SOURCE: EnergySolutions

April 20, 2011 16:18 ET

EnergySolutions to Discuss Nuclear Station License Stewardship Accounting Methodology -- Update

SALT LAKE CITY, UT--(Marketwire - Apr 20, 2011) - EnergySolutions, Inc. (NYSE: ES) announced today that, in connection with its previously scheduled conference call at 5:00 p.m. EDT today to discuss the license stewardship accounting methodology, it is making the following materials available for discussion:

Exhibit 1: EBITDA Bridge - 2010 Actual to 2011 Guidance
Exhibit 2: License Stewardship Model Financial Statements
Exhibit 3: Reconciliation of GAAP to Non-GAAP Measures

These tables are being provided to facilitate an understanding of both the Company's 2011 guidance as well as the license stewardship accounting methodology, and will be discussed on the call by Val Christensen, President and CEO, and William Benz, Chief Financial Officer.

Please note that during the call, management's remarks may contain forward-looking statements within the meaning of federal securities laws. These remarks may include statements concerning plans, objectives, goals, strategies and projections of future events or performance, many of which are based on certain assumptions. Forward-looking statements involve risks and uncertainties. Although EnergySolutions believes that its plans, intentions and expectations are reasonable, we may not achieve those plans, intentions or expectations. There are important risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made in this conference call. Such risks and uncertainties are discussed in the Company's Form 10-K for the fiscal year ended December 31, 2010 filed with the Securities and Exchange Commission. Any projections as to the Company's future financial performance represent management's estimates as of today, April 20, 2011. EnergySolutions assumes no obligations to update these projections in the future due to changing conditions or otherwise.

To participate in the event by telephone, please dial 1-800-901-5259 five to ten minutes prior to the start time (to allow time for registration) and reference the conference pass-code 82926752. International callers should dial 617-786-4514 and enter the same passcode.

A replay of the call will be available on Wednesday, April 20, 2011 at 8:00 p.m. EDT through Wednesday, April 27, 2011 at 11:59 pm EDT. To access the replay, dial (888) 286-8010 and enter pass-code 10840586. International callers should dial (617) 801-6888 and enter the same passcode.

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 http://www.EnergySolutions.com/ by clicking on the "Investor Relations" tab at the top of the home page. To listen to the live call, please visit the web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. An audio replay of the event will be archived on EnergySolutions' web site for 90 days.

About EnergySolutions

EnergySolutions offers customers a full range of integrated services and solutions, including nuclear operations, characterization, decommissioning, decontamination, site closure, transportation, nuclear materials management, processing, recycling, and disposition of nuclear waste, and research and engineering services across the nuclear fuel cycle.


                                Exhibit 2
              License Stewardship Model Financial Statements
                          (dollars in thousands)

                                      Inception     Year 1       Year 2
                                     -----------  -----------  -----------
Balance Sheet
     Cash                                               5,000       35,000
     Trust fund                          541,000      531,000      370,000
     Deferred costs                      541,000      513,000      352,000
                                     -----------  -----------  -----------
  Total assets                         1,082,000    1,049,000      757,000
                                     ===========  ===========  ===========

     ARO liability                      (541,000)    (530,000)    (369,000)
     Deferred revenue                   (541,000)    (513,000)    (352,000)
                                     -----------  -----------  -----------
  Total liabilities                   (1,082,000)  (1,043,000)    (721,000)

     Retained earnings                         -       (6,000)     (36,000)
                                     -----------  -----------  -----------
  Total liabilities & equity          (1,082,000)  (1,049,000)    (757,000)
                                     ===========  ===========  ===========


Income Statement                        Total
                                     -----------
  Revenue                                541,000       28,000      161,000
  Cost of revenue
     Cost of revenue                     541,000       28,000      161,000
     Accretion expense                    59,000       19,000       19,000
     ARO gain                           (100,000)      (5,000)     (30,000)
                                     -----------  -----------  -----------
  Total cost of revenue                  500,000       42,000      150,000
                                     -----------  -----------  -----------
     Gross profit (loss)                  41,000      (14,000)      11,000
                                     -----------  -----------  -----------
  Operating income (loss)                 41,000      (14,000)      11,000
  Other income (expense)
     Trust fund earnings                  59,000       20,000       19,000
  Interest expense                             -            -            -
                                     -----------  -----------  -----------
     Pretax income                       100,000        6,000       30,000
                                     ===========  ===========  ===========



