Centrus Energy (LEU) - 2024 Q4 - Annual Results

Financial Performance - Centrus reported a net income of $73.2 million for the year ended December 31, 2024, down from $84.4 million in 2023[2][4] - Total revenue for 2024 was $442.0 million, a 38% increase from $320.2 million in 2023[4][5] - The company recognized a gross profit of $111.5 million for 2024, slightly down from $112.1 million in 2023[10] - Net income for the three months ended December 31, 2024, was $53.7 million, a decrease of 5% from $56.3 million in the same period of 2023[31] - Basic net income per share for the year ended December 31, 2024, was $4.49, down from $5.55 in 2023, reflecting a 19% decline[31] - Cash provided by operating activities for the year ended December 31, 2024, was $37.0 million, significantly up from $9.1 million in 2023[33] - The company reported a gross profit of $61.8 million for the three months ended December 31, 2024, compared to $49.8 million in the same period of 2023, marking a 24% increase[32] Revenue Segments - Revenue from the LEU segment increased by $80.9 million (30%) to $349.9 million, driven by a 70% increase in uranium revenue[6] - The Technical Solutions segment revenue rose by $40.9 million (80%) to $92.1 million, primarily due to the transition of the HALEU Operation Contract[7] Backlog and Contracts - The company's backlog reached $3.7 billion as of December 31, 2024, with $2.8 billion in the LEU segment and $0.9 billion in Technical Solutions[21] - Centrus secured approximately $2.0 billion in contingent sales contracts and commitments, with $0.8 billion under definitive agreements[3][21] - The HALEU Operation Contract's Phase 2 period was extended to June 30, 2025, with a contract value increase to $129.0 million[13] Cash and Financing - The company closed $402.5 million of convertible senior notes, resulting in an unrestricted cash balance of $671.4 million[4][15] - The company raised $388.7 million from the issuance of 2.25% Convertible Senior Notes in 2024, indicating strong financing activity[33] - Cash, cash equivalents, and restricted cash at the end of the period increased to $704.0 million from $233.8 million in 2023[33] Assets and Liabilities - Total assets increased to $1,093.4 million in 2024, up from $796.2 million in 2023, representing a growth of 37.4%[35] - Current assets rose to $1,015.2 million in 2024, compared to $685.4 million in 2023, an increase of 48.1%[35] - Long-term debt surged to $472.5 million in 2024, significantly higher than $89.6 million in 2023, reflecting a growth of 426.5%[35] - Total liabilities increased to $932.0 million in 2024, up from $763.9 million in 2023, marking a rise of 22.1%[35] - Stockholders' equity improved to $161.4 million in 2024, compared to $32.3 million in 2023, an increase of 400.6%[35] Inventory and Accounts Receivable - The company experienced a significant increase in inventories, with a change of $101.0 million for the year ended December 31, 2024, compared to a decrease of $83.8 million in 2023[33] - Accounts receivable grew to $80.0 million in 2024, up from $49.4 million in 2023, indicating a rise of 61.7%[35] - Inventories decreased to $161.6 million in 2024, down from $306.4 million in 2023, a reduction of 47.3%[35] Risks and Uncertainties - Centrus Energy Corp. faces significant risks related to geopolitical conflicts and sanctions that could impact its ability to obtain and deliver low enriched uranium (LEU) under existing contracts, particularly with TENEX[25] - The "Prohibiting Russian Uranium Imports Act," effective August 11, 2024, will ban imports of LEU from Russia into the U.S., which may affect Centrus's supply chain and operations[25] - The company is dependent on timely deliveries from TENEX and other suppliers, with risks associated with potential sanctions or restrictions that could disrupt these deliveries[26] - Centrus's revenue is largely dependent on a small number of major customers, which poses risks related to customer financial stability and market demand fluctuations[26] - The company is pursuing the deployment of American Centrifuge technology under the HALEU Operation Contract, with uncertainties regarding funding and contract performance[26] - Centrus's financial performance is subject to significant fluctuations, with risks related to market conditions and competition from other LEU producers[27] - The company has a backlog of contracts, but uncertainties exist regarding customer actions and future contracting due to market conditions[27] - Risks related to cybersecurity incidents could impact Centrus's business operations and contractual obligations[27] - The company is exploring strategic transactions that could significantly change its business profile, but these may be difficult to implement[27] Capital Expenditures - Capital expenditures for the year ended December 31, 2024, were $4.1 million, up from $1.6 million in 2023[33] Non-GAAP Measures - Centrus's adjusted net income and net income per share metrics are non-GAAP measures that provide additional insight into its financial performance and strategic planning[30]