AES Reports First Quarter 2003 Income from Continuing Operations of $0.13 Per Share.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)--May 1, 2003 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): Company Reports Revenues of $2.2 Billion and 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 Operations of $446 Million The AES Corporation (NYSE: AES) announced today that 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 for the quarter ended March 31, 2003 was $73 million, or $0.13 per 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. share. Net income for the quarter was $93 million, or $0.17 per diluted share. Net income includes $0.04 per diluted share from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Revenues for the first quarter were $2.2 billion. AES also announced that consolidated net cash provided by operating activities for the first quarter of 2003 was $446 million. Additionally, as previously announced, its subsidiary distributions to parent and qualified holding companies for the quarter totaled $180 million. For the quarter ended March 31, 2002, income from continuing operations was $118 million, or $0.22 per diluted share, and net loss for the same period was $(313) million, or $(0.58) per diluted share. The net loss for the first quarter of 2002 included a charge for the cumulative effect of an accounting change. 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, "The 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. and earnings results for the first quarter are in line with expectations from our turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. plan. This is a solid start to 2003 as we work to restore equity value 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, "We have made significant progress in strengthening our balance sheet and reducing debt at the parent level with over $600 million of additional proceeds from asset sales during the first quarter. For the full year of 2003 we continue to expect 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 from continuing operations of $0.50 per share and consolidated net cash provided by operating activities of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.5 billion." Conference Call Information This information will be discussed on a conference call to be held on Thursday Thursday: see week. May 1, 2003, at 8:00 am (Eastern Time). You may access the call via a live web cast 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 web cast 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 , May 9, 2003. A telephonic replay of the call will also be available from approximately 11:00 am on Thursday, May 1, until 6:00 pm on Friday, May 9 (Eastern Time). Please dial (877) 519 4471. 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 3837264 followed by the pound key (#). International callers should dial (973) 341 3080. "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 160 facilities totaling over 55 gigawatts of capacity, in 30 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 MARCH 31, 2003 AND 2002
----------------------------------------------------------------------
Quarter Quarter
Ended Ended
($ in millions, except per share amounts) 3/31/2003 3/31/2002
----------------------------------------------------------------------
REVENUES:
Sales and services $2,223 $2,201
OPERATING COSTS AND EXPENSES:
Cost of sales and services 1,621 1,526
Selling, general and administrative expenses 29 28
---------- ----------
Total operating costs and expenses 1,650 1,554
---------- ----------
OPERATING INCOME 573 647
OTHER INCOME AND (EXPENSE):
Interest expense, net (498) (390)
Other income (expense), net 45 (59)
Equity in earnings of affiliates (before income
tax) 24 29
Loss on sale of assets - (57)
---------- ----------
INCOME BEFORE INCOME TAXES AND
MINORITY INTEREST 144 170
Income tax expense 40 62
Minority interest expense (income) 31 (10)
---------- ----------
INCOME FROM CONTINUING OPERATIONS 73 118
Income from operations of discontinued
components
(net of income taxes of $6 and $31,
respectively) 22 42
---------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE 95 160
Cumulative effect of accounting change
(net of income taxes of $1 and $155,
respectively) (2) (473)
---------- ----------
NET INCOME (LOSS) $93 $(313)
