USEC Reports Financial Results for the Fourth Quarter and Full Year 2012

  USEC Reports Financial Results for the Fourth Quarter and Full Year 2012

  *$1.1 billion non-cash charge involving previously capitalized costs
    related to American Centrifuge project results in net loss of $1.2 billion
    for 2012
  *Charge to expense does not affect DOE assets, RD&D program or future
    investment in American Centrifuge project
  *Operations generated revenue of $1.9 billion, gross profit of $138 million
    and positive cash flow from operations of $143 million; year-end cash
    balance of $293 million
  *Credit facility amended; $83 million term loan repaid; $110 million
    revolving facility extended through September 2013
  *Sale of subsidiary NAC International closes

Business Wire

BETHESDA, Md. -- March 18, 2013

USEC Inc. (NYSE:USU) today reported a net loss of $1.2 billion or $9.84 per
basic and diluted share for the year ended December 31, 2012, reflecting the
impact of $1.1 billion expense of previously capitalized costs associated with
the American Centrifuge project. This compares to a net loss of $491.1 million
or $4.07 per basic and diluted share for 2011 that was primarily due to
American Centrifuge expenses, including a $146.6 million expense of previously
capitalized costs associated with American Centrifuge machines, and a tax
valuation allowance of $319.5 million recorded against our net deferred tax

The non-cash charge to expense of previously capitalized assets was a part of
USEC’s year-end review of the carrying value of the long-lived assets on its
books and was taken as of December 31, 2012. USEC reported a net loss of $1.08
billion or $8.84 per basic and diluted share in the fourth quarter of 2012
compared to net loss of $446.4 million or $3.68 per basic and diluted share
for the same quarter of 2011. The 2012 charge to expense did not affect the
company’s cash flow from operations.

“Our core operations generated revenue of $1.9 billion, a gross profit of $138
million and cash flow from operations of $143 million that helped us end the
year with a cash balance of $293 million,” said John K. Welch, USEC president
and CEO. “In addition to a high level of sales to our utility customers, our
employees kept our Paducah plant at peak efficiency and are continuing to
successfully execute a program to re-enrich depleted uranium tails for Energy

“As part of our annual review performed in connection with the preparation of
our annual financial statements, we expensed the previously capitalized costs
related to the American Centrifuge Plant (ACP) prior to late 2011. The
accounting charge was based on our ability to recover the full amount of this
prior capital investment. The write-off is not a reflection of our view of the
importance of the project going forward. Importantly, the centrifuge machines,
plant systems and manufacturing infrastructure that we built and developed
will continue to operate.

“The write-off does not affect future investment in ACP. It is not an
abandonment of the project or a decision not to proceed with the project. It
does not involve the cooperative research, development and demonstration
program, which is referred to as the RD&D program. No taxpayer funds are at

“We are on schedule and on budget for RD&D program,” Welch said. “We continue
to be committed to moving forward with commercialization of the American
Centrifuge. We believe the technology is the path to USEC’s long-term
competitiveness in the uranium enrichment business and the best way to
maximize value for all stakeholders.”

USEC evaluates the carrying value of the assets on its books for impairment
annually or whenever there is a triggering event. Based on this annual review,
$1.1 billion of previously capitalized costs related to the American
Centrifuge project were expensed as of December 31, 2012. We continue to make
progress in the deployment of the American Centrifuge technology, including
the effective execution of the RD&D program with the U.S. Department of Energy
(DOE) during 2012, and we are planning to update our DOE loan guarantee
application during 2013. The expense of previously capitalized costs is based
on an assessment of our ability to recover the full amount of this prior
capital investment. In light of the significant remaining capital needed to
deploy the ACP and our view of our anticipated cash flow from operations
available to finance the ACP given our other anticipated cash needs during
that period, we anticipate that our ultimate share of the ownership of the ACP
will likely be reduced by third parties investing capital to complete the ACP,
which affects our likelihood of recovering this past investment.

