipeline Remains Strong

• Solid bidding activity
• Pipeline building as we gain visibility to summertime work

Capital Expenditures Estimated Between $40 million to $45 million

• Includes carryover capital from 2014
• Spent $9.2 million on capital investment in Q1 ‘15

24

2015 Business Outlook

1Guidance excludes non-cash foreign currency translation gains or losses and

business development expenses

2See reconciliation of pro forma eps and Adjusted EBITDA on pages 36 - 37 of this

presentation

25

US Ecology Investment Highlights

Unique and high value set of disposal assets Highly leveragable business model with earnings upside Experienced management team with strong execution track record Strong cash flow generation Attractive dividend yield at 1.5% Strong balance sheet EQ acquisition provides levers for future growth

26

Appendix

27

E nvir

• nme ntal Se r

vic e s Se gme nt (“E S”)

Provides hazardous and non-hazardous materials management services at Company-owned treatment and disposal facilities Services include waste disposal, treatment, recycling and transportation

• Key assets include:

― 5 hazardous waste landfills ― 1 commercially licensed radioactive waste landfill ― 21 Treatment and Recycling Facilities Included in this segment:

• Legacy US Ecology business
• Legacy EQ’s treatment, disposal and recycling facilities

2014 Statistics for ES Segment (includes legacy EQ ES results from acquisition date)

• Revenue: $311.8 million
• Adjusted EBITDA1: $115.2 million
• Adjusted EBITDA Margin: 37%

27

F ie ld and Industr ial Se r vic e s (“F IS”)

Fie ld Se rvic e s: Provides packaging, collection and waste management solutions at customer sites and our 10-day storage facilities

Sample services include:

― LTL Collection ― Lab pack ― Transportation ― Onsite total waste management ― Retail services ― Remediation Industrial Se rvic e s: Provides specialty cleaning, maintenance and excavation services at customers’ industrial sites

Sample Services include:

― Industrial Cleaning ― Refinery services / tank cleaning ― Hydro-excavation ― Decontamination services ― Sewer Rehabilitation ― Emergency response services Performed through 26 service centers 2014 Statistics for FIS Segment (acquired in June 2014)

Revenue: $135.6 million Adjusted EBITDA1: $16.6 million Adjusted EBITDA Margin: 12%

Cor por ate

Cost center providing sales and administrative support across segments 2014 Adjusted EBITDA1: ($22.8) million

Segment Overview

1See definition and reconciliation of Adjusted EBITDA and Adjusted earnings per share on pages 26‐32 of this presentation

28

US Ecology reports adjusted EBITDA, adjusted earnings per diluted share, pro forma Adjusted EBITDA, pro forma earnings per diluted per share and pro forma revenue results, which are non- GAAP financial measures, as a complement to results provided in accordance with generally accepted accounting principles in the United States (GAAP) and believes that such information provides analysts, stockholders, and other users information to better understand the Company’s operating performance. Because adjusted EBITDA, adjusted earnings per diluted share, pro forma Adjusted EBITDA, pro forma earnings per diluted per share and pro forma revenue are not measurements determined in accordance with GAAP and are thus susceptible to varying calculations they may not be comparable to similar measures used by

• ther companies. Items excluded from adjusted EBITDA, adjusted earnings per diluted share,

pro forma Adjusted EBITDA, pro forma earnings per diluted per share and pro forma revenue are significant components in understanding and assessing financial performance. Adjusted EBITDA, adjusted earnings per diluted share, pro forma Adjusted EBITDA, pro forma earnings per diluted per share and pro forma revenue should not be considered in isolation or as an alternative to, or substitute for, revenue, net income, cash flows generated by

• perations, investing or financing activities, or other financial statement data presented in the

consolidated financial statements as indicators of financial performance or liquidity. Adjusted EBITDA, adjusted earnings per diluted share, pro forma Adjusted EBITDA, pro forma earnings per diluted per share and pro forma revenue have limitations as analytical tools and should not be considered in isolation or a substitute for analyzing our results as reported under GAAP.

28

Adjusted and Pro Forma EBITDA, EPS & Revenue

29

Adjuste d E BIT DA

The Company defines adjusted EBITDA as net income before interest expense, interest income, income tax expense, depreciation, amortization, stock based compensation, accretion of closure and post-closure liabilities, foreign currency gain/loss and other income/expense, which are not considered part of usual business operations.

