USEC Reports First Quarter 2013 Results

  USEC Reports First Quarter 2013 Results

  *Net loss of $2.0 million on revenue of $320.4 million
  *American Centrifuge testing underway with completion of cascade
    construction
  *RD&D program incremental funding through September appropriated
  *Listing standards notice received from NYSE

Business Wire

BETHESDA, Md. -- May 6, 2013

USEC Inc. (NYSE:USU) today reported a net loss of $2.0 million or 2 cents per
basic and diluted share for the quarter ended March 31, 2013 compared to a net
loss of $28.8 million or 24 cents per basic and diluted share for the first
quarter of 2012.

The financial results for the first quarter 2013 reflect a reduction in
separative work unit (SWU) revenue and lower gross profit compared to the same
period of 2012. Results include the recognition of $47.6 million of other
income from U.S. Department of Energy (DOE) pro-rata cost sharing support for
the research, development and demonstration (RD&D) program, offset by
increased advanced technology costs. In addition, USEC completed the sale of
its subsidiary NAC International on March 15, 2013. The sale and results of
NAC operations through the date of divestiture are presented under net income
from discontinued operations. The March 31, 2013, cash balance was $71.9
million after repaying an $83.2 million term loan and an account payable to
Russia of $209.8 million.

“Our employees at the Paducah plant continue to deliver the highest quality
enriched uranium from the 60-year-old plant,” said John K. Welch, USEC
president and chief executive officer. “While we continue to pursue options
for a short-term extension of enrichment at Paducah beyond May 31, we also
continue to prepare to cease enrichment in early June.”

Welch said, “Looking to our future, the RD&D program at the American
Centrifuge Plant is also going well. During the quarter, construction of the
demonstration cascade in Piketon, Ohio, was completed; we achieved program
milestones; and we have begun testing control systems and support equipment
for the 120-machine cascade. We remain on schedule to complete the program
during 2013.

“The decline in our cash balance at the end of the first quarter was the
expected result of paying off our term loan in the first quarter and a
substantial year-end payable to the Russians under the Megatons to Megawatts
program. We expect the cash balance to improve over the next several quarters
through positive cash flow from operations,” Welch said.

Revenue

Revenue for the first quarter of 2013 was $320.4 million, a decrease of $221.6
million or 41 percent compared to the same quarter of 2012. Revenue from the
sale of SWU for the quarter was $290.2 million compared to $537.9 million in
the same period last year. The volume of SWU sales decreased 49 percent in the
quarter reflecting the variability in timing of utility customer orders and
the expected decline in SWU deliveries in 2013 compared to 2012. The average
price billed to customers for sales of SWU increased 5 percent reflecting the
particular contracts under which SWU were sold during the periods. Revenue
from the sale of uranium was $27.6 million in the first quarter of 2013
compared with no sales in the first quarter of 2012. Revenue from the contract
services segment was $2.6 million in the first quarter of 2013 compared to
$4.1 million in the same period of 2012, reflecting reduced contract services
performed for DOE and DOE contractors and reserves of revenue of $0.8 million
in the first quarter of 2013 pending resolution of cost allocations to the
closeout of the cold shutdown contract. Revenue and costs for NAC in both
periods are included in discontinued operations.

In a number of sales transactions, USEC transfers title and collects cash from
customers but does not recognize the revenue until the low enriched uranium
(LEU) is physically delivered. At March 31, 2013, deferred revenue totaled
$112.1 million compared to $123.1 million at December 31, 2012. The gross
profit associated with deferred revenue as of March 31, 2013, was $5.9
million.

Cost of Sales and Gross Profit Margin

Cost of sales for the quarter ended March 31, 2013, for SWU and uranium was
$303.8 million, a decrease of $197.4 million or 39 percent, compared to the
corresponding period in 2012 due to lower SWU sales volume, partially offset
by uranium sales and higher unit SWU costs in the current period. Cost of
sales per SWU was 7 percent higher in the quarter compared to the first
quarter of 2012. Cost of sales for SWU reflects monthly moving average
inventory costs based on production and purchase costs.

