AES Reports Second Quarter Earnings of $0.43 Per Share Before Deducting Foreign Currency Transaction Losses.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)--July 22, 1999-- 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, before deducting the foreign currency transaction losses incurred during the quarter and discussed below, net income as adjusted for the exclusion was $84 million for the quarter ended June June: see month. 30, 1999, representing an increase of 17% over net income of $72 million for the second quarter of 1998. Fully 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 , excluding the effects of the transaction losses, were $0.43 for the quarter, compared to $0.39 for the same quarter in 1998. Revenues for the quarter were $641 million, up 13% compared to $565 million reported in the same quarter last year. For the first six months of 1999 net income, excluding the foreign currency losses, was $158 million for 1999 or $.82 per share fully 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. as compared to $137 million or $0.73 per share for the same period in 1998. Revenues increased 12% for the first half of 1999 to $1.3 billion. However, primarily due to the effects of 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 Brazilian reais on the foreign currency denominated debt (primarily U.S. dollars) within AES's Brazilian subsidiaries and affiliates, AES has recorded a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. through June 30, 1999 for foreign currency transaction losses of $146 million ($99 million after income taxes) of which $17 million ($12 million after income taxes) is related to the second quarter of 1999. Including these foreign currency transaction losses, the net income for the second quarter was $72 million, as compared to net income of $71 million in the second quarter of 1998. As a result, the fully diluted earnings per share was $0.37 for the quarter, as compared to earnings per share of $0.39 for the second quarter of 1998 and $0.31 for the first six months of 1999 as compared to $0.75 for the same period in 1998. 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. J. Sharp, Senior Vice President and Chief Financial Officer, stated, "This was a solid quarter for us, particularly as we continue to see the effects of the Brazilian financial crisis on our results of operations. Also, we have made outstanding progress on the numerous financings and refinancings that we outlined at the beginning of this year--many of these financings taking place in difficult, uncertain financing environments." Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the W. Bakke Bakke may 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 and Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. are now an integral part of our global family. We were particularly pleased to reach an agreement with the Government of Kazakhstan The Government of Kazakhstan oversees a presidential republic. The President of Kazakhstan, currently Nursultan Nazarbayev, is head of state and nominates the head of government. Executive power is exercised by the government. that allows us to distribute electricity through two regional electric companies as well as to export power to Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). from our Ekibastuz Ekibastuz (ĕkēbäst  s`), city (1990 pop. 134,627), N Kazakhstan. It is the industrial center of a bituminous coal-mining basin, which has coal reserves estimated at 8 billion plant. We continue to make
significant progress with our businesses in the former Soviet Union and
appreciate the chance to work with the governments in those countries as
we go about implementing dramatic changes in the electric sector. In
general, new business opportunities have never been better."Business development milestones in 1999 include the following: -- In February February: see month. , a subsidiary of AES executed a Power Purchase Agreement ("PPA PPA 1. Palpation, Percussion & Ausculation 2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary atresia ") with Williams Energy Marketing and Trading Company, a subsidiary of The Williams Company, Inc., for the entire output of the planned 700 MW AES 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. power generating facility. -- In February, a subsidiary of AES was selected by the Hungarian utility, the MVM MVM Merck Veterinary Manual