AES Reports $6.51 Per Share Loss for 2002 Which Includes $2.7 Billion in Previously Announced Charges During the Quarter.Energy Editors/Business Editors ARLINGTON Arlington, county, United States Arlington, county (1990 pop. 170,936), N Va., across the Potomac River from Washington, D.C. Arlington is a residential and commercial suburb of Washington. , Va.--(BUSINESS WIRE)--Feb. 13, 2003 AES Corporation AES Corporation AES (NYSE) is a Fortune 1000 company that generates and distributes electrical power. It was founded on January 28, 1981 by Roger Sant from the US Federal Energy Administration and Dennis Bakke from the Office of Management and Budget. (NYSE NYSE See: New York Stock Exchange :AES): Diluted Earnings per Share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of Before Charges were $0.78 for 2002; Parent Operating Cash Flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was $1.095 Billion The AES Corporation (NYSE: AES) announced today that net income from recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. operations for 2002 was $421 million before certain charges. Diluted earnings per share from recurring operations were $0.78 for the year. Net income (loss) and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings (loss) per share for the year, after all charges, were $(3.509) billion and $(6.51) per share, respectively. For the year, revenues increased 13% to $8.6 billion. For the quarter ended December December: see month. 31, 2002, net income and diluted earnings per share from recurring operations were $15 million and $0.03 per share, respectively. Net income (loss) and diluted earnings (loss) per share for the quarter, after all charges, were $(2.766) billion and $(5.08) per share, respectively. Parent Operating Cash Flow ("POCF POCF Proof of Catching A Fish (Lineage 2 game) POCF Pre-Occupancy Cash Flow ") for 2002 was $1.095 billion. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Hanrahan, President and Chief Executive Officer, commented, "AES is on the road to recovery. Despite an extremely challenging year for us and the entire sector, I am proud of the overall progress AES made in 2002. As a result of our efforts last year, we have significantly improved our liquidity situation. Looking ahead to 2003, we are focused on substantially improving the performance of our businesses across the company to provide value to our shareholders and to position AES for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth." Barry Barry, Welsh Barri, town (1991 pop. 45,053) and port, Vale of Glamorgan, S Wales, on the Bristol Channel. Once a major coal-exporting port, its more diversified export products include cement, flour, and steel products. Sharp, Chief Financial Officer, stated, "With our continued emphasis on performance improvements and cash flow, we achieved POCF of $1.095 billion for 2002. Combined with our successful corporate refinancing Refinancing An extension and/or increase in amount of existing debt. at the end of 2002 and proceeds from our asset sales program, we now have liquidity exceeding $500 million and a flexible amortization schedule for continuing to reduce debt at the parent company level over the next several years. Looking forward to 2003, we expect consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net cash from our subsidiary operating activities of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.2 billion - which will enable cash distributions to the parent as POCF to continue at an estimated $1.0 billion during 2003, further supporting our continued progress toward a stronger balance sheet." AES's Expectations for 2003 Information contained in this release constitutes forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. These statements are not intended to be a guarantee of performance, but instead constitute AES's current expectation based on reasonable assumptions. Actual events and results may differ materially from those projected. In addition to those listed below, important factors that could affect actual results are discussed in AES's filings with the Securities Exchange Commission, and readers are encouraged to read those filings to learn more about the risk factors associated with AES's businesses. AES currently expects its earnings per share for 2003 before discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , to be $0.50 per share. There are a number of market factors, including foreign exchange rates, commodity prices and interest rates, as well as other significant business factors that could make our actual results vary from this expectation. This expectation excludes the impact of adopting new accounting principles and excludes the effects of any future business acquisitions or dispositions. Conference Call Information This information will be discussed on a conference call to be held today, Thursday Thursday: see week. February February: see month. 13, 2003, at 9:00 am (Eastern Time). You may access the call via a live webcast which will be available online at http://www.aes.com under the Investor Relations Investor relations The process by which the corporation communicates with its investors. section. This webcast will be available online until Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , February 21, 2003. Also a telephonic replay of the call will be available from approximately 11:30 am on Thursday, February 13, until 6:00 pm on Friday, February 21 (Eastern Time). Please dial (800) 633 8284. The system will ask for a reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number, please enter 21100497 followed by the pound key #. International callers should dial (402) 977 9140. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This news release may contain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " regarding The AES Corporation's business. These statements are not historical facts, but statements that involve risks and uncertainties. Actual results could differ materially from those projected in these forward-looking statements. For a discussion of such risks and uncertainties, see "Risk Factors" in the Company's Annual Report or Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the most recently ended fiscal year. AES is a leading global power company comprised of contract generation, competitive supply, large utilities and growth distribution businesses. The company's generating assets include interests in 176 facilities totaling over 60 gigawatts of capacity, in 33 countries. AES's electricity distribution network sells 108,000 gigawatt gig·a·watt n. Abbr. GW One billion (109) watts. hours per year to over 16 million end-use customers. For more general information visit our web site at www.aes.com or contact investor relations at investing@aes.com.
