Centrus Energy (NYSE: LEU) reported Q1 EPS of $0.95, versus ($2.40) reported last year. Revenue for the quarter came in at $45 million, versus $38.7 million reported last year.

Financial Results

• Centrus generated total revenue of $45.0 million for the first quarter of 2020, an increase of $6.3 million, or 16%, from the prior year period.
• Revenue from the LEU segment declined $4.4 million (or 13%) in the three months ended March 31, 2020, compared to the corresponding period in 2019, primarily because there were no uranium sales in the period. Revenue from the sales of SWU increased $18.3 million (or 148%), reflecting an increase in the average SWU selling price partially offset by a 7% decline in sales volume. The average price billed to customers for sales of SWU increased 166%, reflecting the particular contracts under which SWU were sold during the periods. Cost of sales for the LEU segment declined $25.0 million (or 65%) in the three months ended March 31, 2020, compared to the corresponding period in 2019, reflecting declines in SWU and uranium sales volumes and a decline in the average cost of sales per SWU. The average cost of sales per SWU declined approximately 26% in the three months ended March 31, 2020, compared to the corresponding period in 2019, primarily due to lower pricing in supply contracts. There were no uranium sales in the three months ended March 31, 2020.
• Revenue from the technical solutions segment increased $10.7 million (or 297%) in the three months ended March 31, 2020, compared to the corresponding period in 2019. The increase was primarily the result of work performed under the high-assay, low-enriched uranium (HALEU) contract. Revenue in the current period included work performed under the UT-Battelle contract and revenue in the prior period included work performed under the K-1600 decontamination and decommissioning (D&D) contract that was completed in 2019. Cost of sales for the technical solutions segment increased $6.2 million (or 105%) in the three months ended March 31, 2020, compared to the corresponding period in 2019, reflecting the mix of technical solutions work performed in each of the periods including work performed under the HALEU contract in the current period.
• Centrus realized a gross profit of $19.6 million in the three months ended March 31, 2020, an improvement of $25.1 million compared to the gross loss of $5.5 million in the corresponding period in 2019. We ended the first quarter of 2020 with a consolidated cash balance of $109.2 million.
• As we have noted in recent years our revenues can vary significantly from quarter to quarter depending upon the timing of when customers elect to take their annual deliveries and other factors. Therefore, our operating results and cash flows can fluctuate significantly from quarter to quarter and year to year. Operating results for the three months ended March 31, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020.

"I am pleased that, in this challenging time, we are able to report a positive net income for the quarter. This is the result of the hard work we've done in recent years to diversify our business, reduce our debt, and lower our cost structure," said Dan Poneman, Centrus president and chief executive officer. "We are continuing to make progress on the HALEU program, even as we have limited our operations to protect the health and safety of our employees and their families."

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