Adjuste d E ar nings Pe r Dilute d Shar e

The Company defines adjusted earnings per diluted share as net income plus the after tax impact of non-cash, non-operational foreign currency gains or losses (“Foreign Currency Gain/Loss”) plus the after tax impact of business development costs divided by the number of diluted shares used in the earnings per share calculation. The Foreign Currency Gain/Loss excluded from the earnings per diluted share calculation are related to intercompany loans between our Canadian subsidiary and the U.S. parent which have been established as part of

• ur tax and treasury management strategy. These intercompany loans are payable in

Canadian dollars (“CAD”) requiring us to revalue the outstanding loan balance through our consolidated income statement based on the CAD/United States currency movements from period to period. We believe excluding the currency movements for these intercompany financial instruments provides meaningful information to investors regarding the operational and financial performance of the Company.

Definitions of Adjusted EBITDA and EPS

30 30

Financial Results: Q1‘15 vs. Q1‘14

amount s in t housands e xc e pt pe r share dat a

2015 2014 $ Cha ng e % Cha ng e

Revenue $ 136,651 $ 53,354 $ 83,297 156.1% Gross profit 39,844 22,120 17,724 80.1% SG&A1 24,893 6,636 18,257 275.1%

Oper a ting inc om e

1

14,951 15,484

(533)

• 3.4%

Interest expense, net (5,653) (42) (5,611) 13359.5% Foreign currency gain (loss) (1,067) (940) (127) 13.5% Other 536 86 450 523.3% Pretax income 8,767 14,588 (5,821)

• 39.9%

Income tax expense 2,902 5,227 (2,325)

• 44.5%

Net inc om e $ 5,865 $ 9,361

$ (3,496)

• 37.3%

Diluted E PS $ 0.27 $ 0.43

$ (0.16)

• 37.2%

Diluted shares outstanding 21,689 21,586

Adjusted E BI T DA R ec onc ilia tion

Net Income 5,865 $ 9,361 $ Income tax expense 2,902 5,227 Interest expense, net 5,653 42 Foreign currency (gain)/ loss 1,067 940 Other income (536) (86) Depreciation and amortization 7,479 3,839 Amortization of intangibles 3,302 352 Stock-based compensation 463 270 Accretion and non-cash adjustments of closure & post-closure obligations 1,035 330

Adjusted E BI T DA

1

27,230 $ 20,275 $

6,955 $ 34.3%

T hr ee Months E nded Ma r c h 31,

1Includes pre‐tax Business Development expenses of $1.7 million and $0.2 million

for the three months ended March 31, 2015 and 2014, respectively

31 31

Financial Results: Q1‘15 vs. Q1‘14

(in t housands, e xc e pt pe r share dat a)

Adjusted E a r ning s Per Sha r e R ec onc ilia tion per sha r e per sha r e

Net income / earnings per diluted share

5,865 $ 0.27 $ 9,361 $ 0.43 $

Business development costs, net of tax 1,067 0.05 120 0.01 Non-cash foreign currency (gain) loss, net of tax 647 0.03 703 0.04

Adjusted net inc om e / a djusted ea r ning s per diluted sha r e 7,579 $ $ 0.35 10,184 $ $ 0.48

Shares used in earnings per diluted share calculation 21,689 21,586

T hr ee Months E nded Ma r c h 31, 2015 2014

32 32

Financial Results: Q1 ‘15 Adjusted EBITDA

(in tho usands)

L e g a c y US E c o lo g y L e g a c y E Q Co nso lida te d US E c o lo g y

Net Income 3,795 $ 2,070 $ 5,865 $ Income tax expense 1,464 1,438 2,902 Interest expense, net 5,485 168 5,653 Foreign currency (gain)/ loss 1,067

• 1,067

Other income (381) (155) (536) Depreciation and amortization 3,462 4,017 7,479 Amortization of intangibles 316 2,986 3,302 Stock-based compensation 375 88 463 Accretion and non-cash adjustments of closure & post-closure obligations 439 596 1,035

