BETHESDA, Md., Nov. 18, 2024 /PRNewswire/ -- Centrus Energy (NYSE American: LEU) today announced that it has appointed Neal Nagarajan as Senior Vice President and Head of Investor Relations effective today.In this role, Nagarajan will be responsible for maintaining and expanding relationships in the investment community while communicating the company's business model, long-term strategy, governance, and financial performance."Neal is an experienced leader and investor relations professional who will be an ...

Investment Strategy - Michael Wiggins De Oliveira is an inflection investor, focusing on buying cheap companies when their narrative is changing and they are on a path to becoming significantly more profitable within the next year [1] - The investment strategy is concentrated, with a portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] Industry Focus - The investment focus is on the tech sector and "the Great Energy Transition," which includes uranium [1] Professional Experience - Michael has over 10 years of experience analyzing companies, with significant expertise in tech and energy [2] - He has a following of over 40K on Seeking Alpha [2] Investment Group - Michael leads the investing group Deep Value Returns, which provides insights through a concentrated portfolio of value stocks, timely updates on stock picks, a weekly webinar for live advice, and support for both new and experienced investors [2] - The group has an active, vibrant, and kind community accessible via chat [2] Affiliation - Seeking FCF is an associate of Michael Wiggins De Oliveira [3]

BETHESDA, Md. , Nov. 5, 2024 /PRNewswire/ -- Centrus Energy Corp. (NYSE American: LEU) ("Centrus") today announced the pricing of $350 million aggregate principal amount of 2.25% Convertible Senior Notes due 2030 (the "Notes") in a private offering (the "Offering") to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). In connection with the Offering, Centrus has granted the initial purchasers of the Note ...

BETHESDA, Md., Nov. 4, 2024 /PRNewswire/ -- Centrus Energy Corp. (NYSE American: LEU) ("Centrus") today announced its intention to offer, subject to market conditions and other factors, $350 million aggregate principal amount of Convertible Senior Notes due 2030 (the "Notes") in a private offering (the "Offering") to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). In connection with the Offering, Cent ...