We are also currently developing a revised cost estimate and schedule for the
project and several factors are putting pressure on the economics of the ACP,
including delays in deployment and related carrying costs and other cost
pressures as well as uncertainty regarding financing. Thisexpense of
previously capitalized costs does not affect any future capital investment in
ACP. We would anticipate that capitalization of amounts related to the ACP
would resume if and when commercial plant deployment resumes.


Revenue for the fourth quarter was $421.3 million, a decrease of 9 percent
compared to the same quarter of 2011. Revenue from the sale of SWU for the
quarter was $377.2 million compared to $394.2 million in the same period of
the prior year. Revenue from the sale of uranium was $22.4 million, a decrease
of $6.3 million from the same quarter last year. Revenue from our contract
services segment was $21.7 million compared to $39.5 million in the fourth
quarter last year.

For the full year, revenue was $1.92 billion, an increase of $246.3 million
from 2011. SWU volume increased 31 percent year over year reflecting the
variability in timing of utility customer orders, including orders that USEC
and customers have advanced from 2013. The average SWU price billed to
customers increased 5 percent compared to 2011, reflecting the particular
contracts under which SWU were sold during the periods. Uranium revenue was
$26.0 million, a decrease of $105.8 million compared to 2011. The decline in
uranium sales in 2012 continued a trend that began several years ago, as our
inventories of uranium available for sale have been sold.

Revenue from the contract services segment was $70.3 million, a 66 percent
decrease year over year due primarily to the completion of USEC’s activities
at the former Portsmouth GDP in September 2011. Revenues from our wholly owned
subsidiary NAC decreased $15.0 million in 2012 compared to 2011 primarily as a
result of timing in sales related to dry cask storage systems. USEC closed on
the sale of NAC on March 15, 2013, and revenue in this segment is expected to
decline significantly going forward.

In a number of sales transactions, USEC transfers title and collects cash from
customers but does not recognize the revenue until low enriched uranium is
physically delivered. At December 31, 2012, deferred revenue totaled $123.1
million, compared to $181.5 million at December 31, 2011. The gross profit
associated with deferred revenue as of December 31, 2012, was $6.3 million.

Cost of Sales, Gross Profit Margin, Expenses and Other Income

Cost of sales for 2012 for SWU and uranium was $1.72 billion, an increase of
$327.4 million compared to 2011. The 24 percent change is primarily a result
of the increased SWU sales volume, partially offset by lower uranium sales
volume. Cost of sales per SWU was 1 percent higher in 2012 compared to 2011.
Cost of sales for SWU and uranium reflects monthly moving average inventory
costs based on production and purchase costs. Cost of sales per SWU in 2012
was reduced by revisions to accruals previously included in production costs
and increased by benefit costs previously charged to the contract services
segment and an acceleration of depreciation of Paducah assets. Although unit
production costs declined in 2012 compared to 2011, the SWU unit cost is
negatively impacted by the carry-forward effect of higher production and
purchase costs from prior years.

Production costs declined $21.2 million or 3 percent in 2012 compared to 2011.
Production volume increased 1 percent and the unit production cost declined 4
percent, reflecting the depleted uranium enrichment program that commenced in
June 2012. The average cost per megawatt hour declined 3 percent in 2012
reflecting lower unit power costs under the amended power contract with the
Tennessee Valley Authority. Purchase costs for the SWU component of LEU under
the Russian Contract increased $13.0 million in 2012 compared to 2011 due to a
2 percent increase in the purchase cost per SWU. Purchase prices paid under
the Russian Contract are set by a pricing formula that includes market-based
price points.

In the contract services segment, cost of sales was $61.6 million in 2012, a
decrease of $134.9 million or 69 percent. The net decrease was due primarily
to the substantial completion of contract work at the former Portsmouth plant
in September 2011 and the transition of contract service workers to DOE’s
decontamination and decommissioning contractor.

Gross profit for 2012 was $138.0 million, an increase of $53.8 million or 64
percent over the previous year. The gross profit margin for the year was 7.2
percent compared to 5.0 percent in 2011. The higher gross profit margin
primarily reflects higher SWU average prices and sales volumes, partially
offset by lower uranium sales volumes. In addition, the gross profit of the
contract services segment declined $3.9 million following the completion of
Portsmouth site contract service work in the prior periods.

