BETHESDA, Md., March 18, 2021 /PRNewswire/ -- Centrus
Energy Corp. (NYSE American: LEU) today reported results for the
fourth quarter 2020 and full year ended December 31, 2020.
2020 Summary:
Financial Highlights
- Net income of $54.4 million in
2020 or $0.57 per share
(diluted)
- Adjusted net income per share of $4.71 (diluted) (see non-GAAP reconciliation
table below)
- Total revenues of $247.2 million,
including LEU segment revenue of $190.5
million
- Year-end cash balance of $152.0
million
- Raised $25 million, before
expenses, through an underwritten public offering of Class A Common
Stock
- Completed cash tender offer to retire approximately
$60 million of Series B Senior
Preferred Stock at a 25-percent discount
- Completed a $30.4 million pension
plan annuitization
Commercial Highlights
- New LEU sales commitments valued over $100 million from November through the end of
January
- Secured sufficient import quotas in extension of the Russian
Suspension Agreement, providing affordable supply to U.S. customers
through 2028
- License amendment application to produce High-Assay,
Low-Enriched Uranium (HALEU) accepted by the NRC for formal
review
"Despite the unprecedented health crisis posed by COVID-19, with
a large portion of our staff shifting to telework, Centrus has had
a great year that saw us return to profitability, improve our
balance sheet, and deliver value to stockholders with a higher
share price," said Daniel Poneman,
Centrus President and Chief Executive Officer. "Our technical
solutions team continues to make strong progress on the High-Assay,
Low-Enriched Uranium (HALEU) program and we expect to begin
demonstrating production of HALEU by early next year. Our sales
team also secured over $100 million
in new commitments from November through the end of January."
Financial Results
For the full year, the Company reported net income of
$54.4 million in 2020 compared to a
net loss of $16.5 million in 2019.
Net income per share for 2020 was $0.59 (basic) and $0.57 (diluted). Adjusted net income per
share for 2020 was $4.85 (basic) and
$4.71 (diluted). Revenue for
2020 was $247.2 million, an increase
of $37.5 million or 18 percent from
the prior year.
Revenue from the LEU segment increased $21.1 million in 2020 compared to 2019. SWU
revenue increased $27.8 million in
2020 compared to 2019. SWU revenue in 2020 includes
$32.6 million collected from a
customer in settlement of a supply contract that was subject to the
customer's bankruptcy proceeding. Excluding these proceeds, the
average SWU price billed to customers increased 13%, reflecting the
particular contracts under which SWU were sold during the periods.
The volume of SWU sales decreased 15%. Uranium revenue decreased
$6.7 million in 2020 compared to
2019. The volume of uranium sales decreased 23% and the average
uranium price billed to customers increased 10%.
Cost of sales for the LEU segment decreased $25.9 million in 2020 compared to 2019,
reflecting the decreases in SWU and uranium sales volumes and a
decrease in the average cost of sales per SWU. In 2020, the average
cost of sales per SWU decreased 12%, primarily due to lower pricing
under the TENEX Supply Contract. Cost of sales includes legacy
costs related to former employees of the Portsmouth Gaseous
Diffusion Plant (GDP) and Paducah GDP of $3.7 million in 2020 and $4.1 million in 2019. Valuation adjustments for
our uranium inventory to reflect declines in uranium market price
indicators totaled $2.3 million in
2019 and there were no valuation adjustments in 2020. The average
uranium unit cost of sales increased 15% in 2020 compared to
2019.
Revenue from the technical solutions segment increased
$16.4 million in 2020 compared to
2019. The increase was primarily the result of work performed under
the HALEU Contract. Revenue in 2020 included work performed under
the UT-Battelle contract and revenue in 2019 included work
performed under an agreement with DOE to decontaminate and
decommission its K-1600 facility in Tennessee. The K-1600 contract was completed
in October 2019, on time and
budget.
Cost of sales for the technical solutions segment decreased
$1.7 million in 2020 compared to
2019, reflecting the mix of technical solutions work performed in
each of the periods. In 2019, our share of remaining projected
program costs under the HALEU Contract as of December 31, 2019, was recognized in Cost of
Sales as an accrued loss of $18.3
million. The accrued loss on the contract is adjusted over
the remaining contract term based on actual results and remaining
program cost projections.
