Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | May 01, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-14287 | |
Entity Registrant Name | Centrus Energy Corp. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 52-2107911 | |
Entity Address, Address Line One | 6901 Rockledge Drive, | |
Entity Address, Address Line Two | Suite 800, | |
Entity Address, City or Town | Bethesda | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20817 | |
City Area Code | 301 | |
Local Phone Number | 564-3200 | |
Title of 12(b) Security | Class A Common Stock, par value $0.10 per share | |
Trading Symbol | LEU | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001065059 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 13,133,035 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 719,200 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 163.3 | $ 152 |
Accounts receivable, net | 15.5 | 29.6 |
Inventories | 83.5 | 64.8 |
Deferred costs associated with deferred revenue | 136 | 151.9 |
Other current assets | 7.8 | 7.8 |
Total current assets | 406.1 | 406.1 |
Property, Plant and Equipment, Net | 5 | 4.9 |
Deposits for surety bonds | 5.7 | 5.7 |
Intangible assets | 60.7 | 62.8 |
Other long-term assets | 6.2 | 6.8 |
Total Assets | 483.7 | 486.3 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 47.1 | 50.6 |
Payables under SWU purchase agreements | 16.9 | 21.3 |
Inventories owed to customers and suppliers | 13.3 | 4.9 |
Deferred revenue | 255.5 | 283.2 |
Current debt | 6.1 | 6.1 |
Total current liabilities | 338.9 | 366.1 |
Long-term debt | 104.9 | 108 |
Postretirement health and life benefit obligations | 128.9 | 130.8 |
Pension benefit liabilities | 119 | 124.4 |
Advances from customer, noncurrent | 44.4 | 45.2 |
Other long-term liabilities | 32.4 | 32.4 |
Total liabilities | 768.5 | 806.9 |
Commitments and contingencies (Note 11) | ||
Stockholders' Deficit | ||
Excess of capital over par value | 123.3 | 85 |
Accumulated deficit | (410.2) | (407.7) |
Accumulated other comprehensive income (loss), net of tax | 0.7 | 0.8 |
Total stockholders' deficit | (284.8) | (320.6) |
Total Liabilities and Stockholders’ Equity (Deficit) | 483.7 | 486.3 |
Preferred Series B [Member] | ||
Stockholders' Deficit | ||
Preferred stock | 0.1 | 0.1 |
Common Class A [Member] | ||
Stockholders' Deficit | ||
Common stock | 1.2 | 1.1 |
Common Class B [Member] | ||
Stockholders' Deficit | ||
Common stock | $ 0.1 | $ 0.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Preferred Stock, Par Value Per Share | $ 1 | $ 1 |
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.10 | |
Accumulated Depreciation, Property, Plant, and Equipment | $ 2,800,000 | $ 2,700,000 |
Preferred Series B [Member] | ||
Preferred Stock, Dividend Rate, Percentage | 7.50% | |
Preferred Stock, Shares Issued | 37,847 | 41,720 |
Preferred Stock, Liquidation Preference, Value | $ 49,600,000 | $ 53,900,000 |
Common Class A [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 70,000,000 | 70,000,000 |
Common Stock, Shares, Issued | 12,764,578 | 11,390,189 |
Common Class B [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock, Shares, Issued | 719,200 | 719,200 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 55.6 | $ 45 |
Revenue | 55.6 | 45 |
Cost of sales | 43.9 | 25.4 |
Gross profit (loss) | 11.7 | 19.6 |
Advanced technology license and decommissioning costs | 0.5 | 0.9 |
Selling, general and administrative | 8.2 | 8.5 |
Amortization of intangible assets | 2.1 | 1.4 |
Gain on Sales of Assets | 0 | (0.1) |
Operating income (loss) | 0.9 | 8.9 |
Nonoperating components of net periodic benefit expense (income) | (4.3) | (2.2) |
Interest expense | 0 | 0.1 |
Investment income | 0 | (0.4) |
Income (loss) before income taxes | 5.2 | 11.4 |
Provision (benefit) for income taxes | 0.1 | 0.1 |
Net income (loss) | 5.1 | 11.3 |
Preferred stock dividends, undeclared and cumulative | 0.7 | 2 |
Distributed earnings allocable to retired preferred shares | 6.6 | 0 |
Net income (loss) allocable to common stockholders | $ (2.2) | $ 9.3 |
Net income (loss) per common share - basic | $ (0.17) | $ 0.97 |
Net income (loss) per common share - diluted | $ (0.17) | $ 0.95 |
Weighted-average number of shares outstanding: | ||
Average number of shares outstanding, basic | 12,818 | 9,619 |
Average number of shares outstanding, diluted | 12,818 | 9,839 |
Separative Work Units [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 38.1 | $ 30.7 |
Uranium [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Product [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 38.1 | 30.7 |
Cost of sales | 25.4 | 13.3 |
Service [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 17.5 | 14.3 |
Cost of sales | $ 18.5 | $ 12.1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income (loss) | $ 5.1 | $ 11.3 |
Adjustments to reconcile net income (loss) to net cash (used in) operating activities: | ||
Depreciation and amortization | 2.2 | 1.5 |
Changes in operating assets and liabilities: | ||
Accounts receivable – (increase) decrease | 14.2 | 3.6 |
Inventories, net – (increase) decrease | (10.3) | 0.1 |
Accounts payable and other liabilities – increase (decrease) | 6.6 | 1.3 |
Payables under SWU purchase agreements – increase (decrease) | (4.4) | (1.9) |
Deferred revenue, net of deferred costs – increase (decrease) | (12.5) | (23.3) |
Accrued loss on long-term contract, increase (decrease) | (2) | |
Pension and postretirement liabilities - increase (decrease) | (7.4) | (8.6) |
Other, net | 0 | 1 |
Net Cash (Used in) Operating Activities | (8.5) | (18.5) |
Cash Flows Provided by Investing Activities | ||
Capital expenditures | (0.4) | 0 |
Net Cash Provided by (Used in) Investing Activities | (0.4) | 0 |
Cash Flows Used in Financing Activities | ||
Proceeds from the sale of common stock, net | 23.2 | 0 |
Payment of interest classified as debt | (3.1) | (3.1) |
Exercise of stock options | 0.2 | 0.2 |
Payments for deferred financing costs | 0 | (0.1) |
Payments of equity issuance costs | (0.1) | 0 |
Net Cash (Used in) Financing Activities | 20.2 | (3) |
Decrease in cash, cash equivalents and restricted cash | 11.3 | (21.5) |
Cash, cash equivalents and restricted cash, start of period | 157.9 | 136.6 |
Cash, cash equivalents and restricted cash, end of period | 169.2 | 115.1 |
Supplemental Cash Flow Information: | ||
Conversion of interest payable-in-kind to long-term debt | 7.5 | 0 |
Deferred financing costs included in accounts payable and accrued liabilities [Member] | ||
Supplemental Cash Flow Information: | ||
Other Significant Noncash Transaction, Value of Consideration Given | 0 | 0.5 |
Reclassification of stock-based compensation liability to equity [Member] | ||
Supplemental Cash Flow Information: | ||
Other Significant Noncash Transaction, Value of Consideration Given | (7.5) | 0 |
Equity issuance costs included in accounts payable and accrued liabilities [Member] | ||
Supplemental Cash Flow Information: | ||
Other Significant Noncash Transaction, Value of Consideration Given | (0.4) | 0 |
Property, plant and equipment included in accounts payable and accrued liabilities [Member] | ||
Supplemental Cash Flow Information: | ||
Other Significant Noncash Transaction, Value of Consideration Given | $ (0.1) | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) | Total | Preferred Stock [Member] | Preferred Stock [Member]Preferred Series B [Member] | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Excess of Capital over Par Value [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2019 | $ (336,900,000) | $ 4,600,000 | $ 800,000 | $ 100,000 | $ 61,500,000 | $ (405,000,000) | $ 1,100,000 | |
Net income (loss) | 11,300,000 | 11,300,000 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 400,000 | 300,000 | 100,000 | |||||
Ending Balance at Mar. 31, 2020 | (325,200,000) | $ 4,600,000 | 800,000 | 100,000 | 61,800,000 | (393,700,000) | 1,200,000 | |
Beginning Balance at Dec. 31, 2020 | (320,600,000) | 100,000 | 1,100,000 | 100,000 | 85,000,000 | (407,700,000) | 800,000 | |
Net income (loss) | 5,100,000 | 5,100,000 | ||||||
Stock issued during period | 23,800,000 | 100,000 | 23,700,000 | |||||
