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US Ecology, Inc.Q3 2016 Earnings Conference Call

October 28, 2016

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Today’s Hosts

Jeff Feeler

Chairman & Chief Executive Officer

Eric Gerratt

Executive Vice President & Chief Financial Officer

Steve Welling

Executive Vice President of Sales and Marketing

Simon Bell

Executive Vice President of Operations

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During the course of this presentation the Company will be making forward-looking statements (as such term is defined in the PrivateSecurities Litigation Reform Act of 1995) that are based on our current expectations, beliefs and assumptions about the industry andmarkets in which US Ecology, Inc. and its subsidiaries operate. Such statements may include, but are not limited to, statements aboutthe Company's ability to integrate its acquisition of EQ—The Environmental Quality Company (EQ), expected synergies from thetransaction, projections of the financial results of the combined company and other statements that are not historical facts. Suchstatements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company todiffer materially from the results expressed or implied by such statements, including general economic and business conditions,conditions affecting the industries served by US Ecology, EQ and their respective subsidiaries, conditions affecting our customers andsuppliers, competitor responses to our products and services, the overall market acceptance of such products and services, theintegration and performance of acquisitions (including the acquisition of EQ) and other factors disclosed in the Company's periodicreports filed with the Securities and Exchange Commission. For information on other factors that could cause actual results to differmaterially from expectations, please refer to US Ecology, Inc.'s December 31, 2015 Annual Report on Form 10-K and other reports filedwith the Securities and Exchange Commission. Many of the factors that will determine the Company's future results are beyond theability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflectmanagement's views only as of the date such statements are made. The Company undertakes no obligation to revise or update anyforward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events orotherwise.

Important assumptions and other important factors that could cause actual results to differ materially from those set forth in theforward-looking information include the replacement of non-recurring event clean-up projects, a loss of a major customer, our abilityto permit and contract for timely construction of new or expanded disposal cells, our ability to renew our operating permits or leaseagreements with regulatory bodies, loss of key personnel, compliance with and changes to applicable laws, rules, or regulations,access to insurance, surety bonds and other financial assurances, a deterioration in our labor relations or labor disputes, our ability toperform under required contracts, failure to realize anticipated benefits and operational performance from acquired operations,adverse economic or market conditions, government funding or competitive pressures, incidents or adverse weather conditions thatcould limit or suspend specific operations, access to cost effective transportation services, fluctuations in foreign currency markets,lawsuits, our willingness or ability to pay dividends, implementation of new technologies, limitations on our available cash flow as aresult of our indebtedness and our ability to effectively execute our acquisition strategy and integrate future acquisitions.

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Safe Harbor

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Highlights

Financial Review― Q3 2016

― Year-to-Date 2016

― Financial Position, Cash Flow & Return Metrics

2016 Business Outlook

Questions & Comments

Appendix: Financial Results & Reconciliations

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Agenda

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• Continued industrial sector headwinds and challenging market

dynamics

• Event Business deferment and softer market conditions

• Positive Base Business growth of 4% over same period last year,

in line with expectations

• Base Business grew 3% sequentially from Q2-16

• Field and Industrial Services (“FIS”) had solid performance with

year-over-year growth and margin expansion

• Focused on long term strategic positioning, growing base

business and expanding capabilities

• Closed on Los Angeles area TSDF acquisition on October 1st

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Q3-16 Highlights

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Financial

Review

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Q3-16 Financial Review

70%

30%

Q3 ‘16 Revenue by Segment

ES

FIS

62%

38%

Q3 ‘15 Revenue by Segment

ES

FIS

• Total revenue $124.8 million compared with $148.4 million last year

• ES revenue $87.8 million, down from $91.9 million in prior year

― 4% lower treatment and disposal revenue

― 9% lower service (transportation & logistics) revenue

― Lower revenues from the chemical manufacturing

and government industry groups, partially offset by higher revenues from the general manufacturing and “Other” industry groups

― Base business up 4% compared to the prior year― Event business down 24% compared to prior year

from cycling the completion of large east coast cleanup project and nuclear fuels fabrication cleanup

• FIS revenue $37.0 million, down from $56.5 million in prior year

− Allstate revenue of $20.1 million in Q3-15

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Q3-16 Financial ReviewPercent Change

Q3 '16 Q3 '15 Q3 '16 vs. Q3 '15

Metal Manufacturing 16% 14% 7%

General Manufacturing 16% 12% 29%

Broker / TSDF 15% 14% 3%

Chemical Manufacturing 12% 16% -32%

Refining 11% 11% 1%

Government 5% 8% -40%

Utilities 4% 4% -15%

Mining and E&P 3% 3% 7%

Transportation 2% 3% -13%

Waste Management & Remediation 2% 2% 21%

Other 14% 13% 7%

Base Event

Metal Manufacturing 0% 155%

General Manufacturing 10% 105%

Broker / TSDF 2% 111%

Chemical Manufacturing -4% -59%

Refining 39% -72%

Government -5% -53%

Utilities 18% -38%

Mining and E&P -6% 28167%

Transportation -8% -39%

Waste Management & Remediation -11% 515%

Other 0% 77%

Environmental Services T&D Revenue by Industry

Percent of Total

Environmental Services T&D Revenue by Industry

% Change - Q3 '16 vs. Q3 '15

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• Gross profit of $39.4 million, down from $45.9 million in Q3-15

― ES gross profit of $33.6 million, down from $35.6 million in Q3-15

T&D margin of 43.1%, down from 43.6% in Q3-15

― FIS gross profit of $5.7 million, down from $10.4 million in Q3-15

Allstate contributed $4.9 million of gross profit in Q3-15

• SG&A of $18.4 million compared with $23.5 million in Q3-15

― Q3-16 SG&A includes $63,000 of business development expenses, compared to $150,000 in Q3-15

― Allstate contributed $3.2 million of SG&A in Q3-15

• Operating income of $20.9 million, down from $22.4 million in Q3-15

― Allstate contributed $1.7 million of operating income in Q3-15

• Interest expense of $4.3 million, down from $5.1 million in Q3-15

― Lower debt levels

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Q3-16 Financial Review

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• Effective tax rate decreased to 38.3% versus 40.9% in Q3-15

― Higher proportion of earnings from Canadian operations in Q3-16, taxed at a lower corporate tax rate

• Net income of $10.1 million, or $0.46 per diluted share, up from $9.9 million, or $0.46 per diluted share, in Q3-15

― Q3-15 net income reflects $1.1 million of net income from Allstate

• Adjusted EPS1

of $0.47 per share, up from $0.45 per share in Q3-15

• Adjusted EBITDA1

of $31.7 million, down 6% from $33.8 million in Q3-15

― Pro Forma adjusted EBITDA1

of $31.7 million compared with $31.6 million in Q3-15

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Q3-16 Financial Review

1See definition and reconciliation of adjusted earnings per share, adjusted EBITDA , and Pro Forma adjusted EBITDA on pages 17-24 of this presentation or attached as Exhibit A to our earnings release filed with the SEC on Form 8-K

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• Total revenue of $360.5 million, compared with $424.8 million last year

― Allstate contributed $51.0 million of revenue during the first nine months of 2015

• ES Segment revenue was $252.1 million, compared with $266.3 million last year

• FIS Segment revenue was $108.4 million, compared with $158.5 million last year

― Allstate contributed $51.0 million of revenue during the first nine months of 2015

• Net income was $26.6 million, or $1.22 per diluted share, up from $17.9 million, or $0.82 per diluted share, in the first nine months of 2015

― Net income for the first nine months of 2015 reflects $6.7 million of impairment charges

• Adjusted EBITDA1 was $85.5 million, compared with $92.4 million last year

― Allstate contributed $4.6 million of Adjusted EBITDA during the first nine months of 2015

• Pro Forma Adjusted EBITDA1, which excludes Allstate and business development expenses, was $86.0 million, compared with $90.0 million last year

• Adjusted EPS1

of $1.16 per share, down from $1.21 per share last year

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YTD Financial Review

1See definition and reconciliation of adjusted earnings per share, adjusted EBITDA , and Pro Forma adjusted EBITDA on pages 17-24 of this presentation or attached as Exhibit A to our earnings release filed with the SEC on Form 8-K

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Financial Position, Cash Flow & Return Metrics

• Exited quarter with cash of $6.4 million

• Net borrowings on credit agreement of $279.0 million

• Working Capital = $55.8 million

• YTD Cash generated from operations = $56.4 million

• YTD Capital expenditures = $22.6 million

• YTD Dividends paid = $11.8 million

• YTD Payments on long-term debt and capital leases = $17.3 million

Return Metrics:

• Return on total capital = 6.4%

• Return on total assets = 4.2%

• Return on total equity = 13.0%

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2016 Business Outlook

• Market choppiness and industry headwinds resulting in lower

expectations for 2016 results

• Event Business largest contributor to revision due to continued project

deferrals and softer market conditions

• Revised guidance for full year 2016

― Earnings Per Share1

estimated between $1.54 to $1.65 per diluted

share

― Adjusted EBITDA1

estimated to range from $113 million to $118

million

1Guidance excludes non-cash foreign currency translation gains or losses, gain/loss on divestiture and business development expenses

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We invite your questions &

comments!

Questions and

Comments

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We invite your questions &

comments!

Appendix

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1616

Allstate Power Vac Quarterly Income Statements: 2015For the Year Ended

March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 December 31, 2015

Revenue 13,935$ 16,925$ 20,139$ 8,056$ 59,055$

Direct operating costs 11,293 13,666 15,249 6,480 46,688

Gross profit 2,642 3,259 4,890 1,576 12,367

Selling, general and administrative expenses 3,040 3,657 3,213 1,039 10,949

Impairment charges - 6,367 - - 6,367

Operating income (398) (6,765) 1,677 538 (4,948)

Other income (expense):

Interest income - - - - -

Interest expense (21) (6) - - (27)

Foreign currency loss - - - - -

Other 33 33 33 (531) (432)

Total other income (expense) 12 27 33 (531) (459)

Income before income taxes (386) (6,738) 1,710 7 (5,407)

Income tax expense (benefit) (147) (2,560) 650 3 (2,054)

Net income (239)$ (4,178)$ 1,060$ 4$ (3,353)$

Earnings per share:

Basic ( 0.01 )$ ( 0.19 )$ 0.05$ -$ ( 0.16 )$

Diluted ( 0.01 )$ ( 0.19 )$ 0.05$ -$ ( 0.16 )$

Shares used in earnings per share calculation:

Basic 21,583 21,617 21,655 21,676 21,637

Diluted 21,689 21,748 21,749 21,748 21,733

Net Income (239)$ (4,178)$ 1,060$ 4$ (3,353)$

Income tax expense (147) (2,560) 650 3 (2,055)

Interest expense 21 6 - - 27

Interest income - - - - -

Foreign currency loss - - - - -

Other income (33) (33) (33) 531 432

Impairment charges - 6,367 - - 6,367

Depreciation and amortization of plant and equipment 899 967 377 - 2,243

Amortization of intangible assets 569 569 235 - 1,373

Stock-based compensation 12 20 24 (35) 21

Accretion and non-cash adjustments of closure & post-

closure obligations - - - - -

Adjusted EBITDA 1,082$ 1,158$ 2,313$ 502$ 5,055$

For the Three Months Ended

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US Ecology reports adjusted EBITDA, Pro Forma adjusted EBITDA and adjusted earnings per diluted share 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, Pro Forma adjusted EBITDA and

adjusted earnings per diluted share 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 other companies. Items excluded from adjusted EBITDA, Pro Forma adjusted EBITDA and adjusted earnings per diluted share are significant components in understanding and assessing financial performance.

Adjusted EBITDA, Pro Forma adjusted EBITDA and adjusted earnings per diluted share should not be considered in isolation or as an alternative to, or substitute for, net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Adjusted EBITDA, Pro Forma adjusted EBITDA and adjusted earnings per diluted share have limitations as analytical tools and should not be considered in isolation or a substitute for analyzing our results as reported under GAAP.

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Non-GAAP Financial Measures

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Adjusted EBITDA

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, non-cash impairment charges and other income/expense, which are not considered part of usual business operations.

Pro Forma Adjusted EBITDA

The Company defines Pro Forma adjusted EBITDA as adjusted EBITDA (see definition above) less the adjusted EBITDA related to thedivested Allstate business, plus business development expenses incurred during the period. We believe Pro Forma adjusted EBITDAis helpful in understanding our business and how it relates to our 2016 guidance which includes neither the divested Allstatebusiness nor business development expenses.