Geopolitical and Supply Chain Risks - Risks related to the war in Ukraine and geopolitical conflicts, including potential sanctions or bans impacting the company's ability to obtain, deliver, or sell LEU under the TENEX Supply Contract[12] - Risks related to laws banning imports of Russian LEU into the United States, including the Import Ban Act, and transactions with Rosatom or its subsidiaries[12] - Risks related to the company's dependence on suppliers like TENEX and Orano, and potential negative impacts on liquidity due to supply chain disruptions[14] - Risks related to increasing quantities of LEU being imported into the U.S. from China, impacting future sales and financing for enrichment capacity expansion[14] Government Funding and Contract Risks - Risks related to government funding or demand for HALEU for government or commercial uses, and uncertainties around funding for American Centrifuge technology[14] - Risks related to DOE not issuing task orders under HALEU or Deconversion contracts, or not providing adequate funding for the company's expansion plans[15][16] - The HALEU Operation Contract has a base value of approximately $150 million, with Phase 1 completed and Phase 2 expected to produce 900 kilograms of HALEU UF6 annually[44] - The DOE modified the HALEU Operation Contract to include an additional $6.2 million for infrastructure and facility repairs[46] Financial Performance and Liquidity - Total revenue for the nine months ended September 30, 2024, was $290.4 million, compared to $216.6 million in the same period in 2023, representing a 34.1% increase[25] - Net income for the nine months ended September 30, 2024, was $19.5 million, compared to $28.1 million in the same period in 2023, a decrease of 30.6%[25] - Gross profit for the nine months ended September 30, 2024, was $49.7 million, compared to $62.3 million in the same period in 2023, a decrease of 20.2%[25] - Cash and cash equivalents decreased to $194.3 million as of September 30, 2024, from $201.2 million as of December 31, 2023, a decrease of 3.4%[24] - Cash used in operating activities for the nine months ended September 30, 2024, was $20.9 million, compared to $8.8 million in the same period in 2023, indicating a significant increase in cash outflow[27] - Capital expenditures for the nine months ended September 30, 2024, were $3.4 million, compared to $1.1 million in the same period in 2023, showing a 209% increase[27] - Cash provided by financing activities for the nine months ended September 30, 2024, was $17.4 million, compared to $13.9 million in the same period in 2023, reflecting a 25.2% increase[27] Legal and Regulatory Risks - Risks related to legal proceedings, government investigations, and potential claims or litigation arising from past activities at operational sites[21] - The Company is assessing DOE's claim of approximately $9.6 million related to the Joppa Power Plant D&D costs[103] - The Company believes that any liability from legal proceedings should be indemnified under the Price-Anderson Act[105][106][107][109] Pension and Postretirement Benefits - Risks related to the company's long-term liabilities, including unfunded pension plan obligations and postretirement health and life benefit obligations[17] - Net periodic benefit costs for defined benefit pension plans were $0.4 million for the three months ended September 30, 2024, compared to $(1.0) million for the same period in 2023[69] - Net periodic benefit costs for the postretirement health and life benefit plan were $1.1 million for the three months ended September 30, 2024, unchanged from the same period in 2023[70] - The company's defined benefit obligations for its pension plans was $527.3 million at December 31, 2022, with $30.6 million related to a specific plan, resulting in a net actuarial gain of $0.9 million for the three and nine months ended September 30, 2023[71] - The company transferred $186.5 million of pension plan obligations to an insurer, funded by $171.4 million of pension plan assets, resulting in a transfer of liabilities for approximately 1,400 participants and recording $28.6 million in income in Q4 2023[72] - In Q2 2024, the company transferred $234 million of pension plan obligations to an insurer, funded by $224 million of pension plan assets, affecting over 1,000 participants[73] - In Q3 2024, the company transferred $15.4 million of pension plan assets and related obligations, affecting over 400 participants, resulting in net actuarial gains of $0.2 million and $16.8 million for the three and nine months ended September 30, 2024[74][75] Revenue and Segment Performance - Revenue from SWU and uranium sales in the United States for the three months ended September 30, 2024, was $16.9 million, compared to $34.8 million in foreign markets[37] - Total revenue from SWU and uranium sales for the nine months ended September 30, 2024, was $228.0 million, compared to $186.9 million for the same period in 2023[37] - Revenue from the LEU segment for the nine months ended September 30, 2024, was $228.0 million, compared