Receivable from issuance of stock | (700,000) | (700,000) | ||||||
Exchange of preferred stock for common stock and common stock warrant | (100,000) | 7,500,000 | 7,500,000 | (7,600,000) | ||||
Reclassification of stock-based compensation liability to equity | 7,500,000 | 7,500,000 | ||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 200,000 | 300,000 | (100,000) | |||||
Ending Balance at Mar. 31, 2021 | $ (284,800,000) | $ 100,000 | $ 1,200,000 | $ 100,000 | $ 123,300,000 | $ (410,200,000) | $ 700,000 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Basis of Presentation and Principles of Consolidation The unaudited condensed consolidated financial statements of Centrus Energy Corp. (“Centrus” or the “Company”), which include the accounts of the Company, its principal subsidiary, United States Enrichment Corporation, and its other subsidiaries, as of March 31, 2021, and for the three months ended March 31, 2021 and 2020, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated balance sheet as of December 31, 2020, was derived from audited consolidated financial statements, but does not include all disclosures required by generally accepted accounting principles in the United States (“GAAP”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments, necessary for a fair statement of the financial results for the interim period. Certain prior year amounts have been reclassified for consistency with the current year presentation. Certain information and notes normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. All material intercompany transactions have been eliminated. The Company’s components of comprehensive income for the three months ended March 31, 2021 and 2020, are insignificant. Operating results for the three months ended March 31, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes and Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Annual Report on Form 10-K for the year ended December 31, 2020. New Accounting Standards Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), which amends the annual disclosure requirements for employers that sponsor defined benefit pension plans and other postretirement plans. The standard is effective for fiscal years beginning after December 15, 2020. Adoption of this new standard is not expected to have a significant impact to the Company’s annual disclosures. Significant Accounting Policies The accounting policies of the Company are set forth in Note 1 to the Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. There has not been a material change to the Company’s accounting policies since that report. |
Revenue and Contracts with Cust
Revenue and Contracts with Customers | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE AND CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table presents revenue from separative work units (“SWU”) and uranium sales disaggregated by geographical region based on the billing addresses of customers (in millions): Three Months Ended March 31, 2021 2020 United States $ 9.6 $ 7.3 Foreign 28.5 23.4 Revenue - SWU and uranium $ 38.1 $ 30.7 Refer to Note 12, Segment Information, for disaggregation of revenue by segment. Disaggregation by end-market is provided in Note 12 and the unaudited condensed consolidated statements of operations. SWU sales are made primarily to electric utility customers and uranium sales are primarily made to other nuclear fuel related companies. Technical solutions revenue resulted primarily from services provided to the government and its contractors. SWU and uranium revenue is recognized at point of sale and technical solutions revenue is generally recognized over time. Accounts Receivable March 31, December 31, ($ millions) Accounts receivable: Billed $ 6.8 $ 23.0 Unbilled * 8.7 6.6 Accounts receivable $ 15.5 $ 29.6 * Billings under certain contracts in the technical services segment are invoiced based on approved provisional billing rates. Unbilled revenue represents the difference between actual costs incurred and invoiced amounts. The Company expects to invoice and collect the unbilled amounts after actual rates are submitted to the customer and approved. Unbilled revenue also includes unconditional rights to revenue that are not yet billable under applicable contracts pending the compilation of supporting documentation. Contract Liabilities The following table presents changes in contract liability balances (in millions): March 31, December 31, 2020 Year-To-Date Change Accrued loss on HALEU Contract: Current - Accounts payable and accrued liabilities $ 5.7 $ 7.0 $ (1.3) Noncurrent - Other long-term liabilities $ — $ 0.7 $ (0.7) Deferred revenue - current $ 253.5 $ 281.7 $ (28.2) Advances from customers - current $ 2.0 $ 1.5 $ 0.5 Advances from customers - noncurrent $ 44.4 $ 45.2 $ (0.8) Previously deferred sales recognized in revenue totaled $28.5 million and $0 million in the three months ended March 31, 2021 and 2020, respectively. LEU Segment The SWU component of LEU is typically bought and sold under contracts with deliveries over several years. The Company’s agreements for natural uranium sales are generally shorter-term, fixed-commitment contracts. The Company’s order book of sales under contract in the low-enriched uranium (“LEU”) segment (“order book”) extends to 2030. As of March 31, 2021, the order book was approximately $989 million. The order book represents the estimated aggregate dollar amount of revenue for future SWU and uranium deliveries under contract and includes approximately $300 million of Deferred Revenue and Advances from Customers. Refer to Contract Liabilities table above. As of December 31, 2020, the order book was approximately $960 million. Most of the Company’s enrichment contracts provide for fixed purchases of SWU during a given year. T he Company’s order book is partially based on customers’ estimates of the timing and size of their fuel requirements and other assumptions that are subject to change. For example, depending on the terms of specific contracts, the customer may be able to increase or decrease the quantity delivered within an agreed range. T he Company’s order book estimate is also based on the Company’s estimates of selling prices, which may be subject to change. For example, depending on the terms of specific contracts, prices may be adjusted based on escalation using a general inflation index, published SWU price indicators prevailing at the time of delivery, and other factors, all of which are variable. T he Company uses external composite forecasts of future market prices and inflation rates in its pricing estimates. Technical Solutions Segment Revenue for the technical solutions segment, representing the Company’s technical, manufacturing, engineering, procurement, construction, and operations services offered to public and private sector customers, is recognized over the contractual period as services are rendered. On October 31, 2019, the Company signed a cost-share contract with the U.S. Department of Energy (“DOE”) to deploy a cascade of centrifuges to demonstrate production of high-assay, low-enriched uranium (“HALEU”) for advanced reactors (“the HALEU Contract”). HALEU is a component of an advanced nuclear reactor fuel that is not commercially produced in the United States today and may be required for a number of advanced reactor and fuel designs currently under development in both the commercial and government sectors. The three-year program has been under way since May 31, 2019, when the Company and DOE signed a preliminary letter agreement that allowed work to begin while the full contract was being finalized. Under the HALEU Contract, DOE agreed to reimburse the Company for 80% of its costs incurred in performing the contract, up to a maximum of $115 million. The Company’s cost share is the corresponding 20% and any costs incurred above these amounts. Costs under the HALEU Contract include program costs , including direct labor and materials and associated indirect costs that are classified as Cost of Sales , and an allocation of corporate costs supporting the program that