UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
_________________
Date of Report (Date of earliest event reported): October 28, 2024
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(301 ) 564-3200
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On October 28, 2024 , Centrus Energy Corp. (the “Company”) issued a press release announcing financial results for the quarter ended September 30, 2024. A copy of the press release is being furnished as Exhibit 99.1 and is incorporated herein by reference.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit No. | Description | ||||
| 99.1 | |||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document) | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Centrus Energy Corp. | |||||||||||
| Date: | By: | /s/ Kevin J. Harrill | |||||||||
| Kevin J. Harrill | |||||||||||
| Senior Vice President, Chief Financial Officer, and Treasurer | |||||||||||
EXHIBIT 99.1
FOR IMMEDIATE RELEASE:
October 28, 2024
Centrus Reports Third Quarter 2024 Results
•Selected by the U.S. Department of Energy (“DOE”) as an awardee for High Assay Low-Enriched Uranium (“HALEU”) production and HALEU deconversion contracts
•Signed $1.1 billion in new contingent commitments to support deployment of Low-Enriched Uranium (“LEU”) production, for a total of $2.0 billion year-to-date
•Net loss of $5.0 million on $57.7 million in revenue, compared to net income of $8.2 million on $51.3 million in revenue in Q3 2023
•Consolidated cash balance of $194.3 million as of September 30, 2024
BETHESDA, Md. - Centrus Energy Corp. (NYSE American: LEU) (“Centrus” or the “Company”) today reported third quarter 2024 results. The Company reported a net loss of $5.0 million for the three months ended September 30, 2024, which is $0.30 (basic and diluted) per common share.
“Centrus has made enormous progress in recent months in securing two critical awards from the Department of Energy as well as $2.0 billion in contingent commitments from our customers to support a potential expansion of our Ohio enrichment facility,” said Centrus President and CEO Amir Vexler. “The recent announcements by Amazon, Google, and Microsoft to power their data centers with carbon-free nuclear energy has lifted our entire industry, and underscores the urgency of our work to restore a robust domestic nuclear fuel supply chain. We look forward to delivering new enrichment capacity that can fuel the reactors of today as well as the new generation of advanced reactors.”
Financial Results
Centrus generated total revenue of $57.7 million and $51.3 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $6.4 million.
Revenue from the LEU segment was $34.8 million and $40.5 million for the three months ended September 30, 2024 and 2023, respectively, a decrease of $5.7 million. SWU revenue decreased by $5.7 million as a result of a decrease in the volume of SWU sold, partially offset by an increase in the average price of SWU sold.
Revenue from the Technical Solutions segment was $22.9 million and $10.8 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $12.1 million. Revenue generated under the HALEU Operation Contract between the Company and the DOE signed in 2022 increased $12.7 million due to the transition from Phase 1 to Phase 2 in late 2023, as further described below. The remaining change was attributable to other contracts.
Cost of sales for the LEU segment was $29.6 million and $30.4 million for the three months ended September 30, 2024 and 2023, respectively, a decrease of $0.8 million. SWU costs decreased as a result of a decrease in the volume of SWU sold, partially offset by an increase in the average unit cost of SWU sold. Cost of sales for the three months ended September 30, 2024 and 2023, included $1.9 million and $0.6 million, respectively, for the revaluation of inventory loans.
Cost of sales for the Technical Solutions segment was $19.2 million and $9.6 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $9.6 million. Costs incurred for the HALEU Operation Contract increased by $8.8 million due to the transition from Phase 1 to Phase 2 in late 2023. The remaining increase was attributable to other contracts.
Gross profit for the Company was $8.9 million and $11.3 million for the three months ended September 30, 2024 and 2023, respectively. The decrease for the three months ended September 30, 2024 was primarily attributed to the decrease in gross profit in the LEU segment, partially offset by the increase in gross profit in the Technical Solutions segment, driven by the transition from Phase 1 to Phase 2 of the HALEU Operation Contract in late 2023. LEU customers generally have multi-year contracts that carry annual purchase commitments, not quarterly commitments. The gross profit in our LEU business varies based upon the timing of those contracts. The pricing of those deliveries varies depending upon the market conditions at the time the contract was signed with a portion of our outstanding contracts entered into at historically higher prices. The Company’s gross profit in the LEU segment was lower primarily due to the decrease in sales volume, partially offset by the composition of contracts in the current quarter, which included higher-priced legacy contracts.