Adjusted Earnings Per Diluted Share

The Company defines adjusted earnings per diluted share as net income adjusted for the after-tax impact of the gain on sale of divested businesses, non-cash foreign currency translation gains or losses, the after-tax impact of business development costs, and the after-tax impact of the divested Allstate business, divided by the number of diluted shares used in the earnings per share calculation.

Impairment charges excluded from the earnings per diluted share calculation are related to the Company’s decision to explore strategic alternatives for our industrial services business. The foreign currency translation gains or losses 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 our 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. Business development costs relate to expenses incurred to evaluate businesses for potential acquisition or costs related to closing and integrating successfully acquired

businesses.

We believe excluding these non-cash foreign currency movements for intercompany financial instruments and business development costs provides meaningful information to investors regarding the operational and financial performance of the Company.

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Non-GAAP Financial Measures - Definitions

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Financial Results: Q3‘16 vs. Q3‘15

1Includes pre-tax Business Development expenses of $63,000 and $150,000 for the three months ended September 30, 2016 and 2015, respectively

(in t housands, except per share dat a) 2016 2015 $ Change % Change

Revenue $ 124,824 $ 148,414 $ (23,590) -15.9%

Gross profit 39,354 45,940 (6,586) -14.3%

SG&A1

18,439 23,507 (5,068) -21.6%

Operating income1 20,915 22,433 (1,518) -6.8%

Interest expense, net (4,280) (5,064) 784 -15.5%

Foreign currency loss (224) (994) 770 -77.5%

Other income (expense) (19) 387 (406) -104.9%

Income before income taxes 16,392 16,762 (370) -2.2%

Income tax expense 6,278 6,858 (580) -8.5%

Net income $ 10,114 $ 9,904 $ 210 2.1%

Earnings per share:

Basic $ 0.47 $ 0.46 $ 0.01 2.2%

Diluted $ 0.46 $ 0.46 $ - 0.0%

Shares used in earnings per share calculation:

Basic 21,714 21,655

Diluted 21,804 21,749

Three Months Ended September 30,

2020

Financial Results: Q3‘16 vs. Q3‘15

1Includes pre-tax Business Development expenses of $63,000 and $150,000 for the three months ended September 30, 2016 and 2015, respectively.

(in t housands) 2016 2015 $ Change % Change

Adjusted EBITDA / Pro Forma Adjusted EBITDA Reconciliation

Net income 10,114$ 9,904$

Income tax expense 6,278 6,858

Interest expense, net 4,280 5,064

Foreign currency loss 224 994

Other (income) expense 19 (387)

Depreciat ion and amort izat ion 6,454 6,591

Amort izat ion of intangibles 2,651 2,952

Stock-based compensation 605 646

Accret ion and non-cash adjustments

of closure & post-closure obligations 1,031 1,132

Adjusted EBITDA1 31,656 33,754 (2,098)$ -6.2%

EBITDA related to divested Allstate business - (2,313)

Business development expenses 63 150

Pro Forma Adjusted EBITDA 31,719$ 31,591$ 128$ 0.4%

Adjusted EBITDA by Operating Segment:

Environmental Services 37,747$ 38,420$ (673) -1.8%

Field & Industrial Services 4,466 6,435 (1,969) -30.6%

Corporate1

(10,557) (11,101) 544 -4.9%

Total 31,656$ 33,754$ (2,098)$ -6.2%

Three Months Ended September 30,

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Financial Results: Q3‘16 vs. Q3‘15

(in t housands, except per share dat a)

Adjusted Earnings Per Share ReconciliationIncome before

income taxes

Income

tax

Net

income

per

share

Income before

income taxes

Income

tax

Net

income

per

share

As reported 16,392$ (6,278)$ 10,114$ 0.46$ 16,762$ (6,858)$ 9,904$ 0.46$

Adjustments:

Less: Loss on sale of divested businesses 173 (66) 107 - - - - -

Non-cash foreign currency translat ion loss (gain) 276 (106) 170 0.01 1,170 (448) 722 0.04

Plus: Business development costs 63 (24) 39 - 150 (57) 93 -

Plus: Divested Allstate business operating income - - - - (1,710) 650 (1,060) (0.05)