are classified as Selling, General and Administrative Expenses . Services to be provided over the three-year contract include constructing and assembling centrifuge machines and related infrastructure in a cascade formation and production of a small quantity of HALEU. When estimates of remaining program costs to be incurred for such an integrated, construction-type contract exceed estimates of total revenue to be earned, a provision for the remaining loss on the contract is recorded to Cost of Sales in the period the loss is determined. The Company’s corporate costs supporting the program are recognized as expense as incurred over the duration of the contract term. In 2019, the portion of the Company’s anticipated cost share under the HALEU Contract representing the Company’s share of remaining projected program costs was recognized in Cost of Sales as an accrued loss of $18.3 million. The accrued loss on the contract is being adjusted over the remaining contract term based on actual results and remaining program cost projections. As of March 31, 2021, the accrued contract loss balance included in Accounts Payable and Accrued Liabilities was $5.7 million. Cost of sales in the three months ended March 31, 2021 and 2020 benefited by $2.0 million and $3.0 million, respectively, for previously accrued contract losses attributable to work performed in the periods. The HALEU Contract is incrementally funded and DOE is currently obligated for costs up to approximately $102.8 million of the $115 million. The Company has received aggregate cash payments of $69.6 million through March 31, 2021. Centrus and DOE have yet to fully settle the Company’s claims for reimbursements for certain pension and postretirement benefits costs related to past contract work performed for DOE unrelated to the HALEU Contract. There is the potential for additional income to be recognized for this work pending the outcome of legal proceedings related to the Company’s claims for payment and the potential release of previously established valuation allowances on receivables. As a result of the application of fresh start accounting following the Company’s emergence from Chapter 11 bankruptcy on September 30, 2014, the receivables related to the Company’s claims for payment are carried at fair value as of September 30, 2014, which is net of the valuation allowances. Refer to Note 11, Commitments and Contingencies -- Legal Matters . |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Mar. 31, 2021 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Cash and Cash Equivalents Disclosure | CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table summarizes the Company’s cash, cash equivalents and restricted cash as presented on the unaudited condensed consolidated balance sheet to amounts on the unaudited condensed consolidated statement of cash flows (in millions): March 31, March 31, 2020 Cash and cash equivalents $ 163.3 $ 109.2 Deposits for financial assurance - current 0.2 0.2 Deposits for financial assurance - noncurrent 5.7 5.7 Total cash, cash equivalents and restricted cash $ 169.2 $ 115.1 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Centrus holds uranium at licensed locations in the form of natural uranium and as the uranium component of LEU. Centrus also holds SWU as the SWU component of LEU at licensed locations (e.g., fabricators) to meet book transfer requests by customers. Fabricators process LEU into fuel for use in nuclear reactors. Components of inventories are as follows (in millions): March 31, 2021 December 31, 2020 Current Current Inventories, Net Current Current Inventories, Net Separative work units $ 14.8 $ 0.1 $ 14.7 $ 17.0 $ 4.6 $ 12.4 Uranium 68.7 13.2 55.5 47.8 0.3 47.5 Total $ 83.5 $ 13.3 $ 70.2 $ 64.8 $ 4.9 $ 59.9 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS Intangible assets originated from the Company’s reorganization and application of fresh start accounting as of the date the Company emerged from bankruptcy, September 30, 2014, and reflect the conditions at that time. The intangible asset related to the sales order book is amortized as the order book existing at emergence is reduced, principally as a result of deliveries to customers. The intangible asset related to customer relationships is amortized using the straight-line method over the estimated average useful life of 15 years. Amortization expense is presented below gross profit on the unaudited condensed consolidated statements of operations and comprehensive income. Intangible asset balances are as follows (in millions): March 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Sales order book $ 54.6 $ 33.0 $ 21.6 $ 54.6 $ 32.0 $ 22.6 Customer relationships 68.9 29.8 39.1 68.9 28.7 40.2 Total $ 123.5 $ 62.8 $ 60.7 $ 123.5 $ 60.7 $ 62.8 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT A summary of debt is as follows (in millions): March 31, 2021 December 31, 2020 Maturity Current Long-Term Current Long-Term 8.25% Notes: Feb. 2027 Principal $ — $ 74.3 $ — $ 74.3 Interest 6.1 30.6 6.1 33.7 Total $ 6.1 $ 104.9 $ 6.1 $ 108.0 Interest on the 8.25% notes (the “8.25% Notes”) maturing in February 2027 is payable semi-annually in arrears as of February 28 and August 31 based on a 360-day year consisting of twelve 30-day months. The 8.25% Notes mature on February 28, 2027. As shown in the table above, all future interest payment obligations on the 8.25% Notes are included in the carrying value of the 8.25% Notes. As a result, the Company’s reported interest expense will be less than its contractual interest payments throughout the term of the 8.25% Notes. As of March 31, 2021, and December 31, 2020, $6.1 million of interest was recorded as current and classified as Current Debt in the unaudited condensed consolidated balance sheet. Additional terms and conditions of the 8.25% Notes are described in Note 9, Debt , of the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value of assets and liabilities, the following hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable: • Level 1 – quoted prices for identical instruments in active markets. • Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. • Level 3 – valuations derived using one or more significant inputs that are not observable. Financial Instruments Recorded at Fair Value (in millions): March 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 163.3 $ — $ — $ 163.3 $ 152.0 $ — $ — $ 152.0 Deferred compensation asset (a) 2.5 — — 2.5 2.4 — — 2.4 Liabilities: Deferred compensation obligation (a) $ 2.4 $ — $ — $ 2.4 $ 2.3 $ — $ — $ 2.3 (a) The deferred compensation obligation represents the balance of deferred compensation plus net investment earnings. The deferred compensation plan is funded through a rabbi trust. Trust funds are invested in mutual funds for which unit prices are quoted in active markets and are classified within Level 1 of the valuation hierarchy. There were no transfers between Level 1, 2 or 3 during the periods presented. Other Financial Instruments As of March 31, 2021, and December 31, 2020, the balance sheet carrying amounts for Accounts Receivable , Accounts Payable and Accrued Liabilities (excluding the deferred compensation obligation described above), and Payables under SWU Purchase Agreements approximate fair value because of their short-term nature. The carrying value and estimated fair value of long-term debt are as follows (in millions): March 31, 2021 December 31, 2020 Carrying Value Estimated Fair Value (a) Carrying Value Estimated Fair Value (a) 8.25% Notes $ 111.0 (b) $ 73.9 $ 114.1 (b) $ 68.6 (a) Based on recent trading prices and bid/ask quotes as of or near the balance sheet date, which are considered Level 2 inputs based on the frequency of trading. (b) The carrying value of the 8.25% Notes consists of the principal balance of $74.3 million and the sum of current and noncurrent interest payment obligations until maturity. Refer to Note 6, Debt |
Pension and Postretirement Heal
Pension and Postretirement Health and Life Benefits | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits, Description [Abstract] | |
