-
Net loss of $28 million on lower sales volume and significant
non-production costs
-
Oak Ridge National Laboratory exercises option to extend
American Centrifuge demonstration program into 2015
-
Chapter 11 voting concludes; Confirmation hearing scheduled for
September 5
BETHESDA, Md.--(BUSINESS WIRE)--Aug. 13, 2014--
USEC Inc. (NYSE:USU) today reported a net loss of $28.0 million for the
quarter ended June 30, 2014, compared to a net loss of $40.9 million for
the second quarter of 2013. For the six months ended June 30, 2014, USEC
reported a loss of $78.8 million compared to $42.9 million in the same
period of 2013.
The financial results for the second quarter of 2014 reflect a 63
percent reduction in revenue from the low enriched uranium (LEU) segment
compared to the same period in 2013 following the cessation of
enrichment at the Paducah Gaseous Diffusion Plant (GDP) in the second
quarter of 2013. The net loss was primarily driven by lower sales volume
and non-production expenses related to transition activities at the
Paducah GDP as USEC prepares the facility for an anticipated return to
the Department of Energy (DOE) in October. Other factors affecting
financial results for the quarter were expenses for our reorganization
efforts, workforce reductions, advisory costs and advanced technology
costs related to demonstration of the American Centrifuge technology.
“During the second quarter, we continued to execute our Paducah
transition plan to return the facility to DOE in October, we delivered
LEU to our customers on time and in specification, and we earned a gross
profit,” said John K. Welch, USEC president and chief executive officer.
“Over the past year, the non-production costs related to preparing the
Paducah GDP for return have weighed on our profitability, but we are
nearing the conclusion of this process.
“We have also been focused on successfully concluding the Chapter 11
process in the near term. The voting period for those investors holding
USEC convertible notes and preferred equity ended on August 11, which is
another important milestone in the process. Voting results are being
certified and will be filed with the Bankruptcy Court in advance of a
confirmation hearing that is scheduled for September 5. We anticipate
emerging from bankruptcy protection shortly thereafter,” Welch said.
Revenue
Revenue for the second quarter of 2014 was $121.2 million, a decrease of
$163.6 million or 57 percent compared to the same quarter of 2013. In
the six-month period ending June 30, 2014, revenue was $269.8 million, a
decrease of $335.4 million or 55 percent from the same period in 2013.
The volume of separative work units (SWU) sales declined 65 percent in
the three-month period and 56 percent in the six-month period reflecting
the variability in timing of utility customer orders and the expected
decline in SWU deliveries in 2014 compared to 2013. The average price
billed to customers for sales of SWU increased 8 percent in the
three-month period and 1 percent in the six-month period reflecting the
particular contracts under which SWU were sold during the period.
Revenue from the contract services segment increased significantly in
both the second quarter and the six-month period of 2014 compared to the
prior year, reflecting $13.5 million for American Centrifuge work
performed under the American Centrifuge Technology Demonstration and
Operations (ACTDO) Agreement with Oak Ridge National Laboratory (ORNL)
beginning May 1, 2014.
In a number of sales transactions, USEC transfers title and collects
cash from customers but does not recognize the revenue until the LEU is
physically delivered. At June 30, 2014, deferred revenue totaled $83.8
million compared to $195.9 million at December 31, 2013. The gross
profit associated with deferred revenue as of June 30, 2014, was $19.7
million.
Cost of Sales and Gross Profit Margin
Cost of sales for the quarter ended June 30, 2014, was $117.7 million, a
decrease of $214.0 million or 65 percent compared to the corresponding
period in 2013. For the six-month period of 2014, cost of sales was
$287.2 million, a reduction of $351.6 million or 55 percent compared to
the same period in 2013 due to lower SWU sales volume. Non-production
expenses are included in cost of sales during both 2013 and 2014
periods, but non-production expense declined 80 percent in the second
quarter of 2014 and 35 percent in the six-month period of 2014 compared
to the corresponding periods of 2013.
