UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-14287 Centrus Energy Corp. Delaware 52-2107911 (State of incorporation) (I.R.S. Employer Identification No.) 6901 Rockledge Drive, Suite 800, Bethesda, Maryland 20817 (301) 564-3200 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-14287 Centrus Energy Corp. Delaware 52-2107911 (State of incorporation) (I.R.S. Employer Identification No.) 6901 Rockledge Drive, Suite 800, Bethesda, Maryland 20817 (301) 56 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Commission file number 1-14287 Centrus Energy Corp. Delaware 52-2107911 (State of incorporation) (IRS Employer Identification No.) 6901 Rockledge Drive, Suite 800, Bethesda, Maryland 20817 (301) 564-3200 Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbo ...

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements and accompanying notes for the period ended September 30, 2021 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets of $487.2 million and a significant reduction in the total stockholders' deficit Condensed Consolidated Balance Sheet Highlights (in millions) | Balance Sheet Item | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $414.2 | $406.1 | | **Total Assets** | $487.2 | $486.3 | | **Total Current Liabilities** | $335.2 | $366.1 | | **Total Liabilities** | $716.3 | $806.9 | | **Total Stockholders' Deficit** | $(229.1) | $(320.6) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a net income of $42.1 million in Q3 2021, a major turnaround driven by a substantial revenue increase Statement of Operations Highlights (in millions, except per share data) | Metric | Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $91.3 | $33.6 | $209.3 | $154.3 | | **Gross Profit (Loss)** | $49.5 | $(0.8) | $78.3 | $62.6 | | **Operating Income (Loss)** | $38.2 | $(9.5) | $46.6 | $30.4 | | **Net Income (Loss)** | $42.1 | $(7.0) | $58.8 | $38.0 | | **Diluted EPS** | $2.95 | $(0.83) | $3.66 | $3.12 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations was $0.8 million for the nine-month period, with an overall $19.0 million increase in cash and cash equivalents Cash Flow Summary (in millions) | Cash Flow Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $0.8 | $5.2 | | **Cash (used in) investing activities** | $(0.7) | $(0.9) | | **Cash provided by financing activities** | $18.9 | $17.8 | | **Increase in cash, cash equivalents and restricted cash** | $19.0 | $22.1 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail revenue disaggregation, the HALEU contract status, the LEU order book, and a subsequent tender offer - The LEU segment's sales order book was approximately **$1 billion** as of September 30, 2021, extending to 2030[22](index=22&type=chunk) - Technical solutions revenue for Q3 and YTD 2021 includes **$43.5 million** from a settlement with the DOE for past pension and postretirement benefits costs[32](index=32&type=chunk)[66](index=66&type=chunk) - The HALEU Contract is experiencing increased costs of approximately **$10 million** and delays, with production now expected to begin in mid-2022[29](index=29&type=chunk) - Subsequent to the quarter end, on October 20, 2021, the company commenced a tender offer to purchase all outstanding **Series B Senior Preferred Stock**[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes performance across its LEU and technical solutions segments, focusing on revenue drivers and capital structure [Overview](index=24&type=section&id=Overview) The company operates in LEU and technical solutions, with a focus on the HALEU demonstration contract and capital structure improvements - Centrus operates two business segments: **low-enriched uranium (LEU)** and **technical solutions**[80](index=80&type=chunk) - The company is deploying a HALEU demonstration cascade under a cost-share contract with the DOE, but is experiencing increased costs of approximately **$10 million** and supply chain delays, pushing the start of production to mid-2022[88](index=88&type=chunk)[89](index=89&type=chunk) - In the nine months ended Sep 30, 2021, the company raised **$27.6 million in net proceeds** from the sale of 1.24 million shares of Class A Common Stock[97](index=97&type=chunk) - On October 20, 2021, the company launched a tender offer to purchase all outstanding **Series B Senior Preferred Stock**[99](index=99&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Q3 2021 revenue grew 172% to $91.3 million, boosted by a $43.5 million DOE settlement