AMERICA ONLINE LATIN AMERICA, INC.
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OPERATING INFORMATION
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CONSOLIDATED CONDENSED OPERATING RESULTS AND EPS
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Three Months Ended Nine Months Ended
September 30, September 30,
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2004 2003 2004 2003
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(In thousands, except per share information)
(Unaudited) (Unaudited)
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Revenues:
Subscriptions $11,649 $14,778 $37,101 $45,600
Advertising and commerce 1,152 1,502 2,429 4,660
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Total revenues 12,801 16,280 39,530 50,260
Costs and expenses:
Cost of revenues (8,119) (12,882) (26,120) (44,405)
Sales and marketing (13,420) (16,450) (37,945) (50,401)
General and administrative (6,264) (6,286) (18,309) (20,092)
Impairment of Argentina VAT
receivable - - (4,009) -
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Total costs and expenses (27,803) (35,618) (86,383) (114,898)
Loss from operations (15,002) (19,338) (46,853) (64,638)
Other expense, net (4,316) (4,825) (12,594) (13,723)
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Loss before income taxes (19,318) (24,163) (59,447) (78,361)
Income tax (provision) benefit (29) 3 (88) 1
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Net loss (19,347) (24,160) (59,535) (78,360)
Less: dividends on Series B
and C preferred shares (4,259) (4,435) (12,008) (11,349)
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Net loss applicable to common
stockholders $(23,606) $(28,595) $(71,543) $(89,709)
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Loss per common share,
basic and diluted $(0.17) $(0.21) $(0.53) $(0.68)
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Weighted average common
shares outstanding 135,257 135,136 135,242 132,144
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As of
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AMERICA ONLINE LATIN AMERICA, INC. September 30, December 31,
BALANCE SHEETS (In thousands) 2004 2003
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(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $25,898 $32,633
Short-term money market investments 446 268
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Total cash and cash equivalents 26,344 32,901
Trade accounts receivable, net of
allowances 1,519 2,267
Other receivables 347 243
Prepaid expenses and other current assets 7,130 8,796
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Total current assets 35,340 44,207
Property and equipment, net 2,781 4,771
Investments, including securities
available-for-sale 604 194
Product development costs and other
intangible assets, net 30 50
Other assets 1,175 6,517
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TOTAL ASSETS $39,930 $55,739
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LIABILITIES AND CAPITAL DEFICIENCY
CURRENT LIABILITIES
Trade accounts payable $2,260 $3,264
Payables to affiliates 4,457 1,349
Accrued expenses and other current
liabilities 19,526 22,586
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Total current liabilities 26,243 27,199
Senior convertible notes 160,000 160,000
Deferred revenue and other non-current
liabilities 1,159 1,499
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Total liabilities 187,402 188,698
CAPITAL DEFICIENCY
Preferred stock, common stock and
additional paid-in capital, net of
unearned services and accumulated other
comprehensive loss 764,679 719,658
Accumulated deficit (912,151) (852,617)
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Total capital deficiency (147,472) (132,959)
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TOTAL LIABILITIES AND CAPITAL DEFICIENCY $39,930 $55,739
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CONSOLIDATED CONDENSED CASH FLOW INFORMATION (in thousands)
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Three Months Ended Nine Months Ended
September 30, September 30,
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2004 2003 2004 2003
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(Unaudited) (Unaudited)
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OPERATING ACTIVITIES
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Net loss $(19,347) $(24,160) $(59,535) $(78,360)
Net operating activity 16,235 14,701 49,302 39,711
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Net cash used in operating
activities (3,112) (9,459) (10,233) (38,649)
Net cash used in investing
activities (12) (349) (115) (1,041)
Net cash provided by financing
activities 1,072 2,670 3,550 2,670
Effect of exchange rate
changes on cash and cash
equivalents 531 377 241 682
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Net decrease in cash and cash
equivalents (1,521) (6,761) (6,557) (36,338)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 27,865 45,924 32,901 75,501
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CASH AND CASH EQUIVALENTS,
END OF PERIOD $26,344 $39,163 $26,344 $39,163
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