As noted earlier, in the fourth quarter of 2012, we expensed $1.1 billion of
previously capitalized costs related to the American Centrifuge project based
on our annual assessment of these assets. This included previously capitalized
costs related to property, plant and equipment (including construction work in
progress) of $1,075.6 million, prepayments made to suppliers of $9.9 million
and deferred financing costs related to the DOE loan guarantee program of $6.7
million that were previously capitalized during the period 2007 through 2011.
Additionally, an expense of $44.6 million was incurred in the second quarter
of 2012 related to the title transfer of previously capitalized American
Centrifuge machinery and equipment to DOE as provided in the cooperative
agreement with DOE for the RD&D program.

Selling, general and administrative expenses in 2012 were $56.1 million, a
decrease of $6.0 million or 10 percent compared to 2011. The lower expense
reflects a decline of $3.1 million in consulting costs and a decline of $2.4
million in salary and other compensation costs.

We initiated an internal review of our organizational structure in 2012 and
engaged a management consulting firm to support this review. The cost of these
consultants and other advisors totaled $8.4 million in 2012. This review
provided a plan to address necessary organizational changes as we transition
the Paducah GDP. Our workforce was reduced by approximately 50 employees,
including two senior corporate officers, at a cost of $3.9 million for
termination benefits. Additional actions affecting employees to align the
organization with our evolving business environment are expected.

DOE and USEC provide pro-rata cost sharing support for continued American
Centrifuge activities under our June 2012 cooperative agreement, as amended,
including in March 2013. The agreement provides for 80 percent DOE and 20
percent USEC cost sharing for work performed during the period June 1, 2012,
through December 31, 2013, with a total estimated cost of $350 million. DOE’s
total contribution would be up to $280 million and our contribution would be
up to $70 million. The cooperative agreement is being incrementally funded,
and $177.8 million of DOE funding has been provided. As of December 31, 2012,
we made qualifying American Centrifuge expenditures of $115.1 million. DOE’s
pro-rata share of 80 percent, or $92.1 million, is recognized as other income
in 2012.

Cash Flow

At December 31, 2012, USEC had a cash balance of $292.9 million compared to
$37.6 million at December 31, 2011. Cash flow from operations in 2012 was
$142.9 million compared to cash flow from operations of $56.3 million in the
previous year. Positive cash flow resulted from a $238.7 million reduction in
inventories due to monetization of inventory produced in the prior year.
Capital expenditures were $4.3 million during 2012 compared to $152.8 million
in 2011. USEC ceased capitalizing spending on the ACP as of September 30,

On March 14, 2013, we amended our existing $230.0 million credit facility that
was scheduled to mature on May 31, 2013, now extended to September 30, 2013.
The amended revolving credit facility totals $110.0 million (including letters
of credit of up to $50.0 million or $25.0 million upon cessation of enrichment
at the Paducah GDP). The term loan under the credit facility, which had
declined to $78.1 million outstanding, was repaid in connection with the

Sale of NAC International

Revenue for the contract services segment was derived primarily from NAC in
2012. This wholly owned subsidiary was acquired by USEC in 2004 and provides
transportation and storage systems for spent nuclear fuel and provides nuclear
and energy consulting services. On March 15, 2013, USEC sold NAC to a
subsidiary of Hitachi Zosen Corporation for $42.4 million, subject to final
working capital adjustment.

2013 Outlook

As noted throughout this report, USEC will be going through a period of
transition during 2013 as we cease enrichment at the Paducah plant, complete
the Megatons to Megawatts program, complete the American Centrifuge RD&D
program and appropriately reduce the size of our corporate organization. Given
the uncertainties of that transition and the incremental nature of federal
funding for the RD&D program, our guidance for USEC financial results and
metrics for 2013 will be limited.

In line with our previous guidance, we expect SWU volume for the LEU segment
in 2013 to decline by about one-third compared to 2012. The average SWU price
billed to customers is expected to increase by about 5 percent. We anticipate
full-year revenue for the LEU segment of $1.4 billion, with about $50 million
attributable to natural uranium sales. For the six-month period ending June
30, 2013, we expect LEU segment revenue of approximately $625 million.

