EnergySolutions Announces Fourth Quarter and Fiscal Year End 2012 Results

EnergySolutions Announces Fourth Quarter and Fiscal Year End 2012 Results 
SALT LAKE CITY, UT -- (Marketwire) -- 03/18/13 --  EnergySolutions,
Inc. (NYSE: ES) (the "Company"), a leading provider of specialized,
technology-based nuclear services to government and commercial
customers, announced financial results for the Company's fourth
quarter and fiscal year ended December 31, 2012.  
Fiscal Year 2012 Summary  


 
--  Revenue of $1,807.5 million
--  Net income attributable to EnergySolutions of $4.0 million, or $0.04
    per share
--  Adjusted EBITDA of $135.0 million

  
Fourth Quarter 2012 Summary:  


 
--  Revenue of $480.0 million
--  Net loss attributable to EnergySolutions of $10.8 million, or $0.12
    per share
--  Adjusted EBITDA of $40.9 million

  
Fiscal Year 2012 Results 
Revenue for fiscal year 2012 was $1,807.5 million, compared with
$1,815.5 million for fiscal year 2011. Gross profit for the year
totaled $170.7 million compared to gross profit of $79.7 million for
fiscal year 2011. Selling, general and administrative expenses were
$138.2 million in 2012 compared to $132.4 million in 2011, as a
result of $14.1 million in restructuring and other charges taken in
2012. The Company reported operating income in 2012 of $39.9 million. 
Net income attributable to EnergySolutions for 2012 was $4.0 million,
or $0.04 per share, compared to a net loss of $196.2 million, or
$2.21 per share, for 2011. Net income in 2012 included $14.1 million
in restructuring and other non-recurring charges. Adding back the
$14.1 million charge would have resulted in $18.1 million in net
income or $0.24 per share. The net loss in 2011 included a $174.0
million goodwill impairment, a $94.9 million ARO adjustment, and a
$29.5 million tax valuation adjustment. Excluding the goodwill
impairment, ARO charge, and deferred tax asset valuation allowance,
net income would have been $102.2 million, or $1.15 earnings per
share, for 2011.  
EBITDA and Adjusted EBITDA for 2012 were $142.7 million and $135.0
million, respectively, compared to $62.5 million and $145.6 million,
respectively, for 2011.  
Fourth Quarter 2012 Results  
Revenue for the fourth quarter of 2012 increased to $480.0 million,
compared with $468.5 mi
llion recorded in the fourth quarter of 2011.
The Company reported a gross profit of $57.0 million for the fourth
quarter of 2012, compared with a loss for the fourth quarter of 2011
of $39.4 million, which included the $94.9 million ARO charge
discussed above. Selling, general and administrative expenses
increased to $38.6 million, from $36.2 million in the fourth quarter
of 2011, primarily as a result of approximately $6 million of
restructuring charges. The Company reported income from operations
for the quarter ended December 31, 2012 of $18.4 million, compared to
a loss from operations of $248.5 million for the same quarter last
year.  
Net loss attributable to EnergySolutions for the fourth quarter of
2012 was $10.8 million, or $0.12 per share, compared with a net loss
attributable to EnergySolutions of $202.8 million, or $2.28 per
share, for the fourth quarter of 2011.  
EBITDA and Adjusted EBITDA for the fourth quarter of 2012 were $41.0
million and $40.9 million, respectively, compared with an EBITDA loss
of $39.1 million and Adjusted EBITDA of $43.3 million for the fourth
quarter of 2011.  
Reconciliations of GAAP to non-GAAP financial measures are provided
in the attached Table 4.  
Business Segments - Fourth Quarter 2012  
The results of the Company's two business groups are presented in
Table 5 in the accompanying financial tables.  
Global Commercial Group 
Global Commercial Group revenue for the fourth quarter of 2012
totaled $441.4 million, compared with $411.6 million in the fourth
quarter of 2011. The $29.8 million increase in revenue was due
primarily to growth from Commercial Services and from International
activities as discussed below.  
Global Commercial Group reported income from operations in the fourth
quarter of 2012 of $42.2 million compared with a loss from operations
of $59.7 million for the fourth quarter of 2011, which included the
ARO adjustment of $94.9 million.  
Commercial Services  
Revenue from Commercial Services operations in our Global Commercial
Group for the fourth quarter of 2012 totaled $53.4 million, compared
with $59.3 million for the fourth quarter of 2011. Gross profit for
Commercial Services in the fourth quarter of 2012 was $14.4 million
compared with a loss of $88.7 million in the fourth quarter of 2011.  
Logistics, Processing and Disposal  
Revenue from the Logistics, Processing and Disposal (LP&D) operations
in our Global Commercial Group for the fourth quarter of 2012 totaled
$67.0 million, compared to $65.7 million recorded in the fourth
quarter of 2011. Gross profit for the fourth quarter of 2012 totaled
$21.3 million, compared with $22.2 million for the fourth quarter of
2011. Gross margin declined to 31.8% for the fourth quarter of 2012,
compared with 33.8% for the fourth quarter of 2011. The decrease in
gross margin was attributable primarily to higher processing costs in
the fourth quarter of 2012.  
International 
Revenue from the International operations in our Global Commercial
Group for the fourth quarter of 2012 totaled $321.0 million, compared
to $286.7 million recorded for the fourth quarter of 2011. The $34.3
million increase in revenue was due primarily to the acceleration of
decommissioning activities under our Magnox contract in the U.K. and
to increased design and construction activities in our operations in
Asia. Gross profit for the fourth quarter of 2012 totaled $17.9
million, compared with $18.7 million for the fourth quarter of 2011.
Gross margin declined to 5.6% for the fourth quarter of 2012,
compared with 6.5% for the fourth quarter of 2011. Foreign currency
fluctuations increased revenue and cost of revenue by $5.8 million
and $5.4 million, respectively, during the quarter.  
Government Group 
Government Group revenue for the fourth quarter of 2012 totaled $38.6
million, compared with $56.9 million in the fourth quarter of 2011.
The decrease in revenue was due primarily to the completion of our
Moab project in May 2012, as well as to the Company's Salt Waste
project that reversed fee revenue previously recorded and had lower
