LEU - Earnings call transcript Q3 2017

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Operator

Greetings, and welcome to the Centrus Energy Corp.

Third Quarter 2017 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Don Hatcher, Director of Investor Relations for Centrus Energy Corp. Please go ahead.

Don Hatcher

Kevin. you, Thank thank and joining us. Good you morning, for for call XXXX quarter cover results will the the that third Today's ended September XX.

the Steve President, for Chief Controller and Treasurer; today call Officer. Poneman, Dorrian, Dan Here Accounting President and Executive John Officer; Financial Greene, Chief Vice Chief Senior Officer and are and

release over Dan, call like as our This conference to listening turning those all our Before to afternoon. to the welcome our issued earnings news follows call well I'd yesterday callers as webcast.

morning our on report file on today XX-Q Exchange Centrus we later replay the forward-looking including is as be I'd X-Ks, Centrus. XX-Qs to news of of call website. to that in future performance our call Monday available that expect We information the involves our assumptions and remind A filings, and information of will of this may are be on on quarterly Commission this Form the and and All uncertainty, Veterans everyone Securities SEC including certain available Day. risk XX-K, about website. considered releases the on closed that observance today discuss our this may like

those results materially actual differ our from may statements. forward-looking Our in

Form could that and information concerning on to is from materially quarterly differ in XX-Q. actual Additional factors reports Form our in filings XX-K cause our with report including annual results our those on contained statements forward-looking the SEC,

retransmission is you turn your This the sensitive, is form redistribution, provided time expressed XX, participation. as this today And and of information Centrus over written unless today, strictly forward-looking Dan is the of consent to Energy. call any rebroadcast I'll Poneman. or Centrus the XXXX, for call of now in accurate the Thank prohibited. noted. without is call November Finally, of property otherwise Any only

Dan Poneman

Thank today. you, everyone thank you joining and Don, to us

and Veterans sincere Day and our women safe. want for United the to prepare to have country kept men States my and who the express tomorrow, the many thanks a have around worn minute the of First, to as I at we celebrate uniform take country Centrus

proud engineering particularly of including in I are Oak the and and our visit technical teams many their by at am Centrus We always from veterans or the managers. in and of have families. Whenever senior our Piketon, dedication Ridge our impressed some to I leaders support so veterans

rest at are for the and Centrus All not their I how proud of know service honor very our country. nation company us this them to to to and to only been of the the talent employees hard want productive but of of so much Thanks we a work period them our and our has company. our

gross at We have quarter of $XX.X million. and profit $XX.X million this revenues a

fourth track just In the the LEU does Steve a I'd come like over $XXX million the total for few the We $XXX that long-term. a months to But revenue half past numbers. of quarter a will strengthen the $XXX more continue Greene take highlight I the before our to segment. million to expect will annual our in our $XXX revenues million and guidance in are meet on in annual than million to company to accomplished he into to deeper moment, we’ve that, of to things ask few including dive

the supply customers we us That demand September technology. both $XX on long-term advantage work testing U.S. continue return million competitive and In to and with gives back can a with for a state-of-the-art offer demand, a gas our Laboratory is Because turning diversified to oversupplied XXXX. million team event that production ability of continue meet centrifuge this next-generation affordable. sales through developing cost company to fuel deliveries development into uranium Oak we with uranium future, contracts. new we our open our While the announced new our that a in to totaling U.S. the of fuel for foreseeable and face a that been uranium, rich customers follow-on the we expect urban enrichment winning an commercial we world's contract demand have supplier a light is and with Centrus market most National future and production. announced reliable to we enrichment slow technology path are month considering a using our to we $XX we is have because Ridge and to to the the supply customers When prepare has round market enrichment contract while continue sales. leading identifying technology. Last structure, time

ensure for Oak to to will future is Laboratory that fuel. Ridge ready work addition the amount machine centrifuge to needs National meet in potential the enrich commercial national in in security for it's Our

to been September. It of honored also facility employees have Secretary our a a second and great welcome Energy people cases has In third decades. Energy enrichment when good to are who or for indentified generation Ohio uranium in in chance are had enrichment security a domestic working long-term fighting We as was meet Perry many on-site. our a the requirement. capability and on national he Centrifuge The Department American a Secretary, with visit Rick toured

deploy in good In company government timeline, and making our While the up ready technology of and we're nation cascade demonstration the mean the Congress progress the it to in the the is U.S. time, D&D needs to when Piketon. is decide our to us.

that to be budget. year-end We within complete and mostly expect work on by schedule

in engineering, support manufacturing advanced MOU our fuel pioneer technical advanced announced expertise and value September, facility we today. the to designs with to position require different services. an with put fuel X-energy advanced reactors will will next-generation us in Together does our manufacturing not these companies Our emerging exist and design a Many In for innovative expertise reactor fuel a types in that of nuclear enrichment also commercially and of company. manufacturing nuclear reactor market. the unique fuel add advanced

to its with design. The fuel of advance the a business on reactor TRISO fabrication goal deploying innovative that other fuel X-energy early focus the prove to providing Centrus supplier, reactor component develop stages an fuel We their in business a the services as out reactor the with these opportunity years applying for see the technology will opportunities near-term companies create expand we market as they be in the technology. deployment of sector. long-term part themselves. facility other our can and still seed their a reach as opportunity phase. is advanced as will for take this basic near-term and of But fuel innovative ultimate to manufacture eventually commercialize a reactor many supplier In strong will reactors X-energy and side believe long-term it work developers by Our new both as is well and we in and this technical to

will to financials, Steve Greene. turn detailed now the more I call over For

Steve Greene

good morning our Thank and Dan you, to listeners.