MVM Minute Virus of Mice MVM Market Value Margin MVM Matrix-Vector Multiplication MVM Most Valuable Member MVM MetroCard Vending Machine (NYC transit) MVM Maharishi Vidya Mandir , to build, own and operate a 190 MW gas-fired gas-fired adj → de gas gas-fired adj → au gaz gas-fired adj (heater etc) → Gas- combined cycle A combined cycle is characteristic of a power producing engine or plant that employs more than one thermodynamic cycle. Heat engines are only able to use a portion of the energy their fuel generates (usually less than 50%). The remaining heat from combustion is generally wasted. power plant, AES Phoenix, in eastern Hungary. -- In April, AES Thames reached Thames Reach is a London based charity working with homeless men and women. Services Its services include outreach work with rough sleepers, a range of hostels and supported housing projects, and schemes which focus on supporting people who have experienced homelessness agreement to a partial prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of future electricity sales with 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). Light & Power Company (CL&P). -- In April, a subsidiary of AES won a bid to acquire 50 percent of the shares of Empresa Distribudora Electrica Este (EDE E·de A city of western Nigeria northeast of Ibadan. A center of Yoruba culture, it is in a cocoa-growing region. Population: 248,000. Este), an electric distribution company 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. . -- In May, AES completed the financing of six power plants it purchased in New York from NGE NGE Neon Genesis Evangelion (anime) NGE Neon Genesis Evangelion (Japanese Anime) NGE New Game Enhancements (gaming, Star War Galaxies) NGE Not Good Enough Generation, Incorporated ("NGE") for approximately $953 million. -- In May, a subsidiary of AES completed the financing for a 393 MW coal-fired plant, AES Fifoots Point, in South Wales South Wales south n → sud m du Pays de Galles , United Kingdom. -- In May, a subsidiary of AES completed the purchase of two Ecogen Energy power plants from the government of Victoria, Australia for approximately $227 million. -- In May, a subsidiary of AES agreed to acquire subscription rights from Eletrobas Centrais Eletricas Brasileiras, S.A., which will allow it to purchase additional shares in Light Servicos de Eletricidade S.A. ("Light") and Eletropaulo S.A. -- In May, a subsidiary of AES has completed a (pound)122 million (approximately $195 million) non-recourse project refinancing Refinancing An extension and/or increase in amount of existing debt. for its 230 MW gas-fired combined cycle power plant in Barry, South Wales Wales, Welsh Cymru, western peninsula and political division (principality) of Great Britain (1991 pop. 2,798,200), 8,016 sq mi (20,761 sq km), west of England; politically united with England since 1536. The capital is Cardiff. , United Kingdom. -- In June, AES announced that it has entered into a definitive agreement to acquire New Energy Ventures in a transaction valued at approximately $90 million. -- In June, AES announced that it has assumed management control of two regional electric distribution companies (REC's) in Kazakhstan. -- In June, a subsidiary of AES has completed a $308.5 million non-recourse bond financing for the construction of a 705 MW natural gas-fired combined cycle plant to be located in South Lebanon Township, Pennsylvania Lebanon Township is a township in Wayne County, Pennsylvania, United States. The population was 645 at the 2000 census. Geography According to the United States Census Bureau, the township has a total area of 98.3 km² (38.0 mi²). 96.4 km² (37.2 mi²) of it is land and 1. . -- In June, a subsidiary of AES has completed a $448 million financing for its 826 MW (net) natural gas-fired combined cycle power plant in San Nicolas San Nicolas or San Nicolás ("Saint Nicholas") may refer to:
