Centrus Energy (US:LEU)2024-10-28 21:09Financial 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].