|Re: 3.55 5.04..7.50 eps 2.17 vs (1.06)|
Net income of $22.8 million - an improvement of $30.6 million compared to the net loss of $7.8 million in 3Q 2018
- Remain on track to return to profitability in 2020
- Repaid the $27.5 million principal balance in outstanding 8.0% notes that matured on September 30, 2019
- Completed $15 million decontamination and decommissioning project for the U.S. Department of Energy on time and on budget
- Finalized 3-year contract for the construction of high-assay low-enriched uranium ("HALEU") demonstration cascade
News provided by
Centrus Energy Corp.
Nov 07, 2019, 17:10 ET
BETHESDA, Md., Nov. 7, 2019 /PRNewswire/ -- Centrus Energy Corp. (NYSE American: LEU) today reported net income of $22.8 million for the quarter ended September 30, 2019, compared to a net loss of $7.8 million for the third quarter of 2018. The net income allocable to common stockholders was $20.9 million, or $2.18 per common share (basic) and $2.17 per common share (diluted), compared to a net loss allocable to common stockholders of $9.7 million or $1.06 per common share (basic and diluted), for the third quarter of 2018.
"This quarter we posted positive income results and repaid the outstanding balance on our remaining 8.0% notes," said Daniel Poneman, Centrus president and chief executive officer. "We also completed D&D work on DOE's K-1600 facility in Oak Ridge on time and on budget and finalized our three-year, $115 million contract with DOE to demonstrate production of advanced reactor fuel."
Centrus generated total revenue of $104.7 million for the third quarter of 2019, an increase of $70.6 million, or 207%, from the same period in the prior year. For the nine-month period ended September 30, 2019, revenue was $154.0 million, an increase of $44.8 million or 41%, from the same period in 2018.
Revenue from the LEU segment increased $58.9 million (or 204%) in the three months and $42.4 million (or 51%) in the nine months ended September 30, 2019, compared to the corresponding periods in 2018, reflecting the variability in timing of utility customer orders. As noted in the 2019 Outlook below and consistent with prior years, revenue is anticipated to be heavily weighted to the second half of the year. The volume of SWU sales increased 752% in the three-month period and 41% in the nine-month period. The average price billed to customers for sales of SWU declined 50% in the three-month period and 9% in the nine-month period ended September 30, 2019, compared to the corresponding periods in 2018, reflecting the trend of lower SWU market prices in recent years and the particular contracts under which SWU were sold during the periods. The volume of uranium sales increased 15% in the three-month period and 137% in the nine-month period ended September 30, 2019, compared to the corresponding periods in 2018. The average price billed to customers for uranium sales declined 2% in the three-month period and increased 8% in the nine-month period.
Cost of sales for the LEU segment increased $33.5 million (or 160%) in the three months and $1.8 million (or 2%) in the nine months ended September 30, 2019, compared to the corresponding periods in 2018, reflecting the increases in SWU and uranium sales volumes partially offset by declines in the average cost of sales per SWU. The average cost of sales per SWU declined approximately 48% in the nine months ended September 30, 2019, compared to the corresponding period in 2018, primarily due to lower pricing in supply contracts. Cost of sales includes legacy costs related to benefits for former employees of the Portsmouth and Paducah Gaseous Diffusion Plants of $2.8 million in the nine months ended September 30, 2019 and $2.9 million in the nine months ended September 30, 2018.
Revenue from the contract services segment increased $11.7 million (or 225%) in the three months and increased $2.4 million (or 9%) in the nine months ended September 30, 2019, compared to the corresponding periods in 2018. The increase in the three and nine-month periods was primarily the result of work performed under the HALEU contract and the K-1600 D&D, partially offset by a decrease in work performed for the Battelle contract. The nine-month period in 2018 included $9.5 million of revenue related to the January 2018 settlement with DOE related to past work performed.