========== ==========
DILUTED EARNINGS PER SHARE:
Income from continuing operations $0.13 $0.22
Discontinued operations 0.04 0.08
Cumulative effect of accounting change - (0.88)
---------- ----------
Total $0.17 $(0.58)
========== ==========
Diluted weighted average
shares outstanding (in millions) 561 541
========== ==========
Business Segment Results AES's business segments, which include Contract Generation, Large Utilities, Competitive Supply and Growth Distribution, generated combined income before income taxes of $253 million for the first quarter of 2003, as compared with $310 million for the first quarter of 2002. Total income before income taxes, including the Corporate segment, was $113 million for the first quarter of 2003, as compared with $180 million for the same period in 2002. On a geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. basis, income before income taxes from our business segments was generated 47% from North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , 21% from South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , 16% from Asia, 9% from Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and
Africa, and 7% from the Caribbean.Contract Generation
($ in millions) 2003 2002 Variance
------------------
Segment revenues $728 $653 $75
% of total revenues 33% 30% 3%
Gross margin $291 $270 $21
% of segment revenues 40% 41% (1)%
Income before income taxes $154 $182 $(28)
% of income before income taxes
from segments 61% 59% 2%
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 the first quarter of 2003, Contract Generation revenues were $728 million and represented 33% of total revenues, an increase of $75 million over the first quarter of 2002. The most significant contributions continued to be from North and South America, which in aggregate comprised 57% of Contract Generation revenue for the quarter as compared to 68% for the same period in 2002. Revenues were enhanced with the addition of recently completed commercial contract generation businesses totaling 1,451 mw (added subsequent to the first quarter of 2002), including Red Oak in New Jersey (832 mw gas), 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) and Kelanitissa in Sri Lanka Sri Lanka (srē läng`kə) [Sinhalese,=resplendent land], formerly Ceylon, ancient Taprobane, officially Democratic Socialist Republic of Sri Lanka, island republic (2005 est. pop. (165 mw gas). Revenues also improved at Warrior Warrior, river, Ala.: see Black Warrior. Run in Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , 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. , 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. , 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. , 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. and 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. . These improvements were offset by declines at 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). due to a step-down in the contracted capacity payment, 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. 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 , Uruguaiana Uruguaiana is an municipality in the Brazilian state of Rio Grande do Sul. It is located on the left-hand (eastern) shore of the Uruguay River that forms the border with Argentina. and Tiete Tie·tê 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. , and the Chigen plants in China. The gross margin for the Contract Generation segment was $291 million for the quarter, an increase of 8% from the first quarter of 2002. Gross margin increases arose at Warrior Run in Maryland, Uruguaiana and Tiete in Brazil and Ebute in Nigeria. These increases were offset by declines in gross margin at Ironwood in Pennsylvania, Shady Point in Oklahoma, the Southland south·land or South·land n. A region in the south of a country or an area. south land·er n.Noun 1. plants 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 Chigen plants in China. As a percentage of revenues, the gross margin for the Contract Generation segment was 40% in the first quarter of 2003, a slight decline from 41% in the first quarter of 2002. Contract Generation generated $154 million of income before income taxes (or 61% of the total) for the first quarter of 2003, a decrease from $182 million in the first quarter of 2002. The Caribbean showed an increase due to the start of commercial operations at Puerto Rico. Income before taxes was relatively consistent between periods for Asia and for Europe and Africa. North America showed a decrease in income before income taxes due to the step-down in the contracted Capacity payment at Shady Point and FAS 133 mark to market losses at Warrior Run and the Southland plants. South America showed a decrease in income before income taxes due to a decline at Gener GENER. A son-in-law. Dig. 50, 16, 156. in Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. . Competitive Supply
