LEU - Earnings call transcript Q2 2018

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Operator

Greetings and welcome to the Centrus Energy Corporation Second Quarter 2018 Quarterly Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [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. Mr. you, Thank begin. may Hatcher, you

Don Hatcher

Thank you, us. the you joining XX. and quarter Good call will morning June Today's ended for XXXX thank cover of for that Delvin. the second results

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

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

quarterly to file on expect afternoon. We this our report Form XX-Q

All on remind and on XX-K, our including our Centrus' the the available information future call considered about filings, be available we XX-Qs replay that A including be information today of this this website. uncertainty, I'd of to our forward-looking performance news on Centrus. releases everyone website. of and will that assumptions call are risk morning and this certain discuss may may of X-Ks the that also SEC later involve like

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

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

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

Dan Poneman

industry thank you that This everyone results. and for Thank has nuclear the has been you, today. in reflected a quarterly tough period our Don, listening and to

quarter efforts progress the number to guidance areas and support in said, of fruit our in to in of $XX.X As end track expand our We million are our future and we're balance. your business. that a revenue bear on made generated of annual important and cash grow this revenues everyone and we've ways with in

We reiterating that are guidance today.

behalf expect revenues in fourth our the quarter. on We XXXX of

on with discussed at in consists multiple calls, book almost we’ve entirely our long-term As order deliveries prior contracts years.

did sale reductions those quarter. quarter in cost of we price prices the drive in years, are XXXX presents unit have and our show few years signed contracts supply, supply considerably contract, based while average suppliers realize of It made market costs. were expect on Because our we that to to loss can Some diverse either secondary at the But our because reduction over supply a we obtaining and mix cost line other bottom recently. of per that gross newer from rolling and important our primary the several more were disproportionately next cost the also calculated down up old in the way. of not beginning that note the we ago at second delivery prices won during higher, contracts also and post lower

that customers have we've sales off. Not many first LEU focus efforts only customers, of with came of embraced customer market been on and in not team customers, sales sales every realign to mantra I we business making The While and has for here ago, we years supplied many our been promised and hard its the three first. opportunities. this business overall fuel in with years. putting long-term these winning and been additional winning have new paying abroad, market When the nuclear to Centrus significant still team opportunity U.S. time also our but has facing capturing their are and done working pressure we over the I the

In We relationships challenges. success long-term their that while addition, existing work is own their they we're ensure with through our success. to know maintain customers we critical that working to our

So for and sides we're how find always both to long-term. win-win about solutions thinking

we're the facility, industry. to of the revenues fuel, complementary Ridge, nuclear out be Tennessee, bulk our nuclear ago sale in flagship and to of fuel in expand generated technology manufacturing by technical, government and the Oak Ridge we've and also can of diversify Oak continued do of the markets our While on built years customers. into to center so behalf working our Couple the [indiscernible] we how technical the private sector support manufacture contract those Laboratory. that And technical while advanced design, capabilities, National We're range we centrifuge. engineer continued know and you plenty work of of that with to other now in

team example pioneering our is of working generation produce and Tennessee company the contract under with the in in technology fuel to For the fuel. to next reactor X-energy design facility nuclear support

but industry, energy We defense expertise capability chemicals not have applications. for manufacturing advance also the only and and advance aerospace, nuclear suitable

are give very years. there While any the working at technical and next view I'll to our say we we're and that a guarantee not predictions, strength this growth key few no leverage over I'm hard opportunity

lowering right To to is been to opportunity liability. the energy security team the technology some the to to addition meet With has time we international we've and sure encouraged place government strengthen efforts. greatly organization these by focus by of make given costs the need In domestic enrichment support improving have need. security the for taking U.S. the manufacturing before deployment further technology and our the

goals. sacrificing our workforce the We on efficient support to necessary structure We long-term that objectives. company is lower unique capabilities possible, profitability focus long-term cost the lean our the continue to to without we and ensuring aligned be of required and the strategic the with

turn our more For the details quarterly results, Davis. to over I'll now on financial CFO, Marian the call

