NuScale(US:SMR)2023-08-10 01:25Financial Data and Key Metrics Changes - The company ended the quarter with a cash balance of approximately $215 million, with operating expenses slightly increasing while R&D costs decreased due to shifts in project schedules [52][80] - The forecast for full-year cash flow from operations is projected to be in the range of negative $102 million to $142 million [25][59] Business Line Data and Key Metrics Changes - Revenue for the quarter was limited as expected, generated primarily from citing, licensing, and front-end engineering work, with future payments anticipated as the company pivots to manufacturing modules [80] - The company is producing forgings and materials essential for the manufacturing of the first NuScale power modules, with significant progress in project developments [14][22] Market Data and Key Metrics Changes - Interest in the company's technology has accelerated, particularly due to the Inflation Reduction Act, with various advanced conversations taking place with utilities and industrial companies seeking clean energy solutions [18][30] - The company is targeting an 80% subscription for the Carbon Free Power Project (CFPP) by year-end 2023, with ongoing discussions to increase subscription levels [15][32] Company Strategy and Development Direction - The company is transitioning from a research and development focus to commercialization and project delivery, supported by new leadership appointments [11][12] - The company aims to leverage its competitive advantages in the small modular reactor (SMR) space, emphasizing the ability to operate off-grid and maintain a site boundary emergency planning zone [49][84] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position in the SMR market, highlighting the importance of nuclear technology in the global energy transition [73][84] - The company is closely monitoring the appropriations process in Congress, with positive developments indicating strong financial support for advanced SMRs [75][76] Other Important Information - The company has submitted a Limited Work Authorization to the NRC, marking a significant milestone as it is the first NRC application to initiate construction activities for a commercial SMR [43] - The company has received letters of interest for potential support from the U.S. Export-Import Bank and the U.S. International Development Finance Corporation, totaling up to $4 billion for project deployment [45] Q&A Session Summary Question: What is the status of the CFPP subscription and Class 2 cost estimate? - Management is closely monitoring the CFPP subscription levels and has weekly conversations with UAMPS, targeting an 80% subscription by year-end 2023 [69][78] Question: When can updates on RoPower's Phase 1 FEED be expected? - Updates on the completion of Phase 1 and progress into Phase 2 are anticipated in the coming months, with engagement with local suppliers already underway [34][87] Question: How does the company view cash flow scenarios for 2023 and 2024? - The company is not providing specific guidance but has set aside reserves and filed a Form S-3 for financial flexibility [59][86]