Financial Highlights:
- 2023 full year net income of $84.4
million, compared to $52.2
million for 2022
- Centrus revenue of $320.2 million
and gross profit of $112.1 million
for full year 2023
- Unrestricted cash balance of $201.2
million as of December 31,
2023
- Originated $189 million of new
sales contracts, maintaining our $1
billion long-term order book as of December 31, 2023
BETHESDA, Md., Feb. 8, 2024
/PRNewswire/ -- Centrus Energy Corp. (NYSE American: LEU)
("Centrus" or the "Company") today reported 2023 results. The
Company reported net income of $84.4
million for the year ended December 31, 2023, which is
$5.55 (basic) and $5.44 (diluted) per common share.
"Centrus delivered a robust fourth quarter performance, capping
off a historic and profitable year with the launch of the first new
U.S.-owned, U.S.-technology enrichment plant to begin production in
70 years," said Centrus President and CEO Amir Vexler. "With support of a strong,
public-private partnership, we look forward to scaling up
production in our Ohio facility to
meet the full range of America's commercial and national security
requirements for enriched uranium, including HALEU for advanced
reactors and LEU for the existing reactor fleet."
Full Year Financial Results
Centrus achieved operating income of $52.4 million and $59.7
million for the year ended December 31, 2023 and 2022,
respectively. Net income included the impact of a $21.3 million estimated loss in the year ended
December 31, 2022 related to Centrus' cost-share contribution
to the HALEU Operation Contract that the Company secured in
November 2022 with the U.S.
Department of Energy (DOE).
Centrus generated total revenue of $320.2
million and $293.8 million for
the year ended December 31, 2023 and
2022, respectively.
Revenue from the Low-Enriched Uranium (LEU) segment was
$269.0 million and $235.6 million for the year ended December 31, 2023 and 2022, respectively, an
increase of $33.4 million. SWU
revenue increased $12.0 million due
to an increase in the volume of SWU sold, partially offset by a
decrease in the average price of SWU sold. Uranium revenue
increased $21.4 million due to an
increase in the volume of uranium (UF6) sold and an
increase in the average price of uranium (UF6)
sold.
Revenue from the Technical Solutions segment was $51.2 million and $58.2
million for the year ended December
31, 2023 and 2022, respectively, a decrease of $7.0 million. This decrease was driven by
decreased work performed under the 2019 HALEU Demonstration
Contract and other contracts. This was partially offset by
increased work under the HALEU Operation Contract signed in
November 2022.
Cost of sales for the LEU segment was $163.9 million and $105.0
million for the year ended December
31, 2023 and 2022, respectively, an increase of $58.9 million. The volume of SWU and uranium
(UF6) sold increased and the average SWU and uranium
(UF6) unit cost increased.
Cost of sales for the Technical Solutions segment was
$44.2 million and $70.9 million for the year ended December 31, 2023 and 2022, respectively, a
decrease of $26.7 million. This
decrease was driven by decreased work performed under the 2019
HALEU Demonstration Contract and other contracts. This was
partially offset by an increase in work performed under the HALEU
Operation Contract signed in November
2022. The costs related to the 2022 HALEU Operation Contract
for the year ended December 31, 2022
included the $21.3 million accrued
loss for Phase 1 of the HALEU Operation Contract.
Gross profit for the Company was $112.1
million and $117.9 million for
the year ended December 31, 2023 and
2022, respectively. This decrease was primarily attributed to the
decrease in gross profit in the LEU segment, partially offset by
the increase in gross profit in the Technical Solutions segment, as
previously discussed. LEU customers generally have multi-year
contracts that carry annual purchase commitments, not quarterly
commitments. The gross profit in our LEU business varies based upon
timing of those contracts. The pricing of those deliveries varies
depending upon the market conditions at the time the contract was
signed with a portion of our outstanding contracts entered into at
historically higher prices. The Company's gross profit was lower
year over year primarily due to the composition of contracts in
prior year which included legacy and higher priced contracts.