NAC International was the largest source of revenue for the contract services
segment in 2012 and we sold NAC on March 15, 2013. Results of operations for
NAC in 2013 and the gain on sale, expected to total approximately $30-$40
million, will be recorded below the gross profit line in the first quarter of

We are in the midst of an RD&D program that has an 80 percent DOE and 20
percent USEC cost share. We have adjusted our program spending to accommodate
changes to the timing and amount of federal funding. Federal funding for the
program has been incremental and subject to Congressional action. We have no
assurance that the remaining federal funds for the program will be
appropriated; therefore we are not providing guidance for spending on advanced

Also below the gross profit line, we expect selling, general and
administrative expenses of $29 million during the six-month period ending June
30, 2013.

Our financial guidance is subject to a number of assumptions and uncertainties
that could affect results either positively or negatively. Variations from our
expectations could cause substantial differences between our guidance and
ultimate results. Among the factors that could affect our results are:

  *The timing and amount of potential severance costs, pension and
    post-retirement benefit costs and other costs related to the transition of
    the Paducah GDP;
  *The timing of recognition of previously deferred revenue;
  *Movement and timing of customer orders; and
  *Changes to SWU and uranium price indicators, and changes in inflation that
    can affect the price of SWU billed to customers.

Liquidity Risks and Uncertainties

USEC expects that its cash balance, internally generated cash from its low
enriched uranium operations and services provided under its contract services
segment, and available borrowings under its revolving credit facility will
provide sufficient cash to meet its obligations as they become due for at
least twelve months from the date of its financial statements for the year
ended December 31, 2012, assuming the renewal or replacement of its revolving
credit facility past September 2013. On March 14, 2013, USEC amended its
credit facility, among other things, to extend the expiration date of the
credit facility from May 31, 2013, to September 30, 2013. USEC repaid the
$78.1 million outstanding on its term loan in connection with the amendment.
USEC believes it is reasonable to expect an extension or replacement for the
facility by September 2013. USEC’s credit facility needs at that time will
depend on USEC’s working capital needs, which in part depend on the timing of
USEC’s transition of enrichment at the Paducah gaseous diffusion plant, and
USEC may need a substantially smaller credit facility in the future. USEC’s
credit facility would also likely be replaced as part of any potential
restructuring (discussed below). In addition, if USEC were unable to renew or
replace its credit facility beyond September 2013, USEC would seek to work
with customers to effect further order movements to provide sufficient
liquidity and working capital.

In light of the significant transition of USEC’s business and the
uncertainties and challenges facing USEC and in order to improve USEC’s credit
profile and its ability to successfully finance and deploy the American
Centrifuge project and to maximize USEC’s participation in such project, USEC
is engaged with its advisors and certain stakeholders on alternatives for a
possible restructuring of its balance sheet. USEC continues to believe that
the deployment of the American Centrifuge project represents USEC’s clearest
path to a long-term, direct source of domestic enrichment production, and
therefore the long-term viability of USEC’s LEU business and USEC believes
that a restructuring could improve the likelihood of success in the deployment
of the American Centrifuge project. However, we have no assurance regarding
the outcome of any discussions we pursue with creditors or other key
stakeholders or that a restructuring of our balance sheet will lead to our
obtaining a DOE loan guarantee. Although we expect to have adequate liquidity
to meet our obligations during 2013, we have reported net losses and a
stockholders’ deficit as of December 31, 2012 and, as described above, we are
engaged with our advisors and certain stakeholders on alternatives for a
possible restructuring of our balance sheet. While USEC has no assurance
regarding its ability to pursue or complete a restructuring, a restructuring
could result in significant changes to the Company’s capital structure and
adjustments to its balance sheet, including the creation of a new entity for
accounting purposes, which would have a material impact on USEC’s financial
statements, including the going concern assumption on which they have been
prepared. As a result, our independent registered public accounting firm
included an explanatory paragraph in their report on our financial statements
for the year ended December 31, 2012, regarding uncertainty about our ability
to continue as a going concern.

