AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Quarter
Ended
March 31,
($ in millions, except per share amounts) 2005 2004
---------------
Revenues $2,645 $2,257
Cost of sales (1,863) (1,577)
-------
-------
GROSS MARGIN
782 680
General and administrative expenses (49) (48)
-------
-------
OPERATING
INCOME
733 632
Interest expense (467) (493)
Interest income 86
69
Other nonoperating expense, net (15)
(14)
Foreign currency transaction losses (12) (8)
Loss on sale of investments - (1)
Equity in earnings of affiliates 25
16
-------
-------
INCOME BEFORE
INCOME TAXES AND MINORITY INTEREST
350 201
Income tax expense
(126) (64)
Minority interest expense, net (91)
(63)
-------
-------
INCOME FROM
CONTINUING OPERATIONS
133 74
Loss from operations of discontinued components (net
of income tax
expense of $0 and $2, respectively)
- (26)
-------
-------
INCOME BEFORE
CUMULATIVE EFFECT OF ACCOUNTING CHANGE
133 48
Cumulative effect of accounting change - -
------- -------
NET INCOME
$ 133 $ 48
=======
=======
DILUTED EARNINGS PER SHARE
Income from continuing operations $ 0.20
$ 0.12
Discontinued operations - (0.04)
Cumulative effect of accounting change - -
-------
-------
Total $ 0.20 $
0.08
=======
=======
Diluted weighted average shares outstanding (in
millions)
660 633
======= =======
AES CORPORATION
SEGMENT INFORMATION (unaudited)
Quarter
Ended
March 31,
($ in millions) 2005 2004
---------------
BUSINESS SEGMENTS
REVENUES
Large
Utilities
$1,007 $ 818
Growth Distribution 374 328
Contract
Generation
985 868
Competitive
Supply
279 243
-------
-------
Total
revenues
$2,645 $2,257
GROSS MARGIN
Large
Utilities
$ 252 $ 194
Growth
Distribution 73 63
Contract Generation
393 359
Competitive
Supply
64 64
-------
-------
Total gross
margin
$ 782 $ 680
INCOME BEFORE INCOME TAXES AND MINORITY INTEREST
Large
Utilities
$ 153 $ 117
Growth
Distribution 45 31
Contract
Generation
252 190
Competitive
Supply
53 55
Corporate
(153) (192)
------- -------
Total income
before income taxes and minority
interest
$ 350 $ 201
----------------------------------------------------------------------
GEOGRAPHIC SEGMENTS
REVENUES
North America $ 540
$ 546
Caribbean
403 391
South America
1,192 879
Europe/Africa 309
274
Asia
201 167
-------
-------
Total
revenues
$2,645 $2,257
INCOME BEFORE INCOME TAXES AND MINORITY INTEREST
North America $ 114
$ 118
Caribbean
55 61
South America
190 92
Europe/Africa
79 57
Asia
65 65
Corporate
(153) (192)
------- -------
Total income
before income taxes and minority
interest
$ 350 $ 201
AES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
March 31, December 31,
($ in millions) 2005 2004
----------------------
ASSETS
CURRENT ASSETS
Cash and cash
equivalents $ 1,555
$ 1,396
Restricted
cash
334 395
Short term
investments
57 153
Accounts
receivable, net of reserves of $322
and $303,
respectively
1,547 1,575
Inventory
413 418
Receivable from
affiliates
7 8
Deferred income
taxes - current
193 187
Prepaid
expenses 116 93
Other current
assets
674 713
Current assets of
held for sale and
discontinued
businesses
- -
---------
------------
Total current
assets
4,896 4,938
PROPERTY, PLANT AND
EQUIPMENT
Land
783 788
Electric generation
and distribution assets 22,463 22,434
Accumulated
depreciation and amortization
(5,530) (5,353)
Construction in
progress
1,107 919
---------
------------
Property, plant
and equipment, net
18,823 18,788
OTHER ASSETS
Deferred financing
costs, net 496 513
Investment in and
advances to affiliates
684 655
Debt service reserves
and other deposits 678 737
Goodwill, net 1,422 1,378
Deferred income
taxes - noncurrent
798 813
Long-term assets of
held for sale and
discontinued
businesses
- -
Other assets
1,866 1,910
---------
------------
Total other
assets
5,944 6,006
---------
------------
TOTAL
ASSETS $
29,663 $ 29,732
=========
============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts
payable
$ 1,106 $
1,143
Accrued
interest
409 336
Accrued and other
liabilities
1,686 1,583
Current liabilities