Pension and Postretirement Health and Life Benefits | PENSION AND POSTRETIREMENT HEALTH AND LIFE BENEFITS The components of net periodic benefit (credits) for the defined benefit pension plans were as follows (in millions): Three Months Ended March 31, 2021 2020 Service costs $ 0.8 $ 0.9 Interest costs 4.5 6.1 Amortization of prior service costs (credits), net (0.1) (0.1) Expected return on plan assets (gains) (9.6) (9.4) Net periodic benefit (credits) $ (4.4) $ (2.5) The components of net periodic benefit costs for the postretirement health and life benefit plans were as follows (in millions): Three Months Ended March 31, 2021 2020 Interest costs $ 0.9 $ 1.2 Net periodic benefit costs $ 0.9 $ 1.2 The Company reports service costs for its defined benefit pension plans and its postretirement health and life benefit plans in Cost of Sales and Selling, General and Administrative Expenses . The remaining components of net periodic benefit (credits) costs are reported as Nonoperating Components of Net Periodic Benefit Expense (Income). |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | NET INCOME (LOSS) PER SHARE Basic net income per share is calculated by dividing income allocable to common stockholders by the weighted average number of shares of common stock outstanding during the period. In calculating diluted net income per share, the number of shares is increased by the weighted average number of potential shares related to stock compensation awards. No dilutive effect is recognized in a period in which a net loss has occurred. On February 2, 2021, the Company completed the exchange of 3,873 shares of its outstanding Series B Senior Preferred Stock, par value $1.00 per share (“Preferred Stock”) for (i) 231,276 shares of Common Stock and (ii) a warrant to purchase 250,000 shares of Common Stock at an exercise price of $21.62 per share, for an aggregate valuation of approximately $7.5 million. (Refer to Note 10 - Stockholders’ Equit y). The carrying value of the Preferred Stock on the Balance Sheet was $1.00 per share par value. The aggregate liquidation preference of the Preferred Stock, including accrued but unpaid dividends, was $1,291.04 per share as of December 31, 2020. The aggregate valuation of approximately $7.5 million, less accrued but unpaid dividends attributable to the acquired and retired shares of Preferred Stock, is considered for purposes of Net Income (Loss) per Share to be a deemed dividend in the aggregate amount equal to the amount by which it exceeds the carrying value of the Preferred Stock on the Balance Sheet, or $6.6 million. The weighted average number of common and common equivalent shares used in the calculation of basic and diluted income (loss) per share are as follows: Three Months Ended March 31, 2021 2020 Numerator (in millions): Net income (loss) $ 5.1 $ 11.3 Less: Preferred stock dividends - undeclared and cumulative 0.7 2.0 Less: Distributed earnings allocable to retired preferred shares 6.6 — Net income (loss) allocable to common stockholders $ (2.2) 9.3 Denominator (in thousands): Average common shares outstanding - basic 12,818 9,619 Potentially dilutive shares related to stock options and restricted stock units (a) — 220 Average common shares outstanding - diluted 12,818 9,839 Net income (loss) per share (in dollars): Basic $ (0.17) $ 0.97 Diluted $ (0.17) $ 0.95 (a) Common stock equivalents excluded from the diluted calculation as a result of a net loss in the period (in thousands) 378 — |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | STOCKHOLDERS’ EQUITY Pursuant to a sales agreement with its agents, the Company sold at the market price an aggregate of 1,092,113 shares of its Class A Common Stock in the three months ended March 31, 2021 for a total of $25.2 million. After expenses and commissions paid to the Agents the Company’s proceeds total $24.2 million, of which $0.7 million is a receivable recorded in Excess of Capital Over Par Value as of March 31, 2021. Additionally, the Company recorded direct costs of $0.4 million related to the issuance. The shares of Class A Common Stock were issued pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-239242), which became effective on August 5, 2020, and a prospectus supplement dated December 31, 2020, to the prospectus. The Company currently intends to use the net proceeds from the ATM Offering for general working capital purposes, to invest in technology development and to repay outstanding debt or retire shares of its Preferred Stock. As previously disclosed in our Current Report on Form 8-K filed February 5, 2021, on February 2, 2021, the Company entered into an amendment (the “Voting Agreement Amendment”) to its existing Voting and Nomination Agreement with Mr. Morris Bawabeh, Kulayba LLC and M&D Bawabeh Foundation, Inc. (collectively, the “MB Group”) and an Exchange Agreement (as described below) whereby the MB Group agreed to support management’s recommendation on certain matters at the Company’s 2021 annual meeting of stockholders (the “Annual Meeting”) and Kulayba LLC agreed to exchange shares of the Company’s Preferred Stock for shares of the Company’s Class A Common Stock, par value $0.10 per share (“Common Stock”) and a warrant to acquire additional shares of Common Stock. Pursuant to the First Amendment to the Voting and Nomination Agreement, the MB Group agreed to cause all shares of Common Stock owned of record or beneficially owned by the MB Group at the Annual Meeting to be voted in favor of (i) an amendment to extend the length of the term of the Company’s Section 382 Rights Agreement dated as of April 6, 2016, as amended to date, for two years from June 30, 2021, to June 30, 2023, and (ii) an increase of shares of Common Stock reserved for delivery under the Company’s Centrus Energy Corp 2014 Equity Incentive Plan, as amended to date, of an additional 700,000 shares of Common Stock. In connection with the entry into the Voting Agreement Amendment, the Company and Kulayba LLC also entered into an Exchange Agreement, dated February 2, 2021 (the “Exchange Agreement”), pursuant to which Kulayba LLC agreed to exchange (the “Exchange”) 3,873 shares of Preferred Stock, representing a $5,000,198 liquidation preference (including accrued and unpaid dividends), for (i) 231,276 shares of Common Stock priced at the closing market price of $21.62 on the date the Exchange Agreement was signed and (ii) a Centrus Energy Corp. Warrant to Purchase Common Stock (the “Warrant”), exercisable for 250,000 shares of Common Stock at an exercise price of $21.62 per share, which was the closing market price on the date the Exchange Agreement was signed, subject to certain customary adjustments pursuant to the terms of the Warrant. The Warrant is exercisable by Kulayba LLC for a period commencing on the closing date of the Exchange and ending, unless sooner terminated as provided in the Warrant, on the first to occur of: (a) the second anniversary of the closing date of the Exchange or (b) the last business day immediately prior to the consummation of a Fundamental Transaction (as defined in the Warrant) which results in the shareholders of the Company immediately prior to such Fundamental Transaction owning less than 50% of the voting equity of the surviving entity immediately after the consummation of the Fundamental Transaction. The Company retired the 3,873 shares of Preferred Stock received by the Company under the Exchange Agreement. Notional stock units are a component of the 2019 Executive Incentive Plan for participating executives for the three-year period ending December 31, 2021, with an interim payment in April 2021 and the final payment targeted for 2022. Notional stock units and stock appreciation rights were granted to participating executives for the three-year period ending April 26, 2023. The notional stock units and stock appreciation rights may be payable in common stock, cash or a combination of both at the discretion of the Board of Directors. Since the awards are likely to be settled with cash payments, compensation cost for notional stock units and stock appreciation rights are re-measured