in the technical solutions segment Segment Revenue and Gross Profit (in millions) | Segment | Metric | Q3 2021 | Q3 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | **LEU** | Revenue | $32.0 | $18.7 | $115.3 | $112.8 | | | Gross Profit (Loss) | $8.3 | $(0.9) | $39.2 | $61.0 | | **Technical Solutions** | Revenue | $59.3 | $14.9 | $94.0 | $41.5 | | | Gross Profit | $41.2 | $0.1 | $39.1 | $1.6 | | **Total** | Revenue | $91.3 | $33.6 | $209.3 | $154.3 | | | Gross Profit (Loss) | $49.5 | $(0.8) | $78.3 | $62.6 | - Technical solutions revenue in Q3 2021 included a **$43.5 million settlement** with the DOE; excluding this, revenue for the segment increased due to more work on the HALEU and X-energy contracts[134](index=134&type=chunk) - LEU segment gross profit for YTD 2021 was $39.2 million, compared to $61.0 million in YTD 2020; the 2020 period included a one-time **$32.4 million revenue recognition** from a customer bankruptcy settlement[140](index=140&type=chunk) - SG&A expenses increased by $2.3 million in Q3 2021, mainly due to a **$2.2 million remeasurement** of long-term incentive compensation obligations tied to the company's stock price[145](index=145&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q3 with a $171.0 million cash balance and believes it has adequate liquidity for the next twelve months - The company ended Q3 2021 with a consolidated cash balance of **$171.0 million**[159](index=159&type=chunk) Working Capital Summary (in millions) | Component | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $171.0 | $152.0 | | Inventories, net | $73.0 | $59.9 | | **Working capital** | **$79.0** | **$40.0** | - The company commenced a tender offer to purchase all outstanding Series B Preferred Shares at $1,145.20 per share, with a potential aggregate cost of **$43.3 million**[178](index=178&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective with no material changes in internal controls - Based on an evaluation as of September 30, 2021, the CEO and CFO concluded that the Company's disclosure controls and procedures were **effective**[186](index=186&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended September 30, 2021[187](index=187&type=chunk) [PART II – OTHER INFORMATION](index=47&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11 of the financial statements for information regarding the company's legal proceedings - For details on legal proceedings, the report refers to **Note 11, Commitments and Contingencies — Legal Matters**, in Part I of the financial statements[190](index=190&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section highlights material risks related to the HALEU contract, including future funding and operational uncertainties - A key risk is the uncertainty of obtaining the full benefit of the HALEU Contract and being able to operate the enrichment facility after the **contract's completion in 2022**[192](index=192&type=chunk) - The DOE is considering moving the operational portion of the HALEU demonstration to a new, **competitively-awarded contract**, and there is no assurance Centrus will win this contract[193](index=193&type=chunk) - **Failure to secure U.S. government or other funding** to continue operating the Piketon facility could have a material adverse effect on the company's business and financial condition[194](index=194&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed with the Form 10-Q, including agreements, amendments, and required certifications - Exhibits filed include compensation agreements, the **DOE settlement agreement** dated September 7, 2021, a lease amendment with the DOE, and CEO/CFO certifications[195](index=195&type=chunk)

Financial Performance - Total revenue for the three months ended June 30, 2021, was $62.4 million, a decrease of 17.8% compared to $75.7 million for the same period in 2020[12]. - Gross profit for the six months ended June 30, 2021, was $28.8 million, down 54.6% from $63.4 million in the same period of 2020[12]. - Net income for the three months ended June 30, 2021, was $11.6 million, a decrease of 65.5% compared to $33.7 million for the same period in 2020[12]. - Total revenue for the three months ended June 30, 2021, was $62.4 million, a decrease from $75.7 million in the same period of 2020, representing a decline of 17.8%[67]. - The LEU segment generated revenue of $45.2 million in Q2 2021, down from $58.6 million in Q2 2020, reflecting a decrease of 22.9%[67]. - Gross