HALEU Update
On October 11, 2023, the Company
announced the beginning of enrichment operations, and on
November 7, 2023, it announced its
first delivery of 20 kilograms of HALEU UF6, completing
Phase 1 of the HALEU Operation Contract under budget and ahead of
schedule. In Phase 2 of the contract, which has a
cost-plus-incentive-fee structure, the contract calls for the
production of 900 kilograms of HALEU UF6. The DOE is
contractually required to provide storage cylinders ("5B Cylinders") necessary to collect the output of
the cascade, but supply chain challenges have created difficulties
for the DOE in securing 5B Cylinders
for the entire production year. Centrus anticipates that the delays
in obtaining 5B Cylinders will be
temporary, but no longer will deliver 900 kilograms of HALEU
UF6 originally anticipated for Phase 2 of the contract,
which extends to November 2024.
Pension Annuitization
On October 12, 2023, the Company
entered into an agreement with an insurer ("Insurer") for one of
its defined benefit plans to purchase a group annuity contract and
transferred approximately $186.5
million of its pension plan obligations to the Insurer. The
purchase of the group annuity contract was funded directly by
assets of the pension plan of approximately $171.4 million. The purchase resulted in a
transfer of benefit administrative responsibilities for
approximately 1,400 beneficiaries, effective December 1, 2023. The Company recorded income
related to the pension settlement in the fourth quarter of
$28.6 million which was included in
nonoperating components of net periodic benefit income in our
consolidated statements of operations.
About Centrus Energy Corp.
Centrus Energy is a trusted supplier of nuclear fuel components
and services for the nuclear power industry. Centrus provides value
to its utility customers through the reliability and diversity of
its supply sources – helping them meet the growing need for clean,
affordable, carbon-free electricity. Since 1998, the Company has
provided its utility customers with more than 1,750 reactor years
of fuel, which is equivalent to 7 billion tons of coal. With
world-class technical and engineering capabilities, Centrus is also
advancing the next generation of centrifuge technologies so that
America can restore its domestic uranium enrichment capability in
the future. Find out more at centrusenergy.com.
Forward-Looking Statements:
This news release contains "forward-looking statements" within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended, and the Private Securities Litigation Reform Act of
1995. In this context, forward-looking statements mean statements
related to future events, which may impact our expected future
business and financial performance, and often contain words such as
"expects", "anticipates", "intends", "plans", "believes", "will",
"should", "could", "would" or "may" and other words of similar
meaning. These forward-looking statements are based on information
available to us as of the date of this news release and represent
management's current views and assumptions with respect to future
events and operational, economic and financial performance.
Forward-looking statements are not guarantees of future
performance, events or results and involve known and unknown risks,
uncertainties and other factors, which may be beyond our
control.