each reporting period based on the trading price of the Company’s Class A Common Stock and the cumulative vested costs are accrued in Accounts Payable and Accrued Liabilities or Other Long-Term Liabilities based on the anticipated payment date. A portion of the April 2021 interim payment referenced above was paid in shares at the discretion of the Board of Directors. The related obligation of $7.5 million was reclassified from Accounts Payable and Accrued Liabilities to Excess of Capital over Par Value |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments under SWU Purchase Agreements TENEX A major supplier of SWU to the Company is the Russian government-owned entity TENEX, Joint-Stock Company (“TENEX”). Under a 2011 agreement with TENEX, as amended, (the “TENEX Supply Contract”), the Company purchases SWU contained in LEU received from TENEX, and the Company delivers natural uranium to TENEX for the LEU’s uranium component. The LEU that the Company obtains from TENEX under the agreement is subject to quotas and other restrictions applicable to commercial Russian LEU. The TENEX Supply Contract was originally signed with commitments through 2022 but was modified in 2015 to give the Company the right to reschedule certain quantities of SWU of the original commitments into the period 2023 and beyond, in return for the purchase of additional SWU in those years. The Company has exercised this right to reschedule in each year through December 31, 2020. If the Company exercises this right to reschedule in full during the remaining years of the contract’s original term, the Company will have a rescheduled post-2022 purchase commitment through 2028. The TENEX Supply Contract provides that the Company must pay for all SWU in its minimum purchase obligation each year, even if it fails to submit orders for such SWU. In such a case, the Company would pay for the SWU but have to take the unordered SWU in the following year. Pricing terms for SWU under the TENEX Supply Contract are based on a combination of market-related price points and other factors. This formula was subject to an adjustment at the end of 2018 that reduced the unit costs of SWU under this contract in 2019 and for the duration of the contract. Orano In 2018, the Company entered into an agreement (the “Orano Supply Agreement”) with the French company Orano Cycle (“Orano”) for the long-term supply to the Company of SWU contained in LEU. Under the Orano Supply Agreement, as amended, the supply of SWU commenced in 2020 and extends to 2028. The Company has the option to extend the supply period for an additional two years. The Orano Supply Agreement provides significant flexibility to adjust purchase volumes, subject to annual minimums and maximums in fixed amounts that vary year by year. The pricing for the SWU purchased by the Company is determined by a formula that uses a combination of market-related price points and other factors and is subject to certain floors and ceilings. Milestones Under the 2002 DOE-USEC Agreement The Company’s predecessor USEC Inc. and DOE signed an agreement dated June 17, 2002, as amended (the “2002 DOE-USEC Agreement”), pursuant to which the parties made long-term commitments directed at resolving issues related to the stability and security of the domestic uranium enrichment industry. The 2002 DOE-USEC Agreement requires Centrus to develop, demonstrate and deploy advanced enrichment technology in accordance with milestones, including the deployment of a commercial American Centrifuge Plant, and provides for remedies in the event of a failure to meet a milestone under certain circumstances, including terminating the 2002 DOE-USEC Agreement, revoking Centrus’ access to DOE’s centrifuge technology that is required for the success of the Company’s ongoing work with the American Centrifuge technology, requiring Centrus to transfer certain rights in the American Centrifuge technology and facilities to DOE, and requiring Centrus to reimburse DOE for certain costs associated with the American Centrifuge technology. The 2002 DOE-USEC Agreement provides that if a delaying event beyond the control and without the fault or negligence of Centrus occurs that could affect Centrus’ ability to meet the American Centrifuge Plant milestone under the 2002 DOE-USEC Agreement, DOE and the Company will jointly meet to discuss in good faith possible adjustments to the milestones as appropriate to accommodate the delaying event. In 2014 the 2002 DOE-USEC Agreement and other agreements between the Company and DOE were assumed by Centrus subject to an express reservation of all rights, remedies and defenses by DOE and the Company under those agreements. DOE and the Company have agreed that all rights, remedies and defenses of the parties with respect to any missed milestones and all other matters under the 2002 DOE-USEC Agreement continue to be preserved, and that the time limits for each party to respond to any missed milestones continue to be tolled. Legal Matters From time to time, the Company is involved in various pending legal proceedings, including the pending legal proceedings described below. On August 30, 2013, the Company submitted a claim to DOE under the Contract Disputes Act for payment of $42.8 million, representing DOE’s share of pension and postretirement benefits costs related to the transition of employees at the former Portsmouth, Ohio, Gaseous Diffusion Plant (the “Portsmouth GDP”) to DOE’s decontamination and decommissioning (“D&D”) contractor. On August 27, 2014, the DOE contracting officer denied the Company’s claim. As a result, the Company filed an appeal of the decision in the U.S. Court of Federal Claims in January 2015. Centrus believes that DOE is responsible for a significant portion of any pension and postretirement benefit costs associated with the transition of employees at Portsmouth. The receivable for DOE’s share of pension and postretirement benefits costs has a full valuation allowance due to the lack of a resolution with DOE and uncertainty regarding the amounts owed and the timing of collection. On January 13, 2021, the Company and DOE reached a tentative agreement to settle the litigation. The settlement is subject to the approval by DOE, the U.S. Department of Justice, the Company’s Board of Directors, and the Court. If the settlement is ultimately approved by all parties, DOE is expected to pay the Company $43.5 million (inclusive of any interest due). Any amounts received by the Company in connection with the settlement will be applied to pension and post-retirement benefits obligations. The Company can give no assurance whether or when the tentative settlement will receive the required approvals or whether the Company will ultimately recover some, all or none of the proposed settlement amount. On May 26, 2019, the Company, Enrichment Corp., and six other DOE contractors who have operated facilities at the Portsmouth GDP site (including, in the case of the Company, the American Centrifuge Plant site located on the premises) were named as defendants in a class action complaint filed by Ursula McGlone, Jason McGlone, Julia Dunham, and K.D. and C.D., minor children by and through their parent and natural guardian Julia Dunham (collectively, the “McGlone Plaintiffs”) in the U.S. District Court in the Southern District of Ohio, Eastern Division. The complaint seeks damages for alleged off-site contamination allegedly resulting from activities on the Portsmouth GDP site. The McGlone Plaintiffs are seeking to represent a class of (i) all current or former residents within a seven-mile radius of the Portsmouth GDP site and (ii) all students and their parents at the Zahn’s Corner Middle School from 1993-present. The complaint was amended on December 10, 2019, and on January 10, 2020, to add additional plaintiffs and new claims. On July 31, 2020, the court granted in part and denied in part the defendants’ motion to dismiss the case. The court dismissed ten of the fifteen claims and allowed the remaining claims to proceed to the next stage of the litigation process. On August 18, 2020, the McGlone