The shorter expected service life of the Paducah GDP resulted in accelerated
charges to expense of $2.8 million in three months ended March 31, 2013,
including $2.0 million of accelerated depreciation. In the corresponding
quarter in 2012, cost of sales was reduced by approximately $14.6 million for
revisions to prior accrued amounts related to estimated disposal costs for
depleted uranium and property taxes related to enrichment operations.
Excluding the effects of these items, cost of sales per SWU was approximately
3 percent higher in the three months ended March 31, 2013, compared to the
same period in 2012.

Production costs declined $37.9 million, or 17 percent, as production volume
declined 14 percent in the three months ended March 31, 2013, compared to the
corresponding period in 2012. The unit production cost declined 3 percent in
the first quarter of 2013 compared to the corresponding period in 2012.
Production in the quarter consisted of enrichment of depleted uranium under
the one-year multi-party arrangement with Energy Northwest, the Bonneville
Power Administration, the Tennessee Valley Authority (TVA) and DOE. The
average cost per megawatt hour declined 3 percent in the three months ended
March 31, 2013, compared to the corresponding period in 2012, reflecting lower
unit power costs commencing in June 2012 under the amended TVA power contract.

We historically have purchased approximately 5.5 million SWU per year under
the Megatons to Megawatts program, and under our agreed upon shipping
schedule, there were no deliveries in the first quarter of either 2012 or
2013.

Cost of sales for contract services was $3.3 million in the first quarter, a
decrease of $0.8 million over the same period last year.

The gross profit for the first quarter was $13.3 million, a decrease of $23.4
million over the same period in 2012. The gross profit margin for the 2013
period was 4.2 percent compared to 6.8 percent in the first quarter of 2012.
Gross profit for the LEU segment declined $22.7 million due to lower SWU sales
volume and lower unit profit margins.

Advanced Technology, Special Charges, Other Income and Interest

Advanced technology costs increased $22.6 million in the three months ended
March 31, 2013, compared to the corresponding period in 2012, reflecting
increased development activity in connection with the RD&D program. All
American Centrifuge project costs in both periods were expensed.

Selling, general and administrative expenses in the first quarter were $12.9
million, a decrease of $0.7 million over the same period in 2012, reflecting a
decrease of $1.1 million in salaries and other compensation partially offset
by an increase of $0.3 million in employee benefits costs.

Our business is in a state of significant transition. In early 2012, we
initiated an internal review of our organizational structure and engaged a
management consulting firm to support this review. We are also engaged with
our advisors and certain stakeholders on alternatives for a possible
restructuring of our balance sheet. Costs for these advisors totaled $2.4
million in the first quarter of 2013 compared to $4.5 million in the first
quarter of 2012. Additionally, a charge of $1.9 million was incurred in the
first quarter of 2012 for one-time termination benefits for affected employees
at our American Centrifuge design and engineering operations in Oak Ridge,
Tenn., and our headquarters operations located in Bethesda, Md.

DOE and USEC provide pro-rata cost sharing support for continued American
Centrifuge activities under our June 2012 cooperative agreement, as amended.
In the first quarter of 2013, DOE’s pro-rata share of 80 percent, or $47.6
million, for qualifying American Centrifuge expenditures is recognized as
other income in the three months ended March 31, 2013.

Interest expense was $13.3 million, an increase of $0.6 million in the three
months ended March 31, 2013, compared to the corresponding period in 2012. In
connection with amendments of our credit facility in March 2013 and March
2012, previously deferred financing costs of $1.7 million and $1.4 million
were expensed in the first quarters of 2013 and 2012, respectively.

Net Results from Continuing and Discontinued Operations

The net loss from continuing operations improved $5.6 million in the three
months ended March 31, 2013, compared to the corresponding period in 2012,
reflecting DOE’s pro-rata cost sharing support for the RD&D program included
in other income, partially offset by the after-tax effects of lower gross
profits and increased advanced technology costs.

