Duratek (NASDAQ:DRTK)
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Duratek, Inc. (NASDAQ:DRTK) today announced it achieved
net income of $18.4 million or $1.21 per diluted share for the year
ended December 31, 2005 as compared to $21.0 million or $1.42 per
diluted share in 2004. Revenues for 2005 of $281.2 million were 2%
lower than 2004 revenues of $286.2 million. The revenue decrease was
primarily due to lower Commercial Services revenues, as there was
insufficient new project work to replace projects that were completed
during 2004. Net income decreased primarily due to lower revenues
achieved by the Commercial Services business and losses incurred,
primarily in the third quarter, on two Federal Services contracts.
In the fourth quarter of 2005, the Company achieved net income of
$5.4 million, or $.36 per diluted share as compared to net income of
$3.0 million, or $.20 per diluted share for the comparable period in
2004. Revenues were $68.5 million for the three months ending December
31, 2005 and were 4% lower than the $71.1 million for the same period
in 2004. The increase in net income was primarily due to improved
performance by the Commercial Processing and Disposal business due to
higher volumes of higher margin materials processed and a lowering of
the facility decommissioning estimate during the quarter. The revenue
decrease for the quarter was due to lower revenues in the Federal
Services business primarily as a result of a decrease in work scope on
several existing contracts.
Robert E. Prince, President and CEO said, "We are pleased with our
strong finish for the year. In the fourth quarter our margins,
profits, and cash position all showed solid improvements. In addition
to delivering on our existing business base, we continue to focus our
energies heavily towards growth opportunities."
Robert F. Shawver, Executive Vice President and CFO said, "The
Company significantly improved its cash position during the fourth
quarter. We finished the year with $18 million in cash even after
making a voluntary debt prepayment of $15 million in December. We
continue to make consistent progress each year generating cash and
prepaying our term debt."
A conference call will be held today at 10:00 a.m. Eastern Time.
Investors can listen to the conference call by logging into
www.duratekinc.com or by calling 1-800-857-4830, passcode Duratek. In
addition to the webcast and teleconference, the Company will be
placing a presentation of the data on its website under the investor
relations section. We encourage investors to listen to the call in
addition to viewing the presentation.
A replay of the call will be available at approximately 12:00 noon
today through March 1, 2006 at 10:00 p.m. by dialing 1-866-457-5505.
The webcast will be archived on the Duratek website for at least 30
days.
Consolidated balance sheet, statement of operations, and summary
statement of cash flows are attached.
About Duratek, Inc.
Duratek provides safe, secure radioactive materials disposition.
On February 7, 2006, Duratek announced it had entered into a merger
agreement with EnergySolutions LLC, formerly known as Envirocare of
Utah LLC.
Important Additional Information and Where to Find It
Duratek will file with the Securities and Exchange Commission a
proxy statement and other documents regarding the proposed business
combination referred to in the foregoing information. Investors are
urged to read the proxy statement when it becomes available because it
will contain important information. A definitive proxy statement will
be sent to Duratek's stockholders seeking their approval of the
transaction. Investors may obtain a free copy of the proxy statement
and other documents filed by Duratek with the Commission at the
Commission's website at www.sec.gov, or by directing a request to:
Diane Brown, Corporate Secretary, Duratek Inc., 10100 Old Columbia
Road, Columbia, Maryland 21046.
Duratek, its directors, and its executive officers may be
considered participants in the solicitation of proxies in connection
with the proposed transaction. Information about the directors and
executive officers of Duratek and their ownership of Duratek stock is
set forth in the proxy statement for Duratek's 2005 annual meeting of
stockholders. Investors may obtain additional information regarding
the interests of such participants by reading the proxy statement when
it becomes available.
Certain statements contained in this press release may constitute
"forward-looking statements" within the meaning of Section 21E(i)(1)
of the Securities Exchange Act of 1934. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause Duratek's actual results to be materially
different from any future results expressed or implied by these
statements. Such factors include the following: the Company's ability
to manage its commercial waste processing operations, the timing and
award of contracts by the U.S. Department of Energy for the cleanup of
waste sites administered by it; the acceptance and implementation of
the Company's waste treatment technologies in the government and
commercial sectors; and other large technical support services
projects; the Company's ability to successfully add revenues from new
contracts; and the timing of completing existing contracts.
Additionally, risks and uncertainties about the pending merger of the
Company with EnergySolutions, LLC include the satisfaction of the
conditions to closing, including receipt of stockholder and regulatory
approval; general industry and market conditions; the ability of
either company to achieve future business objectives; and the risk
that the perceived advantages of the transaction, if consummated, may
not be achieved. All forward-looking statements are also expressly
qualified in their entirety by the cautionary statements included in
the Company's SEC filings, including its quarterly reports on Form
10-Q and its annual report on Form 10-K.
