-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AIN4xd6MQfzGaY/fplRxfvOXzJ5aXWJFAdYj4bS8btB4sUUBhvh3SNk6U6Ee5Z7o Ti/JAgGg3nF4ugAYZiGxhw== 0000947871-04-001238.txt : 20040428 0000947871-04-001238.hdr.sgml : 20040428 20040428060420 ACCESSION NUMBER: 0000947871-04-001238 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040428 ITEM INFORMATION: ITEM INFORMATION: Other events FILED AS OF DATE: 20040428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AES CORPORATION CENTRAL INDEX KEY: 0000874761 STANDARD INDUSTRIAL CLASSIFICATION: COGENERATION SERVICES & SMALL POWER PRODUCERS [4991] IRS NUMBER: 541163725 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12291 FILM NUMBER: 04758451 BUSINESS ADDRESS: STREET 1: 1001 N 19TH ST STREET 2: STE 2000 CITY: ARLINGTON STATE: VA ZIP: 22209 BUSINESS PHONE: 7035221315 8-K 1 f8k_042704.txt CURRENT REPORT - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20349 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 28, 2004 THE AES CORPORATION (Exact name of registrant as specified in its charter) Delaware 001-12291 54-1163725 (State or other (Commission File (I.R.S Employer jurisdiction of Number) Identification No.) incorporation) 1001 North 19th Street, 20th Floor Arlington, Virginia 22209 (Address of principal executive offices, including zip code) Registrant's telephone number, including area code: (703) 522-1315 NOT APPLICABLE (Former Name or Former Address, if changed since last report) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Item 5. Other Events
AES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Quarter Ended March 31, ($ in millions, except per share amounts) 2004 2003 --------------------------------- REVENUES Sales and services $2,257 $1,911 OPERATING COSTS AND EXPENSES Cost of sales and services 1,577 1,337 Corporate and business development expenses 48 29 Other operating expense, net 14 22 --------------- --------------- Total operating costs and expenses 1,639 1,388 --------------- --------------- OPERATING INCOME 618 523 OTHER INCOME AND (EXPENSE) Interest expense, net (424) (431) Other nonoperating expense, net - 15 Foreign currency transaction (losses) gain (8) 82 Loss on sale of investments (1) - Equity in earnings of affiliates 16 24 --------------- --------------- INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 201 213 Income tax expense 64 61 Minority interest expense, net 63 21 --------------- --------------- INCOME FROM CONTINUING OPERATIONS 74 131 Loss from operations of discontinued components (net of income tax expense of $2 and tax benefit of $4, respectively) (26) (36) --------------- --------------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 48 95 Cumulative effect of accounting change (net of income tax benefit of $1) - (2) =============== =============== NET INCOME $48 $93 =============== =============== DILUTED EARNINGS PER SHARE: Income from continuing operations $0.12 $0.23 Discontinued operations (0.04) (0.06) Cumulative effect of accounting change - - --------------- --------------- Total $0.08 $0.17 =============== =============== Diluted weighted average shares outstanding (in millions) 633 567 === ===
AES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET March 31, December 31, ($ in millions, except per share amounts) 2004 2003 ----------------------------- Assets Current Assets: Cash and cash equivalents $1,120 $1,737 Restricted cash 725 288 Short term investments 201 189 Accounts receivable, net of reserves of $275 and $291, respectively 1,204 1,211 Inventory 357 376 Receivable from affiliates 3 3 Deferred income taxes - current 150 136 Prepaid expenses 103 64 Other current assets 695 677 Current assets of held for sale and discontinued businesses 223 205 -------------- -------------- Total current assets 4,781 4,886 Property, Plant and Equipment: Land 739 733 Electric generation and distribution assets 21,067 21,087 Accumulated depreciation (4,745) (4,593) Construction in progress 1,389 1,278 -------------- -------------- Property, plant and equipment, net 18,450 18,505 Other assets: Deferred financing costs, net 455 430 Investment in and advances to affiliates 665 648 Debt service reserves and other deposits 539 534 Goodwill, net 1,381 1,378 Deferred income taxes - noncurrent 788 781 Long-term assets of held for sale and discontinued businesses 746 750 Other assets 1,945 1,992 -------------- -------------- Total