[Centrus Energy] Fourth Quarter and Full Year 2024 Results

Centrus Reports Fourth Quarter and Full Year 2024 Results | Centrus Energy Corp.

(I had deleted the post by mistake, and reposted it.)

On Feb 6, 2025, Centrus reported fourth quarter and full year 2024 results.  As I had anticipated in my previous post on Jan 1, Centrus reported record revenue of $151.6M for Q4 and $442M for full year 2024.   Net incomes of $53.7M for Q4 and $73.2M for full year 2024 were lower than expected, mainly due to the release of costs related to previously deferred sales which had incurred $64M increase in the cost of sales.  

For more details, please refer to the company's earnings release as hyperlinked above. 

I will get back with new post about the forecast of Centrus's earnings for Q1 2025.

CENTRUS ENERGY CORP. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited; in millions, except share and per share data)
	Three Months Ended  December 31,						Year Ended  December 31,
	2024		2023		2022		2024		2023		2022
Revenue:
Separative work units	$         48.7		$         60.8		$         90.2		$       246.8		$       208.2		$       196.2
Uranium	73.2		21.3		22.0		103.1		60.8		39.4
Technical solutions	29.7		21.5		14.0		92.1		51.2		58.2
Total revenue	151.6		103.6		126.2		442.0		320.2		293.8
Cost of Sales:
Separative work units and uranium	66.7		37.8		45.2		256.0		163.9		105.0
Technical solutions	23.1		16.0		32.6		74.5		44.2		70.9
Total cost of sales	89.8		53.8		77.8		330.5		208.1		175.9
Gross profit	61.8		49.8		48.4		111.5		112.1		117.9
Advanced technology costs	3.3		3.4		4.8		17.2		14.2		14.8
Selling, general and administrative	10.5		8.2		9.5		36.2		35.6		33.9
Amortization of intangible assets	2.6		2.1		2.8		9.8		6.3		9.0
Special charges for workforce  reductions	0.3		3.5		—		0.3		3.6		0.5
Operating income	45.1		32.6		31.3		48.0		52.4		59.7
Nonoperating components of net  periodic benefit expense (income)	0.7		(23.3)		4.5		(14.7)		(23.2)		(6.6)
Interest expense	1.9		0.4		0.4		2.7		1.3		0.5
Investment income	(5.1)		(2.3)		(1.2)		(12.9)		(8.7)		(2.0)
Other income, net	(0.2)		(0.5)		—		(0.1)		(1.5)		—
Income before income taxes	47.8		58.3		27.6		73.0		84.5		67.8
Income tax expense (benefit)	(5.9)		2.0		6.3		(0.2)		0.1		15.6
Net income and comprehensive income	53.7		56.3		21.3		73.2		84.4		52.2
Distributed earnings allocable to  warrant modification	—		—		1.5		—		—		1.5
Net income allocable to common  stockholders	$         53.7		$         56.3		$         19.8		$         73.2		$         84.4		$         50.7
Net income per share:
Basic	$         3.21		$         3.64		$         1.35		$         4.49		$         5.55		$         3.47
Diluted	$         3.20		$         3.58		$         1.32		$         4.47		$         5.44		$         3.38
Average number of common shares  outstanding (in thousands):
Basic	16,716		15,461		14,648		16,309		15,212		14,601
Diluted	16,778		15,732		15,029		16,373		15,501		14,988

 

CENTRUS ENERGY CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; in millions)
	Year Ended December 31,
	2024		2023		2022
OPERATING
Net income	$        73.2		$        84.4		$        52.2
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	10.8		7.1		9.6
Accrued loss on long-term contract	—		(20.0)		19.5
Deferred tax assets	(0.7)		(1.6)		14.7
Retirement benefit plans (gains) losses, net	(17.3)		(24.6)		7.8
Revaluation of inventory borrowing	2.1		7.4		8.0
Equity-related compensation	1.5		2.3		1.9
Other reconciling adjustments, net	0.1		(1.6)		—
Changes in operating assets and liabilities:
Accounts receivable	(30.5)		(11.3)		(9.0)
Inventories	101.0		(83.8)		(88.5)
Inventories owed to customers and suppliers	(68.1)		23.5		52.4
Other current assets	2.4		14.9		(15.6)
Payables under inventory purchase agreements	(12.4)		(1.7)		5.7
Deferred revenue and advances from customers, net of deferred costs	(15.1)		12.1		(22.5)
Accounts payable and other liabilities	(1.4)		8.5		2.6
Pension and postretirement liabilities	(8.3)		(5.7)		(18.1)
Other changes, net	(0.3)		(0.8)		(0.1)
Cash provided by operating activities	37.0		9.1		20.6
INVESTING
Capital expenditures	(4.1)		(1.6)		(0.7)
Cash used in investing activities	(4.1)		(1.6)		(0.7)
FINANCING
Proceeds from the issuance of common stock, net	54.7		23.2		3.6
Proceeds from the issuance of 2.25% Convertible Senior Notes, net	388.7		—		—
Payment of interest classified as debt	(6.1)		(6.1)		(6.1)
Exercise of stock options	0.4		—		0.4
Common stock withheld for tax obligations under stock-based compensation plan	(0.6)		(3.0)		(1.9)
Other	—		(0.2)		(0.3)
Cash provided by (used in) financing activities	437.1		13.9		(4.3)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0.2		—		—
Increase in cash, cash equivalents and restricted cash	470.2		21.4		15.6
Cash, cash equivalents and restricted cash, beginning of period	233.8		212.4		196.8
Cash, cash equivalents and restricted cash, end of period	$      704.0		$      233.8		$      212.4