"I am pleased that, in this challenging time, we are able to report a positive net income for the quarter. This is the result of the hard work we've done in recent years to diversify our business, reduce our debt, and lower our cost structure," said
Poneman also welcomed Secretary of Energy Brouillette's recent release of the
In addition, last month,
Financial Results
Revenue from the LEU segment declined
Revenue from the technical solutions segment increased
As we have noted in recent years our revenues can vary significantly from quarter to quarter depending upon the timing of when customers elect to take their annual deliveries and other factors. Therefore, our operating results and cash flows can fluctuate significantly from quarter to quarter and year to year. Operating results for the three months ended
About
With world-class technical capabilities,
Forward-Looking Statements
This Quarterly Report on Form 10-Q, including Management's Discussion and Analysis of Financial Condition and Results of Operations in Part I, Item 2, contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. In this context, forward-looking statements mean statements related to future events, may address our expected future business and financial performance, and often contain words such as "expects", "anticipates", "intends", "plans", "believes", "will", "should", "could", "would" or "may" and other words of similar meaning. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For
These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement. Accordingly, forward-looking statements should be not be relied upon as a predictor of actual results. Readers are urged to carefully review and consider the various disclosures made in this report and in our other filings with the
Contacts:
Investors:
Media:
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
|||||||
(Unaudited; in millions, except share and per share data) |
|||||||
Three Months Ended |
|||||||
2020 |
2019 |
||||||
Revenue: |
|||||||
Separative work units |
$ |
30.7 |
$ |
12.4 |
|||
Uranium |
— |
22.7 |
|||||
Technical solutions |
14.3 |
3.6 |
|||||
Total revenue |
45.0 |
38.7 |
|||||
Cost of Sales: |
|||||||
Separative work units and uranium |
13.3 |
38.3 |
|||||
Technical solutions |
12.1 |
5.9 |
|||||
Total cost of sales |
25.4 |
44.2 |
|||||
Gross profit (loss) |
19.6 |
(5.5) |
|||||
Advanced technology costs |
0.9 |
6.6 |
|||||
Selling, general and administrative |
8.5 |
8.1 |
|||||
Amortization of intangible assets |
1.4 |
1.1 |
|||||
Special charges (credits) for workforce reductions |
(0.1) |
(0.1) |
|||||
Gain on sales of assets |
— |
(0.4) |
|||||
Operating income (loss) |
8.9 |
(20.8) |
|||||
Nonoperating components of net periodic benefit expense (income) |
(2.2) |
(0.1) |
|||||
Interest expense |
0.1 |
1.0 |
|||||
Investment income |
(0.4) |
(0.7) |
|||||
Income (loss) before income taxes |
11.4 |
(21.0) |
|||||
Income tax expense (benefit) |
0.1 |
(0.1) |
|||||
Net income (loss) and comprehensive income (loss) |
11.3 |
(20.9) |
|||||
Preferred stock dividends - undeclared and cumulative |
2.0 |
2.0 |
|||||
Net income (loss) allocable to common stockholders |
$ |
9.3 |
$ |
(22.9) |
|||
Net income (loss) per common share: |
|||||||
Basic |
$ |
0.97 |
$ |
(2.40) |
|||
Diluted |
$ |
0.95 |
$ |
(2.40) |
|||
Average number of common shares outstanding (in thousands): |
|||||||
Basic |
9,619 |
9,532 |
|||||
Diluted |
9,839 |
9,532 |
|
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited; in millions, except share and per share data) |
|||||||
|
|
||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
109.2 |
$ |
130.7 |
|||
Accounts receivable |
17.5 |
21.1 |
|||||
Inventories |
67.9 |
