EnergySolutions – ES – Last year was an important base-building year

EnergySolutions, Inc. (NYSE: ES), 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, 2011.

Fiscal Year 2011 Summary

• ES Revenue of $1,815.5 million
• ES Net loss attributable to EnergySolutions of $196.2 million, or $2.21 per share, including the effect of year-end goodwill impairment, asset retirement obligation (ARO), and deferred tax asset accounting adjustments
• ES Net income attributable to EnergySolutions of $102.2 million, or $1.15 per share, before impact of year-end goodwill impairment, ARO, and deferred tax asset accounting adjustments
• ES Adjusted EBITDA of $146.7 million

Fourth Quarter 2011 Summary

• Revenue of $468.5 million
• Net loss attributable to EnergySolutions of $202.8 million, or $2.28 per share, including the effect of year-end goodwill impairment, ARO, and deferred tax asset accounting adjustments
• Net income attributable to EnergySolutions of $95.6 million, or $1.08 per share, before impact of the year-end goodwill impairment, ARO, and deferred tax asset accounting adjustments
• Adjusted EBITDA of $44.2 million

Fiscal Year 2011 Results

Revenue for fiscal year 2011 increased to $1,815.5 million, compared with $1,752.0 million for fiscal year 2010. Gross profit for the year totaled $79.7 million and included a $94.9 million ARO charge related to the schedule and cost update on the Zion decommissioning project, compared to gross profit of $199.2 million for fiscal year 2010. After removing the effects of the Zion ARO charge, adjusted gross profit for 2011 was $206.9 million compared to $212.2 million for 2010. Selling, general and administrative expenses decreased $0.8 million to $132.4 million in 2011 compared to $133.2 million in 2010, as a result of ongoing cost reduction efforts. The Company reported an operating loss in 2011 of $215.6 million primarily as a result of the non-cash effect of a goodwill impairment charge, and the Zion ARO accounting adjustment, compared to operating income of $44.1 million for 2010. Adjusted income from operations was $85.6 million in 2011 compared to $87.3 million for 2010.

Outlook

“Last year was an important base-building year that put us on the pathway to stronger growth opportunities in 2012 and beyond. With new contract wins in Canada, Japan and here in the U.S., together with promising opportunities in Germany, we are well positioned to continue moving our Company forward,” said Val Christensen, President and Chief Executive Officer. “Based on this positive outlook, we are providing 2012 Adjusted EBITDA guidance in the range of $155 million to $165 million.”

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.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.