Domestic Enrichment Update
Centrus is continuing to produce HALEU at its American Centrifuge Plant in Piketon, Ohio, under the HALEU Operation Contract with the DOE. The DOE is contractually required to provide storage cylinders necessary to collect the HALEU uranium hexafluoride (“UF6”) product from Centrus’ centrifuge cascade. Using the storage cylinders currently made available by the DOE, Centrus has now achieved cumulative deliveries to the DOE of approximately 332 kilograms of HALEU UF6.
Additionally, on October 16, 2024, DOE selected Centrus subsidiary American Centrifuge Operating, LLC (“ACO”), as one of the awardees under a competitive solicitation aimed at expanding domestic commercial production of HALEU. The contract has a minimum value of $2.0 million and a total contract ceiling of $2.7 billion for all awardees. On October 4, 2024, DOE selected ACO and other companies under a separate solicitation aimed at HALEU deconversion, a subsequent step in the HALEU production process. The ultimate dollar amount associated with these contracts and the potential scale of the expansion supported will depend upon task orders subsequently issued by the DOE to ACO under the contracts.
The two HALEU related awards, as well as a separate Request for Proposals for LEU production which has not yet been awarded, are backed by more than $3.4 billion in appropriations that have been provided by Congress to date.
The Prohibiting Russian Imports Act
The Prohibiting Russian Imports Act enacted in May 2024 imposed a ban on imports of uranium products from Russia. The ban which went into effect on August 11, 2024, empowers the DOE to issue waivers for certain imports through 2027. On July 18, 2024, the DOE issued the Company a waiver allowing it to import LEU from Russia for deliveries already committed by the Company to its U.S. customers in 2024 and 2025. For the years 2026 and 2027, the DOE deferred its decision to an unspecified date closer in time to the deliveries. The Company is also seeking a waiver to allow for importation of LEU from Russia for processing and reexport to the Company's foreign customers, and also plans to request a waiver covering imports in 2026 and 2027 that Centrus is obligated to purchase but has not yet committed to particular customers. It is uncertain whether any further waivers will be granted to the Company and, if granted, whether any waiver would be granted in a timely manner or will be sufficient in scope to support the Company’s intended operations.
Backlog
The Company’s backlog is $3.8 billion as of September 30, 2024 and extends to 2040. Our LEU segment backlog as of September 30, 2024 is approximately $2.8 billion and includes future SWU and uranium deliveries primarily under medium and long-term contracts with fixed commitments and approximately $2.0 billion in contingent LEU sales commitments, subject to entering into definitive agreements, in support of potential construction of LEU production capacity at the Piketon, Ohio facility. The contingent LEU sales commitments also depend on our ability to secure substantial public and private investment. Our Technical Solutions segment backlog is approximately $0.9 billion as of September 30, 2024 and includes both funded amounts (services for which funding has been both authorized and appropriated by the customer), unfunded amounts (services for which funding has not been appropriated), and unexercised options.
About Centrus Energy Corp.
Centrus Energy is a trusted supplier of nuclear fuel components and services for the nuclear power industry. Centrus provides value to its utility customers through the reliability and diversity of its supply sources – helping them meet the growing need for clean, affordable, carbon-free electricity. Since 1998, the Company has provided its utility customers with more than 1,850 reactor years of fuel, which is equivalent to more than 7 billion tons of coal. With world-class technical and engineering capabilities, Centrus is pioneering production of High-Assay, Low-Enriched Uranium and is leading the effort to restore America’s uranium enrichment capabilities at scale to meet America’s clean energy, energy security, and national security needs. Find out more at centrusenergy.com.
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Forward-Looking Statements:
This news release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact 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. These forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions with respect to future events and operational, economic and financial performance. Forward-looking statements are not guarantees of future performance, events or results and involve known and unknown risks, uncertainties and other factors, which may be beyond our control.