64.5 |
|||||
Deferred costs associated with deferred revenue |
144.1 |
144.1 |
|||||
Other current assets |
7.8 |
9.2 |
|||||
Total current assets |
346.5 |
369.6 |
|||||
Property, plant and equipment, net of accumulated depreciation of |
3.6 |
3.7 |
|||||
Deposits for financial assurance |
5.7 |
5.7 |
|||||
Intangible assets, net |
68.1 |
69.5 |
|||||
Other long-term assets |
6.9 |
7.4 |
|||||
Total assets |
$ |
430.8 |
$ |
455.9 |
|||
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|||||||
Current liabilities: |
|||||||
Accounts payable and accrued liabilities |
$ |
50.7 |
$ |
50.7 |
|||
Payables under SWU purchase agreements |
6.1 |
8.1 |
|||||
Inventories owed to customers and suppliers |
7.4 |
5.6 |
|||||
Deferred revenue and advances from customers |
243.0 |
266.3 |
|||||
Current debt |
6.1 |
6.1 |
|||||
Total current liabilities |
313.3 |
336.8 |
|||||
Long-term debt |
111.0 |
114.1 |
|||||
Postretirement health and life benefit obligations |
134.7 |
138.6 |
|||||
Pension benefit liabilities |
137.2 |
141.8 |
|||||
Advances from customers |
29.4 |
29.4 |
|||||
Other long-term liabilities |
30.6 |
32.1 |
|||||
Total liabilities |
756.2 |
792.8 |
|||||
Stockholders' deficit: |
|||||||
Preferred stock, par value |
|||||||
Series A Participating Cumulative Preferred Stock, none issued |
|||||||
Series B Senior Preferred Stock, 7.5% cumulative, 104,574 shares issued and outstanding and |
— |
— |
|||||
Class A Common Stock, par value |
4.6 |
4.6 |
|||||
Class B Common Stock, par value |
0.8 |
0.8 |
|||||
Excess of capital over par value |
0.1 |
0.1 |
|||||
Accumulated deficit |
61.8 |
61.5 |
|||||
Accumulated other comprehensive income, net of tax |
(393.7) |
(405.0) |
|||||
Total stockholders' deficit |
1.0 |
1.1 |
|||||
Total liabilities and stockholders' deficit |
(325.4) |
(336.9) |
|||||
$ |
430.8 |
$ |
455.9 |
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited; in millions) |
|||||||
Three Months Ended |
|||||||
2020 |
2019 |
||||||
OPERATING |
|||||||
Net income (loss) |
$ |
11.3 |
$ |
(20.9) |
|||
Adjustments to reconcile net loss to cash used in operating activities: |
|||||||
Depreciation and amortization |
1.5 |
1.3 |
|||||
PIK interest on paid-in-kind toggle notes |
— |
0.4 |
|||||
Gain on sales of assets |
— |
(0.4) |
|||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
3.6 |
11.2 |
|||||
Inventories, net |
0.1 |
25.6 |
|||||
Accounts payable and other liabilities |
1.3 |
1.2 |
|||||
Payables under SWU purchase agreements |
(1.9) |
(46.0) |
|||||
Deferred revenue and advances from customers, net of deferred costs |
(23.3) |
— |
|||||
Accrued loss on long-term contract |
(3.5) |
— |
|||||
Pension and postretirement benefit liabilities |
(8.6) |
(4.2) |
|||||
Other, net |
1.0 |
(0.1) |
|||||
Cash used in operating activities |
(18.5) |
(31.9) |
|||||
INVESTING |
— |
— |
|||||
FINANCING |
|||||||
Payments for deferred financing costs |
(0.1) |
— |
|||||
Exercise of stock options |
0.2 |
— |
|||||
Payment of interest classified as debt |
(3.1) |
(3.1) |
|||||
Cash used in financing activities |
(3.0) |
(3.1) |
|||||
Decrease in cash, cash equivalents and restricted cash |
(21.5) |
(35.0) |
|||||
Cash, cash equivalents and restricted cash, beginning of period |
136.6 |
159.7 |
|||||
Cash, cash equivalents and restricted cash, end of period |
$ |
115.1 |
$ |
124.7 |
|||
Supplemental cash flow information: |
|||||||
Interest paid in cash |
$ |
— |
$ |
0.4 |
|||
Non-cash activities: |
|||||||
Conversion of interest payable-in-kind to debt |
$ |
— |
$ |
0.7 |
|||
Deferred financing costs included in accounts payable and accrued liabilities |
$ |
(0.5) |
$ |
— |
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