Centrus recognized a gross profit of $97.6 million in 2020, an improvement of
$65.1 million compared to the gross
profit of $32.5 million in 2019.
Selling, General and Administrative
Selling, general and administrative expenses increased
$2.3 million in 2020 compared to
2019. Incentive compensation expense increased $2.9 million, primarily related to a
remeasurement of obligations under long-term incentive plans which
are based on our stock price, which has increased over 500% in the
past two years. Consulting costs related to capital financing
evaluation, claim recoveries and international trade increased
$1.5 million in 2020 compared to 2019
and other consulting costs decreased $1.2
million. Salary and benefit costs decreased $0.6 million, travel expenses decreased by
$0.5 million, and other SG&A
expenses increased by a net $0.2
million.
Nonoperating Components of Net Periodic Benefit Expense
(Income)
Nonoperating components of net periodic benefit expense (income)
netted to income of $1.6 million in
2020, compared to income of $4.3
million in 2019. Nonoperating components of net periodic
benefit expense (income) consist primarily of the return on plan
assets, offset by interest cost as the discounted present value of
benefit obligations nears payment. Results also reflect claims
experience, changes in mortality and healthcare claim assumptions
and changes in market interest rates.
In both 2020 and 2019, the net gains reflect favorable
investment returns relative to the expected return assumption,
changes in mortality and healthcare claim assumptions, and
favorable claims experience. Gains were partially offset by
declines in market interest rates, which increases the present
value calculation for outstanding pension liabilities.
The Company transferred approximately $30.4 million of pension plan assets and
approximately $30.4 million of
related benefit obligations to an insurance company through the
purchase of a group annuity contract in the fourth quarter of 2020.
This is part of the Company's efforts to reduce the size and
volatility of its pension obligations and administrative costs
moving forward.
Conference Call
Centrus Energy's investor conference call to discuss the fourth
quarter and full year 2020 results is scheduled for March 19, 2021, at 8:30
a.m. EDT. A live webcast of the conference call can be
accessed through the Investor Relations section of the Company's
website at www.centrusenergy.com, and a recording of the call will
be available on the site through April 3,
2021.
About Centrus Energy Corp.
Centrus 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 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 1,750 reactor years of fuel, which
is equivalent to 7 billion tons of coal.
With world-class technical capabilities, Centrus offers turnkey
engineering and advanced manufacturing solutions to its customers.
The Company is also advancing the next generation of centrifuge
technologies so that America can restore its domestic uranium
enrichment capability in the future. Find out more at
www.centrusenergy.com.
Forward-Looking Statements
This press release 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 Centrus Energy Corp.,
particular risks and uncertainties that could cause our actual
future results to differ materially from those expressed in our
forward-looking statements include but are not limited to the
following which are, and will be, exacerbated by the novel
coronavirus (COVID-19) pandemic and any worsening of the global
business and economic environment as a result: 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, including
possible bankruptcies, insolvencies or any other inability to pay
for our products or services or delays in making timely payment;
risks related to pandemics and other health crises, such as the
global COVID-19 pandemic; the impact and potential extended
duration of the current supply/demand imbalance in the market for
low-enriched uranium ("LEU"); risks related to our ability to sell
the LEU we procure pursuant to our purchase obligations under our
supply agreements; risks related to the imposition of sanctions,
restrictions or other requirements, including those imposed under
the 1992 Russian Suspension Agreement ("RSA"), as amended,
international trade legislation and other international trade
restrictions; risks related to existing or new trade barriers and
contract terms that limit our ability to deliver LEU to customers;
pricing trends and demand in the uranium and enrichment markets and
their impact on our profitability; movement and timing of customer
orders; our dependence on others for deliveries of LEU including
deliveries from the Russian government-owned entity TENEX,
Joint-Stock Company ("TENEX"), under a commercial supply agreement
with TENEX and deliveries under a long-term supply agreement with
Orano Cycle ("Orano"); risks associated with our reliance on
third-party suppliers to provide essential products and services to
us; face significant competition from major producers who may be
less cost sensitive or are wholly or partially government owned;
our ability to compete in foreign markets may be limited for
various reasons; 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
in future contracting due to market conditions and our lack of
current production capability; risks related to whether or when