Plaintiffs filed a motion for leave to file a third amended complaint and notice of dismissal of three of the individual plaintiffs. On September 29, 2020, the defendants filed their response in opposition to the plaintiff’s motion for leave to file a third amended complaint. On October 26, 2020, the plaintiffs filed their reply brief. On March 18, 2021, the McGlone Plaintiffs filed a motion for leave to file a fourth amended complaint to add new plaintiffs and allegations. On March 19, 2021, the court granted the McGlone Plaintiffs’ motion for leave to amend the complaint. The defendants’ motion to dismiss is due on May 24, 2021. The Company believes that its operations at the Portsmouth GDP site were fully in compliance with the Nuclear Regulatory Commission’s regulations. Further, the Company believes that any such liability should be indemnified under the Price-Anderson Nuclear Industries Indemnity Act (“Price-Anderson Act”). The Company and Enrichment Corp. have provided notifications to DOE required to invoke indemnification under the Price-Anderson Act and other contractual provisions. On November 27, 2019, the Company, Enrichment Corp. and six other DOE contractors who have operated facilities at the Portsmouth GDP site were named as defendants in a class action complaint filed by James Matthews, Jennifer Brownfield Clark, Joanne Ross, the Estate of A.R., and others similarly situated (the “Matthews Plaintiffs”), in the Common Pleas Court of Pike County, Ohio. On January 3, 2020, the complaint was removed to the U.S. District Court in the Southern District of Ohio for adjudication. The complaint sought injunctive relief, compensatory damages, statutory damages, and any other relief allowed by law for alleged off-site contamination allegedly resulting from activities on the Portsmouth GDP site. The Matthews Plaintiffs expressly contended that the ongoing and continuous releases that injured the Plaintiffs and class members were not “nuclear incidents” as that term is defined in the Price-Anderson Act, but rather “freestanding state law claims concerning traditional-style state regulation.” On July 27, 2020, the court granted the Company, Enrichment Corp. and the other defendants’ motion to dismiss the complaint because the Matthews Plaintiffs had opted not to proceed under the Price-Anderson Act, which preempts state law. On August 18, 2020, the plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Sixth Circuit. On November 17, 2020, the Matthews Plaintiffs filed their appellant brief and on February 1, 2021, the Matthews Defendants filed their brief. On February 22, 2021, the Matthews Plaintiffs filed their reply brief. The case is scheduled for oral argument on June 8, 2021. The Company believes that its operations at the Portsmouth GDP site were fully in compliance with the Nuclear Regulatory Commission’s regulations. Further, the Company believes that any such liability should be indemnified under the Price-Anderson Act. The Company and Enrichment Corp. had provided notifications to DOE required to invoke indemnification under the Price-Anderson Act and other contractual provisions. On June 30, 2020, the Company, Enrichment Corp., six other DOE contractors, DOE and other government agencies were given notice of Ursula McGlone, Jason McGlone and Julia Dunham’s intent to file a citizen’s suit under the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation and Liability Act against the Company, Enrichment Corp. and six other DOE contractors. The complainants will purportedly seek civil penalties and injunctive relief for alleged off-site contamination allegedly resulting from activities on the Portsmouth GDP site. As of this filing, neither the Company nor Enrichment Corp. have been served with this complaint. On September 3, 2020, the Company, Enrichment Corp., nine other DOE contractors who have operated facilities at the Portsmouth GDP site, and eleven individuals in their personal capacity, some of whom are current and former DOE employees, were named as defendants (“Walburn Defendants”) in a class action complaint filed by Jeffrey Walburn, Charles O. Lawson Jr., Kimberly M. Lawson, James A. Brogdon, Stephen Patrick Spriggs, Donald Slone, Vicki P. Slone, Victoria Slone Moore, Toni West, Carl R. Hartley, Heather R. Hartley, Vina Colley, Antony Preston, David B. Rose, Michael E. Groves, George W. Clark, Estate of Kathy Sue Brogdon (deceased), Estate of Jay Paul Brogdon (deceased), and Jon Doe(s), and Jane Doe(s), on behalf of themselves and all similarly situated individuals (“Walburn Plaintiffs”) in the U.S. District Court in the Southern District of Ohio, Eastern Division. The complaint alleges that the named defendants conspired and concealed nuclear incidents in violation of the Price-Anderson Act, the Racketeer Influenced and Corrupt Organization Act and other state claims. The complainants seek damages and equitable and injunctive relief arising from economic losses, property losses, and non-economic damages resulting from toxic and radioactive releases from the Portsmouth GDP. On November 20, 2020, the Walburn Plaintiffs filed an amended complaint to add two individuals to the complaint as defendants in their individual capacity. One of those individuals is Daniel Poneman, Centrus’ Chief Executive Officer. In the 78-page complaint, Mr. Poneman is referenced only twice, without any cited allegations against him; once in the caption and once referencing his position at the Company. The Company has notified its insurance carrier regarding the claim. On February 11, 2021, the Walburn Plaintiffs amended their complaint for a second time to replace two corporate defendants with two others (one of whom was a contractor to Enrichment Corp. and also to its predecessor prior to its privatization in 1998 and the other a former DOE contractor) and removed four named individual defendants from the complaint. On March 2, 2021, Walburn Defendants filed their motion to dismiss. The Company believes that its operations at the Portsmouth GDP site were fully in compliance with the Nuclear Regulatory Commission’s regulations. Further, the Company believes that any such liability should be indemnified under the Price-Anderson Act. The Company and Enrichment Corp. have provided notifications to DOE required to invoke indemnification under the Price-Anderson Act and other contractual provisions. Centrus is subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. While the outcome of these claims cannot be predicted with certainty, other than the above, Centrus does not believe that the outcome of any of these legal matters, individually and in the aggregate, will have a material adverse effect on its cash flows, results of operations or consolidated financial condition. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Segment Information | SEGMENT INFORMATION Gross profit is the Company’s measure for segment reporting. There were no intersegment sales in the periods presented. Refer to Note 2, Revenue and Contracts with Customers, for additional details on revenue for each segment. The following table presents the Company’s segment information (in millions): Three Months Ended March 31, 2021 2020 Revenue LEU segment: Separative work units $ 38.1 $ 30.7 Uranium — — Total 38.1 30.7 Technical solutions segment 17.5 14.3 Total revenue $ 55.6 $ 45.0 Segment Gross Profit (Loss) LEU segment $ 12.7 $ 17.4 Technical solutions segment (1.0) 2.2 Gross profit $ 11.7 $ 19.6 Revenue from Major Customers (10% or More of Total Revenue) In the three months ended March 31, 2021, two customers in the LEU segment represented $28.5 million and $9.5 million, respectively, of revenue and one customer in the technical solutions segment represented $15.6 million of revenue. |
Revenue and Contracts with Cu_2
Revenue and Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Geographic Areas | The following table presents revenue from separative work units (“SWU”) and uranium sales disaggregated by geographical region based on the billing addresses of customers (in millions): Three Months Ended March 31, 2021 2020 United States $ 9.6 $ 7.3 Foreign 28.5 23.4 Revenue - SWU and uranium $ 38.1 $ 30.7 |