Adjuste d E BITDA

1

16,022 $ 11,208 $ 27,230 $ T hre e Mo nths E nde d Ma rc h 31, 2015

1Includes pre‐tax Business Development expenses of $1.7 million for the three months ended March 31, 2015

33

Financial Results: 2014 vs. 2013

amount s in t housands e xc e pt pe r share dat a

2014 2013 $ Cha ng e % Cha ng e

Revenue $ 447,411 $ 201,126 $ 246,285 122.5% Gross profit 145,786 78,986 66,800 84.6% SG&A 73,336 26,055 47,281 181.5%

Oper a ting inc om e 72,450 52,931

19,519 36.9% Interest expense, net (10,570) (809) (9,761) 1206.6% Foreign currency gain (loss) (1,499) (2,327) 828

• 35.6%

Other 669 352 317 90.1% Pretax income 61,050 50,147 10,903 21.7% Income tax expense 22,814 17,996 4,818 26.8%

Net inc om e $ 38,236 $ 32,151

$ 6,085 18.9%

Diluted E PS $ 1.77 $ 1.72

$ 0.05 2.9% Diluted shares outstanding 21,655 18,676

Adjusted E BI T DA R ec onc ilia tion

Net Income 38,236 $ 32,151 $ Income tax expense 22,814 17,996 Interest expense, net 10,570 809 Foreign currency (gain) loss 1,499 2,327 Other income (669) (352) Depreciation and amortization 24,413 14,815 Amortization of intangibles 8,207 1,461 Stock-based compensation 1,250 865 Accretion and non-cash adjustments of closure & post-closure obligations 2,656 1,114

Adjusted E BI T DA 108,976 $ 71,186 $

37,790 $ 53.1%

F

• r

the Yea r E nded Dec em ber 31,

34

Financial Results: 2014 vs. 2013

(in t housands, e xc e pt pe r share dat a)

Adjusted E a r ning s Per Sha r e R ec onc ilia tion per sha r e per sha r e

Net income / earnings per diluted share

38,236 $ 1.77 $ 32,151 $ 1.72 $

Business development costs, net of tax 4,851 0.22 254 0.01 Non-cash foreign currency (gain) loss, net

• f tax

700 0.03 1,597 0.09

Adjusted net inc om e / a djusted ea r ning s per diluted sha r e 43,787 $ $ 2.02 34,002 $ $ 1.82

Shares used in earnings per diluted share calculation 21,655 18,676

For the Yea r E nded Dec em ber 31, 2014 2013

35

Pro Forma Results: Revenue(1)

1Pro forma revenue reflects revenue as if the EQ transaction had occurred on January 1, 2014

Fo r the Six Mo nths For the Six Mo nths Fo r the Ye a r

(in tho usands)

3/ 31/ 2014 6/ 30/ 2014 E nde d 6/ 30/ 2014 9/ 30/ 2014 12/ 31/ 2014 E nde d 12/ 31/ 2014 E nde d 12/ 31/ 2014

Legacy US Ecology revenue 53,354 $ 51,495 $ $ 104,849 59,755 $ 56,269 $ $ 116,024 $ 220,873 Less: intercompany revenue with legacy EQ (186) (97) (282) (187) (1,481) (1,668) (1,950) Legacy US Ecology pro forma revenue 53,168 $ 51,398 $ $ 104,567 59,568 $ 54,788 $ $ 114,356 $ 218,923 Legacy EQ revenue 84,965 $ 97,771 $ $ 182,736 111,326 $ 102,386 $ $ 213,713 $ 396,448 Less: intercompany revenue with legacy US Ecology (59) (48) (107)

• (107)

US Ecology pro forma revenue 84,906 $ 97,723 $ 182,629 $ 111,326 $ 102,386 $ 213,713 $ 396,341 $

US E c olog y c o nso lidate d pro forma re ve nue 138,074 $ 149,121 $ 287,195 $ 170,894 $ 157,174 $ 328,069 $ 615,264 $ Fo r the qua rte r e nde d For the qua rte r e nde d

36

Pro Forma Results: Earnings Per Share(1)

(in tho usands, e xc e pt pe r share data)

pe r sha re pe r sha re pe r sha re pe r sha re pe r sha re pe r sha re pe r sha re

