Lightbridge Corporation (NASDAQ: LTBR), the leading innovator of advanced nuclear fuel designs and provider of nuclear energy consulting services to commercial and governmental organizations, today reported financial results for the first quarter ended March 31, 2011.
Revenue for the first quarter ended March 31, 2011 was $1.6 million, compared to $2.4 million for the first quarter of 2010. Operating loss for the three months ended March 31, 2011 was $1.7 million, compared to an operating loss of $1.7 million in the comparable period a year ago. While the Company's customer base has significantly increased, the phased approach of its work on nuclear consulting projects resulted in a year-over-year revenue decline. General and administrative costs decreased by $0.7 million, or 29%, reflecting lower overhead expense. The Company's operating revenues are derived primarily from its consulting and strategic advisory services for foreign governments planning to create or expand electricity generation capabilities using nuclear power plants, and are used to help fund the continuing development of the Company's all-metal and thorium nuclear fuel design technologies. Revenues are primarily generated from contracts in place with government entities in the United Arab Emirates, the State of Kuwait and the Gulf Cooperation Council (GCC). The GCC is a political and economic union that comprises the Gulf States of the Kingdom of Bahrain, State of Kuwait, Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia and United Arab Emirates.
"On the fuel technology front, we have been making steady progress over the past quarter executing our fuel development plan and remain poised to bring our next generation, all-metal and thorium-based fuel technologies to commercialization as development timelines remain on track," said Seth Grae, President and CEO of Lightbridge. "In April, we signed a memorandum of understanding with the Research Institute of Atomic Reactors in Dimitrovgrad, Russia where the MIR research reactor is located and where our fuel will be tested under prototypic PWR operating conditions. Also, the thermal-hydraulic and vibration testing on our VVER seed and blanket fuel assembly mockup is currently underway and is expected to be completed in the next quarter. The results of this testing will be submitted for publication in a peer-reviewed journal. Further, Idaho National Laboratory is in the process of completing a comprehensive independent analysis of the Lightbridge thorium-based seed and blanket technology. The results of the study will be submitted to the US Department of Energy. We will provide an update when the report is made publicly available by DOE. We also continue to expand our patent portfolio and have filed new patent applications over the past quarter covering our all-uranium seed and blanket fuel technology for power uprates and longer fuel cycles."
Mr. Grae added, "The events at Fukushima underscore the continued emphasis on nuclear plant contingency planning that takes into account all possible worst-case scenarios. Lightbridge fuel designs contribute to increased levels of nuclear safety by operating at lower temperatures and by utilizing metallurgically-bonded cladding. Lower fuel temperature is a key advantage if an upset condition within the reactor were to occur. Furthermore, metallurgically-bonded cladding prevents release of large quantities of radioactive fission products into the coolant in case of a cladding breach. Complementing the increased levels of nuclear safety, Lightbridge fuel designs provide significantly improved economics to existing and new nuclear plants, generating increased power outputs from 10 to 30 percent and longer operating cycles."
Mr. Grae concluded, "We will continue to pursue a commercialization strategy targeted at generating interest in our nuclear fuel designs from major nuclear fuel fabricators and utilities. In addition, our consulting business continues to make important strides with the unique perspective of delivering value adding services to countries that are most likely poised for new civil nuclear projects. The significant expansion in Lightbridge's customer base underscores the worldwide recognition for the Company's nuclear services expertise."
Balance Sheet Overview
As of March 31, 2011, the Company had approximately $11.5 million in cash and cash equivalents and marketable securities, and approximately $11.3 million of working capital, with no long term debt. Stockholders' equity was $11.9 million on March 31, 2011 compared with $13.1 million on December 31, 2010. The total number of common shares outstanding as of March 31, 2011 is 12,360,516.
2011 First Quarter Conference Call
Lightbridge will host a conference call on Wednesday, May 11 at 10 a.m. EDT to discuss the Company's 2011 first quarter results and provide an update on recent corporate developments. Seth Grae, President and Chief Executive Officer, will lead the call and additional members of the senior management team will be available to answer questions.