government funding or demand for high assay low enriched uranium
("HALEU") for government or commercial uses will materialize; risks
and uncertainties regarding funding for continuation and deployment
of the American Centrifuge technology and our ability to perform
and absorb costs under our agreement with DOE to demonstrate the
capability to produce HALEU and our ability to obtain and/or
perform under other agreements; uncertainty regarding our ability
to commercially deploy competitive enrichment technology; the
potential for further demobilization or termination of our American
Centrifuge work; risks that we will not be able to timely complete
the work that we are obligated to perform; risks related to our
ability to perform fixed-price and cost-share contracts, including
the risk that costs could 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 relating to our 8.25% notes
(the "8.25% Notes") maturing in February
2027 and our Series B Senior Preferred Stock; the risks of
revenue and operating results fluctuating significantly from
quarter to quarter, and in some cases, year to year; 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 the sales order book and customer
relationships; risks related to the limited trading markets in our
securities; risks related to decisions made by our Class B
stockholders and our Series B Senior Preferred stockholders
regarding their investment in the Company based upon factors that
are unrelated to the Company's performance; risk that a small
number of Class A stockholders may exert significant influence over
the direction of the Company and whose interests may not be aligned
with other Class A stockholders; risks related to the use of our
net operating loss ("NOLs") carryforwards and net unrealized
built-in losses ("NUBILs") to offset future taxable income and the
use of the Rights Agreement (as defined herein) to prevent an
"ownership change" as defined in Section 382 of the Internal
Revenue Code of 1986, as amended (the "Code") and our ability to
generate taxable income to utilize all or a portion of the NOLs and
NUBILs prior to the expiration thereof; failures or security
breaches of our information technology systems; our ability to
attract and retain key personnel; the potential for DOE to seek to
terminate or exercise its remedies under its agreements with the
Company; risks related to actions, including government reviews,
that may be taken by the United
States government, the Russian government or other
governments that could affect our ability to perform under our
contract obligations or the ability of our sources of supply to
perform under their contract obligations to us; risks related to
our ability to perform and receive timely payment under agreements
with DOE or other government agencies, including risks and
uncertainties related to the ongoing funding by the government and
potential audits; any changes or termination of agreements with US
government; the competitive environment for our products and
services; changes in the nuclear energy industry; the competitive
bidding process associated with obtaining contracts, 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 products or services obsolete or noncompetitive;
potential strategic transactions, which could be difficult to
implement, disrupt our business or change our business profile
significantly; the outcome of legal proceedings and other
contingencies (including lawsuits and government investigations or
audits); the impact of government regulation and policies including
by the U.S. Department of Energy ("DOE") and the U.S. Nuclear
Regulatory Commission; risks of accidents during the transportation
of hazardous or radioactive material that may pose a health risk to
humans or animals; and other risks and uncertainties discussed in
this and our other filings with the Securities and Exchange
Commission.
Contacts:
Investors: Dan Leistikow
(301) 564-3399
Media: Lindsey Geisler (301)
564-3392
CENTRUS ENERGY CORP.
ADJUSTED NET INCOME PER
SHARE RECONCILIATION TABLE
The Company measures Net Income per Share both on a GAAP
basis and adjusted to exclude deemed dividends allocable to retired
preferred stock shares ("Adjusted Net Income per
Share"). We believe Adjusted Net Income per Share,
a non-GAAP financial measure, provides investors with additional
understanding of the Company's financial performance and
period-to-period comparability.
On November 17, 2020, the Company
completed the purchase of 62,854 shares of its outstanding Series B
Preferred Stock at a price per share of $954.59, less any applicable withholding taxes.
The purchase price per share represented a 25% discount from the
aggregate liquidation preference, including accrued but unpaid
dividends, of $1,272.78 per share as
of September 30, 2020. Since
origination, the carrying value on the Balance Sheet was
$43.80 per share based on values
assigned in the originating securities exchange. The liquidation
amount at origination was $1,000.00
per share.
The aggregate purchase price of approximately $60 million, less accrued but unpaid dividends
attributable to the purchased and retired Series B preferred
shares, is considered for purposes of Net Income per Share
to be a deemed dividend to the extent it exceeds the carrying value
on the Balance Sheet, or $41.9
million.