Additional Information

USEC filed its annual report on Form 10-K with the Securities and Exchange
Commission today. This report is available in the Investor Relations section
of the USEC website, USEC has also issued a separate news
release on the status of the American Centrifuge program.

USEC Inc., a global energy company, is a leading supplier of enriched uranium
fuel for commercial nuclear power plants.

Forward Looking Statements

This news release contains “forward-looking statements” within the meaning of
Section 21E of the Securities Exchange Act of 1934 – that is, statements
related to future events. In this context, forward-looking statements may
address our expected future business and financial performance, and often
contain words such as “expects”, “anticipates”, “intends”, “plans”,
“believes”, “will” and other words of similar meaning. Forward-looking
statements by their nature address matters that are, to different degrees,
uncertain. For USEC, particular risks and uncertainties that could cause our
actual future results to differ materially from those expressed in our
forward-looking statements include, but are not limited to: risks related to
the ongoing transition of our business, including uncertainty regarding the
transition of the Paducah gaseous diffusion plant and uncertainty regarding
continued funding for the American Centrifuge project; the impact of a
potential balance sheet restructuring on the holders of our common stock and
convertible notes; risks related to the need to restructure the investments by
ToshibaCorporation (“Toshiba”) andBabcock & Wilcox Investment Company
(“B&W”); risks related to the underfunding of our defined benefit pension
plans and the impact of the potential requirement for us to place an amount in
escrow or purchase a bond with respect to such underfunding; the impact of a
potential de-listing of our common stock on the NYSE, including the potential
for the holders of our convertible notes to require the Company to repurchase
their notes in the event of a de-listing; the impact of uncertainty regarding
our ability to continue as a going concern on our liquidity and prospects; our
dependency on the multi-party arrangement with Energy Northwest, the
Bonneville Power Administration, the Tennessee Valley Authority and DOE to
support enrichment at the Paducah gaseous diffusion plant and the expiration
of such agreement on May 31, 2013; the impact of the March 2011 earthquake and
tsunami in Japan on the nuclear industry and on our business, results of
operations and prospects; the impact and potential extended duration of the
current supply/demand imbalance in the market for LEU; our ability to manage
the transition costs and other impacts of ceasing enrichment at Paducah;
uncertainty regarding the timing, amount and availability of additional
funding for the RD&D program and the dependency of government funding on
Congressional appropriations; restrictions in our credit facility on our
spending on the American Centrifuge project and the potential for us to
demobilize the project; limitations on our ability to provide any required
cost sharing under the RD&D program; uncertainty concerning our ability
through the RD&D program to demonstrate the technical and financial readiness
of the centrifuge technology for commercialization; uncertainty concerning the
ultimate success of our efforts to obtain a DOE loan guarantee and other
financing for the American Centrifuge project and the timing and terms
thereof; potential changes in our anticipated ownership of or role in the
American Centrifuge project, including as a result of the need to raise
additional capital to finance the project; the impact of actions we have taken
or may take to reduce spending on the American Centrifuge project, including
the potential loss of key suppliers and employees, and impacts to cost and
schedule; the impact of delays in the American Centrifuge project and
uncertainty regarding our ability to remobilize the project; the potential for
DOE to seek to exercise its remedies under the June 2002 DOE-USEC agreement;
changes in U.S. government priorities and the availability of government
funding, including loan guarantees; our ability to extend, renew or replace
our credit facility that matures on September 30, 2013; restrictions in our
credit facility that may impact our operating and financial flexibility; our
ability to actively manage and enhance our liquidity and working capital and
the potential adverse consequences of any actions taken on the long term value
of our ongoing operations; our dependence on deliveries of LEU from Russia
under a commercial agreement (the “Russian Contract”) with a Russian
government entity known as Techsnabexport (“TENEX”) that expires in 2013 and
under a new commercial supply agreement with Russia (the “Russian Supply
Agreement”) and limitations on our ability to import the Russian LEU we buy
under Russian Supply Agreement into the United States and other countries; our
inability under many existing long-term contracts to directly pass on to
customers increases in our costs; the decrease or elimination of duties
charged on imports of foreign-produced low enriched uranium; pricing trends
and demand in the uranium and enrichment markets and their impact on our
profitability; movement and timing of customer orders; changes to, or
termination of, our contracts with the U.S. government, risks related to
delays in payment for our contract services work performed for DOE; the impact
of government regulation by DOE and the U.S. Nuclear Regulatory Commission;
the outcome of legal proceedings and other contingencies (including lawsuits
and government investigations or audits); the competitive environment for our
products and services; changes in the nuclear energy industry; the impact of
volatile financial market conditions on our business, liquidity, prospects,
pension assets and credit and insurance facilities; the impact of potential
changes in the ownership of our stock on our ability to realize the value of
our deferred tax benefits; the timing of recognition of previously deferred
revenue; and other risks and uncertainties discussed in our filings with the
Securities and Exchange Commission, including our annual report on Form 10-K
that is available on our website at Revenue and operating
results can fluctuate significantly from quarter to quarter, and in some
cases, year to year. We do not undertake to update our forward-looking
statements except as required by law.