For Centrus Energy Corp., particular risks and uncertainties
(hereinafter "risks") that could cause our actual future results to
differ materially from those expressed in our forward-looking
statements include but are not limited to the following and which
are, and may be, exacerbated by any worsening of the global
business and economic environment include but are not limited to
the following: risks related to the war in Ukraine and geopolitical conflicts and the
imposition of sanctions or other measures by (i) the U.S. or
foreign governments and institutions, (ii) organizations (including
the United Nations or other international organizations), or (iii)
entities (including private entities or persons), that could
directly or indirectly impact our ability to obtain, deliver,
transport or sell low enriched uranium ("LEU") or the Separative
Work Units ("SWU") and natural uranium hexafluoride components of
LEU delivered to us under our existing supply contract with the
Russian government-owned entity, TENEX, Joint-Stock Company
("TENEX") ("TENEX Supply Contract"), or make related payments or
deliveries of natural uranium hexafluoride to TENEX; risks related
to proposed legislation to ban imports of Russian LEU into
the United States or similar bills
become law and the potential inability to secure a waiver or other
exception from the ban in a timely manner or at all in order to
allow us to continue importing Russian LEU under the TENEX Supply
Contract; risks related to the refusal or inability of TENEX to
deliver LEU to us if, among other reasons, (i) U.S. or foreign
government sanctions are imposed on LEU from Russia or on TENEX, (ii) for any reason, TENEX
is unable or unwilling to deliver LEU, receive payments, receive
the return of natural uranium hexafluoride, or conduct other
activities related to the TENEX Supply Contract; or (iii) TENEX
elects, or is directed (including by its owner or the Russian
government), to limit or stop transactions with us or with
the United States or other
countries; risks related to disputes with third parties, including
contractual counterparties, that could result if we are unable to
receive timely deliveries of LEU under the TENEX Supply Contract;
risks related to whether or when government funding or demand for
high-assay low-enriched uranium ("HALEU") for government or
commercial uses will materialize and at what level; risks regarding
funding for continuation and deployment of the American Centrifuge
technology; risks related to (i) our ability to perform and absorb
costs under our agreement with the U.S. Department of Energy
("DOE") to deploy and operate a cascade of centrifuges to
demonstrate production of HALEU for advanced reactors (the "HALEU
Operation Contract"), (ii) our ability to obtain new contracts and
funding to be able to continue operations and (iii) our ability to
obtain and/or perform under other agreements; risks that (i) we may
not obtain the full benefit of the HALEU Operation Contract and may
not be able or allowed to operate the HALEU enrichment facility to
produce HALEU after the completion of the HALEU Operation Contract
or (ii) the HALEU enrichment facility may not be available to us as
a future source of supply; risks related to our dependence on
others, such as TENEX, under our commercial supply agreement with
TENEX, a subsidiary of Orano Cycle ("Orano"), under our long-term
commercial supply agreement with Orano and other suppliers
(including, but not limited to, transporters) who provide us the
goods and services we need to conduct our business; risks related
to natural and other disasters, including the continued impact of
the March 2011 earthquake and tsunami
in Japan on the nuclear industry
and on our business, results of operations and prospects; risks
related to financial difficulties experienced by customers or
suppliers, including possible bankruptcies, insolvencies, or any
other situation, event or occurrence that affect the ability of
others to pay for our products or services in a timely manner or at
all; risks related to pandemics, endemics, and other health crises;
risks related to the impact and potential extended duration of a
supply/demand imbalance in the market for LEU; risks related to our
ability to sell or deliver the LEU we procure pursuant to our
purchase obligations under our supply agreements and the impacts of
sanctions or limitations on imports of such LEU, including those
imposed under the 1992 Russian Suspension Agreement as amended,
international trade legislation and other international trade
restrictions; risks related to existing or new trade barriers and
to contract terms that limit our ability to procure LEU for, or
deliver LEU to customers; risks related to pricing trends and
demand in the uranium and enrichment markets and their impact on
our profitability; risks related to the movement and timing of
customer orders; risks related to the fact that we face significant
competition from major LEU producers who may be less cost sensitive
or are wholly or partially government owned; risks that our ability
to compete in foreign markets may be limited for various reasons;
risks related to the fact that our revenue is largely dependent on
our largest customers; risks related to our sales order book,
including uncertainty concerning customer actions under current
contracts and in future contracting due to market conditions,
global events or other factors including our lack of current
production capability; risks related to uncertainty regarding our
ability to commercially deploy competitive enrichment technology;
risks related to the potential for demobilization or termination of
the HALEU Operation Contract; risks that we will not be able to
timely complete the work that we are obligated to perform; risks
related to the government's inability to satisfy its obligations,
including supplying government furnished equipment necessary for us