THE AES CORPORATION
------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED
DECEMBER 31, 2002 AND 2001
----------------------------------------------------------------------
Quarter Quarter
Ended Ended
($ in millions, except per share amounts) 12/31/2002 12/31/2001
----------------------------------------------------------------------
REVENUES:
Sales and services $2,214 $1,926
OPERATING COSTS AND EXPENSES:
Cost of sales and services 2,000 1,287
Selling, general and administrative expenses 44 47
----------------------
Total operating costs and expenses 2,044 1,334
----------------------
OPERATING INCOME 170 592
OTHER INCOME AND (EXPENSE):
Interest expense, net (439) (368)
Other expense, net (48) (1)
Equity in (loss) earnings of affiliates (before
income tax) (239) 50
(Loss) gain on sale of assets and asset
impairment expense (1,928) 18
----------------------
(LOSS) INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST (2,484) 291
Income tax (benefit) expense (8) 66
Minority interest (income) expense (23) 38
----------------------
(LOSS) INCOME FROM CONTINUING
OPERATIONS (2,453) 187
Loss from operations of discontinued components
(net of income taxes of $136 and $6,
respectively) (313) (143)
----------------------
NET (LOSS) INCOME $(2,766) $44
======================
DILUTED EARNINGS PER SHARE:
(Loss) income from continuing operations $(4.50) $0.35
Discontinued operations (0.58) (0.27)
----------------------
Total $(5.08) $0.08
======================
Diluted weighted average
shares outstanding (in millions) 545 541
======================
THE AES CORPORATION --- Supplemental Schedule
---------------------------------------------------
Reconciliation of GAAP net (loss) income before discontinued
operations to net income excluding Brazil, Argentina and
Venezuela foreign currency effects, effects of FAS No. 133
and nonrecurring items.
FOR THE QUARTERS ENDED DECEMBER 31, 2002 AND 2001
----------------------------------------------------------------------
($ in millions,
except per share
amounts)
---------------------------
Quarter ended Quarter
12/31/2002 ended
12/31/2001
---------------------------
Amount Amount Amount Amount
per per
share share
---------------------------
Net (loss) income before discontinued
operations $(2,453) $(4.50) $187 $0.35
South America foreign currency transaction
losses (gains), net (1) 31 0.06 (48)(0.09)
Mark to market losses from FAS No. 133 (2) 48 0.09 7 0.01
Loss (gain) on sale of assets and asset
impairment expense (3) 2,389 4.38 (16)(0.03)
---------------------------
Net income from recurring operations $15 $0.03 $130 $0.24
===========================
Diluted weighted average shares
outstanding (in millions) 545 536
======= ======
(1) South America foreign currency transaction losses, net,
consist of the following in 2002: a gain of approximately $46
million after income tax, or $0.08 per share, from Brazil; a
loss of approximately $5 million after income tax, or $0.01
per share, from Argentina; and a loss of approximately $72
million after income tax, or $0.13 per share, from Venezuela.
For 2001, South America foreign currency transaction gains
consist of a gain of approximately $48 million after income
tax, or $0.09 per share, from Brazil.
(2) Mark to market losses from FAS No. 133 consist of the
following in 2002: a loss of approximately $17 million after
income tax, or $0.03 per share, from interest rate
instruments, a loss of approximately $18 million after income
tax, or $0.04 per share, from foreign exchange rate
instruments, and a loss of $13 million after income tax, or
$0.02 per share, from commodity contracts. For 2001, mark to
market losses from FAS No. 133 consist of the following: a
gain of approximately $3 million after income tax, or $0.01
per share, from interest rate instruments, a loss of
approximately $8 million after income tax, or $0.02 per share,
from foreign exchange rate instruments, and a loss of
approximately $2 million after income tax from commodity
contracts.
(3) Loss on sale of assets and asset impairment expense consists
of the following in 2002: a loss of approximately $1.293
billion after income tax, or $2.37 per share, from goodwill
and other asset impairment charges in Brazil; a loss of
approximately $1.013 billion after income tax, or $1.86 per
share, from asset impairment charges in the United Kingdom; a
loss of approximately $63 million after income tax, or $0.11
per share, from asset impairment charges in the United States;
and a loss of approximately $20 million after income tax, or
$0.04 per share, from other asset impairment charges. For
2001, amount consists of a gain of $16 million after income
tax, or $0.03 per share, related to a gain recognized on the
sale of CANTV shares.
THE AES CORPORATION
------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
----------------------------------------------------------------------
Year Ended Year Ended
($ in millions, except per share amounts) 12/31/2002 12/31/2001
----------------------------------------------------------------------
REVENUES:
Sales and services $8,632 $7,645
OPERATING COSTS AND EXPENSES:
Cost of sales and services 6,713 5,468
Selling, general and administrative expenses 112 120
----------------------
Total operating costs and expenses 6,825 5,588
----------------------
OPERATING INCOME 1,807 2,057
OTHER INCOME AND (EXPENSE):
Interest expense, net (1,719) (1,386)
Other (expense) income, net (324) 21
Equity in (loss) earnings of affiliates (before
income tax) (203) 176
(Loss) gain on sale of assets and asset
impairment expense (2,212) 18
Nonrecurring severance and transaction costs - (131)
----------------------
(LOSS) INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST (2,651) 755
Income tax (benefit) expense (27) 206
Minority interest (income) expense (34) 103
----------------------
(LOSS) INCOME FROM CONTINUING
OPERATIONS (2,590) 446
Loss from operations of discontinued components
(net of income taxes of $90 and $10,
respectively) (573) (173)
----------------------
(LOSS) INCOME BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE (3,163) 273
Cumulative effect of accounting change
(net of income taxes of $72) (346) -
----------------------
NET (LOSS) INCOME $(3,509) $273
======================
DILUTED EARNINGS PER SHARE:
(Loss) income from continuing operations $(4.81) $0.83
Discontinued operations (1.05) (0.32)
Cumulative effect of accounting change (0.65) -
----------------------
Total $(6.51) $0.51
======================
Diluted weighted average
shares outstanding (in millions) 539 538
======================
THE AES CORPORATION --- Supplemental Schedule
------------------------------------------------
Reconciliation of GAAP net (loss) income before discontinued
operations and accounting change to net income excluding Brazil,
Argentina and Venezuela foreign currency effects, effects of FAS
No. 133 and nonrecurring items.