than expected fee earned during 2012. 
Income from operations for the Government Group in the fourth quarter
of 2012 totaled $0.7 million, compared with $5.5 million for the
fourth quarter of 2011. Operating margins decreased to 1.9% for the
fourth quarter of 2012, compared to 9.7% for the fourth quarter of
2011 due primarily to reduced revenue and earnings from the Salt
Waste and Moab projects.  
Equity in income from unconsolidated joint ventures was $0.0 million
for the fourth quarter of 2012, compared with $1.1 million for the
fourth quarter of 2011. The decrease was due primarily to a timing
difference in recognition of income related to our Hanford tank
operating contract.  
Outlook  
The Company announced on January 7, 2013 that the Board of Directors
had accepted a $3.75 per share offer from Energy Capital Partners. A
shareholder vote to approve the transaction is scheduled for April
26, 2013. No additional outlook for 2013 has been given pending the
shareholder vote. EnergySolutions will not hold a teleconference or
webcast in connection with this earnings release. 
Cautionary Statement Regarding Forward-Looking Statements 
Statements in this earni
ngs release regarding future financial and
operating results and any other statements about the Company's future
expectations, estimates, projections, beliefs or prospects expressed
by management, the expected date of closing of the merger and the
potential benefits of the merger, constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1965, Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
forward-looking statements reflect the current analysis of existing
information and are subject to various risks and uncertainties. As a
result, caution must be exercised in relying on forward-looking
statements. Due to known and unknown risks, our actual results may
differ materially from our expectations or projections. These
forward-looking statements are based upon current assumptions and are
subject to various risks and uncertainties. There are a number of
important factors that could cause actual results or events to differ
materially from those indicated or anticipated by such
forward-looking statements, including, but not limited to: (a) the
future potential for additional cost increases related to the Zion
Project, (b) the adverse impact of current or future financial
conditions on the value of NDT funds and future investment earnings
performance, (c) uncertainty regarding our assumptions related to the
Zion project estimated profit margin, including the projected annual
rate of return for NDT fund investment earnings over the remaining
life of the project, (d) uncertain and weak economic, market and
other conditions domestically and internationally, including
decreased credit availability for our customers and the decisions of
individual customers to retain cash and reduce credit market
exposure, (e) decreased tax revenue combined with increased demands
on government funding allocations reducing funds available for
existing or proposed government projects that we have been awarded or
on which we would bid, (f) current regulatory initiatives, that could
negatively impact our market opportunities, including regulatory
initiatives to limit the importation of nuclear waste into the U.S.
and the disposal and storage of depleted uranium, (g) uncertainty
regarding the pound sterling currency translation impact on our
business, (h) adverse public reaction that could lead to increased
regulation or limitations on our activities, (i) uncertainty
regarding the impact on our business of increased regulatory scrutiny
of the nuclear waste industry in the U.S. and internationally, (j)
decisions by our customers to reduce, delay or halt their spending on
nuclear services, (k) decisions by our commercial customers to store
radioactive materials on-site rather than dispose of radioactive
materials at one of our facilities, (l) continued competitive
pressures in our markets, (m) the outcome of any legal proceedings
that have been, or will be, instituted against the Company related to
the merger agreement, (n) the inability to complete the merger due to
the failure to obtain stockholder approval for the merger or the
failure to satisfy other conditions to completion of the merger,
including the receipt of all regulatory approvals related to the
merger, (o) the failure to obtain the necessary financing
arrangements set forth in the debt and equity commitment letters
delivered pursuant to the merger agreement, (p) risks that the
proposed transaction disrupts current plans and operations and the
potential difficulties in employee retention as a result of the
merger, (q) the impact of the substantial indebtedness to be incurred
to finance the consummation of the merger, (r) the effects of local
and national economic, credit and capital market conditions on the
economy in general, and other risks and uncertainties described
herein, as well as those risks and uncertainties discussed from time
to time in our other reports and other public filings with the
Securities and Exchange Commission (the "SEC").  
Additional information on potential factors that could affect our
results and other risks and uncertainties are set forth in our
filings with the Securities and Exchange Commission, including our
Annual Report on Form 10-K, as amended, for the fiscal year ended
December 31, 2011, our Quarterly Report on Form 10-Q for the quarter
ended September 30, 2012, and our Annual Report on Form 10-K for the
fiscal year ended December 31, 2012 to be filed on or about the day
of this release. Our SEC filings are available publicly on the SEC's
website at www.sec.gov, on EnergySolutions' website at
www.energysolutions.com or upon request from Energy Solutions'
Investor Relations Department at ir@energysolutions.com. We disclaim
any obligation to update the forward-looking statements, whether as a
result of new information, future events or otherwise.  
About EnergySolutions, Inc.  
EnergySolutions offers customers a full range of integrated services
and solutions, including nuclear operations, characterization,
decommissioning, decontamination, site closure, transportation,
nuclear materials management, the safe, secure disposition of nuclear
waste, and research and engineering services across the fuel cycle.  
Table 1  


