Centrus Energy (US:LEU)2021-08-13 20:33Financial Performance - Total revenue for the three months ended June 30, 2021, was $62.4 million, a decrease of 17.8% compared to $75.7 million for the same period in 2020[12]. - Gross profit for the six months ended June 30, 2021, was $28.8 million, down 54.6% from $63.4 million in the same period of 2020[12]. - Net income for the three months ended June 30, 2021, was $11.6 million, a decrease of 65.5% compared to $33.7 million for the same period in 2020[12]. - Total revenue for the three months ended June 30, 2021, was $62.4 million, a decrease from $75.7 million in the same period of 2020, representing a decline of 17.8%[67]. - The LEU segment generated revenue of $45.2 million in Q2 2021, down from $58.6 million in Q2 2020, reflecting a decrease of 22.9%[67]. - Gross profit for the three months ended June 30, 2021, was $17.1 million, compared to $43.8 million in Q2 2020, indicating a decline of 61.0%[67]. - For the six months ended June 30, 2021, total revenue was $118.0 million, slightly down from $120.7 million in the same period of 2020, a decrease of 1.4%[67]. - The LEU segment's total revenue for the first half of 2021 was $83.3 million, down from $94.1 million in the first half of 2020, a decline of 11.5%[67]. - The technical solutions segment's revenue increased to $34.7 million in the first half of 2021 from $26.6 million in the same period of 2020, representing a growth of 30.4%[67]. Assets and Liabilities - Total current assets increased to $425.9 million as of June 30, 2021, compared to $406.1 million as of December 31, 2020, reflecting a growth of 4.4%[11]. - Cash and cash equivalents rose to $176.0 million, up from $152.0 million, indicating a 15.8% increase[11]. - Total liabilities decreased to $772.0 million from $806.9 million, a reduction of 4.3%[11]. - The accumulated deficit improved to $(398.6) million from $(407.7) million, showing a positive change of 2.2%[11]. - The company reported a total stockholders' deficit of $(271.4) million, an improvement from $(320.6) million, indicating a positive change of 15.3%[11]. - Long-term debt slightly decreased to $104.9 million from $108.0 million, a reduction of 2.9%[11]. - Accounts receivable decreased to $19.0 million from $29.6 million, a decline of 35.6%[11]. - Deferred revenue and advances from customers were $276.0 million, slightly down from $283.2 million, a decrease of 2.5%[11]. - Total cash, cash equivalents, and restricted cash amounted to $181.9 million as of June 30, 2021, compared to $125.2 million as of June 30, 2020, reflecting an increase of approximately 45%[31]. - Accounts receivable decreased to $19.0 million as of June 30, 2021, from $29.6 million as of December 31, 2020, indicating a reduction of approximately 36%[21]. - Deferred revenue decreased by $22.6 million year-to-date, from $281.7 million as of December 31, 2020, to $259.1 million as of June 30, 2021[22]. Cash Flow - Cash provided by operating activities for the six months ended June 30, 2021, was $2.9 million, compared to cash used in operating activities of $8.4 million in the same period of 2020[13]. - Cash, cash equivalents, and restricted cash at the end of the period on June 30, 2021, totaled $181.9 million, an increase from $125.2 million at the end of June 30, 2020[13]. - The company recognized $27.2 million in proceeds from the sale of common stock during the six months ended June 30, 2021[13]. - The company sold 1,238,637 shares of Class A Common Stock for a total of $28.7 million during the six months ended June 30, 2021, resulting in net proceeds of $27.6 million[45]. Operational Challenges - The company continues to face risks related to market conditions and customer payment capabilities, which could impact future financial performance[9]. - The Company has experienced increased costs of approximately $8.8 million for the HALEU Contract due to COVID-19 related delays and supply chain issues[29]. - The company does not anticipate that ongoing legal proceedings will have a material adverse effect on its financial condition[65]. Segment Performance - The technical solutions segment reported a gross loss of $1.1 million in Q2 2021, compared to a loss of $0.7 million in Q2 2020[67]. - Major customers in the LEU segment contributed $14.5 million, $11.2 million, and $10.4 million to revenue in Q2 2021, while a customer in the technical solutions segment contributed $15.2 million[68]. - The company continues to focus on segment reporting based on gross profit as a key measure for performance evaluation[67]. Legal and Regulatory Matters - The Company is involved in a legal claim against DOE for $42.8 million related to pension and postretirement benefits, with a tentative settlement of $43.5 million pending approval[59][60]. - The Company has not accrued any potential liability of approximately $9.6 million asserted by DOE regarding decontamination costs due to uncertainty[56]. - The Company believes its operations at the Portsmouth GDP site comply with Nuclear Regulatory Commission regulations and seeks indemnification under the Price-Anderson Act for potential liabilities[61][64].