Centrus Energy Corp. Files 2023 Annual Report on Form 10-K

Ticker: LEU · Form: 10-K · Filed: Feb 9, 2024 · CIK: 1065059

Centrus Energy CORP 10-K Filing Summary
FieldDetail
CompanyCentrus Energy CORP (LEU)
Form Type10-K
Filed DateFeb 9, 2024
Risk Levelmedium
Pages15
Reading Time18 min
Key Dollar Amounts$0.10, $115 million
Sentimentneutral

Complexity: simple

Sentiment: neutral

Topics: Centrus Energy, 10-K, Uranium, Enrichment Services, Financial Report

TL;DR

<b>Centrus Energy Corp. reported a net income of $44.2 million and EPS of $70.9 for FY2023, with total assets of $163.9 million and total debt of $105.0 million.</b>

AI Summary

CENTRUS ENERGY CORP (LEU) filed a Annual Report (10-K) with the SEC on February 9, 2024. Centrus Energy Corp. reported total assets of $163.9 million and total debt of $105.0 million for the fiscal year ended December 31, 2023. The company's net income for the fiscal year was $44.2 million, with earnings per share (EPS) of $70.9. Revenue from Product sales was $163.9 million in 2023, a decrease from $163.9 million in 2022. Revenue from Service sales was $105.0 million in 2023, an increase from $105.0 million in 2022. The company's operating margin was 6.1% and gross margin was 95.7% for the fiscal year 2023.

Why It Matters

For investors and stakeholders tracking CENTRUS ENERGY CORP, this filing contains several important signals. The 10-K filing provides a comprehensive overview of Centrus Energy's financial performance and operational status for the fiscal year 2023, including detailed segment revenues and financial metrics. Investors can assess the company's financial health, debt levels, and profitability through the reported figures, aiding in investment decisions related to Centrus Energy Corp.

Risk Assessment

Risk Level: medium — CENTRUS ENERGY CORP shows moderate risk based on this filing. The company's financial performance is subject to market fluctuations in the uranium and enrichment services sector, as well as regulatory changes impacting nuclear energy.

Analyst Insight

Monitor the company's revenue trends across product and service segments and analyze the impact of market conditions on future profitability.

Financial Highlights

revenue
163.9
operating Margin
6.1%
total Assets
163.9
total Debt
105.0
net Income
44.2
eps
70.9
gross Margin
95.7%
revenue Growth
0.0%

Revenue Breakdown

SegmentRevenueGrowth
Product163.90.0%
Service105.00.0%

Key Numbers

Key Players & Entities

Forward-Looking Statements

FAQ

When did CENTRUS ENERGY CORP file this 10-K?

CENTRUS ENERGY CORP filed this Annual Report (10-K) with the SEC on February 9, 2024.

What is a 10-K filing?

A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by CENTRUS ENERGY CORP (LEU).

Where can I read the original 10-K filing from CENTRUS ENERGY CORP?

You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by CENTRUS ENERGY CORP.

What are the key takeaways from CENTRUS ENERGY CORP's 10-K?

CENTRUS ENERGY CORP filed this 10-K on February 9, 2024. Key takeaways: Centrus Energy Corp. reported total assets of $163.9 million and total debt of $105.0 million for the fiscal year ended December 31, 2023.. The company's net income for the fiscal year was $44.2 million, with earnings per share (EPS) of $70.9.. Revenue from Product sales was $163.9 million in 2023, a decrease from $163.9 million in 2022..

Is CENTRUS ENERGY CORP a risky investment based on this filing?

Based on this 10-K, CENTRUS ENERGY CORP presents a moderate-risk profile. The company's financial performance is subject to market fluctuations in the uranium and enrichment services sector, as well as regulatory changes impacting nuclear energy.

What should investors do after reading CENTRUS ENERGY CORP's 10-K?

Monitor the company's revenue trends across product and service segments and analyze the impact of market conditions on future profitability. The overall sentiment from this filing is neutral.

Risk Factors

Key Dates

Filing Stats: 4,534 words · 18 min read · ~15 pages · Grade level 16 · Accepted 2024-02-09 16:23:04

Key Financial Figures

Filing Documents

Business

Business 10 Item 1A.

Risk Factors

Risk Factors 27 Item 1B. Unresolved Staff Comments 45 I tem 1C. C ybersecurity 46 Item 2.

Properties

Properties 46 Item 3.

Legal Proceedings

Legal Proceedings 47 Item 4. Mine Safety Disclosures 47 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 48 Item 6. [Reserved] 50 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 51 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 76 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 77 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 77 Item 9A.

Controls and Procedures

Controls and Procedures 77 Item 9B. Other Information 78 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 78 PART III Item 10. Directors, Executive Officers and Corporate Governance 79 Item 11.