Cost of sales per SWU, excluding non-production expenses, increased 1
percent in the three months ended June 30, 2014, and decreased 3 percent
in the six months ended June 30, 2014, compared to the corresponding
periods in 2013. Approximately one-half of our sales in the six months
ended June 30, 2014 were derived from previously deferred sales, whereby
customers made advance payments to be applied against future deliveries.
The unit cost per SWU for these sales reflects the average inventory
cost when the customer took title to the SWU. These costs were
accumulated in deferred costs and are now recognized as cost of sales as
the SWU is delivered. Cost of sales for SWU reflects monthly moving
average inventory costs based on historic production and purchase costs.
As we accelerated the expected productive life of plant assets and
ceased enrichment at the Paducah GDP in May 2013, we have incurred a
number of expenses unrelated to production that have been charged
directly to cost of sales. Non-production expenses totaled $14.3 million
and $49.2 million in the three and six months ended June 30, 2014,
compared to $70.0 and $75.7 million in the corresponding periods in 2013.
Cost of sales for the contract services segment increased $13.4 million
in the three months and $14.3 million in the six months ended June 30,
2014, compared to the corresponding periods in 2013, primarily due to
American Centrifuge work performed under the ACTDO Agreement beginning
May 1, 2014, as well as increased absorption of fixed costs for
government services contracts at the Paducah site.
Gross profit for the LEU segment increased $50.6 million in the
three-month period and $16.9 million in the six-month period primarily
due to decreases in non-production expenses partially offset by lower
SWU sales volume. The three-month period benefited from higher average
SWU prices and the six-month period benefited from lower average costs
per SWU, as described above.
Gross profit increased $50.4 million in the three months and $16.2
million in the six months ended June 30, 2014, compared to the
corresponding periods in 2013. Our margin was 2.9 percent in the three
months ended June 30, 2014, compared to (16.5 percent) in the
corresponding period in 2013, and (6.4 percent) in the six months ended
June 30, 2014, compared to (5.6 percent) in the corresponding period in
2013.
Advanced Technology, Other Income and Special Charges
Advanced technology costs were $18.0 million in the three months ended
June 30, 2014, a decrease of $28.2 million compared to the corresponding
period in 2013. During the six month period ended June 30, 2014,
advanced technology costs were $51.3 million, a decrease of $54.2
million. The lower costs in both 2014 periods reflect a decrease in
development activity under the Cooperative Agreement with DOE. Costs in
the corresponding period in 2013 included construction of the American
Centrifuge commercial demonstration cascade that was completed in April
2013.
Funding for American Centrifuge activities was previously provided under
the Cooperative Agreement, which provided for 80 percent DOE and 20
percent USEC cost sharing for work performed during the period June 1,
2012 through April 30, 2014, when the agreement expired in accordance
with its terms. DOE’s share of qualifying American Centrifuge
expenditures is recognized as other income. USEC reported $34.6 million
in other income, which was primarily payment for DOE’s share of
qualifying expenditures, during the six months ended June 30, 2014, a
decrease of $53.7 million compared to the same period in 2013.
On May 1, 2014, we signed the ACTDO Agreement with UT-Battelle, the
management and operating contractor for ORNL, for continued cascade
operations and continuation of core American Centrifuge research and
technology activities and the furnishing of related reports to ORNL. The
scope of the overall work under the ACTDO Agreement is reduced from the
scope of work that was being conducted by USEC under the Cooperative
Agreement. Revenue and cost of sales for work that USEC performs under
the fixed-price ACTDO Agreement as a contractor to ORNL is reported in
the contract services segment. On July 31, 2014, ORNL exercised its
option to extend the period of performance for the ACTDO Agreement by an
additional six months to March 31, 2015. The agreement also provides
ORNL with one additional option to extend the agreement by six months to
September 30, 2015.
