US Ecology, Inc. (NASDAQ:ECOL) Q2 2020 Earnings Conference Call - Final Transcript
Aug 07, 2020 • 10:00 am ET
by 4% growth in our Environmental Services segment and 4% growth in our Field and Industrial Services segment compared to the first six months of 2019. In addition to revenue growth, we were able to expand our gross margin by 68 basis points, which drove adjusted EBITDA to $64.4 million for the first six months of 2020, which was up 5% over the same period last year.
Turning to Slide 15. We exited the quarter with a strong balance sheet and strong liquidity. We had cash of $122.5 million and net borrowings of $739 million at June 30th, 2020. This was an improvement over our balance sheet at March 31st, 2020. Our operating cash flow increased to $59.5 million in the first six months of 2020, up 53% from $38.9 million in the first six months of 2019, driving our adjusted free cash flow up 86% to $34.6 million compared to $18.6 million in the first six months of 2019.
Looking at our overall debt position at June 30th, 2020, we had approximately $69 million of available capacity on our revolving line of credit in addition to the cash on hand. Our total outstanding debt is $861.5 million, which includes $448 million for our Term Loan B facility that matures in 2026 with only 1% required amortization or $4.5 million per year. The overall current average cash interest rate on our debt is approximately 3%. Our $500 million revolving credit facility has two financial covenants, a leverage ratio of our total outstanding debt and capital leases to our trailing 12-month bank calculated adjusted EBITDA and an interest coverage ratio.
As Jeff mentioned, in June 2020, we entered into an amendment of our credit agreement to temporarily increase the leverage ratio from 4 times to up to 5.5 times depending on the quarter, before returning back to the 4 times level by the end of the first quarter of 2022. Our leverage ratio per the bank calculation at June 30th, 2020 was approximately 3.8 times under the original 4 times level.
Overall, despite the current market conditions and the COVID-19 pandemic, our solid liquidity and strong balance sheet will allow us to continue to operate the business with the long-term focus and position us for a strong exit from the pandemic.
With that, I'll turn the call back to Jeff.
Thank you, Eric. In summary, I'm very pleased with the quarterly results given the unprecedented conditions facing US Ecology and the world. The core legacy US Ecology business really demonstrates the resiliency of its collection of assets and services. NRC's businesses that are tied to the industrial markets held up well and their emergency response expertise opened up new decontamination services that are in high demand today. The NRC businesses that service the customers in the energy sector frankly got dealt a tough hand, one that goes beyond normal market cycles.
I am pleased to see how our teams have rapidly redirected those business lines taking costs out and prepare for