(millions, except per share data)
                        Three Months Ended          Years Ended

                        December 31,                December 31,
                        2012          2011         2012          2011
Separative work units   $ 377.2        $ 394.2      $ 1,821.8      $ 1,330.9
Uranium                   22.4           28.7         26.0           131.8
Contract services        21.7         39.5       70.3         209.1   
Total revenue            421.3        462.4      1,918.1      1,671.8 
Cost of sales:
Separative work units     354.1          416.8        1,718.5        1,391.1
and uranium
Contract services        17.8         35.4       61.6         196.5   
Total cost of sales      371.9        452.2      1,780.1      1,587.6 
Gross profit              49.4           10.2         138.0          84.2
Advanced technology       1,146.4        187.0        1,314.0        273.2
Selling, general and      13.6           14.3         56.1           62.1
Special charge -
workforce reductions      1.2            -            12.3           -
and advisory costs
Other (income)           (47.5    )    -          (92.1    )    (3.7    )
Operating income          (1,064.3 )     (191.1 )     (1,152.3 )     (247.4  )
Preferred stock           -              -            -              -
issuance costs
Interest expense          12.7           11.3         50.4           11.6
Interest (income)        (1.5     )    (0.1   )    (1.9     )    (0.5    )
Income (loss) before      (1,075.5 )     (202.3 )     (1,200.8 )     (258.5  )
income taxes
Provision (benefit)      8.8          244.1      (0.2     )    232.6   
for income taxes
Net income (loss)       $ (1,084.3 )   $ (446.4 )   $ (1,200.6 )   $ (491.1  )
Net income (loss) per   $ (8.84    )   $ (3.68  )   $ (9.84    )   $ (4.07   )
share – basic
Net income (loss) per   $ (8.84    )   $ (3.68  )   $ (9.84    )   $ (4.07   )
share – diluted
Weighted average
number of shares
Basic                     122.6          121.3        120.0          120.8
Diluted                   122.6          121.3        120.0          120.8

