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Centrus Energy (LEU) - 2024 Q3 - Quarterly Results
LEUCentrus Energy (LEU)2024-10-28 21:09

Financial Performance - Centrus reported a net loss of 5.0milliononrevenueof5.0 million on revenue of 57.7 million for Q3 2024, compared to a net income of 8.2milliononrevenueof8.2 million on revenue of 51.3 million in Q3 2023[1]. - Total revenue for the three months ended September 30, 2024, was 57.7million,anincreasefrom57.7 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 19.5million,adecreasefrom19.5 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,comparedtoanoperatinglossof(7.6) million, compared to an operating loss of (2.9) million in Q3 2023[19]. - Gross profit for Q3 2024 was 8.9million,downfrom8.9 million, down from 11.3 million in Q3 2023, a decrease of 21.2%[19]. Revenue Segments - Total revenue increased by 6.4millionyearoveryear,withLEUsegmentrevenuedecreasingby6.4 million year-over-year, with LEU segment revenue decreasing by 5.7 million to 34.8million,whileTechnicalSolutionssegmentrevenueincreasedby34.8 million, while Technical Solutions segment revenue increased by 12.1 million to 22.9million[3][4].Separativeworkunitsrevenuedecreasedto22.9 million[3][4]. - Separative work units revenue decreased to 34.8 million in Q3 2024 from 40.5millioninQ32023,adeclineof14.140.5 million in Q3 2023, a decline of 14.1%[19]. - Technical solutions revenue increased significantly to 22.9 million in Q3 2024 from 10.8millioninQ32023,agrowthof112.010.8 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 30.4millionyearoveryear,whileTechnicalSolutionssegmentcostsincreasedto30.4 million year-over-year, while Technical Solutions segment costs increased to 19.2 million from 9.6million[5][6].TotalcostofsalesforthethreemonthsendedSeptember30,2024,was9.6 million[5][6]. - Total cost of sales for the three months ended September 30, 2024, was 48.8 million, compared to 40.0millioninthesameperiodof2023,anincreaseof22.040.0 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 3.3millioninQ32023[19].BacklogandCommitmentsThecompanysbacklogstandsat3.3 million in Q3 2023[19]. Backlog and Commitments - The company's backlog stands at 3.8 billion as of September 30, 2024, with approximately 2.8billionintheLEUsegmentand2.8 billion in the LEU segment and 0.9 billion in the Technical Solutions segment[11]. - Centrus has secured 2.0billioninnewcontingentcommitmentsforLEUproduction,bringingtotalcommitmentsto2.0 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 2.0millionandatotalceilingof2.0 million and a total ceiling of 2.7 billion for all awardees[8][9]. Assets and Liabilities - Total current assets decreased to 516.9millionasofSeptember30,2024,downfrom516.9 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 514.6millionasofSeptember30,2024,downfrom514.6 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 222.6millionfrom222.6 million from 282.6 million, a decline of approximately 21.3%[22]. - The total stockholders' equity increased to 76.4millionasofSeptember30,2024,upfrom76.4 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 20.9millionfortheninemonthsendedSeptember30,2024,comparedto20.9 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 226.9million,adecreasefrom226.9 million, a decrease from 215.8 million at the end of 2023[20]. - The company reported a cash inflow from financing activities of 17.4millionfortheninemonthsendedSeptember30,2024,comparedto17.4 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].