USEC sold its NAC subsidiary on March 15, 2013, to Hitz Holdings U.S.A. Inc.
(Hitz), a subsidiary of Hitachi Zosen Corporation. Results of NAC operations
through the date of divestiture are presented under net income from
discontinued operations for the three months ended March 31, 2013 and 2012.
Net income from discontinued operations for the three months ended March 31,
2013, of $21.7 million includes USEC’s gain on the sale of $35.6 million,
representing the cash proceeds from the sale less the net carrying amount of
NAC assets and liabilities of $5.5 million (including goodwill of $6.8
million) and transaction costs of $2.1 million.

Cash Flow

At March 31, 2013, USEC had a cash balance of $71.9 million compared to $292.9
million at December 31, 2012, and $72.3 million at March 31, 2012. Cash flow
used by operations in the first quarter of 2013 was $175.3 million, compared
to cash flow provided by operations of $47.7 million in the previous year’s
period. Inventories declined $57.1 million in the three-month period due to
monetization of inventory produced in the prior year. Payment of the Russian
Contract payables balance of $209.8 million, for deliveries in prior periods,
was a significant use of cash flow in the three months ended March 31, 2013.

Cash proceeds on the sale of NAC of $39.9 million were received in the three
months ended March 31, 2013. On April 23, 2013, an additional $3.3 million in
cash proceeds on the sale of NAC were received representing the final
remaining purchase price adjustment.

On March 14, 2013, we amended our credit facility that was scheduled to mature
on May 31, 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) and matures on September 30, 2013.
USEC also repaid the $83.2 million outstanding on the term loan under its 2012
credit facility.

Paducah Plant Update

USEC enriches uranium at the Paducah Gaseous Diffusion Plant (GDP) that we
lease from DOE. We are currently continuing enrichment at the plant in support
of a multi-party arrangement to re-enrich DOE’s depleted uranium that expires
on May 31, 2013. We are preparing to transition our enrichment technology to
the American Centrifuge over the next several years, but managing this
transition has been made more challenging by the prolonged outage of more than
50 reactors in Japan and Germany. These shutdowns have significantly affected
the global supply and demand for LEU. An oversupply of nuclear fuel available
for sale has increased over time and has resulted in significant downward
pressure on market prices for LEU. These market conditions have challenged our
business, including efforts to continue enrichment at the Paducah GDP.

We are currently in discussions with potential interested parties for a
short-term extension of enrichment at the Paducah GDP beyond May 31, 2013.
However, we have no assurance that we will reach an agreement or other
arrangement to support continued enrichment beyond May 31. We also have no
assurance regarding the terms of any agreement that we may reach and the
impact of those terms on our results of operations.

A short-term extension of enrichment at Paducah beyond May 31 would be
expected to provide additional cash from operations during 2013 and to reduce
some transition expenses. However, such an extension may not produce the
anticipated cash or cost savings. The economics to us of any extension are
significantly challenged in light of current SWU market conditions and power
prices. If we do not reach an agreement, we expect to commence actions to
cease enrichment at the Paducah GDP in the near term. We are currently in
discussions with DOE regarding the timing of our de-lease and are seeking to
minimize our transition costs, which could be substantial. We are also seeking
to manage the impacts of the Paducah transition on our existing business.

American Centrifuge Update

We continued to make progress in demonstrating the American Centrifuge
technology in the first quarter of 2013. On April 3, 2013, USEC announced that
it has completed construction of its American Centrifuge commercial
demonstration cascade in Piketon, Ohio.This 120-machine cascade is the
centerpiece of the cooperative RD&D program. The objectives of the RD&D
program are to demonstrate the American Centrifuge technology through the
construction and operation of a commercial demonstration cascade and sustain
the domestic U.S. centrifuge technical and industrial base for national
security purposes and potential commercialization of the American Centrifuge
technology. This includes activities to reduce the technical risks and improve
the future prospects of deployment of the American Centrifuge technology.