of held for sale and
discontinued
businesses
- -
Recourse
debt-current portion
146 142
Non-recourse
debt-current portion
1,748 1,618
---------
------------
Total current
liabilities
5,095 4,822
LONG-TERM
LIABILITIES
Non-recourse
debt
11,435 11,813
Recourse debt 5,016 5,010
Deferred income
taxes
729 685
Long-term
liabilities of held for sale and
discontinued
businesses
- -
Pension
liabilities 869 891
Other long-term
liabilities
3,108 3,261
---------
------------
Total long-term
liabilities
21,157 21,660
Minority
Interest 1,663 1,605
STOCKHOLDERS'
EQUITY
Common stock
7 7
Additional paid-in
capital 6,368 6,341
Accumulated
deficit
(680) (813)
Accumulated other
comprehensive loss
(3,947) (3,890)
---------
------------
Total
stockholders' equity 1,748 1,645
---------
------------
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $ 29,663 $
29,732
=========
============
AES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
March 31,
($ in millions) 2005 2004
------- -------
OPERATING ACTIVITIES
Net income
$ 133 $ 48
Adjustments:
Depreciation and
amortization of intangible assets
224 200
Other non-cash
charges
153 226
Increase in
working capital
(84) (78)
Changes in other
assets and liabilities
94 6
-------
-------
Net cash
provided by operating activities
520 402
INVESTING ACTIVITIES
Property
additions
(271) (190)
Proceeds from the
sale of assets
3 27
Sale of short-term
investments
430 392
Purchase of
short-term investments
(330) (428)
Acquisitions, net
of cash acquired
(85) -
Decrease (increase)
in restricted cash 67 (435)
Decrease (increase)
in debt service reserves and
other assets
27 (4)
Other
investing (7) 7
------- -------
Net cash used in
investing activities
(166) (631)
FINANCING ACTIVITIES
Borrowings under
the revolving credit facilities
10 -
Issuance of
non-recourse debt and other coupon
bearing securities 416 1,133
Repayments of
non-recourse debt and other coupon
bearing
securities
(586) (1,473)
Payments for
deferred financing costs
(1) (40)
Dividends to
minority interests, net
(21) (8)
Issuance of common
stock, net
8 2
Other
financing (2) (1)
------- -------
Net cash used in
financing activities
(176) (387)
Effect of
exchange rate changes on cash
(19) (15)
-------
-------
Total increase (decrease) in cash and cash equivalents 159
(631)
Decrease in cash and cash equivalents of discontinued
operations and
businesses held for sale
- (1)
Cash and cash equivalents, beginning 1,396 1,727
-------
-------
Cash and cash equivalents, ending $1,555
$1,095
=======
=======
AES CORPORATION
RECONCILIATION OF ADJUSTED EARNINGS PER SHARE (1) (unaudited)
Quarter
Ended
March
31,
($ per share) 2005 2004
-------------
Adjusted Earnings Per Share $0.17 $0.17
FAS 133
Mark-to-Market Gains/(Losses) (2) - (0.05)
Currency
Transaction Gains/(Losses) 0.03 0.01
Net Asset
Gains/(Losses and Impairments) - -
Debt Retirement
Gains/(Losses)
- (0.01)
------
------
Diluted EPS From Continuing Operations $0.20 $0.12
======
======
(1) Adjusted earnings per share (a non-GAAP financial
measure) is
defined as
diluted earnings per share from continuing operations
excluding gains
or losses associated with (a) mark-to-market
amounts related
to FAS 133 derivative transactions, (b) foreign
currency
transaction impacts on the net monetary position related
to Brazil,
Venezuela, and Argentina, (c) significant asset gains
or losses due to
disposition transactions and impairments, and (d)
early retirement
of recourse debt. AES believes that adjusted
earnings per
share better reflects the underlying business
performance of
the Company, and is considered in the Company's
internal
evaluation of financial performance. Factors in this
determination
include the variability associated with
mark-to-market
gains or losses related to certain derivative
transactions,
currency transaction gains or losses, periodic
strategic
decisions to dispose of certain assets which may
influence results
in a given period, and the early retirement of
corporate debt.