As adjusted 16,904$ (6,474)$ 10,430$ $ 0.47 16,372$ (6,713)$ 9,659$ $ 0.45

Shares used in earnings per diluted share calculat ion 21,804 21,749

Three Months Ended September 30,

2016 2015

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Financial Results: Q3’16 YTD vs. Q3’15 YTD

(in t housands, except per share dat a) 2016 2015 $ Change % Change

Revenue $ 360,493 $ 424,797 $ (64,304) -15.1%

Gross profit 111,468 127,254 (15,786) -12.4%

SG&A1

57,683 71,075 (13,392) -18.8%

Impairment charges - 6,700 (6,700) n/m

Operating income1 53,785 49,479 4,306 8.7%

Interest expense, net (13,060) (16,144) 3,084 -19.1%

Foreign currency gain (loss) 192 (1,769) 1,961 -110.9%

Other income 2,480 1,156 1,324 114.5%

Income before income taxes 43,397 32,722 10,675 32.6%

Income tax expense 16,828 14,815 2,013 13.6%

Net income $ 26,569 $ 17,907 $ 8,662 48.4%

Earnings per share:

Basic $ 1.22 $ 0.83 $ 0.39 47.0%

Diluted $ 1.22 $ 0.82 $ 0.40 48.8%

Shares used in earnings per share calculation:

Basic 21,700 21,619

Diluted 21,780 21,723

Nine Months Ended September 30,

1Includes pre-tax Business Development expenses of $499,000 and $2.1 million for the nine months ended September 30, 2016 and 2015, respectively

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Financial Results: Q3’16 YTD vs. Q3’15 YTD

(in t housands) 2016 2015 $ Change % Change

Adjusted EBITDA / Pro Forma adjusted EBITDA Reconciliation

Net income 26,569$ 17,907$

Income tax expense 16,828 14,815

Interest expense, net 13,060 16,144

Foreign currency (gain) loss (192) 1,769

Other income (2,480) (1,156)

Depreciat ion and amort izat ion 18,561 21,726

Amort izat ion of intangibles 7,907 9,558

Stock-based compensation 2,182 1,736

Accret ion and non-cash adjustments

of closure & post-closure obligations 3,081 3,208

Impairment charges - 6,700

Adjusted EBITDA1 85,516 92,407 (6,891)$ -7.5%

EBITDA related to divested Allstate business - (4,553)

Business development expenses 499 2,124

Pro Forma adjusted EBITDA 86,015$ 89,978$ (3,963)$ -4.4%

Adjusted EBITDA by Operating Segment:

Environmental Services 104,352$ 110,778$ (6,426) -5.8%

Field & Industrial Services 13,267 15,790 (2,523) -16.0%

Corporate1

(32,103) (34,161) 2,058 -6.0%

Total 85,516$ 92,407$ (6,891)$ -7.5%

Nine Months Ended September 30,

1Includes pre-tax Business Development expenses of $499,000 and $2.1 million for the nine months ended September 30, 2016 and 2015, respectively

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Financial Results: Q3’16 YTD vs. Q3’15 YTD

(in t housands, except per share dat a)

Adjusted Earnings Per Share ReconciliationIncome before

income taxes

Income

tax

Net

income

per

share

Income before

income taxes

Income

tax

Net

income

per

share

As reported 43,397$ (16,828)$ 26,569$ 1.22$ 32,722$ (14,815)$ 17,907$ 0.82$

Adjustments:

Less: Gain on sale of divested businesses (2,034) 789 (1,245) (0.06) - - - -

Non-cash foreign currency translat ion (gain) loss (323) 125 (198) (0.01) 1,866 (715) 1,151 0.05

Plus: Business development costs 499 (193) 306 0.01 2,124 (813) 1,311 0.06

Plus: Impairment charges1

- - - - 6,700 - 6,700 0.31

Plus: Divested Allstate business operating income - - - - (953) 362 (591) (0.03)

As adjusted 41,539$ (16,107)$ 25,432$ $ 1.16 42,459$ (15,981)$ 26,478$ $ 1.21

Shares used in earnings per diluted share calculat ion 21,780 21,723

1 Impairment charges were not deductible for income tax purposes

Nine Months Ended September 30,

2016 2015