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. [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.

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 a 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.

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 a vastly oversupplied enrichment market with prices in freecall. Second, all of our competitors were state-owned enterprises with a political and financial backing to show for it. 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 on the market, ultimately we took a number of steps. We cut our overhead by 16% from its peak in 2016, and restructured and reduced our debt by 59%. We hustled to bring in $100's million in new sales. We adapted to the challenges posed during eight years of falling prices by locking in low cost supply for the long-term, and by diversifying into new business lines that laid a broader and stronger foundation to build our Company. As we continue to execute this game plan, we met all our guidance for 2018 with $193 million in total revenue, $164.4 million in separative work units and uranium revenue, and a cash balance of $123.1 million at year-end. At the same time, we've always known that there would be some difficult years, and 2018 was one of them. A greater proportion of our sale in 2018 were made under newer contracts signed when market prices had fallen substantially from earlier levels, both because of the natural evolution of our order book, and because of the specific deliveries made during the year. On the other hand, our cost of sales in…

Thank you, Dan, and good morning to everyone on the call. As Dan highlighted at the start, we met our annual guidance this year based on a strategy of winning new business and growing into new markets. While our bottom line reflects the harsh realities of the transition to lower prices in the low enriched uranium market, the cost of winding down our demonstration cascade activities in Piketon, and the immediate accounting of expenses for retiree benefits, we expect improved results starting in 2019 and a return to profitability in 2020, as our purchase cost decrease and our expenses for advanced technology licensing and decommissioning are substantially reduced. For the fourth quarter of 2018, we had total revenue of $83.8 million, and for the full year we had revenue of $193 million, including $164.4 million from our low enriched uranium segment. Separative work units, or as we call it SWU, sales were down to 33% over 2017, and our average price billed to customers decreased by 46%, reflecting the trend of lower prices in recent years. Our contract services segment revenue increased 24% over 2017, which reflected the $9.5 million settlement with the Department of Energy in January, as well as our work with X-energy and others, slightly offset by the reduced work under the Oak Ridge National Laboratory contract. At December 31, 2018, we had deferred revenue of $204 million, which will be recognized in future periods as inventory is delivered. Our average cost of sales per SWU declined by 22% in 2018, but the overall cost of sales in the LEU segment increased by 15% because our sales volumes were higher, including sales of uranium. We anticipate our average cost of sales per SWU to decline again in 2019, with further declines in subsequent years, primarily due to…

Thank you, Marian. In closing today, I would like to say a few words about the nuclear industry as a whole. Recent months have brought a renewed recognition of the challenges facing our planet and the role that carbon free energy must play in preventing the worst possible future outcomes. While significant concerns about nuclear power remain, attitudes are shifting as the magnitude of the challenge comes into sharper focus and citizens, governments, experts, and organizations increasingly recognize the pivotal role nuclear energy can play in mitigating the worst effects of climate change. At Centrus, we recognize the important role nuclear power has to play in forestalling the worst of these possible scenarios and in advancing America's energy security and national security interest. We are passionate about how our technology solutions and expertise can help to meet these challenges, and we are grateful to the investors and to the stakeholders who have continued to support us. We are determined to build value for you and believe that we have a great opportunity to fuel the future with advanced generation nuclear reactors that can provide clean and safe power for people around the world for many years yet to come. Operator, we are happy to take any questions at this time.

Thank you. Since there are no questions at this time, this will conclude Centrus' fourth quarter and full year 2018 investor call. I want to extend a thank you to our listeners. We appreciate your support and look forward to speaking with you again in the future.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a wonderful day.