other assets 6,519 6,513 -------------- -------------- Total Assets $29,750 $29,904 ============== ============== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $1,127 $1,122 Accrued interest 366 561 Accrued and other liabilities 1,315 1,259 Current liabilities of held for sale and discontinued businesses 728 699 Recourse debt-current portion 1 77 Non-recourse debt-current portion 2,468 2,769 -------------- -------------- Total current liabilities 6,005 6,487 Long-term liabilities: Recourse debt 5,587 5,862 Non-recourse debt 10,687 10,930 Deferred income taxes 1,048 1,051 Long-term liabilities of held for sale and discontinued businesses 91 94 Pension liabilities 924 947 Other long-term liabilities 3,150 3,083 -------------- -------------- Total long-term liabilities 21,487 21,967 Minority Interest, including discontinued businesses of $12 and $12, respectively 1,168 805 Stockholders' equity: Common stock 6 6 Additional paid-in capital 5,363 5,737 Accumulated deficit (1,055) (1,103) Accumulated other comprehensive loss (3,224) (3,995) -------------- -------------- Total stockholders' equity 1,090 645 -------------- -------------- Total Liabilities and Stockholders' Equity $29,750 $29,904 ============== ==============
AES CORPORATION CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS March 31, March 31, ($ in millions) 2004 2003 ------------------------------ Operations Net income $48 $93 Adjustments: Depreciation and amortization-- continuing and discontinued operations 200 184 Cumulative effect of change in accounting principle - 3 Other non-cash (benefits)/charges 226 (54) Working capital, (net) (72) 220 --------------- -------------- Net cash provided by operating activities 402 446 Investing activities Property additions (190) (265) Proceeds from the sales of assets 27 585 Increase in restricted cash and other (453) (134) --------------- -------------- Net cash used in investing activities (616) 186 Financing activities Borrowings (repayments) under the revolving credit facilities, net - 8 Issuance of non-recourse debt and other coupon bearing securities 1,133 269 Repayments of non-recourse debt and other coupon bearing securities (1,473) (493) Payments for deferred financing costs (40) (15) Issuance of common stock, net 2 0 Other financing (9) 6 --------------- -------------- Net cash used in financing activities (387) (225) Effect of exchange rate changes on cash (15) (1) --------------- -------------- Total (decrease) increase in cash and cash equivalents (616) 406 Increase in cash and cash equivalents of discontinued operations and businesses held for sale (1) (18) Cash and cash equivalents, beginning 1,737 792 --------------- -------------- Cash and cash equivalents, ending $1,120 $1,180 =============== ==============
Business Segment Results Sales increased in all four business segments and the segment contribution to gross margin increased in the three largest segments. o In Contract Generation, AES's largest segment, sales grew 21% to $868 million and gross margin improved 24% to $359 million in the first quarter of 2004. Increases were due primarily to the addition of new generation plants and improved operating results at Gener in Chile, Kilroot in Northern Ireland and generation businesses in Brazil. o Large Utilities sales increased 17% to $818 million and gross margin improved 18% to $194 million for 2004. Increases were primarily driven by tariff increases at EDC and Eletropaulo along with lower fuel costs, reduced operating costs and favorable currency effects. o The Growth Distribution segment sales increased 24% to $328 million and gross margin increased 26% to $63 million, respectively, benefiting from improved tariffs and operating results, together with favorable currency effects and improved margins at distribution businesses in El Salvador. o Sales in Competitive Supply increased 6% to $243 million while gross margin declined 7% to $64 million, primarily as a result of lower capacity revenues and higher coal costs in New York during the first quarter of 2004. Overall, consolidated sales increased 18% to $2.3 billion for 2004 and total gross margin from the four operating segments increased 19% over 2003 to $680 million. Of the first quarter 2004 total segment gross margin, 53% was from Contract Generation, 29% from Large Utilities, 9% from Growth Distribution and 9% from Competitive Supply.