About Lightbridge Corporation
Lightbridge is a U.S. nuclear energy company based in Tysons Corner, VA with operations in Abu Dhabi, Moscowand London. The Company develops proprietary, proliferation resistant, next generation nuclear fuel technologies for current and future nuclear reactor systems. The Company also provides comprehensive advisory services for established and emerging nuclear programs based on a philosophy of transparency, non-proliferation, safety and operational excellence. Lightbridge's breakthrough fuel technology is establishing new global standards for safe and clean nuclear power and leading the way towards a sustainable energy future. Lightbridge consultants provide integrated strategic advice and expertise across a range of disciplines including regulatory affairs, nuclear reactor procurement and deployment, reactor and fuel technology and international relations. It leverages those broad and integrated capabilities by offering its services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure.
Lightbridge is on Twitter. Sign up to follow @LightbridgeCorp at http://twitter.com/lightbridgecorp.
Forward Looking Statement
This press release contains statements that are forward-looking in nature, including statements regarding the Company's competitive position and product and service offerings. These statements are based on current expectations on the date of this press release and involve a number of risks and uncertainties, which may cause actual results to differ significantly from such estimates. The risks include, but are not limited to, the degree of market adoption of the Company's product and service offerings; market competition; dependence on strategic partners; and the Company's ability to manage its business effectively in a rapidly evolving market. Certain of these and other risks are set forth in more detail in "Item 1A. Risk Factors" in Lightbridge's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011. Lightbridge does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise.
Revenue for the first quarter ended March 31, 2011 was $1.6 million, compared to $2.4 million for the first quarter of 2010. Operating loss for the three months ended March 31, 2011 was $1.7 million, compared to an operating loss of $1.7 million in the comparable period a year ago. While the Company's customer base has significantly increased, the phased approach of its work on nuclear consulting projects resulted in a year-over-year revenue decline. General and administrative costs decreased by $0.7 million, or 29%, reflecting lower overhead expense. The Company's operating revenues are derived primarily from its consulting and strategic advisory services for foreign governments planning to create or expand electricity generation capabilities using nuclear power plants, and are used to help fund the continuing development of the Company's all-metal and thorium nuclear fuel design technologies. Revenues are primarily generated from contracts in place with government entities in the United Arab Emirates, the State of Kuwait and the Gulf Cooperation Council (GCC). The GCC is a political and economic union that comprises the Gulf States of the Kingdom of Bahrain, State of Kuwait, Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia and United Arab Emirates.
"On the fuel technology front, we have been making steady progress over the past quarter executing our fuel development plan and remain poised to bring our next generation, all-metal and thorium-based fuel technologies to commercialization as development timelines remain on track," said Seth Grae, President and CEO of Lightbridge. "In April, we signed a memorandum of understanding with the Research Institute of Atomic Reactors in Dimitrovgrad, Russia where the MIR research reactor is located and where our fuel will be tested under prototypic PWR operating conditions. Also, the thermal-hydraulic and vibration testing on our VVER seed and blanket fuel assembly mockup is currently underway and is expected to be completed in the next quarter. The results of this testing will be submitted for publication in a peer-reviewed journal. Further, Idaho National Laboratory is in the process of completing a comprehensive independent analysis of the Lightbridge thorium-based seed and blanket technology. The results of the study will be submitted to the US Department of Energy. We will provide an update when the report is made publicly available by DOE. We also continue to expand our patent portfolio and have filed new patent applications over the past quarter covering our all-uranium seed and blanket fuel technology for power uprates and longer fuel cycles."
Mr. Grae added, "The events at Fukushima underscore the continued emphasis on nuclear plant contingency planning that takes into account all possible worst-case scenarios. Lightbridge fuel designs contribute to increased levels of nuclear safety by operating at lower temperatures and by utilizing metallurgically-bonded cladding. Lower fuel temperature is a key advantage if an upset condition within the reactor were to occur. Furthermore, metallurgically-bonded cladding prevents release of large quantities of radioactive fission products into the coolant in case of a cladding breach. Complementing the increased levels of nuclear safety, Lightbridge fuel designs provide significantly improved economics to existing and new nuclear plants, generating increased power outputs from 10 to 30 percent and longer operating cycles."
Mr. Grae concluded, "We will continue to pursue a commercialization strategy targeted at generating interest in our nuclear fuel designs from major nuclear fuel fabricators and utilities. In addition, our consulting business continues to make important strides with the unique perspective of delivering value adding services to countries that are most likely poised for new civil nuclear projects. The significant expansion in Lightbridge's customer base underscores the worldwide recognition for the Company's nuclear services expertise."