Contract with Customer, Asset and Liability | March 31, December 31, 2020 Year-To-Date Change Accrued loss on HALEU Contract: Current - Accounts payable and accrued liabilities $ 5.7 $ 7.0 $ (1.3) Noncurrent - Other long-term liabilities $ — $ 0.7 $ (0.7) Deferred revenue - current $ 253.5 $ 281.7 $ (28.2) Advances from customers - current $ 2.0 $ 1.5 $ 0.5 Advances from customers - noncurrent $ 44.4 $ 45.2 $ (0.8) |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table summarizes the Company’s cash, cash equivalents and restricted cash as presented on the unaudited condensed consolidated balance sheet to amounts on the unaudited condensed consolidated statement of cash flows (in millions): March 31, March 31, 2020 Cash and cash equivalents $ 163.3 $ 109.2 Deposits for financial assurance - current 0.2 0.2 Deposits for financial assurance - noncurrent 5.7 5.7 Total cash, cash equivalents and restricted cash $ 169.2 $ 115.1 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory, Net [Abstract] | |
Schedule of Inventories | Components of inventories are as follows (in millions): March 31, 2021 December 31, 2020 Current Current Inventories, Net Current Current Inventories, Net Separative work units $ 14.8 $ 0.1 $ 14.7 $ 17.0 $ 4.6 $ 12.4 Uranium 68.7 13.2 55.5 47.8 0.3 47.5 Total $ 83.5 $ 13.3 $ 70.2 $ 64.8 $ 4.9 $ 59.9 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Excess Reorganization Value [Table Text Block] | Intangible asset balances are as follows (in millions): March 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Amount Gross Carrying Amount Accumulated Amortization Net Amount Sales order book $ 54.6 $ 33.0 $ 21.6 $ 54.6 $ 32.0 $ 22.6 Customer relationships 68.9 29.8 39.1 68.9 28.7 40.2 Total $ 123.5 $ 62.8 $ 60.7 $ 123.5 $ 60.7 $ 62.8 |
Debt Schedule of Debt (Tables)
Debt Schedule of Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | A summary of debt is as follows (in millions): March 31, 2021 December 31, 2020 Maturity Current Long-Term Current Long-Term 8.25% Notes: Feb. 2027 Principal $ — $ 74.3 $ — $ 74.3 Interest 6.1 30.6 6.1 33.7 Total $ 6.1 $ 104.9 $ 6.1 $ 108.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Recorded at Fair Value | Financial Instruments Recorded at Fair Value (in millions): March 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 163.3 $ — $ — $ 163.3 $ 152.0 $ — $ — $ 152.0 Deferred compensation asset (a) 2.5 — — 2.5 2.4 — — 2.4 Liabilities: Deferred compensation obligation (a) $ 2.4 $ — $ — $ 2.4 $ 2.3 $ — $ — $ 2.3 |
Pension and Postretirement He_2
Pension and Postretirement Health and Life Benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic benefit (credits) for the defined benefit pension plans were as follows (in millions): Three Months Ended March 31, 2021 2020 Service costs $ 0.8 $ 0.9 Interest costs 4.5 6.1 Amortization of prior service costs (credits), net (0.1) (0.1) Expected return on plan assets (gains) (9.6) (9.4) Net periodic benefit (credits) $ (4.4) $ (2.5) The components of net periodic benefit costs for the postretirement health and life benefit plans were as follows (in millions): Three Months Ended March 31, 2021 2020 Interest costs $ 0.9 $ 1.2 Net periodic benefit costs $ 0.9 $ 1.2 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Share | Three Months Ended March 31, 2021 2020 Numerator (in millions): Net income (loss) $ 5.1 $ 11.3 Less: Preferred stock dividends - undeclared and cumulative 0.7 2.0 Less: Distributed earnings allocable to retired preferred shares 6.6 — Net income (loss) allocable to common stockholders $ (2.2) 9.3 Denominator (in thousands): Average common shares outstanding - basic 12,818 9,619 Potentially dilutive shares related to stock options and restricted stock units (a) — 220 Average common shares outstanding - diluted 12,818 9,839 Net income (loss) per share (in dollars): Basic $ (0.17) $ 0.97 Diluted $ (0.17) $ 0.95 (a) Common stock equivalents excluded from the diluted calculation as a result of a net loss in the period (in thousands) 378 — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | |
Revenue from External Customers by Geographic Areas | The following table presents revenue from separative work units (“SWU”) and uranium sales disaggregated by geographical region based on the billing addresses of customers (in millions): Three Months Ended March 31, 2021 2020 United States $ 9.6 $ 7.3 Foreign 28.5 23.4 Revenue - SWU and uranium $ 38.1 $ 30.7 |
Segment Reporting Information | The following table presents the Company’s segment information (in millions): Three Months Ended March 31, 2021 2020 Revenue LEU segment: Separative work units $ 38.1 $ 30.7 Uranium — — Total 38.1 30.7 Technical solutions segment 17.5 14.3 Total revenue $ 55.6 $ 45.0 Segment Gross Profit (Loss) LEU segment $ 12.7 $ 17.4 Technical solutions segment (1.0) 2.2 Gross profit $ 11.7 $ 19.6 |
Revenue and Contracts with Cu_3
Revenue and Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred revenue, revenue recognized | $ 28.5 | $ 0 | ||
Government cost obligation | 102.8 | |||
Loss on contracts | $ (3.5) | |||
Accounts receivable, net | 15.5 | $ 29.6 | ||
Revenue, remaining performance obligation, amount | 989 | 960 | ||
Minimum [Member] | ||||
Company cost share portion | $ 18.3 | |||
Maximum [Member] | ||||
Government cost share portion | 115 | |||
Government [Member] | ||||
Provision for Loss on Contracts | 5.7 | $ 7 | ||
Proceeds from Customers | $ 69.6 |
Revenue and Contracts with Cu_4
Revenue and Contracts with Customers (Revenue from External Customers by Geographic Areas) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | $ 55.6 | $ 45 |
Product [Member] | ||
Revenue | 38.1 | 30.7 |
Product [Member] | United States | ||
Revenue | 9.6 | 7.3 |
Product [Member] | Other Foreign | ||
Revenue | $ 28.5 | $ 23.4 |
Revenue and Contracts with Cu_5
Revenue and Contracts with Customers (Contract with Customer Asset and Liability) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Deferred costs associated with deferred revenue | $ 136 | $ 151.9 | |
Provision for Loss on Contract Change | (1.3) | ||
Provision for Loss on Contract Noncurrent Change | (0.7) | ||
Loss on contracts | $ 3.5 | ||
Deferred revenue | 253.5 | 281.7 | |
Deferred revenue – change | (28.2) | ||
Advances from customers, current | 2 | 1.5 | |
Customer advances – change | 0.5 | ||
Advances from customer, noncurrent | 44.4 | 45.2 | |
Advances from customers, noncurrent - change | (0.8) | ||
Deferred revenue, revenue recognized | (28.5) | 0 | |
Provision for Loss on Contracts Total | 5.7 | ||
Provision for Loss on Contracts Utilized | 2 | $ 3 | |
Government [Member] | |||
Provision for Loss on Contracts | 5.7 | 7 | |
Provision for loss on contracts, noncurrent | $ 0 | $ 0.7 |
Revenue and Contracts with Cu_6
Revenue and Contracts with Customers Revenue and Contracts with Customers (Schedule of Accounts Receivable) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed accounts receivable | $ 6.8 | $ 23 |
Unbilled contract revenue | 8.7 | 6.6 |
Accounts receivable, net | $ 15.5 | $ 29.6 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Schedule of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | $ 163.3 | $ 152 | $ 109.2 | ||
Restricted cash included in other current assets | 0.2 | 0.2 | |||
Restricted cash included in other long-term assets | 5.7 | 5.7 | |||
Total cash, cash equivalents and restricted cash | $ 169.2 | $ 157.9 | $ 115.1 | $ 136.6 | $ 115.1 |
Cash, Cash Equivalents and Re_4
Cash, Cash Equivalents and Restricted Cash (Schedule of Restricted Cash) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash included in other current assets | $ 0.2 | $ 0.2 |
Restricted cash included in other long-term assets | $ 5.7 | $ 5.7 |
Cash, Cash Equivalents and Re_5
Cash, Cash Equivalents and Restricted Cash (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 31, 2020 |
Restricted cash included in other current assets | $ 0.2 | $ 0.2 |