million Our million this was quarter was $XX.X total revenue LEU of segment. $XX.X which for our

this particular prior the Our to revenue lower last to but period compared quarter period. which higher XXXX for to to volume reflect during year-to-date period the the in due was fuel contract results year. compared under the the corresponding changes variances compared in Both

quarter-to-quarter results a As results always we annual be indicators have can best our and that investor of our performance. our our that highly variable financial remind

volumes the decline decommissioning average in were of year to the that $X.X in sales SWU in higher million guidance period our month revenue the was million which we Ridge $XXX period. the segment. recorded consist sales sales the sales SWU. profit and continue quarter license and the reflecting quarter of are million for fourth nine by XX% in SWU reiterating revenue quarter volume are outside the contracts LEU to of average sales quarter. technology company's with million $XX.X $XXX in Centrus Advanced million Lab, We expand moderated $XXX XXXX price for in for for gross to cost. Cost the for generate the a volume total National with the to including and than declined per expenses million a Cost of increases of were that of Oak average sales Centrifuge the that and consistent more of to for American the up decline million, SWU of a cost lower $XX.X costs $XXX

to and $XX.X liability. from $XX period the For million XX% $XX due in at with million this the to million of $XX.X charge $XX.X The for cost at D&D down cascade September prior XXXX. cost lower declined accrued period million liability the period of nine-month D&D stands as XX million demonstration Piketon the the end the at increase accrued

the loss of compared the related the to to $XX.X As net decline third a obligations. quarter down but to charges an for due by improvement profit maintain expenses year the are mostly reduce of and the gross recorded for be remeasurement the included $X.X mostly Piketon interest a $XXX,XXX which We expense demobilize to in to we and loss the slightly nine-month $X.X million down net in facility. Dan expense from prior expect the million in XXXX D&D yearend. period quarter million for SG&A mentioned, increased the pension to loss completed

restructuring improvement range licensing and nine-month higher revenue by decline extinguishment subject to $XX.X quarter believe XXXX the loss filings. interest our will for advanced that I'll and gross guidance I'll we the to we’re debt more and million turn costs. recorded SEC you than on $XX.X and to closing, early cash the quarterly half always of technology profit and of million the on expense the Thank on an from be caveat charges decommissioning advisory today and continue our gains we the revenue workforce track listening call and fourth reiterate our for period outlined of section in of both Dan. in results a lower due For net that back to special lower outlook the costs, offset generate to In within our in

Dan Poneman

over for our today Steve. you, saying size leverage expertise. see the work that conclude we few to balance opening years opportunities by call and our company, to right past up many done we in Centrus unique will to sheet hard based have the our I the strengthen Thank

complement has traditional good we still business rolled served that opportunities is offerings. current would through period, the a an markets current our in in see going While Centrus area difficult our

time. the U.S. the energies also and companies The team U.S. at by words hard of that bottom adequately those in line not today's yet nuclear to working to is future. make at Secretary it against hard be to day industry value to a to happy employees at competes that clean support working every that government. are will nuclear nuclear and energy support encouraged energy take electricity. sure and reactors run key in our The we’re markets play questions come. role this state Perry while there as providing in any will we his Centrus continue home We are reliable do to Operator, globally and are the action

Operator

Boiling first Our your today with proceed Please [Rich coming Howard Instructions] question from Point is [Operator question. Resources]. from

Rich Howard

appropriate would accessing morning. Thank the timeline situation, Dan. you you Good discuss lies tritium and of To the still extent LEU through ahead? Paducah they Defense's are what Department tritium

Dan Poneman

your Thanks, Rich. Good hear to voice.

requirements is replaced So is not at review, Posture the by tritium stores. that way know, come -- product A the to any Review will the question, the of the new understanding my those obviously government, administration is Energy be tritium finishes what government and what is of conducting supplies requirements go any has until additional and will under decrements on But would the got not Rich at the Posture question doing its is complete. a a the we U.S. half-life that But Department XX.X of matter. is bottom or mid-term. it the current for Department of nuclear to of our of major need process that Nuclear long-term replenishment a the going for which to Nuclear Defense going arsenal to Review, that the essentially always in the Department be you produce are at s they’re the that Nuclear the in clear the of don't now. then you been has are Posture and, is the will U.S. the and to I have would has record recipient in any its update that Department requirements. increment course to line their of out Administration stretch we requirements number as a tritium have of tritium And satisfy need would be responsibility have the actually I in [but] the Review, time, pace things think Energy out indicate think your The program to Energy tritium be years, that the -- be of of to of

I Posture whatever so you’re And of of in out think Review. light that see comes have to going policy the the Nuclear

Rich Howard

Thank helpful. you, very Dan. you. That’s Thank

Operator

If questions, Thank [Operator I'll to no the there further turn for any you. floor management over closing Instructions] are comments. further back or

Dan Poneman

will and the a we This thank Kevin. on speaking investors quarter Centrus' to future. I the in you listeners extend you, conclude again Thank to want and and third a you our line with you look to are call. forward who have the great day. Thank

Operator

does teleconference. today's conclude Thank you. It

You participation time for today. wonderful day. this and We your at you your may lines a disconnect have thank

Don Hatcher	Director of IR
Dan Poneman	President & CEO
Steve Greene	SVP & CFO
John Dorrian	Controller & CAO
Rich Howard	Boiling Point Resources

Centrus Energy (LEU) 10 Nov 172017 Q3 Earnings call transcript