EnergySolutions (NYSE: ES) -- The Board of Directors of
EnergySolutions, Inc., a leading provider of services to the global
nuclear industry, announced today that it has appointed David
Lockwood, a seasoned operating executive and current Board member,
as Chief Executive Officer and President of the Company. Mr.
Lockwood succeeds Val John Christensen, who will remain a strategic
advisor to the Company. The change is effective immediately. Mr.
Lockwood has served as a member of the Company's Board of Directors
since November 3, 2010 and will continue to serve on the Board.
EnergySolutions has also appointed Greg Wood as its new
Executive Vice President and Chief Financial Officer. Mr. Wood
succeeds William R. Benz.
"The Board determined that the time is right for new leadership,
so that the Company is positioned to take advantage of its full
long-term potential in a changing industry environment," said
Steven R. Rogel, Chairman, EnergySolutions. "As the Board discussed
its requirements for a new CEO, it became obvious that we already
had an ideal candidate sitting on the Board. We are confident that
David Lockwood and Greg Wood bring the experience and background to
successfully lead the Company forward and build upon the Company's
deep industry experience and market-leading position to deliver
value for shareholders and customers.
"In working with David since 2010, it has become clear to the
Board that he is an insightful, engaged and talented operating
executive," Mr. Rogel continued. "His leadership experience and
professional background, coupled with his detailed understanding of
the Company as a member of the EnergySolutions Board, will be
invaluable as we seek to improve our financial and operational
positioning. At the same time, we are delighted to welcome Greg
Wood, who brings over 30 years of financial experience.
"I want to thank Val and Bill for their service to
EnergySolutions and wish them all the best in their future
endeavors," continued Mr. Rogel.
Mr. Lockwood said, "I believe in this Company. In the two years
that I have served on the Board of Directors, I've been impressed
with the quality of our people and their dedication to our mission.
Together, we will develop and implement the plans and strategies to
drive greater growth and higher profitability.
"Val was instrumental in restructuring the Company, developing
key strategic initiatives, and building a strong culture of trust
within the Company and with industry stakeholders," said Mr.
Lockwood. "One of Val's legacies will be the significant positive
shift in public support for the Company in Utah as the result of
his extensive citizen education campaign. We thank him for his many
contributions and building the foundations for growth in the
future. I look forward to working with Val as a strategic advisor
to our company in the years ahead."
Mr. Christensen said, "Working with the exceptionally talented
leadership team at EnergySolutions has been the highlight of my
professional career. I am thrilled that the Company will move
forward under the experienced and capable leadership of David
Lockwood, who understands the opportunities and challenges of the
Company. I look forward to providing any assistance David needs to
be successful."
Updated Outlook for 2012
In addition to announcing these management changes, the Company
announced it was revising its 2012 Adjusted EBITDA guidance to $130
to $140 million, down from the guidance of $150 to $160 million
provided with its first quarter financial results on May 9, 2012.
The revision is a result of continued slowdown in shipments to
Clive in both the government and commercial businesses, expected
delay in the resolution of the Salt Waste project issues until
2013, and slower than planned realization of cost savings.
Mr. Lockwood commented, "We have a lot of work ahead of us, but
we also have extraordinarily talented engineers and scientists and
deep industry experience. These are fundamental strengths upon
which we will build our future. I look forward to working closely
with my fellow directors, Greg, and our proven and experienced
operating management team to help EnergySolutions realize its full
potential."
Conference Call Details
The Company has scheduled an investor conference call and
webcast to discuss the changes in management on Monday, June 11,
2012 at 9:00 AM Eastern Time. Hosting the call will be David
Lockwood, President and Chief Executive Officer, and Greg Wood,
Executive Vice President and Chief Financial Officer.
To participate in the event, investors may dial (866) 428-9517
five to ten minutes prior to the start time to allow for
registration and reference the conference pass-code 90522821.
International callers should dial (224) 357-2222 to access the
conference call and use the same pass-code.
A replay of the call will be available for 30 days and can be
accessed at (855) 859-2056 or (404) 537-3406 using the same
pass-code referenced above.
The conference call will also be broadcast live over the
Internet for all interested parties through the company's website
at www.energysolutions.com on the "Investor Relations" tab.
About David Lockwood
Since 2007, Mr. Lockwood, 52, has been a partner of ValueAct
Capital, an investment management firm, and one of the Company's
largest institutional investors. Prior to that, Mr. Lockwood was
Chairman and Chief Executive Officer of Liberate Technologies, a
provider of software to digital media companies, from 2003 to 2006.