($ in millions) 2003 2002 Variance
-------------------
Segment revenues $460 $416 $44
% of total revenues 21% 19% 2%
Gross margin $114 $91 $23
% of segment revenues 25% 22% 3%
Income before income taxes $40 $(31) $71
% of income before income taxes
from segments 16% (10)% 26%
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 the first quarter of 2003, Competitive Supply revenues were $460 million and represented 21% of total revenues for the quarter. The most significant contributions continued to be from the competitive markets of the UK and the U.S. that in aggregate comprised 76% of Competitive Supply revenue for the quarter. Competitive market prices increased quarter over quarter in 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 , which resulted in increased revenue in our New York plants. Despite lower prices due to its merchant position, Drax Drax could refer to:
CTSN Seaman, Cryptologic Technician Striker (Naval Rating) , Rio See RapidIO and MP3. Juramento and Alicura 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. , and Ottana Ottana is a comune (municipality) in the Province of Nuoro in the Italian region Sardinia, located about 110 km north of Cagliari and about 25 km southwest of Nuoro. As of 31 December 2004, it had a population of 2,490 and an area of 45.2 km². in Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. . An increase also resulted from the start of commercial operations at Granite granite, coarse-grained igneous rock of even texture and light color, composed chiefly of quartz and feldspars. It usually contains small quantities of mica or hornblende, and minor accessory minerals may be present. Ridge ridge (rij) a linear projection or projecting structure; a crest. dental ridge any linear elevation on the crown of a tooth. dermal ridges cristae cutis. in New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). (720 mw gas). The gross margin as a percentage of revenues for our Competitive Supply segment was 25% in the first quarter of 2003, an increase from 22% in the first quarter of 2002. Overall, the gross margin for Competitive Supply increased 25% to $114 million. Margins and margin percentages increased in North and South America, including the New York plants, Deepwater Deepwater or Deep Water may refer to:
TXU Transmitter Unit Hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. Agreement and increased cost of sales due to higher volume. Competitive Supply generated $40 million of income before income taxes (or 16% of the total) for the first quarter of 2003, which represents a $71 million improvement over the same period in 2002. A portion of this increase is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased margins, while a portion of the increase relates to foreign exchange transaction gains recorded at Parana in Argentina in the first quarter of 2003 due to appreciation 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$, as compared to foreign exchange losses recorded at Parana in the first quarter of 2002 due to the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. which occurred in that period. Large Utilities
($ in millions) 2003 2002 Variance
------------------
Segment revenues $699 $766 $(67)
% of total revenues 31% 35% (4)%
Gross margin $164 $232 $(68)
% of segment revenues 23% 30% (7)%
Income before income taxes $69 $134 $(65)
% of income before income taxes
from segments 27% 43% (16)%
