2020 Summary:
Financial Highlights
- Net income of
$54.4 million in 2020 or$0.57 per share (diluted) - Adjusted net income per share of
$4.71 (diluted) (see non-GAAP reconciliation table below) - Total revenues of
$247.2 million , including LEU segment revenue of$190.5 million - Year-end cash balance of
$152.0 million - Raised
$25 million , before expenses, through an underwritten public offering of Class A Common Stock - Completed cash tender offer to retire approximately
$60 million of Series B Senior Preferred Stock at a 25-percent discount - Completed a
$30.4 million pension plan annuitization
Commercial Highlights
- New LEU sales commitments valued over
$100 million from November through the end of January - Secured sufficient import quotas in extension of the Russian Suspension Agreement, providing affordable supply to
U.S. customers through 2028 - License amendment application to produce High-Assay, Low-Enriched Uranium (HALEU) accepted by the NRC for formal review
"Despite the unprecedented health crisis posed by COVID-19, with a large portion of our staff shifting to telework,
Financial Results
For the full year, the Company reported net income of
Revenue from the LEU segment increased
Cost of sales for the LEU segment decreased
Revenue from the technical solutions segment increased
Cost of sales for the technical solutions segment decreased
Selling, General and Administrative
Selling, general and administrative expenses increased
Nonoperating Components of Net Periodic Benefit Expense (Income)
Nonoperating components of net periodic benefit expense (income) netted to income of
In both 2020 and 2019, the net gains reflect favorable investment returns relative to the expected return assumption, changes in mortality and healthcare claim assumptions, and favorable claims experience. Gains were partially offset by declines in market interest rates, which increases the present value calculation for outstanding pension liabilities.
The Company transferred approximately
Conference Call
About
With world-class technical capabilities,
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. In this context, forward-looking statements mean statements related to future events, may address our expected future business and financial performance, and often contain words such as "expects", "anticipates", "intends", "plans", "believes", "will", "should", "could", "would" or "may" and other words of similar meaning. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For
Contacts:
Investors:
Media:
ADJUSTED NET INCOME PER SHARE RECONCILIATION TABLE
The Company measures Net Income per Share both on a GAAP basis and adjusted to exclude deemed dividends allocable to retired preferred stock shares ("Adjusted Net Income per Share"). We believe Adjusted Net Income per Share, a non-GAAP financial measure, provides investors with additional understanding of the Company's financial performance and period-to-period comparability.
On
The aggregate purchase price of approximately
Below we present Net Income Per Share and Adjusted Net Income per Share. The non-GAAP financial measure is used in addition to and in conjunction with results presented in accordance with our GAAP results. The non-GAAP financial measure should be viewed in addition to, and not as a substitute for, or superior to, the financial measure calculated in accordance with GAAP. The non-GAAP financial measure used by the Company may be calculated differently from, and therefore may not be comparable to, non-GAAP financial measures used by other companies.
Three Months Ended |
Year Ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
Numerator (in millions): |
|||||||||||||||
Net income (loss) |
$ |
16.4 |
$ |
(2.8) |
$ |
54.4 |
$ |
(16.5) |
|||||||
Preferred stock dividends - undeclared and cumulative |
0.8 |
1.9 |
6.7 |
7.8 |
|||||||||||
Distributed earnings allocable to retired preferred shares |
41.9 |
— |
41.9 |
— |
|||||||||||
Net income (loss) allocable to common stockholders |
