Centrus Energy Corp. (NYSE MKT:LEU) Q4 2018 Earnings Conference Call - Final Transcript

Mar 29, 2019 • 08:30 am ET


Centrus Energy Corp. (NYSE MKT:LEU) Q4 2018 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Centrus Energy Fourth Quarter and Full Year 2018 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mr. Dan Leistikow, Vice President for Corporate Communications. Thank you. You may begin.

Dan Leistikow

Good morning. Thank you for joining us. Today's call will cover the results for the fourth quarter and full year 2018 ended December 31. Here today for the call are Dan Poneman, President and Chief Executive Officer; Marian Davis, Senior Vice President, Chief Financial Officer and Treasurer; John Dorrian, Controller and Chief Accounting Officer.

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 afternoon. We expect to file our Annual Report on Form 10-K on Monday. 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'd 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 our quarterly reports on Form 10-Q.

Finally, the forward-looking information provided today is time-sensitive and accurate only as of today, March 29, 2019, 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 express written consent of Centrus is strictly prohibited.

Thank you for your participation. And I will now turn the call over to Dan Poneman.

Daniel Poneman

Thank you, Dan, and thank you to everyone on the call today. When I joined the Company four years ago, we knew that the road ahead would not be easy. First, we would have to ride out of vastly oversupplied enrichment market with prices in free fall. Second, all of our competitors were state-owned enterprises with the political and financial backing to show for. Achieving our goals to resume production of enriched uranium and return to profitability would take years of hard work and require making some tough choices. We would have to get smaller before we could get bigger. To weather these challenges and to set ourselves up to capitalize in the market, ultimately we apparently took a number of steps. We cut our overhead by 16% from its peak in 2016 and restructured and reduced our debt by 69%. We hustled to bring in