AMERICA ONLINE LATIN AMERICA, INC. OPERATING INFORMATION (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE INFORMATION) CONSOLIDATED CONDENSED OPERATING RESULTS AND EPS
Three Months Ended Nine Months Ended
September 30, September 30,
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2002 2001 2002 2001
---- ---- ---- ----
Revenues:
Subscriptions $15,775 $13,681
$47,693 $34,655
Advertising and
commerce 1,782 5,016 6,568 13,108
--------- --------- ----------
----------
Total revenues 17,557
18,697 54,261 47,763
Costs and expenses:
Cost of
revenues 20,940 36,075
79,703 95,921
Sales and
marketing 21,465 41,305
76,031 151,229
General and
administrative 8,464 11,160
23,763 29,542
--------- --------- ---------- ----------
Total costs and
expenses 50,869 88,540
179,497 276,692
Loss from operations
(33,312) (69,843) (125,236)
(228,929)
Other (expense) income, net (1,902) 712 (2,794) 4,448
--------- --------- ---------- ----------
Loss before income taxes
(35,214) (69,131) (128,030)
(224,481)
Income taxes 24
- 24 -
--------- --------- ---------- ----------
Net loss
(35,238) (69,131) (128,054)
(224,481)
Less: dividends on Series B
and C preferred
shares 4,653 4,579
13,955 12,354
--------- --------- ---------- ----------
Net loss applicable to
common
stockholders $(39,891) $(73,710)
$(142,009) $(236,835)
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Loss per common
share,
basic and
diluted $(0.59) $(1.10)
$(2.12) $(3.61)
========= ========= ========== ==========
Weighted average
common
shares
outstanding 67,070
67,055 67,067 65,652
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PRO FORMA EPS
Pro forma fully diluted calculation (1):
Net loss applicable
to
common
stockholders $(39,891) $(73,710)
$(142,009) $(236,835)
Plus: dividends on
Series B
and C preferred
shares 4,653 4,579
13,955 12,354
--------- --------- ---------- ----------
Net loss before
dividends
on Series B and C
preferred
shares $(35,238) $(69,131) $(128,054) $(224,481)
Divided by: Pro
forma fully
diluted shares
outstanding
(2) 344,812 323,683
336,445 310,092
--------- --------- ---------- ----------
Pro forma fully
diluted
loss per
share $(0.10) $(0.21)
$(0.38) $(0.72)
========= ========= ========== ==========
Reconciliation of Common Shares to Pro Forma Shares (2):
Weighted average
number of
common shares
outstanding 67,070 67,055
67,067 65,652
--------- --------- ---------- ----------
Plus: effect of
potential
dilutive common
shares
from:
-- Stock
options 16,068 15,881
16,064 15,965
-- AOL warrant 16,541 16,541 16,541 16,541
-- Convertible
debt 17,647 - 9,328 -
-- Preferred stock
-- Series B 116,072 114,370
116,031 108,114
-- Series C 111,414 109,836
111,414 103,820
--------- --------- ---------- ----------
277,742 256,628 269,378
244,440
--------- --------- ---------- ----------
Pro forma fully
diluted
shares
outstanding 344,812 323,683
336,445 310,092
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Notes:
------
(1) - AOL Latin America
considers the pro forma fully diluted earnings per share an important
indicator in evaluating its results of operations, as it provides a better
picture of the Company's full capitalization structure. However, pro forma
fully diluted earnings per share is a non-GAAP measure and should be considered
in addition to, not as a substitute for, operating loss, net loss, basic and
diluted loss per common share and other measures of financial performance
reported in accordance with generally accepted accounting principles in the
United States. (2) - On a weighted average basis, includes common stock and
assumes conversion of Series B and C preferred shares, the AOLTW senior
convertible note, the AOL Warrant, and the Employee Stock Option Plan
regardless of whether or not the instrument is dilutive or antidilutive.
AMERICA ONLINE LATIN AMERICA, INC. As of
FINANCIAL CONDITION INFORMATION
(IN THOUSANDS) Sept. 30, Dec. 31,
2002 2001
--------- --------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $7,251 $45,636
Short-term money market investments 362 1,040
---------
---------
Total cash and cash
equivalents
7,613 46,676
Trade accounts receivable, net of allowances 4,087 6,144
Other receivables 1,823 4,713
Prepaid expenses and other current assets 7,795 5,410
---------
---------
Total current
assets
21,318 62,943
Property and equipment, net 7,364
11,958
Investments, including securities available-for-
sale
218 1,361
Product development costs and other intangible
assets, net
428 988
Other assets 3,807 7,134
--------- ---------
TOTAL ASSETS
$33,135 $84,384
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=========
LIABILITIES AND STOCKHOLDERS' EQUITY (CAPITAL DEFICIENCY)
CURRENT LIABILITIES
Trade accounts payable
$6,156
$18,114
Payables to affiliates 11,884 15,198
Accrued expenses and other current liabilities 19,886 28,825
---------
---------
Total current
liabilities
37,926 62,137
Senior convertible notes 71,300 -
Deferred revenue and other non-current liabilities 657
1,124
--------- ---------
Total
liabilities
109,883 63,261
STOCKHOLDERS' EQUITY (CAPITAL DEFICIENCY) Preferred stock,
common stock and additional paid-
in capital , net of
unearned services
647,821 614,468
Accumulated deficit and accumulated other
comprehensive
loss
(724,569)(593,345)
---------
---------
Total stockholders' equity (capital deficiency) (76,748) 21,123
---------
---------
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
(CAPITAL
DEFICIENCY)
$33,135 $84,384
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