Below we present Net Income Per Share and Adjusted Net
Income per Share. The non-GAAP financial measure is used in
addition to and in conjunction with results presented in accordance
with our GAAP results. The non-GAAP financial measure should be
viewed in addition to, and not as a substitute for, or superior to,
the financial measure calculated in accordance with GAAP. The
non-GAAP financial measure used by the Company may be calculated
differently from, and therefore may not be comparable to, non-GAAP
financial measures used by other companies.
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Numerator (in
millions):
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
16.4
|
|
|
$
|
(2.8)
|
|
|
$
|
54.4
|
|
|
$
|
(16.5)
|
|
Preferred stock
dividends - undeclared and cumulative
|
0.8
|
|
|
1.9
|
|
|
6.7
|
|
|
7.8
|
|
Distributed earnings
allocable to retired preferred shares
|
41.9
|
|
|
—
|
|
|
41.9
|
|
|
—
|
|
Net income (loss)
allocable to common stockholders
|
$
|
(26.3)
|
|
|
$
|
(4.7)
|
|
|
$
|
5.8
|
|
|
$
|
(24.3)
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss), including distributed earnings
allocable to retired preferred shares (Non-GAAP)
|
$
|
15.6
|
|
|
$
|
(4.7)
|
|
|
$
|
47.7
|
|
|
$
|
(24.3)
|
|
|
|
|
|
|
|
|
|
Denominator (in
thousands):
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic
|
10,322
|
|
|
9,583
|
|
|
9,825
|
|
|
9,566
|
|
Average common shares
outstanding - diluted (a)
|
10,322
|
|
|
9,583
|
|
|
10,123
|
|
|
9,566
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss) per Share (in dollars):
|
|
|
|
|
|
|
|
Basic
|
$
|
(2.55)
|
|
|
$
|
(0.49)
|
|
|
$
|
0.59
|
|
|
$
|
(2.54)
|
|
Diluted
|
$
|
(2.55)
|
|
|
$
|
(0.49)
|
|
|
$
|
0.57
|
|
|
$
|
(2.54)
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
(Loss) per Share (Non-GAAP) (in dollars):
|
|
|
|
|
|
|
|
Basic
|
$
|
1.51
|
|
|
$
|
(0.49)
|
|
|
$
|
4.85
|
|
|
$
|
(2.54)
|
|
Diluted
|
$
|
1.46
|
|
|
$
|
(0.49)
|
|
|
$
|
4.71
|
|
|
$
|
(2.54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For purposes of
Adjusted Net Income (Loss) per Share for the three months ended
December 31, 2020, average common shares outstanding - diluted is
10,659,000 shares. No dilutive effect is recognized in a
period in which a net loss has occurred.
|
CENTRUS ENERGY
CORP
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
(Unaudited; in millions, except
share and per share data)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue:
|
|
|
|
|
|
|
|
Separative work
units
|
$
|
62.1
|
|
|
$
|
36.3
|
|
|
$
|
151.5
|
|
|
$
|
123.7
|
|
Uranium
|
15.6
|
|
|
7.6
|
|
|
39.0
|
|
|
45.7
|
|
Technical
solutions
|
15.2
|
|
|
11.8
|
|
|
56.7
|
|
|
40.3
|
|
Total
revenue
|
92.9
|
|
|
55.7
|
|
|
247.2
|
|
|
209.7
|
|
Cost of
Sales:
|
|
|
|
|
|
|
|
Separative work units
and uranium
|
40.9
|
|
|
18.2
|
|
|
92.7
|
|
|
118.6
|
|
Technical
solutions
|
17.0
|
|
|
30.7
|
|
|
56.9
|
|
|
58.6
|
|
Total cost of
sales
|
57.9
|
|
|
48.9
|
|
|
149.6
|
|
|
177.2
|
|
Gross
profit
|
35.0
|
|
|
6.8
|
|
|
97.6
|
|
|
32.5
|
|
Advanced technology
costs
|
1.0
|
|
|
1.6
|
|
|
2.8
|
|
|
14.6
|
|
Selling, general and
administrative
|
10.4
|
|
|
9.2
|
|
|
36.0
|
|
|
33.7
|
|
Amortization of
intangible assets
|
2.5
|
|
|
2.4
|
|
|
