AOL Latin America
CONSOLIDATED CONDENSED OPERATING RESULTS AND EPS
Three Months Ended Twelve Months Ended
December 31, December 31,
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2002 2001 2002 2001
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(In thousands, except per share information)
Revenues:
Subscriptions $15,304 $15,263 $62,998 $49,918
Advertising and other 2,541 3,417 9,109 16,525
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Total revenues 17,845 18,680 72,107 66,443
Costs and expenses:
Cost of revenues (18,993) (32,974) (98,695) (128,896)
Sales and marketing (21,139) (39,795) (97,170) (191,024)
General and administrative (9,109) (12,048) (32,871) (41,591)
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Total costs and expenses (49,241) (84,817) (228,736) (361,511)
Loss from operations (31,396) (66,137) (156,629) (295,068)
Other (expense) income,
net (2,369) 305 (5,163) 4,753
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Loss before income taxes (33,765) (65,832) (161,792) (290,315)
Income taxes (51) - (75) -
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Net loss (33,816) (65,832) (161,867) (290,315)
Less: dividends on Series
B and C preferred shares (4,769) (4,651) (18,724) (17,005)
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Net loss applicable to
common stockholders $(38,585) $(70,483) $(180,591) $(307,320)
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Loss per common share,
basic and diluted $(0.58) $(1.05) $(2.69) $(4.66)
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Weighted average common
shares outstanding 67,070 67,055 67,068 66,018
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PRO FORMA EPS
Pro forma fully diluted
calculation (1):
Net loss applicable to
common stockholders $(38,585) $(70,483) $(180,591) $(307,320)
Plus: dividends on Series
B and C preferred shares 4,769 4,651 18,724 17,005
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Net loss before dividends
on Series B and C
preferred shares $(33,816) $(65,832) $(161,867) $(290,315)
Divided by: Pro forma
fully diluted shares
outstanding (2) 356,485 326,919 341,482 314,025
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Pro forma fully diluted
loss per share $(0.09) $(0.20) $(0.47) $(0.92)
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Reconciliation of Common
Shares to Pro Forma Shares (2):
Weighted average number of
common shares outstanding 67,070 67,055 67,068 66,018
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Plus: effect of potential
dilutive common shares
from:
-- Stock options 16,217 15,899 16,102 15,551
-- AOL warrant 16,541 16,541 16,541 16,541
-- Convertible debt 23,494 - 12,899 -
-- Preferred stock
-- Series B 121,749 116,010 117,458 110,230
-- Series C 111,414 111,414 111,414 105,685
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289,415 259,864 274,414 248,007
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Pro forma fully diluted
shares outstanding 356,485 326,919 341,482 314,025
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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.
AOL Latin America
As of
BALANCE SHEETS (In thousands) December 31, December 31,
2002 2001
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $74,586 $45,636
Short-term money market
investments 915 1,040
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Total cash and cash
equivalents 75,501 46,676
Trade accounts receivable,
net of allowances 3,567 6,144
Other receivables 2,090 4,713
Prepaid expenses and other
current assets 7,963 5,410
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Total current assets 89,121 62,943
Property and equipment,
net 6,983 11,958
Investments, including
securities available-for-
sale 158 1,361
Product development costs
and other intangible
assets, net 285 988
Other assets 3,727 7,134
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TOTAL ASSETS $100,274 $84,384
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LIABILITIES AND STOCKHOLDERS' EQUITY
(CAPITAL DEFICIENCY
CURRENT LIABILITIES
Trade accounts payable $8,746 $18,114
Payables to affiliates 6,893 15,198
Accrued expenses and other
current liabilities 20,481 28,825
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Total current liabilities 36,120 62,137
Senior convertible notes 160,000 -
Deferred revenue and other
non-current liabilities 1,239 1,124
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Total liabilities 197,359 63,261
STOCKHOLDERS' EQUITY (CAPITAL DEFICIENCY)
Preferred stock, common stock and additional paid-in capital , net of
unearned services 660,810 614,468
Accumulated deficit and
accumulated other
comprehensive loss (757,895) (593,345)
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Total stockholders' equity
(capital deficiency) (97,085) 21,123
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TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (CAPITAL DEFICIENCY) $100,274 $84,384
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