AES CORPORATION SEGMENT INFORMATION Quarter Ended March 31, ($ in millions) 2004 2003 -------------------------------- BUSINESS SEGMENTS REVENUES Contract Generation $868 $716 Competitive Supply 243 229 Large Utilities 818 702 Growth Distribution 328 264 -------------- --------------- Total sales 2,257 1,911 GROSS MARGIN Contract Generation $359 $290 Competitive Supply 64 69 Large Utilities 194 165 Growth Distribution 63 50 -------------- --------------- Total gross margin 680 574 INCOME BEFORE INCOME TAXES AND MINORITY INTEREST Contract Generation $190 $169 Competitive Supply 55 70 Large Utilities 117 73 Growth Distribution 31 38 Corporate (192) (137) -------------- --------------- Total income before income taxes 201 213 - --------------------------------------------------------------------------------------------------------------- GEOGRAPHIC SEGMENTS REVENUES North America $546 $546 Caribbean 390 347 South America 879 675 Europe/Africa 275 236 Asia 167 107 -------------- --------------- Total sales 2,257 1,911 INCOME BEFORE INCOME TAXES AND MINORITY INTEREST North America $118 $119 Caribbean 61 57 South America 92 68 Europe/Africa 57 61 Asia 65 45 Corporate (192) (137) -------------- --------------- Total income before income taxes 201 213
The AES Corporation Parent Financial Information Parent only data: last four quarters ($ in millions) 4 Quarters Ended June 30, September 30, December 31, March 31, Total subsidiary distributions & returns of capital to Parent 2003 2003 2003 2004 Actual Actual Actual Actual ---------- ------------ ------------ --------- Subsidiary distributions to Parent $ 773 $ 909 $ 1,008 $1,076 Net distributions to/(from) QHCs (1) 208 139 46 2 ----------- ------------- ------------ --------- Subsidiary distributions 981 1,048 1,054 1,078 Returns of capital distributions to Parent 54 248 242 244 Net returns of capital distributions to/(from) QHCs (1) 6 (1) 0 0 ----------- ------------- ------------ --------- Returns of capital distributions 60 247 242 244 Combined distributions & return of capital received 1,041 1,295 1,296 1,322 Less: combined net distributions & returns of capital to/(from) QHCs (1) (214) (138) (46) (2) ----------- ------------- ------------ --------- Total subsidiary distributions & returns of capital to Parent $ 827 $ 1,157 $ 1,250 $1,320 =========== ============= ============ ========= Parent only data: quarterly ($ in millions) Quarter Ended June 30, September 30, December 31, March 31, Total subsidiary distributions & returns of capital to Parent 2003 2003 2003 2004 Actual Actual Actual Actual ----------- ------------- ------------ --------- Subsidiary distributions to Parent $ 312 $ 312 $ 248 $ 204 Net distributions to/(from) QHCs (1) (12) 7 7 0 ----------- ------------- ------------ --------- Subsidiary distributions 300 319 255 204 Returns of capital distributions to Parent 24 199 17 4 Net returns of capital distributions to/(from) QHCs (1) 6 (7) 1 0 ----------- ------------- ------------ --------- Returns of capital distributions 30 192 18 4 Combined distributions & return of capital received 330 511 273 208 Less: combined net distributions & returns of capital to/(from) QHCs (1) 6 0 (8) 0 ----------- ------------- ------------ --------- Total subsidiary distributions & returns of capital to Parent $ 336 $ 511 $ 265 $ 208 =========== ============= ============ =========
Liquidity (2) Balance at ($ in millions) March 31, June 30, September 30, December 31, March 31, 2003 2003 2003 2003 2004 Actual Actual Actual Actual Actual ---------- --------- -------------- ----------- --------- Cash at Parent $ 395 $ 923 $ 525 $ 865 $ 268 Availability under revolver 28 39 172 180 371 Cash at QHCs (1) 66 29 41 26 17 ---------- --------- -------------- ----------- --------- Ending liquidity $ 489 $ 991 $ 738 $ 1,071 $ 656 ========== ========= ============== =========== =========
