March 17, 2014

FOR Q3, ENERGYSOLUTIONS POSTS HIGHER REVENUE, NET LOSS

By ExchangeMonitor

EnergySolutions reported increased revenue in its third quarter earnings report released yesterday, but the company continued to run a net loss and reported reduced gross profits. EnergySolutions reported in its Nov. 8 filing with the Securities and Exchange Commission that its revenue for the third quarter of 2011 rose to $421 million, compared with $417.7 million in the third quarter of 2010. The amount of net loss for the third quarter of 2011—$3.8 million—was an improvement over the $5.7 million net loss the company reported for the third quarter of 2010. Gross profits decreased in the third quarter to $37.1 million, compared to $49.2 million in the same quarter of 2010. “We anticipated that our performance for the second half of 2011 would be stronger than our first half, and we’re pleased that our third quarter has kept us on track to achieve that objective,” Val Christensen, president and CEO of EnergySolutions, told investors in a conference call yesterday.

Like many LLRW service and disposal companies this quarter, EnergySolutions said it isn’t optimistic about the future of Department of Energy-related work. Government Group revenue for the third quarter of 2011 totaled $51.7 million, compared with $81.2 million in the third quarter of 2010. “As we expected, our government groups’ revenue has declined in 2011 due to the roll off of several Tier 1 and Tier 2 contracts, and as a result of the discontinuance of stimulus funding on some continuing contracts. We saw this decline continue in the third quarter,” Christensen said.

But revenue growth in the global commercial group “more than offset the declines in our government group,” Christensen said, citing ramped up D&D efforts at Zion and year-over-year increases in revenue from the company’s Magnox contract in the UK and ongoing contracts in China. EnergySolutions hinted that work at its Zion long-term stewardship decommissioning project was ahead of schedule, and would result in a more positive 2012. Work at the Zion plant helped boost commercial services revenue for the third quarter of 2011 to $47.1 million, compared with $42.1 million for the third quarter of 2010.

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