to $186.9 million in the same period in 2023[111] - Revenue from the Technical Solutions segment for the nine months ended September 30, 2024, was $62.4 million, compared to $29.7 million in the same period in 2023[111] - Gross profit for the LEU segment for the nine months ended September 30, 2024, was $38.7 million, compared to $60.8 million in the same period in 2023[111] - Gross profit for the Technical Solutions segment for the nine months ended September 30, 2024, was $11.0 million, compared to $1.5 million in the same period in 2023[111] - One customer in the LEU segment represented $34.8 million of revenue in the three months ended September 30, 2024[113] - Four customers in the LEU segment represented $69.3 million, $42.3 million, $35.4 million, and $30.2 million of revenue in the nine months ended September 30, 2024[113] - One customer in the Technical Solutions segment represented $21.6 million and $60.3 million of revenue in the three and nine months ended September 30, 2024, respectively[113] Inventory and Asset Management - Inventories decreased to $190.7 million as of September 30, 2024, from $306.4 million as of December 31, 2023, a decrease of 37.8%[24] - The Company borrowed UF valued at $22.5 million in March 2023, recorded to inventory based on estimated fair market value[59] - Inventories, net increased to $222.1 million as of December 31, 2023, from $189.9 million as of September 30, 2024[58] - Intangible assets decreased to $32.2 million as of September 30, 2024, from $39.4 million as of December 31, 2023[61] Debt and Equity - Long-term debt decreased to $83.5 million as of September 30, 2024, from $89.6 million as of December 31, 2023, a decrease of 6.8%[24] - Total debt for 8.25% Notes decreased to $89.6 million as of December 31, 2023, from $83.5 million as of September 30, 2024[63] - The carrying value of 8.25% Notes decreased to $89.6 million as of September 30, 2024, from $95.7 million as of December 31, 2023[67] - Total stockholders' equity increased to $76.4 million as of September 30, 2024, from $32.3 million as of December 31, 2023, an increase of 136.5%[24] - Issuance of common stock for the nine months ended September 30, 2024, totaled $24.0 million, compared to $23.2 million in the same period in 2023[27][30] - The company sold 115,661 and 567,491 shares of Class A Common Stock in Q3 and nine months ended September 30, 2024, respectively, generating $4.6 million and $24.5 million in proceeds[83] Tax and Compensation - The company released $7.7 million of the valuation allowance against federal net deferred taxes in Q3 2023 due to increased forecasted future income in the LEU segment[78] - The company withheld $1.9 million of shares in Q1 2023 and $0.1 million in Q1 2024 to fund tax withholding obligations under its stock-based compensation plan[92][93] - Stock-based compensation for the nine months ended September 30, 2024, was $1.1 million, compared to $2.0 million in the same period in 2023, reflecting a 45% decrease[27] Competitive and Industry Risks - Risks related to the competitive environment for the company's products and services, including potential changes in the nuclear energy industry[20] - The Orano Supply Agreement provides flexibility to adjust purchase volumes, with annual minimums and maximums in fixed amounts that vary year by year[99] Cybersecurity Risks - Risks related to cybersecurity incidents that may impact the company's business operations and ability to perform under government contracts[16] Customer Concentration - One customer in the LEU segment represented $34.8 million of revenue in the three months ended September 30, 2024[113] - Four customers in the LEU segment represented $69.3 million, $42.3 million, $35.4 million, and $30.2 million of revenue in the nine months ended September 30, 2024[113] - One customer in the Technical Solutions segment represented $21.6 million and $60.3 million of revenue in the three and nine months ended September 30, 2024, respectively[113] Remaining Performance Obligations - The company's remaining performance obligations as of September 30, 2024, were $0.8 billion, extending to 2030[49] Tax Benefits and Agreements - The company entered into a Sixth Amendment to the Section 382 Rights Agreement on May 28, 2024, to preserve the long-term value of its NOL carry-forwards and other tax benefits[87][89] Financial Assurance and Deposits - Total deposits for financial assurance increased to $32.4 million as of December 31, 2023, compared to $30.0 million as of September 30, 2024[55] Net Income and Earnings Per Share - Net income (loss) per share for Q3 2024 was $(0.30) (basic) and $(0.30) (diluted), while for the nine months ended September 30, 2024, it was $1.21 (basic) and $1.20 (diluted)[81] Accounts Receivable and Deferred Revenue - Accounts receivable as of September 30, 2024, were $19.1 million, down from $49.4 million as of December 31, 2023[39] - Deferred revenue for the current period as of September 30, 2024, was $189.8 million, a decrease of $62.6 million from December 31, 2023[40]

