Company: LEU
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001065059-25-000024
Chunk: 87

Company: CENTRUS ENERGY CORP
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 87
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 cash, which is primarily held in money market accounts. The increase was due primarily to a higher cash balance driven by the proceeds from the issuance of the 2.25% Convertible Notes issued in November 2024.

Extinguishment of Long-Term Debt

Pursuant to the a redemption notice, on March 26, 2025, the Company redeemed all 8.25% Notes at a redemption price equal to 100% of the principal amount, together with any accrued and unpaid interest. The Company recorded a gain of $11.8 million related to the extinguishment of the 8.25% Notes in the three months ended March 31, 2025.

Income Tax Expense (Benefit)

Income tax expense (benefit) was $8.0 million and ($2.3) million for the three months ended March 31, 2025 and 2024, respectively, a change of $10.3 million (or 448%). Income tax expense (benefit) for both periods resulted from applying the annual effective tax rate to the quarterly income (loss) from continuing operations adjusted for discrete items. For more information about the valuation allowance, see Note 14, Income Taxes, in our Consolidated Financial Statements on our Annual Report on Form 10-K for the year ended December 31, 2024.

Net Income (Loss) and Comprehensive Income (Loss)

Net income (loss) netted to income of $27.2 million and a loss of $6.1 million for the three months ended March 31, 2025 and 2024, respectively, a change of $33.3 million (or 546%). The change of $33.3 million was primarily attributable to an increase of $30.7 million in gross profit from the LEU segment, a gain of $11.8 million on the extinguishment of long-term debt, an increase of $4.5 million in investment income, and a decrease of $2.7 million in advanced technology costs. This was partially offset by an increase of $3.0 million in interest expense and a decrease of $2.1 million in gross profit from the Technical Solutions segment.

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Liquidity and Capital Resources

As of March 31, 2025, the Company had a consolidated cash and cash equivalents balance of $653.0 million. In addition, the Company had $29.8 million of restricted cash related to three inventory loans, which required a cash deposit into