Don Hatcher - Director, Investor Relations Dan Poneman - President and Chief Executive Officer Steve Greene - Senior Vice President, Chief Financial Officer and Treasurer John Dorrian - Controller and Chief Accounting Officer

Greetings and welcome to the Centrus Energy Fourth Quarter 2016 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Don Hatcher, Director of Investor Relations for Centrus Energy. Thank you. You may begin.

Thank you, Melissa. Good morning and thank you for joining us. Today’s call will cover the fourth quarter and full year results for 2016 that ended December 31. Here today for the call are Dan Poneman, President and Chief Executive Officer, Steve Greene, Senior Vice President, Chief Financial Officer and Treasurer and John Dorrian, Controller and Chief Accounting Officer. Before turning the call over to Dan, I would like to welcome all 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 tomorrow. 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 will be available later this morning on the Centrus website. I would like to remind everyone that certain of the information that 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 time-sensitive and is accurate only as of today, March 29, 2017, unless otherwise noted. This call is the property of Centrus Energy. Any redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Centrus is strictly prohibited. Thank you for your participation and I will now turn the call over to Dan Poneman.

Thank you, Don and thank you all for joining us. 2016 was a very productive year for Centrus. I think we will look back on it as the time when we made important progress on our strategic initiatives, strengthened our financial picture and put ourselves in a position to grow and succeed in the future. Let me take you through a few of the highlights. First, we achieved and in fact exceeded our guidance for the year, ending 2016 with $311.3 million in revenues and a cash balance of $260.7 million. Second, we have significantly reduced and restructured our debt load that put the company on a stronger footing moving forward. Last summer, we repurchased some of our outstanding notes. And last month, we successfully completed an exchange offer, covering most of our remaining debt, which not only reduced the principal balance, but also extended the due date from 2019 to 2027. The combined success of these two efforts has reduced the total principal amount of our debt by $143 million, a 58% reduction compared to the end of 2015. Third, we achieved a favorable resolution with the Pension Benefit Guaranty Corporation on two outstanding issues we had with respect to our contributions for legacy pension plan. Resolving those issues has been a significant priority for us over the last couple of years. In notifying us of their decision, the PBGC cited the positive results we have achieved in reducing and restructuring our long-term debt. Fourth, we secured an extension of the contract for our important work in Oakridge, Tennessee to continue advancing our centrifuge technology to meet the long-term national security needs of the United States. While the funding level is about 20% lower than it was under the previous contract, it will allow us to continue improving the…

Thank you, Dan and good morning everyone. As we noted on the call – the last call in November, we expected to generate a large portion of our revenue for the year in the fourth quarter and our expectations were borne out. We expected pattern of customer deliveries to be similar in 2017 with more two-thirds of our revenues expected in the fourth quarter. For 2016, our total revenue was $311.3 million with $272.8 million of that coming from the LEU business. Our revenue declined compared to 2015, but a large part of that difference was difference by lower uranium sales, which were a function of particular opportunities at the time. Our Contract Services segment generated revenue of $38.5 million, which reflects the reduced scope of work for the contract with Oak Ridge National Laboratory that we signed in September. The volume of SWU sales increased 2% over 2015, while the average price billed to customers declined 5%. As legacy contracts become a smaller portion of our portfolio, we will continue to see our average prices decline. However, Vista since the prices in our supply agreements include market adjustments, we anticipate that our costs will also decrease in the years ahead, allowing us to maintain gross profit to support the business despite lower revenues. As of the end of 2016, our LEU business had 1.4 billion order book, which extends more than a decade. The reduction in the order book year-over-year reflects the termination of a contract that had provisions related to the deployment of the American Centrifuge plant. We now estimate that only 5% of the order book is still at risk due to similar contract provisions. We continued to view our order book as a stable source of cash flow and liquidity for the company with contracts extending…

Thank you, Steve. Let me say in closing how proud I am of the team at Centrus and the progress that we are making in a difficult environment. We are delivering on our strategy to be the world’s most diversified supplier of nuclear fuel and a leader in fuel cycle technology. We have long-term sales and supply agreements for the next decade or more and we are committed to building on that book of business. As I reminded folks here, even when the industry faces headwinds, we have ample opportunities to expand our share of what is a multi-billion dollar global market for enriched uranium fuel. With our unique technical capabilities, long-standing customer relationships and a decade long track record of on-time deliveries, I believe we are well positioned to see the opportunity before us. So with that, we will be happy to take your questions. Thanks.

I just want to thank everyone for your participation and continued support. And this will conclude our call for today.

Thank you. This concludes today’s teleconference. You may disconnect your lines. Thank you and have a wonderful day.