American Centrifuge costs incurred by USEC that are outside of the ACTDO
Agreement are included in advanced technology costs. USEC incurred $7.0
million in May-June 2014 for certain demobilization and maintenance
costs related to American Centrifuge that are included in advanced
technology costs in the three and six months ended June 30, 2014.
Selling, general and administrative expenses declined $1.8 million in
the three months and $3.0 million in the six months ended June 30, 2014,
compared to the corresponding periods in 2013. The lower SG&A expense
reflects declines in compensation and benefit costs of $1.0 million in
the three-month period and $2.5 million in the six-month period,
resulting from reduced staffing levels and declines in consulting costs.
Special charges in the three and six months ended June 30, 2014 consist
of charges for termination benefits for workforce reductions in American
Centrifuge development and headquarters operations, as well as severance
accrual refinements for Paducah workforce reductions occurring in 2014.
The Framework Agreement signed with DOE on June 17 establishes the
timing for an orderly de-lease of the Paducah site. Special charges for
termination benefits consist of $4.1 million in the three-month period
and $4.2 million in the six-month period, less amounts paid by USEC and
invoiced to DOE for its portion of Paducah employee severance of $1.6
million in the three-month period and $2.2 million in the six-month
period.
Cumulative charges for termination benefits since ceasing enrichment
total $29.4 million, less $3.4 million paid by USEC and invoiced to DOE.
As of June 30, 2014, workforce reductions total 668 employees at the
Paducah GDP, including 466 employees in 2014, and 25 employees at
American Centrifuge and headquarters.
Beginning in the first quarter of 2014, expenses, gains and losses
directly associated with our reorganization are reported as
Reorganization Items, Net. Costs for advisors related to our bankruptcy
filing totaled $4.7 million in the three months and $11.9 million in the
six months ended June 30, 2014.
Cash Flow
At June 30, 2014, USEC had a cash balance of $123.3 million compared to
$314.2 million at December 31, 2013, and $194.7 million at June 30,
2013. Cash flow used by operations in the first half of 2014 was $193.4
million, compared to cash flow used by operations of $48.8 million in
the corresponding period of 2013. The net loss in the six-month period
ended June 30, 2014, and payment in 2014 of the Russian Contract
payables balance of $340.7 million for deliveries in 2013 was a
significant use of cash flow, as was the net reduction in accounts
payable and accrued liabilities by $34.8 million due to reduced
operational activity. Inventories declined $127.7 million in the
six-month period of 2014 compared to a reduction of $24.0 million in the
same period of 2013 due to monetization of inventory purchased or
produced in prior periods.
2014 Outlook Update
USEC is going through a period of transition during 2014, and we are:
-
Taking steps to strengthen our financial structure by addressing
balance sheet issues through a Chapter 11 filing with the U.S.
Bankruptcy Court so that we can emerge as a stronger sponsor of the
American Centrifuge project;
-
Executing our contract with ORNL to continue to research, development
and demonstration of the American Centrifuge technology through the
ACTDO Agreement;
-
Completing the transition of the Paducah site, and appropriately
reducing the size of our corporate organization; and
-
Preparing our financial statements to reflect changing the historical
book basis of the assets and liabilities of the Company to a new basis
of accounting upon emergence from Chapter 11.
Given these transitions and the uncertain and incremental nature of
federal funding for work under the ACTDO Agreement, our guidance for
USEC financial results and metrics for 2014 will continue to be limited.
In 2013, uranium enrichment ceased at the Paducah plant and the 20-year
Megatons to Megawatts program successfully concluded. During a five-year
period from 2008 to 2012, our average sales volume was approximately 11
million SWU annually. In 2013, our sales volume declined to a level that
was approximately 70 percent from that average. In 2014, we expect our
sales volume to decline to a level that is approximately 30 percent of
that historic average with our sources of supply consisting of LEU from
existing inventory, purchases from Russia under the Russian Supply
Agreement and other potential supplies. We expect our sales volume going
forward to be at levels consistent with our reduced sources of supply.
Our cash balance at September 30, 2014, is expected to be greater than
$50 million, and we expect to end 2014 with a cash balance greater than
$150 million.
Additional Information
USEC plans to file its quarterly report on Form 10-Q with the Securities
and Exchange Commission today. This report will be available in the
Investor Relations section of the USEC website, www.usec.com.
During the period its case is pending in Bankruptcy Court, USEC will not
hold quarterly telephonic conference calls with investors.
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 the impact of and risks related to USEC
Inc.'s “pre-arranged” case under Chapter 11 of the bankruptcy code
including risks related to obtaining approval and confirmation of USEC
Inc.’s plan of reorganization, the impact of any delay or inability in
obtaining such confirmation, the impact of a potential de-listing of our
common stock on the NYSE, and the impact of our restructuring on the
holders of our common stock, preferred stock and convertible notes;
risks related to the ongoing transition of our business, including the
impact of our ceasing enrichment at the Paducah gaseous diffusion plant
and uncertainty regarding our ability to deploy the American Centrifuge
project; uncertainty regarding funding for the American Centrifuge
project and the potential for a demobilization or termination of the
American Centrifuge project if additional government funding is not
provided during the term of the agreement with UT-Battelle, LLC, the
management and operating contractor for Oak Ridge National Laboratory
("ORNL") for continued research, development and demonstration of the
American Centrifuge technology (the "ACTDO Agreement"), including for
any option periods, or upon completion of such agreement; risks related
to our ability to perform the work required under the ACTDO Agreement at
a cost that does not exceed the firm fixed funding provided thereunder;
the impact of actions we have taken or may take (including as a result
of the reduction in scope of work under the ACTDO Agreement) to reduce
spending on the American Centrifuge project, including the potential
loss of key suppliers and employees, impacts to cost and schedule and
the ability to remobilize for commercial deployment of the American
Centrifuge Plant, impacts on our liquidity as a result of demobilization
or termination liabilities, and potential impacts on our proposed plan
of reorganization; risks related to the underfunding of our defined
benefit pension plans and potential actions the Pension Benefit Guaranty
Corporation could pursue in connection with ceasing enrichment at the
gaseous diffusion plants or with any demobilization or termination of
the American Centrifuge project or otherwise including the involuntary
termination of the plans, imposition of liens or requiring additional
funding; the impact of uncertainty regarding our ability to continue as
a going concern on our liquidity and prospects; our ability to implement
the agreement with the U.S. Department of Energy (“DOE”) regarding the
transition of the Paducah gaseous diffusion plant and uncertainties
regarding the transition costs and other impacts of USEC ceasing
enrichment at the Paducah gaseous diffusion plant and returning the
plant to DOE; 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 low enriched
uranium (“LEU”); the impact of enrichment market conditions, increased
project costs and other factors on the economic viability of the
American Centrifuge project without additional government support and on
our ability to finance the project and the potential for a
demobilization or termination of the project; uncertainty regarding our
ability to achieve targeted performance over the life of the American
Centrifuge Plant which could affect the overall economics of the
American Centrifuge Plant; uncertainty concerning the ultimate success
of our efforts to obtain a loan guarantee from DOE and/or other
financing for the American Centrifuge project or additional government
support for the project and the timing and terms thereof; uncertainty
concerning customer actions under current contracts and in future
contracting due to the delay and uncertainty in deployment of the
American Centrifuge technology and/or as a result of changes required
due to our cessation of enrichment at Paducah; the dependency of
government funding or other government support for the American
Centrifuge project on Congressional appropriations or on actions by DOE
or Congress; potential changes in our anticipated ownership of or role
in the American Centrifuge project, including as a result of our role as
a subcontractor to ORNL or as a result of the need to raise additional
capital to finance the project in the future; the potential for DOE to
seek to terminate or exercise its remedies under the 2002 DOE-USEC
agreement, or refuse to consent to or object to the assumption of such
agreement by USEC in the Chapter 11 case or to require modifications to
such agreement that are materially adverse to USEC’s interests; changes
in U.S. government priorities and the availability of government funding
or support, including loan guarantees; risks related to our ability to
manage our liquidity without a credit facility; our dependence on
deliveries of LEU from Russia under a commercial supply agreement (the
“Russian Supply Agreement”) with a Russian government entity known as
Techsnabexport (“TENEX”) and limitations on our ability to import the
Russian LEU we buy under the Russian Supply Agreement into the United
States and other countries; risks related to actions that may be taken
by the U.S. Government, the Russian Government or other governments that
could affect our ability or the ability of TENEX to perform under the
Russian Supply Agreement, including the imposition of sanctions,
restrictions or other requirements; risks related to our ability to sell
the LEU we procure under our fixed purchase obligations under the
Russian Supply Agreement; the decrease or elimination of duties charged
on imports of foreign-produced LEU; 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 agreements with the U.S. government; risks related to delays in
payment for our contract services work performed for DOE, including our
ability to resolve certified claims for payment filed by USEC under the
Contracts Dispute Act; 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
timing of recognition of previously deferred revenue; and other risks
and uncertainties discussed in this and our other filings with the
Securities and Exchange Commission, including our Annual Report on Form
10-K for the year ended December 31, 2013 (“10-K”). Revenue and
operating results can fluctuate significantly from quarter to quarter,
and in some cases, year to year. Readers are urged to carefully review
and consider the various disclosures made in this report and in our
other filings with the Securities and Exchange Commission that attempt
to advise interested parties of the risks and factors that may affect
our business. We do not undertake to update our forward-looking
statements except as required by law.
|
|
|
USEC Inc.
|
|
(DEBTOR-IN-POSSESSION)
|
|
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
(millions, except per share data)
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Separative work units
|
|
$
|
104.5
|
|
|
$
|
267.4
|
|
|
$
|
250.1
|
|
|
$
|
557.6
|
|
|
Uranium
|
|
|
—
|
|
|
|
13.9
|
|
|
|
—
|
|
|
|
41.5
|
|
|
Contract services
|
|
|
16.7
|
|
|
|
3.5
|
|
|
|
19.7
|
|
|
|
6.1
|
|
|
Total revenue
|
|
|
121.2
|
|
|
|
284.8
|
|
|
|
269.8
|
|
|
|
605.2
|
|
|
Cost of Sales:
|
|
|
|
|
|
|
|
|
|
Separative work units and uranium
|
|
|
100.8
|
|
|
|
328.2
|
|
|
|
266.1
|
|
|
|
632.0
|
|
|
Contract services
|
|
|
16.9
|
|
|
|
3.5
|
|
|
|
21.1
|
|
|
|
6.8
|
|
|
Total cost of sales
|
|
|
117.7
|
|
|
|
331.7
|
|
|
|
287.2
|
|
|
|
638.8
|
|
|
Gross profit (loss)
|
|
|
3.5
|
|
|
|
(46.9
|
)
|
|
|
(17.4
|
)
|
|
|
(33.6
|
)
|
|
Advanced technology costs
|
|
|
18.0
|
|
|
|
46.2
|
|
|
|
51.3
|
|
|
|
105.5
|
|
|
Selling, general and administrative
|
|
|
10.1
|
|
|
|
11.9
|
|
|
|
21.8
|
|
|
|
24.8
|
|
|
Special charges for workforce reductions and advisory costs
|
|
|
2.5
|
|
|
|
3.7
|
|
|
|
2.0
|
|
|
|
6.1
|
|
|
Other (income)
|
|
|
(8.4
|
)
|
|
|
(40.7
|
)
|
|
|
(34.6
|
)
|
|
|
(88.3
|
)
|
|
Operating (loss)
|
|
|
(18.7
|
)
|
|
|
(68.0
|
)
|
|
|
(57.9
|
)
|
|
|
(81.7
|
)
|
|
Interest expense
|
|
|
4.7
|
|
|
|
9.3
|
|
|
|
9.3
|
|
|
|
22.6
|
|
|
Interest (income)
|
|
|
—
|
|
|
|
(0.1
|
)
|
|
|
(0.4
|
)
|
|
|
(0.4
|
)
|
|
Reorganization items, net
|
|
|
4.7
|
|
|
|
—
|
|
|
|
13.1
|
|
|
|
—
|
|
|
(Loss) from continuing operations before income taxes
|
|
|
(28.1
|
)
|
|
|
(77.2
|
)
|
|
|
(79.9
|
)
|
|
|
(103.9
|
)
|
|
Provision (benefit) for income taxes
|
|
|
(0.1
|
)
|
|
|
(36.3
|
)
|
|
|
(1.1
|
)
|
|
|
(39.3
|
)
|
|
Net (loss) from continuing operations
|
|
|
(28.0
|
)
|
|
|
(40.9
|
)
|
|
|
(78.8
|
)
|
|
|
(64.6
|
)
|
|
Net income from discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21.7
|
|
|
Net (loss)
|
|
$
|
(28.0
|
)
|
|
$
|
(40.9
|
)
|
|
$
|
(78.8
|
)
|
|
$
|
(42.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
Net (loss) from continuing operations per share – basic and diluted
|
|
$
|
(5.71
|
)
|
|
$
|
(8.35
|
)
|
|
$
|
(16.08
|
)
|
|
$
|
(13.18
|
)
|
|
Net (loss) per share – basic and diluted
|
|
$
|
(5.71
|
)
|
|
$
|
(8.35
|
)
|
|
$
|
(16.08
|
)
|
|
$
|
(8.76
|
)
|
|
Weighted-average number of shares outstanding – basic and diluted
|
|
|
4.9
|
|
|
|
4.9
|
|
|
|
4.9
|
|
|
|
4.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USEC Inc.
|
|
(DEBTOR-IN-POSSESSION)
|
|
CONSOLIDATED CONDENSED BALANCE SHEETS
|
|
(Unaudited)
|
|
(millions)
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
2014
|
|
2013
|
|
ASSETS
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
123.3
|
|
|
$
|
314.2
|
|
|
Accounts receivable, net
|
|
|
29.7
|
|
|
|
163.0
|
|
|
Inventories
|
|
|
506.8
|
|
|
|
967.6
|
|
|
Deferred costs associated with deferred revenue
|
|
|
64.1
|
|
|
|
165.5
|
|
|
Other current assets
|
|
|
21.1
|
|
|
|
21.7
|
|
|
Total current assets
|
|
|
745.0
|
|
|
|
1,632.0
|
|
|
Property, plant and equipment, net
|
|
|
3.9
|
|
|
|
7.9
|
|
|
Deposits for surety bonds
|
|
|
37.6
|
|
|
|
39.8
|
|
|
Other long-term assets
|
|
|
21.2
|
|
|
|
25.8
|
|
|
Total Assets
|
|
$
|
807.7
|
|
|
$
|
1,705.5
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
78.7
|
|
|
$
|
114.5
|
|
|
Payables under Russian Contract
|
|
|
—
|
|
|
|
340.7
|
|
|
Inventories owed to customers and suppliers
|
|
|
166.6
|
|
|
|
499.7
|
|
|
Deferred revenue
|
|
|
83.8
|
|
|
|
195.9
|
|
|
Convertible senior notes
|
|
|
—
|
|
|
|
530.0
|
|
|
Convertible preferred stock
|
|
|
—
|
|
|
|
113.9
|
|
|
Total current liabilities
|
|
|
329.1
|
|
|
|
1,794.7
|
|
|
Postretirement health and life benefit obligations
|
|
|
200.6
|
|
|
|
195.0
|
|
|
Pension benefit liabilities
|
|
|
104.8
|
|
|
|
121.2
|
|
|
Other long-term liabilities
|
|
|
51.2
|
|
|
|
52.8
|
|
|
Liabilities subject to compromise
|
|
|
658.2
|
|
|
|
—
|
|
|
Total Liabilities
|
|
|
1,343.9
|
|
|
|
2,163.7
|
|
|
Stockholders’ Equity (Deficit)
|
|
|
(536.2
|
)
|
|
|
(458.2
|
)
|
|
Total Liabilities and Stockholders’ Equity (Deficit)
|
|
$
|
807.7
|
|
|
$
|
1,705.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USEC Inc.
|
|
(DEBTOR-IN-POSSESSION)
|
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
(millions)
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2014
|
|
2013
|
|
Cash Flows from Operating Activities
|
|
|
|
|
|
Net (loss)
|
|
$
|
(78.8
|
)
|
|
$
|
(42.9
|
)
|
|
Adjustments to reconcile net (loss) to net cash (used in) operating
activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
4.1
|
|
|
|
16.4
|
|
|
Reorganization and special charge items, non-cash
|
|
|
3.1
|
|
|
|
1.7
|
|
|
Transfers and retirements of machinery and equipment
|
|
|
—
|
|
|
|
19.3
|
|
|
Convertible preferred stock dividends payable-in-kind
|
|
|
—
|
|
|
|
6.5
|
|
|
Gain on sales of assets and subsidiary
|
|
|
(0.9
|
)
|
|
|
(35.6
|
)
|
|
Inventory valuation adjustments
|
|
|
—
|
|
|
|
10.0
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable – (increase) decrease
|
|
|
137.9
|
|
|
|
(6.1
|
)
|
|
Inventories, net – decrease
|
|
|
127.7
|
|
|
|
24.0
|
|
|
Payables under Russian Contract – (decrease)
|
|
|
(340.7
|
)
|
|
|
(32.5
|
)
|
|
Deferred revenue, net of deferred costs – increase (decrease)
|
|
|
(10.8
|
)
|
|
|
37.6
|
|
|
Accounts payable and other liabilities – (decrease)
|
|
|
(34.8
|
)
|
|
|
(44.3
|
)
|
|
Other, net
|
|
|
(0.2
|
)
|
|
|
(2.9
|
)
|
|
Net Cash (Used in) Operating Activities
|
|
|
(193.4
|
)
|
|
|
(48.8
|
)
|
|
|
|
|
|
|
|
Cash Flows Provided by Investing Activities
|
|
|
|
|
|
Deposits for surety bonds - net (increase) decrease
|
|
|
2.2
|
|
|
|
(7.1
|
)
|
|
Proceeds from sales of assets and subsidiary
|
|
|
0.4
|
|
|
|
43.2
|
|
|
Net Cash Provided by Investing Activities
|
|
|
2.6
|
|
|
|
36.1
|
|
|
|
|
|
|
|
|
Cash Flows Used in Financing Activities
|
|
|
|
|
|
Repayment of credit facility term loan
|
|
|
—
|
|
|
|
(83.2
|
)
|
|
Payments for deferred financing costs
|
|
|
—
|
|
|
|
(2.1
|
)
|
|
Common stock issued (purchased), net
|
|
|
(0.1
|
)
|
|
|
(0.2
|
)
|
|
Net Cash (Used in) Financing Activities
|
|
|
(0.1
|
)
|
|
|
(85.5
|
)
|
|
Net (Decrease)
|
|
|
(190.9
|
)
|
|
|
(98.2
|
)
|
|
Cash and Cash Equivalents at Beginning of Period
|
|
|
314.2
|
|
|
|
292.9
|
|
|
Cash and Cash Equivalents at End of Period
|
|
$
|
123.3
|
|
|
$
|
194.7
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
Interest paid
|
|
$
|
—
|
|
|
$
|
11.8
|
|
|
Income taxes paid, net of refunds
|
|
|
—
|
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
Source: USEC Inc.
USEC Inc.
Investors:
Steven Wingfield, 301-564-3354
or
Media:
Paul
Jacobson, 301-564-3399