(1) The cash held at qualifying holding companies (QHCs) represents cash sent to subsidiaries of the company domiciled outside of the US. Such subsidiaries had no contractual restrictions on their ability to send cash to AES, the parent company. Cash at those subsidiaries was used for investment and related activities outside of the US. These investments included equity investments and loans to other foreign subsidiaries as well as development and general costs and expenses incurred outside the US. Since the cash held by these qualifying holding companies is available to the parent, AES uses the combined measure of subsidiary distributions to parent and qualified holding companies as a useful measure of cash available to the parent to meet its international liquidity needs. (2) AES believes that unconsolidated parent company liquidity is important to the liquidity position of AES as a Parent company because of the non-recourse nature of most of AES's indebtedness. Item 12. Results of Operations and Financial Condition On April 28, 2004, The AES Corporation issued a press release setting forth its first quarter financial results. A copy of the release is attached hereto as Exhibit 99.1 and incorporated by reference solely in Item 12 of this Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. The AES Corporation Date: April 28, 2004 By: /s/ Vincent W. Mathis -------------------------------- Name: Vincent W. Mathis Title: Assistant General Counsel INDEX TO EXHIBITS Exhibit No. Description - ----------- ----------- 99.1 Press Release dated April 28, 2004 EX-99.1 2 ex99-1_042704.txt PRESS RELEASE EXHIBIT 99.1 AES REPORTS STRONG FIRST-QUARTER RESULTS AND REAFFIRMS 2004 EARNINGS GUIDANCE Operating Income Increased 18% to $618 Million on Sales of $2.3 Billion ARLINGTON, VA, April 28, 2004 -- The AES Corporation (NYSE: AES) today reported first quarter results that included an increase of 18% in operating income to $618 million on sales of $2.3 billion. AES also reaffirmed its 2004 earnings guidance. The table below summarizes sales, operating income, income from continuing operations, diluted earnings per share from continuing operations, adjusted earnings per share*, and net income for the first quarter of 2004 and 2003. ($ millions except per share) First Quarter First Quarter 2004 2003 Sales $2,257 $1,911 Operating Income $618 $523 Income From Continuing Operations $74 $131 Diluted Earnings Per Share From Continuing Operations $0.12 $0.23 Adjusted Earnings Per Share* $0.17 $0.13 Net Income $48 $93 * non-GAAP financial measure - see definition below Commenting on the results, President and Chief Executive Officer Paul Hanrahan said, "We achieved broad-based, strong and encouraging sales and operating income growth during the quarter across our diversified portfolio of generation and distribution businesses. Our continued focus on operations, combined with stronger macroeconomic fundamentals, are both reflected in this quarter's results, and we continue to see additional opportunity ahead. I'm also encouraged by the progress and rational responses of regulatory authorities on tariff increases. We continued to reduce parent debt with additional repayments and repurchases this quarter totaling $351 million." Adjusted earnings per share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses associated with (a) early retirement of debt, (b) mark-to-market amounts related to FAS 133 derivative transactions, (c) foreign currency transaction impacts on net debt, and (d) significant asset impairments. AES believes that adjusted earnings per share better reflect the underlying business performance of the Company, and are considered in the Company's internal evaluation of financial performance. Factors in this determination include the variability associated with mark-to-market gains or losses related to certain derivative transactions, and periodic strategic decisions to dispose of certain assets which may influence results in a given quarter. For the first quarter of 2004, adjusted earnings per share were $0.17, an increase of 31% over adjusted earnings per share of $0.13 for the first quarter of 2003. Business Segment Results Sales increased in all four business segments and the segment contribution to gross margin increased in the three largest segments. o In Contract Generation, AES's largest segment, sales grew 21% to $868 million and gross margin improved 24% to $359 million in the first quarter of 2004. Increases were due primarily to the addition of new generation plants and improved operating results at