 
                                                                            
                                                                            
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
              (dollars in thousands, except per share amounts)              
                                                                            
                                                                            
                                                     For the Twelve Month   
                              For the Quarter               Period          
                             Ended December 31         Ended December 31    
                         ------------------------  ------------------------ 
                             2012         2011         2012         2011    
                         -----------  -----------  -----------  ----------- 
                                (Unaudited)                                 
Revenue                  $   480,035  $   468,547  $ 1,807,505  $ 1,815,514 
Cost of revenue             (423,049)    (507,912)  (1,636,779)  (1,735,826)
                         -----------  -----------  -----------  ----------- 
                                                                            
  Gross profit (loss)         56,986      (39,365)     170,726       79,688 
                                                                            
Selling, general and                                                        
 administrative expenses     (38,550)     (36,229)    (138,211)    (132,386)
Impairment of goodwill             -     (174,000)           -     (174,000)
Equity in income of                                                         
 unconsolidated joint                                                       
 ventures                        (30)       1,108        7,392       11,103 
                         -----------  -----------  -----------  ----------- 
                                                                            
  Income (loss) from                   
                                     
   operations                 18,406     (248,486)      39,907     (215,595)
                                                                            
Interest expense             (18,389)     (18,564)     (71,211)     (73,414)
Other income, net              7,099       23,137       53,192       58,215 
                         -----------  -----------  -----------  ----------- 
                                                                            
  Income (loss) before                                                      
   income taxes and                                                         
   noncontrolling                                                           
   interests                   7,116     (243,913)      21,888     (230,794)
                                                                            
Income tax (expense)                                                        
 benefit                     (17,979)      41,659      (17,959)      37,145 
                         -----------  -----------  -----------  ----------- 
                                                                            
  Net income (loss)          (10,863)    (202,254)       3,929     (193,649)
                                                                            