$ |
(26.3) |
$ |
(4.7) |
$ |
5.8 |
$ |
(24.3) |
|||||||
Adjusted net income (loss), including distributed earnings |
$ |
15.6 |
$ |
(4.7) |
$ |
47.7 |
$ |
(24.3) |
|||||||
Denominator (in thousands): |
|||||||||||||||
Average common shares outstanding - basic |
10,322 |
9,583 |
9,825 |
9,566 |
|||||||||||
Average common shares outstanding - diluted (a) |
10,322 |
9,583 |
10,123 |
9,566 |
|||||||||||
Net Income (Loss) per Share (in dollars): |
|||||||||||||||
Basic |
$ |
(2.55) |
$ |
(0.49) |
$ |
0.59 |
$ |
(2.54) |
|||||||
Diluted |
$ |
(2.55) |
$ |
(0.49) |
$ |
0.57 |
$ |
(2.54) |
|||||||
Adjusted Net Income (Loss) per Share (Non-GAAP) (in dollars): |
|||||||||||||||
Basic |
$ |
1.51 |
$ |
(0.49) |
$ |
4.85 |
$ |
(2.54) |
|||||||
Diluted |
$ |
1.46 |
$ |
(0.49) |
$ |
4.71 |
$ |
(2.54) |
|||||||
(a) For purposes of Adjusted Net Income (Loss) per Share for the three months ended |
|
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
|||||||||||||||
(Unaudited; in millions, except share and per share data) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
Revenue: |
|||||||||||||||
Separative work units |
$ |
62.1 |
$ |
36.3 |
$ |
151.5 |
$ |
123.7 |
|||||||
Uranium |
15.6 |
7.6 |
39.0 |
45.7 |
|||||||||||
Technical solutions |
15.2 |
11.8 |
56.7 |
40.3 |
|||||||||||
Total revenue |
92.9 |
55.7 |
247.2 |
209.7 |
|||||||||||
Cost of Sales: |
|||||||||||||||
Separative work units and uranium |
40.9 |
18.2 |
92.7 |
118.6 |
|||||||||||
Technical solutions |
17.0 |
30.7 |
56.9 |
58.6 |
|||||||||||
Total cost of sales |
57.9 |
48.9 |
149.6 |
177.2 |
|||||||||||
Gross profit |
35.0 |
6.8 |
97.6 |
32.5 |
|||||||||||
Advanced technology costs |
1.0 |
1.6 |
2.8 |
14.6 |
|||||||||||
Selling, general and administrative |
10.4 |
9.2 |
36.0 |
33.7 |
|||||||||||
Amortization of intangible assets |
2.5 |
2.4 |
6.8 |
6.5 |
|||||||||||
Special charges (credits) for workforce reductions |
0.1 |
0.3 |
0.6 |
(1.9) |
|||||||||||
Other (income) expense, net |
0.4 |
— |
0.4 |
(0.7) |
|||||||||||
Operating income (loss) |
20.6 |
(6.7) |
51.0 |
(19.7) |
|||||||||||
Nonoperating components of net periodic benefit expense (income) |
5.0 |
(4.1) |
(1.6) |
(4.3) |
|||||||||||
Interest expense |
— |
0.1 |
0.1 |
3.0 |
|||||||||||
Investment income |
— |
(0.3) |
(0.5) |
(2.2) |
|||||||||||
Income (loss) before income taxes |
15.6 |
(2.4) |
53.0 |
(16.2) |
|||||||||||
Income tax expense (benefit) |
(0.8) |
0.4 |
(1.4) |
0.3 |
|||||||||||
Net income (loss) and comprehensive income (loss) |
16.4 |
(2.8) |
54.4 |
(16.5) |
|||||||||||
Preferred stock dividends - undeclared and cumulative |
0.8 |
1.9 |
6.7 |
7.8 |
|||||||||||
Distributed earnings allocable to retired shares |
41.9 |
— |
41.9 |
— |
|||||||||||
Net income (loss) allocable to common stockholders |
$ |
(26.3) |
$ |
(4.7) |
$ |
5.8 |
$ |
(24.3) |
|||||||
Net income (loss) per common share: |
|||||||||||||||
Basic |
$ |
(2.55) |
$ |
(0.49) |
$ |
0.59 |
$ |
(2.54) |
|||||||
Diluted |
$ |
(2.55) |
$ |
(0.49) |
$ |
0.57 |
$ |
(2.54) |
|||||||
Average number of common shares outstanding (in thousands): |
|||||||||||||||
Basic |
10,322 |
9,583 |
9,825 |
9,566 |
|||||||||||
Diluted |
10,322 |
9,583 |
10,123 |
9,566 |
|
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(in millions, except share and per share data) |
|||||||
|
|||||||
2020 |
2019 |
||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
152.0 |
$ |
130.7 |
|||
Accounts receivable |
29.6 |
21.1 |
|||||
Inventories |
64.8 |
64.5 |
|||||
Deferred costs associated with deferred revenue |
151.9 |
144.1 |
|||||
Other current assets |
7.8 |
9.2 |
|||||
Total current assets |
406.1 |
369.6 |
|||||
Property, plant and equipment, net |
4.9 |
3.7 |
|||||
Deposits for financial assurance |
5.7 |
5.7 |
|||||
Intangible assets, net |
62.8 |
69.5 |
|||||
Other long-term assets |
6.8 |
7.4 |
|||||
Total assets |
$ |
486.3 |
$ |
455.9 |
|||
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|||||||