Gener in Chile, Kilroot in Northern Ireland and generation businesses in Brazil. o Large Utilities sales increased 17% to $818 million and gross margin improved 18% to $194 million for 2004. Increases were primarily driven by tariff increases at EDC and Eletropaulo along with lower fuel costs, reduced operating costs and favorable currency effects. o The Growth Distribution segment sales increased 24% to $328 million and gross margin increased 26% to $63 million, respectively, benefiting from improved tariffs and operating results, together with favorable currency effects and improved margins at distribution businesses in El Salvador. o Sales in Competitive Supply increased 6% to $243 million while gross margin declined 7% to $64 million, primarily as a result of lower capacity revenues and higher coal costs in New York during the first quarter of 2004. Overall, consolidated sales increased 18% to $2.3 billion for 2004 and total gross margin from the four operating segments increased 19% over 2003 to $680 million. Of the first quarter 2004 total segment gross margin, 53% was from Contract Generation, 29% from Large Utilities, 9% from Growth Distribution and 9% from Competitive Supply. AES Reaffirms 2004 Forward-Looking Earnings Guidance AES reaffirmed its 2004 diluted earnings per share from continuing operations guidance of $0.62, excluding the $0.03 per share cost associated with the previously disclosed Gener debt transaction costs. Noting the Company's favorable earnings outlook, Hanrahan said, "We remain optimistic about the outlook for sales and earnings growth in 2004 and beyond, as we continue to drive performance through productivity improvement, continued deleveraging, and disciplined growth." Other The Company has adopted FASB's Interpretation No. 46 (Revised December 2003) (FIN 46R) regarding the consolidation of variable interest entities as of March 31, 2004. The Company continues to analyze recent interpretations of the pronouncement as they relate to variable interests, including certain power sales agreements, which if applicable, could lead to the deconsolidation of the associated entities. We will report our results consistent with FIN 46R within the first quarter 10Q filing. As the Company adopted FIN 46R on March 31, 2004, the outcome of any potential deconsolidation impacts, if any, will not affect the AES income statement for the three months ended March 31, 2004 and would only have an impact on certain balance sheet amounts and classifications. In future periods adoption of FIN 46R could reduce reported sales and costs of certain entities. This would not affect reported income from continuing operations or diluted earnings per share. About AES AES is a leading global power company, with 2003 sales of $8.4 billion. AES operates in 27 countries, generating 45,000 megawatts of electricity through 113 power facilities and delivering electricity through 17 distribution companies. Our 30,000 people are committed to operational excellence and meeting the world's growing power needs. To learn more about AES, please visit www.aes.com or contact AES investor relations at invest@aes.com. # # # Attachments: Consolidated Statements of Operation, Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Cash Flows, Segment Information, Geographic Information, Parent Financial Information and Reconciliation of Adjusted Earnings Per Share. Conference Call Information: AES will host a conference call today to discuss these results. The call will be held at 8:00 am Eastern Daylight Time (EDT). The call may be accessed via a live webcast which will be available at www.aes.com, or by telephone in listen-only mode at 1-888-694-4641. International callers should dial 1-973-935-8512. Please call at least five minutes before the scheduled start time. You will be requested to provide your name, e-mail address, and affiliation. The Company's First-Quarter 2004 Financial Review Presentation is also available at www.aes.com. A replay of the conference call will be available at www.aes.com, or by telephone until 6:00pm on Friday, May 7, 2004. Callers should dial 1-877-519-4471 and when prompted provide reservation number 4606100, followed by the pound (#) key. International dialers should dial 1-973-341-3080. Safe Harbor Disclosure: This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES's current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, continued normal levels of operating performance and electricity demand at our distribution companies and operational performance at our contract generation businesses consistent with historical levels. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, including, but not limited to the risks discussed under the caption "Cautionary Statements and Risk Factors" in AES's most recent annual report on Form 10-K. Readers are encouraged to read AES's filings to learn more about the risk factors associated with AES's business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
AES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS Quarter Ended March 31, ($ in millions, except per share amounts) 2004 2003 --------------------------------- REVENUES Sales and services $2,257 $1,911 OPERATING COSTS AND EXPENSES Cost of sales and services 1,577 1,337 Corporate and business development expenses 48 29 Other operating expense, net 14 22 --------------- --------------- Total operating costs and expenses 1,639 1,388 --------------- --------------- OPERATING INCOME 618 523 OTHER INCOME AND (EXPENSE) Interest expense, net (424) (431) Other nonoperating expense, net - 15 Foreign currency transaction (losses) gain (8) 82 Loss on sale of investments (1) - Equity in earnings of affiliates 16 24 --------------- --------------- INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 201 213 Income tax expense 64 61 Minority interest expense, net 63 21 --------------- --------------- INCOME FROM CONTINUING OPERATIONS 74 131 Loss from operations of discontinued components (net of income tax expense of $2 and tax benefit of $4, respectively) (26) (36) --------------- --------------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 48 95 Cumulative effect of accounting change (net of income tax benefit of $1) - (2) =============== =============== NET INCOME $48 $93 =============== =============== DILUTED EARNINGS PER SHARE: Income from continuing operations $0.12 $0.23 Discontinued operations (0.04) (0.06) Cumulative effect of accounting change - - --------------- --------------- Total $0.08 $0.17 =============== =============== Diluted weighted average shares outstanding (in millions) 633 567 === ===
AES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET March 31, December 31, ($ in millions, except per share amounts) 2004 2003 ----------------------------- Assets Current Assets: Cash and cash equivalents $1,120 $1,737 Restricted cash 725 288 Short term investments 201 189 Accounts receivable, net of reserves of $275 and $291, respectively 1,204 1,211 Inventory 357 376 Receivable from affiliates 3 3 Deferred income taxes - current 150 136 Prepaid expenses 103 64 Other current assets 695 677 Current assets of held for sale and discontinued businesses 223 205 -------------- -------------- Total current assets 4,781 4,886 Property, Plant and Equipment: Land 739 733 Electric generation and distribution assets 21,067 21,087 Accumulated depreciation (4,745) (4,593) Construction in progress 1,389 1,278 -------------- -------------- Property, plant and equipment, net 18,450 18,505 Other assets: Deferred financing costs, net 455 430 Investment in and advances to affiliates 665 648 Debt service reserves and other deposits 539 534 Goodwill, net 1,381 1,378 Deferred income taxes - noncurrent 788 781 Long-term assets of held for sale and discontinued businesses 746 750 Other assets 1,945 1,992 -------------- -------------- Total other assets 6,519 6,513 -------------- -------------- Total Assets $29,750 $29,904 ============== ============== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $1,127 $1,122 Accrued interest 366 561 Accrued and other liabilities 1,315 1,259 Current liabilities of held for sale and discontinued businesses 728 699 Recourse debt-current portion 1 77 Non-recourse debt-current portion 2,468 2,769 -------------- -------------- Total current liabilities 6,005 6,487 Long-term liabilities: Recourse debt 5,587 5,862 Non-recourse debt 10,687 10,930 Deferred income taxes 1,048 1,051 