Good day and welcome everyone to the USEC Incorporated third quarter 2009 earnings results conference call. This call is being recorded. With us today from the company is Mr. John Welch, President and Chief Executive Officer and Mr. Steven Wingfield, the Director of Investor Relations. Management will make opening remarks, which will be followed by a question-and-answer period. At this time, I'd like to turn the call over to Mr. Steve Wingfield. Please go ahead, sir.

Good morning. Thank you for joining us for USEC's conference call regarding the third quarter of 2009, which ended September 30. With me today are John Welch, President and Chief Executive Officer; John Barpoulis, Senior Vice President and Chief Financial Officer; Phil Sewell, Senior Vice President; Bob Van Namen, Senior Vice President; and Tracy Mey, Controller and Chief Accounting Officer. Before turning the call over to John Welch, I want to welcome all of our callers as well as those listening to our webcast via the Internet. This conference call follows our earnings news release issued yesterday after the market's close. That news release is available on many financial websites, as well as our corporate website, usec.com. I want to inform all of our listeners that our news releases and SEC filings, including our 10-K, 10-Qs and 8-Ks are available on our website. We expect to file our quarterly report on Form 10-Q later today. A replay of this call also will be available later this morning on the USEC website. I'd like to remind everyone that certain of the information that we may discuss on this call today may be considered forward-looking information that involves risk and uncertainty including assumptions about the future performance of USEC. Our actual results may differ materially from those in our forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in our forward-looking statements is contained in our filings with the SEC, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Finally, the forward-looking information provided today is time-sensitive and is accurate only as of today, November 3, 2009. This call is the property of USEC. Any redistribution, retransmission, or rebroadcast of this call in any form without the express written consent of USEC is strictly prohibited. Thank you for your participation. And now I'd like to turn the call over to John.

Good morning. Thank you for joining us this morning to discuss our third quarter results. The third quarter was challenging and intense for the economy, our electric utility customers and certainly for USEC. During the next few minutes, I will address recent developments regarding our efforts to deploy the American Centrifuge technology and to obtain funding through the Department of Energy Loan Guarantee Program. I will briefly discuss our results at a higher level, and John Barpoulis will provide more details during his report. We will also leave sufficient time for your questions. Taking a look at the bottom line, we recorded a loss of $6.2 million in the third quarter, compared to net income of $8.4 million in the same quarter last year. SWU sales volumes were lower and our unit cost of sales increased reducing our gross profit margins. In addition, advanced technology expenses were $31.7 million or $2.6 million more than the same period last year. As you know, we began demobilizing construction activities for the American Centrifuge plant in August, but the impact of that cost cutting will not be seen in our results until the fourth quarter and beyond. Our view of expected operating results for the full year remains positive, particularly our cash flow generated by operations. With several caveats, we provided guidance to investors that we expect net income of $50 million to $65 million and cash flow from operations of $360 million to $375 million for year-end. Investors who have followed USEC know that our results can swing significantly from quarter-to-quarter. We've certainly seen that this year. As a reminder, we had a small loss in the first quarter, a good second quarter. The loss we are reporting today for the third quarter and our expectation for a strong finish in the…

Thanks, John, and good morning, everyone. Let me say upfront that for our practice, we expect to issue our 10-Q report later today, which has significant additional detail. Starting at the top line for the quarter, revenue was $549 million, a decrease of $41 million or 7% from the same quarter last year. As is USEC's normal pattern, SWU sales made up the majority of revenue at $467 million, a decline of 5% compared to the third quarter of 2008. SWU sales in the third quarter reflected a 10% decrease in sales volume and a 6% increase in the average price billed to customers. We are seeing the higher prices in contracts that we've signed in recent years representing a larger portion in our mix of customer deliveries, which is helping to bolster the average price billed to customers. The uranium revenue is $26 million, which was a decrease of $23 million over the same quarter last year. The average price billed to customers was up sharply year-over-year, but uranium sales volume was 75% lower due to the mix, timing and terms of the sales contracts. Although the spot market prices for uranium have increased recently due to a production problem at a large mine in Australia, uranium prices have generally declined in the past year. The economics of underfeeding the enrichment process to obtain uranium for resale are affected by uranium prices and the cost for electric power. Uranium prices remain volatile and we will continue to monitor and optimize the economics of our production based on the cost of power and market conditions for SWU and uranium. As uranium prices increased, the economics of underfeeding clearly improve. Turning back to the quarter, the U.S. government contracts segment revenue was $56 million, an increase of about $5 million from…

Thank you. The question-and-answer session will be conducted electronically. (Operator Instructions). Our first question comes from Laurence Alexander with Jefferies & Company.