to produce and deliver HALEU under the HALEU Operation Contract and
processing security clearance applications due to a government
shutdown or other reasons; risks related to our ability to obtain
the government's approval to extend the term of, or the scope of
permitted activities under, our lease in Piketon, Ohio; risk related to cybersecurity
incidents that may impact our business operations; risks related to
our ability to perform fixed-price and cost-share contracts such as
the HALEU Operation Contract, including the risk that costs that we
must bear could be higher than expected and the risk related to
complying with stringent government contractual requirements; risks
related to a government shutdown that could result in program
cancellations, disruptions and/or stop work orders and could limit
the U.S. government's ability to make timely payments, and our
ability to perform our U.S. government contracts and successfully
compete for our work; risks related to our significant long-term
liabilities, including material unfunded defined benefit pension
plan obligations and postretirement health and life benefit
obligations; risks related to our 8.25% Notes maturing in
February 2027; risks of revenue and
operating results fluctuating significantly from quarter to
quarter, and in some cases, year to year; risks related to the
impact of financial market conditions on our business, liquidity,
prospects, pension assets and insurance facilities; risks related
to the Company's capital concentration; risks related to the value
of our intangible assets related to the sales order book and
customer relationships; risks related to the limited trading
markets in our securities; risks related to decisions made by our
Class B Common Stock stockholders regarding their investment in the
Company, including decisions based upon factors that are unrelated
to the Company's performance; risks that a small number of holders
of our Class A Common Stock (whose interests may not be aligned
with other holders of our Class A Common Stock), may exert
significant influence over the direction of the Company and may be
motivated by interests that are not aligned with the Company's
other Class A stockholders; risks related to (i) the use of our net
operating losses ("NOLs") carryforwards and net unrealized built-in
losses ("NUBILs") to offset future taxable income and the use of
the Rights Agreement, dated as of April 6,
2016 to prevent an "ownership change" as defined in Section
382 of the Internal Revenue Code of 1986, as amended (the "Code")
and (ii) our ability to generate taxable income to utilize all or a
portion of the NOLs prior to the expiration thereof and NUBILs;
risks related to failures or security breaches of our information
technology systems; risks related to our ability to attract and
retain key personnel; risks related to actions, including reviews
or audits, that may be taken by the U.S. government, the Russian
government, or other governments that could affect our ability to
perform under our contractual obligations or the ability of our
sources of supply to perform under their contractual obligations to
us; risks related to our ability to perform and receive timely
payment under our agreements with the DOE or other government
agencies, including risks related to the ongoing funding by the
government and potential audits; risks related to changes or
termination of our agreements with the U.S. government or other
counterparties, or the exercise of contract remedies by such
counterparties; risks related to the competitive environment for
our products and services; risks related to changes in the nuclear
energy industry; risks related to the competitive bidding process
associated with obtaining contracts, including government
contracts; risks that we will be unable to obtain new business
opportunities or achieve market acceptance of our products and
services or that products or services provided by others will
render our products or services obsolete or noncompetitive; risks
related to potential strategic transactions that could be difficult
to implement, that could disrupt our business or that could change
our business profile significantly; risks related to the outcome of
legal proceedings and other contingencies (including lawsuits and
government investigations or audits); risks related to the impact
of government regulation and policies including by the DOE and the
U.S. Nuclear Regulatory Commission; risks of accidents during the
transportation, handling, or processing of toxic hazardous or
radioactive material that may pose a health risk to humans or
animals, cause property or environmental damage, or result in
precautionary evacuations, and lead to claims against the Company;
risks associated with claims and litigation arising from past
activities at sites we currently operate or past activities at
sites that we no longer operate, including the Paducah, Kentucky, and Portsmouth, Ohio, gaseous diffusion plants;
and other risks discussed in this news release and in our filings
with the SEC.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which apply only as of the date of this
news release. These factors may not constitute all factors that
could cause actual results to differ from those discussed in any
forward-looking statement. Accordingly, forward-looking statements
should not be relied upon as a predictor of actual
results. Readers are urged to carefully review and consider
the various disclosures made in this news release and in our
filings with the SEC, including our Annual report on Form 10-K for
the year ended December 31,
2023, and our filings with the SEC that attempt to advise
interested parties of the risks and factors that may affect our
business. We do not undertake to update our forward-looking
statements to reflect events or circumstances that may arise after
the date of this news release, except as required by law.