For Centrus Energy Corp., particular risks and uncertainties (hereinafter “risks”) that could cause our actual future results to differ materially from those expressed in our forward-looking statements and which are, and may be, exacerbated by any worsening of the global business and economic environment include but are not limited to the following: risks related to the U.S. Department of Energy (“DOE”) not issuing any task orders to any awardee under any of the HALEU or Deconversion contracts or any task orders to the Company under either of those contracts; risks related to the Company not winning a task order under the HALEU contract to expand its HALEU plant; risks related to DOE not providing adequate share of the appropriated funding; risks related to our ability to secure financing to expand our plant; risks related to our ability to increase capacity in a timely manner to meet market demand or our contractual obligations; risks related to DOE not awarding any contracts to the Company in response to the Company’s remaining proposals; risks related to the war and geopolitical conflicts and the imposition of sanctions or other measures, including bans or tariffs, by (i) the U.S. or foreign governments and institutions such as the European Union, (ii) organizations (including the United Nations or other international organizations), or (iii) entities (including private entities or persons), that could directly or indirectly impact our ability to obtain, deliver, transport or sell low enriched uranium (“LEU”) or the SWU and natural uranium hexafluoride components of LEU delivered to us under the existing supply contract with the Russian government-owned entity, TENEX, Joint-Stock Company (“TENEX”) (“TENEX Supply Contract”) or make related payments or deliveries of natural uranium hexafluoride to TENEX; risks related to laws that ban (i) imports of Russian LEU into the United States, including the Import Ban Act, or (ii) transactions with Rosatom or its subsidiaries, which includes TENEX; risks related to our potential inability to secure additional waivers or other exceptions from the ban or sanction in a timely manner or at all in order to allow us to continue importing Russian LEU under the TENEX Supply Contract or otherwise doing business with TENEX or implementing the TENEX Supply Contract; risks related to TENEX’s refusal or inability to deliver LEU to us for any reason including (i) U.S. or foreign government sanctions or bans are imposed on LEU from Russia or on TENEX, (ii) TENEX is unable or unwilling to deliver LEU, receive payments, receive the return of natural uranium hexafluoride, or conduct other activities related to the TENEX Supply Contract, or (iii) TENEX elects, or is directed (including by its owner or the Russian government), to limit or stop transactions with us or with the United States or other countries; risks related to disputes with third parties, including contractual counterparties, that could result if we cannot receive, or otherwise are unable to receive timely deliveries of LEU under the TENEX Supply Contract; risks related to our dependence on others, such as TENEX, under the TENEX Supply Contract, a subsidiary of Orano Cycle (“Orano”), under our long-term commercial supply agreement with Orano, and other suppliers (including, but not limited to, transporters) who provide, or deliver, us the goods and services we need to conduct our business and any resulting negative impact on our liquidity; risks related to our ability to sell or deliver the LEU we procure pursuant to our purchase obligations under our supply agreements and the impacts of sanctions or limitations on imports of such LEU, including those imposed under the 1992 Russian Suspension Agreement as amended, international trade legislation and other international trade restrictions or the Import Ban Act; risks related to the increasing quantities of LEU being imported into the U.S. from China and the impact on our ability to make future LEU or SWU sales or ability to finance any build out of our enrichment capacities; risks related to whether or when government funding or demand for high-assay low-enriched uranium (“HALEU”) for government or commercial uses will materialize and at what level; risks regarding funding for continuation and deployment of the American Centrifuge technology; risks related to (i) our ability to perform under our agreement with the DOE to deploy and operate a cascade of centrifuges to demonstrate production of HALEU for advanced reactors (the “HALEU Operation Contract”), (ii) our ability to obtain new contracts and funding to be able to continue operations and (iii) our ability to obtain and/or perform under other agreements; risks that (i) we may not obtain the full benefit of the HALEU Operation Contract and may not be able or allowed to operate the HALEU enrichment facility to produce HALEU after the completion of the HALEU Operation Contract or (ii) the output from the HALEU enrichment facility may not be
available to us as a future source of supply; risks related to existing or new trade barriers and to contract terms that limit our ability to procure LEU for, or deliver LEU to, customers; risks related to pricing trends and demand in the uranium and enrichment markets and their impact on our profitability; risks related to the movement and timing of customer orders; risks related to the fact that we face significant competition from major LEU producers who may be less cost sensitive or are wholly or partially government owned; risks that our ability to compete in foreign markets may be limited for various reasons, including policies that favor indigenous suppliers over foreign suppliers of goods and services; risks related to the fact that our revenue is largely dependent on our largest customers; risks related to our backlog, including uncertainty concerning customer actions under current contracts and in future contracting due to market conditions, global events or other factors, including our lack of current production capability; risks related to natural and other disasters, including the continued impact of the March 2011 earthquake and tsunami in Japan on the nuclear industry and on our business, results of operations and prospects; risks related to financial difficulties experienced by customers or suppliers, including possible bankruptcies, insolvencies, or any other situation, event or occurrence that affect the ability of others to pay for our products or services in a timely manner or at all; risks related to pandemics, endemics, and other health crises; risks related to the