6.8
|
|
|
6.5
|
|
Special charges
(credits) for workforce reductions
|
0.1
|
|
|
0.3
|
|
|
0.6
|
|
|
(1.9)
|
|
Other (income)
expense, net
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
(0.7)
|
|
Operating income
(loss)
|
20.6
|
|
|
(6.7)
|
|
|
51.0
|
|
|
(19.7)
|
|
Nonoperating
components of net periodic benefit expense (income)
|
5.0
|
|
|
(4.1)
|
|
|
(1.6)
|
|
|
(4.3)
|
|
Interest
expense
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
3.0
|
|
Investment
income
|
—
|
|
|
(0.3)
|
|
|
(0.5)
|
|
|
(2.2)
|
|
Income (loss) before
income taxes
|
15.6
|
|
|
(2.4)
|
|
|
53.0
|
|
|
(16.2)
|
|
Income tax expense
(benefit)
|
(0.8)
|
|
|
0.4
|
|
|
(1.4)
|
|
|
0.3
|
|
Net income (loss) and
comprehensive income (loss)
|
16.4
|
|
|
(2.8)
|
|
|
54.4
|
|
|
(16.5)
|
|
Preferred stock
dividends - undeclared and cumulative
|
0.8
|
|
|
1.9
|
|
|
6.7
|
|
|
7.8
|
|
Distributed earnings
allocable to retired shares
|
41.9
|
|
|
—
|
|
|
41.9
|
|
|
—
|
|
Net income (loss)
allocable to common stockholders
|
$
|
(26.3)
|
|
|
$
|
(4.7)
|
|
|
$
|
5.8
|
|
|
$
|
(24.3)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(2.55)
|
|
|
$
|
(0.49)
|
|
|
$
|
0.59
|
|
|
$
|
(2.54)
|
|
Diluted
|
$
|
(2.55)
|
|
|
$
|
(0.49)
|
|
|
$
|
0.57
|
|
|
$
|
(2.54)
|
|
Average number of
common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
10,322
|
|
|
9,583
|
|
|
9,825
|
|
|
9,566
|
|
Diluted
|
10,322
|
|
|
9,583
|
|
|
10,123
|
|
|
9,566
|
|
CENTRUS ENERGY
CORP
|
CONSOLIDATED
BALANCE SHEETS
|
(in millions,
except share and per share data)
|
|
|
December
31,
|
|
2020
|
|
2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
152.0
|
|
|
$
|
130.7
|
|
Accounts
receivable
|
29.6
|
|
|
21.1
|
|
Inventories
|
64.8
|
|
|
64.5
|
|
Deferred costs
associated with deferred revenue
|
151.9
|
|
|
144.1
|
|
Other current
assets
|
7.8
|
|
|
9.2
|
|
Total current
assets
|
406.1
|
|
|
369.6
|
|
Property, plant and
equipment, net
|
4.9
|
|
|
3.7
|
|
Deposits for
financial assurance
|
5.7
|
|
|
5.7
|
|
Intangible assets,
net
|
62.8
|
|
|
69.5
|
|
Other long-term
assets
|
6.8
|
|
|
7.4
|
|
Total
assets
|
$
|
486.3
|
|
|
$
|
455.9
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
50.6
|
|
|
$
|
50.7
|
|
Payables under SWU
purchase agreements
|
21.3
|
|
|
8.1
|
|
Inventories owed to
customers and suppliers
|
4.9
|
|
|
5.6
|
|
Deferred revenue and
advances from customers
|
283.2
|
|
|
266.3
|
|
Current
debt
|
6.1
|
|
|
6.1
|
|
Total current
liabilities
|
366.1
|
|
|
336.8
|
|
Long-term
debt
|
108.0
|
|
|
114.1
|
|
Postretirement health
and life benefit obligations
|
130.8
|
|
|
138.6
|
|
Pension benefit
liabilities
|
124.4
|
|
|
141.8
|
|
Advances from
customers
|
45.2
|
|
|
29.4
|
|
Other long-term
liabilities
|
32.4
|
|
|
32.1
|
|
Total
liabilities
|
806.9
|
|
|
792.8
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
deficit:
|
|
|
|
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, 7.5% cumulative, 41,720 and 104,574 shares issued
and outstanding
as of December 31, 2020 and December 31, 2019, respectively;
aggregate liquidation preference of
$53.9 as of December 31, 2020 and $127.2 as of December 31,
2019
|
0.1
|
|
|
4.6
|
|
Class A Common Stock,
par value $0.10 per share, 70,000,000 shares authorized, 11,390,189