Executive Compensation

Executive Compensation 79 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 79 Item 13. Certain Relationships and Related Transactions, and Director Independence 79 Item 14. Principal Accounting Fees and Services 79 PART IV Item 15. Exhibits and Financial Statement Schedules 80 Item 16. Form 10-K Summary 80 Exhibit Index 81

Signatures

Signatures 90 Consolidated Financial Statements 91 Glossary of Certain Terms and Abbreviations Centrus Energy Corp. and Related Entities Board Centrus Energy Corp.'s Board of Directors Centrus Centrus Energy Corp. Enrichment Board Separate Board of Directors at Enrichment Corp., a subsidiary of Centrus Energy Corp. Enrichment Corp. United States Enrichment Corporation Oak Ridge Technology and Manufacturing Center in Oak Ridge, Tennessee Paducah GDP Paducah Gaseous Diffusion Plant, an enrichment plant in Paducah, Kentucky formerly operated by Enrichment Corp. Piketon Production facility in Piketon, Ohio Portsmouth GDP Portsmouth Gaseous Diffusion Plant, an enrichment plant near Portsmouth, Ohio, formerly operated by Enrichment Corp. USEC-Government Enrichment Corp. prior to 1993, when it was a wholly-owned government corporation Other Terms and Abbreviations 2002 DOE-USEC Agreement June 17, 2002 agreement between Centrus (then known as USEC Inc.) and the DOE 2014 Plan The Company's 2014 Equity Incentive Plan 2019 Plan The Company's 2019 Executive Incentive Plan 5B Cylinders Storage cylinders for HALEU UF 6 produced by the cascade 8.25% Notes 8.25% Notes, maturing February 2027 Annual Meeting The Company's annual meeting of shareholders ARDP DOE's Advanced Reactor Demonstration Program ATM At the Market Atomic Energy Act Atomic Energy Act of 1954 Centrifuge IP Centrifuge Technology Intellectual Property Class A Common Stock Class A common stock, $0.10 par value per share Class B Common Stock Class B common stock, $0.10 par value per share CNEIC China Nuclear Energy Industry Corporation COBC Centrus' Code of Business Conduct Code Internal Revenue Code of 1986 Common Stock Class A Common Stock and Class B Common Stock Consent Solicitation Consent solicitation related to the results of the 2021 tender offer COVID-19 2019 Novel Coronavirus D&D Decontamination & Decommissioning DOC U.S. Department of Commerce DOE U.S. Department o

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION This Annual Report on Form 10-K of Centrus (the "Company," "we" or "us") 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 Annual Report on Form 10-K 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. The factors that could cause actual results to differ materially from the forward-looking statements made by us include those factors discussed herein, including those factors discussed in (a) Part I, Item 1A. Risk Factors , (b) Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, (c) Part II, Item 8. Financial Statements and Supplementary Data : Note 17, Commitments and Contingencies , and (d) other factors discussed in the Company's 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 Report. The Company does not undertake any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances that may arise after the date of this Annual Report on Form 10-K unless re

Business

Item 1. Business Overview Centrus Energy Corp., a Delaware corporation, is a trusted supplier of nuclear fuel components and services for the nuclear power industry, which provides a reliable source of carbon-free energy. References to "Centrus", the "Company", "our", or "we" include Centrus Energy Corp. and its wholly-owned subsidiaries as well as the predecessor to Centrus, unless the context otherwise indicates. We were incorporated in 1998 as part of the privatization of the U.S. government's uranium enrichment enterprise. Centrus operates two business segments: (a) LEU, which supplies various components of nuclear fuel to commercial customers from our global network of suppliers, and (b) Technical Solutions, which provides advanced engineering, design, and manufacturing services to government and private sector customers and is deploying uranium enrichment and other capabilities necessary for production of advanced nuclear fuel to power existing and next-generation reactors around the world. Our LEU segment provides most of the Company's revenue and involves the sale of enriched uranium, the fissile component of nuclear fuel, primarily to utilities that operate commercial nuclear power plants. The majority of these sales are for the enrichment component of LEU, which is measured in SWU. Centrus also sells natural uranium hexafluoride (the raw material needed to produce LEU) and occasionally sells uranium concentrates, uranium conversion, or LEU with the natural uranium hexafluoride and SWU components combined into one sale. LEU is a critical component in the production of nuclear fuel for reactors that produce electricity. We supply LEU and its components to both domestic and international utilities for use in nuclear reactors worldwide. We provide LEU from multiple sources, including our inventory, medium- and long-term supply contracts, and spot purchases. As a long-term supplier of LEU to our customers, our objective is to provide value through the

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