impact and potential extended duration of a supply/demand imbalance in the market for LEU; risks related to reliance on the only firm that has the necessary permits and capability to transport LEU from Russia to the United States and that firm’s ability to maintain those permits and capabilities or secure additional permits; risks related to a government shutdown or lack of funding that could result in program cancellations, disruptions and/or stop work orders and could limit the U.S. government’s ability to make timely payments, and our ability to perform our U.S. government contracts and successfully compete for work; risks related to changes to the U.S. government’s appropriated funding levels for HALEU Operation Contract due to the upcoming November elections or other reasons; risks related to uncertainty regarding our ability to commercially deploy competitive enrichment technology; risks related to the potential for demobilization or termination of the HALEU Operation Contract; risks that we will not be able to timely complete the work that we are obligated to perform; risks related to the government’s inability to satisfy its obligations, including supplying government furnished equipment necessary for us to produce and deliver HALEU under the HALEU Operation Contract and processing security clearance applications due to a government shutdown or other reasons; risks related to our ability to obtain the government’s approval to extend the term of, or the scope of permitted activities under, our lease with the DOE in Piketon, Ohio; risks related to cybersecurity incidents that may impact our business operations; risks related to our ability to perform fixed-price and cost-share contracts such as the HALEU Operation Contract, including the risk that costs that we must bear could be higher than expected and the risk related to complying with stringent government contractual requirements; risks related to attracting qualified employees necessary for the potential expansion of our operations; risks related to our long-term liabilities, including material unfunded defined benefit pension plan obligations and postretirement health and life benefit obligations; risks related to our 8.25% Notes maturing in February 2027; risks of revenue and operating results fluctuating significantly from quarter to quarter, and in some cases, year to year; risks related to the impact of financial market conditions on our business, liquidity, prospects, pension assets and insurance facilities; risks related to the Company’s capital concentration; risks related to the value of our intangible assets related to LEU’s backlog and customer relationships; risks related to the limited trading markets in our securities; risks related to decisions made by our Class B Common Stock stockholders regarding their investment in the Company, including decisions based upon factors that are unrelated to the Company’s performance; risks that a small number of holders of our Class A Common Stock (whose interests may not be aligned with other holders of our Class A Common Stock) may exert significant influence over the direction of the Company and may be motivated by interests that are not aligned with the Company’s other Class A stockholders; risks related to (i) the use of our net operating losses (“NOLs”) carryforwards and net unrealized built-in losses (“NUBILs”) to offset future taxable income and the use of the Rights Agreement, dated as of April 6, 2016 to prevent an “ownership change” as defined in Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) our ability to generate taxable income to utilize all or a portion of the NOLs prior to the expiration thereof and NUBILs; risks related to failures or security breaches of our information technology systems; risks related to our ability to attract and retain key personnel; risks that we will be unable to obtain new business opportunities or achieve market acceptance of our products and services or that products or services provided by others will render our products or services obsolete or noncompetitive; risks related to actions, including reviews or audits, that may be taken by the U.S. government, the Russian government, or other governments that could affect our ability to perform under our contractual obligations or the ability of our sources of supply to perform under their contractual obligations to us; risks related to our ability to perform and receive timely payment under our agreements with the DOE or other government agencies, including risks related to the ongoing funding by the government and potential audits; risks related to changes or termination of our agreements with the U.S. government or other counterparties, or the exercise of contract remedies by such counterparties; risks related to the competitive environment for our products and services; risks related to
changes in the nuclear energy industry; risks related to the competitive bidding process associated with obtaining contracts, including government contracts; risks related to potential strategic transactions that could be difficult to implement, that could disrupt our business or that could change our business profile significantly; risks related to the outcome of legal proceedings and other contingencies (including lawsuits and government investigations or audits); risks related to the impact of government regulation and policies or interpretation of laws or regulations, including by the DOE, the U.S. Department of Commerce and the U.S. Nuclear Regulatory Commission; risks of accidents during the transportation, handling, or processing of toxic hazardous or radioactive material that may pose a health risk to humans or animals, cause property or environmental damage, or result in precautionary evacuations, and lead to claims against the Company; risks associated with claims and litigation arising from past activities at sites we currently operate or past activities at sites we no longer operate, including the Paducah, Kentucky, and Portsmouth, Ohio, gaseous diffusion plants; and other risks discussed in this news release and in our filings with the SEC.
Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. 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 not be relied upon as a predictor of actual results. Readers are urged to carefully review and consider the various disclosures made in this news release and in our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2023, under Part II, Item 1A - “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and in our filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.
