Eversource Energy (ES)

[eastunder]

EnergySolutions Announces Third Quarter 2012 Financial Results

Thursday , November 08, 2012 08:30ET



SALT LAKE CITY, UT -- (Marketwire) -- 11/08/12 -- EnergySolutions, Inc. (NYSE: ES) (the "Company"), a leading provider of specialized, technology-based nuclear services, announced financial results for the third quarter ended September 30, 2012.

Third Quarter 2012 Summary

Revenue of $444.2 million
Net income attributable to EnergySolutions of $10.1 million, or $0.11 per share
Adjusted EBITDA of $42.7 million
Third Quarter 2012 Results

Revenue for the third quarter of 2012 increased to $444.2 million, compared with revenue of $421.0 million in the third quarter of 2011. Net income attributable to EnergySolutions for the third quarter of 2012 was $10.1 million, or $0.11 per share, compared to a net loss attributable to EnergySolutions of $3.8 million, or $0.04 per share, for the third quarter of 2011.

Gross profit increased to $46.2 million, compared with $37.1 million for the third quarter of 2011, primarily as a result of the ramp up of projects in Asia. Selling, general, and administrative expenses decreased slightly to $31.8 million, from $32.2 million in the third quarter of 2011 and included $3.3 million of restructuring charges in the third quarter of 2012.

EBITDA and Adjusted EBITDA were $42.4 million and $42.7 million, respectively, compared with $23.5 million and $36.0 million, respectively, for the third quarter of 2011. Adjusted EBITDA in the quarter excludes $10.7 million of restructuring and other non-recurring charges which include severance costs, legal settlements and other real estate transactions. Reconciliations of GAAP to non-GAAP financial measures are provided in the attached Table 4.

Business Segments -- Third 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 third quarter totaled $400.2 million, compared with $369.3 million in the third quarter of 2011. The $30.9 million increase in revenue was due primarily to growth from International activities primarily in Asia, partially off-set by declines in disposal operations as discussed below.

Global Commercial Group income from operations for the third quarter of 2012 totaled $26.2 million, compared with $18.3 million for the third quarter of 2011. Operating margins increased to 6.5% for the third quarter of 2012, compared to 5.0% for the third quarter of 2011 due primarily to higher revenue and earnings on projects in Asia.

Commercial Services

Within the Global Commercial Group, revenue from Commercial Services for the third quarter of 2012 totaled $48.6 million, compared with $47.1 million for the third quarter of 2011. The increase in revenue was due primarily to new support work in utility services.

Gross profit for the third quarter of 2012 increased $3.8 million to $4.7 million, compared with gross profit of $0.9 million in the third quarter of 2011, primarily as a result of higher ARO gain and lower accretion expense associated with the Zion project. Gross margin was 9.8% for the third quarter of 2012, compared with 1.9% for the third quarter of 2011.

Logistics, Processing and Disposal

Revenue from the Logistics, Processing and Disposal ("LP&D") operations for the third quarter totaled $62.4 million, compared to $64.7 million in the third quarter of 2011. The decrease in revenue was due primarily to lower waste disposal volumes from U.S. Department of Energy ("DOE") projects due in part to a decrease in government stimulus funding and commercial customers, partially offset by increased processing and logistics revenue. Gross profit and gross margin for the third quarter of 2012 were $21.5 million and 34.5%, respectively, compared with $24.3 million and 37.6% for the third quarter of 2011.

International

Revenue from International operations for the third quarter totaled $289.1 million, compared to $257.5 million for the third quarter of 2011. The $31.7 million increase was due largely to product and design activities to support clean up operations in Japan and Korea. Gross profit for the third quarter totaled $11.7 million, compared with $5.2 million for the third quarter of 2011. Gross margin increased to 4.1% for the third quarter compared with 2.0% for the third quarter of 2011, due primarily to the higher margin activities and products associated with our work in Asia.

Government Group

Government Group revenue for the third quarter of 2012 totaled $44.0 million, compared with $51.7 million in the third quarter of 2011. The decrease in revenue was due primarily to the completion of our Atlas mill tailings clean-up project in Moab, Utah, partially off-set by increases in engineering and technology projects.

Income from operations for the Government Group in the third quarter was $6.0 million, compared to $3.4 million for the third quarter of 2011.The increased income was due primarily to the roll off of lower margin projects associated with government stimulus funding, higher margin new projects and lower SG&A costs.

Outlook and Guidance

"We are pleased with the progress that we made on a number of fronts to improve our margins and increase our profitability," said David Lockwood, President and Chief Executive Officer of EnergySolutions. "With the recently announced cost savings and other efforts, we are putting in place the building blocks and business plans that will be the foundation for more profitable growth in 2013 and beyond. We reaffirm the Adjusted EBITDA guidance that we provided last quarter of $130 to $140 million for 2012."

Continued at: http://www.knobias.com/story.htm?eid=3.1.8c0c297825e014a40677aa566acc56f63d71b06fd57f4fa89e701fee54105523