Less: Net (income) loss                                                     
 attributable to                                                            
 noncontrolling                                                             
 interests                        18         (512)          53       (2,532)
                         -----------  -----------  -----------  ----------- 
                                                                            
  Net income (loss)                                                         
   attributable to                                                          
   EnergySolutions       $   (10,845) $  (202,766) $     3,982  $  (196,181)
                         ===========  ===========  ===========  =========== 
                                                                            
Net income (loss)                                                           
 attributable to                                                            
 EnergySolutions per                                                        
 share:                                                                     
  Basic                  $     (0.12) $     (2.28) $      0.04  $     (2.21)
  Diluted                $     (0.12) $     (2.28) $      0.04  $     (2.21)
                                                                            
Number of shares used in                                                    
 per share calculations:                                                    
  Basic                   90,253,245   88,948,098   89,639,539   88,818,971 
  Diluted                 90,253,245   88,948,098   89,639,539   88,818,971 

 
Table 2  


 
                                                                            
                                                                            
                            ENERGYSOLUTIONS, INC.                           
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                           (dollars in thousands)                           
                                                                            
                                                                            
                                                                            
ASSETS                                            December 31,  December 31,
                                                      2012          2011    
                                                 ------------- -------------
  Current assets:                                                           
    Cash and cash equivalents                    $     134,191 $      77,213
    Accounts receivable, net of allowance for                               
     doubtful accounts                                 259,913       302,203
    Nuclear decommissioning trust fund                                      
     investments                                       152,507       174,270
    Other current assets                               247,924       281,822
                                                 ------------- -------------
      Total current assets                             794,535       835,508
                                                                            
    Property, plant & equipment, net                   119,258       126,609
    Goodwill                                           308,608       306,358
    Other intangible assets,net                        238,037       260,879
    Nuclear decommissioning trust fund                                      
     investments                                       445,989       523,326
    Restricted cash and decontamination and                                 
     decommissioning deposits                          316,754       332,918
    Deferred Costs                                     360,185       465,577
    Other noncurrent assets                             72,096       164,758
                                                 ------------- -------------
                                                                            
      Total assets                               $   2,655,462 $   3,015,933
                                                 ============= =============
                                                                            
LIABILITIES & STOCKHOLDERS' EQUITY                                          
  Current liabilities:                                                      
    Current portion of long-term debt            $      16,592 $           -
    Accounts payable                                   144,649       140,951
    Accrued expenses and other current                                      
     liabilities                                       193,546       230,698
    Deferred income taxes                                1,101             -
    Facility and equipment decontamination and                              
     decommissioning liabilities                       138,757       160,520
    Unearned revenue, current portion                  150,135       159,112
                                                 ------------- -------------
      Total current liabilities                        644,780       691,281
                                                                            
  Long-term debt, less current portion                 798,577       812,734
  Facility and equipment decontamination and                                
   decommissioning liabilities                         485,447       598,530
  Unearned revenue                                     366,710       469,497
  Other noncurrent liabilities                          59,029       158,634
                                                 ------------- -------------
                                                                            
      Total liabilities                              2,354,543     2,730,676
                                                 ------------- -------------
                                                                            
EnergySolutions stockholders' equity                   300,419       284,546
Noncontrolling interests                                   500           711
                                                 ------------- -------------
                                                                            
      Total stockholders' equity                       300,919       285,257
                 
                                ------------- -------------
                                                                            
      Total liabilities and stockholders' equity $   2,655,462 $   3,015,933
                                                 ------------- -------------

 
Table 3 


 
                                                                            
                                                                            
                           ENERGYSOLUTIONS, INC.                            
        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)         
                           (dollars in thousands)                           
                                                                            
                                                For the Twelve Month Period 
                                                     Ended December 31      
                                               ---------------------------- 
                                                    2012           2011     
                                               -------------  ------------- 
                                                                            
Cash Provided by Operating Activities          $      67,636  $      75,540 
                                               -------------  ------------- 
                                                                            
Investing Activities                                                        
  Purchases of property, plant and equipment         (20,345)       (23,734)
  Purchase and sale of investments in nuclear                               
   decommissioning trust fund                          3,949          4,496 
  Purchases of intangible assets and                                        
   noncontrolling interests                             (763)          (610)
  Acquisition of noncontrolling interests in                                
   subsidiaries                                            -         (2,486)
  Proceeds from sale of property, plant and                                 
   equipment                                           5,336            236 
                                               -------------  ------------- 
Cash Used in Investing Activities                    (11,823)       (22,098)
                                               -------------  ------------- 
                                                                            
Financing Activities                                                        
  Repayments of long-term debt                             -        (30,200)
  Other items                                            565         (4,958)
                                               -------------  ------------- 
Cash Used in Financing Activities                        565        (35,158)
                                               -------------  ------------- 
                                                                            
Effect of Exchange Rate on Cash                          600         (1,263)
                                               -------------  ------------- 
                                                                            
Increase (Decrease) in Cash and Cash                                        
 Equivalents                                   $      56,978  $      17,021 
                                               =============  ============= 
                                                                            
                                                                            
Amortization of Intangible Assets              $      25,895  $      26,032 
                                               =============  ============= 
Depreciation                                   $      23,687  $      22,343 
                                               -------------  ------------- 

 
Table 4 


 
                                                                            
                                                                            
                           ENERGYSOLUTIONS, INC.                            
                      GAAP to Non-GAAP Reconciliation                       
              (dollars in thousands, except per share amounts)              
                                                                            
                                                       For the Twelve Month 
                                    For the Quarter           Period        
                                   Ended December 31     Ended December 31  
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
                                                                            
Reconciliation of net income                                                
 (loss) attributable to                                                     
 EnergySolutionsto EBITDA:                                                  
  Net income (loss) attributable                                            
   to EnergySolutions            $ (10,845) $(202,766) $   3,982  $(196,181)
  Interest expense                  18,389     18,564     71,211     73,414 
  Income tax expense (benefit)      17,979    (41,659)    17,959    (37,145)
  Depreciation expense               8,966      6,353     23,687     22,343 
  Impairment of goodwill                 -    174,000          -    174,000 
  Amortization of intangible                                                
   assets                            6,497      6,406     25,895     26,032 
                                 ---------  ---------  ---------  --------- 
      EBITDA                     $  40,986  $ (39,102) $ 142,734  $  62,463 
                                 =========  =========  =========  ========= 
                                                                            
    Accretion expense                7,535      8,375     30,017     32,319 
    Nuclear decommissioning                                                 
     trust fund earnings, net       (6,768)   (22,544)   (58,867)   (54,018)
    Equity-based compensation        1,803      1,733      6,975      9,975 
    Restructuring and other non-                                            
     recurring charges                                                      
     (benefits)                     (2,704)    94,860     14,104     94,860 
                                 ---------  ---------  ---------  --------- 
      Adjusted EBITDA            $  40,852  $  43,322  $ 134,963  $ 145,599 
                                 ---------  ---------  ---------  --------- 

 
The Company defines EBITDA as net income (loss) attributable to
EnergySolutions plus interest expense (including the effects of
interest rate derivative agreements), income taxes, depreciation,
impairment charges and amortization. The Company defines Adjusted
EBITDA as EBITDA plus non-cash equity compensation expense and,
non-cash accretion expense, plus or minus nuclear decommissioning
trust fund gains or losses net of management fees. Beginning in 2011,
we have included the changes in ARO cost estimates for the Zion
Project as an adjustment to EBITDA to remove certain effects of ARO
accounting from this measure. We have also included the corresponding
Zion Project ARO cost estimate changes for 2010 for presentation
purposes.
 The Company uses EBITDA and Adjusted EBITDA as key
indicators of its operating performance and for planning and
forecasting future business operations. EBITDA and Adjusted EBITDA,
as presented in this release, are supplemental measures of the
Company's performance that are not required by, or presented in
accordance with, generally accepted accounting principles in the
United States ("GAAP"). They are not measures of the Company's
financial performance under GAAP and should not be considered as
alternatives to net income or any other performance measures derived
in accordance with GAAP or as alternatives to cash flow from
operating activities as measures of the Company's liquidity.  
The Company's measurement of EBITDA and Adjusted EBITDA may not be
comparable to similarly titled measures of other companies. The
Company has included information concerning EBITDA and Adjusted
EBITDA in this release because they are used by management to measure
operating performance and because the Company believes that such
information is often used by certain investors as measures of a
company's historical performance and for modeling.  
EBITDA and Adjusted EBITDA have limitations as analytical tools, and
investors should not consider them in isolation, or as a substitute
for analysis of the Company's operating results or cash flows as
reported under GAAP. Some of these limitations are: 


 
--  They do not reflect the Company's cash flows, cash expenditures, or
    future requirements for capital expenditures or contractual
    commitments;
--  They do not reflect changes in, or cash requirements for, the
    Company's working capital needs;
--  They do not reflect the significant interest expense or the cash
    requirements necessary to service interest or principal payments on
    the Company's debt;
--  Although depreciation is a non-cash charge, the assets being
    depreciated will often have to be replaced in the future, and EBITDA
    and Adjusted EBITDA do not reflect any cash requirements for such
    replacements;
--  They are not adjusted for all non-cash income or expense items that
    are reflected in the Company's statements of cash flows; and
--  Other companies in the Company's industry may calculate these measures
    differently than the Company does, limiting their usefulness as
    comparative measures.

  
Because of these limitations, EBITDA and Adjusted EBITDA should not be
considered as measures of discretionary cash available to the Company
to invest in the growth of its business. The Company compensates for
these limitations by relying primarily on its GAAP results and using
EBITDA and Adjusted EBITDA only for supplemental purposes. 
The Company defines Adjusted Gross Profit as gross profit plus
accretion expense. The Company defines Adjusted Income from
Operations as Adjusted Gross Profit less operating expenses. The
Company uses Adjusted Gross Profit and Adjusted Income from
Operations as indicators of its operating performance and for
planning and forecasting future business operations. Adjusted Gross
Profit and Adjusted Income from Operations, as presented in this
release, are supplemental measures of the Company's performance that
are not required by, or presented in accordance with, GAAP. They are
not measures of the Company's financial performance under GAAP and
should not be considered as alternatives to gross profit or any other
performance measures derived in accordance with GAAP. 
The Company defines net income attributable to EnergySolutions before
the impact of amortization of intangible assets as net income
attributable to EnergySolutions plus amortization expense of
intangible assets, net of the related income tax expense. These
non-GAAP measures may be useful to investors seeking to compare the
Company's 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. These measures should not be considered as
substitutes for net income attributable to EnergySolutions, as
determined in accordance with 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 Twelve Month  
                                 For the Quarter             Period         
                                Ended December 31       Ended December 31   
                                2012        2011        2012        2011    
                             ----------  ----------  ----------  ---------- 
                                                                            
Revenue                                                                     
Government Group             $   38,637  $   56,933  $  163,381  $  242,418 
Global Commercial Group                                                     
  Commercial Services            53,395      59,268     182,505     200,670 
  LP&D                           67,034      65,650     222,802     247,084 
  International                 320,969     286,696   1,238,817   1,125,342 
                             ----------  ----------  ----------  ---------- 
    Total Revenue            $  480,035  $  468,547  $1,807,505  $1,815,514 
                             ==========  ==========  ==========  ========== 
                                                                            
                                                                            
Gross Profit                                                                
Government Group             $    3,402  $    8,434  $   17,918  $   25,189 
Global Commercial Group                                                     
  Commercial Services            14,400     (88,660)     25,874     (78,962)
  LP&D                           21,324      22,159      58,810      75,969 
  International Operations       17,860      18,702      68,124      57,492 
                             ----------  ----------  ----------  ---------- 
    Total Gross Profit       $   56,986  $  (39,365) $  170,726  $   79,688 
                             ==========  ==========  ==========  ========== 
                                                                            
                                                                            
Income from Operations                                                      
Government Group             $      694  $    5,509  $    6,420  $   11,239 
Global Commercial Group          42,218     (59,679)    109,145       4,832 
                             ----------  ----------  ----------  ---------- 
                                                                            
Group Operating Income           42,912     (54,170)    115,565      16,071 
Corporate selling, general                                                  
 and administrative expenses    (24,476)    (21,424)    (83,050)    (68,769)
Impairment of goodwill                -    (174,000)          -    (174,000)
Equity in income of                                                         
 unconsolidated joint                                                       
 ventures                           (30)      1,108       7,392      11,103 
                             ----------  ----------  ----------  ---------- 
  Total Income from                                              
           
   Operations                $   18,406  $ (248,486) $   39,907  $ (215,595)
                             ----------  ----------  ----------  ---------- 

  
For more information, please contact:
Richard Putnam
EnergySolutions, Inc. 
(801) 649-2000
rrputnam@energysolutions.com 
 
 
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