profit for the three months ended June 30, 2021, was $17.1 million, compared to $43.8 million in Q2 2020, indicating a decline of 61.0%[67]. - For the six months ended June 30, 2021, total revenue was $118.0 million, slightly down from $120.7 million in the same period of 2020, a decrease of 1.4%[67]. - The LEU segment's total revenue for the first half of 2021 was $83.3 million, down from $94.1 million in the first half of 2020, a decline of 11.5%[67]. - The technical solutions segment's revenue increased to $34.7 million in the first half of 2021 from $26.6 million in the same period of 2020, representing a growth of 30.4%[67]. Assets and Liabilities - Total current assets increased to $425.9 million as of June 30, 2021, compared to $406.1 million as of December 31, 2020, reflecting a growth of 4.4%[11]. - Cash and cash equivalents rose to $176.0 million, up from $152.0 million, indicating a 15.8% increase[11]. - Total liabilities decreased to $772.0 million from $806.9 million, a reduction of 4.3%[11]. - The accumulated deficit improved to $(398.6) million from $(407.7) million, showing a positive change of 2.2%[11]. - The company reported a total stockholders' deficit of $(271.4) million, an improvement from $(320.6) million, indicating a positive change of 15.3%[11]. - Long-term debt slightly decreased to $104.9 million from $108.0 million, a reduction of 2.9%[11]. - Accounts receivable decreased to $19.0 million from $29.6 million, a decline of 35.6%[11]. - Deferred revenue and advances from customers were $276.0 million, slightly down from $283.2 million, a decrease of 2.5%[11]. - Total cash, cash equivalents, and restricted cash amounted to $181.9 million as of June 30, 2021, compared to $125.2 million as of June 30, 2020, reflecting an increase of approximately 45%[31]. - Accounts receivable decreased to $19.0 million as of June 30, 2021, from $29.6 million as of December 31, 2020, indicating a reduction of approximately 36%[21]. - Deferred revenue decreased by $22.6 million year-to-date, from $281.7 million as of December 31, 2020, to $259.1 million as of June 30, 2021[22]. Cash Flow - Cash provided by operating activities for the six months ended June 30, 2021, was $2.9 million, compared to cash used in operating activities of $8.4 million in the same period of 2020[13]. - Cash, cash equivalents, and restricted cash at the end of the period on June 30, 2021, totaled $181.9 million, an increase from $125.2 million at the end of June 30, 2020[13]. - The company recognized $27.2 million in proceeds from the sale of common stock during the six months ended June 30, 2021[13]. - The company sold 1,238,637 shares of Class A Common Stock for a total of $28.7 million during the six months ended June 30, 2021, resulting in net proceeds of $27.6 million[45]. Operational Challenges - The company continues to face risks related to market conditions and customer payment capabilities, which could impact future financial performance[9]. - The Company has experienced increased costs of approximately $8.8 million for the HALEU Contract due to COVID-19 related delays and supply chain issues[29]. - The company does not anticipate that ongoing legal proceedings will have a material adverse effect on its financial condition[65]. Segment Performance - The technical solutions segment reported a gross loss of $1.1 million in Q2 2021, compared to a loss of $0.7 million in Q2 2020[67]. - Major customers in the LEU segment contributed $14.5 million, $11.2 million, and $10.4 million to revenue in Q2 2021, while a customer in the technical solutions segment contributed $15.2 million[68]. - The company continues to focus on segment reporting based on gross profit as a key measure for performance evaluation[67]. Legal and Regulatory Matters - The Company is involved in a legal claim against DOE for $42.8 million related to pension and postretirement benefits, with a tentative settlement of $43.5 million pending approval[59][60]. - The Company has not accrued any potential liability of approximately $9.6 million asserted by DOE regarding decontamination costs due to uncertainty[56]. - The Company believes its operations at the Portsmouth GDP site comply with Nuclear Regulatory Commission regulations and seeks indemnification under the Price-Anderson Act for potential liabilities[61][64].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-14287 Centrus Energy Corp. Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to ...