Contacts:
Investors: Dan Leistikow at LeistikowD@centrusenergy.com
Media: Lindsey Geisler at GeislerLR@centrusenergy.com
Media: Lindsey Geisler at GeislerLR@centrusenergy.com
CENTRUS ENERGY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited; in millions, except share and per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Separative work units | $ | 34.8 | $ | 40.5 | $ | 198.1 | $ | 147.4 | |||||||||||||||
| Uranium | — | — | 29.9 | 39.5 | |||||||||||||||||||
| Technical solutions | 22.9 | 10.8 | 62.4 | 29.7 | |||||||||||||||||||
| Total revenue | 57.7 | 51.3 | 290.4 | 216.6 | |||||||||||||||||||
| Cost of Sales: | |||||||||||||||||||||||
| Separative work units and uranium | 29.6 | 30.4 | 189.3 | 126.1 | |||||||||||||||||||
| Technical solutions | 19.2 | 9.6 | 51.4 | 28.2 | |||||||||||||||||||
| Total cost of sales | 48.8 | 40.0 | 240.7 | 154.3 | |||||||||||||||||||
| Gross profit | 8.9 | 11.3 | 49.7 | 62.3 | |||||||||||||||||||
| Advanced technology costs | 4.1 | 3.3 | 13.9 | 10.8 | |||||||||||||||||||
| Selling, general and administrative | 10.0 | 9.5 | 25.7 | 27.5 | |||||||||||||||||||
| Amortization of intangible assets | 2.4 | 1.4 | 7.2 | 4.2 | |||||||||||||||||||
| Operating income (loss) | (7.6) | (2.9) | 2.9 | 19.8 | |||||||||||||||||||
| Nonoperating components of net periodic benefit loss (income) | 0.8 | (0.6) | (15.4) | 0.1 | |||||||||||||||||||
| Interest expense | 0.1 | 0.4 | 0.8 | 0.9 | |||||||||||||||||||
| Investment income | (2.6) | (2.3) | (7.8) | (6.4) | |||||||||||||||||||
| Other expense (income), net | — | (1.0) | 0.1 | (1.0) | |||||||||||||||||||
| Income (loss) before income taxes | (5.9) | 0.6 | 25.2 | 26.2 | |||||||||||||||||||
| Income tax expense (benefit) | (0.9) | (7.6) | 5.7 | (1.9) | |||||||||||||||||||
| Net income (loss) and comprehensive income (loss) | $ | (5.0) | $ | 8.2 | $ | 19.5 | $ | 28.1 | |||||||||||||||
| Net income (loss) per share: | |||||||||||||||||||||||
| Basic | $ | (0.30) | $ | 0.53 | $ | 1.21 | $ | 1.86 | |||||||||||||||
| Diluted | $ | (0.30) | $ | 0.52 | $ | 1.20 | $ | 1.82 | |||||||||||||||
| Average number of common shares outstanding (in thousands): | |||||||||||||||||||||||
| Basic | 16,422 | 15,374 | 16,172 | 15,127 | |||||||||||||||||||
| Diluted | 16,422 | 15,626 | 16,236 | 15,415 | |||||||||||||||||||
CENTRUS ENERGY CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
| Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| OPERATING | |||||||||||
| Net income | $ | 19.5 | $ | 28.1 | |||||||
| Adjustments to reconcile net income to cash used in operating activities: | |||||||||||
| Depreciation and amortization | 7.9 | 4.8 | |||||||||
| Accrued loss on long-term contract | — | (16.7) | |||||||||
| Deferred tax assets | 5.5 | (2.3) | |||||||||
| Gain on remeasurement of retirement benefit plans | (16.8) | (0.9) | |||||||||
| Equity related compensation | 1.1 | 2.0 | |||||||||
| Revaluation of inventory borrowings | 3.7 | 3.5 | |||||||||
| Other reconciling adjustments, net | — | (1.0) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 30.3 | 28.7 | |||||||||
| Inventories | 85.4 | 23.0 | |||||||||
| Inventories owed to customers and suppliers | (83.5) | (60.4) | |||||||||
| Other current assets | 3.0 | 13.4 | |||||||||
| Accounts payable and other liabilities | (8.8) | (2.5) | |||||||||
| Payables under inventory purchase agreements | (41.9) | (29.8) | |||||||||
| Deferred revenue and advances from customers, net of deferred costs | (19.9) | 3.7 | |||||||||
| Pension and postretirement benefit liabilities | (6.2) | (1.7) | |||||||||
| Other changes, net | (0.2) | (0.7) | |||||||||
| Cash used in operating activities | (20.9) | (8.8) | |||||||||
| INVESTING | |||||||||||
| Capital expenditures | (3.4) | (1.1) | |||||||||
| Cash used in investing activities | (3.4) | (1.1) | |||||||||
| FINANCING | |||||||||||
