<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
Commission file Number 0-11688
A. American Ecology Corporation 401(k) Savings Plan
B. American Ecology Corporation
805 W Idaho Suite 200
Boise ID 83702
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
American Ecology Corporation 401(k) Savings Plan
Date June 27, 1997 /s/ R.S. Thorn
------------- -------------------------
R.S. Thorn
As Trustee for the Plan
<PAGE> 2
FINANCIAL STATEMENTS
------
AMERICAN ECOLOGY CORPORATION
401(K) SAVINGS PLAN
------
DECEMBER 31, 1996 AND 1995
<PAGE> 3
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
INDEPENDENT AUDITORS' REPORT .................................... 1
FINANCIAL STATEMENTS
Statement of Net Assets Available for Benefits ................ 3
Statement of Changes in Net Assets Available
for Benefits ................................................. 4
Notes to Financial Statements ................................. 5
SUPPLEMENTAL INFORMATION
Item 27a - Schedule of Assets Held for Investment Purposes .... 19
Item 27d - Schedule of Reportable Transactions ................ 22
</TABLE>
<PAGE> 4
INDEPENDENT AUDITORS' REPORT
To the Administrative Committee
American Ecology Corporation 401(k) Savings Plan
We have audited the accompanying statement of net assets available for benefits
of American Ecology Corporation 401(k) Savings Plan as of December 31, 1996 and
1995 and the related statement of changes in net assets available for benefits
for the year then ended December 31, 1996. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of American
Ecology Corporation 401(k) Savings Plan as of December 31, 1996 and 1995 and
the changes in net assets available for benefits for the year then ended in
conformity with generally accepted accounting principles.
<PAGE> 5
Our audit were made for the purpose of forming an opinion on the basic
financial statements taken as whole. The supplemental schedules of assets held
for investment purposes and reportable transactions are presented for purposes
of additional analysis and are not a required part of the basic financial
statements but are supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. The supplemental schedules have been
subjected to the auditing procedures applied in our audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ D. Jae Hallett
- -------------------------------
by D. Jae Hallett, Partner
BALUKOFF, LINDSTROM & CO., P.A.
Boise, Idaho
June 20, 1997
<PAGE> 6
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1996 and 1995
ASSETS
<TABLE>
<CAPTION>
1996 1995
---------- ----------
<S> <C> <C>
Cash $ -- $ 36,906
Interest receivable -- 1,868
Investments, at fair value
Equity investment funds 6,320,030 4,495,155
Common stock of American
Ecology Corporation 158,406 189,703
Bond fund 20,455 520,540
Money market fund 2,305,898 476,502
Investment in guaranteed
interest accounts,
at contract value 579,497 381,588
Participant loans 272,384 --
---------- ----------
TOTAL INVESTMENTS 9,656,670 6,063,488
Contributions receivable 146,384 143,602
---------- ----------
TOTAL ASSETS 9,803,054 6,245,864
LIABILITIES
Administrative expenses payable -- 87,058
Other liabilities -- 4,965
---------- ----------
TOTAL LIABILITIES -- 92,023
---------- ----------
NET ASSETS AVAILABLE FOR BENEFITS $9,803,054 $6,153,841
========== ==========
</TABLE>
See accompanying notes
-3-
<PAGE> 7
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<S> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO
Investment income
Net appreciation in fair value of investments $ 291,981
Interest 48,156
Dividends 173,410
------------
513,547
Contributions
Employer 268,746
Employee 668,121
Employee rollover 35,252
------------
972,119
Plan Merger with American Ecology Retirement Plan 4,656,067
------------
TOTAL ADDITIONS 6,141,733
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO
Withdrawals and benefit payments 2,503,795
Administrative expenses and other (11,275)
------------
TOTAL DEDUCTIONS 2,492,520
------------
NET INCREASE IN NET ASSETS AVAILABLE
FOR BENEFITS 3,649,213
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR 6,153,841
------------
NET ASSETS AVAILABLE FOR BENEFITS,
END OF YEAR $ 9,803,054
============
</TABLE>
See accompanying notes
-4-
<PAGE> 8
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 and 1995
NOTE A - DESCRIPTION OF THE PLAN
General
American Ecology Corporation 401(k) Savings Plan ("the Plan"), was adopted
effective January 1, 1987, as a defined contribution plan. The Plan covers all
employees of American Ecology Corporation and its subsidiaries ("the Company"),
hired in a job category which will result in 1,000 hours of service during any
consecutive 12-month period and who have attained the age of 21. The Plan is
subject to the provisions of the Employee Retirement Income Security Act of
1974 ("ERISA"). Participants should refer to the Plan agreement for a more
complete description of the Plan. An administrative committee, appointed by
the board of directors of the Company, is responsible for the general
administration of the Plan. The administrative committee appoints a member of
the administrative committee to serve as Plan administrator. The
administrative committee is given all powers necessary to enable it to carry
out its duties including, but not limited to, the power to interpret the Plan,
decide on all questions of eligibility and the status and rights of
participants and direct disbursements of benefits in accordance with the
provisions of the Plan. Prior to May 1, 1995, the administrative committee
appointed three employees of the Company as trustees who had the authority to
control the assets of the Plan in accordance with the terms of the Plan.
During this period, Alex Brown & Sons Incorporated (Alex Brown), was appointed
as custodian of the Plan's assets authorizing Alex Brown to manage the Plan's
assets.
During the period May 1, 1995 through November 20, 1996 the administrative
committee appointed Hand and Associates as recordkeeper and American Industries
Trust Company as trustee of the plan. As plan trustees, American Industries
Trust Company had the authority to control the assets of the Plan in accordance
with the terms of the Plan.
Effective November 20, 1996, the administrative committee appointed PGG&R as
plan administrator, Manulife Financial as recordkeeper of the plan, and Fleet
Investment Advisors as the trustee of the Plan. As plan trustees, Fleet
Investment Advisors has the authority to control the assets of the Plan in
accordance with the terms of the Plan.
Effective November 20, 1996, the Plan merged with the American Ecology
Corporation Retirement Plan into a single plan known exclusively as the
American Ecology Corporation 401(k) Savings Plan. Transfer of the American
Ecology Corporation Retirement Plan assets of $4,656,067 occurred on December
12, 1996.
-5-
<PAGE> 9
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 and 1995
Employee Contributions
Through November 20, 1996, participants could elect to defer any whole
percentage up to 10 percent of their compensation. As of November 20, 1996 the
Plan was amended to allow participants to defer up to 15 percent of their
compensation as defined by the Plan, up to the maximum deferrable amount
allowed by the Internal Revenue Service (IRS). Participant contributions are
fully vested and nonforfeitable. Participants may elect to deposit their
contributions in any of the investment options available.
Employer Contributions
The Company also contributes a matching amount on behalf of each participant
equal to 55 percent of the amount of compensation deferred by each participant
for the calendar quarter not exceeding 6 percent of compensation. The
Company's matching contributions are subject to the vesting schedule detailed
below. Since January 1, 1993, the matching contributions have been directed by
the participant.
Vesting
The vesting schedule is as follows on Company matching contributions and actual
earnings thereon:
Percentage of
Service Vested Interest
------- ---------------
1 year 20%
2 years 60
3 years 100
Participants vest immediately in their deferrals plus actual earnings thereon.
The Plan provides for participants to be fully vested upon death, permanent
disability or the attainment of age 65.
Investment Options
Upon enrollment in the Plan, a participant may direct employee and employer
contributions in any of the following investment options:
Templeton Foreign Fund - seeks capital growth by investing in stocks and debt
obligations of companies and governments principally outside the United
States.
Fidelity OTC Portfolio - seeks capital growth by investing primarily in
securities traded in the over-the-counter securities market.
-6-
<PAGE> 10
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 and 1995
Fidelity Advisor Equity Growth Fund - seeks capital growth by investing in
common stock, preferred stock, and securities convertible to common stock
with above average growth statistics.
Phoenix Balanced Fund - seeks capital growth and conservation of capital by
investing in common stocks and fixed-income securities such as U.S. Treasury
obligations.
Scudder Short-Term Bond Fund - seeks high level of income consistent with a
high degree of principal stability by investing in high quality short-term
bonds, including U.S. government securities and corporate debt securities.
Alex Brown Cash Reserve Fund Prime Series - seeks preservation of capital and
liquidity by investing in money market investments, including U.S. Treasury
obligations.
American Ecology Corporation Common Stock - invests in common stock of
American Ecology Corporation.
Manulife Money Market Fund - invests primarily in short-term debt holdings of
the U.S. and Canadian Governments and their agencies, major bank certificates
of deposit and high-quality commercial paper.
Manulife High-Quality Bond Fund - invests in U.S. Treasury and Agency bonds
and high -quality corporate bonds.
Manulife Balanced Fund - seeks capital growth by investing in equity and
fixed income securities.
Manulife Index Stock Fund - invests in common stock, futures contracts and
short term investments of companies that are on the Standard & Poor's 500
Stock Index.
Manulife Capital Growth Stock Fund - seeks capital growth by investing in
stocks of U.S. companies which have above-average growth rates and meet
specific market capitalization levels.
Manulife Growth Plus Stock Fund - invests in the stocks of U.S. companies
which have above-average earnings growth rates.
Manulife Selective Growth Stock Fund - invests in the stocks of U.S.
companies which have above-average earning growth rates that do not do
business with specified foreign countries.
-7-
<PAGE> 11
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 and 1995
Manulife Emerging Growth Stock Fund - seeks capital growth by investing in
stocks of a wide variety of small to medium-sized U.S. companies in such
industries as health care, technology and consumer services.
Manulife International Stock Fund - invests solely in shares of the T. Rowe
Price International Stock Fund which invests in common stocks of foreign
companies that have the potential for growth of capital or income or both.
Manulife Growth & Income Fund - seeks growth by investing in shares of T.
Rowe Price Growth & Income Fund which invests primarily in common stocks of
companies that are expected to grow at a rate in excess of that of common
stocks in general and are adequate to support a growing dividend.
Manulife Income Fund - invests in shares of T. Rowe Price Spectrum Income
Fund that invests in a diversified group of fixed income securities.
Manulife Science & Technology Fund - invests in shares of T. Rowe Price
Science & Technology Fund that normally invests a majority of its assets in
domestic and foreign companies that seek to develop or use scientific and
technological advances.
Manulife Diversified Capital Fund - seeks growth by investing in shares of
SoGen International Fund which invests in a diversified portfolio of assets
of U.S. and foreign companies.
Manulife Growth Opportunities Fund - invests in shares of the Fidelity
Advisor Growth Opportunities Fund that invests in common stock and securities
convertible into common stocks of companies with long-term growth potential.
Manulife High-Yield Fund - seeks growth by investing in shares of the
Fidelity Advisor High Yield Fund which invests in high-yielding
non-investment grade, fixed-income, zero coupon securities, convertible
securities and preferred stocks.
Manulife Contra Fund - invests in shares of Fidelity Contra-fund which
invests in undervalued common stocks and convertible securities in companies
that are currently out of favor with the investing public.
Manulife Foreign Fund - invests in shares of the Templeton Foreign Fund that
invests in stocks primarily outside of the U.S.
-8-
<PAGE> 12
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 and 1995
Manulife Mid-Cap Value Fund - seeks growth by investing in shares of the
Mutual Beacon Fund that invests in common and preferred stocks that have been
determined to be below their intrinsic values.
Manulife Short-Term Government Fund - seeks growth by investing in shares of
the Vanguard Fixed Income Securities Fund - Short Term Federal Portfolio
which invests in high level of safety of principal.
Manulife Mid-Cap Growth Fund - invests in shares of the AIM Constellation
Fund which invests in a portfolio of primarily small to medium-sized stocks
with strong earnings growth and earnings potential.
Manulife Capital Appreciation Fund - invests in shares of the PBHG Growth
Fund which invests in common stock of small to medium capitalization
companies.
Manulife Value Fund - seeks growth by investing in shares of Neuberger &
Berman Guardian Trust which invests in common stock of well-established,
high-quality companies considered to be undervalued in comparison to stocks
of similar companies.
Manulife Life Style Fund-Aggressive - seeks to maximize long-term growth by
investing in Manulife's stock funds.
Manulife Life Style Fund-Growth - seeks growth by investing in growth and
undervalued stocks, as well as domestic and international.
Manulife Life Style Fund-Balanced - seeks growth by investing in fixed income
funds and stock funds.
Manulife Life Style Fund-Moderate - seeks growth by investing in funds that
emphasize capital preservation with a combination of income and modest
capital growth.
Manulife Life Style Fund-Conservative - seeks growth by investing in funds
specializing in fixed income and stock funds.
Manulife Guaranteed Interest Accounts - invested primarily in federal and
other government bonds and commercial mortgages. Interest rates are
established upon enrollment and guaranteed by Manulife as long as held to
maturity, with a choice of 3, 5, or 10 year terms.
-9-
<PAGE> 13
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 and 1995
Prior to January 1993, the Company had entered into a group annuity contract
with Principal Mutual Life Insurance Company ("PMLIC"). The Company and
participants had several investment options under this contract and had
utilized guaranteed interest accounts which bear interest at a rate in effect
at the date of contribution as determined by PMLIC (composite rate of 5.59% and
8.39% at December 31, 1996 and 1995) and mature through December 31, 1997. The
balances in the guaranteed interest accounts will remain in such accounts until
maturity or withdrawal by the employee.
Participant Accounts
Each participant's account is credited with the Company's contributions and the
Company's matching contributions. Dividend and interest income, net of
administrative expenses with respect to each category of investments, is
allocated quarterly to participants' accounts based upon their pro-rata share
of the equity in each investment fund before such allocation. Forfeitures of
terminated participant's nonvested benefits are applied to pay administrative
expenses and reduce the Company's contributions to the Plan. As of December
31, 1996 the Plan had $305,051 of unused forfeitures.
Effective November 20, 1996 the Plan was amended to allow the Company to
withdraw any excess forfeitures. No withdrawals were made from forfeitures
during fiscal year 1996. Forfeitures were utilized during fiscal 1995 and 1996
to pay administrative expenses.
Payment of Withdrawals and Benefits
Upon normal retirement or death, vested benefits due to participants and their
beneficiaries may be paid in the form of either a lump-sum distribution or
fixed period annuities.
Terminated employees who have a vested balance greater than $3,500 and current
employees who have discontinued contributions to the Plan are not required to
withdraw amounts from their Plan accounts.
The Plan has provisions for hardship withdrawals from the participant's
deferral account. Matching contributions and allocated earnings are not
available for hardship withdrawals.
Expenses
Expenses of administering the Plan are the responsibility of the Plan. During
the years ended December 31, 1996 and 1995, $40,285 and $92,023, respectively,
of administrative expenses were paid by the Company on behalf of the Plan. At
December 31, 1995 the plan administrator determined that payables of $87,058
were outstanding and owed to various vendors. Accordingly
-10-
<PAGE> 14
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 and 1995
the related administrative expenses and liability were recorded. During 1996
these payables were paid directly by the Company. The plan administrator and
the Company determined the continued recognition of the payables on the plan
books was not necessary as the amount will be repaid to the Company through
future forefeiture distributions. Accordingly, administrative expenses were
reduced by $87,058 in 1996 to reflect this change.
Termination
Although the Company expects to continue the Plan indefinitely, the Company may
terminate the Plan in whole or in part at any time upon giving written notice
to all parties concerned. If the Plan is terminated, the account of each
participant will be fully vested and nonforfeitable as of the effective date of
the Plan termination.
Participant Notes Receivable
Participants may borrow from their fund accounts a minimum of $1,000 up to a
maximum equal to the lesser of $50,000 or 50% of their account balance. Loan
transactions are treated as a transfer from the investment to the Participant
Notes fund. Payments on loans are treated as a transfer from the Participant
Notes fund to the investment. Loan terms range from 1-5 years or up to 15
years for the purchase of a primary residence. The loans are secured by the
balance in the participant's account and bear interest at a rate commensurate
with local prevailing rates as determined by the Plan administrator. Interest
rates range from 9.25% to 9.50%. Principal and interest is paid ratably
through monthly payroll deductions.
Plan Amendments
The plan was amended as of November 20, 1996 requiring the employer
contributions to be made in cash and not in Company stock. The amendment also
allowed participants to receive excess Section 415 contribution amounts from
their deferred contributions as opposed to returning excess employer
contributions to the employer.
NOTE B - SUMMARY OF ACCOUNTING POLICIES
Investment Valuation and Income Recognition
Investments in guaranteed interest accounts are carried at contract value,
which approximates principal amounts contributed to the accounts, plus accrued
interest, less distributions from the contract. Investments in all other
investment options are carried at their fair value measured and quoted market
prices in active markets or by the contracted price. Investment income is
recorded as earned.
-11-
<PAGE> 15
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 and 1995
Purchases and sales of securities are recorded on a trade-date basis.
Dividends are recorded on the ex-dividend date.
Payment of Benefits
Benefits are recorded when paid.
Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires the plan administrator to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly,
actual results may differ from those estimates.
NOTE C - GUARANTEED INTEREST ACCOUNTS
The guaranteed interest accounts held by the Plan are as follows:
<TABLE>
<CAPTION>
December 31,
1996 1995
---- ----
<S> <C> <C>
Guaranteed interest account with interest at
rate in effect of date of contribution
(rate of 5.75% as of December 31, 1996)
maturing on December 31, 2005 $ 10,314 $ --
Guaranteed interest account with interest at
rate in effect of date of contribution
(rate of 5.25% as of December 31, 1996)
maturing on December 31, 1998 40,874 --
Guaranteed interest account with interest at
rate in effect of date of contribution
(rate of 5.45% as of December 31, 1996)
maturing on December 31, 2000 20,674 --
</TABLE>
-12-
<PAGE> 16
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 and 1995
<TABLE>
<CAPTION>
December 31,
1996 1995
---- ----
<S> <C> <C>
Guaranteed interest account with interest at
rate in effect at date of contribution
(rates of 8.15% to 8.30% at December 31, 1995),
maturing on December 31, 1995 -- 280,342
Guaranteed interest account with interest at
rate in effect at date of contribution
(rates of 7.00% to 7.08% at December 31, 1995),
maturing on September 30, 1996 -- 1,730
Guaranteed interest account with interest at
rate in effect at date of contribution
(rate of 6.57% at December 31, 1996 and 1995),
maturing on December 31, 1996 52,360 --
Guaranteed interest account with interest at
rate in effect at date of contribution
(rate of 8.53% at December 31, 1996 and 1995),
maturing on December 31, 1997 447,039 --
Guaranteed interest account with interest at
rate in effect at date of contribution
(rate of 6.85% at December 31, 1996 and 1995),
maturing on December 31, 1996 80,098 98,091
Guaranteed interest account with interest at
rate in effect at date of contribution
(rates of 5.78% to 5.92% at December 31, 1995),
maturing on September 30, 1997 -- 1,425
-------- --------
$651,359 $381,588
======== ========
</TABLE>
NOTE D - INCOME TAX STATUS
The Plan obtained its latest determination letter on September 7, 1988, in
which the Internal Revenue Service stated that the Plan, as then designed, was
in compliance with the applicable requirements of the Internal Revenue Code
("IRC"). The Plan has been amended since receiving the determination letter.
However, the Plan administrator believes the Plan is currently designed and
being operated in compliance with the applicable requirements of the IRC.
Therefore, the Plan
-13-
<PAGE> 17
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 and 1995
administrator believes the Plan was qualified and the related trust was
tax-exempt as of December 31, 1996.
NOTE E - PLAN SPONSOR GOING CONCERN
The Company issued its latest audited financial statements as of December 31,
1996. Included in the independent auditor's report was a paragraph regarding
the substantial doubt about the Company's ability to continue as a going
concern. Failure of the Company to continue as a going concern could
ultimately affect the Plan.
NOTE F - SUBSEQUENT EVENTS
Effective February 1, 1997, the Plan was amended that requires an employer
contribution equal to five percent of the compensation not in excess of his
excess compensation of each union participant who is eligible to share under
the Plan, plus ten percent of such compensation in excess of such union
participant's excess compensation. Excess compensation is defined as
compensation exceeding the social security taxable wage base in effect at the
beginning of the Plan year.
On May 27, 1997 the IRS made a favorable determination on the Plan for all
amendments adopted through November 20, 1996.
NOTE G - PARTICIPANT DATA
Following is the statement of changes in net assets available for benefits by
fund at December 31, 1996:
-14-
<PAGE> 18
American Ecology Corporation 401(k) Savings Plan
Statement of Changes in Net Assets
For the year ended December 31, 1996
<TABLE>
<CAPTION>
Participant directed
------------------------------------------------------------------------------------------------
Templeton Fidelity Fidelity Phoenix Scudder Alex
Foreign OTC Advisors Balanced Short-term Brown Lifestyle
Fund Portfolio Equity GR Fund Bond Fund Prime Conserve
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Investment income (loss)
Net appreciation (loss) $ 72,718 $ 79,081 $ 249,026 $ 62,879 $ (9,082) $ -- $ (10)
Interest 1,239 2,837 3,957 2,129 900 21,902 --
Dividends 37,245 78,533 9,384 18,422 26,446 -- --
------------------------------------------------------------------------------------------------
Subtotal 111,202 160,451 262,367 83,430 18,264 21,902 (10)
Contributions
Employer 4,616 5,622 11,066 5,779 2,016 2,906 676
Employee 75,353 91,787 180,668 94,350 32,922 47,438 2,239
Rollover -- -- 15,233 -- -- -- --
------------------------------------------------------------------------------------------------
Subtotal 79,969 97,409 206,967 100,129 34,938 50,344 2,915
------------------------------------------------------------------------------------------------
Interfund transfers and
plan merger (605,487) (843,309) (1,390,994) (835,616) (361,282) (265,800) 169,239
------------------------------------------------------------------------------------------------
Total additions (414,316) (585,449) (921,660) (652,057) (308,080) (193,554) 172,144
DEDUCTIONS
Withdrawals and benefit payments 333,519 353,044 827,742 407,368 212,460 282,948 --
Administrative expenses and other -- -- -- -- -- -- --
------------------------------------------------------------------------------------------------
Total deductions 333,519 353,044 827,742 407,368 212,460 282,948 --
Net increase (decrease) during
year (747,835) (938,493) (1,749,402) (1,059,425) (520,540) (476,502) 172,144
Net assets available for benefits
beginning of year 747,835 938,493 1,749,402 1,059,425 520,540 476,502 --
------------------------------------------------------------------------------------------------
Net assets available for benefits
end of year $ -- $ -- $ -- $ -- $ -- $ -- $ 172,144
================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant directed
----------------------------------------------------------------------------
Guaranteed Guaranteed
Lifestyle Lifestyle Lifestyle Lifestyle Interest Interest
Moderate Balance Growth Aggressive 3 yr 5 yr
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Investment income (loss)
Net appreciation (loss) $ 26 $ 2,915 $ 2,522 $ 1,531 $ 129 $ 85
Interest -- -- -- -- -- --
Dividends -- -- -- -- -- --
----------------------------------------------------------------------------
Subtotal 26 2,915 2,522 1,531 129 85
Contributions
Employer 342 5,058 8,204 3,007 3 522
Employee 957 12,025 19,966 7,828 4 1,312
Rollover -- -- -- -- -- --
----------------------------------------------------------------------------
Subtotal 1,299 17,083 28,170 10,835 7 1,834
----------------------------------------------------------------------------
Interfund transfers and
plan merger 32,162 1,136,635 1,385,202 539,506 40,738 24,168
----------------------------------------------------------------------------
Total additions 33,487 1,156,633 1,415,894 551,872 40,874 26,087
DEDUCTIONS
Withdrawals and benefit payments -- 785 1,801 -- -- 5,413
Administrative expenses and other -- -- -- -- -- --
----------------------------------------------------------------------------
Total deductions -- 785 1,801 -- -- 5,413
Net increase (decrease) during
year 33,487 1,155,848 1,414,093 551,872 40,874 20,674
Net assets available for benefits
beginning of year -- -- -- -- -- --
----------------------------------------------------------------------------
Net assets available for benefits
end of year $ 33,487 $ 1,155,848 $ 1,414,093 $ 551,872 $ 40,874 $ 20,674
============================================================================
</TABLE>
-15-
<PAGE> 19
American Ecology Corporation 401(k) Savings Plan
Statement of Changes in Net Assets
For the year ended December 31, 1996
<TABLE>
<CAPTION>
Participant directed
-------------------------------------------------------------------------------------------
Guaranteed
Interest Money ST Hi-Qual High-Yield Diversified
10 yr Market Govt Bond Income Fund Capital Balanced
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Investment income (loss)
Net appreciation (loss) $ 50 $ 7,033 $ 2 $ (56) $ 217 $ 1,283 $ 367 $ (252)
Interest -- -- -- -- -- -- -- --
Dividends -- -- -- -- -- -- -- --
-------------------------------------------------------------------------------------------
Subtotal 50 7,033 2 (56) 217 1,283 367 (252)
Contributions
Employer 166 7,361 11 55 333 686 210 185
Employee 302 17,279 28 117 727 1,882 582 451
Rollover -- 20,019 -- -- -- -- -- --
-------------------------------------------------------------------------------------------
Subtotal 468 44,659 39 172 1,060 2,568 792 636
-------------------------------------------------------------------------------------------
Interfund transfers and
plan merger 9,796 2,255,718 598 20,339 59,666 120,060 75,609 24,703
-------------------------------------------------------------------------------------------
Total additions 10,314 2,307,410 639 20,455 60,943 123,911 76,768 25,087
DEDUCTIONS
Withdrawals and benefit payments -- 1,512 -- -- 54 406 -- --
Administrative expenses and other -- -- -- -- -- -- -- --
-------------------------------------------------------------------------------------------
Total deductions -- 1,512 -- -- 54 406 -- --
Net increase (decrease) during
year 10,314 2,305,898 639 20,455 60,889 123,505 76,768 25,087
Net assets available for benefits
beginning of year -- -- -- -- -- -- -- --
-------------------------------------------------------------------------------------------
Net assets available for benefits
end of year $ 10,314 $2,305,898 $639 $20,455 $60,889 $123,505 $76,768 $25,087
===========================================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant directed
--------------------------------------------------------------------------------
Growth & Value Mid-cap Index Capital Growth Select
Income Fund Value Stock Growth Plus Growth
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Investment income (loss)
Net appreciation (loss) $ (2,043) $ (614) $ -- $ (2,848) $ (921) $ (936) $ (355)
Interest -- -- -- -- -- -- --
Dividends -- -- -- -- -- -- --
--------------------------------------------------------------------------------
Subtotal (2,043) (614) -- (2,848) (921) (936) (355)
Contributions
Employer 1,818 592 -- 1,605 576 619 199
Employee 4,252 1,577 -- 4,311 1,362 1,296 476
Rollover -- -- -- -- -- -- --
--------------------------------------------------------------------------------
Subtotal 6,070 2,169 -- 5,916 1,938 1,915 675
--------------------------------------------------------------------------------
Interfund transfers and
plan merger 337,970 108,484 101,936 152,670 62,877 81,324 31,562
-------------------------------------------------------------------------------
Total additions 341,997 110,039 101,936 155,738 63,894 82,303 31,882
DEDUCTIONS
Withdrawals and benefit payments 382 54 -- 282 168 220 --
Administrative expenses and other -- -- -- -- -- -- --
-------------------------------------------------------------------------------
Total deductions 382 54 -- 282 168 220 --
Net increase (decrease) during
year 341,615 109,985 101,936 155,456 63,726 82,083 31,882
Net assets available for benefits
beginning of year -- -- -- -- -- -- --
-------------------------------------------------------------------------------
Net assets available for benefits
end of year $341,615 $109,985 $101,936 $155,456 $63,726 $82,083 $31,882
===============================================================================
</TABLE>
-16-
<PAGE> 20
American Ecology Corporation 401(k) Savings Plan
Statement of Changes in Net Assets
For the year ended December 31, 1996
<TABLE>
<CAPTION>
Participant directed
-----------------------------------------------------------------------------
Growth Int'l Mid-cap Capital
Oppor Contra Foreign Stock Growth Apprec
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
Investment income (loss)
Net appreciation (loss) $ (3,704) $ (1,800) $ 1,234 $ 1,774 $ 437 $ 4,920
Interest -- -- -- -- -- --
Dividends -- -- -- -- -- --
-----------------------------------------------------------------------------
Subtotal (3,704) (1,800) 1,234 1,774 437 4,920
Contributions
Employer 1,952 2,787 754 759 2,486 4,646
Employee 4,983 7,409 1,959 2,028 6,510 12,272
Rollover -- -- -- -- -- --
-----------------------------------------------------------------------------
Subtotal 6,935 10,196 2,713 2,787 8,996 16,918
-----------------------------------------------------------------------------
Interfund transfers and
plan merger 255,610 443,922 92,142 104,154 272,568 252,820
-----------------------------------------------------------------------------
Total additions 258,841 452,318 96,089 108,715 282,001 274,658
DEDUCTIONS
Withdrawals and benefit payments 667 464 -- 293 225 --
Administrative expenses and other -- -- -- -- -- --
-----------------------------------------------------------------------------
Total deductions 667 464 -- 293 225 --
Net increase (decrease) during
year 258,174 451,854 96,089 108,422 281,776 274,658
Net assets available for benefits
beginning of year -- -- -- -- -- --
-----------------------------------------------------------------------------
Net assets available for benefits
end of year $ 258,174 $ 451,854 $ 96,089 $ 108,422 $281,776 $274,658
=============================================================================
</TABLE>
<TABLE>
<CAPTION>
Non-
participant
Participant directed directed
---------------------------------------------------------- -----------
American Guaranteed
Emerging Science & Participant Ecology Interest
Growth Technology Other Note Rec Common Account Total
---------------------------------------------------------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Investment income (loss)
Net appreciation (loss) $ 539 $ (2,475) $ 6 $ -- $(171,697) $ -- $ 291,981
Interest -- -- (1,868) 3,405 453 13,202 48,156
Dividends -- -- 3,380 -- -- -- 173,410
-----------------------------------------------------------------------------------
Subtotal 539 (2,475) 1,518 3,405 (171,244) 13,202 513,547
Contributions
Employer 256 3,395 (502) -- 187,980 -- 268,746
Employee 637 8,658 3,650 -- 18,524 -- 668,121
Rollover -- -- -- -- -- -- 35,252
-----------------------------------------------------------------------------------
Subtotal 893 12,053 3,148 -- 206,504 -- 972,119
-----------------------------------------------------------------------------------
Interfund transfers and
plan merger 34,697 230,474 35,125 268,978 (27,195) 224,298 4,656,067
-----------------------------------------------------------------------------------
Total additions 36,129 240,052 39,791 272,383 8,065 237,500 6,141,733
DEDUCTIONS
Withdrawals and benefit payments -- -- -- -- 34,397 39,591 2,503,795
Administrative expenses and other -- -- (16,240) -- 4,965 -- (11,275)
-----------------------------------------------------------------------------------
Total deductions -- -- (16,240) -- 39,362 39,591 2,492,520
Net increase (decrease) during
year 36,129 240,052 56,031 272,383 (31,297) 197,909 3,649,213
Net assets available for benefits
beginning of year -- -- 90,353 -- 189,703 381,588 6,153,841
-----------------------------------------------------------------------------------
Net assets available for benefits
end of year $36,129 $240,052 $ 146,384 $272,383 $ 158,406 $579,497 $9,803,054
===================================================================================
</TABLE>
-17-
<PAGE> 21
SUPPLEMENTAL INFORMATION
-18-
<PAGE> 22
AMERICAN ECOLOGY CORPORATION
EIN: 95-3889638
401(k) SAVINGS PLAN
PLAN NUMBER 003
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
December 31, 1996
<TABLE>
<CAPTION>
Current
Identity of Issue Description Cost Value
----------------- ----------- ---- -------
<S> <C> <C> <C>
Manulife Lifestyle Conservative $ 172,154 $ 172,144
Manulife Lifestyle Moderate 33,462 33,487
Manulife Lifestyle Balanced 1,152,934 1,155,848
Manulife Lifestyle Growth 1,411,571 1,414,093
Manulife Lifestyle Aggressive 550,342 551,872
Manulife Money Market Conservative 2,298,864 2,305,898
Vanguard Short Term
Federal Portfolio 638 639
Manulife High-Quality
Bond Fund Bonds 20,511 20,455
T. Rowe Price
Spectrum Income Fixed Income
Securities 60,672 60,889
Fidelity Institutional
Retirement Services Advisor High Yield
Company Fund 122,221 123,505
Fidelity Institutional
Retirement Services Advisor Diversified
Company Capital Fund 76,402 76,768
Manulife Balanced Balanced Fund 25,339 25,087
</TABLE>
-19-
<PAGE> 23
AMERICAN ECOLOGY CORPORATION
EIN: 95-3889638
401(k) SAVINGS PLAN
PLAN NUMBER 003
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
December 31, 1996
<TABLE>
<CAPTION>
Current
Identity of Issue Description Cost Value
----------------- ----------- ---- -------
<S> <C> <C> <C>
T. Rowe Price
Growth & Income Common Stock 343,658 341,615
Manulife Value Fund Guardian Trust 110,599 109,985
Manulife Mid-Cap Fund Common/Preferred 101,936 101,936
Manulife Index Stock S&P's 500 Stock Index 158,305 155,456
Manulife Capital Growth Stock Fund 64,647 63,726
Manulife Growth Plus Stock Fund 83,019 82,083
Manulife Selective Growth Stock Fund 32,237 31,882
Fidelity Institutional
Retirement Services Advisor Growth
Company Opportunities Fund 261,877 258,174
Fidelity Institutional
Retirement Services Advisor Contrafund 453,654 451,854
Company
Templeton Funds, Inc. Foreign Fund 94,855 96,089
T. Rowe Price International Stock 106,648 108,422
AIM Constellation Mid-cap Growth 281,339 281,776
PBHG Growth Fund 269,738 274,658
Manulife Emerging Growth Stock Fund 35,589 36,129
T. Rowe Price
Science & Technology Fund 242,529 240,052
</TABLE>
-20-
<PAGE> 24
AMERICAN ECOLOGY CORPORATION
EIN: 95-3889638
401(k) SAVINGS PLAN
PLAN NUMBER 003
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
December 31, 1996
<TABLE>
<CAPTION>
Current
Identity of Issue Description Cost Value
----------------- ----------- ---- -------
<S> <C> <C> <C>
*American Ecology
Corporation Common Stock 381,450 158,406
Principal Mutual Life
Insurance Company:
Maturing December 31, 1996
with an interest rate of 6.57% 52,360 52,360
Maturing December 31, 1997
with an interest rate of 8.53% 446,122 447,039
Maturing December 31, 1996
with an interest rate of 6.85% 80,098 80,098
Manulife GICS
Maturing December 31, 1998,
with interest rates of 5.21%
to 5.25% 40,521 40,874
Maturing December 31, 2000,
with interest rates of 5.45%
to 5.55% 20,317 20,674
Maturing December 31, 2005,
with an interest rate of 5.75%
to 5.77% 9,913 10,314
---------- ----------
Borrower Participant loans
9.25-9.50% -- 272,383
---------- ----------
TOTAL ASSETS HELD FOR INVESTMENT
PURPOSES $9,559,781 $9,656,670
========== ==========
</TABLE>
*Known party in interest
-21-
<PAGE> 25
American Ecology Corporation
EIN: 95-3889638
401(k) Savings Plan
Item 27d - Schedule of Reportable Transactions
Plan Number 003
For the year ended December 31, 1996
<TABLE>
<CAPTION>
Current Value
of asset Net
Purchase Selling Cost of at date of Gain
Identity of Party Involved Description Price Price Asset transaction \(Loss)
- ----------------------------------- ------------------------ ---------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Category (i): A single transaction in excess of 5% of plan assets
Phoenix Equity Planning
Corporation Phoenix Series Balance $ -- $ 754,799 $ 701,026 $ 754,799 $ 53,773
Fidelity Institutional Retirement
Services Company Fidelity Advisors Grow -- 1,312,115 1,131,772 1,312,115 180,343
Alex Brown & Sons Alex Brown Prime -- 4,264,880 4,264,880 4,264,880 --
1,266,417 -- 1,266,417 1,266,417 --
2,667,420 -- 2,667,420 2,667,420 --
Fidelity Institutional Retirement
Services Company Fidelity OTC -- 863,688 790,533 863,688 73,155
Scudder Scudder -- 402,729 407,475 402,729 (4,746)
Templeton Funds, Inc. Templeton Foreign Fund -- 600,505 550,934 600,505 49,571
Manulife Financial Savings
& Retirement Services Lifestyle-Aggresive 537,910 -- 537,910 537,910 --
Manulife Financial Savings
& Retirement Services Lifestyle-Balanced 1,133,832 -- 1,133,832 1,133,832 --
Manulife Financial Savings
& Retirement Services Contra Fund 341,824 -- 341,824 341,824 --
Manulife Financial Savings
& Retirement Services Growth & Income Fund 1,385,571 -- 1,385,571 1,385,571 --
Manulife Financial Savings
& Retirement Services Money Market Fund 2,220,242 -- 2,220,242 2,220,242 --
</TABLE>
-22-
<PAGE> 26
<TABLE>
<CAPTION>
Current Value
of asset Net
Purchase Selling Cost of at date of Gain
Identity of Party Involved Description Price Price Asset transaction \(Loss)
- ----------------------------------- ---------------------- ---------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Category (iii): A series of transactions in excess of 5% of plan assets
Manulife Financial Savings
& Retirement Services Lifestyle-Aggresive 557,224 -- 557,224 557,224 --
Manulife Financial Savings
& Retirement Services Lifestyle-Balanced 1,165,713 -- 1,165,713 1,165,713 --
Manulife Financial Savings
& Retirement Services Contra Fund 461,281 -- 461,281 461,281 --
Manulife Financial Savings
& Retirement Services Growth & Income Fund 348,768 -- 348,768 348,768 --
Manulife Financial Savings
& Retirement Services Lifestyle-Growth 1,430,607 -- 1,430,607 1,430,607 --
Manulife Financial Savings
& Retirement Services Money Market Fund 2,304,953 -- 2,304,953 2,304,953 --
Fidelity Institutional Retirement
Services Company Fidelity Advisors Grow -- 2,292,519 2,043,493 2,292,519 249,026
Alex Brown & Sons Alex Brown Prime 4,129,708 -- 4,129,708 4,129,708 --
-- 4,601,090 4,601,090 4,601,090 --
Fidelity Institutional Retirement
Services Company Fidelity OTC -- 1,327,934 1,248,853 1,327,934 79,081
Phoenix Equity Planning
Corporation Phoenix Series Balance -- 1,272,070 1,209,191 1,272,070 62,879
Scudder Scudder -- 667,216 676,298 667,216 (9,082)
Templeton Funds, Inc. Templeton Foreign Fund -- 1,013,734 941,016 1,013,734 72,718
</TABLE>
A reportable transaction represents a transaction, or series of transactions in
the same security involving an aggregate amount in excess of 5% of the Plan asse
There were no category (ii) or (iv) reportable tranactions during 1996.
-23-
