Centrus Energy Corp. (NYSE American: LEU) ('Centrus' or the 'Company')today reported second quarter 2023 results.
The Company reported net income of $12.7 million forthe three months ended June 30, 2023, compared to net income of $37.4 million for the three monthsended June 30, 2022.
The net income per common share in the three months ended June 30, 2023was $0.84 (basic) and $0.83 (diluted).'This quarter Centrus achieved a major milestone, receiving NRC authorization to begin first-of-a-kind HALEU production.' said Centrus President and CEO Daniel B. Poneman.
'We are on track tocomplete our initial HALEU production milestone by the end of the year. This will mark the firstnew US-technology, US-owned enrichment facility to launch operations since 1954. Meanwhile, bipartisan legislation to make a billion-dollar investment in building new U.S. uranium enrichmentcapacity is advancing in Congress. Momentum is building behind the consensus that it is high timeto revitalize America's nuclear energy supply chain. Centrus is working hard to answer that call.'Financial Results Centrus generated total revenue of $98.4 million and $99.1 million in the three months ended June30, 2023 and 2022, respectively, a decrease of $0.7 million
r the three months ended June 30, 2023 was due primarily to the specific contract and pricing mix of SWU contracts and the timing of their deliveriesquarter over quarter. This was reflected by a decrease in the average profit margin per SWU, partially offset by an increase in the volume of SWU sold and an increase in uranium gross profit.
HALEU UpdateIn June, Centrus announced that it had completed its NRC operational readiness review for HALEU production and received NRC approval to possess uranium at the Piketon, Ohio, site and to introduceuranium into the cascade of centrifuges Centrus has constructed. This is a critical milestone inadvancing toward first-of-a-kind production of HALEU and means that Centrus remains on track to begin production by the end of 2023. This will be the first new U.S.-owned, U.S.-technologyenrichment plan to begin production in 70 years.
About Centrus Energy Corp.
Centrus Energy is a trusted supplier of nuclear fuel and services for the nuclear power industry.Centrus provides value to its utility customers through the reliability and diversity of its supplysources - helping them meet the growing need for clean, affordable, carbon-free electricity. Since1998, the Company has provided its utility customers with more than 1,750 reactor years of fuel,which is equivalent to 7 billion tons of coal. With world-class technical and engineering capabilities,Centrus is also advancing the next generation of centrifuge technologies so that America can restoreits domestic uranium enrichment capability in the future. Find out more at centrusenergy.com.
Forward-Looking Statements:
This news release contains 'forward-looking statements' within the meaning of Section 21E of the Securities ExchangeAct of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-lookingstatements 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 oninformation available to us as of the date of this news release and represent management's current views andassumptions. Forward-looking statements are not guarantees of future performance, events or results and involve knownand unknown risks, uncertainties and other factors, which may be beyond our control.For Centrus Energy Corp., particular risks and uncertainties that could cause our actual future results to differ materiallyfrom those expressed in our forward-looking statements include but are not limited to the following which are, and will be, exacerbated by any worsening of the global business and economic environment as a result: risks related to the war inUkraine and geopolitical conflicts and the imposition of sanctions or other measures by the U.S. or foreign governments,organizations (including the United Nations, the European Union or other international organizations), or entities(including private entities or persons), that could directly or indirectly impact our ability to obtain, deliver, or sell lowenriched uranium ('LEU') or the Separative Work Units ('SWU') and natural uranium hexafluoride components ofLEU under our existing supply contract with the Russian government-owned entity TENEX, Joint-Stock Company('TENEX') or make related payments or deliveries of natural uranium; risks related to the refusal of TENEX to deliverLEU to us if, among other reasons, TENEX is unable to receive payments, or to receive the return of natural uraniumhexafluoride, as a result of any government, international or corporate actions or directions or other reasons; risks relatedto whether or when government funding or demand for high-assay low-enriched uranium ('HALEU') for government orcommercial uses will materialize and at what level; risks and uncertainties regarding funding for continuation anddeployment of the American Centrifuge technology; risks related to (i) our ability to perform and absorb costs under ouragreement with the U.S. Department of Energy ('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 contracts andfunding 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 theHALEU enrichment facility to produce HALEU after the completion of the HALEU Operation Contract or (ii) theHALEU enrichment facility may not be available to us as a future source of supply; risks related to our dependence onothers, such as TENEX, under our commercial supply agreement with TENEX and a subsidiary of Orano Cycle