                                       Year 3       Year 4       Year 5
                                     -----------  -----------  -----------
Balance Sheet
     Cash                                 75,000       96,000      100,000
     Trust fund                          144,000       23,000            -
     Deferred costs                      136,000       22,000            -
                                     -----------  -----------  -----------
  Total assets                           355,000      141,000      100,000
                                     ===========  ===========  ===========

     ARO liability                      (143,000)     (23,000)           -
     Deferred revenue                   (136,000)     (22,000)           -
                                     -----------  -----------  -----------
  Total liabilities                     (279,000)     (45,000)           -

     Retained earnings                   (76,000)     (96,000)    (100,000)
                                     -----------  -----------  -----------
  Total liabilities & equity            (355,000)    (141,000)    (100,000)
                                     ===========  ===========  ===========


Income Statement
  Revenue                                216,000      114,000       22,000
  Cost of revenue
     Cost of revenue                     216,000      114,000       22,000
     Accretion expense                    14,000        6,000        1,000
     ARO gain                            (40,000)     (21,000)      (4,000)
                                     -----------  -----------  -----------
  Total cost of revenue                  190,000       99,000       19,000
                                     -----------  -----------  -----------
     Gross profit (loss)                  26,000       15,000        3,000
                                     -----------  -----------  -----------
  Operating income (loss)                 26,000       15,000        3,000
  Other income (expense)
     Trust fund earnings                  14,000        5,000        1,000
  Interest expense                             -            -            -
                                     -----------  -----------  -----------
     Pretax income                        40,000       20,000        4,000
                                     ===========  ===========  ===========





                                Exhibit 3

                          ENERGYSOLUTIONS, INC.
          RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED)
                          (dollars in thousands)




                                    For the       For the
                                    Quarter       Quarter     For the Year
                                      Ended         Ended         Ended
                                    September   December 31,  December 31,
                                    30, 2010        2010          2010
                                  ------------  ------------  ------------

Reconciliation of net income
 (loss) attributable to
 EnergySolutions to EBITDA and
 to Adjusted EBITDA:
  Net income (loss) attributable
   to EnergySolutions             $     (5,662) $      6,333  $    (22,001)
  Interest expense                      33,831        19,113        71,487
  Interest rate swap loss                 (208)         (545)       (1,636)
  Income tax expense                     8,319         9,126        29,204
  Depreciation expense                   4,346         6,008        20,535
  Impairment of goodwill                     -             -        35,000
  Amortization of intangible
   assets                                6,450         6,459        25,686
                                  ------------  ------------  ------------
    EBITDA                        $     47,076  $     46,494  $    158,275
                                  ============  ============  ============

Accretion expense                          223         7,565         8,226
Nuclear decommissioning trust
 fund earnings (1)                     (28,953)       (4,960)      (33,913)
Equity-based compensation                2,982         2,268        10,308
                                  ------------  ------------  ------------
    Adjusted EBITDA               $     21,328  $     51,367  $    142,896
                                  ============  ============  ============



Reconciliation of gross profit to
 adjusted gross profit
 and to adjusted income from
 operations:
Gross profit                      $     55,753  $     62,270  $    198,534
Accretion expense                          223         7,565         8,226
                                  ------------  ------------  ------------
  Adjusted gross profit           $     55,976  $     69,835  $    206,760
                                  ============  ============  ============

Operating expenses                     (34,243)      (32,521)     (154,422)
                                  ------------  ------------  ------------
Adjusted Income from operations         21,733        37,314        52,338
Interest expense                       (33,831)      (19,114)      (71,487)
Other income                             1,025         5,716        36,659
Accretion expense                         (223)       (7,565)       (8,226)
                                  ------------  ------------  ------------
  Income (loss) before income
   taxes and noncontrolling
   interest                       $    (11,296) $     16,351  $      9,284
                                  ============  ============  ============



(1) The impact of the nuclear decommissioning trust fund has not
    previously been included as part of Adjusted EBITDA


Contact Information

  • Investor Relations Contact

    John Rasmussen
    EnergySolutions, Inc.
    (801) 303-1681

    Media Relations Contact
    Mark Walker
    EnergySolutions, Inc.
    (801) 649-2194