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DURATEK, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 2005 and 2004
(in thousands of dollars, except share amounts)
2005 2004
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 18,440 $ 23,296
Accounts receivable, net of allowance for
doubtful accounts of $18 in 2005 and $158
in 2004 36,247 30,997
Cost and estimated earnings in excess of
billings on uncompleted contracts 14,417 16,715
Prepaid expenses and other current assets 5,694 13,708
----------- -----------
Total current assets 74,798 84,716
Retainage 1,039 1,257
Property, plant and equipment, net 61,802 66,151
Goodwill 72,129 72,129
Other intangible assets 2,708 3,747
Decontamination and decommissioning trust
fund 19,295 19,050
Other assets 32,143 21,487
----------- -----------
Total assets $ 263,914 $ 268,537
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $ 708 $ 858
Accounts payable 11,894 15,643
Due to the State of South Carolina 6,911 6,073
Accrued expenses and other current
liabilities 21,783 24,646
Unearned revenues 13,359 14,694
Waste processing and disposal liabilities 4,300 6,980
----------- -----------
Total current liabilities 58,955 68,894
Long-term debt, less current portion 68,648 84,142
Facility and equipment decontamination and
decommissioning liabilities 38,927 40,419
Other noncurrent liabilities 7,525 6,756
----------- -----------
Total liabilities 174,055 200,211
----------- -----------
Stockholders' equity:
Preferred stock - $0.01 par value;
authorized 4,740,000 shares; none issued - -
Series B junior participating preferred
stock, $0.01 par value; 100,000 shares
authorized; none issued - -
Common stock - $0.01 par value; authorized
35,000,000 shares; issued 16,470,624
shares in 2005 and 16,236,781 shares in
2004 165 162
Capital in excess of par value 89,891 86,784
Deferred compensation employee stock trust 1,323 1,323
Retained earnings (accumulated deficit) 9,380 (9,043)
Treasury stock at cost, 1,771,306 shares
in 2005 and 2004 (10,900) (10,900)
----------- -----------
Total stockholders' equity 89,859 68,326
----------- -----------
Total liabilities and stockholders'
equity $ 263,914 $ 268,537
=========== ===========
DURATEK, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Years ended December 31, 2005, 2004 and 2003
(in thousands of dollars, except per share amounts)
2005 2004 2003
----------- ----------- -----------
Revenues $ 281,212 $ 286,213 $ 285,901
Cost of revenues 211,299 211,315 217,493
----------- ----------- -----------
Gross profit 69,913 74,898 68,408
Selling, general and
administrative expenses 34,516 34,306 33,462
----------- ----------- -----------
Income from operations 35,397 40,592 34,946
Interest expense (6,539) (6,970) (6,903)
Other income, net 31 398 76
----------- ----------- -----------
Income before income
taxes, equity in income
of joint ventures, and
cumulative effect of a
change in accounting
principle 28,889 34,020 28,119
Income taxes 10,651 13,098 11,671
----------- ----------- -----------
Income before equity in
income of joint ventures
and cumulative effect of
a change in accounting
principle 18,238 20,922 16,448
Equity in income of joint
ventures 185 124 202
----------- ----------- -----------
Income before cumulative
effect of a change in
accounting principle 18,423 21,046 16,650
Cumulative effect of a change in
accounting principle, net of
taxes - - (2,414)
----------- ----------- -----------
Net income 18,423 21,046 14,236
Preferred stock repurchase
premium, dividends and charges
for accretion - (63) (36,154)
----------- ----------- -----------
Net income (loss)
attributable to common
stockholders $ 18,423 $ 20,983 $ (21,918)
=========== =========== ===========
Income (loss) per share:
Basic:
Before cumulative effect
of a change in accounting
principle $ 1.25 $ 1.48 $ (1.44)
Cumulative effect of a
change in accounting
principle - - (0.18)
----------- ----------- -----------
$ 1.25 $ 1.48 $ (1.62)
=========== =========== ===========
Diluted:
Before cumulative effect
of a change in accounting
principle $ 1.21 $ 1.42 $ (1.44)
Cumulative effect of a
change in accounting
principle - - (0.18)
----------- ----------- -----------
$ 1.21 $ 1.42 $ (1.62)
=========== =========== ===========
DURATEK, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
Years ended December 31, 2005 and 2004
(in thousands of dollars)
2005 2004
----------- -----------
Cash flows from operating activities:
Net income $ 18,423 $ 21,046
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 9,847 10,639
Other non-cash charges 1,200 3,165
Changes in operating assets and
liabilities (14,818) (14,323)
----------- -----------
Net cash provided by operating activities 14,652 20,527
----------- -----------
Net cash used in investing activities (4,749) (6,357)
----------- -----------
Net cash used in financing activities (14,759) (26,048)
----------- -----------
Net decrease in cash and cash
equivalents (4,856) (11,878)
Cash and cash equivalents, beginning of year 23,296 35,174
----------- -----------
Cash and cash equivalents, end of year $ 18,440 $ 23,296
=========== ===========
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