(2) The Quarter Ended March 31, 2004 includes $(0.03)
related to Chile
debt
restructuring costs included in interest expense.
The AES Corporation
Parent Financial Information
----------------------------------------------------------------------
Parent only data: last four quarters
($ in millions)
4 Quarters Ended
March December September June
31, 31, 30, 30,
Total subsidiary distributions & 2005
2004 2004 2004
returns of capital
to Parent Actual Actual
Actual Actual
-------------------------------- ------- -------- --------- -------
Subsidiary distributions to Parent $ 977 $
991 $ 953 $1,056
Net distributions to/(from)
QHCs (1) 18 13 29 24
------- -------- --------- -------
Subsidiary distributions 995
1,004 982 1,080
Returns of capital distributions to
Parent 115 116 130 219
Net returns of capital
distributions
to/(from) QHCs (1) 11 11 12 (6)
------- -------- ---------
-------
Returns of capital distributions 126 127 142
213
Combined distributions & return of
capital
received 1,121 1,131
1,124 1,293
Less: combined net distributions &
returns of capital
to/(from)
QHCs (1) (29) (24)
(41) (18)
------- -------- ---------
-------
Total subsidiary distributions &
returns of capital
to Parent $1,092 $ 1,107
$ 1,083 $1,275
======= ======== =========
=======
Parent only data: quarterly
($ in millions) Quarter Ended
March December September June
31, 31, 30, 30,
Total subsidiary distributions & 2005
2004 2004 2004
returns of capital
to Parent Actual Actual
Actual Actual
-------------------------------- ------- -------- --------- -------
Subsidiary distributions to Parent $ 190 $
286 $ 209 $ 292
Net distributions to/(from)
QHCs (1) 5 (9) 12 10
------- -------- ---------
-------
Subsidiary distributions 195
277 221 302
Returns of capital distributions to
Parent 2 3 110 -
Net returns of capital
distributions
to/(from) QHCs (1) - - 11 -
------- -------- ---------
-------
Returns of capital distributions 2 3 121 -
Combined distributions & return of
capital
received 197 280 342 302
Less: combined net distributions &
returns of capital
to/(from)
QHCs (1) (5) 9
(23) (10)
------- -------- ---------
-------
Total subsidiary distributions &
returns of capital
to Parent $ 192
$ 289 $ 319 $
292
======= ======== =========
=======
Liquidity (2)
------------- Balance at
($ in millions) March
December September June
31, 31, 30, 30,
2005 2004 2004 2004
Actual Actual
Actual Actual
------- -------- ---------
-------
Cash at Parent $
256 $ 287 $ 525
$ 310
Availability under revolver 218 352 325 331
Cash at QHCs (1) 3
4 13 15
------- -------- ---------
-------
Ending
liquidity $ 477
$ 643 $ 863 $
656
======= ========
========= =======
(1) The cash held at qualifying holding companies (QHCs)
represents
cash sent to
subsidiaries of the company domiciled outside the
US. Such
subsidiaries had no contractual restrictions on their
ability to send
cash to AES, the parent company. Cash at those
subsidiaries was
used for investment and related activities
outside the US.
These investments included equity investments
and loans to
other foreign subsidiaries as well as development and
general costs and
expenses incurred outside the US. Since the cash
held by these
qualifying holding companies is available to the
parent, AES uses
the combined measure of subsidiary distributions
to parent and
qualified holding companies as a useful measure of
cash available to
the parent to meet its international liquidity
needs.
(2) AES believes that unconsolidated parent company
liquidity is
important to the
liquidity position of AES as a Parent company
because of the
non-recourse nature of most of AES's
indebtedness.
SOURCE: AES Corporation