From 2001 to 2003, Mr. Lockwood was Chief Executive Officer and
President of Intertrust, a company that develops software for
digital rights management and licenses intellectual property. Mr.
Lockwood has also held a number of positions in the financial
services industry, including Managing Director at Goldman Sachs.
Mr. Lockwood currently serves as a director of Steinway Musical
Instruments, Inc. (NYSE: LVB), a manufacturer of musical
instruments. Mr. Lockwood holds a Bachelor of Arts degree from
Miami University (Ohio) and a Masters of Business Administration
degree from the Graduate School of Business of the University of
Chicago.
About Greg Wood
Mr. Wood, 53, joins EnergySolutions from Actian Corporation, a
provider of database and data analytics software, where he had
served as Executive Vice President & CFO. Mr. Wood currently
serves as a director of Steinway Musical Instruments, Inc. (NYSE:
LVB), a manufacturer of musical instruments. Prior to joining
Actian, Mr. Wood held chief financial officer roles at numerous
public and private companies, including Silicon Graphics, Liberate
Technologies, and InterTrust Technologies. A certified public
accountant (inactive), Mr. Wood holds a B.B.A. in accounting from
the University of San Diego and a J.D. from the University of San
Francisco School of Law.
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.
Forward-Looking Statements
Statements in this earnings release regarding future financial
and operating results and any other statements about the Company's
future expectations, beliefs or prospects expressed by management
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include statements regarding the
Company's outlook for 2012, strategic initiatives, and expectations
for Adjusted EBITDA. There are a number of important factors that
could cause actual results or events to differ materially from
those indicated by such forward-looking statements, including, but
not limited to: (a) the uncertainty regarding the outcome and
timing of contract negotiations with the DOE, (b) uncertain and
weak economic conditions globally, including decreased credit
availability for our customers and the decisions of individual
customers to retain cash and reduce credit market exposure, (c)
decreased tax revenue combined with increased demands on federal
funding allocations reducing funds available for existing or
proposed federal projects that we have been awarded or on which we
would bid, (d) current regulatory initiatives, including the
importation of nuclear waste into the U.S. and the disposal and
storage of depleted uranium, (e) the weakening of the pound
sterling and the related currency translation impact on our
business if the currency continues to weaken, (f) adverse public
reaction that could lead to increased regulation or limitations on
our activities, (g) uncertainty regarding the impact on our
business of increased regulatory scrutiny of the nuclear waste
industry in the U.S. and U.K., (h) decisions by our customers to
reduce, delay or halt their spending on nuclear services, (i)
decisions by our commercial customers to store radioactive
materials on-site rather than dispose of radioactive materials at
one of our facilities, (j) the adverse impact of current or future
financial conditions on the value of decommissioning trust funds,
(k) continued competitive pressures in our markets, and (l)
uncertainty regarding our assumptions related to the Zion project
estimated profit margin. Additional information on potential
factors that could affect the Company's results and other risks and
uncertainties are set forth in EnergySolutions, Inc. filings with
the Securities and Exchange Commission, including its Annual Report
on Form 10-K for the fiscal year ended December 31, 2011 and its
Quarterly Report on Form 10-Q for the fiscal quarter ended March
31, 2012. The Company does not undertake any obligation to release
publicly any revision to any of these forward-looking
statements.
About Adjusted EBITDA
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, and 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. Adjusted EBITDA, as presented in this release,
is a supplemental measure of the Company's performance that is not
required by, or presented in accordance with, generally accepted
accounting principles in the United States ("GAAP"). It is not a
measure of the Company's financial performance under GAAP and
should not be considered as an alternative to net income, GAAP
EBITDA 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 Adjusted EBITDA may not be
comparable to similarly titled measures of other companies. The
Company has included information concerning Adjusted EBITDA in this
release because it is used by management to measure operating
performance and because the Company believes that such information
is often used by certain investors for modeling.
Adjusted EBITDA has limitations as an analytical tool, and
investors should not consider it 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:
- It does not reflect the Company's cash flows, cash
expenditures, or future requirements for capital expenditures or
contractual commitments;
- It does not reflect changes in, or cash requirements for, the
Company's working capital needs;
- It does 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
Adjusted EBITDA does not reflect any cash requirements for such
replacements;
- It is 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 this
measure differently than the Company does, limiting its usefulness
as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be
considered as a measure 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 Adjusted EBITDA only for supplemental
purposes.
Contact Information: Media: Mark Walker 801-231-9194
Email Contact Investor Relations: Richard Putnam 801-303-0185 Email
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