Usec Inc

USEC Inc (United States) CREDIT SNAPSHOT

07/27/09

01 DEBT DISTRIBUTION 02 BONDS 03 INCOME STATEMENT 04 CASH FLOW 05 BALANCE SHEET 06 COVERAGE RATIOS 07 LEVERAGE RATIOS 08 ENTERPRISE VALUE 09 RETURN ON CAPITAL e-mail

[email protected]

10 RECOVERY & TANGIBLE NET WORTH

blog

www.zerohedge.com

11 ACCOUNTING RED FLAGS 12 LATEST SEC FILINGS 13 LEGAL DISCLAIMER

USU US Equity equity ticker:

USU US

capitalisation (USD in millions):

bond ticker:

USU

stock price

sector:

Basic Materials

shares outstanding (million)

subgroup:

Non-Ferrous Metals

market capitalisation (USD mm)

695

total debt

575

company description: USEC Inc. is a global energy company that supplies low enriched uranium ("LEU") for commercial nuclear power plants. The Company, through its subsidiary, operates a uranium enrichment facility in Kentucky.

USD 6.19 112.35

38

cash + marketable securities

0

other capital enterprise value (excl. cash)

1,233

current EV / TTM EBITDA

13.9x

The company's next report is expected for 8/5/2009 (type: Estimated). USEC Inc has 2,978 employees.

www.usec.com

The distribution of this report is restricted. Important information concerning these restrictions and legal disclaimer is set forth at the end of this report.

01

USEC Inc

www.zerohedge.com

issuer

coupon

mat

crncy

amount out (mm)

facility amount (mm)

issue date

NR

3.000%

10/1/2014

USD

575

-

9/28/2007

Bond, convertible, sr unsecured, fixed

DEBT DISTRIBUTION

bUSEC INC

Rtg debt type & details

38

Total amount out of instruments listed above (USD in MM)

575 Cash (MM)

Total debt (MM)

575 Total Number of Debt Instruments (for the issuer and its subs)

Loans

2

Bonds

700 600 500 400 300 200 100

Standard & Poor's Ratings

Moody's Ratings Outlook

NEG

NEG

09/26/07

Issuer

N/A

LT Foreign Currency Issuer

B-

06/27/06

Senior Secured Debt

N/A

LT Local Currency Issuer

B-

06/27/06

LT Corp Family

B3

04/11/07

ST Foreign Currency Issuer

NR

10/26/00

Bank Loan Debt

WR

10/16/02

ST Local Currency Issuer

NR

10/26/00

Caa2

04/11/07

Senior Unsecured Debt Subordinated Debt

N/A

Short Term

WR

04/11/07

03/31/00

Outlook

>2032

2032

2031

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

0

USEC Inc

www.zerohedge.com

USD in millions

Q1 08

Q3 08

Q2 08

Q4 08

Q1 09

05

06

07

08

03/31/09 590

432

506

1,559

1,849

1,928

1,615

542

354

463

1,330

1,512

1,641

1,386

88.7%

74.5%

91.8%

81.9%

91.7%

85.3%

81.8%

85.1%

85.8%

36

45

42

43

46

155

158

173

165

10.5%

17.9%

7.0%

9.9%

9.1%

10.0%

8.6%

9.0%

10.2%

14

30

13

42

3

109

215

154

99

6

5

4

2

1

40

15

17

17

-3

14

3

34

-4

34

164

98

47

4

11

8

25

-2

22

106

97

49

EBITDA Margin

3.9%

12.0%

2.2%

9.7%

0.7%

7.0%

11.7%

8.0%

6.1%

EBIT Margin

0.8%

7.6%

1.2%

8.2%

-0.7%

4.8%

9.7%

6.0%

4.0%

Q2 07

Q3 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

6.0%

11.7% 7.0%

04

4.8%

7.4%

03

5.2%

5.5%

02

3.4%

0.7%

4.2%

8.2%

9.7% 2.2%

12.0%

7.6%

3.9%

0.8%

7.5%

Q4 07

EBIT Margin

07

08

-9.2%

-4.6%

Q1 07

5.7%

12.8%

11.4%

7.8%

5.8%

13.7%

Q4 06

EBITDA Margin

2.9%

EBT Net Income

-0.7%

EBITDA Interest Expense

11.8%

USD in millions

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

03/31/09 TTM Revenues

08 12/31/08

1,806

1,844

1,800

1,615

1,777

1,559

1,849

1,928

132

172

103

99

88

109

215

154

99

41

42

39

34

31

35

37

40

34

TTM EBIT

91

129

64

64

58

74

179

115

64

TTM Interest Expense

20

23

23

17

12

40

15

17

17

TTM EBT

71

107

41

47

46

34

164

98

47

TTM Net Income

62

86

49

49

42

22

106

97

49

TTM EBITDA TTM D&A

TTM EBT

TTM Interest Expense

TTM D&A

37 15 42 40 41

23

20 107

17 34

23

17

12

40

41

47

46

34

Q3 08

Q4 08

Q1 09

05

71

Q1 08

Q2 08

35

39

31

164

34 98

17 47

06

07

08

Q2 08

Q4 08

Q1 09

05

99

Q3 08

154

215 109

Q1 08

88

08

172

07

132

06

99

05

103

Q1 09

1,928

Q4 08

1,849

Q3 08

1,615

TTM EBITDA EBITDA

1,559

1,800

Q2 08

1,777

1,844

Q1 08

1,615

1,806

TTM Revenues Revenues TTM

1,615

INCOME STATEMENT

SG&A % of Revenues

1.2%

COGS % of Revenues

6.1%

249 186

8.0%

343 305

9.7%

Revenues COGS

SG&A

TTM INCOME STATEMENT

12/31/08

4.0%

03

06

07

08

www.zerohedge.com

USEC Inc

04

USD in millions

Q1 08

Q2 08

Q4 08

Q3 08

Q1 09

05

06

07

03/31/09 CASH FLOW

Cash from Operations (CFO)

08 12/31/08

21

-191

-14

79

24

189

278

109

-105

-92

-108

-120

-158

-138

-26

-80

-170

-477

Free Cash Flow (CFO + CFI)

-71

-299

-134

-78

-114

163

199

-61

-582

Cash from Financing Activities

-10

-3

-11

-32

-97

-78

-286

776

-56

Cash from Investing (CFI)

Cash from Operations (CFO)

Free Cash Flow (CFO + CFI)

400 300 200 100 0 Q4 06

-100

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

02

03

04

05

06

07

08

-200 -300 -400 -500 -600 -700

USD in millions

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

03/31/09 TTM Cash from Operations (CFO)

42

22

29

-105

-102

189

278

109

-105

TTM Cash from Invest. (CFI)

-242

-328

-420

-477

-523

-26

-80

-170

-477

TTM Capex

-213

-299

-381

-442

-468

-26

-45

-137

-442

-41

-42

-39

-34

-31

-35

-37

-40

-34

-199

-306

-391

-582

-625

163

199

-61

-582

TTM D&A TTM Free Cash Flow (CFO + CFI) TTM Cash from Financing Activities TTM CFO - Capital Expenditures TTM CASH FLOW

08 12/31/08

766

762

-26

-56

-142

-78

-286

776

-56

-170

-277

-351

-547

-569

163

233

-28

-547

TTM EBITDA - Capital Expenditures

-81

-128

-278

-343

-379

83

171

17

-343

TTM EBITDA - Capex - Change in WC

-81

-127

-277

-343

-378

82

169

17

-343

TTM EBITDA-Capex-WC-CshIntEx-CshTax-CshDiv

-190

-255

-389

-408

-440

-36

43

-92

-408

TTM CFO/Total Debt

5.9%

3.1%

4.2%

-15.6%

-17.7%

43.0%

185.4%

15.1%

-15.6%

TTM FCF/Total Debt

-27.9%

-43.0%

-55.7%

-86.8%

-108.7%

37.1%

132.3%

-8.4%

-86.8%

TTM Capex

TTM D&A

TTM Cash from Invest. (CFI)

TTM EBITDA - Capital Expenditures -34 -442

17

-477

-137 -40

83

-170

-45 -37 -80

-26 -35 -26

-31 -468

-523

-34 -442

-477

-39 -381

-420

-42 -299

-328

-213

-242

-41

171

-81 -128

-278 -343

-343 -379

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

08

TTM EBITDA - Capex - Change in WC

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

08

TTM EBITDA-Capex-WC-CshIntEx-CshTax-CshDiv

200 100 0 -100 -200 -300 -400 -500

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

08

05

www.zerohedge.com

USEC Inc USD in millions

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

03/31/09 805

Cash

504

249

359

08 12/31/08

38

259

171

886

249

Marketable Securities / ST Investments 243

113

246

154

259

257

216

253

154

1,188

1,221

1,258

1,232

1,089

974

900

1,153

1,232

Net Fixed Assets

396

482

593

736

864

171

190

292

736

75% of Accounts Receivable

182

84

185

116

195

193

162

190

116

30% of Inventories & Unbill. Rec.

356

366

377

370

327

292

270

346

370

40

48

59

74

86

17

19

29

74

Collateral (Liquidation) Asset Value

1,383

1,003

980

807

646

761

622

1,451

807

Working Capital

1,468

1,394

1,302

1,174

1,039

863

984

1,715

1,174

24

24

13

-173

-164

24

-38

28

-173

Total Borrowings (includes ST Borrowings)

715

712

701

671

575

439

150

725

671

Net Debt

-90

209

343

422

537

180

-21

-161

422

193.3%

140.7%

139.7%

120.4%

112.3%

173.4%

414.9%

200.1%

120.4%

Accounts & Notes Receivable Inventories & Unbilled Receivables

Net Other Long Term Assets & Liabs.

Collateral Asset Value / Total Borrowings

explanations and definitions: The approximation we use to calculate a company's total Collateral (Liquidation) Asset Value (for an asset based liquidation scenario) is calculated as the sum of Cash plus Marketable Securities / Short-Term Investments plus assets with the following valuation rates applied: 75% of stated Accounts Receivable 30% of stated Inventory 10% of stated Net Fixed Assets. Although we acknowledge that some industries and individual situations demand clearly different assumptions we nevertheless think this is a useful approximation across all industries covered, if only as a starting point for further individual in-depth analysis. 75% of Accounts Receivable

30% of Inventories & Unbill. Rec.

Working Capital

10% of Net Fixed Assets 1,715 1,468 86

1,039

05

06

07

116 08

Net Other Long Term Assets & Liabs.

209 Q2 08

Q3 08

Q4 08

Q1 08

-164 Q1 09

Q4 08

Q1 09

05

06

07

-173 05

06

07

Q2 08

Q3 08

Q4 08

Q1 09

671 422

05

06

07

08

Collateral Asset Value / Total Borrowings 414.9%

200.1%

193.3%

173.4% 140.7% 139.7%

Q1 08

Q2 08

Q3 08

120.4% 112.3%

Q4 08

Q1 09

120.4%

05

08

Net Debt

725

-38

-173

Q3 08

28

24

13

Q2 08

Total Borrowings (includes ST Borrowings)

715

24

Q1 08

-161

Q1 09

190

150

Q4 08

162

180

Q3 08

193

671

Q2 08

195 116

422

84

370

270

701

185

182

984 863

346

292

343

327 370

1,174

1,174

712

377 366

Q1 08

1,302

19

356

24

1,394

74

-21

48

Q1 08

29 17

439

74

575 537

59

40

-90

BALANCE SHEET

10% of Net Fixed Assets

06

07

08

As of 12/31/2008 the Pension Plan of USEC Inc was underfunded by USD 224mm. The discount rate used for the company's Pension Plan liabilities is 6.21%. As of 12/31/2008 the Post Retirement Benefits Plan of USEC Inc was underfunded by USD -168mm. The discount rate used for the company's Post Retirement Benefits liabilities is 5.96%.

08

06

USEC Inc

COVERAGE RATIOS

USD in millions

www.zerohedge.com Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

03/31/09

08 12/31/08

TTM EBITDA / TOTAL INTEREST

6.7x

7.6x

4.4x

5.7x

7.7x

2.7x

14.9x

9.1x

5.7x

TTM EBITDAR / TOTAL INTEREST+RENT

4.9x

5.7x

3.5x

4.1x

4.7x

2.4x

9.5x

6.5x

4.1x

TTM EBITDA-CAPEX / TOTAL INTEREST

NM

NM

NM

NM

NM

2.1x

11.8x

1.0x

NM

TTM EBITDAR-CAPEX / TOTAL INTEREST+RENT

NM

NM

NM

NM

NM

1.8x

7.6x

1.0x

NM

explanations and definitions: TTM TOTAL INTEREST: For all coverage ratio calculations we use the Total Interest figure which in addition to Interest Expense also includes Capitalized Interest Expenses. We think this gives a better view of the economic reality than the simple Interest Expense figure.

TTM EBITDA / TOTAL INTEREST

TTM EBITDAR / TOTAL INTEREST+RENT 9.5x

14.9x

6.5x 5.7x

9.1x 4.9x

7.7x

7.6x

4.7x

6.7x

4.1x 5.7x

5.7x

4.1x

3.5x

4.4x

2.4x 2.7x

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

05

06

07

08

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

08

TTM EBITDAR-CAPEX / TOTAL INTEREST+RENT

TTM EBITDA-CAPEX / TOTAL INTEREST

7.6x 11.8x

1.8x 2.1x

1.0x 1.0x

0.0x

0.0x

0.0x

0.0x

0.0x

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

05

06

07

0.0x

0.0x

0.0x

0.0x

0.0x

0.0x

08

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

0.0x 05

06

07

08

07

USEC Inc

www.zerohedge.com

USD in millions

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

03/31/09

LEVERAGE RATIOS

NET DEBT / TTM EBITDA TOTAL DEBT / TTM EBITDA

08 12/31/08

NM

1.2x

3.3x

4.3x

6.1x

1.6x

NM

NM

4.3x

5.4x

4.2x

6.8x

6.8x

6.5x

4.0x

0.7x

4.7x

6.8x

TOTAL DEBT / TTM EBITDA-CAPEX

NM

NM

NM

NM

NM

5.3x

0.9x

42.2x

NM

Rentadj. TOT DEBT / TTM EBITDAR

5.6x

4.3x

6.9x

6.9x

6.6x

4.4x

1.0x

4.9x

6.9x

Rentadj. TOT DEBT / TTM EBITDAR-CAPEX

NM

NM

NM

NM

NM

5.6x

1.2x

31.0x

NM

HAIRCUT EBITDA MULTIPLE / TOTAL DEBT

58.0%

75.8%

46.2%

46.3%

48.4%

78.3%

452.3%

67.1%

46.3%

7.9x

5.5x

11.0x

10.4x

10.0x

5.9x

0.8x

6.3x

10.4x

TOTAL DEBT / TTM EBIT

explanations and definitions: Rent adj. Total Debt/TTM EBITDAR: This ratio is calculated by dividing the Rent Adjusted Total Debt figure (Total Debt plus 8 times TTM Rental Expenses) by EBITDAR (TTM EBITDA plus TTM Rental Expenses). HAIRCUT EBITDA MULTIPLE / TOTAL DEBT: We adjust TTM EBITDA to 70% of its stated value, multiply the result with 4.5 as an assumed exit multiple and relate the resulting figure (the haircut EBITDA multiple) to the TOTAL DEBT number. This ratio should reflect the situation of an issuer's liquidation, whereby the assets can be sold at a reduced EBITDA multiple.

TOTAL DEBT / TTM EBITDA

NET DEBT / TTM EBITDA

TOTAL DEBT / TTM EBITDA-CAPEX 42.2x

6.1x

4.3x

4.3x

3.3x

1.6x 1.2x 5.4x 0.0x Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

0.0x

0.0x

06

07

08

6.8x

6.8x

6.5x

4.2x

0.0x

0.0x

0.0x

0.0x

0.0x

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

HAIRCUT EBITDA MULTIPLE / TOTAL DEBT

6.8x

5.3x 4.0x

4.7x 0.9x 0.7x

05

06

0.0x 07

08

Rentadj. TOT DEBT / TTM EBITDAR Rentadj. TOT DEBT / TTM EBITDAR-CAPEX

452.3% 31.0x

58.0%

Q1 08

78.3%

75.8%

Q2 08

Q3 08

Q4 08

Q1 09

5.6x

67.1%

46.2% 46.3% 48.4%

46.3%

05

06

07

08

TOTAL DEBT / TTM EBIT 11.0x 10.4x

10.4x

10.0x

7.9x 6.3x

5.9x

5.5x

0.8x

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

08

6.9x

6.9x

6.6x

4.3x

0.0x

0.0x

0.0x

0.0x

0.0x

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

6.9x

5.6x 4.4x

4.9x 1.2x 1.0x

05

06

0.0x 07

08

USEC Inc

08

www.zerohedge.com

USD in millions

Q1 08

Q3 08

Q2 08

Q4 08

Q1 09

05

06

07

08

ENTERPRISE VALUE

03/31/09

12/31/08

EV / TTM EBITDA

2.4x

5.2x

9.2x

9.4x

12.2x

11.1x

5.0x

5.4x

9.4x

EV / TTM EBIT

3.5x

6.9x

14.8x

14.4x

18.7x

16.4x

6.1x

7.3x

14.4x

Enterprise Value

321

885

945

924

1,076

1,214

1,087

834

924

TOTAL DEBT

715

712

701

671

575

439

150

725

671

Equity Market Cap

409

676

602

500

534

1,034

1,108

994

500

EV / TTM EBITDA

EV / TTM EBIT 18.7x

12.2x 11.1x 9.2x

16.4x

9.4x

14.8x

9.4x

5.2x

14.4x

14.4x

5.4x

5.0x

7.3x

6.9x

6.1x

2.4x 3.5x

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

08 Q1 08

TOTAL DEBT

Q2 08

Q3 08

Q4 08

EV - TOTAL DEBT

Q1 09

05

06

07

08

Equity Market Cap 1,108

671 Q4 08

253

500

07

08

534

500

409

-394

150

439

671

701 Q3 08

602 725

712 Q2 08

575

715 Q1 08

994

676

937

109

775

501

253

243

173

1,034

Q1 09

05

06

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

08

USU US stock closing price

25

20

15

10

5

Mai/09

Feb/09

Nov/08

Mai/08

Aug/08

Feb/08

Nov/07

Mai/07

Aug/07

Feb/07

Nov/06

Mai/06

Aug/06

Feb/06

Nov/05

Mai/05

Aug/05

Feb/05

Nov/04

Aug/04

Mai/04

Feb/04

Nov/03

Aug/03

Mai/03

Feb/03

Nov/02

Mai/02

Aug/02

Feb/02

Nov/01

Aug/01

Mai/01

Feb/01

Nov/00

Aug/00

Mai/00

Feb/00

Nov/99

Aug/99

0

09

USEC Inc

www.zerohedge.com

USD in millions

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

03/31/09 19.53%

9.91%

0

4.93%

3.83%

3.37%

10.02%

8.08%

3.74%

Tangible Capital

1,216

1,527

1,669

1,578

1,695

1,076

957

1,141

1,578

Total Intangibles

7

7

7

7

7

11

7

7

7

7.5%

8.5%

3.8%

4.1%

3.4%

6.9%

18.7%

10.1%

4.1%

Adjusted Cap Rate RETURN ON CAPITAL

08 12/31/08

Pre-tax ROIC After-tax ROIC (effective tax rate)

4.4%

4.6%

4.1%

11.6%

7.4%

2.8%

After-tax ROIC (assumed tax rate)

4.9%

5.5%

2.5%

2.6%

2.8% 2.2%

4.5%

12.1%

6.5%

2.6%

WACD (Pre-tax)

2.8%

3.2%

3.3%

2.6%

2.0%

9.1%

9.7%

2.3%

2.6%

explanations and definitions: Adjusted Cap Rate: This ratio shows EBIT reduced by an assumed tax rate of 35% and adjusted for Net Non-Operating and Extraordinary Losses (Gains) - averaged over the last 5 years - divided by the Enterprise Value. Tangible Capital: Starting with the Total Book Capital the Tangible Capital figure is calculated by subtracting Intangibles, Cash and Marketable Securities as well as Short Term Investments. We calculate three different ROIC (Return on Invested Capital) figures: Pre-Tax ROIC: this ratio relates the trailing twelve months (TTM) EBIT to Tangible Capital as defined above. After-tax ROIC (effective tax rate): here EBIT is corrected by the company's effective tax rate as stated in it's latest financials, giving an after-tax ROIC rate. After-tax ROIC (assumed tax rate): here EBIT is corrected by an assumed tax rate of 35%, giving a modified after-tax ROIC rate. WACD (Pre-Tax): This rate is defined as trailing twelve months (TTM) TOTAL INTEREST EXPENSE divided by Total Borrowings.

After-tax ROIC (assumed tax rate)

Adjusted Cap Rate

12.1% 19.5%

6.5% 10.0%

9.9%

5.5% 4.9%

8.1% 4.8%

4.9% 3.8%

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

3.7%

3.4%

05

06

07

08

2.3%

2.6%

07

08

WACD (Pre-tax)

9.7% 9.1%

2.8%

3.2%

4.5%

3.3% 2.6% 2.0%

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09

05

06

Q1 08

Q2 08

2.5%

2.6%

Q3 08

Q4 08

2.6%

2.2%

Q1 09

05

06

07

08

DEFAULT ESTIMATE

10

USEC Inc

Average Bond Spread (in BPoints (1))

www.zerohedge.com

N/A

Estimated Bond Recovery Rate (2) Resulting Tolerable Default Rate (3)

explanations and definitions: We calculate estimated default and recovery rates to be used in other credit models (f.i. for the valuation of CDOs or similar structures) as follows: (1) Average Bond Spread: Average Spread of all bonds listed on page 2 of this report. (2) Estimated Bond Recovery Rate: To calculate this rate we first divide the total debt amount into bond debt and loan debt that is senior to bond debt. As an approximation for the total amount of bond debt we use the sum of the amounts outstanding of all bonds listed on page 1 of this report. The total debt figure is reduced by this sum, giving us an approximate figure for debt that is senior to bond debt. We then calculate a collateral asset coverage figure for the bond debt by starting with the Collateral Asset Value (as defined on page 5 of this report) which we reduce by the amount of senior debt ahead of the bonds. The remaining Collateral Asset Value is then divided by the approximate bond debt amount as defined above, giving an estimated recovery value on a collateral asset basis. We apply the same logic to an EBITDA multiple ratio (as on page 7 of this report) and get a second recovery estimate based on the EBITDA multiple. The higher of the 2 estimates is used as the "Estimated Bond Recovery Rate". (3) Resulting Tolerable Default Rate: The implied default rate calculated using the Market Spread (1) and the Estimated Recovery Rate (2). With the given Market Spread and Estimated Recovery Rate it defines the maximum tolerable default probability for the risk premium paid in the form of Spread. Please note: This rate will only be displayed when it is greater than 0% and lower than 30% as we believe it is not meaningful ('NM') out of this range.

TANGIBLE NET WORTH ESTIMATE

Although we acknowledge that the calculated results are by no means exact, we think they make for a good estimate in the valuation of credit structures when individual default and recovery rates for single issuers are to be used.

USD in millions

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

05

06

07

03/31/09

08 12/31/08

Total Assets

3,203

2,906

3,024

3,055

2,988

2,081

1,861

3,088

3,055

Total Liabilites

1,890

1,580

1,691

1,893

1,824

1,173

875

1,778

1,893

Total Intangibles Tangible Net Worth Rent Debt (8x Annual Rental Expense)

7

7

7

7

7

11

7

7

7

1,306

1,319

1,327

1,156

1,157

897

979

1,303

1,156

74

74

74

74

74

Underfunded Pension & Post Ret. Liab. Discount on Hard Assets Adjusted Tangible Net Worth

86

73

66

74

-177

-135

-87

-392

1,248

1,317

1,476

1,563

1,605

900

855

1,134

1,563

-16

-72

-223

-481

-521

-267

-84

16

-873

USEC Inc

11

www.zerohedge.com

USD in millions

Q1 08

Q2 08

Q4 08

Q3 08

Q1 09

05

06

07

08

03/31/09 4.7%

-80.9%

-3.8%

12.5%

5.1%

10.7%

9.3%

0.7%

-9.5%

-26.2%

18.0%

-7.0%

-30.0%

47.3%

10.0%

18.6%

4.3%

-16.3% 14.2%

(CFO-Net Income)/Revenues yoy Revenue Growth

11.3%

25.5%

8.2%

18.1%

8.3%

14.7%

18.2%

14.9%

Days Sales Outstanding

49

22

50

35

53

60

43

48

35

Days Sales of Inventory

240

242

255

279

224

228

178

219

279

Soft Assets

685

Gross Margin

ACCOUNTING RED FLAGS

12/31/08

572

587

568

685

737

348

360

503

Unbilled Receivables

-

-

-

-

-

-

-

-

-

Deferred / Unearned Revenue

-

-

-

-

-

-

-

-

-

Allowance for Doubtful Accounts

-

0

-

-

-

-

-

-

0

TTM Dividends Paid

0

0

0

0

0

47

0

0

0

TTM Preferred Dividends

0

0

0

0

0

0

0

0

0

Net Change in Capital Stock

0

0

0

0

-1

9

3

215

0

Non-Capex CFI (CFI less Capex)

0

0

-10

-25

-21

0

-35

-33

-35

Gross Margin

yoy Revenue Growth

(CFO-Net Income)/Revenues

60.0%

9%

14%

18% 18.6%

11%

15% 4.3%

15% 10.0%

14%

11% 1.3%

7%

18%

8%

7%

-16.3%

-11%

-4%

17%

5%

-1.9%

-20.0%

13%

-7.0%

5%

-30.0%

10%

8%

26% 18.0%

11%

12% 13.4%

18%

13%

16%

16%

-26.2%

0.0%

31%

21%

20.0%

47.3%

40.0%

1%

0%

-10%

-40.0% -60.0% -80.0%

-74% -81%

-100.0%

0

0

Q2 08

Q3 08

Q4 08

Q1 09

219

02

03

04

05

06

07

Auditor Information: Current auditor

PRICEWATERHOUSECOOPERS (as of 24.2.2009)

Auditor's opinion

Unqualified

Auditor's opinion - Definitions Not Audited / Unaudited

No tests were performed to verify amounts in financial statements. Typically applied to interim statement.

Partially audited

Not all statements were audited. Auditor may specifically give opinion on one or two statements.

Unqualified

Auditor declares, without reservation, that the financial statements fairly represent the company's financial position at a point in time and that the statements conform in all material respects to GAAP.

Qualified: Limited Scope

An aspect of the company's financial statements could not be verified, such as a portion of inventory not counted.

Qualified: Inconsistent Standards

Accounting standards were not applied consistently between periods.

Qualified: not GAAP

Standard accounting principles for the country were not followed. Typically related to a unique line item and uses the phrase 'except for.'

Qualified: uncertainty

Doubt exists related to a material balance sheet item, such as value of investment or collectability of major receivable; or auditor doubts going concern ability of company. This opinion usually employs the phrase 'subject to.'

Disclaimer

Auditor refuses to state opinion on financial statements, typically due to lack of sufficient documentation provided by company and/or subsidiaries.

0

0

0

0

0

0

0

178

206

189

219

0

Q1 08

228

0

260

0

Q4 07

223

0

Q3 07

228

0

Q2 07

224

242

0

255

240

0 Q1 07

237 0 Q4 06

178

279

Days Sales of Inventory

279

Days Sales Outstanding

08

12

USEC Inc

www.zerohedge.com

LATEST SEC FILINGS

Quarterly Report (Form Type 10-Q)

end of period

Form 10-Q -- Quarterly report

http://www.sec.gov/Archives/edgar/data/1065059/000095013309001489/w73871e10vq.htm

03/31/09

Form 10-Q -- Quarterly report

http://www.sec.gov/Archives/edgar/data/1065059/000095013308003580/w71286e10vq.htm

09/30/08

Form 10-Q -- Quarterly report

http://www.sec.gov/Archives/edgar/data/1065059/000095013308002682/w64227e10vq.htm

06/30/08

Form 10-Q -- Quarterly report

http://www.sec.gov/Archives/edgar/data/1065059/000095013308001698/w56510e10vq.htm

03/31/08

Form 10-Q -- Quarterly report

http://www.sec.gov/Archives/edgar/data/1065059/000095013307004358/w41566e10vq.htm

09/30/07

Form 10-Q -- Quarterly report

http://www.sec.gov/Archives/edgar/data/1065059/000095013307003171/w37752e10vq.htm

06/30/07

Form 10-Q -- Quarterly report

http://www.sec.gov/Archives/edgar/data/1065059/000095013307002113/w34316e10vq.htm

03/31/07

Form 10-Q -- Quarterly report

http://www.sec.gov/Archives/edgar/data/1065059/000095013306004682/w26248e10vq.htm

09/30/06

Form 10-Q -- Quarterly report

http://www.sec.gov/Archives/edgar/data/1065059/000095013306003523/w23745e10vq.htm

06/30/06

Form 10-Q -- Quarterly report

http://www.sec.gov/Archives/edgar/data/1065059/000095013306002286/w20572e10vq.htm

03/31/06

Annual Report (Form Type 10-K)

end of period

Form 10-K -- Annual report

http://www.sec.gov/Archives/edgar/data/1065059/000095013309000485/w72878e10vk.htm

12/31/08

Form 10-K/A -- Annual report

http://www.sec.gov/Archives/edgar/data/1065059/000095013308000885/w50598e10vkza.htm

12/31/07

Form 10-K -- Annual report

http://www.sec.gov/Archives/edgar/data/1065059/000095013308000773/w50170e10vk.htm

12/31/07

Form 10-K -- Annual report

http://www.sec.gov/Archives/edgar/data/1065059/000095013307000816/w30578e10vk.htm

12/31/06

Form 10-K -- Annual report

http://www.sec.gov/Archives/edgar/data/1065059/000095013306000887/w17812e10vk.htm

12/31/05

Form 10-K/A -- Annual report

http://www.sec.gov/Archives/edgar/data/1065059/000095013305003416/w11419e10vkza.htm

12/31/04

Form 10-K -- Annual report

http://www.sec.gov/Archives/edgar/data/1065059/000095013305001062/w06606e10vk.htm

12/31/04

Form 10-K -- Annual report

http://www.sec.gov/Archives/edgar/data/1065059/000095013304000869/w94219e10vk.htm

12/31/03

Form 10-KT -- Transition report

http://www.sec.gov/Archives/edgar/data/1065059/000095013303000682/w83838e10vkt.htm

12/31/02

Form 10-K/A -- Annual report

http://www.sec.gov/Archives/edgar/data/1065059/000095013302003280/w64082a1e10vkza.htm

06/30/02

Special Events & Material News (Form Type 8-K)

filing date

Form 8-K -- Current report

http://www.sec.gov/Archives/edgar/data/1065059/000129993309002236/htm_32835.htm

05/18/09

Form 8-K -- Current report

http://www.sec.gov/Archives/edgar/data/1065059/000129993309002033/htm_32639.htm

05/06/09

Form 8-K -- Current report

http://www.sec.gov/Archives/edgar/data/1065059/000129993309002026/htm_32632.htm

05/06/09

Form 8-K -- Current report

http://www.sec.gov/Archives/edgar/data/1065059/000129993309000988/htm_31608.htm

03/02/09

Form 8-K -- Current report

http://www.sec.gov/Archives/edgar/data/1065059/000129993309000922/htm_31543.htm

02/25/09

Form 8-K -- Current report

http://www.sec.gov/Archives/edgar/data/1065059/000129993309000843/htm_31467.htm

02/20/09

Form 8-K -- Current report

http://www.sec.gov/Archives/edgar/data/1065059/000095013309000210/w72226ae8vk.htm

02/05/09

Form 8-K -- Current report

http://www.sec.gov/Archives/edgar/data/1065059/000129993309000325/htm_30914.htm

01/21/09

Form 8-K -- Current report

http://www.sec.gov/Archives/edgar/data/1065059/000129993309000166/htm_30795.htm

01/13/09

Form 8-K -- Current report

http://www.sec.gov/Archives/edgar/data/1065059/000129993308005146/htm_29770.htm

11/04/08

Prospectus (Form Type 42..)

filing date

Form 424B5 -- Prospectus [Rule 424(b)(5)

http://www.sec.gov/Archives/edgar/data/1065059/000095013307003963/w39464b2e424b5.htm

09/25/07

Form 424B5 -- Prospectus [Rule 424(b)(5)

http://www.sec.gov/Archives/edgar/data/1065059/000095013307003962/w39357b2e424b5.htm

09/25/07

Form 424B5 -- Prospectus [Rule 424(b)(5)

http://www.sec.gov/Archives/edgar/data/1065059/000095013307003823/w39357b5e424b5.htm

09/14/07

Form 424B5 -- Prospectus [Rule 424(b)(5)

http://www.sec.gov/Archives/edgar/data/1065059/000095013307003821/w39464b5e424b5.htm

09/14/07

Form 424B3 -- Prospectus [Rule 424(b)(3)

http://www.sec.gov/Archives/edgar/data/1065059/000095017200001831/0000950172-00-001831-0001.txt

11/06/00

Form 424B1 -- Prospectus [Rule 424(b)(1)

http://www.sec.gov/Archives/edgar/data/1065059/0000950133-98-002706.txt

07/23/98

This research report was prepared by Zerohedge. The information herein has been obtained from, and any opinions herein are based upon, sources believed to be reliable, but Zerohedge does not represent that it is accurate or complete and it should not be relied upon as such. All opinions, forecasts and estimates herein reflect our judgement on the date of this report and are subject to change without notice.

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