Greetings and welcome to the Centrus Energy Corporation Second Quarter 2018 Quarterly 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, Don Hatcher, Director of Investor Relations. Thank you, Mr. Hatcher, you may begin.

Thank you, Delvin. Good morning and thank you for joining us. Today's call will cover the results for the second quarter of 2018 that ended June 30. Here today for the call are Dan Poneman, President and Chief Executive Officer; Marian Davis, Senior Vice President, Chief Financial Officer and Treasurer; and John Dorrian, Controller and Chief Accounting Officer. Before turning the call over to Dan, I'd like to welcome all our callers as well as those listening to our webcast. This conference call follows earnings news release issued yesterday afternoon. We expect to file our quarterly report on Form 10-Q this afternoon. 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 that we may discuss on this call today may be considered forward-looking information that involve 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, August 09, 2018 unless otherwise noted. This call is the property of Centrus Energy. Any transcription, redistribution, retransmission or rebroadcast of this call in any form without the express written consent of Centrus is strictly prohibited. Thank you for your participation. And now, I'll turn the call over to Dan Poneman.

Thank you, Don, and thank you to everyone listening today. This has been a tough period for the nuclear industry and that has reflected in our quarterly results. As everyone said, we've made progress in a number of important areas in ways that we're bear fruit in the future and support of our efforts to grow and expand our business. We generated $39.4 million in revenue this quarter and are on track to our annual guidance with revenues and end of your cash balance. We are reiterating that guidance today. We expect on behalf of our 2018 revenues in the fourth quarter. As we’ve discussed on prior calls, our order book consists almost entirely at long-term contracts with deliveries in multiple years. Some of those contracts were signed several years ago and prices were considerably higher, while other contracts that presents we have won more recently. Because the delivery we made during the second quarter can disproportionately from newer old price contract, we post at the gross loss at the quarter. It also important to note that lower market prices also drive down the cost obtaining our supply, because cost of sale per unit are calculated based on a rolling average of our diverse mix of primary and secondary suppliers that reduction and supply cost did not show up in our bottom line either way. But beginning in 2019 and over the next few years, we expect to realize reductions in our supply costs. While the overall nuclear fuel market its still over supplied and facing significant pressure here in the U.S. and abroad, our sales team has been working hard for every opportunity in the market and we are capturing many of these opportunities. When I came to Centrus three years ago, I promised to realign our focus on…

Thank you, Dan, and good morning to everyone on the call. For the quarter our revenues were $39.4 million, a slight decrease from the second quarter of 2017. For the six months our revenues were $75.1 million, an increase of $23.9 million compared to the same period in 2017. We expect nearly half of our revenues for the year will be generated in the fourth quarter. As we regularly remind listeners on the call, our revenues tend to vary significantly from quarter-to-quarter based on the timing of when we make our deliveries and the prices under those particular contract. With most customers sign to multi-year contract with annual purchase commitment, we recommend investors focus on our annual guidance rather than on any one quarter. We had a growth loss of $10.7 million this quarter, an increase loss of $6 million over the same period in 2017. This quarter’s result reflect the transition and pricing seen in recent years in the nuclear fuel market, where market prices for SWU and uranium has declined significantly leading to lower prices in our new sales contract. While we expect our cost of supply to show similar reductions in the future as these lower market prices influence the purchase prices in our supply contract, we are currently working through a transition period, where newer sales contracts are being filled with inventory across that reflect prior average purchase cost that are higher than current market pricing. We expect that situation to improve over the rest of the year and into 2019, but for now we're dealing with the effect of these costs and the lowering average of our inventory cost. We noted in the earnings release yesterday that we have signed a new contract with a customer that is going through a Chapter 11 proceeding. This…

Thank you, Marian. I will conclude our remarks by noting that while the industry continue to face challenges on many front. We're working hard to this incentives to capitalize on the opportunities being created by these challenges. Whether we're providing a liable fuel supply to existing [indiscernible] customers, developing the fuel supply for the next generation reactor technologies or supporting the national security needs to the United States. We are excited about work we are doing and expect to see new pathway to growth development in the coming year. Thank you for your support of our mission and our efforts to ensure the United States continues to be a leader in this industry. Operator, we’re happy to take any questions at this time.

Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] There appear to be no questions at this time. I’d like to turn the floor back over to management for closing comments.

Since there are no questions at this time, this will conclude Centrus' second quarter 2018 investor call. I want to extend a thank you to all our listeners and we look forward to speaking with you again in the future.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.