Table 1
ENERGYSOLUTIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Dollars in thousands, except per share data)
For the Quarter Ended For the Year Ended
December 31, December 31,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Revenues $ 410,080 $ 427,860 $ 1,791,631 $ 1,092,613
Cost of revenues 354,881 365,499 1,544,438 896,086
----------- ----------- ----------- -----------
Gross profit 55,199 62,361 247,193 196,527
Selling, general and
administrative
expenses 40,438 41,891 129,430 121,948
----------- ----------- ----------- -----------
Income from
operations 14,761 20,470 117,763 74,579
Interest expense (10,345) (21,730) (44,595) (75,432)
Other income
(expenses), net (3,665) 4,767 (5,556) 3,364
----------- ----------- ----------- -----------
Income before
minority interests
and income taxes 751 3,507 67,612 2,511
Minority interests (426) (92) (1,333) (92)
Income tax (expense)
benefit 2,066 (8,184) (21,098) (11,318)
----------- ----------- ----------- -----------
Net income (loss) $ 2,391 $ (4,769) $ 45,181 $ (8,899)
=========== =========== =========== ===========
Net income per share:
Basic $ 0.03 $ (0.11) $ 0.51 $ (0.79)
Diluted $ 0.03 $ (0.11) $ 0.51 $ (0.79)
Number of shares used
in per share
calculations:
Basic 88,304,611 44,730,043 88,303,779 11,274,422
Diluted 88,316,045 44,730,043 88,311,231 11,274,422
Table 2
ENERGYSOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
December 31, December 31,
ASSETS 2008 2007
------------- -------------
Current assets:
Cash and cash equivalents $ 48,448 $ 36,366
Accounts receivable, net of allowance for
doubtful accounts 213,037 366,083
Other current assets 129,772 103,233
------------- -------------
Total current assets 391,257 505,682
Property, plant & equipment, net 114,021 110,688
Goodwill 528,254 526,040
Other intangible assets, net 357,100 383,812
Other noncurrent assets 160,080 98,728
------------- -------------
Total assets $ 1,550,712 $ 1,624,950
============= =============
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 2,954 $ 1,557
Accounts payable 89,513 155,663
Accrued expenses and other current
liabilities 171,070 233,588
Other current liabilities 35,170 45,135
------------- -------------
Total current liabilities 298,707 435,943
Long-term debt, less current portion 563,803 605,410
Other noncurrent liabilities 219,383 178,206
------------- -------------
Total liabilities 1,081,893 1,219,559
------------- -------------
Minority interests 1,033 68
Commitments and contingencies
Stockholders' equity 467,786 405,323
------------- -------------
Total liabilities and stockholders'
equity $ 1,550,712 $ 1,624,950
============= =============
Table 3
ENERGYSOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Dollars in thousands)
For the Year Ended
December 31,
2008 2007
--------- ---------
Cash Provided by Operating Activities $ 103,109 $ 152,796
--------- ---------
Investing Activities
Purchases of businesses, net of cash acquired - (199,105)
Purchases of property, plant and equipment (26,629) (13,312)
Other items (647) 579
--------- ---------
Cash Used in Investing Activities (27,276) (211,838)
--------- ---------
Financing Activities
Net borrowings (repayments) of long-term debt (40,210) (154,200)
Dividends/distributions to shareholders (8,831) (8,917)
Proceeds from issuance of common stock, net of
issuance costs - 271,142
Other items (3,585) (16,091)
--------- ---------
Cash Provided by (Used in) Financing Activities (52,626) 91,934
--------- ---------
Effect of Exchange Rate on Cash (11,125) (1,167)
--------- ---------
Increase in Cash and Cash Equivalents $ 12,082 $ 31,725
========= =========
Amortization of Intangible Assets $ 28,250 $ 24,147
========= =========
Depreciation $ 18,174 $ 19,083
========= =========