This is [Amanda] for Laurence. A quick question first around the comment that the business should provide sufficient cash to meet your needs for the next 12 months; I know that’s through the cash from ops settlement in your credit facility, does this take into account sort of a minimum cash burn rate over the next 12 months? Or is there any more color you could give us on that?

Hi. Yes, it does. I mean it does take into account an overall expectation and view on overall project spending. But I would also say it takes into account two aspects. First, with respect to that potential burn rate on ACP, I think the best information that we can provide at this point is really on the expense side of ACP expenditures. As you saw on our release, the ACP expense year-to-date is approximately $94 million. And in our guidance, we mentioned that we expect total year expense to be between $115 million and $120 million. So if you do the math that equates to an average monthly rate of about $7 million to $9 million per month in the fourth quarter. Obviously, we’re continuing to work through our demobilization and the capital expenditure side of that equation. I think more importantly, it gets to our overall view on liquidity and recognition that as we look forward, as we have, we will continue to take steps to ensure that we have adequate liquidity for our ongoing operations.

Okay. And then just as you look at spending priorities for the ACP over the next several months and I know that the amount you spend will depend on the available funds, but how would you rank some of the priorities that you mentioned?

Well, it’s difficult to rank. Clearly, our focus is to fully address the technical issues that have been identified by the Department of Energy and Parsons. And so the activity associated with operating Lead Cascade is certainly right at the top. We need to get the machines back and operating and running. Operating Lead Cascades demonstrates all of our assembly processes, validates all of the improvements to our quality procedures. We will be continuing to manufacture machines during that period of time, so that we can keep the industrial base for the manufacturing warm, have it in a good position to remobilize, and then we are continuing our development and test activities in Oak Ridge that allows us to continue to validate the machine that will be the baseline machine that will go in a Lead Cascade, also gives us the ability to work on the value engineering and the continued performance improvement. So it’s hard to prioritize clearly those things that directly tied to the technical issues that DOE has addressed, that allows us to get a run time to get a reliability of those (inaudible) and then you bring the manufacturing right after that. Those are all things that decrease project risk which will decrease credit subsidy cost. And then, we will continue the development activities as well, because that really becomes the future of the machine and the potential improvements that can be realized over the full deployment of the plant.

(Operator Instructions). Our next question comes from Gabriela Bis with Goldman Sachs.

Can you give us a sense of the level of CapEx you will be spending in the fourth quarter and for the full year? And kind of how you see the breakdown of CapEx going forward, capitalized versus expense? I’m trying to get a sense of sort of the run rate that you will be seeing. I know that you guys are demobilizing and spending a little bit less, but trying to get a sense of what that means going forward and especially into 2010?

Again Gabby, unfortunately I think the best guidance that we can provide is really on the expense side of the equation, looking at that average spend in the fourth quarter, between $7 million and $9 million per month. We’ve recognized that our level of capital expenditures will be ramping down, and are much lower like a hole in 2009 compared to our original expectations, if you go back to look at the initial guidance we provided at the beginning of the year with respect to total CapEx. As you know, from our practice, we’ll be providing outlook and guidance. We would expect to do that early in 2010 or late in 2010. I think that’s the best answer I can provide at this point.

Okay, thank you. And second question I have is regarding uranium sales. And I know you mentioned that, uranium prices have come down and that’s why we saw a decrease in uranium sales. Can you give us a sense of what you’re really seeing in the market right now, and what you’re thinking in terms of when prices will stabilize?

This is Robert Van Namen. The prices definitely have firmed since there was an accident at an Olympic Dam facility that took out about 80% of the production from this very large, very important mine. So we did see prices tick back up fairly consistently. The major caveat there is the Department of Energy and their plans to pay for additional shutdown work and decontamination and decommissioning work by selling uranium into the market. They have an obligation to do an adverse impact assessment on the impact on the uranium and other domestic markets, and they’re doing so now. So what we see is, again, a shortfall in production in the market, which would generally tend to push prices up, somewhat countered by secondary supplies. We see the market being fairly reasonably stable and firm now, again in the $130 a kilogram range. It does have the potential to move up somewhat, because of the Olympic Dam situation, but we and others in the market are keeping a careful eye on DOE’s actions.

(Operator Instructions). There are no other questions coming in the queue at this time. I’ll turn it back over for any closing remarks.

Well, thank you all for your questions. I think in summary, although recent events have been challenging, we are clearly focused on addressing the issues ahead. Significant progress is being made on a number of fronts as we talk to you. I look forward to bringing you report on our annual performance in February and we continue to appreciate your support, your interest and your investment in USEC. Thank you.

This concludes today’s conference call. Thank you for your participation.