Construction activities included preparing the cascade for machine
installation, making physical improvements to the facilities, removing
existing cascade support equipment and installing new infrastructure systems.
Cascade construction involved more than 300 workers, including many local
union tradesmen who worked more than 150,000 man-hours without a recordable
injury or lost-time accident. The RD&D program as a whole supports more than
1,100 jobs and utilizes more than 160 companies from 28 states.

With cascade construction complete, the project team will continue system
testing in preparation for formal integrated systems testing required before
the cascade becomes operational later this year. This will enable us to
demonstrate redundancy of the primary cascade support systems for commercial
plant operation and to complete integrated system testing against operational
requirements. We plan to incorporate the 120-machine cascade in the full
commercial plant of 96 identical cascades. We are also updating a
commercialization plan for the American Centrifuge project following the
completion of the RD&D program and working to improve our balance sheet to
position USEC financially to move forward as a stronger sponsor of the
American Centrifuge project. In 2013, we expect to update our application for
a $2 billion loan guarantee from DOE, obtain additional debt and equity
financing for the project and secure additional sales commitments. As part of
the commercialization effort, we expect to need additional investors in the
project, which would reduce our ownership in the project.

The cooperative agreement between USEC and DOE defines the scope, funding and
technical goals for the RD&D program. The program schedule runs from June 1,
2012, through December 31, 2013. The total investment in the program will be
up to $350 million, with DOE providing 80 percent, and USEC providing 20
percent of the total. 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. The amount of federal funding made available to date is expected to
fund RD&D program activities through June 15, 2013. The recently enacted
Fiscal Year 2013 continuing appropriations resolution included additional
funding for continued work on the RD&D program at an annual rate of $110
million, which is expected to fund the RD&D program through September 30,
2013. We have adjusted our program spending to accommodate changes to the
timing and amount of federal funding, and we remain on schedule and budget to
complete the RD&D program by the end of 2013. We will continue to work with
Congress and the Administration to fund the RD&D program through December 2013
and achieve the remaining program milestones.

The June 2012 cooperative agreement with DOE, as amended most recently on
March 15, 2013, includes technical milestones for the RD&D program. To date,
four milestones have been achieved and five remain. USEC recently achieved,
and on May 1, 2013, DOE certified satisfactory completion of two milestones
relating to (1) testing on extended feed rate range and (2) testing machine
performance parameters. Both tests demonstrated advanced design features and
robustness of the centrifuges to adverse operating conditions.

In addition, the cooperative agreement contains non-binding performance
indicators that are designed to be achieved throughout the RD&D program and
ensure that the RD&D program is on track to achieve the milestones and other
program objectives. Although the performance indicators are non-binding, the
failure to achieve a performance indicator could cause DOE to take actions
that are adverse to USEC. By manufacturing the 120 AC100 centrifuges required
for the demonstration cascade, the program has met the third out of five
performance indicators.

2013 Outlook Update

As previously noted, due to the uncertainties inherent in USEC’s period of
transition, we are limiting our guidance for USEC’s financial results and
operating metrics for 2013. We expect SWU deliveries in 2013 to be lower
compared to 2012. At this time, we are not updating the guidance provided in
the annual report on Form 10-K and year-end earnings news release of March 18,
2013.

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. As noted
earlier, appropriations are in place to fund the RD&D program through
September 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:

  *Our ability to reach an agreement for a potential short-term extension of
    enrichment at the Paducah GDP beyond May 31, 2013, and the terms of any
    such agreement;
  *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.

Continued Listing Standards Notice from NYSE

USEC has been notified by the New York Stock Exchange that the Company has
fallen below the exchange’s continued listing standards related to minimum
market capitalization in combination with stockholders’ equity.

The Company’s common stock continues to trade on the NYSE. USEC is below the
continued listing criteria established by the NYSE because the Company’s
market capitalization has averaged less than $50 million in a recent
consecutive 30 trading-day period at the same time that stockholders’ equity
has been below $50 million. USEC reported a stockholders’ deficit of $472.9
million as of December 31, 2012, following the expense of $1.1 billion of
previously capitalized work in process costs related to the American
Centrifuge project.