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
----------------------------------------------------------------------
($ in millions, except
per share amounts)
------------------------------
Year ended Year ended
12/31/2002 12/31/2001
------------------------------
Amount Amount
per per
Amount share Amount share
------------------------------
Net (loss) income before
discontinued operations
and accounting change $(2,590) $(4.81) $446 $0.83
South America foreign currency
transaction
losses, net (1) 353 0.66 128 0.24
Mark to market (gains) losses from FAS
No. 133 (2) (42) (0.08) 36 0.06
Loss (gain) on sale of assets and asset
impairment expense (3) 2,601 4.83 (16)(0.03)
Provision for regulatory decision in
Brazil (4) 99 0.18 - -
Transaction and severance costs related
to IPALCO transaction - - 85 0.16
------------------------------
Net income from recurring operations $421 $0.78 $679 $1.26
==============================
Diluted weighted average shares
outstanding (in millions) 540 544
========= ======
(1) South America foreign currency transaction losses, net,
consist of the following in 2002: a loss of approximately $252
million after income tax, or $0.47 per share, from Brazil; a
loss of approximately $139 million after income tax, or $0.26
per share, from Argentina; and a gain of approximately $38
million after income tax, or $0.07 per share, from Venezuela.
For 2001, South America foreign currency transaction losses,
net, consist of the following: a loss of approximately $140
million after income tax, or $0.26 per share, from Brazil, and
a gain of approximately $12 million after income tax, or $0.02
per share, from Venezuela.
(2) Mark to market gains from FAS No. 133 consist of the following
in 2002: a loss of approximately $46 million after income tax,
or $0.09 per share, from interest rate instruments, a gain of
approximately $20 million after income tax, or $0.04 per
share, from foreign exchange rate instruments, and a gain of
approximately $68 million after income tax, or $0.13 per
share, from commodity contracts. For 2001, mark to market
losses from FAS No. 133 consist of the following: a loss of
approximately $63 million after income tax, or $0.11 per
share, from interest rate instruments, a gain of approximately
$21 million after income tax, or $0.04 per share, from foreign
exchange rate instruments, and a gain of approximately $6
million after income tax, or $0.01 per share, from commodity
contracts.
(3) Loss on sale of assets and asset impairment expense consists
of the following in 2002: a loss of approximately $1.293
billion after income tax, or $2.40 per share, from goodwill
and other asset impairment charges in Brazil; a loss of
approximately $1.013 billion after income tax, or $1.88 per
share, from asset impairment charges in the United Kingdom; a
loss of approximately $171 million after income tax, or $0.32
per share, from asset impairment charges in the United States;
a loss of $54 million after income tax, or $0.10 per share,
resulting from impairment charges related to equity method
investments in Latin American telecommunications companies; a
loss of $50 million after income tax, or $0.09 per share,
related to the loss recognized on the sale of CANTV shares;
and a loss of approximately $20 million after income tax, or
$0.04 per share, from other asset impairment charges. For
2001, amount consists of a gain of $16 million after income
tax, or $0.03 per per share, related to a gain recognized on
the sale of CANTV shares.
(4) The Company has recorded the retroactive regulatory decision
by the Brazilian regulator depriving AES Sul of amounts the
Company believes it was entitled to receive as a reduction in
revenue. Pro forma revenues for the year ended December 31,
2002, are approximately $8.8 billion.
Business Segment Results AES's business segments, which include Contract Generation, Large Utilities, Competitive Supply and Growth Distribution generated combined income before income taxes (EBT EBT See: Earnings Before Taxes ) of $1.169 billion for 2002 as compared to $1.574 billion for 2001. On a geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. basis, EBT for 2002 was generated 50% from North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , 14% from Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Africa, 13%
from South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , 12% from Asia and 11% from the Caribbean. Businesses
that were sold or that were classified as discontinued operations during
2002 are excluded from this discussion. This discussion is based on
recurring operations and excludes nonrecurring Non`re`cur´ringa. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items, South America foreign currency transaction gains and losses and FAS 133 mark to market gains and losses.
Contract Generation
($ in millions) 2002 2001 Variance
------- ------- ----------
Segment revenues $ 2,478 $ 2,417 $ 61
% of total revenues 28% 32% (4)%
Operating margin $ 1,050 $ 854 $ 196
% of segment revenues 42% 35% 7%
EBT $ 635 $ 532 $ 103
% of total EBT 54% 34% 20%
Contract Generation consists of our power plants located around the world that have contractually con·trac·tu·al adj. Of, relating to, or having the nature of a contract. con·trac  tu·al·ly adv.Adv. 1. limited their exposure to commodity price risks (primarily electricity prices) for a period of at least five years and for 75% or more of their expected output capacity. For 2002, Contract Generation revenues were $2.478 billion and represented 28% of total revenues for the year, an increase of $61 million over 2001. The most significant contributions continued to be from North and South America, which in aggregate comprised 63% of Contract Generation revenue for the year as compared to 64% for 2001. Revenues were enhanced with the addition of recently completed commercial contract generation businesses totaling 1,736 mw (added subsequent to the fourth quarter of 2001), including Red Oak in New Jersey (832 mw natural gas) Meghnaghat in Bangladesh Bangladesh (bäng-lädĕsh`, băng–) [Bengali,=Bengal nation], officially People's Republic of Bangladesh, republic (2005 est. pop. 144,320,000), 55,126 sq mi (142,776 sq km), S Asia. (450 mw natural gas) and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. (454 mw coal). Revenues also improved at Beaver beaver, either of two large aquatic rodents, Castor fiber and Castor canadensis, known for their engineering feats. They were once widespread in N and central Eurasia except E Siberia, and in North America from the arctic tree line to the S United Valley in Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , Tiszai in Hungary Hungary, Hung. Magyarország, officially Republic of Hungary, republic (2005 est. pop. 10,007,000), 35,919 sq mi (93,030 sq km), central Europe. , Ebute in Nigeria Nigeria (nījĭr`ēə), officially Federal Republic of Nigeria, republic (2006 provisional pop. 140,003,542), 356,667 sq mi (923,768 sq km), W Africa. , Haripur