AES is a leading global power company that currently owns or has an interest in one hundred and five power facilities totaling over 32,000 megawatts in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Canada, Australia, Argentina, Brazil, Dominican Republic, Panama, Mexico, Pakistan, India, Bangladesh the Netherlands, Hungary, Kazakhstan, China and the United Kingdom. AES also distributes electricity to nearly 14 million customers. In addition to having assets in excess of $10 billion, the Company has a significant number of projects in construction or development. AES is dedicated to providing electricity worldwide in a socially responsible way. For more general information visit our web site at www.aesc.com or contact investor relations Investor relations The process by which the corporation communicates with its investors. at investing@aesc.com. The list aes-pr-announce is an automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. mailing list An automated e-mail system on the Internet, which is maintained by subject matter. There are thousands of such lists that reach millions of individuals and businesses. New users generally subscribe by sending an e-mail with the word "subscribe" in it and subsequently receive all new and can be found on the investing page of our web site. Those who subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; this list will receive updates when AES issues a press release. -0-
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED JUNE 30, 1999 AND 1998
----------------------------------------------------------------------
Three Three Change
Months % Months % From
Ended of Ended of Previous %
06/30/99 Sales 06/30/98 Sales Year Change
----------------------------------------------------------------------
($ in millions,
except per
share amounts)
REVENUES:
Sales and services $ 640 100% $ 565 100% $ 75 13%
OPERATING COSTS AND
EXPENSES:
Cost of sales and
services 421 66% 385 68% (36) -9%
Selling, general and
administrative
expenses 15 2% 12 2% (3) -25%
Provision to reduce
contract receivables (9) -1% - - 9 -100%
----- ----- -----
Total operating costs
and expenses 427 67% 397 70% (30) -8%
----- ----- -----
OPERATING INCOME 213 33% 168 30% 45 27%
OTHER INCOME AND
(EXPENSE):
Interest expense (143) -22% (99) -18% (44) -44%
Interest and other
income 17 3% 17 3% - -
Foreign currency
transaction loss (5) -1% - - (5) -100%
Equity in earnings of
affiliates (before
income tax):
Earnings of
affiliates $49
Foreign currency
transaction
loss (12)
-----
Total 37 37 6% 43 8% (6) -14%
----- ----- -----
INCOME BEFORE INCOME
TAXES AND MINORITY
INTEREST 119 18% 129 23% (10) -8%
Income tax provision 34 5% 36 6% 2 6%
Minority interest 14 2% 22 4% 8 36%
----- ----- -----
NET INCOME $ 71 11% $ 71 13% $ 0 -1%
===== ===== =====
BASIC EARNINGS PER
SHARE: $0.37 $0.41 $(0.03)
===== ===== =====
DILUTED EARNINGS PER
SHARE: $0.36 $0.39 $(0.03)
===== ===== =====
THE AES CORPORATION--Supplemental Schedule (1)
CONSOLIDATED SCHEDULE (Excluding Foreign Currency Transaction Loss)(1)
FOR THE PERIODS ENDED JUNE 30, 1999 AND 1998
----------------------------------------------------------------------
Three Three Change
Months % Months % From
Ended of Ended of Previous %
06/30/99 Sales 06/30/98 Sales Year Change
----------------------------------------------------------------------
($ in millions,
except per
share amounts)
REVENUES:
Sales and services $ 640 100% $ 565 100% $ 75 13%
OPERATING COSTS AND
EXPENSES:
Cost of sales and
services 421 66% 385 68% (36) -9%
Selling, general and
administrative
expenses 15 2% 12 2% (3) -25%
Provision to reduce
contract receivables (9) -1% - - 9 -100%
----- ----- -----
Total operating costs
and expenses 427 67% 397 70% (30) -8%
----- ----- -----
OPERATING INCOME 213 33% 168 30% 45 27%
OTHER INCOME AND
(EXPENSE) Excluding
Foreign Currency
Transaction Loss:
Interest expense (143) -22% (99) -18% (44) -44%
Interest and other
income 17 3% 17 3% - -
Equity in earnings of
affiliates (before
income tax) 49 7% 44 8% 5 11%
INCOME BEFORE INCOME
TAXES AND MINORITY
INTEREST, Excluding
Foreign Currency
Transaction Loss 136 21% 130 23% 6 5%
Income taxes 38 6% 36 6% (2) -6%
Minority interest 14 2% 22 4% 8 35%
----- ----- -----
NET INCOME, Excluding
Foreign Currency
Transaction Loss $ 84 13% $ 72 13% $ 12 17%
===== ===== =====
BASIC EARNINGS PER
SHARE, Excluding
Foreign Currency
Transaction Loss: $0.44 $0.41 $0.03
===== ===== =====
DILUTED EARNINGS PER
SHARE, Excluding
Foreign Currency
Transaction Loss: $0.43 $0.39 $0.05
===== ===== =====
(1) Basis of presentation -- This schedule presents, on a proforma
basis, the results of operations of AES excluding the aggregate (both
subsidiaries and affiliates) foreign currency transaction losses of
approximately $17 million ($13 million after income taxes) and $0.6
million ($0.4 million after income taxes) incurred during the second
quarter of 1999 and 1998, respectively.
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED JUNE 30, 1999 AND 1998
----------------------------------------------------------------------
Six Six Change
Months % Months % From
Ended of Ended of Previous %
06/30/99 Sales 06/30/98 Sales Year Change
----------------------------------------------------------------------
($ in millions,
except per
share amounts)
REVENUES:
Sales and
services $1,278 100% $1,140 100% $ 138 12%
OPERATING COSTS
AND EXPENSES:
Cost of sales
and services 830 65% 782 69% (48) -6%
Selling,
general and
administrative
expenses 31 2% 27 2% (4) -15%
Provision to
reduce contract
receivables - - 15 1% 15 100%
----- ----- -----
Total operating
costs and
expenses 861 67% 824 72% (37) -4%
----- ----- -----
OPERATING INCOME 417 33% 316 28% 101 32%
OTHER INCOME
AND (EXPENSE):
Interest
expense (276) -22% (202) -18% (74) -37%
Interest and
other income 33 3% 31 3% 2 6%
Foreign currency
transaction loss (2) - - - (2) -100%
Equity in (loss)
earnings of
affiliates (before
income tax):
Earnings of
affiliates $90
Foreign
currency
transaction
loss (144)
-----
Total (54) (54) -4% 100 9% (154) -154%
----- ----- -----
INCOME BEFORE INCOME
TAXES AND MINORITY
INTEREST 118 10% 245 22% (127) -52%
Income tax
provision 28 2% 69 6% 41 59%
Minority interest 32 3% 40 4% 8 21%
----- ----- -----
NET INCOME $ 58 5% $ 136 12% $ (78) -57%
===== ===== =====
BASIC EARNINGS
PER SHARE: $ 0.31 $ 0.77 $ (0.46)
===== ===== =====
DILUTED EARNINGS
PER SHARE: $ 0.31 $ 0.75 $ (0.44)
===== ===== =====
THE AES CORPORATION--Supplemental Schedule (1)
CONSOLIDATED SCHEDULE (Excluding Foreign Currency Transaction Loss)(1)
FOR THE PERIODS ENDED JUNE 30, 1999 AND 1998
----------------------------------------------------------------------
Six Six Change
Months % Months % From
Ended of Ended of Previous %
06/30/99 Sales 06/30/98 Sales Year Change
----------------------------------------------------------------------
($ in millions,
except per
share amounts)
REVENUES:
Sales and
services $1,278 100% $1,140 100% $ 138 12%
OPERATING COSTS
AND EXPENSES:
Cost of sales
and services 830 65% 782 69% (48) -6%
Selling, general
and administrative
expenses 31 2% 27 2% (4) -15%
Provision to reduce
contract
receivables - - 15 1% 15 100%
------ ------ ------
Total operating
costs and
expenses 861 67% 824 72% (37) -4%
------ ------ ------
OPERATING INCOME 417 33% 316 28% 101 32%
OTHER INCOME AND
(EXPENSE) Excluding
Foreign Currency
Transaction Loss:
Interest expense (276) -22% (202) -18% (74) -37%
Interest and other
income 33 3% 31 3% 2 6%
Equity in earnings
of affiliates
(before income tax) 90 7% 102 9% (12) -12%
----- ------ ------
INCOME BEFORE INCOME
TAXES AND MINORITY
INTEREST, Excluding
Foreign Currency
Transaction Loss 264 21% 247 22% 17 7%
Income taxes 74 6% 70 6% (4) -6%
Minority interest 32 3% 40 4% 8 20%
------ ------ ------
NET INCOME, Excluding
Foreign Currency
Transaction Loss $ 158 12% $ 137 12% $ 21 15%
====== ====== ======
BASIC EARNINGS PER
SHARE, Excluding
Foreign Currency
Transaction Loss: $ 0.84 $ 0.78 $ 0.06
====== ====== ======
DILUTED EARNINGS PER
SHARE, Excluding
Foreign Currency
Transaction Loss: $ 0.82 $ 0.73 $ 0.09
====== ====== ======
(1) Basis of presentation -- This schedule presents, on a proforma
basis, the results of operations of AES excluding the aggregate (both
subsidiaries and affiliates) foreign currency transaction losses of
approximately $146 million ($100 million after income taxes) and $1.5
million ($1 million after income taxes) incurred during the six months
ended June 30, 1999 and 1998, respectively.
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