Financial Data and Key Metrics Changes - In 2020, total revenue grew to $247.2 million, with a net profit of $54.4 million, marking a return to profitability despite the challenges posed by the COVID-19 pandemic [9][26] - Adjusted earnings per share (EPS) for the year was approximately $4.71, with Q4 adjusted EPS at $1.46 [26][27] - The company ended 2020 with a consolidated cash balance of $152 million, despite retiring approximately $60 million in Series B preferred stock [35][36] Business Line Data and Key Metrics Changes - Revenue from the Low Enriched Uranium (LEU) segment increased by $21.1 million in 2020 compared to 2019, with Q4 LEU revenue reaching $77.7 million, accounting for over 40% of the annual LEU revenue [27][29] - The Technical Solutions segment revenue increased by $16.4 million in 2020, reflecting ramped-up construction activities under the HALEU contract [31] - Cost of sales for the LEU segment decreased by $25.9 million, while Technical Solutions segment cost of sales decreased by $1.7 million compared to 2019 [30][31] Market Data and Key Metrics Changes - Spot prices for enrichment have increased by almost 60% since August 2018, leading to increased demand from utilities [21] - The company maintained a long-term order book valued at approximately $960 million, despite some older contracts rolling off [22] Company Strategy and Development Direction - Centrus aims to be the first to market with High Assay Low Enriched Uranium (HALEU) and is positioned to meet both civilian and defense requirements for enriched uranium [39][40] - The company is focused on reestablishing domestic uranium enrichment production, which has not occurred since 2013, and plans to expand production capacity in a modular fashion [54][55] - The resolution of the Russian Suspension Agreement has provided clarity and access to reliable supplies for the company, supporting its strategic objectives [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear industry's role in providing reliable carbon-free electricity and highlighted bipartisan support for advanced nuclear reactors [37][38] - The company anticipates a balanced revenue outlook for 2021 and 2022, slightly higher than 2020, excluding the bankruptcy settlement [50] Other Important Information - The company completed a public offering that raised about $25 million before expenses, strengthening its balance sheet [9][10] - Management emphasized the importance of capital markets for future growth and potential investments in production capabilities [60][62] Q&A Session Summary Question: SWU pricing environment trends - Management noted a rising trend in SWU prices since August 2018, with increased market activity following the resolution of the Russian Suspension Agreement [46][47] Question: Expectations for 2021 versus 2020 - Management indicated expectations for slightly higher revenue in 2021 and 2022 compared to 2020, with margins remaining stable [50] Question: Centrus' role in reestablishing domestic production - Management confirmed Centrus' essential role in reestablishing domestic uranium enrichment and highlighted ongoing collaboration with the Department of Energy [53][54] Question: Use of favorable capital markets for additional capital - Management expressed openness to utilizing favorable capital markets for potential capital raises to support production reestablishment [60][62] Question: Opportunities for preferred repurchases or debt repayment - Management is continuously monitoring opportunities for preferred repurchases and debt repayment as part of their strategy to strengthen the balance sheet [65][66] Question: Advanced reactor market positioning - Management emphasized Centrus' integral role in the advanced reactor community, particularly in supplying HALEU to support new reactor designs [70][72]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 Commission file number 1-14287 Centrus Energy Corp. Delaware 52-2107911 (State of incorporation) (IRS Employer Identification No.) 6901 Rockledge Drive, Suite 800, Bethesda, Maryland 20817 (301) 564-3200 Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbo ...