Restricted cash included in other long-term assets | $ 5.7 | $ 5.7 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventories) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Separative work units inventory | $ 14.8 | $ 17 |
Uranium inventory | 68.7 | 47.8 |
Inventories | 83.5 | 64.8 |
Separative work units owed to customers and suppliers | 0.1 | 4.6 |
Uranium owed to customers and suppliers | 13.2 | 0.3 |
Inventories owed to customers and suppliers | 13.3 | 4.9 |
Separative work units net of liability | 14.7 | 12.4 |
Uranium inventory net of liability | 55.5 | 47.5 |
Inventories, net | $ 70.2 | $ 59.9 |
Schedule of Intangible Assets (
Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 123.5 | $ 123.5 |
Accumulated intangible asset amortization | (62.8) | (60.7) |
Amortizable intangible assets, net | $ 60.7 | 62.8 |
Average useful life of finite-lived intangible assets | 15 years | |
Contract-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | $ 54.6 | 54.6 |
Accumulated intangible asset amortization | (33) | (32) |
Amortizable intangible assets, net | 21.6 | 22.6 |
Customer-Related Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable intangible assets, gross | 68.9 | 68.9 |
Accumulated intangible asset amortization | (29.8) | (28.7) |
Amortizable intangible assets, net | $ 39.1 | $ 40.2 |
Schedule of Debt (Details)
Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 104.9 | $ 108 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, face amount | 74.3 | 74.3 |
Long-term debt, interest | 30.6 | 33.7 |
Long-term debt, current | 6.1 | $ 6.1 |
Long-term debt | $ 104.9 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred stock, liquidation preference per share | $ 1,291.04 | |
Senior Notes [Member] | ||
Debt instrument interest rate | 8.25% | |
Long-term debt, face amount | $ 74.3 | $ 74.3 |
Long-term debt, current | $ 6.1 | $ 6.1 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Recorded at Fair Value) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Cash and cash equivalents | $ 163.3 | $ 152 | |
Cash and cash equivalents | 163.3 | 152 | $ 109.2 |
Deferred compensation asset | 2.5 | 2.4 | |
Deferred compensation obligation | 2.4 | 2.3 | |
Level 1 [Member] | |||
Cash and cash equivalents | 152 | ||
Deferred compensation asset | 2.5 | 2.4 | |
Deferred compensation obligation | $ 2.4 | $ 2.3 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Senior Notes [Member] - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt, long-term and short-term, combined carrying value | $ 111 | $ 114.1 |
Long-term debt, current | 6.1 | 6.1 |
Long-term debt, fair value | 73.9 | 68.6 |
Long-term debt, face amount | $ 74.3 | $ 74.3 |
Pension and Postretirement He_3
Pension and Postretirement Health and Life Benefits (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pension Plan, Defined Benefit [Member] | ||
Service costs | $ 0.8 | $ 0.9 |
Interest costs | 4.5 | 6.1 |
Amortization of prior service costs (credits), net | (0.1) | (0.1) |
Expected return on plan assets (gains) | (9.6) | (9.4) |
Net periodic benefit cost (credit) | (4.4) | (2.5) |
Postretirement Health and Life Benefits Plans [Member] | ||
Interest costs | 0.9 | 1.2 |
Net periodic benefit cost (credit) | $ 0.9 | $ 1.2 |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Preferred Stock, Par Value Per Share | $ 1 | $ 1 | |
Exercise price of warrant | $ 21.62 | ||
Exchange of preferred stock for common stock and common stock warrant | $ (100,000) | ||
Preferred Stock, Liquidation Preference Per Share | $ 1,291.04 | ||
Other Preferred Stock Dividends and Adjustments | $ 6,600,000 | $ 0 | |
Interest expense | $ 0 | $ 100,000 | |
Common Stock [Member] | |||
Debt Instrument [Line Items] | |||
Conversion of Stock, Shares Converted | 231,276 | ||
Preferred Stock [Member] | |||
Debt Instrument [Line Items] | |||
Conversion of Stock, Shares Converted | 3,873 | ||
Exchange of preferred stock for common stock and common stock warrant | $ 7,500,000 | ||
Warrant [Member] | |||
Debt Instrument [Line Items] | |||
Conversion of Stock, Shares Converted | 250,000 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Per Share Calculation [Line Items] | ||
Net income (loss) | $ 5.1 | $ 11.3 |
Preferred stock dividends, undeclared and cumulative | 0.7 | 2 |
Distributed earnings allocable to retired preferred shares | 6.6 | 0 |
Net income (loss) allocable to common stockholders | $ (2.2) | $ 9.3 |
Average number of shares outstanding, basic | 12,818 | 9,619 |
Potentially dilutive shares related to stock options | 0 | 220 |
Average number of shares outstanding, diluted | 12,818 | 9,839 |
Net income (loss) per common share - basic | $ (0.17) | $ 0.97 |
Net income (loss) per common share - diluted | $ (0.17) | $ 0.95 |
Antidilutive securities excluded from computation of earnings per share | 378 | 0 |
Stockholders' Equity (Tables) (
Stockholders' Equity (Tables) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Stock issued during period | $ 23.8 | |
Preferred Series B [Member] | ||
Class of Stock [Line Items] | ||
Conversion of Stock, Shares Converted | 3,873 | |
Preferred Stock, Shares Issued | 37,847 | 41,720 |
Common Class A [Member] | ||
Class of Stock [Line Items] | ||
Conversion of Stock, Shares Converted | 231,276 | |
Stock Issued During Period, Shares, New Issues | 1,092,113 | |
Common Stock, Shares, Issued | 12,764,578 | 11,390,189 |
Common Class B [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Shares, Issued | 719,200 | 719,200 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Par Value Per Share | $ 1 | $ 1 |
Preferred Stock, Liquidation Preference Per Share | 1,291.04 | |
Common Stock, Par or Stated Value Per Share | $ 0.10 | |
Stock Issued During Period, Value, Gross | $ 25,200,000 | |
Stock Issued During Period, Value, Net | 24,200,000 | |
Receivable from issuance of stock | 700,000 | |
Direct Costs of Stock Issuance | $ 400,000 | |
Shares Reserved for Share Based Payment, Increase | 700,000 | |
Preferred Stock Retired, Liquidation Preference | $ 5,000,198 | |
Warrants outstanding | 250,000 | |
Exercise price of warrant | $ 21.62 | |
Reclassification of stock-based compensation liability to equity | $ 7,500,000 | |
Common Class A [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Shares Authorized | 70,000,000 | 70,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares, Issued | 12,764,578 | 11,390,189 |
Stock Issued During Period, Shares, New Issues | 1,092,113 | |
Conversion of Stock, Shares Converted | 231,276 | |
Common Class B [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares, Issued | 719,200 | 719,200 |
Preferred Series B [Member] | ||
Class of Stock [Line Items] | ||
Preferred Stock, Shares Issued | 37,847 | 41,720 |
Preferred stock | $ 100,000 | $ 100,000 |
Preferred Stock, Dividend Rate, Percentage | 7.50% | |
Conversion of Stock, Shares Converted | 3,873 | |
Preferred Stock, Liquidation Preference, Value | $ 49,600,000 | $ 53,900,000 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Claim filed, unrecorded gain contingency, | $ 43.5 | $ 42.8 |
Segment Information (Segment Re
Segment Information (Segment Reporting Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 55.6 | $ 45 |
Gross Profit | 11.7 | 19.6 |
Low Enriched Uranium Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Gross Profit | 12.7 | 17.4 |
Technical Solutions Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Gross Profit | (1) | 2.2 |
Separative Work Units [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 38.1 | 30.7 |
Uranium [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 0 |
Product [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 38.1 | 30.7 |
Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 17.5 | $ 14.3 |
Segment Information Schedule Of
Segment Information Schedule Of Entity Wide Revenue By Major Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Customer A [Member] | Low Enriched Uranium Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue | $ 28.5 | $ 23.4 |
Customer B [Member] | Low Enriched Uranium Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue | 9.5 | 7.3 |
Customer C [Member] | Technical Solutions Segment [Member] | ||
Revenue, Major Customer [Line Items] | ||
Revenue | $ 15.6 | $ 9.7 |