USEC Inc. (USU, Financial) filed Quarterly Report for the period ended 2012-09-30.
Usec Inc. has a market cap of $81.4 million; its shares were traded at around $0.6703 with and P/S ratio of 0.1.
Revenue from the contract services segment declined $44.3 million in the three months and $121.0 million in the nine months ended September 30, 2012, compared to the corresponding periods in 2011. Contract service revenues at the Portsmouth site declined $37.3 million (or 98%) in the three-month period and $118.5 million (or 98%) in the nine-month period as this work was transferred to DOE s new D&D contractor over the course of 2011. Revenues by NAC decreased $7.7 million in the three-month period and increased $0.6 million in the nine-month period primarily as a result of timing in sales related to dry cask storage systems.
Production costs declined $23.0 million (or 13%) in the three months ended September 30, 2012, compared to the corresponding period in 2011, reflecting a 6% decline in volume and an 8% decline in the unit production cost. Production in the quarter consisted of depleted uranium enrichment under the one-year multi-party arrangement with Energy Northwest, the Bonneville Power Administration, TVA and DOE. Effective June 1, 2012, although our purchase costs under our power contract with TVA continue to be subject to a fuel cost adjustment, the fuel cost adjustment is included in the power price component of our sales price billed to Energy Northwest under the depleted uranium enrichment agreement. The average cost per megawatt hour declined 10% in the three months ended September 30, 2012, compared to the corresponding period in 2011.
Gross profit increased $10.6 million in the three months ended September 30, 2012, compared to the corresponding period in 2011. Our gross profit margin was 6.6% in the three months ended September 30, 2012 compared to 7.2% in the corresponding period in 2011. Gross profit for the LEU segment increased $16.0 million in the three-month period primarily due to higher SWU sales volume.
Gross profit increased $14.6 million in the nine months ended September 30, 2012, compared to the corresponding period in 2011. Our gross profit margin was 5.9% in the nine months ended September 30, 2012 compared to 6.1% in the corresponding period in 2011. Gross profit for the LEU segment increased $18.3 million in the nine-month period due to higher SWU unit gross profits and sales volumes, partially offset by lower uranium sales volumes.
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Usec Inc. has a market cap of $81.4 million; its shares were traded at around $0.6703 with and P/S ratio of 0.1.
Highlight of Business Operations:
Revenue from the LEU segment increased $240.3 million in the three months and $408.4 million in the nine months ended September 30, 2012, compared to the corresponding periods in 2011. The volume of SWU sales increased 83% in the three-month period and 50% in the nine-month period reflecting the variability in timing of utility customer orders including orders that USEC and customers have advanced from later in 2012 and from 2013. The average price billed to customers for sales of SWU increased 3% in both the three and nine month periods reflecting the particular contracts under which SWU were sold during the periods. Uranium sales declined significantly in both the three and nine month periods since most of our inventories of uranium available for sale have been sold in prior years and we expect this trend to continue.Revenue from the contract services segment declined $44.3 million in the three months and $121.0 million in the nine months ended September 30, 2012, compared to the corresponding periods in 2011. Contract service revenues at the Portsmouth site declined $37.3 million (or 98%) in the three-month period and $118.5 million (or 98%) in the nine-month period as this work was transferred to DOE s new D&D contractor over the course of 2011. Revenues by NAC decreased $7.7 million in the three-month period and increased $0.6 million in the nine-month period primarily as a result of timing in sales related to dry cask storage systems.
Production costs declined $23.0 million (or 13%) in the three months ended September 30, 2012, compared to the corresponding period in 2011, reflecting a 6% decline in volume and an 8% decline in the unit production cost. Production in the quarter consisted of depleted uranium enrichment under the one-year multi-party arrangement with Energy Northwest, the Bonneville Power Administration, TVA and DOE. Effective June 1, 2012, although our purchase costs under our power contract with TVA continue to be subject to a fuel cost adjustment, the fuel cost adjustment is included in the power price component of our sales price billed to Energy Northwest under the depleted uranium enrichment agreement. The average cost per megawatt hour declined 10% in the three months ended September 30, 2012, compared to the corresponding period in 2011.
Gross profit increased $10.6 million in the three months ended September 30, 2012, compared to the corresponding period in 2011. Our gross profit margin was 6.6% in the three months ended September 30, 2012 compared to 7.2% in the corresponding period in 2011. Gross profit for the LEU segment increased $16.0 million in the three-month period primarily due to higher SWU sales volume.
Gross profit increased $14.6 million in the nine months ended September 30, 2012, compared to the corresponding period in 2011. Our gross profit margin was 5.9% in the nine months ended September 30, 2012 compared to 6.1% in the corresponding period in 2011. Gross profit for the LEU segment increased $18.3 million in the nine-month period due to higher SWU unit gross profits and sales volumes, partially offset by lower uranium sales volumes.
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