Marian Davis

good to morning and Dan, on everyone call. you, Thank the

revenues our a quarter $XX.X quarter decrease slight the second of the million, from For were XXXX.

the same million in period to six revenues increase compared For months of our the $XX.X an million, were XXXX. $XX.X

the for nearly will generated our expect half in quarter. revenues We of be fourth the year

with listeners deliveries under focus prices regularly million tend than revenues we quarter, growth in to the from those As period we contract With timing annual particular significantly any quarter. to on commitment, contract. $XX.X based the $X on had sign remind quarter-to-quarter the recommend guidance loss one of our on the investors annual increase and multi-year call, make a most loss we rather customers of when same on vary an We this over purchase our million of XXXX. our

declined transition contract. prices in and quarter’s in This our market leading to the fuel reflect in for has the market, prices seen recent years uranium nuclear pricing SWU significantly lower and sales new where result

to period, cost similar reductions of future market the supply purchase filled supply While influence in working than prices current higher pricing. the are are sales are purchase prior lower our market as we these newer through contracts that we cost show where transition being contract, with expect a average across currently prices inventory that our in reflect

Chapter in We that subject have This we're the expect when a improve $X.X dealing book and is a the with we over of future previous disclosed contract of listed giving rest after and with new new court anticipated that proceeding. the at book reduction contract we the revenue year in earnings these order to order quarters. contract our is to effect a had risk, The approval reprises billion to lowering but contract XX We effect the going average costs The for release that that situation represents customer of our be signed now noted will a through the in in still new yesterday cost. into XXXX, quarters. been previous which the approximately inventory contract.

license Ridge National million and $X total Centrifuge of termination primarily Oak American through outside Laboratory lease million. in our We of to the quarter. a we Ohio, Advanced licensing June the to are of that guidance are for the for Centrifuge and to continue the cost, which the facility to These American Piketon, of company’s $XXX DOE related decommissioning reaffirm consists million the contracts XXXX. continue range increased which expenses in with – of costs expect revenue now annual license Technology $XXX NRC

the a complete, substantially that facility With accrued expenses to last held six-month and functions X% at costs compared this most expense, were and for following the down corporate site, are the cost quarter include certain year the facility. the steady than allocation of XXXX. facility SG&A the now at offsite rather D&D greater liability to charged being D&D work an to period Piketon to of relocation compared

continue company working of We are to current reduce our business. and align to structure costs with cost the our the

quarter loss net loss $XX.X line, of the XXXX for of the million. million a bottom net we we same in had of quarter recorded $XX.X the For a

function a well the postretirement $XXX the We is in to expect million increase a of remind net purchases, cash year primarily during as end $XXX balance cash supply XXXX to timing want expected I million, for that of to payments use increased listeners with of an benefits. of

subject outlook over in and described turn Dan. With our SEC on XX-K to factors call that, Form filings, the annual filed As report the in to we this always, the I'll afternoon. this XX-Q guidance file March the section is later will the specifically back of

Dan Poneman

Thank to remarks incentives or We're the fuel security reactor [indiscernible] on Whether supporting to the liable continue many to next challenges these noting working technologies for our developing you, supply challenges. existing by we're while States. front. national hard the being face fuel created to Marian. by United customers, to I opportunities on this will the capitalize conclude that a needs industry providing the supply generation the

of to about to to We Operator, your Thank to new at support the the efforts growth this happy industry. see questions coming this pathway ensure our leader time. we’re you and United any are in to expect we take doing and States a mission our year. continues excited in be work are for development

Operator

Thank you.

question-and-answer comments. turn appear to questions this session. management be for floor Instructions] will like time. the be There closing We no I’d at to a now conducting back [Operator to over

Don Hatcher

to at this future. call. want second there questions a extend all quarter XXXX look forward Centrus' this speaking the you no Since we I you will listeners again investor are to in to thank and conclude with our time,

Operator

teleconference. concludes today's This

for this You lines may your disconnect at your Thank time. you participation.

Centrus Energy (LEU) 9 Aug 182018 Q2 Earnings call transcript