Legacy US Ecology net income / earnings per diluted share 9,361 $ 0.44 $ 5,959 $ 0.28 $ $ 15,321 $ 0.71 9,836 $ 0.45 $ 7,782 $ 0.36 $ $ 17,618 $ 0.81 32,939 $ 1.52 $ Business development costs, net of tax 120 0.01 3,127 0.14 3,247 0.15 211 0.01 514 0.02 725 0.03 3,972 0.18 Less: intercompany transactions with legacy EQ, net of tax (81) (0.00) (30) (0.00) (111) (0.01)

• (111)

(0.01) Plus: pro forma unusued LOC fees, net of tax 26 0.00 493 0.02 519 0.02

• 519

0.02 Legacy US Ecology pro forma net income/ earnings per diluted Share $ 9,426 $ 0.44 $ 9,549 $ 0.44 $ 18,975 $ 0.88 $ 10,047 $ 0.46 $ 8,296 $ 0.38 $ 18,343 $ 0.84 $ 37,318 $ 1.72 Legacy EQ net income/earnings per dliuted share (3,324) $ (0.15) $ (19,721) $ (0.91) $ $(23,045) $ (1.06) 3,496 $ 0.16 $ 895 $ 0.04 $ $ 4,391 $ 0.20 (18,654) $ (0.86) $ Plus: seller transaction/business development costs, net of tax 437 0.02 13,469 0.62 $ 13,906 0.64

• 13,906

0.64 $ Plus: management fees and other adjustments, net

• f tax

118 0.01 2,179 0.10 $ 2,296 0.11

• 2,296

0.11 $ Plus: legacy EQ interest expense, net of tax 1,096 0.05 1,454 0.07 $ 2,551 0.12

• 2,551

0.12 $ Less: pro forma interest expense on new credit facility, net of tax (2,801) (0.13) (2,426) (0.11) $ (5,227) (0.24)

• (5,227)

(0.24) $ Plus: legacy EQ intangible amortization, net of tax 2,395 0.11 4,746 0.22 $ 7,141 0.33

• 7,141

0.33 $ Less: pro forma intangible amortization and depreciation, net of tax (624) (0.03) (1,044) (0.05) $ (1,668) (0.08)

• (1,668)

(0.08) $ Plus: legacy EQ accretion and closure/post-closure expense, net of tax 290 0.01 355 0.02 $ 644 0.03

• 644

0.03 $ Less: pro forma accretion and closure/post-closure expense, net of tax (356) (0.02) (363) (0.02) $ (719) (0.03)

• (719)

(0.03) $ Plus: intercompany transactions with legacy US Ecology, net of tax 81 0.00 30 0.00 $ 111 0.01

• 111

0.01 $ Plus / (less): pro forma tax benefit / (expense) adjustment 118 0.01 (471) (0.02) $ (353) (0.02)

• (353)

(0.02) $ Legacy EQ pro forma net income/earnings per diluted share $ (2,570) $ (0.12) $ (1,792) $ (0.08) $ (4,362) $ (0.20) $ 3,496 $ 0.16 $ 895 $ 0.04 $ 4,391 $ 0.20 $ 29 $ 0.00

US E c o lo g y pro fo rma ne t inc o me / e a rning s pe r dilute d sha re 6,856 $ 0.32 $ 7,757 $ 0.36 $ 14,613 $ 0.68 $ 13,543 $ 0.62 $ 9,191 $ 0.42 $ 22,735 $ 1.04 $ 37,348 $ 1.72 $

Shares used in earnings per diluted share calculation 21,475 21,667 21,680 21,673 21,655

Fo r the six mo nths E nde d 6/ 30/ 2014 F

• r the qua rter ended

F

• r the qua rter ended

F

• r the ye a r

3/ 31/ 2014 6/ 30/ 2014 9/ 30/ 2014 12/ 31/ 2014 E nde d 12/ 31/ 2014 F

• r the six mo nths

E nde d 12/ 31/ 2014 1Pro forma Diluted Earnings Share reflects diluted EPS as if the EQ transaction had occurred on January 1, 2014

37

Pro Forma Results: Adjusted EBITDA(1)