PART I [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Centrus Energy Corp. reported a net income of $38.0 million for the nine months ended September 30, 2020, marking a significant financial turnaround [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2020, total assets increased, liabilities decreased, and stockholders' deficit improved to $(275.6) million Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Total Current Assets** | $386.3 | $369.6 | | **Total Assets** | $468.2 | $455.9 | | **Total Current Liabilities** | $315.8 | $336.8 | | **Total Liabilities** | $743.8 | $792.8 | | **Total Stockholders' Deficit** | $(275.6) | $(336.9) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Centrus reported a net income of $38.0 million for the nine months ended September 30, 2020, driven by increased gross profit despite flat revenue Financial Performance (in millions, except per share data) | Metric | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | **Total Revenue** | $154.3 | $154.0 | | **Gross Profit** | $62.6 | $25.7 | | **Operating Income (Loss)** | $30.4 | $(13.0) | | **Net Income (Loss)** | $38.0 | $(13.7) | | **Diluted EPS** | $3.12 | $(2.05) | Q3 Financial Performance (in millions, except per share data) | Metric | Three Months Ended Sep 30, 2020 | Three Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | **Total Revenue** | $33.6 | $104.7 | | **Gross Profit (Loss)** | $(0.8) | $35.5 | | **Net Income (Loss)** | $(7.0) | $22.8 | | **Diluted EPS** | $(0.83) | $2.17 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash provided by operating activities was $5.2 million for the nine months ended September 30, 2020, reversing a prior-year outflow Cash Flow Summary (in millions) | Activity | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | **Cash from Operating Activities** | $5.2 | $(26.5) | | **Cash from Investing Activities** | $(0.9) | $0.7 | | **Cash from Financing Activities** | $17.8 | $(33.8) | | **Increase (Decrease) in Cash** | $22.1 | $(59.6) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, LEU and Technical Solutions revenue, a common stock offering, and a preferred stock tender offer - SWU revenue for the nine months ended Sep 30, 2020, includes **$32.4 million** collected from a customer in settlement of a supply contract rejected in bankruptcy court[22](index=22&type=chunk) - The company's order book for the LEU segment was **$1.0 billion** as of September 30, 2020, extending to 2030[26](index=26&type=chunk) - Under the HALEU Contract with the DOE, the company's cost of sales for the nine months ended Sep 30, 2020, benefited by **$8.7 million** from the reversal of previously accrued contract losses[33](index=33&type=chunk) - In August/September 2020, the company sold 2,537,500 shares of Class A Common Stock, generating gross proceeds of approximately **$25.4 million**[50](index=50&type=chunk)[51](index=51&type=chunk) - On October 19, 2020, the company commenced a tender offer to purchase up to **$60 million** of its Series B Senior Preferred Stock at a price of **$954.59 per share**[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses improved LEU segment profitability, HALEU contract progress, successful capital raise, and liquidity management [Overview](index=23&type=section&id=Overview) Centrus focuses on nuclear fuel supply and advanced production, with a $1 billion order book and key HALEU and Russian supply agreements - The company's LEU segment has a **$1 billion** global order book with contracts extending to 2030[81](index=81&type=chunk) - Centrus is working on a three-year, **$115 million** cost-shared contract with the DOE to demonstrate production of High-Assay, Low-Enriched Uranium (HALEU)[86](index=86&type=chunk) - The U.S. Department of Commerce and the Russian Federation agreed to extend the Russian Suspension Agreement through 2040, setting aside a significant portion of the import quota for Centrus's supply agreement with TENEX[82](index=82&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Gross profit significantly increased to $62.6 million for the nine months ended September 30, 2020, driven by LEU and Technical Solutions Segment Performance - Nine Months Ended September 30 (in millions) | Segment | Revenue 2020 | Revenue 2019 | Gross Profit 2020 | Gross Profit 2019 | | :--- | :--- | :--- | :--- | :--- | | **LEU Segment** | $112.8 | $125.5 | $61.0 | $25.1 | | **Technical Solutions** | $41.5 | $28.5 | $1.6 | $0.6 | | **Total** | $154.3 | $154.0 | $62.6 | $25.7 | - LEU segment revenue for the nine months ended Sep 30, 2020, includes a **$32.4 