A river, about 805 km (500 mi) long, of southeast Brazil flowing generally northwest to the Paraná River. in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , the Gener GENER. A son-in-law. Dig. 50, 16, 156. plants in Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. , Mtkvari in the Republic of Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , Los Mina in the Dominican Republic Dominican Republic (dəmĭn`ĭkən), republic (2005 est. pop. 8,950,000), 18,700 sq mi (48,442 sq km), West Indies, on the eastern two thirds of the island of Hispaniola. The capital and largest city is Santo Domingo. and Merida in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: (as a percentage of sales) for our Contract Generation segment showed significant improvement over 2001 at 42% for 2002 as compared to 35% for 2001. Stronger margins and margin percentages arose during the quarter at many contract generation plants and in all geographic regions, with the most significant improvements at the Gener plants in Chile, Uruguaiana in Brazil, Ironwood ironwood: see hornbeam. ironwood Any of numerous trees and shrubs, found worldwide, that have exceptionally tough or hard wood useful for timber, fence posts, and tool handles. and Red Oak in the U.S., Kilroot Kilroot is a small village in County Antrim, Northern Ireland, on the eastern outskirts of Carrickfergus, east of Belfast on the north shore of Belfast Lough. It lies within the Carrickfergus Borough Council area. in Northern Ireland Northern Ireland: see Ireland, Northern. Northern Ireland Part of the United Kingdom of Great Britain and Northern Ireland occupying the northeastern portion of the island of Ireland. Area: 5,461 sq mi (14,144 sq km). Population (2001): 1,685,267. , Ebute in Nigeria and the Chigen plants in China. These improvements were partially offset by declines at Tiete in Brazil, Shady Point in Oklahoma Oklahoma (ōkləhō`mə), state in SW United States. It is bordered by Missouri and Arkansas (E); Texas, partially across the Red R. (S, W); New Mexico, across the narrow edge of the Oklahoma Panhandle (W); and Colorado and Kansas (N). , Thames Thames, river, Canada Thames (tĕmz), river, c.160 mi (260 km) long, rising NW of Woodstock, S Ont., Canada, and flowing SW past London and Chatham to Lake St. Clair. in Connecticut Connecticut, state, United States Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). and Lal Pir/Pak Gen in Pakistan Pakistan (păk`ĭstăn', päkĭstän`), officially Islamic Republic of Pakistan, republic (2005 est. pop. 162,420,000), 310,403 sq mi (803,944 sq km), S Asia. . Overall, Contract Generation operating margins increased $196 million to $1.050 billion for 2002. As a result, Contract Generation delivered $635 million of EBT (or 54% of the total) for 2002, an increase of 19% over 2001 EBT of $532 million (34% of the total). All geographic regions showed increases in EBT within the contract generation segment except for South America and the Caribbean.
Competitive Supply
($ in millions) 2002 2001 Variance
--------- --------- ----------
Segment revenues $ 1,837 $ 1,973 $ (136)
% of total revenues 21% 26% (5)%
Operating margin $ 394 $ 484 $ (90)
% of segment revenues 21% 25% (4)%
EBT $ 129 $ 182 $ (53)
% of total EBT 11% 12% (1)%
Competitive Supply consists primarily of our power plants selling electricity directly to wholesale customers in competitive markets and as a result the profitability of such plants are generally more sensitive to fluctuations in the market price of electricity, natural gas and coal, in particular. For 2002, revenues for this segment were $1.837 billion and represented 21% of total revenues for the year. The most significant contributions continued to be from the competitive markets of the UK and the U.S. that in aggregate comprised 73% of Competitive Supply revenue for the year. Competitive market prices declined year over year in Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. due to the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the Peso in January January: see month. 2002 and prices were also lower in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and the UK compared to 2001 and as a result total revenue for the competitive supply segment decreased 7% from 2001. Certain plants showed offsetting revenue improvements including Tiszapalkonya Tiszapalkonya is a village in Borsod-Abaúj-Zemplén county, Hungary. External links
• • in Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. . Year on year increases associated with new businesses in 2002 included Parana in Argentina (845 mw gas) and Delano Delano (dĕl`ənō), city (1990 pop. 22,762), Kern co., S central Calif., in the fertile San Joaquin valley; inc. 1915. The city's economy is based on agriculture (grain and fruit) and related enterprises, especially vineyards and wineries. in California (50 mw gas). The operating margin (as a percentage of sales) for our Competitive Supply segment was 21% in 2002, a decrease from 25% in 2001. Margins and margin percentages were lower in South America, North America and Europe and Africa due primarily to lower market prices. The most significant declines were at Drax Drax could refer to:
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of plants, Placerita in California and Alicura in Argentina. These declines were offset in part by improvements at Deepwater Deepwater or Deep Water may refer to:
Panama (păn`əmä'), Span. Panamá, officially Republic of Panama, republic (2005 est. pop. and Altai Altai or Altay (both: ăltī`, äl–, ăl`tī, Rus. əltī`), geologically complex mountain system of central Asia; largely in the Altai Republic, Russia, and in Kazakhstan, but extending into W in Kazakhstan Kazakhstan or Kazakstan (kä'zäkstän`), officially Republic of Kazakhstan, republic (2005 est. pop. 15,186,000), c.1,050,000 sq mi (2,719,500 sq km), central Asia. . Overall, operating margin for Competitive Supply declined 19% to $394 million for 2002. As a result of lower competitive prices, primarily in the US and the UK, Competitive Supply generated $129 million of EBT (or 11% of the total) for 2002, a decrease from 2001 EBT of $182 million.