| Proceeds from the issuance of common stock, net | 23.4 | 23.2 | |||||||||
| Exercise of stock options | 0.4 | — | |||||||||
| Common stock withheld for tax obligations under stock-based compensation plan | (0.3) | (3.0) | |||||||||
| Payment of interest classified as debt | (6.1) | (6.1) | |||||||||
| Other | — | (0.2) | |||||||||
| Cash provided by financing activities | 17.4 | 13.9 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | (0.6) | |||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | (6.9) | 3.4 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 233.8 | 212.4 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 226.9 | $ | 215.8 | |||||||
| Supplemental cash flow disclosures: | |||||||||||
| Cash paid for income taxes | $ | 0.6 | $ | — | |||||||
| Non-cash activities: | |||||||||||
| Adjustment of right to use lease assets from lease modification | $ | — | $ | 4.2 | |||||||
| Property, plant and equipment included in accounts payable and accrued liabilities | $ | 0.1 | $ | 0.3 | |||||||
| Common stock withheld for tax obligations under stock-based compensation plan | $ | 0.1 | $ | — | |||||||
CENTRUS ENERGY CORP.
CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions, except share and per share data)
| September 30, 2024 | December 31, 2023 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 194.3 | $ | 201.2 | |||||||
| Accounts receivable | 19.1 | 49.4 | |||||||||
| Inventories | 190.7 | 306.4 | |||||||||
| Deferred costs associated with deferred revenue | 74.9 | 117.6 | |||||||||
| Other current assets | 37.9 | 10.8 | |||||||||
| Total current assets | 516.9 | 685.4 | |||||||||
Property, plant and equipment, net of accumulated depreciation of $4.9 million and $4.3 million as of September 30, 2024 and December 31, 2023, respectively | 8.9 | 7.0 | |||||||||
| Deposits for financial assurance | 2.6 | 32.4 | |||||||||
| Intangible assets, net | 32.2 | 39.4 | |||||||||
| Deferred tax assets | 23.0 | 28.5 | |||||||||
| Other long-term assets | 7.4 | 3.5 | |||||||||
| Total assets | $ | 591.0 | $ | 796.2 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued liabilities | $ | 32.8 | $ | 41.9 | |||||||
| Payables under inventory purchase agreements | — | 41.9 | |||||||||
| Inventories owed to customers and suppliers | 0.8 | 84.3 | |||||||||
| Deferred revenue and advances from customers | 222.6 | 282.6 | |||||||||
| Short-term inventory loans | 54.6 | 14.3 | |||||||||
| Current debt | 6.1 | 6.1 | |||||||||
| Total current liabilities | 316.9 | 471.1 | |||||||||
| Long-term debt | 83.5 | 89.6 | |||||||||
| Postretirement health and life benefit obligations | 75.7 | 81.2 | |||||||||
| Pension benefit liabilities | 4.6 | 17.3 | |||||||||
| Advances from customers | — | 32.8 | |||||||||
| Long-term inventory loans | 26.5 | 63.1 | |||||||||
| Other long-term liabilities | 7.4 | 8.8 | |||||||||
| Total liabilities | 514.6 | 763.9 | |||||||||
| Stockholders’ equity: | |||||||||||
Preferred stock, par value $1.00 per share, 20,000,000 shares authorized | |||||||||||
| Series A Participating Cumulative Preferred Stock, none issued | — | — | |||||||||
| Series B Senior Preferred Stock, none issued | — | — | |||||||||
| Class A Common Stock, par value $0.10 per share, 70,000,000 shares authorized, 15,677,224 and 14,956,434 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 1.6 | 1.5 | |||||||||
| Class B Common Stock, par value $0.10 per share, 30,000,000 shares authorized, 719,200 shares issued and outstanding as of September 30, 2024 and December 31, 2023 | 0.1 | 0.1 | |||||||||
| Excess of capital over par value | 205.2 | 180.5 | |||||||||
| Accumulated deficit | (130.0) | (149.5) | |||||||||
| Accumulated other comprehensive loss | (0.5) | (0.3) | |||||||||
| Total stockholders’ equity | 76.4 | 32.3 | |||||||||
| Total liabilities and stockholders’ equity | $ | 591.0 | $ | 796.2 | |||||||