Thursday, May 12, 2016
Thanks Mikel, and thank you all for being here.
Let me say at the outset that I am grateful for our shareholder support, and extremely proud of what our team has accomplished in the past year.
We are making solid progress not only in terms of our financial goals, but also in advancing our long-term business plan for growth.
Last year, we met our guidance for nuclear fuel revenues, came very close on total revenues and exceeded the guidance for cash – ending the year with $234 million in cash. We are taking steps to reduce our overhead – including saving substantially on rent for our headquarters – and we are on track to meet our annual guidance for this year as well.
But the numbers alone only tell one part of the story. With a new leadership team and a new business model, we are executing our game plan for long-term success.
Our strategy rests on three pillars:
In December, we successfully completed a revised Russian Supply Agreement that gives us more flexibility in the contract and also extends our source of supply through 2026 and beyond.
And in March, we announced several new sales contracts signed over the previous 9 months. These are long-term contracts valued at approximately $165 million with deliveries through 2022.
We have made progress here as well. We have signed MOUs with two industry leaders in other segments of the fuel cycle – Kazatomprom and ConverDyn – that will allow us to explore new, joint sales opportunities in global marketplace for nuclear fuel.
Earlier this year, we signed a $32.5 million contract to continue advancing our centrifuge technology at our state-of-the-art facilities in Oak Ridge, Tennessee. The U.S. Department of Energy has said that this technology is the “most technically advanced and lowest risk option” for restoring America’s domestic enrichment capability for national security purposes.
More broadly, by diversifying and growing our nuclear fuel supply business, we’re strengthening our company for the future. When the market for enrichment recovers in the years ahead and the need arises for new production capacity, we want to be well positioned to meet that need.
When I first joined the company over a year ago, I knew that the task before us would not be easy. The things that truly matter in life seldom are.
And the fact is, our success does matter – it matters to our investors, to our employees and to their families … but also to our country. It is important that US companies based right here in America continue the tradition of nuclear leadership in peaceful nuclear commerce that goes back over 60 years, to President Eisenhower’s Atoms for Peace speech of December 1953. It is about national security, energy security, clean energy, climate change, and the highest standards of integrity, safety, and nonproliferation. That is the commitment that animates all of us here at Centrus each day.
And whether I’m in Bethesda or Piketon or Paducah or Oak Ridge, I see it in the eyes and in the actions and in the questions of every one of our employees – some of whom come from families who have served the nation’s enrichment enterprise for generations. I’m confident that with their help, and through their hard work, we can write the next great chapter in the proud history of our company. They know what we all know, that we are engaged in important and challenging work that truly matters to the kind of world we will leave to our children and our grandchildren. So we will work hard to grow and diversify our company, restore America’s domestic enrichment capability, and help support the continued expansion of safe, affordable, carbon-free nuclear energy around the world.