Table 1
ENERGYSOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands, except per share data)
For the Quarter For the Six Months
Ended June 30, Ended June 30,
2008 2007 2008 2007
---------- ---------- ---------- ----------
Revenues $ 460,345 $ 161,707 $ 962,098 $ 275,858
Cost of revenues 399,234 116,012 828,004 199,369
---------- ---------- ---------- ----------
Gross profit 61,111 45,695 134,094 76,489
Selling, general and
administrative expenses 29,921 23,012 58,511 51,340
---------- ---------- ---------- ----------
Income from operations 31,190 22,683 75,583 25,149
Interest expense (11,179) (15,341) (22,839) (30,711)
Other income (expenses), net 242 410 (1,819) 558
---------- ---------- ---------- ----------
Income (loss) before
minority interests and
income taxes 20,253 7,752 50,925 (5,004)
Minority interests (505) - (700) -
Income tax (expense) benefit (7,153) (1,760) (18,337) 652
---------- ---------- ---------- ----------
Net income (loss) $ 12,595 $ 5,992 $ 31,888 $ (4,352)
========== ========== ========== ==========
Net income per share:
Basic $ 0.14 $ 0.36
Diluted $ 0.14 $ 0.36
Number of shares used in
per share calculations:
Basic 88,303,500 88,303,500
Diluted 88,310,022 88,310,022
Table 2
ENERGYSOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
ASSETS June 30, 2008 December 31, 2007
---------------- ----------------
Current assets:
Cash and cash equivalents $ 42,242 $ 36,366
Accounts receivable, net of
allowance for doubtful accounts 422,579 366,083
Other current assets 131,675 103,233
---------------- ----------------
Total current assets 596,496 505,682
Property, plant & equipment, net 107,287 110,688
Goodwill 526,333 526,040
Other intangible assets, net 370,293 383,812
Other noncurrent assets 127,778 98,728
---------------- ----------------
Total assets $ 1,728,187 $ 1,624,950
================ ================
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 1,698 $ 1,557
Accounts payable 187,082 155,663
Accrued expenses and other current
liabilities 269,251 233,588
Other current liabilities 49,918 45,135
---------------- ----------------
Total current liabilities 507,949 435,943
Long-term debt, less current portion 575,270 605,410
Other noncurrent liabilities 205,658 178,206
---------------- ----------------
Total liabilities 1,288,877 1,219,559
---------------- ----------------
Minority interests 899 68
Commitments and contingencies
Stockholders' equity 438,411 405,323
---------------- ----------------
Total liabilities and stockholders'
equity $ 1,728,187 $ 1,624,950
================ ================
Table 3
ENERGYSOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
For the Quarter For the Six Months
Ended June 30, Ended June 30,
2008 2007 2008 2007
-------- -------- -------- --------
Cash Provided by Operating
Activities $ 20,767 $ 39,102 $ 46,431 $ 71,564
-------- -------- -------- --------
Investing Activities
Purchases of businesses,
net of cash acquired - (176,376) - (191,486)
Purchases of property,
plant and equipment (4,400) (1,789) (5,680) (3,532)
Other items 27 - 27 -
-------- -------- -------- --------
Cash Used in Investing Activities (4,373) (178,165) (5,653) (195,018)
-------- -------- -------- --------
Financing Activities
Net borrowings (repayments) of
long-term debt (10,000) 176,000 (30,000) 164,000
Dividends/distributions to
shareholders (2,207) (6,264) (4,415) (8,897)
Other items (607) (7,312) (1,134) (10,148)
-------- -------- -------- --------
Cash Provided by (Used in)
Financing Activities (12,814) 162,424 (35,549) 144,955
-------- -------- -------- --------
Effect of Exchange Rate on Cash 576 174 647 240
-------- -------- -------- --------
Increase in Cash and Cash
Equivalents $ 4,156 $ 23,535 $ 5,876 $ 21,741
======== ======== ======== ========
Amortization of Intangible Assets $ 7,181 $ 5,023 $ 14,378 $ 9,826
======== ======== ======== ========
Depreciation $ 4,436 $ 4,530 $ 9,057 $ 9,101
======== ======== ======== ========
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 Six Months
Ended June 30, Ended June 30,
2008 2007 2008 2007
---------- ---------- ---------- ----------
Reconciliation of net income
(loss) to EBITDA:
Net income (loss) $ 12,595 $ 5,992 $ 31,888 $ (4,352)
Interest expense 11,179 15,341 22,839 30,711
Interest rate swap loss (gain) (629) (308) 2,213 (38)
Income tax expense (benefit) 7,153 1,760 18,337 (652)
Depreciation expense 4,436 4,530 9,057 9,101
Amortization of intangible
assets 7,181 5,023 14,378 9,826
---------- ---------- ---------- ----------
EBITDA $ 41,915 $ 32,338 $ 98,712 $ 44,596
========== ========== ========== ==========
Reconciliation of net income
(loss) to net income (loss)
before the impact of
amortization of intangible
assets:
Net income (loss) $ 12,595 $ 5,992 $ 31,888 $ (4,352)
Amortization of intangible
assets 7,181 5,023 14,378 9,826
Income tax expense related to
amortization of intangible
assets (2,608) (1,140) (5,249) (1,280)
---------- ---------- ---------- ----------
Net income (loss) before
the impact of
amortization of
intangible assets $ 17,168 $ 9,875 $ 41,017 $ 4,194
========== ========== ========== ==========
Net income before the impact of
amortization of intangible
assets per share:
Basic $ 0.19 $ 0.46
Diluted $ 0.19 $ 0.46
Number of shares used in per
share calculations:
Basic 88,303,500 88,303,500
Diluted 88,310,022 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 June 30, For the Six Months Ended June 30,
2008 2007 2008 2007
-------- -------- -------- --------
Revenues
Federal
Services $ 73,124 $ 37,165 $117,711 $ 72,092
Commercial
Services 26,225 38,606 56,820 63,947
LP&D 63,044 69,263 117,159 123,146
Inter-
national 297,952 16,673 670,408 16,673
-------- -------- -------- --------
Total
Revenues $460,345 $161,707 $962,098 $275,858
======== ======== ======== ========
Gross Profit
and Margin
Federal
Services $ 9,106 12.5% $ 10,678 28.7% $ 17,222 14.6% $ 19,350 26.8%
Commercial
Services 7,985 30.4% 5,944 15.4% 19,565 34.4% 10,765 16.8%
LP&D 25,234 40.0% 28,096 40.6% 44,262 37.8% 45,397 36.9%
International
Operations 18,786 6.3% 977 5.9% 53,045 7.9% 977 5.9%
-------- -------- -------- --------
Total Gross $
Profit $ 61,111 13.3% $ 45,695 28.3% 134,094 13.9% $ 76,489 27.7%
======== ======== ======== ========
Income from
Operations
and Margin
Federal
Services $ 6,270 8.6% $ 7,565 20.4% $ 12,618 10.7% $ 13,785 19.1%
Commercial
Services 6,230 23.8% 5,563 14.4% 15,874 27.9% 5,624 8.8%
LP&D 22,665 36.0% 25,956 37.5% 38,989 33.3% 41,060 33.3%
Inter-
national 13,823 4.6% (1,959) -11.7% 43,928 6.6% (1,959) -11.7%
-------- -------- -------- --------
Total
Income
from
Operations
before
corporate
unallocated
items 48,988 10.6% 37,125 23.0% 111,409 11.6% 58,510 21.2%
Corporate
unallocated
items (17,798) (14,442) (35,826) (33,361)
-------- -------- -------- --------
Total
Income
from
Operations $ 31,190 $ 22,683 $ 75,583 $ 25,149
======== ======== ======== ========
Contact Information: Contact: For more information, please contact: Tim Barney (801) 649-2233