Financial Data and Key Metrics - Revenue for Q3 2024 was $57.7 million, a $6.4 million increase compared to the same quarter in the prior year [28] - Gross profit for Q3 2024 was $8.9 million, a slight decrease from $11.3 million in the prior year [30] - Net loss for Q3 2024 was $5 million, compared to net income of $8.2 million in the prior year [28] - LEU segment revenue was $34.8 million, a decrease of $5.7 million compared to Q3 2023, due to a decrease in SWU volume sold, partially offset by an increase in average SWU price [28] - Technical Solutions segment revenue was $22.9 million, an increase of $12.1 million compared to Q3 2023 [30] Business Line Data and Key Metrics - LEU segment gross profit was $5.2 million, down from $10.1 million in Q3 2023, due to lower sales volume and higher average SWU cost [29] - Technical Solutions segment gross profit was $3.7 million, an improvement of $2.5 million compared to Q3 2023 [29] - The company has a total backlog of $3.8 billion as of September 30, 2024, extending to 2040 [32] - LEU segment backlog is approximately $2.8 billion, including future SWU and uranium deliveries under medium and long-term contracts [32] - Technical Solutions segment backlog is approximately $0.9 billion, including funded amounts, unfunded amounts, and unexercised options [33] Market Data and Key Metrics - The company is the only licensed and operating HALEU production facility in the Western world, located in Piketon, Ohio [13] - The Department of Energy selected the company for a 10-year HALEU production award with a total contract ceiling of $2.7 billion [14] - The company has secured $2 billion in customer commitments to support new LEU production capacity in Piketon, contingent on final contracts and securing public and private investment [19][31] Company Strategy and Industry Competition - The company is focused on restoring America's nuclear fuel supply chain, leveraging its American technology, workforce, and supply chain [39][40] - The company is the only publicly-traded uranium enrichment company with American technology, competing against foreign, government-owned entities [18][39] - The company is positioning itself to capitalize on the $3.4 billion appropriated by Congress for domestic nuclear fuel production [38] Management Commentary on Operating Environment and Future Outlook - The company sees growing momentum in the nuclear energy sector, driven by investments from major tech companies and government commitments to nuclear energy [8][9] - The company believes its annual results are more indicative of progress due to the nature of its contract cycles, which cause quarter-to-quarter fluctuations [10][11] - The company is optimistic about the future, given the increasing demand for nuclear fuel from both LEU and HALEU reactors [25][26] Other Important Information - The company raised $4.5 million through its ATM program in Q3 2024, bringing total year-end proceeds to $23.8 million [34] - The company ended Q3 2024 with $194.3 million in cash and $32.6 million in restricted cash, totaling $226.9 million [34] - The company reduced its pension plan obligations by $21 million in Q3 2024, leaving $29 million remaining [35][36] Q&A Session Summary Question: Next steps and timing for HALEU contracts - The timing for next steps on HALEU contracts is uncertain and depends on the Department of Energy's discretion [44][45] Question: Impact of new demand sources on the market - The company views the growing demand for nuclear energy favorably, as it strengthens its business case and unique market positioning [46][47] Question: Structure of newly awarded contracts - The newly awarded contracts could be structured as fixed price, cost reimbursable, or other types, depending on the Department of Energy's discretion [50][51] Question: LEU segment margin trends - LEU segment margins have been lower due to the roll-off of high-margin contracts signed in previous years, but the company expects solid margins going forward [52][53][54] Question: Details on new contingent LEU sales commitments - The company has secured $2 billion in contingent LEU sales commitments, including an agreement with KHNP, but most customer identities remain confidential [57][58][60] Question: Timeline for LEU and HALEU production at Piketon - The company will provide further details on the timeline for LEU and HALEU production at Piketon, as it depends on funding and alignment of both projects [61] Question: Status of the current HALEU contract - The current HALEU contract expires in November 2024, and the company is working with the Department of Energy to extend it [63][64]