Large Utilities
($ in millions) 2002 2001 Variance
------ ------ --------
Segment revenues $ 3,151 $ 1,642 $ 1,509
% of total revenues 36% 21% 15%
Operating margin $ 781 $ 615 $ 166
% of segment revenues 25% 37% (12)%
EBT $ 418 $ 774 $ (356)
% of total EBT 36% 49% (13)%
The Large Utilities segment is comprised of our four large integrated utilities that serve nearly 11 million customers in North America, the Caribbean and South America. Businesses include IPALCO IPALCO Indianapolis Power and Light Company in Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , EDC EDC See: Export Development Corp. in Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. along with CEMIG CEMIG Companhia Energética de Minas Gerais (Brazil) (an equity affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. ) and Eletropaulo AES Eletropaulo (also known simply as Eletropaulo) is a major Brazilian power distributor in the state of São Paulo. The company's full name is Eletropaulo Metropolitana Eletricidade de São Paulo. Eletropaulo has around 5 million customers. in Brazil. For 2002, revenues for this segment were $3.151 billion and represented 36% of total revenues for the year. The significant increase in revenues of 92% resulted from consolidating the results of Eletropaulo (serving Sao Paulo Paulo is the Portuguese form of the given name Paul:
The operating margin was $781 million for the year, an increase of 27% over 2001 due to the consolidation of Eletropaulo and an improvement in the operating margin at IPALCO. These increases were offset by a decline in the operating margin at EDC. As a percentage of sales the operating margin for large utilities was 25%, down from 37% for 2001 because of the reductions in margin at EDC resulting in part from the devaluation of the Bolivar as well as lower than average segment margins at Eletropaulo. Large Utilities generated $418 million of EBT (or 36% of the total) for 2002, down from $774 million (or 49%) for 2001. The reduction in 2002 results primarily from reduced contributions (after associated interest costs) from Eletropaulo due to the slow recovery of electricity demand to pre-rationing levels in Brazil and from EDC due to the devaluation of the Bolivar and the deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in economic conditions in Venezuela.
Growth Distribution
($ in millions) 2002 2001 Variance
------- -------- ----------
Segment revenues $ 1,326 $ 1,613 $ (287)
% of total revenues 15% 21% (6)%
Operating margin $ 150 $ 221 $ (71)
% of segment revenues 11% 14% (3)%
EBT $ (13) $ 86 $ (99)
% of total EBT (1)% 5% (6)%
Our Growth Distribution segment, serving over 5 million customers, consists of electricity distribution companies that are generally located in developing countries or regions where the demand for electricity is expected to grow at a rate higher than in more developed regions. For 2002, revenues were $1.326 billion, an 18% decline from 2001, and represented 15% of total revenues for the year. The Caribbean represents the most significant contributor with 42% of growth distribution revenues, while South America represents 31% and Europe and Africa contributes the remaining 27%. The decrease in revenues is due primarily to significant reductions in Argentina because of the devaluation of the Argentine peso The peso (originally established as the nuevo peso argentino or peso convertible) is the currency of Argentina. Its ISO 4217 code is ARS, and the symbol used locally for it is $ (to avoid confusion, Argentines frequently use US$, , as well as reductions at Sul in Brazil and at our distribution businesses in El Salvador El Salvador (ĕl sälväthōr`), officially Republic of El Salvador, republic (2005 est. pop. 6,705,000), 8,260 sq mi (21,393 sq km), Central America. . These reductions were offset in part by increases at Kievoblenergo and Rivnooblenergo in Ukraine Ukraine (y  `krān, ykrān`), Ukr. Ukraina, republic (2005 est. pop. as well as from Sonel in Cameroon Cameroon, countryCameroon (kăm'ər n`), Fr. Cameroun, officially Republic of Cameroon, republic (2005 est. pop. .The operating margin (as a percentage of sales) was $150 million or 11% of revenues as compared with $221 million or 14% of revenues for 2001. Margins improved at Sonel in Cameroon, Telasi in Georgia, Kievoblenergo and Rivnooblenergo in the Ukraine and Ede Este Este, Italian noble family Este (ĕs`tā), Italian noble family, rulers of Ferrara (1240–1597) and of Modena (1288–1796) and celebrated patrons of the arts during the Renaissance. in the Dominican Republic. As a result, Growth Distribution had an EBT loss of $(13) for 2002, a decline from EBT of $86 million in 2001.
