AES Reports Continued Growth in First Quarter; Revenue increases 17%; Diluted EPS from Continuing Operations up 67%.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. -- The 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) today reported strong first quarter results with income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $133 million and 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 of $0.20 in 2005 compared to $74 million and diluted earnings per share of $0.12 in the first quarter of 2004. Net income of $133 million and diluted earnings per share of $0.20 for 2005 represents an increase of $85 million from $48 million and diluted earnings per share of $0.08 in the prior year. Adjusted earnings per share(a) were $0.17 per share for the first quarter of 2005 and 2004. The table below summarizes key financial measures for the first quarter of 2005 and 2004.
First First
($ millions except per share) Quarter Quarter % Change
2005 2004
Revenue $2,645 $2,257 17%
Gross Margin $782 $680 15%
Operating Income $733 $632 16%
Income from Continuing Operations $133 $74 80%
Net Income $133 $48 177%
Diluted Earnings Per Share from
Continuing Operations $0.20 $0.12 67%
Adjusted Earnings Per Share(a) $0.17 $0.17 0%
Net Cash Provided by Operating Activities $520 $402 29%
(a) Adjusted earnings per share, (a non-GAAP financial measure),
excludes from diluted earnings per share from continuing
operations the effects of gains or losses from mark-to-market
accounting adjustments related to derivatives, certain foreign
currency transaction gains and losses, significant impacts from
net asset disposals or impairments and early retirements of
recourse debt. See the attached Reconciliation of Adjusted
Earnings Per Share.
"We've we've Contraction of we have. we've have started the year on a strong operating note. Our businesses continued to deliver solid performance improvement during the first quarter with all four segments reporting significant increases in revenue and an AES-wide increase in gross margin of $102 million, a 15% increase over 2004", said AES President and Chief Executive Officer 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. "Additionally, in our contract generation segment, we completed the acquisition of SeaWest. We also finalized See finalization. the Power Purchase Agreement and obtained a support letter from the Bulgarian government for AES to develop, construct, and operate the 600 megawatt meg·a·watt n. Abbr. MW One million watts. meg  a·watt lignite lignite (lĭg`nīt) or brown coal, carbonaceous fuel intermediate between coal and peat, brown or yellowish in color and woody in texture. fired Maritza Maritza may refer to:
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: Financial Highlights Consolidated key financial highlights for the first quarter of 2005 as compared to the first quarter of 2004 are summarized below: --Revenue increased 17% in the first quarter of 2005 with increases in all segments, with particularly strong revenues reported by our large utility business 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. (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. ). Excluding the estimated impact of foreign currency translation, revenues would have increased by 14%. --Gross margin increased 15% driven largely by higher revenues. Gross margin as a percent of sales declined slightly from 30.1% in 2004 to 29.6% in 2005 due to higher fuel costs at our 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. and 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. businesses, the delay in the tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic increase for our Venezuelan utility partially offset by higher margin earnings from Eletropaulo. --Interest expense declined $26 million to $467 million from $493 million in 2004 reflecting lower hedge related costs and the benefits of debt retirement at the parent company, partially offset by additional interest on debt related to new projects. --Income tax expense increased as a result of higher earnings and an increase in our effective tax rate from 32% in 2004 to an estimated 36% in 2005. The estimated rate increase is due to increases in the local taxes imposed on our foreign businesses. --Income from continuing operations increased 80% to $133 million from $74 million in 2004 due to better operating performance and lower net interest expense, partially offset by increases in minority interest expense related to higher earnings at Eletropaulo. --Diluted earnings per share from continuing operations increased from $0.12 in 2004 to $0.20 in 2005. --Adjusted earnings per share remained consistent at $0.17 in 2005. Despite the increase in our effective tax rate and higher minority interest expense, improved performance was driven by a 15% increase in gross margin amounts for the first quarter of 2005. --Net cash from operating activities of $520 million increased $118 million from $402 million in 2004. Higher year over year earnings, proceeds from the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of a foreign currency hedge Currency hedge Applies mainly to international equities. Hedging technique to guard against foreign exchange fluctuations (i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks). and stable working capital levels contributed to the increase. --Maintenance capital expenditures were $124 million compared to $122 million in the first quarter of 2004. Free cash flow, (a non-GAAP financial measure) defined as net cash from operating activities less maintenance capital expenditures was $396 million in 2005 versus $280 million during the same period in 2004. Segment Financial Highlights Segment key financial highlights for the first quarter of 2005 compared to the prior year period are summarized below: --The Large Utilities segment, with 38% of consolidated revenue, increased its revenue by 23% to $1,007 million from $818 million in 2004. Excluding the estimated impacts of foreign currency translation, revenues would have increased 18% for the first quarter of 2005 versus 2004. Gross margin of $252 million increased by 30% from $194 million for the same period in 2004. Revenue increases were due to improvements in tariffs This is a list of tariffs and trade legislation:
[Handout by Mr. David Gillibrand]. of prior year tariff increases in Brazil related to lost margin during the 2002 rationing rationing, allotment of scarce supplies, usually by governmental decree, to provide equitable distribution. It may be employed also to conserve economic resources and to reinforce price and production controls. period, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. foreign currency translation impacts and demand. Gross margin as a percent of sales increased to 25.0% from 23.7% primarily as a result of revenue increases in the quarter, partially offset by higher purchased electricity and other fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). and the delay in the Venezuelan tariff increase. --The Growth Distribution segment, with 14% of consolidated revenue, increased its revenue by 14% to $374 million from $328 million in 2004. Excluding the estimated impacts of foreign currency translation, revenues would have increased 9% for the first quarter of 2005 versus 2004. Gross margin of $73 million increased 16% from $63 million for the same period in 2004. Revenue increases were driven by improvements in tariffs, foreign currency translation impacts and demand. Gross margin as a percent of sales increased slightly to 19.5% from 19.2% primarily as a result of revenue growth in the quarter that was substantially offset by increased variable costs, including purchased electricity costs. --The Contract Generation segment, with 37% of consolidated revenue, experienced an increase in its revenue of 13% to $985 million from $868 million in 2004 due to higher energy pricing, increased volumes and favorable foreign currency translation impacts. Excluding the estimated impacts of foreign currency translation, revenues would have increased 11% for the first quarter of 2005 versus 2004. Gross margin of $393 million increased 9% from $359 million. Increases were due to energy pricing gains and increased volumes. Gross margin as a percent of sales declined to 39.9% in the first quarter of 2005 from 41.4% in 2004 primarily due to higher priced fuel sources in our Chilean business caused by Argentina gas restrictions, increased purchased electricity costs in our Chilean business, as well as decreased contractual capacity payments at one plant in 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. . --The Competitive Supply segment, with 11% of consolidated revenue, increased its revenue by 15% to $279 million from $243 million in 2004. Revenues increased due to higher production volumes, higher realized prices and favorable foreign currency translation impacts. Excluding the estimated impacts of foreign currency translation, revenues would have increased 13% for the first quarter of 2005 versus the same quarter in 2004. Gross margin remained at $64 million, similar to the prior year. Gross margin as a percent of sales declined to 22.9% in the first quarter of 2005 from 26.3% in 2004 primarily due to higher fuel costs in our Argentine Argentine having some relationship with the country Argentina. Argentine tick margaropuswinthemi. Argentine tortoise geochelonechilensis. plants and forced outages in our New York New York, state, United States 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. Outlook AES reaffirmed its 2005 financial guidance which includes diluted earnings per share from continuing operations of $0.76 with adjusted earnings per share of $0.83. The difference is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to expected effects from foreign currency transactions, recourse The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment. debt retirement, and derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. accounting. The operating scenario A scenario (from Italian, that which is pinned to the scenery) is a synthetic description of an event or series of actions and events. In the Commedia dell'arte underlying this guidance assumes a number of market factors, including foreign exchange rates, commodity prices, interest rates, tariff increases, new investments, as well as other significant factors which could make actual results vary from the guidance. Additional guidance elements are presented in the company's First Quarter 2005 Financial Review presentation. About AES AES is a leading global power company, with 2004 sales of $9.5 billion. AES operates in 27 countries, generating 44,000 megawatts of electricity through 120 power facilities and delivers electricity through 15 distribution companies. Our 30,000 people are committed to operational excellence and meeting the world's growing power Growing Power is an urban agriculture organization headquartered in Milwaukee, Wisconsin. It runs the last functional farm within the Milwaukee city limits and also organizes activities in Chicago. needs. To learn more about AES, please visit www.aes.com or contact media relations at media@aes.com. Attachments: Consolidated Statements of Operations, Segment Information, Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. , Condensed Consolidated Statements of Cash Flows, Reconciliation of Adjusted Earnings per Share, and Parent Financial Information. Conference Call Information: AES will host a conference call today to discuss these results. The call will be held at 10:00 am Eastern Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). The call may be accessed via a live webcast which will be available at www.aes.com or by telephone in listen-only mode at 1-800-938-0653. International callers should dial 1-973-935-2408. Please call at least ten minutes before the scheduled start time. You will be requested to provide your name, e-mail address See Internet address. e-mail address - electronic mail address , and affiliation affiliation (  fil´ēā´sh . The AES
First Quarter 2005 Financial Review presentation will also be available
at www.aes.com. This presentation includes a summary of AES
forward-looking for·ward-look·ingadj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. financial guidance. A replay of the conference call will be available at www.aes.com and by telephone at 1-877-519-4471, using 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 5836200 followed by the pound key (#). International callers should dial 1-973-341-3080 and use the same reservation number. The telephonic replay will be available from 12:00 pm EDT on Thursday Thursday: see week. , May 5 until Thursday, May 19, 2005. A replay at www.aes.com will be available shortly after the completion of the call. 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. Disclosure: This news release contains 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. within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES's current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to continued normal levels of operating performance and electricity demand at our distribution companies and operational performance at our contract generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. growth in investments at normalized investment levels and rates of return consistent with prior experience. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, including, but not limited to the risks discussed under the caption "Cautionary Statements and Risk Factors" in AES's 2004 annual report on 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. . Readers are encouraged to read AES's filings to learn more about the risk factors associated with AES's business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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.
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