AES Reports Parent EBITDA Of $1.16 Billion.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)--Oct. 3, 2001 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) announced today that Parent EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the four quarters ended September September: see month. 30, 2001 was $1.16 billion; a 96% increase compared with the $593 million reported for the four quarters ended September 30, 2000. AES expects Parent EBITDA for the four quarters ended December December: see month. 31, 2001 to remain at approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. the same level. AES believes Parent EBITDA is a useful measure in assessing AES's credit quality. Parent EBITDA 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 Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Parent EBITDA is measured after payment of principal and interest on nonrecourse debt A nonrecourse debt or non-recourse debt or nonrecourse loan is a secured loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. 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 EBITDA 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: cash flows see the attached schedules. This information will be discussed on a conference call to be held on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , October October: see month. 5, 2001 at 2:30 pm (Eastern). If you are interested in participating in the conference call, the number to dial is (212) 896 6163 and the 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 is 19830407. A live webcast of the call will also be available online at http://www.aesc.com/investor/webcasts.cfm and http://www.streetevents.com. AES is a leading global power company comprised of competitive generation, distribution and retail supply businesses worldwide. The company's generating assets include interests in one hundred and eighty one facilities totaling over 60 gigawatts of capacity. AES's electricity distribution network has over 920,000 km of conductor conductor Any of various substances that allow the flow of electric current or thermal energy. A conductor is a poor insulator because it has a low resistance to such flow. and associated rights of way and sells over 126,000 gigawatt gig·a·watt n. Abbr. GW One billion (109) watts. hours per year to over 18 million end-use customers. In addition, through its various retail electricity supply businesses, the company sells electricity to over 154,000 end-use customers. AES is dedicated to providing electricity worldwide in a socially responsible way. This news release includes 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. . Actual events and results may differ materially from those projected. Factors that could affect actual results are discussed in AES's filings with the Securities and Exchange Commission, and readers are encouraged to read those filings to learn more about the risk factors associated with AES's businesses. For more general information visit our web site at www.aesc.com or contact investor relations Investor relations The process by which the corporation communicates with its investors. at investing@aesc.com. The list aes-pr-announce is an automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. mailing list An automated e-mail system on the Internet, which is maintained by subject matter. There are thousands of such lists that reach millions of individuals and businesses. New users generally subscribe by sending an e-mail with the word "subscribe" in it and subsequently receive all new and can be found on the investing page of our web site. Those who subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; this list will receive updates when AES issues a press release.
Parent EBITDA and Related Information
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Parent Only Data
Year Ended December 31, Quarters Ended
June 30, Sept. 30,
1997 1998 1999 2000 2001 2001
---- ---- ---- ---- ---- ----
In millions, except percentages and ratios
Parent EBITDA(1) $259 $360 $403 $871 $1,004 $1,160
Parent EBITDA by
Region
-------------------
North America 79% 48% 60% 39% 44% 44%
South/Central
America 12% 31% 15% 46% 42% 41%
Europe 8% 20% 19% 11% 11% 9%
Asia 1% 1% 6% 4% 3% 6%
Parent Interest
Charges(2) $46 $118 $164 $216 $267 $338
Interest Coverage
Ratio(3) 5.63x 3.05x 2.46x 4.03x 3.76x 3.43x
----------------------------------------------------------------------
3 Months Ended
March 31, June 30, Sept 30,
(Quarterly) 2001 2001 2001
---- ---- ----
Parent EBITDA $180 $258 $335
Parent Interest Charges $79 $80 $112
Interest Coverage Ratio 2.28x 3.23x 2.99x
Notes:
(1) Our Parent EBITDA definition may differ from that, or similarly
titled measures, used by other companies. Parent EBITDA 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 EBITDA
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 EBITDA 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 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
EBITDA for such period to Parent Interest Charges for such period.
Consolidated Cash Flow Information
----------------------------------------------------------------------
The following table summarizes consolidated cash flow information
derived from our consolidated financial statements. This information
should be read in conjunction with our quarterly and annual
consolidated financial statements and notes thereto, which are
periodically filed with the Securities and Exchange Commission.
Year Ended December 31,
1997 1998 1999 2000
------- ------- ------- -------
Net Cash Provided by
Operating Activities $ 423 $ 763 $ 411 $ 646
Net Cash Used in
Investing Activities (3,881) (1,921) (6,501) (5,533)
Net Cash Provided by
Financing Activities 3,573 1,339 6,282 5,144
------- ------- ------- -------
Increase in Cash and Cash
Equivalents 115 181 192 257
Cash and Cash Equivalents,
Beginning of Period 205 320 501 693
------- ------- ------- -------
Cash and Cash Equivalents,
End of Period $ 320 $ 501 $ 693 $ 950
3 Months Ended
March 31, June 30,
2001 2001
Unaudited
Net Cash Provided by
Operating Activities $ 876 $ 237
Net Cash Used in
Investing Activities (931) (772)
Net Cash Provided by
(Used in) Financing
Activities 935 (105)
------- -------
Increase (Decrease) in
Cash and Cash Equivalents 880 (640)
Cash and Cash Equivalents,
Beginning of Period 950 1,830
------- -------
Cash and Cash Equivalents,
End of Period $ 1,830 $ 1,190
During March 2001, the Company entered into a business combination
with IPALCO Enterprises, Inc. ("IPALCO"). The business combination has
been accounted for as pooling of interests, and the consolidated
financial information for all periods shown above include the cash
flows of IPALCO.
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