Core Insights - Centrus Energy Corp. reported a quarterly loss of $0.30 per share, missing the Zacks Consensus Estimate of $0.18, and a significant decline from earnings of $0.52 per share a year ago, resulting in an earnings surprise of -266.67% [1] - The company achieved revenues of $57.7 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 2.12% and showing an increase from $51.3 million in the same quarter last year [2] - Centrus Energy shares have increased approximately 58% year-to-date, outperforming the S&P 500's gain of 21.8% [3] Earnings Outlook - The earnings outlook for Centrus Energy is favorable, with current consensus EPS estimates of $1.36 on revenues of $110.6 million for the upcoming quarter and $3.06 on revenues of $399.8 million for the current fiscal year [7] - The company has surpassed consensus EPS estimates two times over the last four quarters and has topped consensus revenue estimates three times during the same period [2] Industry Context - The Mining - Non Ferrous industry, to which Centrus Energy belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a strong industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Centrus Energy's stock performance [5]

Financial Performance - Centrus reported a net loss of $5.0 million on revenue of $57.7 million for Q3 2024, compared to a net income of $8.2 million on revenue of $51.3 million in Q3 2023[1]. - Total revenue for the three months ended September 30, 2024, was $57.7 million, an increase from $51.3 million in the same period of 2023, representing a growth of 8.3%[19]. - Net income for the nine months ended September 30, 2024, was $19.5 million, a decrease from $28.1 million in the same period of 2023, representing a decline of approximately 30%[20]. - Operating loss for the three months ended September 30, 2024, was $(7.6) million, compared to an operating loss of $(2.9) million in Q3 2023[19]. - Gross profit for Q3 2024 was $8.9 million, down from $11.3 million in Q3 2023, a decrease of 21.2%[19]. Revenue Segments - Total revenue increased by $6.4 million year-over-year, with LEU segment revenue decreasing by $5.7 million to $34.8 million, while Technical Solutions segment revenue increased by $12.1 million to $22.9 million[3][4]. - Separative work units revenue decreased to $34.8 million in Q3 2024 from $40.5 million in Q3 2023, a decline of 14.1%[19]. - Technical solutions revenue increased significantly to $22.9 million in Q3 2024 from $10.8 million in Q3 2023, a growth of 112.0%[19]. Costs and Expenses - Cost of sales for the LEU segment decreased to $29.6 million from $30.4 million year-over-year, while Technical Solutions segment costs increased to $19.2 million from $9.6 million[5][6]. - Total cost of sales for the three months ended September 30, 2024, was $48.8 million, compared to $40.0 million in the same period of 2023, an increase of 22.0%[19]. - The company reported advanced technology costs of $4.1 million in Q3 2024, up from $3.3 million in Q3 2023[19]. Backlog and Commitments - The company's backlog stands at $3.8 billion as of September 30, 2024, with approximately $2.8 billion in the LEU segment and $0.9 billion in the Technical Solutions segment[11]. - Centrus has secured $2.0 billion in new contingent commitments for LEU production, bringing total commitments to $2.0 billion year-to-date[1][2]. - Centrus was selected by the DOE for HALEU production and deconversion contracts, with a minimum contract value of $2.0 million and a total ceiling of $2.7 billion for all awardees[8][9]. Assets and Liabilities - Total current assets decreased to $516.9 million as of September 30, 2024, down from $685.4 million at the end of 2023, reflecting a reduction of about 24.6%[21]. - Total liabilities decreased to $514.6 million as of September 30, 2024, down from $763.9 million at the end of 2023, representing a reduction of about 32.6%[22]. - Deferred revenue and advances from customers decreased to $222.6 million from $282.6 million, a decline of approximately 21.3%[22]. - The total stockholders' equity increased to $76.4 million as of September 30, 2024, up from $32.3 million at the end of 2023, reflecting a growth of approximately 136.6%[22]. Cash Flow - Cash used in operating activities increased to $20.9 million for the nine months ended September 30, 2024, compared to $8.8 million in the same period of 2023, indicating a worsening cash flow situation[20]. - Cash and cash equivalents at the end of the period were $226.9 million, a decrease from $215.8 million at the end of 2023[20]. - The company reported a cash inflow from financing activities of $17.4 million for the nine months ended September 30, 2024, compared to $13.9 million in the same period of 2023[20]. Market and Regulatory Environment - The Prohibiting Russian Imports Act, effective August 11, 2024, imposes a ban on uranium imports from Russia, impacting Centrus's operations and supply chain[10]. - The company faces significant risks related to competition, market conditions, and government regulations that could impact future performance[16]. Operational Focus - The company continues to focus on expanding its Ohio enrichment facility to meet the growing demand for clean, carbon-free nuclear energy[2].

Selected by the U.S. Department of Energy ("DOE") as an awardee for High Assay Low-Enriched Uranium ("HALEU") production and HALEU deconversion contracts Signed $1.1 billion in new contingent commitments to support deployment of Low-Enriched Uranium ("LEU") production, for a total of $2.0 billion year-to-date Net loss of $5.0 million on $57.7 million in revenue, compared to net income of $8.2 million on $51.3 million in revenue in Q3 2023 Consolidated cash balance of $194.3 million as of September 30, 2024 ...

BETHESDA, Md., Oct. 23, 2024 /PRNewswire/ -- Centrus Energy Corp. (NYSE American: LEU) will broadcast its quarterly conference call with shareholders and the financial community over the Internet on Tuesday, October 29, 2024, at 8:30 a.m. ET. The Company will release its third quarter earnings report for 2024, which ended September 30, 2024, after the close of markets on Monday, October 28.The conference call will be open to listeners who log in through the Company's website, www.centrusenergy.com. A link t ...