USEC has notified the NYSE that it will submit a plan to restore compliance.
The Company has 45 days from receipt of the April 30, 2013, notice from the
NYSE to submit a plan, and the NYSE has 45 days from receipt of the plan to
accept or reject it. If the plan is accepted, the Company has up to 18 months
to demonstrate compliance with the NYSE continued listing standards. During
this 18-month period, USEC common shares will continue to be listed and traded
on the NYSE, subject to continued periodic review by the NYSE of USEC’s
progress with respect to its plan and compliance with other NYSE continued
listing standards.

The average closing price of the Company’s common stock also continues to be
below the NYSE’s continued listing criteria relating to minimum share price.
To cure this condition, the Company intends to seek stockholder approval for a
reverse stock split at its next annual meeting of stockholders, scheduled for
June 27, 2013. If the Company’s stockholders approve the reverse stock split
and USEC effectuates the reverse stock split to cure the condition, the
condition will be deemed cured if USEC’s closing share price promptly exceeds
$1.00 per share, and the price remains at or above that level for at least the
following 30 trading days.

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 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 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 andBabcock & Wilcox Investment Company ; 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 uncertainty regarding our
ability to continue as a going concern on our liquidity and prospects; the
expiration of our agreement with Energy Northwest on May 31, 2013 and
uncertainty regarding our ability to reach an agreement with potential
interested parties for a short term extension of enrichment at the Paducah
gaseous diffusion plant beyond May 31, 2013 and the impact of actions we will
need to take in the near term if an agreement is not reached; the continued
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 loan guarantee from
DOE 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 terminate or exercise its remedies under the RD&D cooperative
agreement or 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; risks related to our inability to repay our
convertible notes at maturity in October 2014; restrictions in our credit
facility that may impact our operating and financial flexibility; our
dependence on deliveries of LEU from Russia under a commercial agreement with
a Russian government entity known as Techsnabexport 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 the Russian Supply Agreement into the United States and other countries;
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 and quarterly reports on Form 10-Q,
which are available on our website at www.usec.com. 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.

                                                       
USEC Inc.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(millions, except per share data)
                                                         
                                                         Three Months Ended
                                                         March 31,
                                                          2013     2012  
Revenue:
Separative work units                                    $ 290.2     $ 537.9
Uranium                                                    27.6        -
Contract services                                         2.6       4.1   
Total Revenue                                              320.4       542.0
Cost of Sales:
Separative work units and uranium                          303.8       501.2
Contract services                                         3.3       4.1   
Total Cost of Sales                                       307.1     505.3 
Gross profit                                               13.3        36.7
Advanced technology costs                                  59.3        36.7
Selling, general and administrative                        12.9        13.6
Special charge for workforce reductions and advisory       2.4         6.4
costs
Other (income)                                            (47.6 )    -     
Operating (loss)                                           (13.7 )     (20.0 )
Interest expense                                           13.3        12.7
Interest (income)                                         (0.3  )    (0.1  )
(Loss) from continuing operations before income taxes      (26.7 )     (32.6 )
Provision (benefit) for income taxes                      (3.0  )    (3.3  )
Net (loss) from continuing operations                      (23.7 )     (29.3 )
Net income from discontinued operations                   21.7      0.5   
Net (loss)                                               $ (2.0  )   $ (28.8 )
                                                                     
Net (loss) from continuing operations per share –        $ (.19  )   $ (.24  )
basic and diluted
Net (loss) per share – basic and diluted                 $ (.02  )   $ (.24  )
Weighted-average number of shares outstanding – basic      123.1       122.3
and diluted

                                                               
USEC Inc.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
(millions)
                                                                  