(millions, except share and per share data)
                                                   December 31,
                                                    2012          2011
Current Assets
Cash and cash equivalents                           $ 292.9        $ 37.6
Accounts receivable, net                              134.8          162.0
Separative work units                                 880.9          1,048.6
Uranium                                               703.7          690.0
Materials and supplies                               8.6          13.4    
Total Inventories                                     1,593.2        1,752.0
Deferred costs associated with deferred revenue       116.8          175.5
Other current assets                                 19.2         64.8    
Total Current Assets                                  2,156.9        2,191.9
Property, Plant and Equipment, net                    51.0           1,187.1
Other Long-Term Assets
Deposit for surety bonds                              22.3           151.3
Goodwill                                              6.8            6.8
Other assets                                         29.4         12.2    
Total Other Long-Term Assets                         58.5         170.3   
Total Assets                                        $ 2,266.4     $ 3,549.3 
Current Liabilities
Accounts payable and accrued liabilities            $ 145.8        $ 120.1
Payables under Russian Contract                       209.8          206.9
Inventories owed to customers and suppliers           950.0          870.1
Deferred revenue and advances from customers          125.5          205.2
Credit facility term loan                             83.2           85.0
Convertible preferred stock and accrued dividends    100.5        88.6    
payable-in-kind, 85,900 shares issued
Total Current Liabilities                             1,614.8        1,575.9
Long-Term Debt                                        530.0          530.0
Other Long-Term Liabilities
Depleted uranium disposition                          0.2            145.2
Postretirement health and life benefit                207.2          207.8
Pension benefit liabilities                           321.7          258.3
Other liabilities                                    65.4         79.7    
Total Other Long-Term Liabilities                     594.5          691.0
Stockholders’ Equity (Deficit)
Preferred stock, par value $1.00 per share,
authorized, no shares recorded as stockholders’       -              -
Common stock, par value $.10 per share,
authorized, 130,273,000 shares issued                 13.0           13.0
Excess of capital over par value                      1,200.8        1,212.5
Retained earnings (deficit)                           (1,361.8 )     (161.2  )
Treasury stock, 5,071,000 and 7,082,000 shares        (33.0    )     (49.4   )
Accumulated other comprehensive loss, net of tax     (291.9   )    (262.5  )
Total Stockholders’ Equity (Deficit)                 (472.9   )    752.4   
Total Liabilities and Stockholders’ Equity          $ 2,266.4     $ 3,549.3 

                                        Years Ended December 31,
                                        2012          2011        2010
Cash Flows From Operating Activities
Net income (loss)                       $ (1,200.6 )   $ (491.1 )   $ 7.5
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization             37.5           50.1         43.3
Transfers and retirements of              47.4           -            -
property, plant and equipment
Expense of American Centrifuge            1,092.3        146.6        -
capital assets
Deferred income taxes                     -              252.0        44.3
Other non-cash income on release of       (92.1    )     (0.6   )     (44.4  )
disposal obligation
Preferred stock issuance costs and
capitalized dividends paid- or            11.9           10.4         8.5
Gain on extinguishment of convertible     -              (3.1   )     -
senior notes
Changes in operating assets and
Accounts receivable – (increase)          1.4            146.6        (117.2 )
Inventories, net – (increase)             238.7          (75.2  )     25.1
Payables under Russian Contract –         2.9            5.7          66.4
Deferred revenue, net of deferred         90.3           5.2          (10.6  )
costs – increase (decrease)
Accrued depleted uranium disposition      (145.0   )     19.8         (30.2  )
– increase (decrease)
Accounts payable and other                27.2           (10.6  )     23.5
liabilities – increase (decrease)
Other, net                               31.0         0.5        6.3    
Net Cash Provided by Operating
Activities                               142.9        56.3       22.5   

Cash Flows Provided by (Used in)
Investing Activities
Capital expenditures                      (4.3     )     (152.8 )     (162.2 )
Deposits for surety bonds, net           129.1        (10.4  )    17.6   
(increase) decrease
Net Cash Provided by (Used in)           124.8        (163.2 )    (144.6 )
Investing Activities
Cash Flows Provided by (Used in)
Financing Activities
Borrowings under credit facility          123.6          80.9         38.7
Repayments under credit facility          (123.6   )     (80.9  )     (38.7  )
Proceeds from (repayment of) credit       (1.8     )     -            85.0
facility term loan
Proceeds from issuance of convertible     -              -            75.0
preferred stock and warrants
Payments for deferred financing costs     (10.1    )     (5.0   )     (16.4  )
and preferred stock issuance costs
Common stock issued (purchased), net     (0.5     )    (1.5   )    (1.8   )
Net Cash Provided by (Used in)            (12.4    )     (6.5   )     141.8
Financing Activities
Net Increase (Decrease)                   255.3          (113.4 )     19.7
Cash and Cash Equivalents at             37.6         151.0      131.3  
Beginning of Period
Cash and Cash Equivalents at End of     $ 292.9       $ 37.6      $ 151.0  
Supplemental Cash Flow Information
Interest paid, net of capitalized       $ 27.5         $ 4.5        $ -
Income taxes paid, net of refunds         -              -            3.2


Paul Jacobson, 301-564-3399
Investor Relations:
Steven Wingfield, 301-564-3354
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