Table 1
ENERGYSOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands, except per share data)
For the Quarter For the Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Revenues $ 419,453 $ 388,895 $ 1,381,551 $ 664,753
Cost of revenues 363,462 332,758 1,191,466 532,127
----------- ----------- ----------- -----------
Gross profit 55,991 56,137 190,085 132,626
Selling, general and
administrative
expenses 30,779 29,092 89,290 80,432
----------- ----------- ----------- -----------
Income from
operations 25,212 27,045 100,795 52,194
Interest expense (9,204) (21,074) (32,043) (51,785)
Other income
(expenses), net (72) (1,961) (1,891) (1,403)
----------- ----------- ----------- -----------
Income (loss)
before minority
interests and
income taxes 15,936 4,010 66,861 (994)
Minority interests (207) - (907) -
Income tax (expense)
benefit (4,827) (3,786) (23,164) (3,134)
----------- ----------- ----------- -----------
Net income (loss) $ 10,902 $ 224 $ 42,790 $ (4,128)
=========== =========== =========== ===========
Net income per share:
Basic $ 0.12 $ 0.48
Diluted $ 0.12 $ 0.48
Number of shares used
in per share
calculations:
Basic 88,303,500 88,303,500
Diluted 88,312,311 88,310,791
Table 2
ENERGYSOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
September 30, December 31,
ASSETS 2008 2007
------------- -------------
Current assets:
Cash and cash equivalents $ 59,900 $ 36,366
Accounts receivable, net of allowance for
doubtful accounts 241,182 366,083
Other current assets 141,817 103,233
------------- -------------
Total current assets 442,899 505,682
Property, plant & equipment, net 102,571 110,688
Goodwill 526,532 526,040
Other intangible assets, net 363,714 383,812
Other noncurrent assets 142,363 98,728
------------- -------------
Total assets $ 1,578,079 $ 1,624,950
============= =============
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 11,329 $ 1,557
Accounts payable 91,283 155,663
Accrued expenses and other current
liabilities 204,701 233,588
Other current liabilities 41,810 45,135
------------- -------------
Total current liabilities 349,123 435,943
Long-term debt, less current portion 565,427 605,410
Other noncurrent liabilities 209,280 178,206
------------- -------------
Total liabilities 1,123,830 1,219,559
------------- -------------
Minority interests 852 68
Commitments and contingencies
Stockholders' equity 453,397 405,323
------------- -------------
Total liabilities and stockholders'
equity $ 1,578,079 $ 1,624,950
============= =============
Table 3
ENERGYSOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
For the Nine Months
Ended September 30,
2008 2007
--------- ---------
Cash Provided by Operating Activities $ 81,630 $ 112,838
--------- ---------
Investing Activities
Purchases of businesses, net of cash acquired - (196,400)
Purchases of property, plant and equipment (9,731) (5,642)
Other items (318) -
--------- ---------
Cash Used in Investing Activities (10,049) (202,042)
--------- ---------
Financing Activities
Net borrowings (repayments) of long-term debt (30,210) 116,000
Dividends/distributions to shareholders (6,623) (8,918)
Other items (9,649) (10,620)
--------- ---------
Cash Provided by (Used in) Financing Activities (46,482) 96,462
--------- ---------
Effect of Exchange Rate on Cash (1,565) (787)
--------- ---------
Increase in Cash and Cash Equivalents $ 23,534 $ 6,471
========= =========
Amortization of Intangible Assets $ 21,308 $ 17,120
========= =========
Depreciation $ 13,380 $ 14,512
========= =========
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 For the Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
---------- ---------- ---------- ----------
Reconciliation of net
income (loss) to EBITDA:
Net income (loss) $ 10,902 $ 224 $ 42,790 $ (4,128)
Interest expense 9,204 21,074 32,043 51,785
Interest rate swap loss
(gain) 10 524 2,223 486
Income tax expense
(benefit) 4,827 3,786 23,164 3,134
Depreciation expense 4,323 5,411 13,380 14,512
Amortization of intangible
assets 6,930 7,294 21,308 17,120
---------- ---------- ---------- ----------
EBITDA $ 36,196 $ 38,313 $ 134,908 $ 82,909
========== ========== ========== ==========
Reconciliation of net income
(loss) to net income (loss)
before the impact of
amortization of intangible
assets:
Net income (loss) $ 10,902 $ 224 $ 42,790 $ (4,128)
Amortization of intangible
assets 6,930 7,294 21,308 17,120
Income tax expense related
to amortization of
intangible assets (2,235) (2,633) (7,484) (6,181)
---------- ---------- ---------- ----------
Net income (loss) before
the impact of
amortization of
intangible assets $ 15,597 $ 4,885 $ 56,614 $ 6,811
========== ========== ========== ==========
Net income before the impact
of amortization of
intangible assets per share:
Basic $ 0.18 $ 0.64
Diluted $ 0.18 $ 0.64
Number of shares used in per
share calculations:
Basic 88,303,500 88,303,500
Diluted 88,312,311 88,310,791
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 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 For the Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
-------- -------- ---------- --------
Revenues
Federal
Services $ 84,346 $ 39,162 $ 202,057 $111,254
Commercial
Services 19,175 33,569 75,995 97,516
LP&D 66,159 64,036 183,318 187,182
International 249,773 252,128 920,181 268,801
-------- -------- ---------- --------
Total
Revenues $419,453 $388,895 $1,381,551 $664,753
======== ======== ========== ========
Gross Profit
and Margin
Federal
Services $ 13,269 15.7% $ 14,264 36.4% $ 30,491 15.1% $ 33,614 30.2%
Commercial
Services 6,512 34.0% 8,925 26.6% 26,077 34.3% 19,690 20.2%
LP&D 27,675 41.8% 24,587 38.4% 71,937 39.2% 69,984 37.4%
International
Operations 8,535 3.4% 8,361 3.3% 61,580 6.7% 9,338 3.5%
-------- -------- ---------- --------
Total Gross
Profit $ 55,991 13.3% $ 56,137 14.4% $ 190,085 13.8% $132,626 20.0%
======== ======== ========== ========
Income from
Operations
and Margin
Federal
Services $ 10,851 12.9% $ 10,916 27.9% $ 23,469 11.6% $ 24,701 22.2%
Commercial
Services 4,688 24.4% 5,754 17.1% 20,562 27.1% 11,378 11.7%
LP&D 25,033 37.8% 22,661 35.4% 64,022 34.9% 63,721 34.0%
International 3,330 1.3% 5,083 2.0% 47,258 5.1% 3,124 1.2%
-------- -------- ---------- --------
Total Income
from
Operations
before
corporate
unallocated
items 43,902 10.5% 44,414 11.4% 155,311 11.2% 102,924 15.5%
Corporate
unallocated
items (18,690) (17,369) (54,516) (50,730)
-------- -------- ---------- --------
Total Income
from
Operations $ 25,212 $ 27,045 $ 100,795 $ 52,194
======== ======== ========== ========
Contact Information: For more information, please contact: John Rasmussen (801) 303-1681