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| Statement |
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| Just -- Kevin just outlined, 2023 was a tremendously successful year |
| Enrichment capacity per machine is the highest for any centrifuge ever built anywhere in the world |
| I've only been on the job for a few weeks, but I'm tremendously impressed with this organization and the people who make it run |
| The good news is that momentum is building for such a solution |
| The one thing that I would highlight is that we consistently have a robust order book, sales order book of a billion dollars, and we've had that trending at that number for multiple years |
| So we're very proud of what we did in the past year as it relents to that pension annuitization |
| So margins have been favorable based upon where market conditions are in the current year and also on the market commodity pricing curve that currently exists that reflects those higher pricing mechanisms as well |
| I'm impressed not only by the cascade and the workers who built it but also by the enormous potential of the facility |
| We did it ahead of schedule and under budget, demonstrating not only the effectiveness of our technology, but also our excellence in project management |
| Our strong cash position not only enables us to manage our obligations and make strategic investments in our future, but it also generated $8.7 million worth of interest income for the year |
| The market urgently needs a new American producer to expand the diversity and security of supply and we are the best position company to fill that role |
| This was largely offset by our technical solution segment where we achieved a $19.7 million improvement in gross profit compared to 2022 |
| It is an incredible technical achievement |
| What our Pyrton team has accomplished is remarkable |
| Our revenue growth was driven by a 14% increase in our LEU business segment, driven by larger sales volume of both, SWU and uranium |
| And we ended the year with an unrestricted cash balance of close to $201.2 million, putting us in a strong position going forward |
| We start from a position of strength, coming off of an outstanding year for the company |
| We are well positioned to compete for that work as the only U.S |
| For the full year 2023, our revenue, net income, and cash balance are up significantly from a year ago |
| All I can say is we've performed that in the contract very well |
| But congratulations on a really strong year |
| We delivered $84.4 million in annual profits, a 66% increase from 2022 |
| We are proud to be in position to support these vital missions and deliver real value to taxpayers |
| In 2023, Centres achieved $320.2 million in revenue, the highest in eight years |
| And as you noted, I mean, and Amir earlier, as we contract with customers, we do get favorable conditions based upon where market prices are today |
| Our LEU business generated $269 million in revenue in 2023, an increase of $33.4 million compared to the prior year, mainly driven by higher sales volumes for both SWU and Uranium |
| In late 2023, we also took an important step to strengthen and de-risk our balance sheet by purchasing an annuity contract to transfer $186.5 million in pension obligations for about 1400 of our retirees to an insurance company who will pay the retirees in full |
| We were in a unique position based upon the markets that we have been evaluating in the third part of last year, the third quarter of last year, to be in a position to get favorable terms for a portion of our pension benefit community |
| Centrus had an exceptional fourth quarter in 2023, but I'm going to focus my comments on the full-year numbers, which we believe are most meaningful given the variability in quarter-to-quarter revenue recognition |
| technology and richer in the marketplace, especially since we could offer the fastest pathway to large-scale HALEU production |
| Statement |
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| Company-wide, our gross profit was $112.1 million, only slightly down from $117.9 million in the prior year |
| But they really did not, they had some supply chain challenges that created difficulties for the deal we could secure in these 5B cylinders |
| They have provided a few cylinders for us to get started with production and they have ordered more, but the Department has experienced supply chain delays |
| During the period when the 5Bs are insufficient, the company will not be able to produce the halos that we're discussing here |
| It put America's energy security at risk |
| We anticipate that the delay in obtaining these cylinders is really temporarily |
| That means that our gross margins in 2023 were down slightly from 2022 but were still profitable at 39% |
| I can't remember if it was 2023, 2024, 2025, and that therefore there would be some kind of natural decline in margins, but it hasn't really shown up |
| It also left a gaping hole in our defence supply chain since the country no longer has the ability to enrich uranium for national security missions |
| As the United States looks to transition away from imported nuclear fuels and bolster energy security, our country and our industry have never needed us more |
| And now that Centres has proven enrichment operation in Pyrton, our potential to meet these growing needs has never been greater |
| Like any important worthwhile endeavor it will not be easy |
| It was a gradual erosion that unfolded over decades |
| But as mentioned earlier, we will no longer be able to achieve the nine hundred kilograms |
| In my view, it was a tragic mistake for our country to have abandoned uranium enrichment, effectively feeding its leadership position to Russia |
| It limited our global influence |
| Joseph Reagor So in the fourth quarter, you guys had some of this, the lumpy uranium sales, right? And historically, the expectation on those would be that they'd be very low margin |
| Our net defined benefit pension liability at year end was $17.3 million down from $43.6 million a year ago |
| It's a temporary issue |
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