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 Year
Ended December 31, Ended December 31,
2008 2007 2008 2007
---------- ---------- ---------- ----------
Reconciliation of net
income (loss) to EBITDA:
Net income (loss) $ 2,391 $ (4,769) $ 45,181 $ (8,899)
Interest expense 10,345 21,730 44,595 75,432
Interest rate swap loss 259 255 2,482 741
Income tax expense
(benefit) (2,066) 8,184 21,098 11,318
Depreciation expense 4,794 4,571 18,174 19,083
Amortization of intangible
assets 6,942 7,027 28,250 24,147
---------- ---------- ---------- ----------
EBITDA $ 22,665 $ 36,998 $ 159,780 $ 121,822
========== ========== ========== ==========
Reconciliation of net
income (loss) to net
income (loss)before the
impact of amortization of
intangible assets:
Net income (loss) $ 2,391 $ (4,769) $ 45,181 $ (8,899)
Amortization of intangible
assets 6,942 7,027 28,250 24,147
Income tax expense related
to amortization of
intangible assets (1,509) (2,537) (8,993) (8,718)
---------- ---------- ---------- ----------
Net income (loss) before
the impact of
amortization of
intangible assets $ 7,824 $ (279) $ 64,438 $ 6,530
========== ========== ========== ==========
Net income (loss) before
the impact of amortization
of intangible assets per
share:
Basic $ 0.09 $ (0.01) $ 0.73 $ 0.58
Diluted $ 0.09 $ (0.01) $ 0.73 $ 0.56
Number of shares used in
per share calculations:
Basic 88,304,611 44,730,043 88,303,779 11,274,422
Diluted 88,316,045 44,730,043 88,311,231 11,689,320
The Company defines EBITDA as earnings before interest expense including interest rate swap loss, 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.
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND EBITDA, AS ADJUSTED
AND NET INCOME TO NON-GAAP NET INCOME BEFORE THE IMPACT OF
AMORTIZATION OF INTANGIBLE ASSETS (UNAUDITED)
(Dollars in thousands, except per share data)
For the For the
Quarter Ended Year Ended
December 31, December 31,
2008 2008
------------ ------------
Reconciliation of net income to non-GAAP net
income and EBITDA, as adjusted:
Net income $ 2,391 $ 45,181
Compensation expense reimbursed by ENV
Holdings LLC, net of income tax benefit of
$1,326 8,674 8,674
Secondary offering expenses, net of income tax
benefit of $661 - 1,135
------------ ------------
Non-GAAP net income 11,065 54,990
Interest expense 10,345 44,595
Interest rate swap loss 259 2,482
Income tax expense (benefit) (740) 23,085
Depreciation expense 4,794 18,174
Amortization of intangible assets 6,942 28,250
------------ ------------
EBITDA, as adjusted $ 32,665 $ 171,576
============ ============
Non-GAAP net income per share:
Basic $ 0.13 $ 0.62
Diluted $ 0.13 $ 0.62
Number of shares used in per share
calculations:
Basic 88,304,611 88,303,779
Diluted 88,316,045 88,311,231
Reconciliation of net income to non-GAAP net
income before the impact of amortization of
intangible assets:
Net income $ 2,391 $ 45,181
Compensation expense reimbursed by ENV
Holdings LLC, net of income tax benefit of
$1,326 8,674 8,674
Secondary offering expenses, net of income tax
benefit of $661 - 1,135
------------ ------------
Non-GAAP net income 11,065 54,990
Amortization of intangible assets 6,942 28,250
Income tax expense related to amortization of
intangible assets (1,509) (8,993)
------------ ------------
Non-GAAP net income before the impact of
amortization of intangible assets $ 16,498 $ 74,247
============ ============
Non-GAAP net income before the impact of
amortization of intangible assets per share:
Basic $ 0.19 $ 0.84
Diluted $ 0.19 $ 0.84
Number of shares used in per share
calculations:
Basic 88,304,611 88,303,779
Diluted 88,316,045 88,311,231