Cost of sales for the contract services segment increased $9.4 million (or 174%) in the three months and $9.1 million (or 48%) in the nine months ended September 30, 2019, compared to the corresponding periods in 2018, reflecting the mix of contract services work performed in each of the periods.
Centrus realized a gross profit of $35.5 million in the three months ended September 30, 2019, an increase of $27.7 million compared to the gross profit of $7.8 million in the corresponding period in 2018. In the nine months ended September 30, 2019, the Company realized a gross profit of $25.7 million, an increase of $33.9 million compared to the gross loss of $8.2 million in the corresponding period in 2018.
Centrus reiterates its annual guidance for 2019, including SWU and uranium revenue in the range of $155 million to $180 million and total revenue to be in a range of $205 million to $230 million. Consistent with prior years, revenue continues to be most heavily weighted to the second half of the year. The Company continues to expect to end 2019 with a cash and cash equivalents balance in a range of $105 million to $125 million.
Based on cost estimates that are currently under review for the three-year HALEU program, Centrus expects to recognize a contract loss in the fourth quarter of 2019 in the approximate range of $17-22 million. For further details, refer to the Company's Press Release dated November 5, 2019.
Our financial guidance is subject to a number of assumptions and uncertainties that could affect results either positively or negatively. Variations from our expectations could cause differences between our guidance and our ultimate results. Among the factors that could affect our results are:
Additional purchases or sales of SWU and uranium;
Conditions in the LEU and energy markets, including pricing, demand, operations, and regulations;
Timing of customer orders, related deliveries, and purchases of LEU or components;
Contracts for any additional scope of work with UT-Battelle;
Financial market conditions and other factors that may affect pension and benefit liabilities and the value of related assets;
The outcome of legal proceedings and other contingencies;
Potential use of cash for strategic or financial initiatives;
Actions taken by customers, including actions that might affect existing contracts; and,
Market, international trade and other conditions impacting Centrus' customers and the industry.
------------------- "Opportunities multiply as they are seized" -- Sun Tzu circa 500 B.C. -------------------
| Reply to SunTzu772 - Msg #111 - 10/31/2019 12:34|
Re: 3.55 4.87 5.04 Centrus Completes D&D Project for U.S. DOE on Time, on Budget
Looking good here clearing $5..will DD upcoming e/r.
BETHESDA, Md., Oct. 9, 2019 /PRNewswire/ -- Centrus Energy Corp. (NYSE American: LEU) today announced that it successfully completed decontamination and decommissioning (D&D) of the U.S. Department of Energy's K-1600 facility in Oak Ridge, Tennessee, on time and on budget. Centrus finished the $15 million project in just one year.
"I'm pleased our team was able to deliver the results the Department expected on a very short timetable," said Centrus President and CEO Daniel B. Poneman. "This success demonstrates our broad technical capabilities and reflects our strategy of diversifying the business by offering advanced engineering, manufacturing, and D&D services."
Centrus had leased K-1600 from DOE since 2002 to test and demonstrate the world's most advanced uranium enrichment centrifuges, while conducting centrifuge manufacturing, engineering, and design at its state-of-the-art Technology and Manufacturing Center (TMC) in Oak Ridge. In 2018, however, Centrus obtained a license from the State of Tennessee to allow for future testing activities at TMC. This obviates the need to continue using K-1600 and allows the company to consolidate future centrifuge development efforts into a single, Centrus-owned facility.
The Department awarded Centrus a $15 million Work Authorization on September 27, 2018, to prepare K-1600 for demolition. The facility is one of the last remaining legacy structures on the 2,200-acre site of the World War II-era K-25 uranium enrichment plant, now known as the East Tennessee Technology Park. Decontaminating and decommissioning K-1600 is part of a larger effort by DOE to clean up the site so that it can be reused for commercial and industrial purposes by the local community.
Centrus' D&D work at K-1600 included removal and disposition of all equipment and materials to render the facility non-radiologically contaminated and non-possessing (i.e. unclassified). As a result, the Department will be able to turn the facility over to a contractor to demolish the building.