million** collection from a customer in settlement of a supply contract rejected in bankruptcy[134](index=134&type=chunk) - Technical solutions revenue increased by **$13.0 million (46%)** in the nine-month period, primarily due to work performed under the HALEU Contract[136](index=136&type=chunk) - Net income for the nine months ended Sep 30, 2020, was **$38.0 million**, a favorable variance of **$51.7 million** from the prior year, primarily due to a **$36.9 million** increase in gross profit and an **$11.2 million** decline in advanced technology costs[152](index=152&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Centrus ended Q3 2020 with $152.8 million cash, maintaining adequate liquidity through operating cash, HALEU funding, and a stock offering - The company ended Q3 2020 with a consolidated cash balance of **$152.8 million**[154](index=154&type=chunk) Working Capital Summary (in millions) | Component | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Cash and cash equivalents | $152.8 | $130.7 | | **Working capital** | **$70.5** | **$32.8** | - Net proceeds from the August 2020 common stock offering were **$23.8 million**[165](index=165&type=chunk)[169](index=169&type=chunk) - The HALEU Contract with DOE is incrementally funded, with DOE currently obligated for costs up to approximately **$74.5 million** of the **$115 million** total[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2020, with no material changes in internal controls - Based on an evaluation as of September 30, 2020, the CEO and CFO concluded that the Company's disclosure controls and procedures were effective[178](index=178&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[179](index=179&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) Centrus is involved in legal proceedings including a $42.8 million claim against DOE, Portsmouth GDP lawsuits, and a $32.4 million bankruptcy recovery - The company is appealing the DOE's denial of a **$42.8 million** claim for pension and postretirement benefits costs related to the former Portsmouth GDP[183](index=183&type=chunk) - Centrus is a defendant in several class-action lawsuits alleging off-site contamination from the Portsmouth GDP site and has invoked indemnification under the Price-Anderson Act[184](index=184&type=chunk)[186](index=186&type=chunk)[190](index=190&type=chunk) - In June 2020, the company collected approximately **$32.4 million** from a settlement of claims against FirstEnergy Nuclear Operating Company in its bankruptcy proceedings[191](index=191&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) Key risks include Russian SWU import restrictions, potential new duties on foreign uranium, and adverse impacts from the COVID-19 pandemic - A key risk is the restriction on Russian uranium imports. The amended RSA, effective through 2040, allocates a portion of export limits to Centrus, but the company's backlog is not yet sufficient to meet all minimum purchase obligations from its Russian supplier[195](index=195&type=chunk)[199](index=199&type=chunk)[200](index=200&type=chunk) - The company faces risks of new duties, sanctions, or other trade restrictions on SWU or uranium purchased from any foreign suppliers, which could adversely affect profitability[202](index=202&type=chunk) - The COVID-19 pandemic poses a risk to business operations, with potential for supply chain disruptions, increased costs, and delays, particularly for the Technical Solutions segment and the HALEU contract which requires on-site work[207](index=207&type=chunk)[208](index=208&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including a consulting agreement, CEO/CFO certifications, and XBRL financial data - Filed exhibits include a consulting agreement, CEO/CFO certifications (Rule 13a-14(a) and 18 U.S.C. Section 1350), and financial statements in XBRL format[210](index=210&type=chunk) [Signatures](index=50&type=section&id=Signatures) The report is duly signed on November 13, 2020, by Philip O. Strawbridge, Senior Vice President and Chief Financial Officer

