AOL Latin AmericaCONSOLIDATED CONDENSED OPERATING RESULTS AND EPS Three Months Ended Twelve Months Ended December 31, December 31, ------------ ------------ 2002 2001 2002 2001 ---- ---- ---- ---- (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 --------- --------- ----------- ---------- 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) --------- --------- ----------- ---------- 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 --------- --------- ----------- ----------Loss before income taxes (33,765) (65,832) (161,792) (290,315)Income taxes (51) - (75) - --------- --------- ----------- ----------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) --------- --------- ----------- ---------- Net loss applicable to common stockholders $(38,585) $(70,483) $(180,591) $(307,320) ========= ========= =========== ========== Loss per common share, basic and diluted $(0.58) $(1.05) $(2.69) $(4.66) ========= ========= =========== ========== Weighted average common shares outstanding 67,070 67,055 67,068 66,018 ========= ========= =========== ========== PRO FORMA EPSPro forma fully dilutedcalculation (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 --------- --------- ----------- ---------- 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 --------- --------- ----------- ---------- Pro forma fully diluted loss per share $(0.09) $(0.20) $(0.47) $(0.92) ========= ========= =========== ========== Reconciliation of CommonShares to Pro Forma Shares (2):
Weighted average number of common shares outstanding 67,070 67,055 67,068 66,018 --------- --------- ----------- ---------- 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 --------- --------- ----------- ---------- 289,415 259,864 274,414 248,007 --------- --------- ----------- ---------- Pro forma fully diluted shares outstanding 356,485 326,919 341,482 314,025 ========= ========= =========== ========== 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 ofBALANCE SHEETS (In thousands) December 31, December 31, 2002 2001 ---- ---- ASSETS CURRENT ASSETS: Cash and cash equivalents $74,586 $45,636 Short-term money market investments 915 1,040 ----------- ---------- 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 ----------- ---------- 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 ----------- ---------- TOTAL ASSETS $100,274 $84,384 =========== ========== 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 ----------- ---------- Total current liabilities 36,120 62,137 Senior convertible notes 160,000 - Deferred revenue and other non-current liabilities 1,239 1,124 ----------- ---------- 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) ----------- ---------- Total stockholders' equity (capital deficiency) (97,085) 21,123 ----------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (CAPITAL DEFICIENCY) $100,274 $84,384 =========== ==========