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Second Quarter 2012 Summary
Second Quarter 2012 Results
Revenue for the second quarter of 2012 decreased to
EBITDA and Adjusted EBITDA for the second quarter of 2012 were
Gross profit for the second quarter of 2012 increased to
Business Segments - Second Quarter 2012
The results of the Company's two business groups are presented in Table 5 in the accompanying financial tables.
Income from operations for the second quarter of 2012 totaled
Commercial Services
Revenue from Commercial Services operations in our
Gross profit for the second quarter of 2012 increased
Logistics, Processing and Disposal
Revenue from the Logistics, Processing and Disposal ("LP&D") operations in our
International
Revenue from the International operations in our
Income from operations for the
Outlook and Guidance
"We continue to make progress on a number of fronts to improve our margins and increase our profitability," said
Forward-Looking Statements
Statements in this earnings release regarding future financial and operating results and any other statements about the Company's future expectations, beliefs or prospects expressed by management constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding the Company's outlook for 2012, strategic initiatives, and expectations for Adjusted EBITDA. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: (a) the uncertainty regarding the outcome and timing of contract negotiations with the DOE, (b) uncertain and weak economic conditions globally, including decreased credit availability for our customers and the decisions of individual customers
to retain cash and reduce credit market exposure, (c) decreased tax revenue combined with increased demands on federal funding allocations reducing funds available for existing or proposed federal projects that we have been awarded or on which we would bid, (d) current regulatory initiatives, including the importation of nuclear waste into the U.S. and the disposal and storage of depleted uranium, (e) the weakening of the pound sterling and the related currency translation impact on our business if the currency continues to weaken, (f) adverse public reaction that could lead to increased regulation or limitations on our activities, (g) uncertainty regarding the impact on our business of increased regulatory scrutiny of the nuclear waste industry in the U.S. and
Conference Call Details
The
Hosting the call will be
To participate in the event by telephone, please dial (877) 251-1860 five to ten minutes prior to the start time (to allow time for registration) and reference the conference pass-code 11152809. International callers should dial (253) 237-1173 and enter the same pass-code.
A replay of the call will be available for one week beginning on
The conference call will be broadcast live over the Internet and can be accessed by all interested parties through the company's web site at www.energysolutions.com by clicking on the "Investor Relations" tab at the top of the home page. An audio replay of the event will be archived on
About EnergySolutions, Inc.
Table 1
ENERGYSOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(dollars in thousands, except per share amounts)
For the Quarter For the Six Month Period
Ended June 30 Ended June 30
------------------------ ------------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------
Revenue $ 392,621 $ 403,673 $ 883,313 $ 925,940
Cost of revenue (356,718) (371,006) (815,730) (843,972)
----------- ----------- ----------- -----------
Gross profit 35,903 32,667 67,583 81,968
Selling, general and
administrative expenses (34,220) (27,913) (67,882) (63,992)
Impairment of goodwill - - - -
Equity in income of
unconsolidated joint
ventures 2,406 2,881 3,136 4,281
----------- ----------- ----------- -----------
Income from operations 4,089 7,635 2,837 22,257
Interest expense (17,495) (18,599) (35,186) (36,649)
Other income, net 15,443 17,150 33,725 32,578
----------- ----------- ----------- -----------
Income before income
taxes and
noncontrolling
interests 2,037 6,186 1,376 18,186
Income tax (expense)
benefit 3,370 (5,550) 3,366 (6,732)
----------- ----------- ----------- -----------
Net income 5,407 636 4,742 11,454
Less: Net income (loss)
attributable to
noncontrolling
interests 37 (132) 33 (1,041)
----------- ----------- ----------- -----------
Net income attributable
to EnergySolutions $ 5,444 $ 504 $ 4,775 $ 10,413
=========== =========== =========== ===========
Net income attributable
to EnergySolutions per
share:
Basic $ 0.06 $ 0.01 $ 0.05 $ 0.12
Diluted $ 0.06 $ 0.01 $ 0.05 $ 0.12
Number of shares used in
per share calculations:
Basic 89,249,342 88,770,691 89,157,971 88,740,054
Diluted 89,249,363 88,775,506 89,158,079 88,779,538
Table 2
ENERGYSOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
June 30, December 31,
ASSETS 2012 2011
------------ ------------
Current assets: (unaudited)
Cash and cash equivalents $ 71,278 $ 77,213
Accounts receivable, net of allowance for
doubtful accounts 300,177 302,203
Nuclear decommissioning trust fund investments 146,770 174,270
Other current assets 245,867 281,822
------------ ------------
Total current assets 764,092 835,508
Property, plant & equipment, net 127,821 131,460
Goodwill 306,885 306,358
Other intangible assets,net 248,558 260,879
Nuclear decommissioning trust fund investments 483,922 523,326
Restricted cash and decontamination and
decommissioning deposits 332,112 332,918
Deferred Costs 434,113 465,577
Other noncurrent assets 199,257 164,758
------------ ------------
Total assets $ 2,896,760 $ 3,020,784
============ ============
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 2,646 $ -
Accounts payable 108,711 140,951
Accrued expenses and other current liabilities 201,208 230,698
Facility and equipment decontamination and
decommissioning liabilities 137,214 160,520
Unearned revenue, current portion 151,639 159,112
------------ ------------
Total current liabilities 601,418 691,281
Long-term debt, less current portion 811,325 812,734
Facility and equipment decontamination and
decommissioning liabilities 571,765 603,381
Unearned revenue 444,715 469,497
Other noncurrent liabilities 173,716 158,634
------------ ------------
Total liabilities 2,602,939 2,735,527
------------ ------------
EnergySolutions stockholders' equity 293,300 284,546
Noncontrolling interests 521 711
------------ ------------
Total equity 293,821 285,257
------------ ------------
Total liabilities and equity $ 2,896,760 $ 3,020,784
------------ ------------
Table 3
ENERGYSOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
For the Six Month
Period Ended June 30
--------------------
2012 2011
--------- ---------
Cash Provided (Used) by Operating Activities $ (1,996) $ 4,953
--------- ---------
Investing Activities
Purchases of property, plant and equipment (11,116) (10,221)
Purchase and sale of investments in nuclear
decommissioning trust fund 2,209 1,077
Purchases of intangible assets - (610)
Proceeds from sale of property, plant and equipment 5,195 120
--------- ---------
Cash Used in Investing Activities (3,712) (9,634)
--------- ---------
Financing Activities
Repayments of long-term debt - (2,800)
Net borrowings under revolving credit facility - -
Dividends to stockholders - -
Other items (561) (269)
--------- ---------
Cash Used in Financing Activities (561) (3,069)
--------- ---------
Effect of Exchange Rate on Cash 334 1,135
--------- ---------
Decrease in Cash and Cash Equivalents $ (5,935) $ (6,615)
========= =========
Amortization of Intangible Assets $ 12,930 $ 13,104
========= =========
Depreciation $ 9,821 $ 11,183
========= =========
Table 4
ENERGYSOLUTIONS, INC.
GAAP to Non-GAAP Reconciliation
(dollars in thousands, except per share amounts)
For the Six Month
For the Quarter Period
Ended June 30 Ended June 30
2012 2011 2012 2011
-------- -------- -------- --------
Reconciliation of net income
attributable to EnergySolutions to
EBITDA:
Net income attributable to
EnergySolutions $ 5,444 $ 504 $ 4,775 $ 10,413
Interest expense 17,495 18,599 35,186 36,649
Interest rate swap loss (gain) - - - -
Income tax expense (benefit) (3,370) 5,550 (3,366) 6,732
Depreciation expense 4,748 5,485 9,821 11,183
Impairment of goodwill - - - -
Amortization of intangible assets 6,472 6,546 12,930 13,104
-------- -------- -------- --------
EBITDA $ 30,789 $ 36,684 $ 59,346 $ 78,081
======== ======== ======== ========
Accretion expense 7,494 7,981 14,982 15,962
Nuclear decommissioning trust fund
earnings (13,990) (17,100) (32,404) (32,773)
Equity-based compensation 2,056 2,865 2,722 5,101
Restructuring costs 6,146 - 6,146 2,013
-------- -------- -------- --------
Adjusted EBITDA $ 32,495 $ 30,430 $ 50,792 $ 68,384
-------- -------- -------- --------
The Company defines EBITDA as net income (loss) attributable to
The Company's measurement of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. The Company has included information concerning EBITDA and Adjusted EBITDA in this release because they are used by management to measure operating performance and because the Company believes that such information is often used by certain investors as measures of a company's historical performance and for modeling.
EBITDA and Adjusted EBITDA have limitations as analytical tools, and investors should not consider them in isolation, or as a substitute for analysis of the Company's operating results or cash flows as reported under GAAP. Some of these limitations are:
Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to the Company to invest in the growth of its business. The Company compensates for these limitations by relying primarily on its GAAP results and using EBITDA and Adjusted EBITDA only for supplemental purposes.
Table 5
ENERGYSOLUTIONS, INC.
REPORTING SEGMENT INFORMATION (UNAUDITED)
(dollars in thousands)
For the Six Month
Period
For the Quarter
Ended June 30, Ended June 30
2012 2011 2012 2011
--------- --------- --------- ---------
Revenue
Government Group $ 38,383 $ 54,409 $ 80,772 $ 133,759
Global Commercial Group
Commercial Services 39,522 47,755 80,479 94,292
LP&D 48,972 62,432 93,361 116,698
International 265,744 239,077 628,701 581,191
--------- --------- --------- ---------
Total Revenue $ 392,621 $ 403,673 $ 883,313 $ 925,940
========= ========= ========= =========
Gross Profit
Government Group $ 7,631 $ 4,009 $ 6,345 $ 10,117
Global Commercial Group
Commercial Services 5,187 3,670 6,726 8,785
LP&D 11,025 17,668 15,969 29,470
International Operations 12,060 7,320 38,543 33,596
--------- --------- --------- ---------
Total Gross Profit $ 35,903 $ 32,667 $ 67,583 $ 81,968
========= ========= ========= =========
Income from Operations
Government Group $ 4,809 $ 437 $ (290) $ 2,359
Global Commercial Group 18,333 16,852 40,738 46,217
--------- --------- --------- ---------
Group Operating Income 23,142 17,289 40,448 48,576
Corporate selling, general and
administrative expenses (21,459) (12,535) (40,747) (30,600)
Impairment of goodwill - - - -
Equity in income of
unconsolidated joint ventures 2,406 2,881 3,136 4,281
--------- --------- --------- ---------
Total Income from Operations $ 4,089 $ 7,635 $ 2,837 $ 22,257
--------- --------- --------- ---------
For more information, please contact:Richard Putnam EnergySolutions, Inc. (801) 649-2000 Email Contact
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