The Large Utilities segment is comprised of our large integrated utilities that serve nearly 7 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. 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 the first quarter of 2003, revenues for Large Utilities were $699 million and represented 31% of total revenues for the quarter. Revenues for Large Utilities decreased $67 million, or 9%, from the first quarter of 2002. The decrease in revenues is primarily due to the quarter over quarter devaluation of the Brazilian Real The real (IPA: [xe'aw] or [ʁe'aɫ], symbol: R$, ISO 4217 code: BRL, plural: reais) is the currency of Brazil. It is also the name of the earliest Brazilian currency (see from the Colonial period to 1942. and the Venezuelan Bolivar, which negatively affect the U.S. Dollar translated revenues of Eletropaulo and EDC, respectively. The decreases in revenues from Eletropaulo and EDC were offset by a slight increase in revenues at IPALCO. The gross margin as a percentage of revenues for our Large Utility segment was 23% for the first quarter of 2003, a decrease from 30% in the first quarter of 2002. This decrease relates to an additional month of lower than average segment margins at Eletropaulo in the first quarter of 2003 as compared with the first quarter of 2002, as we began consolidating the results of Eletropaulo in February February: see month. 2002. The quarter over quarter devaluation of the Brazilian Real and the Venezuelan Bolivar also negatively affected the U.S. Dollar translated gross margins of Eletropaulo and EDC, respectively. These decreases were offset by a slight increase in the gross margin at IPALCO. Overall, gross margin for Large Utilities declined to $164 million for the first quarter of 2003 from $232 million in the first quarter of 2002. Large Utilities generated $69 million of income before income taxes (or 27% of the total) for the first quarter of 2003, down from $134 million for the same period in 2002. The decrease relates to a lower gross margin and substantially reduced foreign currency transaction gains at EDC, both due to the devaluation in the Venezuelan Bolivar quarter over quarter, and a lower gross margin and increased interest expense at Eletropaulo. Growth Distribution
($ in millions) 2003 2002 Variance
------------------
Segment revenues $336 $366 $(30)
% of total revenues 15% 16% (1)%
Gross margin $33 $82 $(49)
% of segment revenues 10% 22% (12)%
Income before income taxes $(10) $25 $(35)
% of income before income taxes
from segments (4)% 8% (12)%
Our Growth Distribution segment, serving nearly 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 the first quarter of 2003, revenues were $336 million, an 8% decline from the first quarter of 2002, and represented 15% of total revenues for the quarter. The Caribbean represents the most significant contributor with 41% of Growth Distribution revenues, while Europe and Africa represents 32% and South America contributes the remaining 27%. The decrease in revenues is due primarily to reductions in Argentina and at Sul in Brazil because of the quarter over quarter devaluation of the Argentine Peso and the Brazilian Real, respectively. These reductions were offset in part by increases at Sonel in Cameroon Cameroon, country Cameroon (kăm'ər  n`), Fr. Cameroun, officially Republic of Cameroon, republic (2005 est. pop. and at CLESA,
CAESS and EEO EEO Equal Employment OpportunityEEO Equal Employment Office EEO Eastern European Outreach (Murrieta, CA) EEO Extremely Elliptical Orbit EEO Exotic Electro-Optics, Inc. 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. . The gross margin as a percentage of revenues for our Growth Distribution segment was 10% in the first quarter of 2003, a decrease from 22% in the first quarter of 2002. Gross margin and gross margin percentages declined at 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, Sul in Brazil and Telasi in the Republic of Georgia. These declines were partially offset by an increased gross margin at Sonel in Cameroon. Overall, the gross margin for the Growth Distribution segment decreased to $33 million for the first quarter of 2003. Growth Distribution businesses generated a loss before income taxes of $10 million for the first quarter of 2003, down from income of $25 million for the first quarter of 2002. Income before income taxes declined at Ede Este in the Dominican Republic due to foreign exchange transaction losses caused by the devaluation of the Dominican Peso Noun 1. Dominican peso - the basic unit of money in the Dominican Republic; equal to 100 centavos peso centavo - a fractional monetary unit of several countries: El Salvador and Sao Tome and Principe and Brazil and Argentina and Bolivia and Colombia and Cuba during the first quarter of 2003. Income before income taxes also declined at Sul in Brazil and Telasi in the Republic of Georgia. These decreases were partially offset by increases in income before taxes at Eden, Edes and Edelap, our distribution businesses in Argentina.
