Centrus Energy (US:LEU)2023-05-09 21:04Financial Performance - Total revenue for Q1 2023 was $66.9 million, a significant increase from $35.3 million in Q1 2022, representing an increase of 89%[27] - Revenue from separative work units was $58.8 million in Q1 2023, compared to $12.8 million in Q1 2022, indicating a growth of 359%[27] - Gross profit for Q1 2023 was $23.0 million, up from $6.3 million in Q1 2022, reflecting a gross margin improvement[27] - Net income for Q1 2023 was $7.2 million, compared to a net loss of $0.4 million in Q1 2022, marking a turnaround in profitability[27] - Basic net income per share for Q1 2023 was $0.49, compared to a loss of $0.03 per share in Q1 2022[27] - Revenue from SWU and uranium sales increased significantly to $58.8 million in Q1 2023, up from $17.7 million in Q1 2022, with U.S. sales contributing $58.7 million[35] - The LEU segment generated revenue of $58.8 million in Q1 2023, compared to $17.7 million in Q1 2022, marking a growth of 232%[84] - Major customers in the LEU segment contributed $41.6 million and $8.4 million to revenue in Q1 2023, while a customer in the Technical Solutions segment contributed $8.0 million[85] Assets and Liabilities - Total current assets decreased to $577.0 million as of March 31, 2023, from $587.1 million as of December 31, 2022[26] - Total liabilities decreased to $733.5 million as of March 31, 2023, from $779.6 million as of December 31, 2022[26] - The company reported a stockholders' deficit of $44.5 million as of March 31, 2023, improving from a deficit of $74.1 million as of December 31, 2022[26] - The company has significant long-term liabilities, including $84.1 million in postretirement health and life benefit obligations[26] - The total liability of borrowed inventory as of March 31, 2023, was $83.2 million, up from $58.6 million at December 31, 2022[51] - The Company holds inventories valued at $209.4 million as of March 31, 2023, compared to $192.2 million at December 31, 2022[49] Cash Flow and Expenditures - Cash used in operating activities improved to $(9.7) million in Q1 2023 from $(12.6) million in Q1 2022[29] - The company's cash, cash equivalents, and restricted cash increased to $221.3 million at the end of Q1 2023, up from $180.9 million at the end of Q1 2022[29] - Capital expenditures for Q1 2023 were $(0.3) million, slightly higher than $(0.1) million in Q1 2022[29] - The company issued common stock, generating proceeds of $22.0 million in Q1 2023[29] - As of March 31, 2023, the Company reported total cash, cash equivalents, and restricted cash of $221.3 million, an increase from $212.4 million as of December 31, 2022[47] Segment Performance - The Technical Solutions segment revenue is recognized over the contractual period as services are rendered, contributing to the overall financial performance[42] - The Technical Solutions segment reported revenue of $8.1 million in Q1 2023, a decrease from $17.6 million in Q1 2022, indicating a decline of 54%[84] - The Technical Solutions segment experienced a gross loss of $0.9 million in Q1 2023, down from a gross profit of $3.4 million in Q1 2022[84] - The LEU segment's gross profit was $23.9 million in Q1 2023, compared to $2.9 million in Q1 2022, showing an increase of 726%[84] Legal and Regulatory Matters - The company is involved in ongoing legal proceedings related to environmental contamination claims, with the case currently in the discovery stage[80] - The Company believes that its operations at the Portsmouth GDP site were fully compliant with NRC regulations, despite ongoing legal proceedings related to alleged radiation releases[82] - The Company has invoked indemnification under the Price-Anderson Act regarding ongoing legal claims[82] - Risks related to geopolitical conflicts and economic conditions could impact future operations and financial performance[18] Future Contracts and Commitments - The Order Book for future SWU and uranium deliveries is approximately $1.0 billion as of March 31, 2023, with contracts extending to 2029[40] - The Company has received aggregate cash payments of $171.1 million under the HALEU Demonstration Contract through March 31, 2023[43] - The HALEU Operation Contract awarded by the DOE has a base contract value of approximately $150 million, with Phase 1 requiring a cost share contribution of about $30 million from both the Company and the DOE[44] - Phase 2 of the HALEU Operation Contract includes an annual production rate of 900 kilograms of HALEU UF by December 31, 2024, with an expected contract value of approximately $90 million[44] - The company has commitments under the TENEX Supply Contract that could extend through 2028 due to rescheduling rights exercised[71] - The Orano Supply Agreement for SWU runs through 2030, providing flexibility to adjust purchase volumes[74] Pension and Benefit Costs - Interest costs for defined benefit pension plans rose to $7.0 million in Q1 2023 from $4.8 million in Q1 2022[58] - Net periodic benefit credits for defined benefit pension plans improved to $(0.1) million in Q1 2023 from $(3.4) million in Q1 2022[58] - Interest costs for postretirement health and life benefit plans increased to $1.2 million in Q1 2023 from $0.9 million in Q1 2022[59] Market Risks - There have been no material changes to market risks from those discussed in the Annual Report for the year ended December 31, 2022[165]