Contacts:
Investors: Dan Leistikow at
LeistikowD@centrusenergy.com
Media: Lindsey Geisler at
GeislerLR@centrusenergy.com
CENTRUS ENERGY CORP.
ADJUSTED NET INCOME PER SHARE
RECONCILIATION TABLE
The Company measures Net Income and Net Income per Share both on
a GAAP basis and on an adjusted basis to exclude deemed dividends
allocable to retired preferred stock shares and the warrant
modification ("Adjusted Net Income" and "Adjusted Net Income per
Share"). We believe Adjusted Net Income and Adjusted Net Income per
Share, which are non-GAAP financial measures, provide investors
with additional understanding of the Company's financial
performance as well as its strategic financial planning analysis
and period-to-period comparability. These metrics are useful to
investors because they reflect how management evaluates the
Company's ongoing operating performance from period-to-period after
removing certain transactions and activities that affect
comparability of the metrics and are not reflective of the
Company's core operations.
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2023
|
|
2022
|
|
2021
|
|
2023
|
|
2022
|
|
2021
|
Numerator (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 56.3
|
|
$ 21.3
|
|
$
116.2
|
|
$ 84.4
|
|
$ 52.2
|
|
$
175.0
|
Less: Distributed
earnings allocable to warrant modification
|
—
|
|
1.5
|
|
—
|
|
—
|
|
1.5
|
|
—
|
Less: Preferred stock
dividends - undeclared and cumulative
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2.1
|
Less: Distributed
earnings allocable to retired preferred shares
|
—
|
|
—
|
|
31.0
|
|
—
|
|
—
|
|
37.6
|
Net income
allocable to common stockholders
|
$
56.3
|
|
$
19.8
|
|
$
85.2
|
|
$
84.4
|
|
$
50.7
|
|
$
135.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Distributed
earnings allocable to warrant modification
|
$
—
|
|
$
1.5
|
|
$
—
|
|
$
—
|
|
$
1.5
|
|
$
—
|
Plus: Distributed
earnings allocable to retired preferred shares
|
—
|
|
—
|
|
31.0
|
|
—
|
|
—
|
|
37.6
|
Adjusted net
income, including distributed earnings
allocable to retired preferred shares and
warrant
modification (Non-GAAP)
|
$
56.3
|
|
$
21.3
|
|
$
116.2
|
|
$
84.4
|
|
$
52.2
|
|
$
172.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic
|
15,461
|
|
14,648
|
|
13,873
|
|
15,212
|
|
14,601
|
|
13,493
|
Average common shares
outstanding - diluted
|
15,732
|
|
15,029
|
|
14,278
|
|
15,501
|
|
14,988
|
|
13,879
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per
Share (in dollars):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 3.64
|
|
$ 1.35
|
|
$ 6.14
|
|
$ 5.55
|
|
$ 3.47
|
|
$
10.03
|
Diluted
|
$ 3.58
|
|
$ 1.32
|
|
$ 5.97
|
|
$ 5.44
|
|
$ 3.38
|
|
$ 9.75
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Effect of
distributed earnings allocable to retired
preferred shares and warrant modification, per common
share (in dollars):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