1Pro forma Adjusted EBITDA reflects Adjusted EBITDA as if the EQ transaction had occurred on January 1, 2014 F

• r the six months

F

• r the six mo nths

F

• r the ye a r e nde d

(in tho usands)

3/ 31/ 2014 6/ 30/ 2014 E nde d 6/ 30/ 2014 9/ 30/ 2014 12/ 31/ 2014 12/ 31/ 2014 12/ 31/ 2014

Legacy US Ecology Net Income 9,361 $ 5,959 $ $ 15,321 9,836 $ 7,782 $ $ 17,618 $ 32,939 Business development costs, net of tax 120 3,127 3,247

• 3,247

Less: intercompany transactions with legacy EQ, net of tax (81) (30) (111) 211 514 725 614 Plus: pro forma unusued LOC fees, net of tax 26 493 519

• 519

US Ecology pro forma net income 9,426 9,549 18,975 10,047 8,296 18,343 37,318 Income tax expense 5,271 5,829 11,100 5,935 4,826 10,761 21,861 Interest expense, net 3 (32) (29) (29) Foreign currency (gain)/loss 941 (744) 197 831 471 1,303 1,499 Other income (86) (148) (234) (129) (89) (217) (452) Depreciation and amortization of plant and equipment 3,839 3,893 7,732 3,752 3,964 7,716 15,448 Amortization of intangible assets 352 356 709 357 343 699 1,408 Stock-based compensation 269 255 525 299 313 613 1,137 Accretion and non-cash adjustments of closure & post-closure obligations 330 317 647 467 310 777 1,425

L e ga c y US E c olog y pro fo rma Adjuste d E BIT DA

20,345 $ 19,276 $ 39,621 $ 21,559 $ 18,436 $ 39,995 $ 79,616 $ Legacy EQ net income (3,324) $ (19,721) $ $ (23,045) 3,496 $ 895 $ $ 4,391 (18,654) $ Plus: legacy EQ interest expense, net of tax 1,096 1,454 2,551

• 2,551

Less: pro forma interest expense on new credit facility, net of tax (2,801) (2,426) (5,227)

• (5,227)

Plus: legacy EQ intangible amortization, net of tax 2,395 4,746 7,141

• 7,141

Less: pro forma intangible amortization and depreciation, net of tax (624) (1,044) (1,668)

• (1,668)

Plus: legacy EQ accretion and closure/post-closure expense, net of tax 290 355 644

• 644

Less: pro forma accretion and closure/post-closure expense, net of tax (356) (363) (719)

• (719)

Plus: seller transaction/business development costs, net of tax 437 13,469 13,906

• 13,906

Plus: management fees and other adjustments, net of tax 118 2,179 2,296

• 2,296

Plus: intercompany transactions with legacy US Ecology, net of tax 81 30 111

• 111

Plus / (less): pro forma tax benefit / (expense) adjustment 118 (471) (353)

• (353)

Legacy EQ pro forma net income $ (2,570) $ (1,792) $ (4,362) $ 3,496 $ 895 $ 4,391 $ 29 Pro forma income tax (benefit) / expense (1,643) (1,086) (2,729) 2,567 433 3,000 271 Pro forma interest expense, net 4,591 3,947 8,538 4,534 5,156 9,690 18,227 Pro forma other income (74) (202) (276) (142) (3) (145) (421) Pro forma depreciation and amortization of plant and equipment 2,309 2,935 5,244 4,605 3,718 8,323 13,567 Pro forma amortization of intangible assets 2,881 3,387 6,268 3,661 2,632 6,293 12,561 Pro forma stock-based compensation

• 45

67 112 112 Pro forma accretion and non-cash adjustments of closure & post-closure obligations 583 652 1,235 492 671 1,163 2,397

L e ga c y E Q pro fo rma Adjuste d E BIT DA

6,077 $ 7,841 $ 13,918 $ 19,257 $ 13,570 $ 32,827 $ 46,745 $

US E c o lo gy c o nso lida te d pro fo rma Adjuste d E BIT DA 26,422 $ 27,117 $ 53,539 $ 40,816 $ 32,005 $ 72,822 $ 126,361 $ F

• r the qua rte r e nde d

F

• r the qua rte r e nde d