                                                    March 31,     December 31,
                                                     2013         2012    
ASSETS
Current Assets
Cash and cash equivalents                           $ 71.9        $  292.9
Restricted cash                                       15.1           -
Accounts receivable, net                              153.2          134.8
Inventories                                           1,060.8        1,593.2
Deferred costs associated with deferred revenue       106.2          116.8
Other current assets                                 22.2         19.2    
Total Current Assets                                  1,429.4        2,156.9
Property, Plant and Equipment, net                    43.9           51.0
Other Long-Term Assets
Deposits for surety bonds                             22.6           22.3
Goodwill                                              -              6.8
Other assets                                         28.9         29.4    
Total Other Long-Term Assets                         51.5         58.5    
Total Assets                                        $ 1,524.8    $  2,266.4 
                                                                  
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued liabilities            $ 139.0       $  145.8
Payables under Russian Contract                       -              209.8
Inventories owed to customers and suppliers           474.7          950.0
Deferred revenue and advances from customers          156.8          125.5
Credit facility term loan                             -              83.2
Convertible preferred stock                          103.7        100.5   
Total Current Liabilities                             874.2          1,614.8
Long-Term Debt                                        530.0          530.0
Other Long-Term Liabilities
Postretirement health and life benefit                210.4          207.2
obligations
Pension benefit liabilities                           322.4          321.7
Other liabilities                                    57.4         65.6    
Total Other Long-Term Liabilities                     590.2          594.5
Stockholders’ Equity (Deficit)
Total Liabilities and Stockholders’ Equity           (469.6  )     (472.9  )
(Deficit)
                                                    $ 1,524.8    $  2,266.4 

                                                     
USEC Inc.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(millions)
                                                       
                                                       Three Months Ended
                                                       March 31,
                                                        2013      2012   
Cash Flows from Operating Activities
Net (loss)                                             $ (2.0   )   $ (28.8  )
Adjustments to reconcile net (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization                            9.4          10.2
Deferred income taxes                                    (2.6   )     (2.3   )
Convertible preferred stock dividends                    3.2          2.9
payable-in-kind
Gain on sale of subsidiary                               (35.6  )     -
Changes in operating assets and liabilities:
Accounts receivable – (increase)                         (15.1  )     (36.0  )
Inventories, net – decrease                              57.1         347.8
Payables under Russian Contract – (decrease)             (209.8 )     (206.9 )
Deferred revenue, net of deferred costs – increase       41.9         (1.6   )
(decrease)
Accounts payable and other liabilities – increase        (3.4   )     2.3
(decrease)
Accrued depleted uranium disposition – (decrease)        -            (45.2  )
Restricted cash – (increase)                             (15.1  )     -
Other, net                                              (3.3   )    5.3    
Net Cash Provided by (Used in) Operating Activities     (175.3 )    47.7   
                                                                    
Cash Flows Provided by (Used in) Investing
Activities
Capital expenditures                                     -            (2.9   )
Deposits for surety bonds                                (0.3   )     -
Proceeds from sale of subsidiary                        39.9       -      
Net Cash Provided by (Used in) Investing Activities     39.6       (2.9   )
                                                                    
Cash Flows Used in Financing Activities
Borrowings under revolving credit facility               -            96.5
Repayments under revolving credit facility               -            (96.5  )
Repayment of credit facility term loan                   (83.2  )     -
Payments for deferred financing costs                    (2.0   )     (9.7   )
Common stock issued (purchased), net                    (0.1   )    (0.4   )
Net Cash (Used in) Financing Activities                 (85.3  )    (10.1  )
Net Increase (Decrease)                                  (221.0 )     34.7
Cash and Cash Equivalents at Beginning of Period        292.9      37.6   
Cash and Cash Equivalents at End of Period             $ 71.9      $ 72.3   
Supplemental Cash Flow Information:
Interest paid                                          $ 3.2        $ 3.0
Income taxes paid, net of refunds                        0.4          0.3

Contact:

USEC Inc.
Investors: Steven Wingfield, 301-564-3354
Media: Paul Jacobson, 301-564-3399