—
|
|
$ 0.10
|
|
$ 2.24
|
|
$
—
|
|
$ 0.11
|
|
$ 2.78
|
Diluted
|
$
—
|
|
$ 0.10
|
|
$ 2.17
|
|
$
—
|
|
$ 0.10
|
|
$ 2.71
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income per
Share (Non-GAAP) (in dollars):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 3.64
|
|
$ 1.45
|
|
$ 8.38
|
|
$ 5.55
|
|
$ 3.58
|
|
$
12.81
|
Diluted
|
$ 3.58
|
|
$ 1.42
|
|
$ 8.14
|
|
$ 5.44
|
|
$ 3.48
|
|
$
12.46
|
CENTRUS ENERGY
CORP
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited; in
millions, except share and per share data)
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2023
|
|
2022
|
|
2021
|
|
2023
|
|
2022
|
|
2021
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Separative work
units
|
$
60.8
|
|
$
90.2
|
|
$
60.9
|
|
$
208.2
|
|
$
196.2
|
|
$
163.3
|
Uranium
|
21.3
|
|
22.0
|
|
9.9
|
|
60.8
|
|
39.4
|
|
22.8
|
Technical
solutions
|
21.5
|
|
14.0
|
|
18.2
|
|
51.2
|
|
58.2
|
|
112.2
|
Total
revenue
|
103.6
|
|
126.2
|
|
89.0
|
|
320.2
|
|
293.8
|
|
298.3
|
Cost of
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
Separative work units
and uranium
|
37.8
|
|
45.2
|
|
37.0
|
|
163.9
|
|
105.0
|
|
113.1
|
Technical
solutions
|
16.0
|
|
32.6
|
|
15.8
|
|
44.2
|
|
70.9
|
|
70.7
|
Total cost of
sales
|
53.8
|
|
77.8
|
|
52.8
|
|
208.1
|
|
175.9
|
|
183.8
|
Gross profit
|
49.8
|
|
48.4
|
|
36.2
|
|
112.1
|
|
117.9
|
|
114.5
|
Advanced technology
costs
|
3.4
|
|
4.8
|
|
0.8
|
|
14.2
|
|
14.8
|
|
2.1
|
Selling, general and
administrative
|
8.2
|
|
9.5
|
|
11.0
|
|
35.6
|
|
33.9
|
|
36.0
|
Amortization of
intangible assets
|
2.1
|
|
2.8
|
|
2.7
|
|
6.3
|
|
9.0
|
|
8.1
|
Special charges for
workforce reductions
|
3.5
|
|
—
|
|
—
|
|
3.6
|
|
0.5
|
|
—
|
Operating
income
|
32.6
|
|
31.3
|
|
21.7
|
|
52.4
|
|
59.7
|
|
68.3
|
Nonoperating
components of net periodic benefit expense (income)
|
(23.3)
|
|
4.5
|
|
(54.7)
|
|
(23.2)
|
|
(6.6)
|
|
(67.6)
|
Interest
expense
|
0.4
|
|
0.4
|
|
0.1
|
|
1.3
|
|
0.5
|
|
0.1
|
Investment
income
|
(2.3)
|
|
(1.2)
|
|
(0.1)
|
|
(8.7)
|
|
(2.0)
|
|
(0.1)
|
Other income,
net
|
(0.5)
|
|
—
|
|
—
|
|
(1.5)
|
|
—
|
|
—
|
Income before income
taxes
|
58.3
|
|
27.6
|
|
76.4
|
|
84.5
|
|
67.8
|
|
135.9
|
Income tax expense
(benefit)
|
2.0
|
|
6.3
|
|
(39.8)
|
|
0.1
|
|
15.6
|
|
(39.1)
|
Net income and
comprehensive income
|
56.3
|
|
21.3
|
|
116.2
|
|
84.4
|
|
52.2
|
|
175.0
|
Distributed earnings
allocable to warrant modification
|
—
|
|
1.5
|
|
—
|
|
—
|
|
1.5
|
|
—
|
Preferred stock
dividends - undeclared and cumulative
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2.1
|
Distributed earnings
allocable to retired preferred shares
|
—
|
|
—
|
|
31.0
|
|
—
|
|
—
|
|
37.6
|
Net income allocable to
common stockholders
|
$
56.3
|
|
$
19.8
|
|
$
85.2
|
|
$
84.4
|
|
$
50.7
|
|
$
135.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
3.64
|
|
$
1.35
|
|
$
6.14
|
|
$
5.55
|
|
$
3.47
|
|
$
10.03
|
Diluted
|
$
3.58
|
|
$
1.32
|
|
$
5.97
|
|
$
5.44
|
|
$
3.38
|
|
$
9.75
|
Average number of
common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
15,461
|
|
14,648
|
|
13,873
|
|
15,212
|
|
14,601
|
|
13,493
|
Diluted
|
15,732
|
|
15,029
|
|
14,278
|
|
15,501
|
|
14,988
|
|
13,879
|
CENTRUS ENERGY
CORP
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited; in
millions)
|
|
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2021
|
OPERATING
|
|
|
|
|
|
Net income
|
$
84.4
|
|
$
52.2
|
|
$ 175.0
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
7.1
|
|
9.6
|
|
8.6
|
Accrued loss on
long-term contract
|
(20.0)
|
|
19.5
|
|
(7.2)
|
Deferred tax
assets
|
(1.6)
|
|
14.7
|
|
(39.5)
|
Retirement benefit
plans (gains) losses, net
|
(24.6)
|
|
7.8
|
|
(50.5)
|
Revaluation of
inventory borrowing
|
7.4
|
|
8.0
|
|
4.8
|
Equity-related
compensation
|
2.3
|
|
1.9
|
|
12.1
|
Other reconciling
adjustments, net
|
(1.6)
|
|
—
|
|
—
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
(11.3)
|
|
(9.0)
|
|
0.5
|
Inventories
|
(83.8)
|
|
(88.5)
|
|
(14.2)
|
Inventories owed to
customers and suppliers
|
23.5
|
|
52.4
|
|
3.5
|
Other current
assets
|
14.9
|
|
(15.6)
|
|
(1.0)
|
Payables under
inventory purchase agreements
|
(1.7)
|
|
5.7
|
|
16.6
|
Deferred revenue and
advances from customers, net of deferred costs
|
12.1
|
|
(22.5)
|
|
13.2
|
Accounts payable and
other liabilities
|
8.5
|
|
2.6
|
|
(4.6)
|
Pension and
postretirement liabilities
|
(5.7)
|
|
(18.1)
|
|
(67.0)
|
Other changes,
net
|
(0.8)
|
|
(0.1)
|
|
(0.3)
|
Cash provided by
operating activities
|
9.1
|
|
20.6
|
|
50.0
|
|
|
|
|
|
|
INVESTING
|
|
|
|
|
|
Capital
expenditures
|
(1.6)
|
|
(0.7)
|
|
(1.2)
|
Cash used in investing
activities
|
(1.6)
|
|
(0.7)
|
|
(1.2)
|
|
|
|
|
|
|
FINANCING
|
|
|
|
|
|
Proceeds from the
issuance of common stock, net
|
23.2
|
|
3.6
|
|
42.1
|
Redemption of preferred
stock, net
|
—
|
|
—
|
|
(44.4)
|
Payment of interest
classified as debt
|
(6.1)
|
|
(6.1)
|
|
(6.1)
|
Exercise of stock
options
|
—
|
|
0.4
|
|
0.9
|
Withholding of shares
to fund grantee tax obligations under stock-based compensation
plan
|
(3.0)
|
|
(1.9)
|
|
(2.4)
|
Other
|
(0.2)
|
|
(0.3)
|
|
—
|
Cash provided by (used
in) financing activities
|
13.9
|
|
(4.3)
|
|
(9.9)
|
|
|
|
|
|
|
Increase in cash, cash
equivalents and restricted cash
|
21.4
|
|
15.6
|
|
38.9
|
Cash, cash equivalents
and restricted cash, beginning of period
|
212.4
|
|
196.8
|
|
157.9
|
Cash, cash equivalents
and restricted cash, end of period
|
$ 233.8
|
|
$ 212.4
|
|
$ 196.8
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2021
|
Supplemental cash flow
information:
|
|
|
|
|
|
Non-cash
activities:
|
|
|
|
|
|
Property, plant and
equipment included in accounts payable and accrued
liabilities
|
$
0.9
|
|
$
0.2
|
|
$
—
|
Equity transaction
costs included in accounts payable and accrued
liabilities
|
$
—
|
|
$
0.2
|
|
$
0.4
|
Adjustment to right to
use lease assets from lease modification
|
$
(4.2)
|
|
$
6.6
|
|
$
—
|
Disposal of right to
use lease assets from lease modification
|
$
—
|
|
$
—
|
|
$
1.0
|
Reclassification of
equity compensation liability to equity
|
$
—
|
|
$
10.6
|
|
$
7.5
|
Common stock and
warrant issued in exchange for preferred stock
|
$
—
|
|
$
—
|
|
$
7.5
|
Distributed earnings
allocable to warrant modification
|
$
—
|
|
$
1.5
|
|
$
—
|
CENTRUS ENERGY
CORP
CONSOLIDATED BALANCE
SHEETS
Unaudited; in
millions, except share and per share data)
|
|
|
|
December
31,
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
201.2
|
|
$
179.9
|
Accounts
receivable
|
49.4
|
|
38.1
|
Inventories
|
306.4
|
|
209.2
|
Deferred costs
associated with deferred revenue
|
117.6
|
|
135.7
|
Other current
assets
|
10.8
|
|
24.2
|
Total current
assets
|
685.4
|
|
587.1
|
Property, plant and
equipment, net
|
7.0
|
|
5.5
|
Deposits for financial
assurance
|
32.4
|
|
32.3
|
Intangible assets,
net
|
39.4
|
|
45.7
|
Deferred tax assets,
net
|
28.5
|
|
26.8
|
Other long-term
assets
|
3.5
|
|
8.1
|
Total assets
|
$
796.2
|
|
$
705.5
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
56.2
|
|
$
65.5
|
Payables under
inventory purchase agreements
|
41.9
|
|
43.6
|
Inventories owed to
customers and suppliers
|
84.3
|
|
60.8
|
Deferred revenue and
advances from customers
|
282.6
|
|
273.2
|
Current
debt
|
6.1
|
|
6.1
|
Total current
liabilities
|
471.1
|
|
449.2
|
Long-term
debt
|
89.6
|
|
95.7
|
Postretirement health
and life benefit obligations
|
81.2
|
|
84.5
|
Pension benefit
liabilities
|
17.3
|
|
43.6
|
Advances from
customers
|
32.8
|
|
46.2
|
Long-term inventory
loans
|
63.1
|
|
48.7
|
Other long-term
liabilities
|
8.8
|
|
11.7
|
Total
liabilities
|
763.9
|
|
779.6
|
|
|
|
|
Stockholders' equity
(deficit):
|
|
|
|
Preferred stock, par
value $1.00 per share, 20,000,000 shares authorized
|
|
|
|
Series A Participating
Cumulative Preferred Stock, none issued
|
—
|
|
—
|
Series B Senior
Preferred Stock, none issued
|
—
|
|
—
|
Class A Common Stock,
par value $0.10 per share, 70,000,000 shares authorized,
14,956,434 and 13,919,646 shares issued and
outstanding as of December 31,
2023 and December 31, 2022,
respectively
|
1.5
|
|
1.4
|
Class B Common Stock,
par value $0.10 per share, 30,000,000 shares authorized,
719,200 shares issued and outstanding as of
December 31, 2023 and
December 31, 2022
|
0.1
|
|
0.1
|
Excess of capital over
par value
|
180.5
|
|
158.1
|
Accumulated
deficit
|
(149.5)
|
|
(233.9)
|
Accumulated other
comprehensive income (loss)
|
(0.3)
|
|
0.2
|
Total stockholders'
equity (deficit)
|
32.3
|
|
(74.1)
|
Total liabilities and
stockholders' equity (deficit)
|
$
796.2
|
|
$
705.5
|
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SOURCE Centrus Energy Corp.