('Orano'), under deliveries under our long-term commercial supply agreement with Orano and other suppliers(including, but not limited to, transporters) who provide us the goods and services we need to conduct our business; risksrelated to natural and other disasters, including the continued impact of the March 2011 earthquake and tsunami in Japanon the nuclear industry and on our business, results of operations and prospects; risks related to financial difficultiesexperienced by customers or suppliers, including possible bankruptcies, insolvencies, or any other situation, event oroccurrence 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 asupply/demand imbalance in the market for LEU; 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 importsof such LEU, including those imposed under the 1992 Russian Suspension Agreement as amended, international tradelegislation and other international trade restrictions; risks related to existing or new trade barriers and to contract termsthat limit our ability to procure LEU for, or deliver LEU to customers; risks related to pricing trends and demand in theuranium and enrichment markets and their impact on our profitability; risks related to the movement and timing ofcustomer orders; risks related to our reliance on third-party suppliers and service providers to provide essential productsand services to us; risks related to the fact that we face significant competition from major LEU producers who may beless cost sensitive or are wholly or partially government owned; risks that our ability to compete in foreign markets may be limited for various reasons; risks related to the fact that our revenue is largely dependent on our largest customers;risks related to our sales order book, including uncertainty concerning customer actions under current contracts and infuture contracting due to market conditions, global events or other factors including our lack of current productioncapability; risks related to uncertainty regarding our ability to commercially deploy a competitive enrichmenttechnology; risks related to the potential for demobilization or termination of our American Centrifuge work; risks thatwe will not be able to timely complete the work that we are obligated to perform; risks related to the government'sinability to satisfy its obligations under the HALEU Operation Contract; 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 bearcould be higher than expected; risks related to our significant long-term liabilities, including material unfunded defined benefit pension plan obligations and postretirement health and life benefit obligations; risks related to our 8.25% Notesmaturing in February 2027; risks of revenue and operating results fluctuating significantly from quarter to quarter, and insome 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 ofour intangible assets related to the sales order book and customer relationships; risks related to the limited tradingmarkets in our securities; risks related to decisions made by our Class B stockholders regarding their investment in theCompany based upon factors that are unrelated to the Company's performance; risks that a small number of holders ofour Class A Common Stock (whose interests may not be aligned with other holders of our Class A Common Stock), mayexert significant influence over the direction of the Company and may be motivated by interests that are not aligned withthe Company's other Class A stockholders; risks related to (i) the use of our net operating losses ('NOLs') carryforwardsand net unrealized built-in losses ('NUBILs') to offset future taxable income and the use of the Rights Agreement, datedas 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 theexpiration thereof and NUBILs; failures or security breaches of our information technology systems; risks related to ourability to attract and retain key personnel; risks related to actions, including reviews, that may be taken by the U.S.government, the Russian government, or other governments that could affect our ability to perform under our contractualobligations or the ability of our sources of supply to perform under their contractual obligations to us; risks related to ourability to perform and receive timely payment under our agreements with the DOE or other government agencies,including risks and uncertainties related to the ongoing funding by the government and potential audits; risks related tochanges or termination of our agreements with the U.S. government or other counterparties, or the exercise of contractremedies by such counterparties; risks related to the competitive environment for our products and services; risks relatedto changes in the nuclear energy industry; risks related to the competitive bidding process associated with obtainingcontracts, including government contracts; 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 productsor services obsolete or noncompetitive; risks related to potential strategic transactions that could be difficult toimplement, that could disrupt our business or that could change our business profile significantly; risks related to theoutcome of legal proceedings and other contingencies (including lawsuits and government investigations or audits); risksrelated to the impact of government regulation and policies including by the DOE and the U.S. Nuclear RegulatoryCommission; risks of accidents during the transportation, handling, or processing of toxic hazardous or radioactivematerial 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 arisingfrom past activities at sites we currently operate or past activities at sites that we no longer operate, including thePaducah, Kentucky, and Portsmouth, Ohio, gaseous diffusion plants and other risks and uncertainties discussed in thisnews release and in our filings with the SEC.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 filingswith the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2022, under Part II, Item 1A- 'Risk Factors' in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, and in our filings with theSEC that attempt to advise interested parties of the risks and factors that may affect our business. We do not undertake toupdate our forward-looking statements to reflect events or circumstances that may arise after the date of this newsrelease, except as required by law.
Contact:
Email: LeistikowD@centrusenergy.com
CENTRUS ENERGY CORP. 
