A message from Steve Romano, Chairman, President and CEO—American Ecology Corporation
Our operating results are off to a record start in the first six months of 2008, with another record in operating income in the second quarter. Operating income climbed 20% in both the quarter and year to date periods and stands at $19.4 million year to date. Our Idaho, Nevada and Texas waste facilities disposed of 668,000 tons of waste through June 30, 2008, a 23% increase over the same period last year. Revenue of $90.7 million is up 13% year to date.
Our record operating results in the second quarter were fueled by strong event clean-up business, which increased 37%, continued growth of our broker business and the favorable operating leverage delivered by increased waste throughput. We are particularly pleased to note that our Texas and Nevada facilities led the way in volume growth in the second quarter. This underscores the timeliness of recent capital investments that have allowed both operations to emerge as significant contributors to what is now a stronger, more diversified company. Our recent investments continue to drive a waste industry-leading 12-month return on invested capital of 18.7%.
Based on record first half results and a solid outlook for the remainder of the year, we have estimated earnings toward the upper end, or to slightly exceed our 2008 guidance range of $1.17 to $1.23 per diluted share. Exceeding the upper end of our guidance range will be dependent on a strong contribution from our thermal desorption recycling service in the back half of the year.
American Ecology is well positioned as the nation's most comprehensive supplier of hazardous, PCB and low-level radioactive waste disposal services. We offer more than five decades of experience, an exceptional safety and environmental record and customer service that is second to none. With our business expanding in multiple areas, a promising new recycling service now in operation for refinery customers and two highly qualified additions to our Board of Directors, we look forward to continued growth from our diversified treatment and disposal platform.
Stephen A. Romano
Chairman, President and Chief Executive Officer