Current liabilities: |
|||||||
Accounts payable and accrued liabilities |
$ |
50.6 |
$ |
50.7 |
|||
Payables under SWU purchase agreements |
21.3 |
8.1 |
|||||
Inventories owed to customers and suppliers |
4.9 |
5.6 |
|||||
Deferred revenue and advances from customers |
283.2 |
266.3 |
|||||
Current debt |
6.1 |
6.1 |
|||||
Total current liabilities |
366.1 |
336.8 |
|||||
Long-term debt |
108.0 |
114.1 |
|||||
Postretirement health and life benefit obligations |
130.8 |
138.6 |
|||||
Pension benefit liabilities |
124.4 |
141.8 |
|||||
Advances from customers |
45.2 |
29.4 |
|||||
Other long-term liabilities |
32.4 |
32.1 |
|||||
Total liabilities |
806.9 |
792.8 |
|||||
Commitments and contingencies |
|||||||
Stockholders' deficit: |
|||||||
Preferred stock, par value |
|||||||
Series A Participating Cumulative Preferred Stock, none issued |
— |
— |
|||||
Series B Senior Preferred Stock, 7.5% cumulative, 41,720 and 104,574 shares issued and outstanding |
0.1 |
4.6 |
|||||
Class A Common Stock, par value |
1.1 |
0.8 |
|||||
Class B Common Stock, par value |
0.1 |
0.1 |
|||||
Excess of capital over par value |
85.0 |
61.5 |
|||||
Accumulated deficit |
(407.7) |
(405.0) |
|||||
Accumulated other comprehensive income, net of tax |
0.8 |
1.1 |
|||||
Total stockholders' deficit |
(320.6) |
(336.9) |
|||||
Total liabilities and stockholders' deficit |
$ |
486.3 |
$ |
455.9 |
|
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in millions) |
|||||||
Year Ended December 31, |
|||||||
2020 |
2019 |
||||||
OPERATING |
|||||||
Net income (loss) |
$ |
54.4 |
$ |
(16.5) |
|||
Adjustments to reconcile net income (loss) to cash used in operating activities: |
|||||||
Depreciation and amortization |
7.3 |
7.0 |
|||||
Accrued loss on long-term contract |
(10.6) |
18.3 |
|||||
Immediate recognition of retirement benefit plans (gains) losses, net |
7.2 |
(4.0) |
|||||
PIK interest on paid-in-kind toggle notes |
— |
1.1 |
|||||
Gain on sales of assets |
— |
(0.7) |
|||||
Inventory valuation adjustments |
— |
2.3 |
|||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
(8.6) |
29.3 |
|||||
Inventories, net |
25.8 |
0.1 |
|||||
Payables under SWU purchase agreements |
13.2 |
(37.9) |
|||||
Deferred revenue and advances from customers, net of deferred costs |
9.7 |
44.0 |
|||||
Accounts payable and other liabilities |
1.5 |
(12.3) |
|||||
Pension and postretirement liabilities |
(32.7) |
(19.5) |
|||||
Other, net |
(0.1) |
0.1 |
|||||
Cash provided by operating activities |
67.1 |
11.3 |
|||||
INVESTING |
|||||||
Capital expenditures |
(1.4) |
(0.1) |
|||||
Proceeds from sales of assets |
— |
0.7 |
|||||
Cash provided by (used in) investing activities |
(1.4) |
0.6 |
|||||
FINANCING |
|||||||
Proceeds from the sale of common stock, net |
23.1 |
— |
|||||
Redemption of preferred stock, net |
(61.6) |
— |
|||||
Payment of interest classified as debt |
(6.1) |
(6.1) |
|||||
Exercise of stock options |
0.3 |
— |
|||||
Principal payments on debt |
— |
(27.5) |
|||||
Payments for deferred issuance costs |
(0.1) |
(1.4) |
|||||
Cash used in financing activities |
(44.4) |
(35.0) |
|||||
Increase (decrease) in cash, cash equivalents and restricted cash |
21.3 |
(23.1) |
|||||
Cash, cash equivalents and restricted cash, beginning of period |
136.6 |
159.7 |
|||||
Cash, cash equivalents and restricted cash, end of period |
$ |
157.9 |
$ |
136.6 |
|||
Supplemental cash flow information: |
|||||||
Interest paid in cash |
$ |
— |
$ |
1.5 |
|||
Non-cash activities: |
|||||||
Property, plant and equipment included in accounts payable and accrued liabilities |
0.3 |
— |
|||||
Deferred equity issuance costs included in accounts payable and accrued liabilities |
0.2 |
0.8 |
|||||
Disposal of right to use lease assets for early termination |
0.2 |
0.4 |
|||||
Conversion of interest payable-in-kind to debt |
— |
0.7 |
|||||
Right to use lease assets acquired under operating leases |
— |
5.2 |
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