and
8,347,427 shares issued and outstanding as of December 31, 2020 and
December 31, 2019,
respectively
|
1.1
|
|
|
0.8
|
|
Class B Common Stock,
par value $0.10 per share, 30,000,000 shares authorized, 719,200
and
1,117,462 shares issued and outstanding as of December 31, 2020 and
December 31, 2019,
respectively
|
0.1
|
|
|
0.1
|
|
Excess of capital
over par value
|
85.0
|
|
|
61.5
|
|
Accumulated
deficit
|
(407.7)
|
|
|
(405.0)
|
|
Accumulated other
comprehensive income, net of tax
|
0.8
|
|
|
1.1
|
|
Total stockholders'
deficit
|
(320.6)
|
|
|
(336.9)
|
|
Total liabilities and
stockholders' deficit
|
$
|
486.3
|
|
|
$
|
455.9
|
|
CENTRUS ENERGY
CORP
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
millions)
|
|
|
Year
Ended December 31,
|
|
2020
|
|
2019
|
OPERATING
|
|
|
|
Net income
(loss)
|
$
|
54.4
|
|
|
$
|
(16.5)
|
|
Adjustments to
reconcile net income (loss) to cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
7.3
|
|
|
7.0
|
|
Accrued loss on
long-term contract
|
(10.6)
|
|
|
18.3
|
|
Immediate recognition
of retirement benefit plans (gains) losses, net
|
7.2
|
|
|
(4.0)
|
|
PIK interest on
paid-in-kind toggle notes
|
—
|
|
|
1.1
|
|
Gain on sales of
assets
|
—
|
|
|
(0.7)
|
|
Inventory valuation
adjustments
|
—
|
|
|
2.3
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(8.6)
|
|
|
29.3
|
|
Inventories,
net
|
25.8
|
|
|
0.1
|
|
Payables under SWU
purchase agreements
|
13.2
|
|
|
(37.9)
|
|
Deferred revenue and
advances from customers, net of deferred costs
|
9.7
|
|
|
44.0
|
|
Accounts payable and
other liabilities
|
1.5
|
|
|
(12.3)
|
|
Pension and
postretirement liabilities
|
(32.7)
|
|
|
(19.5)
|
|
Other, net
|
(0.1)
|
|
|
0.1
|
|
Cash provided by
operating activities
|
67.1
|
|
|
11.3
|
|
|
|
|
|
INVESTING
|
|
|
|
Capital
expenditures
|
(1.4)
|
|
|
(0.1)
|
|
Proceeds from sales
of assets
|
—
|
|
|
0.7
|
|
Cash provided by (used
in) investing activities
|
(1.4)
|
|
|
0.6
|
|
|
|
|
|
FINANCING
|
|
|
|
Proceeds from the
sale of common stock, net
|
23.1
|
|
|
—
|
|
Redemption of
preferred stock, net
|
(61.6)
|
|
|
—
|
|
Payment of interest
classified as debt
|
(6.1)
|
|
|
(6.1)
|
|
Exercise of stock
options
|
0.3
|
|
|
—
|
|
Principal payments on
debt
|
—
|
|
|
(27.5)
|
|
Payments for deferred
issuance costs
|
(0.1)
|
|
|
(1.4)
|
|
Cash used in financing
activities
|
(44.4)
|
|
|
(35.0)
|
|
|
|
|
|
Increase (decrease)
in cash, cash equivalents and restricted cash
|
21.3
|
|
|
(23.1)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
136.6
|
|
|
159.7
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
157.9
|
|
|
$
|
136.6
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
Interest paid in
cash
|
$
|
—
|
|
|
$
|
1.5
|
|
Non-cash
activities:
|
|
|
|
Property, plant and
equipment included in accounts payable and accrued
liabilities
|
0.3
|
|
|
—
|
|
Deferred equity
issuance costs included in accounts payable and accrued
liabilities
|
0.2
|
|
|
0.8
|
|
Disposal of right to
use lease assets for early termination
|
0.2
|
|
|
0.4
|
|
Conversion of interest
payable-in-kind to debt
|
—
|
|
|
0.7
|
|
Right to use lease
assets acquired under operating leases
|
—
|
|
|
5.2
|
|
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SOURCE Centrus Energy Corp.