THE AES CORPORATION --- Supplemental Data
--------- --------------
($ in millions, except Total Assets in billions)
---------------------------2002------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
-------------------------------------------------------
GEOGRAPHIC:
North America
Revenues $491 $492 $570 $539 $2,092
Income before
Income Taxes
(4) $142 $144 $10 $- $296
Caribbean (1)
Revenues $367 $361 $333 $381 $1,442
Income before
Income Taxes
(4) $60 $73 $42 $(60) $115
South America
Revenues $793 $713 $714 $690 $2,910
Income before
Income Taxes
(4) $(11) $(266) $(290) $(963) $(1,530)
Europe/Africa
Revenues $450 $385 $382 $469 $1,686
Income before
Income Taxes
(4) $83 $24 $11 $(1,148) $(1,030)
Asia
Revenues $100 $108 $88 $96 $392
Income before
Income Taxes
(4) $36 $39 $23 $18 $116
Corporate (3)
Income before
Income Taxes
(4) $(130) $(122) $(102) $(148) $(502)
SEGMENTS:
Contract
Generation
Revenues $653 $639 $603 $671 $2,566
Gross Margin
(2) $270 $259 $243 $289 $1,061
Income before
Income Taxes
(4) $182 $144 $148 $142 $616
Competitive
Supply
Revenues $416 $373 $395 $454 $1,638
Gross Margin
(2) $91 $85 $94 $(133) $137
Income before
Income Taxes
(4) $(31) $(28) $(158) $(1,277) $(1,494)
Large
Utilities
Revenues $766 $859 $781 $732 $3,138
Gross Margin
(2) $232 $184 $200 $69 $685
Income before
Income Taxes
(4) $134 $50 $(174) $(952) $(942)
Growth
Distribution
Revenues $366 $188 $308 $318 $1,180
Gross Margin
(2) $82 $(96) $48 $(29) $5
Income before
Income Taxes
(4) $25 $(152) $(20) $(66) $(213)
Corporate (3)
Income before
Income Taxes
(4) $(130) $(122) $(102) $(148) $(502)
ADDITIONAL
INFORMATION:
Revenues $2,201 $2,059 $2,087 $2,175 $8,522
Gross Margin
(2) $675 $432 $585 $196 $1,888
Gross Margin
Percentage
(2) 31% 21% 28% 9% 22%
Income before
Income Taxes
(4) $180 $(108) $(306) $(2,301) $(2,535)
Total Assets
(billions) $40 $39 $37 $34 $34
Depreciation
and
Amortization $197 $199 $193 $198 $787
FAS 133 Gain
(Loss),
After-Tax $17 $25 $(6) $(48) $(12)
Foreign
Exchange
Gain (Loss)
from Brazil,
After-Tax $(10) $(85) $(203) $46 $(252)
Foreign
Exchange Gain
(Loss) from
Argentina,
After-Tax $(82) $(52) $- $(5) $(139)
Foreign
Exchange Gain
(Loss) from
Venezuela,
After-Tax $65 $25 $21 $(72) $39
THE AES CORPORATION --- Supplemental
Data
-----------------------------------------
($ in millions, except Total Assets in
billions)
---2003---
1st Qtr
----------------
GEOGRAPHIC:
North America
Revenues $552
Income before Income Taxes (4) $120
Caribbean (1)
Revenues $398
Income before Income Taxes (4) $16
South America
Revenues $681
Income before Income Taxes (4) $53
Europe/Africa
Revenues $485
Income before Income Taxes (4) $23
Asia
Revenues $107
Income before Income Taxes (4) $41
Corporate (3)
Income before Income Taxes (4) $(140)
SEGMENTS:
Contract Generation
Revenues $728
Gross Margin (2) $291
Income before Income Taxes (4) $154
Competitive Supply
Revenues $460
Gross Margin (2) $114
Income before Income Taxes (4) $40
Large Utilities
Revenues $699
Gross Margin (2) $164
Income before Income Taxes (4) $69
Growth Distribution
Revenues $336
Gross Margin (2) $33
Income before Income Taxes (4) $(10)
Corporate (3)
Income before Income Taxes (4) $(140)
ADDITIONAL INFORMATION:
Revenues $2,223
Gross Margin (2) $602
Gross Margin Percentage (2) 27%
Income before Income Taxes (4) $113
Total Assets (billions) $33
Depreciation and Amortization $177
FAS 133 Gain (Loss), After-Tax $(14)
Foreign Exchange Gain (Loss) from
Brazil, After-Tax $22
Foreign Exchange Gain (Loss) from
Argentina, After-Tax $33
Foreign Exchange Gain (Loss) from
Venezuela, After-Tax $4
(1) Includes Venezuela and Colombia.
(2) Gross Margin is revenues reduced by cost of sales and services.
(3) Corporate consists of interest expense and selling, general and
administrative expenses. Revenue and Gross Margin for Corporate
equal zero.
(4) Amount is net of pre-tax minority interest.
