Centrus Energy Corp. (NYSE:LEU) Q2 2022 Earnings Conference Call August 5, 2022 8:30 AM ET
Dan Leistikow – Vice President-Corporate Communications
Dan Poneman – President and Chief Executive Officer
Kevin Harrill – Controller and Chief Accounting Officer
Philip Strawbridge – Senior Vice President, Chief Financial Officer, Chief Administrative Officer and Treasurer
Conference Call Participants
Robert Brown – Lake Street Capital
Joseph Reagor – Roth Capital Partners
Greetings, and welcome to the Centrus Energy’s Second Quarter 2022 Earnings Call. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dan Leistikow, Vice President, Corporate Communications for Centrus. Thank you, Dan. You may begin.
Good morning and thank you all for joining us. Today’s call will cover the results for the second quarter of 2022 ended June 30. Today, we have Dan Poneman, President and Chief Executive Officer; and Kevin Harrill, Controller and Chief Accounting Officer; our Chief Financial Officer, Philip Strawbridge, had a scheduling conflict that prevented him from being on today’s call, but he will be available for follow-up calls next week.
Dan and Kevin will be taking questions following their prepared remarks. Before turning the call over to Dan Poneman, I’d like to welcome all of our callers as well as those listening to our webcast. This conference call follows our earnings news release issued yesterday. We expect to file our report for the second quarter of 2022 on Form 10-Q later today. All of our news releases and SEC filings, including our 10-K, 10-Qs and 8-Ks are available on our website. A replay of this call will also be available later this morning on the Centrus website.
I would like to remind everyone that certain of the information we may discuss on this call today may be considered forward-looking information that involves risk and uncertainty, including assumptions about the future performance of Centrus. Our actual results may differ materially from those in our forward-looking statements.
Additional information concerning factors that could cause actual results to materially differ from those in our forward-looking statements is contained in our filings with the SEC, including our annual report on Form 10-K and quarterly reports on Form 10-Q.
Finally, the forward-looking information provided today is trans [indiscernible] and accurate only as of today, August 5 2022, unless otherwise noted. This call is the property of Centrus Energy. Any transcription, redistribution, retransmission or rebroadcast of the call in any form without the expressed written consent of Centrus is strictly prohibited.
Thank you for your participation. And I’ll now turn the call over to Dan Poneman.
Thank you, Dan, and thank you to everyone on the call today. We are happy to report another strong and productive quarter for Centrus. The numbers speak for themselves. $99.1 million in revenue, $60.9 million in gross profit and $37.4 million in net income. We always remind listeners on these calls that a normal feature of our business is that revenues and margins vary widely from quarter-to-quarter based on the timing of deliveries, and that is the annual performance that matters most.
But I do think that it’s fair to say that these numbers are another example of the continued resilience of our business even in the face of challenges like the pandemic and the changes in the global nuclear fuel market brought about by Russia’s invasion of Ukraine.
We are continuing to deliver to fuel our customers need and the results our investors expect. I am enormously proud of our team for the work they are doing to navigate a sometimes difficult environment and to help our company grow for the long term. Along those lines, our sales team has been putting up strong numbers.
In the first two quarters of the year, we made deliveries of SWU, separate work units and Uranium totaling about $103 million, but we also secured new sales contracts and commitments worth about $135 million.
As a result, the total value of our order book has increased over the course of the year and now stands around $1 billion. As I said, the numbers can speak for themselves, but numbers alone don’t tell the whole story.
The Ukraine invasion brought energy security issues into sharp focus. And while much of the discussion has been around natural gas, Russia is much more dominant when it comes to nuclear fuel with 46% of the world’s uranium enrichment capacity. It is an indispensable supplier of low-enriched uranium for existing reactors worldwide and is currently the only source of high assay, low-enriched uranium or HALEU, the advanced reactor fuel that will…