Balance Sheet Overview
As of March 31, 2011, the Company had approximately $11.5 million in cash and cash equivalents and marketable securities, and approximately $11.3 million of working capital, with no long term debt. Stockholders' equity was $11.9 million on March 31, 2011 compared with $13.1 million on December 31, 2010. The total number of common shares outstanding as of March 31, 2011 is 12,360,516.
2011 First Quarter Conference Call
Lightbridge will host a conference call on Wednesday, May 11 at 10 a.m. EDT to discuss the Company's 2011 first quarter results and provide an update on recent corporate developments. Seth Grae, President and Chief Executive Officer, will lead the call and additional members of the senior management team will be available to answer questions.
| Date: | Wednesday, May 11, 2011 | |
| Time: | 10 a.m. EDT | |
| Live Call (domestic): | 1-800-860-2442 | |
| Live Call (international): | +1 412-858-4600 | |
| Live Webcast: | http://www.videonewswire.com/event.asp?id=79495 | |
Lightbridge is a U.S. nuclear energy company based in Tysons Corner, VA with operations in Abu Dhabi, Moscowand London. The Company develops proprietary, proliferation resistant, next generation nuclear fuel technologies for current and future nuclear reactor systems. The Company also provides comprehensive advisory services for established and emerging nuclear programs based on a philosophy of transparency, non-proliferation, safety and operational excellence. Lightbridge's breakthrough fuel technology is establishing new global standards for safe and clean nuclear power and leading the way towards a sustainable energy future. Lightbridge consultants provide integrated strategic advice and expertise across a range of disciplines including regulatory affairs, nuclear reactor procurement and deployment, reactor and fuel technology and international relations. It leverages those broad and integrated capabilities by offering its services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure.
Lightbridge is on Twitter. Sign up to follow @LightbridgeCorp at http://twitter.com/lightbridgecorp.
This press release contains statements that are forward-looking in nature, including statements regarding the Company's competitive position and product and service offerings. These statements are based on current expectations on the date of this press release and involve a number of risks and uncertainties, which may cause actual results to differ significantly from such estimates. The risks include, but are not limited to, the degree of market adoption of the Company's product and service offerings; market competition; dependence on strategic partners; and the Company's ability to manage its business effectively in a rapidly evolving market. Certain of these and other risks are set forth in more detail in "Item 1A. Risk Factors" in Lightbridge's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011. Lightbridge does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise.
| LIGHTBRIDGE CORPORATION | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| March 31 | |||||
| 2011 | December 31, | ||||
| (Unaudited) | 2010 | ||||
| ASSETS | |||||
| Current Assets | |||||
| Cash and cash equivalents | $ | 3,014,361 | $ | 2,373,421 | |
| Marketable securities | 8,473,708 | 10,461,357 | |||
| Restricted cash | 550,566 | 550,283 | |||
| Accounts receivable - project revenue and reimbursable project costs | 904,966 | 990,563 | |||
| Deferred project costs | 393,692 | 36,700 | |||
| Prepaid expenses & other current assets | 802,179 | 328,561 | |||
| Total Current Assets | 14,139,472 | 14,740,885 | |||
| Property Plant and Equipment –net | 66,422 | 72,179 | |||
| Other Assets | |||||
| Patent costs – net | 399,139 | 377,262 | |||
| Security deposits | 120,486 | 120,486 | |||
| Total Other Assets | 519,625 | 497,748 | |||
| Total Assets | $ | 14,725,519 | $ | 15,310,812 | |
| LIABILITIES AND STOCKHOLDERS EQUITY | |||||
| Current Liabilities | |||||
| Accounts payable and accrued liabilities | $ | 1,900,301 | $ | 2,088,362 | |