THE AES CORPORATION
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2003 AND DECEMBER 31, 2002
($ in millions) March December
31, 31,
2003 2002
-------- --------
Assets:
Current assets:
Cash and cash equivalents $1,163 $769
Restricted cash 206 160
Short term investments 239 210
Accounts receivable, net of reserves of $385 and
$424, respectively 1,140 1,119
Inventory 387 378
Receivable from affiliates 6 25
Deferred income taxes - current 124 130
Prepaid expenses 107 68
Other current assets 912 950
Current assets of held for sale and discontinued
businesses 451 540
-------- --------
Total current assets 4,735 4,349
Property, Plant and Equipment:
Land 725 702
Electric generation and distribution assets 19,558 18,505
Accumulated depreciation (4,267) (4,070)
Construction in progress 2,620 3,222
-------- --------
Property, plant and equipment, net 18,636 18,359
Other assets:
Deferred financing costs, net 421 400
Project development costs 6 15
Investment in and advances to affiliates 695 678
Debt service reserves and other deposits 510 508
Goodwill, net 1,375 1,388
Deferred income taxes - noncurrent 979 939
Long-term assets of held for sale and discontinued
businesses 3,748 5,856
Other assets 1,764 1,768
-------- --------
Total other assets 9,498 11,552
-------- --------
Total Assets $32,869 $34,260
======== ========
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable $1,153 $1,130
Accrued interest 495 362
Accrued and other liabilities 1,175 1,148
Current liabilities of held for sale and
discontinued businesses 2,752 537
Recourse debt-current portion 26 26
Non-recourse debt-current portion 3,989 3,308
-------- --------
Total current liabilities 9,590 6,511
Long-term liabilities:
Recourse debt 5,463 5,778
Non-recourse debt 10,030 10,550
Deferred income taxes 957 981
Long-term liabilities of held for sale and
discontinued businesses 1,371 5,202
Pension liabilities 1,193 1,166
Other long-term liabilities 2,625 2,617
-------- --------
Total long-term liabilities 21,639 26,294
Minority interest, including discontinued
operations of $41 in 2002 806 818
Company obligated convertible mandatorily
redeemable
preferred securities of subsidiary trusts
holding
solely junior subordinated debentures of AES 978 978
Stockholders' equity:
Common stock 6 6
Additional paid-in capital 5,349 5,312
Retained earnings (606) (700)
Accumulated other comprehensive loss (4,893) (4,959)
-------- --------
Total stockholders' equity (144) (341)
-------- --------
Total Liabilities and Stockholders' Equity $32,869 $34,260
======== ========
THE AES CORPORATION
CAPITAL RESOURCES AND OTHER BALANCE SHEET DATA
($ in billions)
March 31, December
31,
Capitalization: 2003 2002
----------- --------
Recourse debt $5.49 $5.80
Non-recourse debt 14.02 13.86
----------- --------
Total debt 19.51 19.66
Preferred Securities 0.98 0.98
Minority Interest 0.81 0.82
Stockholders' equity (0.14) (0.34)
----------- --------
Total capitalization $21.16 $21.12
=========== ========
Selected Balance Sheet Data by Geographic Region:
Property, Non-
Plant Total recourse
March 31, 2003 & Equipment Assets Debt
-------------------------------
North America $6.11 $7.42 $4.26
Caribbean 4.66 6.05 2.56
South America 4.91 9.49 5.35
Europe/Africa 1.45 6.05 0.70
Asia 1.50 2.35 1.15
Discontinued Operations - 0.84 -
Corporate 0.01 0.67 -
December 31, 2002
North America $6.13 $7.41 $4.26
Caribbean 5.13 6.54 2.90
South America 4.28 8.72 4.97
Europe/Africa 1.43 5.95 0.67
Asia 1.38 2.20 1.06
Discontinued Operations - 3.04 -
Corporate 0.01 0.40 -
Selected Balance Sheet Data by Line of Business:
Property,
Plant Non-
March 31, 2003 & Total recourse
Equipment Assets Debt
-------------------------------
Contract Generation $8.94 $13.22 $7.03
Competitive Supply 2.39 6.48 1.16
Large Utilities 5.70 8.52 4.59
Growth Distribution 1.60 3.14 1.24
Discontinued Operations - 0.84 -
Corporate 0.01 0.67 -
December 31, 2002
Contract Generation $8.08 $12.14 $6.55
Competitive Supply 3.08 7.19 1.43
Large Utilities 5.65 8.45 4.64
Growth Distribution 1.54 3.04 1.24
Discontinued Operations - 3.04 -
Corporate 0.01 0.40 -
The AES Corporation
Parent Financial Information
----------------------------------------------------------------------
Parent Only Data: Last Four Quarters
($ in millions)
