AMERICA ONLINE LATIN AMERICA, INC.
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Three Months Ended Six Months Ended
June 30, June 30,
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2004 2003 2004 2003
CONSOLIDATED CONDENSED ----------- ----------- ----------- -----------
OPERATING RESULTS AND (In thousands, except per share information)
EPS Unaudited Unaudited
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Revenues:
Subscriptions $11,982 $15,864 $25,452 $30,822
Advertising and
commerce 728 1,821 1,277 3,158
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Total revenues 12,710 17,685 26,729 33,980
Costs and expenses:
Cost of revenues (8,677) (14,954) (18,002) (31,523)
Sales and marketing (12,389) (17,412) (24,526) (33,951)
General and
administrative (6,287) (6,841) (12,174) (13,806)
Impairment of
Argentina VAT
receivable (4,009) - (4,009) -
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Total costs and
expenses (31,362) (39,207) (58,711) (79,280)
Loss from operations (18,652) (21,522) (31,982) (45,300)
Other expense, net (4,115) (4,477) (8,148) (8,898)
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Loss before income
taxes (22,767) (25,999) (40,130) (54,198)
Income tax (provision)
benefit (29) (29) (59) (2)
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Net loss (22,796) (26,028) (40,189) (54,200)
Less: dividends on
Series B and C
preferred shares (4,088) (3,882) (7,749) (6,915)
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Net loss applicable to
common stockholders $(26,884) $(29,910) $(47,938) $(61,115)
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Loss per common
share, basic and
diluted $(0.20) $(0.22) $(0.35) $(0.47)
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Weighted average
common shares
outstanding 135,257 135,135 135,234 130,246
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AMERICA ONLINE LATIN AMERICA, INC.
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As of
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BALANCE SHEETS (In June 30, Dec. 31,
thousands) 2004 2003
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(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash
equivalents $27,638 $32,633
Short-term money
market investments 227 268
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Total cash and cash
equivalents 27,865 32,901
Trade accounts
receivable, net of
allowances 1,691 2,267
Other receivables 392 243
Prepaid expenses and
other current assets 6,239 8,796
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Total current
assets 36,187 44,207
Property and
equipment, net 3,202 4,771
Investments, including
securities available-
for-sale 648 194
Product development
costs and other
intangible assets,
net 36 50
Other assets 1,817 6,517
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TOTAL ASSETS $41,890 $55,739
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LIABILITIES AND
CAPITAL DEFICIENCY
CURRENT LIABILITIES
Trade accounts payable $2,694 $3,264
Payables to affiliates 3,773 1,349
Accrued expenses and
other current
liabilities 16,495 22,586
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Total current
liabilities 22,962 27,199
Senior convertible
notes 160,000 160,000
Deferred revenue and
other non-current
liabilities 1,391 1,499
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Total liabilities 184,353 188,698
CAPITAL DEFICIENCY
Preferred stock,
common stock and
additional paid-in
capital , net of
unearned services and
accumulated other
comprehensive loss 750,260 719,658
Accumulated deficit (892,806) (852,617)
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Total capital
deficiency (142,463) (132,959)
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TOTAL LIABILITIES
AND CAPITAL
DEFICIENCY $41,890 $55,739
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CONSOLIDATED CONDENSED
CASH FLOW INFORMATION
(in thousands)
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Three Months Ended Six Months Ended
June 30, June 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 $(22,796) $(26,028) $(40,189) $(54,200)
Net operating activity 20,498 11,967 33,069 25,011
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Net cash used in
operating activities (2,298) (14,061) (7,120) (29,189)
Net cash used in
investing activities (42) (348) (103) (692)
Net cash provided by
financing activities 1,039 - 2,475 -
Effect of exchange
rate changes on cash
and cash equivalents (165) (183) (288) 304
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Net decrease in cash
and cash equivalents (1,466) (14,592) (5,036) (29,577)
CASH AND CASH
EQUIVALENTS,
BEGINNING OF PERIOD 29,331 60,516 32,901 75,501
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CASH AND CASH
EQUIVALENTS, END OF
PERIOD $27,865 $45,924 $27,865 $45,924
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