| Deferred revenue | 935,240 | 98,110 | |||
| Total Liabilities | 2,835,541 | 2,186,472 | |||
| Commitments and contingencies | |||||
| Stockholders' Equity | |||||
| Preferred stock, $0.001 par value, 50,000,000 authorized shares, no shares issued and outstanding | - | - | |||
| Common stock, $0.001 par value, 500,000,000 authorized, 12,432,588 shares issued, 12,360,516 shares outstanding and 12,430,058 shares issued, 12,345,840 shares outstanding at March 31, 2011 and December 31, 2010, respectively | 12,361 | 12,346 | |||
| Additional paid in capital - stock and stock equivalents | 69,746,123 | 69,370,261 | |||
| Deficit | (57,925,506) | (56,286,767) | |||
| Common stock reserved for issuance, 11,350 shares and 6,451 shares at March 31, 2011 and December 31, 2010, respectively | 57,000 | 28,500 | |||
| Total Stockholders' Equity | 11,889,978 | 13,124,340 | |||
| Total Liabilities and Stockholders' Equity | $ | 14,725,519 | $ | 15,310,812 | |
| LIGHTBRIDGE CORPORATION | |||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
| Three Months Ended | |||||
| March 31, | |||||
| 2011 | 2010 | ||||
| Revenue: | |||||
| Consulting Revenue | $ | 1,578,094 | $ | 2,399,132 | |
| Cost of Consulting Services Provided | 1,093,019 | 1,505,490 | |||
| Gross Margin | 485,075 | 893,642 | |||
| Operating Expenses | |||||
| General and administrative | 1,727,186 | 2,372,263 | |||
| Research and development expenses | 499,640 | 204,743 | |||
| Total Operating Expenses | 2,226,826 | 2,577,006 | |||
| Operating loss | (1,741,751) | (1,683,364) | |||
| Other Income and (Expenses) | |||||
| Investment income | 105,822 | 152 | |||
| Other expenses | (2,810) | (546) | |||
| Total Other Income and Expenses | 103,012 | (394) | |||
| Net loss before income taxes | (1,638,739) | (1,683,758) | |||
| Income taxes | - | - | |||
| Net loss | $ | (1,638,739) | $ | (1,683,758) | |
| Net Loss Per Common Share, Basic and diluted | $ | (0.13) | $ | (0.17) | |
| Weighted Average Number of shares outstanding | 12,353,251 | 10,168,412 | |||
| LIGHTBRIDGE CORPORATION | |||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
| Three Months Ended | |||||
| March 31, | |||||
| 2011 | 2010 | ||||
| Operating Activities: | |||||
| Net Loss | $ | (1,638,739) | $ | (1,683,758) | |
| Adjustments to reconcile net loss from operations to net cash used in operating activities: | |||||
| Stock based compensation | 404,377 | 859,576 | |||
| Depreciation and amortization | 7,297 | 6,951 | |||
| Unrealized loss on marketable securities | 37,756 | - | |||
| Changes in non-cash operating working capital items: | |||||
| Accounts receivable - fees and reimbursable project costs | 85,597 | (226,145) | |||
| Prepaid expenses, deferred project costs and other assets | (830,610) | (101,428) | |||
| Accounts payable, accrued liabilities and other current liabilities | (188,061) | 116,147 | |||
| Deferred revenue | 837,130 | - | |||
| Net Cash Used In Operating Activities | (1,285,253) | (1,028,657) | |||
| Investing Activities: | |||||
| Sales of marketable securities | 1,949,893 | - | |||
| Property and equipment | (1,540) | - | |||
| Patent costs | (21,877) | - | |||
| Net Cash Provided By Investing Activities | 1,926,476 | - | |||
| Financing Activities: | |||||
| Restricted cash | (283) | - | |||
| Net Cash Provided by (Used In) Financing Activities | (283) | - | |||
| Net Increase (Decrease) In Cash and Cash Equivalents | 640,940 | (1,028,657) | |||
| Cash and Cash Equivalents, Beginning of Period | 2,373,421 | 3,028,791 | |||
| Cash and Cash Equivalents, End of Period | $ | 3,014,361 | $ | 2,000,134 | |
| Supplemental Disclosure of Cash Flow Information | |||||
| Cash paid during the year: | |||||
| Interest paid | $ | - | $ | - | |
| Income taxes paid | $ | - | $ | - | |
| Non-Cash Financing Activity | |||||
| Grant of Common Stock for Payment of Accrued Liabilities | $ | - | $ | 702,651 | |
| Contact: | ||
| Lightbridge Corporation: | Ogilvy Public Relations: | |
| Gerry Pascale | Greg Jawski | |
| (571) 730-1213 | (212) 880-5353 | |
| ir@Ltbridge.com | greg.jawski@ogilvypr.com | |
