Table 1
ENERGYSOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands, except per share data)
For the Quarter
Ended March 31,
2008 2007
---------- ----------
Revenues $ 501,753 $ 114,151
Cost of revenues 428,770 83,357
---------- ----------
Gross profit 72,983 30,794
Selling, general and administrative expenses 28,590 28,328
---------- ----------
Income from operations 44,393 2,466
Interest expense (11,660) (15,370)
Other income (expenses), net (2,061) 148
---------- ----------
Income (loss) before minority interests and
income taxes 30,672 (12,756)
Minority interests (195) -
Income tax (expense) benefit (11,184) 2,412
---------- ----------
Net income (loss) $ 19,293 $ (10,344)
========== ==========
Net income per share:
Basic $ 0.22
Diluted $ 0.22
Number of shares used in per share calculations:
Basic 88,303,500
Diluted 88,310,022
Table 2
ENERGYSOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
March 31, December 31,
2008 2007
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 38,086 $ 36,366
Accounts receivable, net of allowance for
doubtful accounts 369,447 366,083
Other current assets 135,452 103,233
----------- -----------
Total current assets 542,985 505,682
Property, plant and equipment, net 107,230 110,688
Goodwill 526,077 526,040
Other intangible assets, net 377,474 383,812
Other noncurrent assets 111,338 98,728
----------- -----------
Total assets $ 1,665,104 $ 1,624,950
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 1,509 $ 1,557
Accounts payable 138,009 155,663
Accrued expenses and other current
liabilities 271,657 233,588
Other current liabilities 52,184 45,135
----------- -----------
Total current liabilities 463,359 435,943
Long-term debt, less current portion 585,458 605,410
Other noncurrent liabilities 192,678 178,206
----------- -----------
Total liabilities 1,241,495 1,219,559
----------- -----------
Minority interests 604 68
Commitments and contingencies
Stockholders' equity 423,005 405,323
----------- -----------
Total liabilities and stockholders' equity $ 1,665,104 $ 1,624,950
=========== ===========
Table 3
ENERGYSOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
For the Quarter
Ended March 31,
2008 2007
---------- ----------
Cash Provided by Operating Activities $ 25,664 $ 32,462
---------- ----------
Investing Activities
Purchases of businesses, net of cash acquired - (15,110)
Purchases of property, plant and equipment (1,280) (1,743)
---------- ----------
Cash Used in Investing Activities (1,280) (16,853)
---------- ----------
Financing Activities
Net borrowings (repayments) of long-term debt (20,000) (12,000)
Dividends/distributions to shareholders (2,208) (2,633)
Other items (527) (2,836)
---------- ----------
Cash Provided by (Used in) Financing Activities (22,735) (17,469)
---------- ----------
Effect of Exchange Rate on Cash 71 66
---------- ----------
Increase (Decrease) in Cash and Cash Equivalents $ 1,720 $ (1,794)
========== ==========
Amortization of Intangible Assets $ 7,197 $ 4,803
========== ==========
Depreciation $ 4,621 $ 4,571
========== ==========
Table 4
ENERGYSOLUTIONS, INC.
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND NET INCOME (LOSS)
BEFORE THE IMPACT OF AMORTIZATION OF INTANGIBLE ASSETS (UNAUDITED)
(Dollars in thousands, except per share data)
For the Quarter
Ended March 31,
2008 2007
---------- ----------
Reconciliation of net income (loss) to EBITDA:
Net income (loss) $ 19,293 $ (10,344)
Interest expense 11,660 15,370
Income tax expense (benefit) 11,184 (2,412)
Depreciation expense 4,621 4,571
Amortization of intangible assets 7,197 4,803
---------- ----------
EBITDA $ 53,955 $ 11,988
========== ==========
Reconciliation of net income (loss) to net income
(loss) before the impact of amortization of
intangible assets:
Net income (loss) $ 19,293 $ (10,344)
Amortization of intangible assets 7,197 4,803
Income tax expense related to amortization of
intangible assets (2,641) (908)
---------- ----------
Net income (loss) before the impact of
amortization of intangible assets $ 23,849 $ (6,449)
========== ==========
Net income before the impact of amortization of
intangible assets per share:
Basic $ 0.27
Diluted $ 0.27
Number of shares used in per share calculations:
Basic 88,303,500
Diluted 88,310,022
The Company defines EBITDA as earnings before interest expense, income
taxes, depreciation and amortization. The Company uses EBITDA to facilitate
a comparison of its operating performance on a consistent basis from period
to period that, when viewed with its GAAP results and the above
reconciliation, management believes it provides a more complete
understanding of factors and trends affecting its business than GAAP
measures alone. EBITDA assists management in comparing its operating
performance on a consistent basis because it removes the impact of its
capital structure (primarily interest charges), asset base (primarily
depreciation and amortization) and items outside the control of its
management team (taxes) from its results of operations. EBITDA should not
be considered as a substitute for net income or income from operations, as
determined in accordance with GAAP. EBITDA is not defined by GAAP, and you
should not consider it in isolation or as a substitute for analyzing the
Company's results as reported under GAAP.
The Company defines net income before the impact of amortization of
intangible assets as net income plus amortization expense of intangible
assets, net of the related income tax expense of these items. Net income
before the impact of amortization of intangible assets and net income
before the impact of amortization of intangible assets per share are not
computed in accordance with GAAP. These non-GAAP measures may be useful to
investors seeking to compare the operating performance on a consistent
basis from period to period that, when viewed with its GAAP results and the
above reconciliation, management believes provides a more complete
understanding of factors and trends affecting the Company's business than
GAAP measures alone. Net income before the impact of amortization of
intangible assets and net income before the impact of amortization of
intangible assets per share should not be considered as a substitute for
net income or net income per share, as determined in accordance with GAAP.
Net income before the impact of amortization of intangible assets and net
income before the impact of amortization of intangible assets per share are
not defined by GAAP, and you should not consider them in isolation or as a
substitute for analyzing the Company's results as reported under GAAP.
Table 5
ENERGYSOLUTIONS, INC.
REPORTING SEGMENT INFORMATION (UNAUDITED)
(Dollars in thousands)
For the Quarter
Ended March 31,
2008 2007
--------- ---------
Revenues
Federal Services $ 44,587 $ 34,927
Commercial Services 30,595 25,341
LP&D 54,115 53,883
International 372,456 -
--------- ---------
Total Revenues $ 501,753 $ 114,151
========= =========
Gross Profit and Margin
Federal Services $ 8,116 18.2% $ 8,672 24.8%
Commercial Services 11,580 37.8% 4,821 19.0%
LP&D 19,028 35.2% 17,301 32.1%
International Operations 34,259 9.2% -
--------- ---------
Total Gross Profit $ 72,983 14.5% $ 30,794 27.0%
========= =========
Income from Operations and Margin
Federal Services $ 6,348 14.2% $ 6,220 17.8%
Commercial Services 9,644 31.5% 61 0.2%
LP&D 16,324 30.2% 15,104 28.0%
International 30,105 8.1% -
--------- ---------
Total Income from Operations before
corporate unallocated items 62,421 12.4% 21,385 18.7%
Corporate unallocated items (18,028) (18,919)
--------- ---------
Total Income from Operations $ 44,393 $ 2,466
========= =========
Contact Information: For more information, please contact: Tim Barney (801) 649-2233