LEU - Earnings call transcript Q2 2019

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Operator

Greetings and welcome to the Centrus Energy Corporation Second Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to your host Mr. Corporate Centrus President, Vice Leistikow, Communications Energy. for Dan you. Thank

You may begin.

Dan Leistikow

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

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

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

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

All on and on XX-K, our our Centrus the available call filings, available XX-Qs replay A including be of this website. of our news releases website. will are morning and this X-Ks, also SEC later

the assumptions remind we Centrus. future be considered I'd everyone that on call risk of involves about including that certain that and today information this to uncertainty, the forward-looking may discuss may of like performance information

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

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

in Any is Energy. provided transcription, is information property This redistribution, form noted. prohibited. forward-looking Centrus XX, or the the any Finally, is XXXX, otherwise without consent Centrus of as time retransmission accurate of sensitive today of and only unless August express the call strictly the today, call of written rebroadcast is

I over for the Dan participation, Poneman. call and you turn now your Thank will to

Dan Poneman

joining those to you today. thank and Dan, you, Thank us

uranium to in in which and SWU for that $XX.X results, occurred generated our a services for revenue of split I this the units not under contract merely customer the minute. with deliveries sales will the SWU for sales work. in pleased work between first timing reflect quarter, developments We second generate the year. are our quarter. or million we sales of financial But separative contract the quarter, we did you the have from speak of revenue during This our We

will and when We expect that years recognize had half most the we that recent second been these the make as case will the of deliveries. in revenue of year we happen in deliveries

on contracts the and we segment. in XXXX low-enriched signed LEU segment In addition based are quarter, revenue There updating deliveries sales guidance additional and contract our the during cash or developments are for both balance. end-of-year new for services uranium occurring

$XXX range projecting total to million $XXX full and are between in We year million. revenue a now and increase be

LEU revenue $XXX of to will increase range also The segment a $XXX million. to million

cash a now projected to Notes next Our balance timing of profitability June reflects importantly the cash This decrease at to of with will $XXX PIK balance the to anticipated Toggle the year. expenses we return which month, at associated million repayment Most increased year-end XX. be had of due expect and revenues. million, a in balance of reflecting we range will million to collections is the that next continue projected and $XXX $XX.X

of uranium. we machine to May, demonstrate the will signed agreement a that in Department of begin a announced capability cascade to high-assay As centrifuge had of AC-XXXM letter the new we produce technology's our U.S. low-enriched Energy with construction

in position the fuel of We produce nuclear advanced world. to global expect U.S. with to later of leader new sign that Department a a around power demonstrating the contract Centrus We the ability reactors as definitized the this will next year. contract believe to Energy generation new

support both form uranium will deploy an is fuel. this toward step taking will in advanced the of the reactors need to is of critical future. Centrus is projects new work of domestic long-term reliable ensuring United segments commercial a our and military resumption This States source With support important that nuclear that to it, business enrichment, which to

While this origin enrichment to is with investment, net Centrus and the worth future. believe we deploy facilities benefit agreement maintain to as capacity the a the necessary long-term government, technology requires and talent with for enrichment federal to in well U.S. resume that the the it sharing cost the allows us commercial

and the As the to with has of extended site. of our lease at new operate build Commission we have the part commercial contract, and our with to Department Energy Regulatory Ohio the and enrichment licenses Nuclear the plant site uranium U.S. of decided Piketon U.S. demonstration facilities maintain

DOE collateral $XX.X for demonstration we activities. bonds million, to decommissioning will addition, responsible termination backstop future. longer to our the the no any such which lease activities be decontamination held has and in so need In carry of bond DOE previous of the returned is collateral surety for facility,

and now book supply buyers stabilizing opportunities. well to uranium trend, positioned these In many increased services these actively of seeing long-term expect to extend our the continue on contracts fuel enrichment contracts the and in in we working XXXX. of segment, world the to win work are In a looking to an X-energy. segment, November. current the proceeding fuel for completion contracts. around With we supply diligently utilities contract demand prices upward designed we for is This to facility are fabrication contract with showing customers LEU enrichment schedule on work for and upon and supply feel are and We efforts

in Finally, personal very extend early including to this since Centrus pursuits. I be years, will to our after as eight to her leaving my service thanks tremendous Marian Davis for the we future her Marian and XXXX. over CFO of quarterly filing like past the would Centrus best her wish

And one quarterly over results. Marian? the turn last to financial call with discuss will Marian, to the time that, I

Marian Davis

$XX.X quarter. to XX% quarter. this deliveries in million good segment separative quarter joining us today. second of revenue the morning in a generated the and Thank We Dan, everyone reflects from you, decrease LEU of a is and primarily work second XXXX total in lack our for This unit

heavily to be year, with weighted to the second revenue prior the of expect to continue half We years. consistent

be high-assay low-enriched now of uranium and million segment. to guidance Department anticipated $XXX range sales $XXX for revenue Energy definitized the our in LEU reflecting with updated and total million, additional contract of to in our the the expect have We

We for million and had an XXXX. $X.X from in million reflecting second million of of advisory quarter $X.X uranium sales quarter prices reductions XXXX, of costs higher $X.X loss sold. Special cost the second for the quarter, a or were and improvement gross from the down lower workforce of of charges credits

employees Energy, the of Piketon, the million company's XX, special reversal the U.S. with were at retained result XXXX for Department and in included Ohio. of a for As facility accrued termination months charges ended $X.X of six agreement of three the in a credit letter the June who benefits

continued expenses million second quarter down from were of decline to SG&A and XX% $X XXXX. or the

compensation reflecting XX% For the declined expenses period, benefits million costs. consulting $X.X and six-month or lower

of line, over million the of quarter For the recorded SG&A second decline a or gross bottom reflecting for second and in net of loss expenses. $XX.X $XX.X we charges loss the XX% million a an improvement quarter, XXXX, the special

June cash had $XX.X million at balance We XX. a of

next updating third guidance estimate balance are outlays month. to expected the and our XXXX Notes PIK due cash to year-end full million. Toggle the XXXX includes cash We expect year quarter end cash $XXX This to million redeem of with $XXX a

April of As SEC outlook today. always, file described in and on XX-Q specifically this section the the the later filings, will is guidance the our to factors filed Form report annual we subject in XX-K

I the and management and with enjoyed accounting the want our to I've to Finally, entire you. Dan, investors. thanks team, working my finance express organization

call With that, turn Dan. the I'll to back over

Dan Poneman

reactors the of pursuing role about doing thank U.S. their The needed you, to in new support for the reliable, to opportunities power I source efforts. and, excited want the climate will the around demand and at emerges. nuclear nuclear fuel here design, to partners shareholders close This its supply a teams significant for us and as efforts continued in future to fuel operate our meet is and will our am stem the by be Marian. of fuel stakeholders we next and the positions work are cycle Thank change. build the I electricity. home, of are I a it this These our technologies. provide are saying generation of to partners space. Centrus play how nuclear emissions-free world to establishing

happy be this time. to questions any will we Operator, at take

Dan Leistikow

Since operator. conclude time, Centrus' the the quarter you, speaking dialed who investors no We questions future. investor to to with in this will XXXX want I there's thank in. at online forward and call. look Thank second this listeners again you our

Operator

Thank you. This concludes teleconference. today's

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

Centrus Energy (LEU) 12 Aug 192019 Q2 Earnings call transcript