The Company defines non-GAAP net income as net income plus compensation expense reimbursed by ENV Holdings LLC and secondary offering expenses, net of the related income tax expense of these items. Non-GAAP net income and non-GAAP net income 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. Non-GAAP net income and non-GAAP net income per share should not be considered as a substitute for net income or net income per share, as determined in accordance with GAAP. Non-GAAP net income and non-GAAP net income 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. The Company defines EBITDA, as adjusted, as net income plus compensation expense reimbursed by ENV Holdings LLC, secondary offering expenses, interest expense including interest rate swap loss, income taxes, depreciation and amortization. The Company uses EBITDA, as adjusted, 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, as adjusted, 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, compensation reimbursed by a stockholder and offering costs required to be paid on behalf of a stockholder in accordance with a registration rights agreement) from its results of operations. EBITDA, as adjusted, should not be considered as a substitute for net income or income from operations, as determined in accordance with GAAP. EBITDA, as adjusted, 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 non-GAAP net income before the impact of amortization of intangible assets as net income plus compensation expense reimbursed by ENV Holdings LLC, secondary offering expenses and amortization expense of intangible assets, net of the related income tax expense of these items. Non-GAAP net income before the impact of amortization of intangible assets and non-GAAP 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. Non-GAAP net income before the impact of amortization of intangible assets and non-GAAP 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. Non-GAAP net income before the impact of amortization of intangible assets and non-GAAP 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 6
ENERGYSOLUTIONS, INC.
REPORTING SEGMENT INFORMATION (UNAUDITED)
(Dollars in thousands)
For the Quarter Ended For the Year Ended
December 31, December 31,
2008 2007 2008 2007
-------- -------- ---------- ----------
Revenues
Federal
Services $ 69,763 $ 40,101 $ 271,820 $ 151,355
Commercial
Services 31,203 39,862 107,198 137,378
LP&D 63,492 75,619 246,810 262,801
Inter-
national 245,622 272,278 1,165,803 541,079
-------- -------- ---------- ----------
Total
Revenues $410,080 $427,860 $1,791,631 $1,092,613
======== ======== ========== ==========
Gross Profit
and Margin
Federal
Services $ 8,706 12.5% $ 8,769 21.9% $ 39,197 14.4% $ 42,383 28.0%
Commercial
Services 7,203 23.1% 8,122 20.4% 33,280 31.0% 27,812 20.2%
LP&D 23,233 36.6% 37,239 49.2% 97,079 39.3% 108,763 41.4%
Inter-
national
Operations 16,057 6.5% 8,231 3.0% 77,637 6.7% 17,569 3.2%
-------- -------- ---------- ----------
Total Gross
Profit $ 55,199 13.5% $ 62,361 14.6% $ 247,193 13.8% $ 196,527 18.0%
======== ======== ========== ==========
Income from
Operations
and Margin
Federal
Services $ 6,114 8.8% $ 6,376 15.9% $ 29,583 10.9% $ 31,077 20.5%
Commercial
Services 5,263 16.9% 8,704 21.8% 25,825 24.1% 20,082 14.6%
LP&D 21,953 34.6% 35,010 46.3% 87,893 35.6% 100,311 38.2%
Inter-
national 9,411 3.8% (194) -0.1% 56,669 4.9% 2,930 0.5%
-------- -------- ---------- ----------
Total Income
from
Operations
before
corporate
unallocated
items 42,741 10.4% 49,896 11.7% 199,970 11.2% 154,400 14.1%
Corporate
unallocated
items (27,980) (29,427) (82,207) (79,821)
-------- -------- ---------- ----------
Total Income
from
Op-
erations $ 14,761 3.6% $ 20,469 4.8% $ 117,763 6.6% $ 74,579 6.8%
======== ======== ========== ==========
Contact Information: Contact: For more information, please contact: John Rasmussen (801) 303-1681