THE AES CORPORATION --- Supplemental Data
-------------------2001--------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
-------------------------------------------
GEOGRAPHIC - % of Total
North America
Revenues (5) 26% 27% 32% 24% 27%
Income before Taxes (1, 5) 41% 31% 57% 34% 40%
Caribbean (2)
Revenues (5) 26% 25% 24% 21% 24%
Income before Taxes (1, 5) 17% 29% 14% 30% 22%
South America
Revenues (5) 21% 24% 21% 26% 23%
Income before Taxes (1, 5) 34% 36% 22% 24% 30%
Europe/Africa
Revenues (5) 20% 17% 21% 24% 20%
Income before Taxes (1, 5) 5% (1)% 1% 6% 3%
Asia
Revenues (5) 7% 7% 2% 5% 6%
Income before Taxes (1, 5) 3% 5% 6% 6% 5%
SEGMENTS - % of Total
Contract Generation
Revenues (5) 31% 32% 32% 31% 32%
Operating Margin (3, 5) 39% 36% 31% 49% 39%
Income before Taxes (1, 5) 34% 21% 20% 64% 34%
Competitive Supply
Revenues (5) 28% 24% 28% 24% 26%
Operating Margin (3, 5) 28% 19% 27% 16% 22%
Income before Taxes (1, 5) 17% 4% 23% 1% 12%
Large Utilities
Revenues (5) 21% 23% 23% 19% 21%
Operating Margin (3, 5) 28% 36% 32% 20% 29%
Income before Taxes (1, 5) 49% 72% 57% 12% 49%
Growth Distribution Businesses
Revenues (5) 20% 21% 17% 26% 21%
Operating Margin (3, 5) 5% 9% 10% 15% 10%
Income before Taxes (1, 5) - 3% - 23% 5%
FINANCIAL HIGHLIGHTS -
$ in millions, except Total
Assets in billions
Revenues (5) $2,035 $1,856 $1,828 $1,926 $7,645
Gross Margin Percentage (5) 30% 25% 26% 33% 28%
Income before Taxes (1, 5) $475 $417 $356 $326 $1,574
Net Income Excluding
Extraordinary and Other Items
(4) $222 $178 $149 $130 $679
Total Assets (billions) $36 $36 $36 $37 $37
Deprec./Amort. $180 $185 $197 $194 $756
-------------------2002--------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
-------------------------------------------
GEOGRAPHIC - % of Total
North America
Revenues (5) 22% 22% 27% 24% 24%
Income before Taxes (1, 5) 35% 38% 71% 75% 50%
Caribbean (2)
Revenues (5) 18% 17% 17% 19% 18%
Income before Taxes (1, 5) 12% 9% 7% 20% 11%
South America
Revenues (5) 34% 38% 32% 30% 33%
Income before Taxes (1, 5) 27% 26% 6% (31)% 13%
Europe/Africa
Revenues (5) 21% 18% 19% 22% 20%
Income before Taxes (1, 5) 16% 14% 6% 17% 14%
Asia
Revenues (5) 5% 5% 5% 5% 5%
Income before Taxes (1, 5) 10% 13% 10% 19% 12%
SEGMENTS - % of Total
Contract Generation
Revenues (5) 28% 27% 28% 30% 28%
Operating Margin (3, 5) 39% 43% 41% 57% 44%
Income before Taxes (1, 5) 46% 44% 54% 94% 54%
Competitive Supply
Revenues (5) 21% 19% 21% 23% 21%
Operating Margin (3, 5) 15% 16% 17% 19% 17%
Income before Taxes (1, 5) 9% 14% 12% 10% 11%
Large Utilities
Revenues (5) 34% 39% 37% 33% 36%
Operating Margin (3, 5) 34% 33% 34% 30% 33%
Income before Taxes (1, 5) 34% 37% 34% 36% 36%
Growth Distribution Businesses
Revenues (5) 17% 15% 14% 14% 15%
Operating Margin (3, 5) 12% 8% 8% (6)% 6%
Income before Taxes (1, 5) 11% 5% - (40)% (1)%
FINANCIAL HIGHLIGHTS -
$ in millions, except Total
Assets in billions
Revenues (5) $2,228 $2,240 $2,110 $2,214 $8,792
Gross Margin Percentage (5) 31% 27% 28% 23% 27%
Income before Taxes (1, 5) $387 $343 $256 $183 $1,169
Net Income Excluding
Extraordinary and Other Items
(4) $181 $139 $86 $15 $421
Total Assets (billions) $40 $39 $37 $34 $34
Deprec./Amort. $199 $201 $196 $201 $797
(1) Income before taxes excludes the Corporate and Business
Development segment. The following items are included in the
Corporate and Business Development segment: corporate
interest, other corporate costs, business development
expenses, Brazilian affiliates foreign currency effects,
Argentine affiliates foreign currency effects, Venezuelan
affiliates foreign currency effects, effects of FAS No. 133,
nonrecurring items, discontinued operations and cumulative
effect of accounting change.
(2) Includes Venezuela and Colombia.
(3) Operating Margin is revenues reduced by cost of sales,
depreciation and amortization and other operating expenses.
(4) Net income excludes Brazilian affiliates foreign currency
effects, Argentine affiliates foreign currency effects,
Venezuelan affiliates foreign currency effects, effects of FAS
No. 133, nonrecurring items, discontinued operations and
cumulative effect of accounting change.
(5) The effect of the provision related to the Brazilian
regulatory decision recorded by AES Sul and the effect of
impairment charges recorded by Drax and Eletropaulo are
excluded from these calculations.
THE AES CORPORATION
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2002 AND 2001
($ in millions) December December
31, 31,
2002 2001
------------------
Assets:
Current assets:
Cash and cash equivalents,
including restricted cash
of $181 and $357, respectively $961 $1,159
Short term investments 211 215
Accounts receivable, net of reserves of $424 and
$239, respectively 1,239 1,127
Inventory 384 468
Receivable from affiliates 25 10
Deferred income taxes - current 130 244
Prepaid expenses and other assets 926 597
Current assets of held for sale and discontinued
businesses 473 872
------------------
Total current assets 4,349 4,692
Property, Plant and Equipment:
Land 703 542
Electric generation and distribution assets 19,125 16,326
Accumulated depreciation (4,204) (3,015)
Construction in progress 3,222 4,259
------------------
Property, plant and equipment, net 18,846 18,112
Other assets:
Deferred financing costs, net 433 368
Project development costs 15 66
Investment in and advances to affiliates 194 3,031
Debt service reserves and other deposits 515 433
Goodwill, net 1,388 2,367
Deferred income taxes - noncurrent 968 -
Long-term assets of held for
sale and discontinued
businesses 5,322 6,936
Other assets 1,746 807
-----------------
Total other assets 10,581 14,008
-----------------
Total Assets $33,776 $36,812
=================
Liabilities & Stockholders' Equity
Current liabilities:
Accounts payable $1,139 $727
Accrued interest 369 266
Accrued and other liabilities 1,165 674
Current liabilities of held
for sale and discontinued
businesses 497 812
Recourse debt-current portion 26 488
Non-recourse debt-current portion 3,315 1,961
-----------------
Total current liabilities 6,511 4,928
Long-term liabilities
Recourse debt 5,778 4,913
Non-recourse debt 10,928 11,515
Deferred income taxes 981 627
Long-term liabilities of held for sale and
discontinued businesses 4,785 4,827
Other long-term liabilities 3,338 1,955
------------------
Total long-term liabilities 25,810 23,837
Minority interest, including discontinued operations
of $41 and $124, respectively 818 1,530
Company obligated convertible mandatorily redeemable
preferred securities of subsidiary trusts holding
solely junior subordinated debentures of AES 978 978
Stockholders' equity:
Common stock 6 5
Additional paid-in capital 5,311 5,225
Retained earnings (699) 2,809
Accumulated other comprehensive loss (4,959) (2,500)
-----------------
Total stockholders' equity (341) 5,539
-----------------
Total Liabilities and Stockholders' Equity $33,776 $36,812
=================
THE AES CORPORATION
CAPITAL RESOURCES AND OTHER BALANCE SHEET DATA
($ in billions)
December December
31, 31,
Capitalization: 2002 2001
---------------------
Recourse debt $5.80 $5.40
Non-recourse debt 14.24 13.48
---------------------
Total debt 20.04 18.88
Preferred Securities 0.98 0.98
Minority Interest 0.82 1.53
Stockholders' equity (0.34) 5.54
---------------------
Total capitalization $21.50 $26.93
=====================
Selected Balance Sheet Data
by Geographic Region:
Property, Non-
Plant Total recourse
December 31, 2002 & Equipment Assets Debt
-------------------------------
North America 33% 22% 30%
Caribbean 27% 20% 20%
South America 23% 24% 35%
Europe/Africa 8% 18% 6%
Asia 9% 8% 9%
Discontinued operations - 7% -
Corporate - 1% -
December 31, 2001
North America 34% 20% 33%
Caribbean 27% 18% 23%
South America 25% 27% 33%
Europe/Africa 8% 18% 5%
Asia 6% 6% 6%
Discontinued operations - 10% -
Corporate - 1% -
Selected Balance Sheet Data by Line of
Business:
Property, Non-
Plant recourse
December 31, 2002 & Total Debt
Equipment Assets
-------------------------------
Contract Generation 45% 37% 48%
Competitive Supply 17% 22% 11%
Large Utilities 30% 24% 32%
Growth Distribution Businesses 8% 9% 9%
Discontinued operations - 7% -
Corporate - 1% -
December 31, 2001
Contract Generation 44% 33% 46%
Competitive Supply 21% 24% 13%
Large Utilities 23% 20% 31%
Growth Distribution Businesses 12% 12% 10%
Discontinued operations - 10% -
Corporate - 1% -
The AES Corporation
Historical Parent Operating Cash Flow and Interest Coverage
Information
----------------------------------------------------------------------
Parent Operating Cash Flow reflects cash payments to the holding
company (the "Parent Company") from its subsidiary operating
businesses (consisting of dividends, consulting and management fees,
tax sharing payments and interest income), less Parent operating
expenses. Parent Operating Cash Flow is measured after payment of
principal and interest on non-recourse debt as well as maintenance
capital expenditures at those businesses. As a result, it represents
the cash flow that is available to service the Parent Company's
liquidity needs, including debt service.
For more detailed information regarding Parent Operating Cash Flow,
see the notes below.
Parent Only Data 12 Months Ended
(Last Four Quarters):
(actual $ in millions) 1998 1999 2000 2001 2002
---------------------------------------
Parent Operating Cash Flow (1) $360 $403 $871 $1,163 $1,095
Parent Interest Charges (2) $118 $164 $216 $391 $475
Interest Coverage Ratio (3) 3.05x 2.46x 4.03x 2.97x 2.31x
Parent Operating Cash Flow (1) 360 403 871 1,163 1,095
less: Development Costs and
Corporate Taxes (74) (48) (103) (112) (34)
less: Total Interest Costs
(including SELLs & Trust
Preferred) (150) (198) (415) (563) (578)
---------------------------------------
Parent Free Cash Flow (4) $136 $157 $353 $488 $483
Parent Operating Cash Flow by
Region:
-------------------------------
North America 48% 60% 39% 54% 57%
Caribbean 6% 7% 29% 17% 7%
Asia 1% 6% 4% 8% 17%
South America 25% 8% 17% 12% 11%
Europe 20% 19% 11% 9% 8%
Parent Operating Cash Flow by
Line of Business
-------------------------------
Contract Generation 67% 67% 44% 39% 55%
Large Utilities 14% 3% 39% 31% 31%
Competitive Supply 13% 24% 12% 28% 13%
Growth Distribution Businesses 6% 6% 5% 2% 1%
----------------------------------------------------------------------
Parent Only Data Quarterly
(Quarterly):
(actual $ in millions) Q4 Q1 Q2 Q3 Q4
2001 2002 2002 2002 2002
Parent Operating Cash Flow (1) $390 $331 $263 $252 $249
Parent Interest Charges (2) $120 $116 $105 $130 $124
Interest Coverage Ratio (3) 3.25x 2.85x 2.50x 1.94x 2.01x
Parent Operating Cash Flow (1) 390 331 263 252 249
less: Development Costs and
Corporate Taxes (24) (14) (11) (7) (2)
less: Total Interest Costs
(including SELLs & Trust
Preferred) (115) (136) (140) (154) (148)
---------------------------------------
Parent Free Cash Flow (4) $251 $181 $112 $91 $99
(Last Four Quarters):
(actual $ in millions) December March June September December
31, 31, 30, 30, 31,
2001 2002 2002 2002 2002
Parent Operating Cash Flow (1) $1,163 $1,314 $1,319 $1,236 $1,095
Parent Interest Charges (2) $391 $428 $453 $471 $475
Interest Coverage Ratio (3) 2.97x 3.07x 2.91x 2.62x 2.31x
Note 1:
(1) Our Parent Operating Cash Flow, formerly titled "Parent EBITDA",
definition may differ from that, or similarly titled measures, used
by other companies. Parent Operating Cash Flow is not a substitute
for cash flows from operating activities as defined by generally
accepted accounting principles, or as an indicator of operating
performance or as a measure of liquidity. Parent Operating Cash Flow
includes the following amounts (determined without duplication)
received in cash by the Parent Company from operating subsidiaries
and affiliates less Parent operating expenses:
(A) Dividends.
(B) Consulting and management fees.
(C) Tax sharing payments.
(D) Interest and other distributions paid during the period
with respect to cash and other temporary cash investments.
Parent Operating Cash Flow does not include the following cash
payments made to the Parent Company by its subsidiaries and
affiliates:
(A) Returns of invested capital.
(B) Repayments of debt principal.
(C) Payments released from debt service reserve accounts upon
the issuance of letters of credit for the benefit of subsidiaries
or affiliates.
(2) Parent Interest Charges include interest payments on recourse
debt, both expensed and capitalized. It excludes distributions paid
for trust preferred securities. This definition may differ from that,
or similarly titled measures, used by other companies.
(3) Parent Interest Coverage Ratio is defined as the ratio of Parent
Operating Cash Flow for such period to Parent Interest Charges for
such period.
(4) Parent Free Cash Flow is defined as Parent Operating Cash Flow
less development costs, taxes, and Total Interest costs (including
interest on SELLs and trust preferred securities dividends).
The AES Corporation
Historical Parent Operating Cash Flow and Parent Sources and Uses
----------------------------------------------------------------------
Parent Only Data
($ in millions) Q1 Q2 Q3 Q4 YE
2002 2002 2002 2002 2002
-----------------------------
Parent Operating Cash Flow (1) $331 $263 $252 $249 $1,095
Parent Interest Charges (2) $116 $105 $130 $124 $475
Interest Coverage Ratio (3) 2.85x 2.50x 1.94x 2.01x 2.31x
Parent Operating Cash
Flow by Region:
----------------------
North America 58% 46% 66% 61% 57%
Caribbean 4% 20% 2% 2% 7%
Asia 13% 13% 22% 20% 17%
Europe 10% 15% 8% 14% 11%
South America 15% 6% 2% 3% 8%
Parent Operating Cash Flow by
Line of Business
------------------------------
Contract Generation 54% 61% 54% 60% 55%
Large Utilities 31% 34% 30% 25% 31%
Competitive Supply 14% 4% 15% 12% 13%
Growth Distribution 1% 1% 1% 3% 1%
Parent Sources & Uses
Q1 Q2 Q3 Q4 YE
($ in millions) 2002 2002 2002 2002 2002
-----------------------------
Sources
Distributions from Subsidiaries $340 $269 $268 $271 $1,148
less: Corporate Overhead (9) (6) (16) (22) (53)
-----------------------------
Parent Operating Cash Flow (1) 331 263 252 249 1,095
less: Development Costs and Corporate
Taxes (14) (11) (7) (2) (34)
less: Total Interest Costs (including
SELLs & Trust Preferred) (136) (140) (154) (148) (578)
-----------------------------
Parent Free Cash Flow (4) 181 112 91 99 483
Agreed Asset Sales - - 251 9 260
Additional Asset Sales - - - - -
Project Financing Proceeds - 239 - - 239
Bank Loan Renewals (net of transaction
costs) (5) - - - 1,581 1,581
Bond Exchange (5) - - - 258 258
Beginning Liquidity 565 285 360 395 565
-----------------------------
Total Sources $746 $636 $701$2,342 $3,386
=============================
Uses
Bank Loan Repayments $63 $63 $225 $- $351
Bank Loan Renewals - - - 1,620 1,620
Bond Exchange (5) - - - 258 258
Bond Repayments (5) - - - 216 216
Committed Investments 398 214 81 32 725
Ending Liquidity 285 359 395 216 216
-----------------------------
Total Uses $746 $636 $701$2,342 $3,386
=============================
Note 2:
(1) Please see Note 1 for definition.
(2) Please see Note 1 for definition.
(3) Please see Note 1 for definition.
(4) Please see Note 1 for definition.
(5) The Sources & Uses includes the following refinancing transaction:
(A) "Bank Loan Renewals (net of non-cash transaction costs)"
includes the following: $850 million variable rate revolving bank
loan due 2003, $425 million term loan due 2003, $262.5 million EDC
SELLs due 2003 , (pounds)52.2 million letter of credit due 2004.
(B) "Bond Exchange" includes $84 million of $300 million 8.75%
Senior notes due December 2002, and $174 million of $200 million
Remarketable or Redeemable Securities (ROARS) remarketable in June
2003.
(C) "Bond Repayment" represents $216 million of 8.75% Senior notes
due December 2002 which were repaid in December 2002.
but does not include $117 million of debt for equity swaps, which
resulted in an after tax gain of $26.8 million.
Certain statements regarding AES's ("the Company's") business
operations may constitute "forward looking statements" as defined by
the Securities and Exchange Commission.
Such statements are not historical facts, but are predictions about
the future which inherently involve risks and uncertainties, which
could cause our actual results to differ from those contained in the
forward looking statement. We urge investors to read our descriptions
and discussions of these risks that are contained under the section
"Risk Factors" in the Company's Annual Report/Form 10K for the year
ended December 31, 2001.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion