EnergySolutions, Inc. (EnergySolutions) has reported revenues of $373.4 million for the second quarter of 2009, compared with the revenues of $460.3 million in the year-ago quarter. It also reported net income attributable to EnergySolutions of $7.3 million, or $0.08 per share, for the second quarter of 2008, compared with the net income attributable to EnergySolutions of $12.6 million, or $0.14 per share, in the year-ago quarter.

EnergySolutions before the non-cash impact of amortization of intangible assets for the second quarter of 2009 was $12.5 million, or $0.14 per share, compared with the second quarter of 2008 of $17.2 million, or $0.19 per share. EBITDA for the second quarter of 2009 was $29.6 million, compared with $42.7 million for the second quarter of 2008.

Commenting on the quarter, Steve Creamer, EnergySolutions chief executive officer said, “Each of our segments continued to execute well during the quarter especially considering the overall economic climate. Some of our commercial customers continue to delay sizable investments in waste remediation, removal and disposal. However, we expect most of this deferred work will eventually flow through EnergySolutions as the economy strengthens, stimulus capital is injected into the economy, and confidence improves.”

“We are focused on generating business with new customers as well as expanding opportunities with our base customers. As recent contract wins affirm, EnergySolutions remains well positioned to compete on future bids. We anticipate a gradual rebound in commercial business activity beginning later this year and continuing into 2010. In the meantime, we are working closely with our federal customers to expedite receipt and deployment of economic stimulus capital. We are managing our business carefully to keep our operating expenses in line with our near-term revenue opportunities,” Creamer concluded.

Business Segments – Second Quarter 2009

Federal Services

Federal Services revenues for the second quarter of 2009 were $74.7 million, compared with $73.1 million in the second quarter of 2008. Revenues increased $1.6 million as the Moab Atlas mill tailings project ramped up to a higher level of operations. Some of this revenue increase was offset by decreased revenue at one of our consolidated joint ventures as a result of substantial completion of the construction phase of the project.

Income from operations for the second quarter of 2009 was $4.6 million, compared with $6.3 million for the second quarter of 2008. Operating margin was 6.2% for the second quarter of 2009, compared to 8.6% for the second quarter of 2008. Operating income and margin declined primarily due to increased activity on lower margin contracts and decreased activity on higher margin projects including the Savannah River and Hanford sites.

Commercial Services

Commercial Services revenues for the second quarter of 2009 were $23.1 million, compared with $26.2 million for the second quarter of 2008. Income from operations for the second quarter of 2009 was $3.8 million, compared with $6.2 million in the second quarter of 2008. Operating margin was 16.4% for the second quarter of 2009, compared to 23.8% for the second quarter of 2008.

This decrease was attributable to lower revenues and gross profit in our spent fuel operations due to the closure of the Barnwell disposal site to customers outside the Atlantic Compact states in July 2008. Additionally, the December 2008 completion of a major engineering and technology project, as well as continued delays in industrial customer awards contributed to this segment’s lower results. These decreases were partially offset by increased revenues and gross profit in our large components operations due to the substantial work completed on our Duke McGuire project.

Logistics, Processing and Disposal

Logistics, Processing and Disposal revenues for the second quarter of 2009 were $61.6 million, compared to $63.0 million in the second quarter of 2008. Revenues related to transportation services decreased due to reduced shipping. This was offset in part by increased revenues at the Clive, Utah facility partly due to large component disposal from the Duke McGuire project.

Income from operations for the second quarter of 2009 was $23.6 million, compared with $23.5 million for the second quarter of 2008. Operating margin was 38.4% for the second quarter of 2009, compared to 37.3% for the second quarter of 2008.

International

Prior to the effects of fluctuations in foreign currency exchange rates, International revenues for the second quarter of 2009 decreased by $19.5 million, compared with the second quarter of 2008, primarily due to a lower reimbursable contract cost base of our Magnox contracts. International revenues were also negatively impacted by $64.3 million due to foreign currency fluctuations. As a result, on a GAAP basis, International revenues for the second quarter of 2009 were $214.1 million, compared to $298.0 million for the second quarter of 2008.

Income from operations for the second quarter of 2009 was $1.1 million, compared with $13.8 million for the second quarter of 2008. Operating margin was 0.5% for the second quarter of 2009, compared to 4.6% for the second quarter of 2008. The decline in operating income and margin was primarily due to lower efficiency fees recognized from the Company’s Magnox contracts as well as foreign currency fluctuations.

Liquidity and Capital Resources

As of June 30, 2009, EnergySolutions had $49.9 million in cash, up from $30.9 million at March 31, 2009, and $63.1 million of availability under its $75 million revolving line of credit, up from $60.1 million at March 31, 2009. The Company paid down $1.7 million of debt during the second quarter and an additional $30 million of debt subsequent to the quarter end.

Outlook for 2009

Given mid-year visibility on 2009, and delays in the realization of disposal revenue from Department of Energy stimulus funds, EnergySolutions’ revised 2009 EBITDA guidance is $155 million to $165 million. Previous 2009 GAAP EPS guidance of $0.50 to $0.60 per share and cash EPS (which includes the non-cash impact of amortization on intangible assets) of $0.70 to $0.80 per share remains unchanged.