Financial Performance - Total revenue for the three months ended June 30, 2020, was $75.7 million, a significant increase from $10.6 million in the same period of 2019, representing a growth of 613%[14] - Gross profit for the six months ended June 30, 2020, was $63.4 million, compared to a gross loss of $9.8 million for the same period in 2019, indicating a turnaround in profitability[14] - Net income for the three months ended June 30, 2020, was $33.7 million, compared to a net loss of $15.6 million in the same period of 2019, marking a positive shift in financial performance[14] - For the six months ended June 30, 2020, total revenue was $94.1 million, up from $37.7 million in the same period of 2019, indicating a growth of 149%[23] - The company reported a net income of $33.7 million for the three months ended June 30, 2020, compared to a net loss of $15.6 million for the same period in 2019[54] - Basic net income per common share for the three months ended June 30, 2020, was $3.28, while diluted net income per common share was $3.19[54] Assets and Liabilities - Total current assets increased to $386.1 million as of June 30, 2020, compared to $369.6 million as of December 31, 2019, reflecting a growth of approximately 4.4%[12] - Total liabilities decreased to $760.6 million as of June 30, 2020, down from $792.8 million, a reduction of about 4.1%[12] - The accumulated deficit improved to $(360.0) million from $(405.0) million, indicating a reduction in losses[12] - Long-term debt decreased to $111.0 million from $114.1 million, a reduction of about 2.9%[12] - The company reported a total stockholders' deficit of $(291.7) million, improved from $(336.9) million[12] - Cash and cash equivalents decreased to $119.3 million from $130.7 million, a decline of about 8.5%[12] Revenue Sources - Revenue from separative work units (SWU) and uranium sales for the three months ended June 30, 2020, was $63.4 million, compared to $2.6 million in the same period of 2019, representing a significant increase[23] - The LEU segment generated revenue of $63.4 million in the three months ended June 30, 2020, compared to $2.6 million in the same period of 2019[73] - The technical solutions segment generated revenue of $12.3 million in the three months ended June 30, 2020, compared to $8.0 million in the same period of 2019[73] - The Company collected approximately $32.4 million as a recovery on claims related to a long-term contract breach with FirstEnergy, included in SWU revenue for the six months ended June 30, 2020[70] Cash Flow and Operating Activities - Cash used in operating activities for the six months ended June 30, 2020, was $8.4 million, a reduction from $45.1 million in the same period of 2019, reflecting improved cash flow management[15] - The company reported a decrease in cash, cash equivalents, and restricted cash of $11.4 million for the six months ended June 30, 2020, compared to a decrease of $47.7 million in the same period of 2019[15] Customer Advances and Receivables - Accounts receivable rose to $31.2 million, up from $21.1 million, representing an increase of approximately 47.9%[12] - Advances from customers increased to $44.4 million as of June 30, 2020, from $29.4 million as of December 31, 2019, reflecting a growth of 51%[26] - Accounts receivable as of June 30, 2020, totaled $31.2 million, an increase from $21.1 million as of December 31, 2019, reflecting a growth of 48%[25] Inventory and Cost of Sales - Total cost of sales for the three months ended June 30, 2020, was $31.9 million, up from $14.9 million in the same period of 2019, indicating increased operational activity[14] - Uranium inventories as of June 30, 2020, amounted to $73.8 million, compared to $56.7 million as of December 31, 2019, indicating an increase of 30%[40] Legal and Regulatory Matters - The Company is involved in various legal proceedings, but does not believe these will have a material adverse effect on its financial condition[72] - The 2002 DOE-USEC Agreement requires the Company to develop advanced enrichment technology and deploy a commercial American Centrifuge Plant[60] Market and Operational Risks - The company continues to face risks related to market conditions and supply chain dependencies, particularly in the low-enriched uranium market[9] Accounting and Valuation - The company adopted new accounting standards in the first quarter of fiscal 2020, which did not have a material impact on its financial statements[20] - The company recognized an income tax benefit of $0.8 million in Q2 2020 due to the release of a valuation allowance on state net deferred tax assets[52] - The company maintains a full valuation allowance on its federal net deferred tax assets due to a three-year cumulative pretax loss position as of June 30, 2020[53] Supply Agreements - The company has commitments under the Russian Supply Agreement with TENEX, which includes minimum purchase obligations for SWU each year[55] - The Company entered into a long-term supply agreement with Orano for SWU contained in LEU, starting in 2020 and extending to 2028, with an option to extend for an additional two years[59]