Long-term liabilities of held for sale and discontinued businesses 91 94 Pension liabilities 924 947 Other long-term liabilities 3,150 3,083 -------------- -------------- Total long-term liabilities 21,487 21,967 Minority Interest, including discontinued businesses of $12 and $12, respectively 1,168 805 Stockholders' equity: Common stock 6 6 Additional paid-in capital 5,363 5,737 Accumulated deficit (1,055) (1,103) Accumulated other comprehensive loss (3,224) (3,995) -------------- -------------- Total stockholders' equity 1,090 645 -------------- -------------- Total Liabilities and Stockholders' Equity $29,750 $29,904 ============== ==============
AES CORPORATION CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS March 31, March 31, ($ in millions) 2004 2003 ------------------------------ Operations Net income $48 $93 Adjustments: Depreciation and amortization-- continuing and discontinued operations 200 184 Cumulative effect of change in accounting principle - 3 Other non-cash (benefits)/charges 226 (54) Working capital, (net) (72) 220 --------------- -------------- Net cash provided by operating activities 402 446 Investing activities Property additions (190) (265) Proceeds from the sales of assets 27 585 Increase in restricted cash and other (453) (134) --------------- -------------- Net cash used in investing activities (616) 186 Financing activities Borrowings (repayments) under the revolving credit facilities, net - 8 Issuance of non-recourse debt and other coupon bearing securities 1,133 269 Repayments of non-recourse debt and other coupon bearing securities (1,473) (493) Payments for deferred financing costs (40) (15) Issuance of common stock, net 2 0 Other financing (9) 6 --------------- -------------- Net cash used in financing activities (387) (225) Effect of exchange rate changes on cash (15) (1) --------------- -------------- Total (decrease) increase in cash and cash equivalents (616) 406 Increase in cash and cash equivalents of discontinued operations and businesses held for sale (1) (18) Cash and cash equivalents, beginning 1,737 792 --------------- -------------- Cash and cash equivalents, ending $1,120 $1,180 =============== ==============
AES CORPORATION SEGMENT INFORMATION Quarter Ended March 31, ($ in millions) 2004 2003 -------------------------------- BUSINESS SEGMENTS REVENUES Contract Generation $868 $716 Competitive Supply 243 229 Large Utilities 818 702 Growth Distribution 328 264 -------------- --------------- Total sales 2,257 1,911 GROSS MARGIN Contract Generation $359 $290 Competitive Supply 64 69 Large Utilities 194 165 Growth Distribution 63 50 -------------- --------------- Total gross margin 680 574 INCOME BEFORE INCOME TAXES AND MINORITY INTEREST Contract Generation $190 $169 Competitive Supply 55 70 Large Utilities 117 73 Growth Distribution 31 38 Corporate (192) (137) -------------- --------------- Total income before income taxes 201 213 - --------------------------------------------------------------------------------------------------------------- GEOGRAPHIC SEGMENTS REVENUES North America $546 $546 Caribbean 390 347 South America 879 675 Europe/Africa 275 236 Asia 167 107 -------------- --------------- Total sales 2,257 1,911 INCOME BEFORE INCOME TAXES AND MINORITY INTEREST North America $118 $119 Caribbean 61 57 South America 92 68 Europe/Africa 57 61 Asia 65 45 Corporate (192) (137) -------------- --------------- Total income before income taxes 201 213
The AES Corporation Parent Financial Information Parent only data: last four quarters ($ in millions) 4 Quarters Ended June 30, September 30, December 31, March 31, Total subsidiary distributions & returns of capital to Parent 2003 2003 2003 2004 Actual Actual Actual Actual ---------- ------------ ------------ --------- Subsidiary distributions to Parent $ 773 $ 909 $ 1,008 $1,076 Net distributions to/(from) QHCs (1) 208 139 46 2 ----------- ------------- ------------ --------- Subsidiary distributions 981 1,048 1,054 1,078 Returns of capital distributions to Parent 54 248 242 244 Net returns of capital distributions to/(from) QHCs (1) 6 (1) 0 0 ----------- ------------- ------------ --------- Returns of capital distributions 60 247 242 244 Combined distributions & return of capital received 1,041 1,295 1,296 1,322 Less: combined net distributions & returns of capital to/(from) QHCs (1) (214) (138) (46) (2) ----------- ------------- ------------ --------- Total subsidiary distributions & returns of capital to Parent $ 827 $ 1,157 $ 1,250 $1,320 =========== ============= ============ ========= Parent only data: quarterly ($ in millions) Quarter Ended June 30, September 30, December 31, March 31, Total subsidiary distributions & returns of capital to Parent 2003 2003 2003 2004 Actual Actual Actual Actual ----------- ------------- ------------ --------- Subsidiary distributions to Parent $ 312 $ 312 $ 248 $ 204 Net distributions to/(from) QHCs (1) (12) 7 7 0 ----------- ------------- ------------ --------- Subsidiary distributions 300 319 255 204 Returns of capital distributions to Parent 24 199 17 4 Net returns of capital distributions to/(from) QHCs (1) 6 (7) 1 0 ----------- ------------- ------------ --------- Returns of capital distributions 30 192 18 4 Combined distributions & return of capital received 330 511 273 208 Less: combined net distributions & returns of capital to/(from) QHCs (1) 6 0 (8) 0 ----------- ------------- ------------ --------- Total subsidiary distributions & returns of capital to Parent $ 336 $ 511 $ 265 $ 208 =========== ============= ============ =========
Liquidity (2) Balance at ($ in millions) March 31, June 30, September 30, December 31, March 31, 2003 2003 2003 2003 2004 Actual Actual Actual Actual Actual ---------- --------- -------------- ----------- --------- Cash at Parent $ 395 $ 923 $ 525 $ 865 $ 268 Availability under revolver 28 39 172 180 371 Cash at QHCs (1) 66 29 41 26 17 ---------- --------- -------------- ----------- --------- Ending liquidity $ 489 $ 991 $ 738 $ 1,071 $ 656 ========== ========= ============== =========== =========
(1) The cash held at qualifying holding companies (QHCs) represents cash sent to subsidiaries of the company domiciled outside of the US. Such subsidiaries had no contractual restrictions on their ability to send cash to AES, the parent company. Cash at those subsidiaries was used for investment and related activities outside of the US. These investments included equity investments and loans to other foreign subsidiaries as well as development and general costs and expenses incurred outside the US. Since the cash held by these qualifying holding companies is available to the parent, AES uses the combined measure of subsidiary distributions to parent and qualified holding companies as a useful measure of cash available to the parent to meet its international liquidity needs. (2) AES believes that unconsolidated parent company liquidity is important to the liquidity position of AES as a Parent company because of the non-recourse nature of most of AES's indebtedness.
AES CORPORATION RECONCILIATION OF ADJUSTED EARNINGS PER SHARE (1) Quarter Ended March 31, ($ in millions) 2004 2003 ---------------- ---------------- Adjusted Diluted EPS From Continuing Operations $0.17 $0.13 FAS 133 Mark-to-Market Gains/(Losses) (2) (0.04) (0.01) Currency Transaction Gains/(Losses) - 0.10 Asset Impairment - (0.01) Debt Retirement Gains/(Losses) (0.01) 0.02 Diluted EPS From Continuing Operations $0.12 $0.23
(1) Adjusted earnings per share (a non-GAAP financial measure) is defined as diluted earnings per share from continuing operations excluding gains or losses associated with (a) early retirement of debt, (b) mark-to-market amounts related to FAS 133 derivative transactions, (c) foreign currency transaction impacts on net debt, and (d) significant asset impairments. AES believes that adjusted earnings per share better reflect the underlying business performance of the Company, and are considered in the Company's internal evaluation of financial performance. Factors in this determination include the variability associated with mark-to-market gains or losses related to certain derivative transactions, and periodic strategic decisions to dispose of certain assets which may influence results in a given quarter. (2) Includes $(0.03) related to Gener debt restructuring costs included in interest expense in the first quarter of 2004. -----END PRIVACY-ENHANCED MESSAGE-----