4 Quarters Ended
December March December
Total Subsidiary Distributions & 31, 31, 31,
Returns of Capital to Parent 2002 2003 2003
-------------------------------------
Actual Actual Forecast
(1)
-------- ------- --------
Subsidiary Distributions to
Parent $804 $658 $965
Subsidiary Distributions to
QHCs (2) 291 286 100
-------- ------- --------
Subsidiary Distributions 1,095 944 1,065
Returns of Capital
Distributions to Parent 84 43 120
Returns of Capital
Distributions to QHCs (2) 0 0 0
-------- ------- --------
Returns of Capital
Distributions 84 43 120
Combined Distributions & Return
of Capital Received 1,179 987 1,185
Less: Combined Distributions & Returns of
Capital Received by QHCs (2) (291) (286) (100)
-------- ------- --------
Total Subsidiary Distributions &
Returns of Capital to Parent $888 $701 $1,085
======== ======= ========
Liquidity (3) Balance at
-------------------------------
($ in millions) December March December
31, 31, 31,
2002 2003 2003
Actual Actual Forecast
(1)
-------- ------- --------
Cash at Parent $188 $395 $423
Availability under Revolver 18 28 39
Cash at QHCs (2) 10 66 75
-------- ------- --------
Ending Liquidity $216 $489 $537
======== ======= ========
Parent Only Data: Quarterly
($ in millions)
Quarter Ended
Total Subsidiary Distributions March June September December March
& Returns of Capital to 31, 30, 30, 31, 31,
Parent 2002 2002 2002 2002 2003
-------------------------------
Actual Actual Actual Actual Actual
------ ------ -------- ------- --------
Subsidiary Distributions to
Parent $282 $197 $176 $149 $136
Subsidiary Distributions to
QHCs (2) 49 66 76 100 44
------ ------ -------- ------- --------
Subsidiary Distributions 331 263 252 249 180
Returns of Capital
Distributions to Parent 43 14 4 23 2
Returns of Capital
Distributions to QHCs (2) 0 0 0 0 0
------ ------ -------- ------- --------
Returns of Capital
Distributions 43 14 4 23 2
Combined Distributions & Return
of Capital Received 374 277 256 272 182
Less: Combined Distributions &
Returns of Capital Received by
QHCs (2) (49) (66) (76) (100) (44)
------ ------ -------- ------- --------
Total Subsidiary Distributions
& Returns of Capital to Parent $325 $211 $180 $172 $138
====== ====== ======== ======= ========
Liquidity (3) Balance at
-------------------------------
($ in millions) March June September December March
31, 30, 30, 31, 31,
2002 2002 2002 2002 2003
Actual Actual Actual Actual Actual
------ ------ -------- ------- --------
Cash at Parent $240 $288 $384 $188 $395
Availability under Revolver 39 69 5 18 28
Cash at QHCs (2) 6 2 6 10 66
------ ------ -------- ------- --------
Ending Liquidity $285 $359 $395 $216 $489
====== ====== ======== ======= ========
(1) Forecasted financial information is based on certain material assumptions. Such assumptions include, but are not limited to the following: a. We assume continued normal levels of operating performance and electricity demand at our distribution companies. b. With respect to our assumptions about electricity prices that affect our coal plants in New York, we have assumed an average on- peak price during 2003 of approximately $50 per mega-watt-hour. c. We assume operational performance at our contract generation businesses consistent with historical levels and 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 the provisions of the relevant contracts. d. Our assumptions about asset sales include transactions that are supported by signed agreements and that have been previously announced. (2) The cash held at qualifying holding companies represents cash sent to subsidiaries of the Company domiciled dom·i·cile n. 1. A residence; a home. 2. One's legal residence. v. dom·i·ciled, dom·i·cil·ing, dom·i·ciles v.tr. 1. outside of 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 of 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. (3) 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 INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . Certain statements regarding AES' ("the Company's") business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets 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 on Form 10- K for the year ended December December: see month. 31, 2002. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion