<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, 1998
COMMISSION FILE NUMBER 0-11688
A. American Ecology Corporation 401(k) Savings and Retirement Plan and
Trust
B. American Ecology Corporation
805 W. Idaho Street Suite 200
Boise, Idaho 83702
SIGNATURES
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
Retirement Plan
Date: June 28, 1999 /s/ R.S. THORN
----------------------- ---------------------------------------
R. S. Thorn
As Trustee for the Plan
<PAGE> 2
FINANCIAL STATEMENTS
-----
AMERICAN ECOLOGY CORPORATION
401(k) SAVINGS AND RETIREMENT PLAN
AND TRUST
-----
DECEMBER 31, 1998 AND 1997
<PAGE> 3
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
INDEPENDENT AUDITORS' REPORT ........................................................... 1
FINANCIAL STATEMENTS
Statements of Net Assets Available for Benefits..................................... 2
Statement of Changes in Net Assets Available
for Benefits...................................................................... 3
Notes to Financial Statements....................................................... 4
SUPPLEMENTAL INFORMATION
Item 27a - Schedule of Assets Held for Investment Purposes.......................... 18
Item 27d - Schedule of Reportable Transactions...................................... 22
</TABLE>
<PAGE> 4
INDEPENDENT AUDITORS' REPORT
To the Administrative Committee
American Ecology Corporation 401(k) Savings and Retirement Plan and Trust
We have audited the accompanying statements of net assets available for benefits
of American Ecology Corporation 401(k) Savings and Retirement Plan and Trust as
of December 31, 1998 and 1997 and the related statement of changes in net assets
available for benefits for the year ended December 31, 1998. 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, 1998 and 1997 and the changes
in net assets available for benefits for the year ended December 31, 1998 in
conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a 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 audit 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.
June 7, 1999
-1-
<PAGE> 5
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS
AND RETIREMENT PLAN AND TRUST
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
ASSETS
Cash $ -- $ 411
Investments, at fair value
Equity investment funds 8,350,031 7,015,190
Common stock of American Ecology Corporation 143,564 140,188
Bond fund 27,374 24,028
Money market fund 1,000,645 1,134,590
Investment in guaranteed interest accounts, at contract value 98,893 452,054
Participant loans 387,331 284,630
------------ ------------
TOTAL INVESTMENTS 10,007,838 9,050,680
Contributions receivable -- 69,714
------------ ------------
TOTAL ASSETS 10,007,838 9,120,805
LIABILITIES -- --
------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS $ 10,007,838 $ 9,120,805
============ ============
</TABLE>
See accompanying notes
-2-
<PAGE> 6
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS
AND RETIREMENT PLAN AND TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31, 1998
<TABLE>
<S> <C>
ADDITIONS TO NET ASSETS ATTRIBUTED TO
Investment income
Net appreciation in fair value of investments $ 1,006,272
Interest 33,597
Dividends 43,463
---------------
1,083,332
Contributions
Employer 205,104
Employee 517,137
---------------
722,241
---------------
TOTAL ADDITIONS 1,805,573
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO
Withdrawals and benefit payments 916,803
Forfeitures 1,737
---------------
TOTAL DEDUCTIONS 918,540
---------------
NET INCREASE IN NET ASSETS AVAILABLE
FOR BENEFITS 887,033
NET ASSETS AVAILABLE FOR BENEFITS,
BEGINNING OF YEAR 9,120,805
---------------
NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR $ 10,007,838
===============
</TABLE>
See accompanying notes
-3-
<PAGE> 7
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS
AND RETIREMENT PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
NOTE A - DESCRIPTION OF THE PLAN
General
American Ecology Corporation 401(k) Savings and Retirement Plan and Trust ("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 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.
Effective November 20, 1996, the administrative committee appointed Pinnacle
Pension Service as plan administrator, Manulife Financial as recordkeeper of the
plan, and Fleet Investment Advisors as the trustee of the Plan. As plan trustee,
Fleet Investment Advisors has the authority to control the assets of the Plan in
accordance with the terms of the Plan.
Employee Contributions
Participants may 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. Participants may elect to deposit their contributions in any of the
investment options available.
Employer Contributions
The Company contributes a discretionary matching contribution which is
determined by the Employer. For 1998 and 1997 the Company established the
discretionary matching contribution for all participants equal to 55 percent of
the amount of compensation deferred by each participant for the calendar quarter
not exceeding 6 percent of compensation. A discretionary profit sharing
contribution which is determined by the Company from time to time and is
determined separately for union and non-union participants. From February 1997
through February 1998, the Company contributed 5 percent of the employees
compensation that is not excess compensation plus 10 percent of the employees'
excess compensation for union employees. These are non-elective contributions.
The Company's matching contributions are subject to the vesting schedule
detailed below.
-4-
<PAGE> 8
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS
AND RETIREMENT PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
Vesting
The vesting schedule is as follows on Company matching contributions and actual
earnings thereon:
<TABLE>
<CAPTION>
Union Employees (non-elective contributions):
Percentage of
Service Vested Interest
------- ---------------
<S> <C>
1 year 20%
2 years 40%
3 years 60%
4 years 80%
5 years or more 100%
Non-Union Employees (non-elective and matching) and Union Employees
(matching contributions)::
Percentage of
Service Vested Interest
------- ---------------
1 year 20%
2 years 60%
3 years or more 100%
</TABLE>
The Plan provides for participants to be 100% 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:
Manulife Life Style Fund-Conservative - seeks growth by investing in funds
specializing in fixed income 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-Balance - seeks growth by investing in fixed income
funds and stock funds.
Manulife Life Style Fund-Growth - seeks growth by investing in growth and
undervalued stocks, as well as domestic and international.
-5-
<PAGE> 9
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS
AND RETIREMENT PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
Manulife Life Style Fund-Aggressive - seeks to maximize long-term growth by
investing in Manulife's stock funds.
Manulife Guaranteed Interest Accounts - invested primarily in federal and other
government bonds and commercial mortgages. Interest rate are established upon
enrollment and guaranteed by Manulife as long as held to maturity, with a choice
or 3, 5, or 10 year terms.
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 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 High-Quality Bond Fund - invests in U.S. Treasury and Agency bonds and
high-quality corporate bonds.
Manulife Income Fund - invests in shares of T. Rowe Price Spectrum Income Fund
that invests in a diversified group of fixed income securities.
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 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 Balanced Fund - seeks capital growth by investing in equity and fixed
income securities.
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 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.
-6-
<PAGE> 10
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS
AND RETIREMENT PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
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 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 earnings growth rates that do not do business with
specified foreign countries.
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 Equity Income Fund - invests in common and preferred stock of companies
whose yield is considered a major factor as well as the potential for earnings
and dividend growth.
Manulife Small Cap Value Fund - invests in shares of Franklin Balance Sheet
Investment Fund which invests in the common and preferred stock of companies
whose assets may have been overlooked in conventional balance sheet
calculations.
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.
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.
-7-
<PAGE> 11
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS
AND RETIREMENT PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
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 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 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 Discovery Fund - invests in shares of Mutual Discovery Fund which
typically invests in common and preferred stocks that are traded at price below
their intrinsic value according to standard valuation methods.
Manulife Developing Markets Fund - invests in shares of Templeton Developing
Markets Trust which typically invests in equity securities of developing or
emerging countries.
Manulife Socially Responsible Fund - invests in shares of the Domini Social
Equity Fund which invests primarily in large capitalization companies that
enforce a code of conduct in selecting where and with whom they will do
business.
Manulife Growth Fund - invests in shares of the Founders Growth Fund which seeks
long-term growth by investing at least 65% of its assets in common stock of
well-established, high quality growth companies. The fund may also invest up to
30% of its assets in foreign securities (no more than 25% may be invested in one
foreign country).
Manulife Small Company Stock Fund - invests in shares of the Lord Abbett
Developing Growth Fund which seeks long-term growth of capital through a
portfolio consisting of developing growth companies, many of which are traded
over the counter.
American Ecology Corporation Common Stock - invests in common stock of American
Ecology Corporation.
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
-8-
<PAGE> 12
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS
AND RETIREMENT PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
interest at a rate in effect at the date of contribution as determined by PMLIC
(composite rate of 5.40% at December 31, 1997). The balances matured in 1998 and
the guaranteed interest accounts were transferred.
Participant Accounts
Each participant's account is credited with the participant's elective deferral,
the Company's discretionary contribution, and the Company's matching
contribution. 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 equity in each investment fund
before allocation. Forfeitures of terminated participant's nonvested benefits
are applied to pay administrative expenses and reduce the Company's
contributions to the Plan.
Effective November 20, 1996, the Plan was amended to allow the Company to
withdraw any excess forfeitures. As of December 31, 1998 and December 31, 1997
the Plan had unused forfeitures of $-- and $40,254, respectively. The Plan
determined $1,797 of forfeitures was available to be returned to the Company
during 1998.
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. The
Company paid $2,138 and $108,061 of administrative expenses during the years
ended December 31, 1998 and 1997, respectively, on behalf of the Plan.
Manulife's fee for the administration of the plan funds for 1998 and 1997 of
$19,054 and $23,057, respectively, was taken directly from fund earnings before
being allocated to plan assets.
-9-
<PAGE> 13
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS
AND RETIREMENT PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
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 100% 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 Participants
Notes fund to the investment fund. 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
As of February 1, 1997 the plan was amended to require an employer contribution
equal to five percent of the compensation not in excess of the excess
compensation of each union participant who is eligible 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.
During 1998 the Plan was amended for employer contributions for union employees
to match the amount required by the union contract.
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.
Purchases and sales of securities are recorded on a trade-date basis. Dividends
are recorded on the ex-dividend date.
-10-
<PAGE> 14
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS
AND RETIREMENT PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
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,
-----------------------
1998 1997
---------- ---------
<S> <C> <C>
Guaranteed interest account with interest at
rate in effect of date of contribution
(rate of 4.75% as of December 31, 1998
and 5.85% as of December 31, 1997)
maturing on December 31, 2005 $ 11,721 $ 10,812
Guaranteed interest account with interest at
rate in effect of date of contribution
(rate of 4.75 as of December 31, 1998
and 5.85% as of December 31, 1997)
maturing on December 31, 2006 3,053 2,885
Guaranteed interest account with interest at
rate in effect of date of contribution
(rate of 4.55% as of December 31, 1998
and 5.75% as of December 31, 1997)
maturing on December 31, 1998 44,974 43,004
Guaranteed interest account with interest at
rate in effect of date of contribution
(rate of 4.55% as of December 31, 1998
and 5.75% as of December 31, 1997)
maturing on December 31, 1999 6,581 6,154
</TABLE>
-11-
<PAGE> 15
AMERICAN ECOLOGY CORPORATION 401(k) SAVINGS
AND RETIREMENT PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
<TABLE>
<S> <C> <C>
Guaranteed interest account with interest at
rate in effect of date of contribution
(rate of 4.55% as of December 31, 1998
and 5.80% as of December 31, 1997)
maturing on December 31, 2000 26,075 21,278
Guaranteed interest account with interest at
rate in effect of date of contribution
(rate of 4.55% as of December 31, 1998
and 5.80% as of December 31, 1997)
maturing on December 31, 2001 2,830 4,006
Guaranteed interest account with interest at
rate in effect of date of contribution
(rate of 4.55% as of December 31, 1998)
maturing on December 31, 2002 868 --
Guaranteed interest account with interest at
rate in effect of date of contribution
(rate of 4.75% as of December 31, 1998)
maturing on December 31, 2007 2,791 --
Guaranteed interest account with interest at
rate in effect at date of contribution
(rate of 5.40% at December 31, 1997)
maturing on December 31, 1997 -- 363,915
--------- ---------
$ 98,893 $ 452,054
========= =========
</TABLE>
NOTE D - INCOME TAX STATUS
The Plan obtained its latest determination letter on May 27, 1997 in which the
Internal Revenue Service stated that the Plan, as originally adopted in
September 7, 1988, and all amendments through November 26, 1996, were 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
-12-
<PAGE> 16
compliance with the applicable requirements of the IRC. Therefore, no provision
for income taxes has been included in the Plan's financial statements.
NOTE E- PARTICIPANT DATA
The following is the statement of changes in net assets available for benefits
by fund at December 31, 1998:
-13-
<PAGE> 17
American Ecology Corporation 401(k) Savings and Retirement Plan and Trust
STATEMENT OF CHANGES IN NET ASSETS
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Participant directed
---------------------------------------------------------------------------------------------------------
Guaranteed Guaranteed
Lifestyle Lifestyle Lifestyle Lifestyle Lifestyle Interest Interest
Conserve Moderate Balance Growth Aggressive 3 yr 5 yr
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions
Investment income (loss)
Net appreciation (loss) $ 17,101 $ 4,962 $ 103,227 $ 174,239 $ 67,749 $ -- $ --
Interest -- -- -- -- -- 2,517 1,241
Dividends -- -- -- -- -- -- --
-----------------------------------------------------------------------------------------------
Subtotal 17,101 4,962 103,227 174,239 67,749 2,517 1,241
Contributions
Employer 4,538 2,572 28,043 32,613 14,504 1,921 612
Employee 14,543 7,051 58,137 80,805 38,282 3,188 1,231
-----------------------------------------------------------------------------------------------
Subtotal 19,081 9,623 86,180 113,418 52,786 5,109 1,843
-----------------------------------------------------------------------------------------------
Interfund transfers 9,458 (10,271) (491,759) 80,386 43,844 783 255
-----------------------------------------------------------------------------------------------
Total additions 45,640 4,314 (302,352) 368,043 164,379 8,409 3,339
Deductions
Withdrawals and benefit payments 6,764 4,995 175,013 18,638 91,871 -- 4,631
Forfeitures -- -- -- -- -- -- --
-----------------------------------------------------------------------------------------------
Total deductions 6,764 4,995 175,013 18,638 91,871 -- 4,631
-----------------------------------------------------------------------------------------------
Net increase (decrease) during
year 38,876 (681) (477,365) 349,405 72,508 8,409 (1,292)
Net assets available for benefits,
beginning of year 202,157 48,452 1,208,288 1,453,477 681,746 49,158 25,284
-----------------------------------------------------------------------------------------------
Net assets available for benefits,
end of year $ 241,033 $ 47,771 $ 730,923 $ 1,802,882 $ 754,254 $ 57,567 $ 23,992
===============================================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant directed
------------------------------------------------------------------------------------
Guaranteed
Interest Money ST Hi-Qual High-Yield
10 yr Market Govt Bond Income Fund
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions
Investment income (loss)
Net appreciation (loss) $ -- $ -- $ 124 $ 1,949 $ 3,839 $ (1,031)
Interest 804 -- -- -- -- --
Dividends -- 43,463 -- -- -- --
------------------------------------------------------------------------------------
Subtotal 804 43,463 124 1,949 3,839 (1,031)
Contributions
Employer 921 10,172 707 241 2,192 3,463
Employee 1,662 13,548 1,883 479 5,463 9,437
------------------------------------------------------------------------------------
Subtotal 2,583 23,720 2,590 720 7,655 12,900
------------------------------------------------------------------------------------
Interfund transfers 250 65,999 66 677 13,314 (59,517)
------------------------------------------------------------------------------------
Total additions 3,637 133,182 2,780 3,346 24,808 (47,648)
Deductions
Withdrawals and benefit payments -- 267,127 -- -- 7,162 816
------------------------------------------------------------------------------------
Forfeitures -- -- -- -- -- --
------------------------------------------------------------------------------------
Total deductions -- 267,127 -- -- 7,162 816
Net increase (decrease) during
year 3,637 (133,945) 2,780 3,346 17,646 (48,464)
Net assets available for benefits,
beginning of year 13,697 1,134,590 1,530 24,028 63,700 170,100
------------------------------------------------------------------------------------
Net assets available for benefits,
end of year $ 17,334 $ 1,000,645 $ 4,310 $ 27,374 $ 81,346 $ 121,636
====================================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant directed
--------------------------
Diversified
Capital Balanced
--------------------------
<S> <C> <C>
Additions
Investment income (loss)
Net appreciation (loss) $ (555) $ 10,200
Interest -- --
Dividends -- --
--------------------------
Subtotal (555) 10,200
Contributions
Employer 814 962
Employee 2,787 1,901
--------------------------
Subtotal 3,601 2,863
--------------------------
Interfund transfers 559 147,663
--------------------------
Total additions 3,605 160,726
Deductions
Withdrawals and benefit payments 67 7,919
Forfeitures -- --
--------------------------
Total deductions 67 7,919
--------------------------
Net increase (decrease) during
year 3,538 152,807
Net assets available for benefits,
beginning of year 64,021 36,729
--------------------------
Net assets available for benefits,
end of year $ 67,559 $ 189,536
==========================
</TABLE>
-14-
<PAGE> 18
American Ecology Corporation 401(k) Savings and Retirement Plan and Trust
STATEMENT OF CHANGES IN NET ASSETS
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Participant directed
----------------------------------------------------------------------------------------------
Growth & Value Mid-Cap Index Capital Growth Select Growth
Income Fund Value Stock Growth Plus Growth Oppor
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions
Investment income (loss)
Net appreciation (loss) $ 36,159 $ 2,905 $ 782 $ 66,218 $ 20,297 $ 19,162 $ 11,138 $ 94,892
Interest -- -- -- -- -- -- -- --
Dividends -- -- -- -- -- -- -- --
----------------------------------------------------------------------------------------------
Subtotal 36,159 2,905 782 66,218 20,297 19,162 11,138 94,892
Contributions
Employer 8,916 3,315 894 6,438 2,758 3,250 1,476 9,713
Employee 22,311 10,812 2,977 16,760 7,168 7,768 3,798 26,788
----------------------------------------------------------------------------------------------
Subtotal 31,227 14,127 3,871 23,198 9,926 11,018 5,274 36,501
----------------------------------------------------------------------------------------------
Interfund transfers 196,922 16,606 25,849 (37,273) 7,333 3,908 19,377 99,964
----------------------------------------------------------------------------------------------
Total additions 264,308 33,638 30,502 52,143 37,556 34,088 35,789 231,357
Deductions
Withdrawals and benefit payments 21,013 10,098 9,365 30,845 11,659 27,104 1,006 22,092
Forfeitures -- -- -- -- -- -- -- --
----------------------------------------------------------------------------------------------
Total deductions 21,013 10,098 9,365 30,845 11,659 27,104 1,006 22,092
----------------------------------------------------------------------------------------------
Net increase (decrease) during
year 243,295 23,540 21,137 21,298 25,897 6,984 34,783 209,265
Net assets available for benefits,
beginning of year 341,220 140,921 23,921 234,268 93,737 122,770 39,624 361,103
----------------------------------------------------------------------------------------------
Net assets available for benefits,
end of year $ 584,515 $ 164,461 $ 45,058 $ 255,566 $ 119,634 $ 129,754 $ 74,407 $ 570,368
==============================================================================================
</TABLE>
<TABLE>
<CAPTION>
Participant directed
----------------------------------------------------------------------------------------
Equity Small Int'l Mid-cap Capital
Income Cap Value Contra Foreign Stock Growth Apprec
<S> <C> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------
Additions
Investment income (loss)
Net appreciation (loss) $ 395 $ (489) $ 146,650 $ (6,694) $ 15,058 $ 64,751 $ 1,070
Interest -- -- -- -- -- -- --
Dividends -- -- -- -- -- -- --
----------------------------------------------------------------------------------------
Subtotal 395 (489) 146,650 (6,694) 15,058 64,751 1,070
Contributions
Employer 1,400 636 11,874 2,569 1,444 9,395 10,662
Employee 3,650 2,533 36,464 8,247 4,422 26,005 27,174
----------------------------------------------------------------------------------------
Subtotal 5,050 3,169 48,338 10,816 5,866 35,400 37,836
Interfund transfers (16,354) 4,417 58,371 (7,706) 4,617 (8,813) (58,496)
----------------------------------------------------------------------------------------
Total additions (10,909) 7,097 253,359 (3,584) 25,541 91,338 (19,590)
Deductions
Withdrawals and benefit payments 1,241 9,528 57,431 12,352 6,773 18,481 22,809
Forfeitures -- -- -- -- -- -- --
----------------------------------------------------------------------------------------
Total deductions 1,241 9,528 57,431 12,352 6,773 18,481 22,809
Net increase (decrease) during
year (12,150) (2,431) 195,928 (15,936) 18,768 72,857 (42,399)
Net assets available for benefits,
beginning of year 17,093 14,751 470,126 131,525 98,336 329,859 249,218
----------------------------------------------------------------------------------------
Net assets available for benefits,
end of year $ 4,943 $ 12,320 $ 666,054 $ 115,589 $ 117,104 $ 402,716 $ 206,819
=========================================================================================
</TABLE>
-15-
<PAGE> 19
American Ecology Corporation 401(k) Savings and Retirement Plan and Trust
STATEMENT OF CHANGES IN NET ASSETS
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Participating directed
-------------------------------------------------------------------------------------------------
Emerging Science & Developing Socially Small
Growth Technology Discovery Markets Responsible Growth Company Other
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions
Investment income (loss)
Net appreciation (loss) $ (446) $ 138,167 $ (1,452) $ (3,919) $ 13,429 $ 708 $ 2,075 $ --
Interest -- -- -- -- -- -- -- --
Dividends -- -- -- -- -- -- -- --
-------------------------------------------------------------------------------------------------
Subtotal (446) 138,167 (1,452) (3,919) 13,429 708 2,075 --
Contributions
Employer 3,123 19,928 546 1,089 894 182 327 --
Employee 10,885 49,282 1,640 3,771 2,526 340 1,419 --
-------------------------------------------------------------------------------------------------
Subtotal 14,008 69,210 2,186 4,860 3,420 522 1,746 --
-------------------------------------------------------------------------------------------------
Interfund transfers (7,512) (23,435) 5,254 (2,129) 213,724 13,578 21,213 89,588
-------------------------------------------------------------------------------------------------
Total additions 6,050 183,942 5,988 (1,188) 230,573 14,808 25,034 118,623
Deductions
Withdrawals and benefit payments 1,178 24,488 9,354 7,232 -- -- -- --
Forfeitures -- -- -- -- -- -- -- 1,737
-------------------------------------------------------------------------------------------------
Total deductions 1,178 24,488 9,354 7,232 -- -- -- 1,737
Net increase (decrease) during
year 4,872 159,454 (3,366) (8,420) 230,573 14,808 25,034 (70,125)
Net assets available for benefits,
beginning of year 62,470 324,125 17,981 11,942 -- -- -- 70,125
-------------------------------------------------------------------------------------------------
Net assets available for benefits,
end of year $ 67,342 $ 483,579 $ 14,615 $ 3,522 $ 230,573 $ 14,808 $ 25,034 $ --
=================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Non-
participant
Participant directed directed
-------------------------- ------------
American Gauranteed
Participant Ecology Interest
Note Rec Common Account Total
-------------------------- ------------ ------------
<S> <C> <C> <C> <C>
Additions
Investment income (loss)
Net appreciation (loss) $ -- $ 3,612 $ -- $ 1,006,272
Interest 29,035 -- -- 33,597
Dividends -- -- -- 43,463
------------------------------------------------------
Subtotal 29,035 3,612 -- 1,083,332
Contributions
Employer -- -- -- 205,104
Employee -- -- -- 517,137
------------------------------------------------------
Subtotal
-- -- -- 722,241
------------------------------------------------------
Interfund transfers 89,588 11,593 (363,915) --
------------------------------------------------------
Total additions 118,623 15,205 (363,915) 1,805,573
Deductions
Withdrawals and benefit payments 15,922 11,829 916,803
Forfeitures -- -- -- 1,737
------------------------------------------------------
Total deductions 15,922 11,829 -- 918,540
------------------------------------------------------
Net increase (decrease) during
year 102,701 3,376 (363,915) 887,033
Net assets available for benefits,
beginning of year 284,630 140,188 363,915 9,120,805
------------------------------------------------------
Net assets available for benefits,
end of year $ 387,331 $ 143,564 $ -- $10,007,838
======================================================
</TABLE>
-16-
<PAGE> 20
SUPPLEMENTAL INFORMATION
<PAGE> 21
AMERICAN ECOLOGY CORPORATION
EIN: 95-3889638
401(k) SAVINGS AND RETIREMENT PLAN AND TRUST
PLAN NUMBER 003
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
December 31, 1998
<TABLE>
<CAPTION>
(e) Current
(a) (b) Identity of Issue (c) Description (d) Cost Value
- ------------------------- --------------- ------------ ---------------
<S> <C> <C> <C>
Manulife Lifestyle Conservative $ 207,226 $ 241,033
Manulife Lifestyle Moderate 43,040 47,771
Manulife Lifestyle Balanced 622,331 730,923
Manulife Lifestyle Growth 1,488,311 1,802,882
Manulife Lifestyle Aggressive 629,407 754,254
Manulife GICS
Maturing December 31, 1998,
with interest rates of 5.21% to 5.30% 44,974 44,974
Maturing December 31, 1999,
with interest rates of 5.55% to 5.66% 6,546 6,581
Maturing December 31, 2000,
with interest rates of 4.30% to 5.75% 25,877 26,075
Maturing December 31, 2001,
with interest rates of 5.60% to 5.85% 2,782 2,830
Maturing December 31, 2002,
with interest rates of 4.60% to 5.80% 863 868
Maturing December 31, 2005,
with interest rates of 5.77% to 5.80% 11,305 11,721
Maturing December 31, 2006,
with interest rates of 6.05% to 6.60% 3,121 3,053
Maturing December 31, 2007
with interest rates of 5.38% to 5.85% 2,747 2,791
Manulife Money Market Conservative 930,104 1,000,645
Vanguard Short Term
Federal Portfolio 4,108 4,310
Manulife High-Quality
Bond Fund Bonds 23,612 27,374
T. Rowe Price Fixed
Spectrum Income Securities 72,546 81,346
</TABLE>
-18-
<PAGE> 22
AMERICAN ECOLOGY CORPORATION
EIN: 95-3889638
401(k) SAVINGS AND RETIREMENT PLAN AND TRUST
PLAN NUMBER 003
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (Continued)
December 31, 1998
<TABLE>
<CAPTION>
(e) Current
(a) (b) Identity of Issue (c) Description (d) Cost Value
- ---------------------------- ----------------- ----------- -------------
<S> <C> <C> <C>
Fidelity Institutional
Retirement Services Advisor High Yield
Company Fund 114,925 121,636
Fidelity Institutional
Retirement Services Advisor Diversified
Company Capital Fund 65,431 67,559
Manulife Balanced Balanced Fund 177,218 189,536
T. Rowe Price
Growth & Income Common Stock 498,464 584,515
Manulife Value Fund Guardian Trust 144,761 164,461
Manulife Mid-Cap
Value Fund Common/Preferred 43,263 45,058
Manulife Index Stock
Fund S&P's 500 Index 178,082 255,566
Manulife Capital Growth Stock Fund 84,922 119,634
Manulife Growth Plus Stock Fund 92,634 129,754
Manulife Selective
Growth Stock Fund 57,432 74,407
Fidelity Institutional
Retirement Services Advisor Growth
Company Opportunities Fund 416,311 570,368
Manulife Equity
Income Fund Stock Fund 4,544 4,943
Franklin Balance Sheet
Investment Fund Stock Fund 11,723 12,320
</TABLE>
-19-
<PAGE> 23
AMERICAN ECOLOGY CORPORATION
EIN: 95-3889638
401(k) SAVINGS AND RETIREMENT PLAN AND TRUST
PLAN NUMBER 003
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (Continued)
December 31, 1998
<TABLE>
<CAPTION>
(e) Current
(a) (b) Identity of Issue (c) Description (d) Cost Value
- ------------------------- ------------------ ----------- --------------
<S> <C> <C> <C>
Fidelity Institutional
Retirement Services Advisor Contrafund 463,782 666,054
Company
Templeton Funds, Inc. Foreign Fund 116,810 115,589
T. Rowe Price International Stock 100,875 117,104
AIM Constellation Mid-cap Growth 311,504 402,716
PBHG Growth Fund 203,945 206,819
Manulife Emerging
Growth Stock Fund 59,836 67,342
T. Rowe Price
Science & Technology Fund 351,412 483,579
Mutual Discovery
Fund Stock Fund 14,635 14,615
Templeton Developing
Markets Plus Foreign 4,360 3,522
Domini Social Equity Fund Stock Fund 217,005 230,573
Founders Growth Fund Stock Fund 14,091 14,808
Lord Abbett Developing
Growth Fund Stock Fund 22,940 25,034
Borrower Participant loans
9.25%-9.5% -- 387,331
</TABLE>
-20-
<PAGE> 24
AMERICAN ECOLOGY CORPORATION
EIN: 95-3889638
401(k) SAVINGS AND RETIREMENT PLAN AND TRUST
PLAN NUMBER 003
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (continued)
December 31, 1998
<TABLE>
<CAPTION>
(e) Current
(a) (b) Identity of Issue (c) Description (d) Cost Value
- -------------------------- ------------------- ------------ -------------
<S> <C> <C> <C>
* American Ecology
Corporation Common Stock 121,248 143,564
------------ -------------
TOTAL ASSETS HELD FOR INVESTMENT
PURPOSES $ 8,011,053 $ 10,007,838
============ =============
</TABLE>
- -----------
*Known party in interest
-21-
<PAGE> 25
American Ecology Corporation
EIN: 95-3889638
401(k) SAVINGS AND RETIREMENT PLAN
AND TRUST Item 27d - Schedule of
Reportable Transactions
Plan Number 003
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
(h) Current Value
of asset (i) Net
(c) Purchase (d) Selling (g) Cost of at date of Gain
(a) Identity of Party Involved (b) Description of asset 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-Balanced $ - $ 930,900 $ 803,981 $ 930,900 $126,919
Manulife Financial Savings
& Retirement Services Lifestyle-Growth $ 464,039 $ - $ 464,039 $ - $ -
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 assets as of January 1, 1998. There were no category (i), (ii) or (iv) reportable transactions during 1998.
</TABLE>
-22-
