AES Reports Third Quarter Earnings From Recurring Operations of 0.17 Dollars Per Share and Last Twelve Month Parent Company Operating Cash Flow of 1.24 Billion Dollars.Business Editors/Energy Editors/Environment Writers 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. 24, 2002 Net Loss of $(0.58) Per Share for the Quarter After Discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: Operations 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 earnings from recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. operations of $92 million, or 17 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the third quarter ended September September: see month. 30, 2002, down 39% from $151 million, or 28 cents per share, in the year earlier quarter. Earnings from recurring operations for the nine months ended September 30, 2002, were $410 million, or 76 cents per share, down 26% from $557 million, or $1.03 per share, for the nine months ended September 30, 2001. Revenues for the third quarter were $2.1 billion, up 16% percent from a year earlier. After adjusting for non-cash charges 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. and discontinued 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 , AES reported a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). loss for the third quarter of $(314) million, or (58) cents per share. For the nine months ended September 30, 2002, the GAAP loss was $(743) million, or $(1.38) per share. The GAAP loss for the third quarter of 2002 includes $(215) million, or (40) cents per 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. . Parent operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. was $1.24 billion for the twelve months ended September 30, 2002 and $252 million for the third quarter of 2002. Parent company liquidity at September 30, 2002, stood at $395 million.
SUMMARY OF KEY FINANCIAL RESULTS
3Q 3Q Change YTD YTD Change
2002 2001 2002 2001
Pro Forma
Net Income
Millions ($) 92 151 (59) 410 557 (147)
$/share 0.17 0.28 (0.11) 0.76 1.03 (0.27)
GAAP Income
(Loss) from
Continuing
Operations
Millions ($) (99) 6 (105) (24) 267 (291)
$/share (0.18) 0.01 (0.19) (0.04) 0.50 (0.54)
Parent
Operating
Cash Flow
Millions ($) 252 335 (83) 846 782 64
"This has been a challenging time for AES and others in our industry. We are intensely focused on managing cash flow and liquidity as we work on solutions to near term challenges. At the same time, we remain committed to strengthening AES for the longer term through various initiatives to improve business performance," said 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. "As a result of these efforts, we have begun to see improvements in the operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in many of our businesses, especially in the contract generation business line." Mr. Hanrahan continued, "We have also made good progress on asset sales. In September we completed the sale of AES NewEnergy ahead of schedule for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $260 million, and we expect to close the sale of Cilcorp by the end of the first quarter of 2003 and to realize approximately $500 million in cash." 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, added, "This quarter we have also launched an exchange offer for our 2002 and 2003 notes as well as a new multi-tranche $1.6 billion senior secured credit facility. This is an extremely important transaction for AES as it will help address our near term liquidity issues, permitting the company to establish a more manageable debt maturity schedule over the next several years, as well as providing the flexibility to deliver and strengthen the balance sheet." Other Information This information will be discussed on a conference call to be held today, Thursday Thursday: see week. October October: see month. 24, 2002, at 9:00 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). You may access the call via a live webcast which will be available online at http://www.aes.com under the Investor Relations Investor relations The process by which the corporation communicates with its investors. section. This webcast will be available online until Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , November November: see month. 1, 2002. Also a telephonic replay of the call will be available from approximately 11:30 am on Thursday, October 24, until 6:00 pm on Friday, November 1 (Eastern Time). Please dial (800) 633 8284. The system will ask for a reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number, please enter 20892490 followed by the pound key #. International callers should dial (402) 977 9140. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This news release may contain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " regarding The AES Corporation's business. These statements are not historical facts, but statements that involve risks and uncertainties. Actual results could differ materially from those projected in these forward-looking statements. For a discussion of such risks and uncertainties, see "Risk Factors" in the Company's Annual Report or Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the most recently ended fiscal year. AES is a leading global power company comprised of contract generation, competitive supply, large utilities and growth distribution businesses. The company's generating assets include interests in 176 facilities totaling over 60 gigawatts of capacity, in 33 countries. AES's electricity distribution network sells over 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. Investor Relations Contact Person: Kenneth R. Woodcock woodcock: see snipe. woodcock Any of five species (family Scolopacidae) of plump, sharp-billed migratory birds of damp, dense woodlands in North America, Europe, and Asia. (703) 522- 1315
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED September 30, 2002 AND 2001
Quarter Quarter
Ended Ended
($ in millions, except per share amounts) 9/30/02 9/30/01
REVENUES:
Sales and services $2,138 $1,845
OPERATING COSTS AND EXPENSES:
Cost of sales and services 1,548 1,362
Selling, general and
administrative expenses 12 17
Total operating costs and expenses 1,560 1,379
OPERATING INCOME 578 466
OTHER INCOME AND (EXPENSE):
Interest expense, net (473) (382)
Other expense, net (210) (10)
Equity in earnings (loss)
of affiliates
(before income tax) (20) (23)
Nonrecurring severance and transaction costs - (37)
INCOME (LOSS) BEFORE INCOME TAXES
AND MINORITY INTEREST (125) 14
Income tax benefit (46) (1)
Minority interest expense 20 9
INCOME (LOSS) FROM CONTINUING
OPERATIONS (99) 6
Loss from operations of
discontinued components
(net of income taxes of
$3 and $2, respectively) (215) (3)
NET INCOME (LOSS) $(314) $3
DILUTED EARNINGS PER SHARE:
Income (loss) from continuing operations $(0.18) $0.01
Discontinued operations (0.40) -
Total $(0.58) $0.01
Diluted weighted average
shares outstanding
(in millions) 542 537
THE AES CORPORATION --- Supplemental Schedule
Reconciliation of GAAP Net income (loss) before discontinued
operations to Net income excluding Brazil, Argentina and Venezuela
foreign currency effects, effects of FAS No. 133 and nonrecurring
items.
FOR THE QUARTERS ENDED September 30, 2002 AND 2001
($ in millions, except per share amounts)
Quarter ended Quarter ended
9/30/2002 9/30/2001
Amount Amount Amount Amount
per per
share share
Net income (loss)
before discontinued
operations $(99) $(0.18) $6 $0.01
South America foreign
currency transaction
losses, net(1) 182 0.33 82 0.15
Mark to market losses
from FAS No. 133 (2) 9 0.02 39 0.07
Transaction and
severance costs related
to IPALCO transaction - - 24 0.05
Net income from recurring
operations $92 $0.17 $151 $0.28
Diluted weighted average
shares outstanding
(in millions) 542 542
(1) South America foreign currency transaction losses, net, consist of
the following in 2002: a loss of approximately $203 million after
income tax, or $0.37 per share, from Brazil, and a gain of
approximately $21 million after income tax, or $0.04 per share, from
Venezuela. For 2001, South America foreign currency transaction losses
consist of a loss of approximately $82 million after income tax, or
$0.15 per share, from Brazil.
(2) Mark to market losses from FAS No. 133 consist of the following in
2002: a loss of approximately $22 million after income tax, or $0.04
per share, from interest rate instruments, a gain of approximately $8
million after income tax, or $0.01 per share, from foreign exchange
rate instruments, and a gain of $5 million after income tax, or $0.01
per share, from commodity contracts. For 2001, mark to market losses
from FAS No. 133 consist of the following: a loss of approximately $31
million after income tax, or $0.06 per share, from interest rate
instruments, a gain of approximately $1 million after income tax from
foreign exchange rate instruments, and a loss of approximately $9
million after income tax, or $0.01 per share, from commodity
contracts.
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED September 30, 2002 AND 2001
Nine Months Nine Months
Ended Ended
9/30/02 9/30/01
($ in millions, except per share amounts)
REVENUES:
Sales and services $6,498 $5,806
OPERATING COSTS AND EXPENSES:
Cost of sales and services 4,782 4,251
Selling, general and
administrative expenses 68 73
Total operating costs and expenses 4,850 4,324
OPERATING INCOME 1,648 1,482
OTHER INCOME AND (EXPENSE):
Interest expense, net (1,285) (1,025)
Other income (expense), net (276) 21
Equity in earnings of
affiliates (before income tax) 36 126
Loss on sale or write-down of
investments (116) -
Nonrecurring severance and
transaction costs - (131)
INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 7 473
Income tax provision 42 141
Minority interest (income)
expense (11) 65
INCOME (LOSS) FROM CONTINUING
OPERATIONS (24) 267
Loss from operations of
discontinued components
(net of income taxes of $15
and $18, respectively) (373) (38)
INCOME (LOSS) BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE (397) 229
Cumulative effect of accounting
change (net of income taxes of $72) (346) -
NET INCOME (LOSS) $(743) $229
DILUTED EARNINGS PER SHARE:
Income (loss) from continuing
operations $(0.04) $0.50
Discontinued operations (0.69) (0.07)
Cumulative effect of
accounting change (0.65) -
Total $(1.38) $0.43
Diluted weighted average
shares outstanding (in millions) 537 538
THE AES CORPORATION --- Supplemental Schedule
Reconciliation of GAAP Net income (loss) before discontinued
operations and accounting change to Net income excluding Brazil,
Argentina and Venezuela foreign currency effects, effects of FAS No.
133 and nonrecurring items.
FOR THE NINE MONTHS ENDED September 30, 2002 AND 2001
($ in millions, except per share amounts)
Nine Months Nine Months
ended ended
9/30/2002 9/30/2001
Amount Amount Amount Amount
per per
share share
Net income (loss) before
discontinued operations
and accounting change $(24) $(0.04) $267 $0.50
South America foreign
currency transaction
losses, net (1) 321 0.59 176 0.32
Mark to market (gains)
losses from FAS
No. 133 (2) (90) (0.16) 29 0.05
Loss on sale or
write-down of
investments (3) 104 0.19 - -
Provision for regulatory
decision in Brazil (4) 99 0.18 - -
Transaction and severance
costs related to
IPALCO transaction - - 85 0.16
Net income from recurring
operations $410 $0.76 $557 $1.03
Diluted weighted average
shares outstanding
(in millions) 544 543
(1) 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. foreign currency transaction losses, net, consist of the following in 2002: a loss of approximately $298 million after income tax, or $0.55 per share, from 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. ; a loss of approximately $134 million after income tax, or $0.25 per share, from 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 a gain of approximately $111 million after income tax, or $0.21 per share, from 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. . For 2001, South America foreign currency transaction losses, net, consist of the following: a loss of approximately $187 million after income tax, or $0.34 per share, from Brazil, and a gain of approximately $11 million after income tax, or $0.02 per share, from Venezuela. (2) Mark to market gains from FAS No. 133 consist of the following in 2002: a loss of approximately $29 million after income tax, or $0.06 per share, from interest rate instruments, a gain of approximately $38 million after income tax, or $0.07 per share, from foreign exchange rate instruments, and a gain of $81 million after income tax, or $0.15 per share, from commodity contracts. For 2001, mark to market losses from FAS No. 133 consist of the following: a loss of approximately $66 million after income tax, or $0.12 per share, from interest rate instruments, a gain of approximately $29 million after income tax, or $0.05 per share, from foreign exchange rate instruments, and a gain of approximately $8 million after income tax, or $0.02 per share, from commodity contracts. (3) Amount consists of a loss of $40 million after income tax, or $0.07 per share, resulting from an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge related to an equity method investment in a Latin Lat·in n. 1. a. The Indo-European language of the ancient Latins and Romans and the most important cultural language of western Europe until the end of the 17th century. b. American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of telecommunications company See telecom company. , and a loss of $14 million after income tax, or $0.03 per share, related to the loss on sale of an equity method investment in a Latin American telecommunications company. Additionally, amount includes a loss of $50 million after income tax, or $0.09 per share, related to the loss recognized on the sale of CANTV CANTV Compañía Anónima Nacional Teléfonos de Venezuela shares. (4) The Company has recorded the retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. decision by the Brazilian regulator regulator, n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. depriving AES Sul of amounts the Company believes it was entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to receive as a reduction in revenue. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma revenues for the nine months ended September 30, 2002, approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. $6.7 billion. Business Segment Results AES's business segments, which include Contract Generation, Large Utilities, Competitive Supply and Growth Distribution generated combined income before income taxes (EBT EBT See: Earnings Before Taxes ) of $257 million for the third quarter of 2002 as compared to $359 million during the same period last year. On a geographic basis, EBT for the third quarter of 2002 was generated 71% from North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , 6% from South America, 6% from the Caribbean, 11% from Asia and 6% from Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Africa.
Contract Generation
($ in millions) 3Q 3Q Variance
2002 2001
Segment revenues $ 611 $ 590 $ 21
% of total revenues 29% 32% (3)%
Operating margin $ 245 $ 152 $ 93
% of segment revenues 40% 26% 14%
EBT $ 142 $75 $ 67
% of total EBT 55% 21% 34%
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 third quarter of 2002, Contract Generation revenues were $611 million and represented 29% of total revenues for the quarter, an increase of $21 million over 2001. The most significant contributions continued to be from North and South America, which in aggregate comprised 61% of Contract Generation revenue for the quarter as compared to 63% for the third quarter of 2001. Revenues were enhanced with the addition of recently completed contract generation businesses totaling 1,537 mw (added subsequent to the third quarter of 2001), including 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 (705 mw natural gas) and Red Oak in New Jersey (832 mw natural 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). , 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). , 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. , Los Mina in the Dominican Republic Dominican Republic (dəmĭn`ĭkən), republic (2005 est. pop. 8,950,000), 18,700 sq mi (48,442 sq km), West Indies, on the eastern two thirds of the island of Hispaniola. The capital and largest city is Santo Domingo. and Ecogen in 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. . These improvements were offset by declines at 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, the Gener GENER. A son-in-law. Dig. 50, 16, 156. plants in Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. , Southland south·land or South·land n. A region in the south of a country or an area. south land·er n.Noun 1. and Mendota Mendota can refer to any of the following places in the United States:
The operating margin (as a percentage of revenues) for our Contract Generation segment showed significant improvement over the third quarter of 2001 at 40% for the third quarter of 2002 as compared to 26% for the third quarter of 2001. Stronger margins and margin percentages arose during the quarter at most contract generation plants in South America, North America, Europe and Africa, with the most significant improvements at Tiete and Uruguaiana in Brazil (due to the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of electricity 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. in 2002), Warrior Run, Ironwood and Red Oak in the U.S., Kilroot Kilroot is a small village in County Antrim, Northern Ireland, on the eastern outskirts of Carrickfergus, east of Belfast on the north shore of Belfast Lough. It lies within the Carrickfergus Borough Council area. in Northern Ireland Northern Ireland: see Ireland, Northern. Northern Ireland Part of the United Kingdom of Great Britain and Northern Ireland occupying the northeastern portion of the island of Ireland. Area: 5,461 sq mi (14,144 sq km). Population (2001): 1,685,267. , Tiszai in Hungary and Ebute in Nigeria. These improvements were partially offset by declines at Southland and Mendota in California, Lal Pir and Pak Gen in Pakistan and Haripur in Bangladesh. As a result, Contract Generation delivered $142 million of EBT (or 55% of the total) for the third quarter of 2002, an increase of 89% over the third quarter of 2001 EBT of $75 million (21% of the total). All geographic regions showed increases in EBT within the contract generation segment except for the Caribbean and Asia.
Competitive Supply
($ in millions) 3Q 3Q Variance
2002 2001
Segment revenues $ 437 $ 513 $ (76)
% of total revenues 20% 28% (8)%
Operating margin $ 98 $ 126 $ (28)
% of segment revenues 22% 25% (3)%
EBT $ 29 $ 83 $ (54)
% of total EBT 11% 23% (12)%
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. During the third quarter, AES completed the sale of NewEnergy, a competitive retail supply business for approximately $260 million. As a result of the sale, NewEnergy's results are included in the income statement for both 2001 and 2002 periods as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. and are therefore excluded from the discussion below. For the third quarter of 2002, revenues for this segment were $437 million and represented 20% 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 73% of Competitive Supply revenue for the quarter. Competitive market prices declined year over year in Argentina due to the devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the Peso in January January: see month. 2002 and prices were also lower in California and the UK compared to 2001 and as a result total revenue for the competitive supply segment decreased 15% from the third quarter of 2001. Certain plants showed offsetting revenue improvements including Tiszapalkonya Tiszapalkonya is a village in Borsod-Abaúj-Zemplén county, Hungary. External links
• • in Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. . Year on year increases associated with new businesses in 2002 included Parana in Argentina (845 mw gas) and Delano Delano (dĕl`ənō), city (1990 pop. 22,762), Kern co., S central Calif., in the fertile San Joaquin valley; inc. 1915. The city's economy is based on agriculture (grain and fruit) and related enterprises, especially vineyards and wineries. in California (50 mw gas). The operating margin (as a percentage of revenues) for our Competitive Supply segment was 22% in the third quarter of 2002, a decrease from 25% in the third quarter of 2001. Improvements in margin and margin percentages were most significant at San Nicolas San Nicolas or San Nicolás ("Saint Nicholas") may refer to:
Panama (păn`əmä'), Span. Panamá, officially Republic of Panama, republic (2005 est. pop. . These improvements were offset by lower margins at Alicura in Argentina, the 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, Whitefield White·field , George 1714-1770. British religious leader. A follower of John Wesley, he preached widely in the American colonies and was a central figure in the Great Awakening of Protestantism and the establishment of Methodism in America. 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). , Barry and Drax Drax could refer to:
As a result of lower competitive prices, primarily in California and the UK, Competitive Supply generated $29 million of EBT (or 11% of the total) for the third quarter of 2002, a decrease from the 2001 third quarter EBT of $83 million.
Large Utilities
($ in millions) 3Q 3Q Variance
2002 2001
Segment revenues $ 781 $ 424 $ 357
% of total revenues 37% 23% 14%
Operating margin $ 200 $ 155 $ 45
% of segment revenues 26% 37% (11)%
EBT $ 87 $ 203 $(116)
% of total EBT 34% 56% (22)%
The Large Utilities segment is comprised of our four large integrated utilities that serve nearly 11 million customers in North America, the Caribbean and South America. Businesses include IPALCO IPALCO Indianapolis Power and Light Company in Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , EDC EDC See: Export Development Corp. in Venezuela along with CEMIG CEMIG Companhia Energética de Minas Gerais (Brazil) (an equity affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. ) and Eletropaulo AES Eletropaulo (also known simply as Eletropaulo) is a major Brazilian power distributor in the state of São Paulo. The company's full name is Eletropaulo Metropolitana Eletricidade de São Paulo. Eletropaulo has around 5 million customers. in Brazil. During the second quarter of 2002, AES announced the sale of CILCO CILCO Central Illinois Light Company , a large utility business serving Central Illinois Central Illinois is a region of the U.S. state of Illinois that consists of the entire central section of the state, divided in thirds from north to south. It is an area of mostly flat prairie. , for an enterprise value of approximately $1.4 billion. As a result of the pending sale, CILCO's results are included in the income statement for both 2001 and 2002 periods as a discontinued operation and are therefore excluded from the discussion below. For the third quarter of 2002, revenues for this segment were $781 million and represented 37% of total revenues for the quarter. The significant increase in revenues of 84% resulted primarily from consolidating the results of Eletropaulo (serving Sao Paulo Paulo is the Portuguese form of the given name Paul:
The operating margin was $200 million for the quarter, an increase of 29% over 2001 due to the consolidation of Eletropaulo and an improvement in the operating margin at IPALCO. These increases were offset by a decline in the operating margin at EDC. As a percentage of sales the operating margin for large utilities was 26%, down from 37% for the third quarter of 2001 because of reductions in margin at EDC resulting in part from the devaluation of the Bolivar as well as lower than average segment margins at Eletropaulo during the third quarter of 2002 because of slower than anticipated recovery of electricity demand from the effects of rationing in Brazil that ended in March 2002. Large Utilities generated $87 million of EBT (or 34% of the total) for the third quarter of 2002, down from the third quarter EBT for 2001 of $203 million (or 56%). The reduction in third quarter 2002 results primarily from reduced contributions (after associated interest costs) from Eletropaulo and EDC because of the factors discussed above.
Growth Distribution
($ in millions) 3Q 3Q Variance
2002 2001
Segment revenues $ 308 $ 317 $ (9)
% of total revenues 14% 17% (3)%
Operating margin $ 48 $ 49 $ (1)
% of segment revenues 16% 15% 1%
EBT $ -- $ (2) $ 2
% of total EBT --% --% --%
Our Growth Distribution segment, serving over 5 million customers, consists of electricity distribution companies that are generally located in developing countries or regions where the demand for electricity is expected to grow at a rate higher than in more developed regions. For the third quarter of 2002, revenues were $308 million and represented 14% of total revenues for the quarter. The Caribbean represents the most significant contributor representing 45% of growth distribution revenues, while South America represents 29% and Europe and Africa contributing the remaining 26% for the quarter. Growth Distribution revenues increased 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, Kievoblenergo and Rivnooblenergo in Ukraine Ukraine (y  `krān, ykrān`), Ukr. Ukraina, republic (2005 est. pop. as well as at
Sonel in Cameroon Cameroon, countryCameroon (kăm'ər n`), Fr. Cameroun, officially Republic of Cameroon, republic (2005 est. pop. . These increases were offset by significant reductions
in Argentina because of the devaluation of the Argentine Peso The peso (originally established as the nuevo peso argentino or peso convertible) is the currency of Argentina. Its ISO 4217 code is ARS, and the symbol used locally for it is $ (to avoid confusion, Argentines frequently use US$, ,
reductions at Sul because of the devaluation during the quarter of the
Brazilian Real The real (IPA: [xe'aw] or [ʁe'aɫ], symbol: R$, 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. , reductions in revenues at our 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. distribution
businesses and the change to reflect Cesco in India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. as an equity
affiliate in the third quarter of 2001.The operating margin was $48 million or 16% of revenues as compared with $49 million and 15% of revenues for the third quarter of 2001. Margins improved at Sul in Brazil, Sonel in Cameroon, Telasi in 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. , Kievoblenergo and Rivnooblenergo in the Ukraine and Ede Este in the Dominican Republic. Despite the reductions in revenue and operating margin arising from the devaluation of the Argentine Peso during 2002, the margin percentages in the Argentine Argentine having some relationship with the country Argentina. Argentine tick margaropuswinthemi. Argentine tortoise geochelonechilensis. distribution businesses improved slightly as compared to the third quarter of 2001. As a result, Growth Distribution was break even for the third quarter of 2002, a slight increase from EBT of $(2) million in the third quarter of 2001.
THE AES CORPORATION --- Supplemental Data
-------2001------- -----2002----
1st 2nd 3rd 4th Year 1st 2nd 3rd
Qtr Qtr Qtr Qtr Qtr Qtr Qtr
GEOGRAPHIC - % of Total
North America
Revenues (5) 26% 26% 32% 24% 27% 22% 22% 27%
Income before Taxes (1) 40% 31% 56% 34% 40% 34% 37% 71%
Caribbean (2)
Revenues (5) 26% 25% 24% 20% 24% 18% 17% 17%
Income before Taxes (1) 17% 29% 14% 30% 22% 13% 9% 6%
South America
Revenues (5) 20% 24% 21% 25% 22% 34% 37% 32%
Income before Taxes (1) 34% 36% 21% 24% 29% 26% 26% 6%
Europe/Africa
Revenues (5) 19% 17% 20% 24% 20% 21% 18% 18%
Income before Taxes (1) 5% (2)% 2% 6% 3% 16% 14% 6%
Asia
Revenues (5) 9% 8% 3% 7% 7% 5% 6% 6%
Income before Taxes (1) 4% 6% 7% 6% 6% 11% 14% 11%
SEGMENTS - % of Total
Contract Generation
Revenues (5) 33% 33% 32% 32% 32% 29% 28% 29%
Operating Margin (3) 39% 37% 32% 49% 40% 39% 43% 41%
Income before Taxes (1) 35% 22% 21% 64% 34% 45% 45% 55%
Competitive Supply
Revenues (5) 27% 23% 28% 24% 26% 21% 19% 20%
Operating Margin (3) 28% 19% 26% 16% 22% 15% 16% 17%
Income before Taxes (1) 17% 4% 23% - 12% 10% 13% 11%
Large Utilities
Revenues (5) 20% 23% 23% 19% 21% 34% 38% 37%
Operating Margin (3) 28% 35% 32% 20% 28% 34% 33% 34%
Income before Taxes (1) 48% 71% 56% 12% 49% 34% 37% 34%
Growth Distribution Businesses
Revenues (5) 20% 21% 17% 25% 21% 16% 15% 14%
Operating Margin (3) 5% 9% 10% 15% 10% 12% 8% 8%
Income before Taxes (1) - 3% - 24% 5% 11% 5% -
FINANCIAL HIGHLIGHTS - ($ in millions, except Total Assets in
billions)
---------------2001------------
1st 2nd 3rd 4th Year
Qtr Qtr Qtr Qtr
Revenues(5) $2,084 $1,877 $1,845 $1,950 $7,756
---------2002-------
1st 2nd 3rd
Qtr Qtr Qtr
Revenues(5) $2,248 $2,272 $2,138
-------2001------- -----2002----
1st 2nd 3rd 4th Year 1st 2nd 3rd
Qtr Qtr Qtr Qtr Qtr Qtr Qtr
Gross Margin Percentage 29% 25% 26% 33% 28% 31% 26% 28%
-------2001-------
1st 2nd 3rd 4th Year
Qtr Qtr Qtr Qtr
Income before Taxes (1) $479 $421 $359 $323 $1,582
-----2002----
1st 2nd 3rd
Qtr Qtr Qtr
Income before Taxes (1) $392 $345 $257
-------2001------- -----2002----
1st 2nd 3rd 4th Year 1st 2nd 3rd
Qtr Qtr Qtr Qtr Qtr Qtr Qtr
Net Income Excluding
Extraordinary and
Other Items (4) $225 $181 $151 $128 $685 $176 $142 $92
Total Assets
(billions) $36 $36 $36 $37 $37 $40 $39 $37
Deprec./Amort. $181 $186 $198 $196 $761 $200 $202 $198
(1) Income before taxes excludes the Corporate and Business
Development segment. The following items are included in the Corporate
and Business Development segment: corporate interest, other corporate
costs, business development expenses, Brazilian affiliates foreign
currency effects, Argentine affiliates foreign currency effects,
Venezuelan affiliates foreign currency effects, effects of FAS No.
133, nonrecurring items, discontinued operations and cumulative effect
of accounting change.
(2) Includes Venezuela and Colombia.
(3) Operating Margin is revenues reduced by cost of sales,
depreciation and amortization and other operating expenses.
(4) Net income excludes Brazilian affiliates foreign currency effects,
Argentine affiliates foreign currency effects, Venezuelan affiliates
foreign currency effects, effects of FAS No. 133, nonrecurring items,
discontinued operations and cumulative effect of accounting change.
(5) Revenues and amounts calculated using revenues for the second
quarter of 2002 exclude the effect of the provision related to the
Brazilian regulatory decision recorded by AES Sul.
THE AES CORPORATION
CONSOLIDATED BALANCE SHEETS
September 30, 2002 AND December 31, 2001
($ in millions) September 30, 2002 December 31, 2001
Assets:
Current assets:
Cash and cash
equivalents, including
restricted cash of
$371 and $357,
respectively $1,346 $1,279
Short term investments 305 215
Accounts receivable, net
of reserves of $352 and $240,
respectively 1,292 1,313
Inventory 503 562
Receivable from affiliates 10 10
Deferred income taxes 338 244
Prepaid expenses and
other assets 948 602
Current assets of
discontinued operations 300 467
Total current assets 5,042 4,692
Property, Plant and Equipment:
Land 697 567
Electric generation
and distribution assets 21,624 20,173
Accumulated depreciation (4,102) (3,177)
Construction in progress 4,683 4,412
Property, plant and
equipment, net 22,902 21,975
Other assets:
Deferred financing costs, net 416 437
Project development costs 68 66
Investment in and advances
to affiliates 1,092 3,100
Debt service reserves and
other deposits 378 472
Goodwill, net 2,040 2,408
Long-term assets of
discontinued operations 2,080 2,752
Other assets 2,548 910
Total other assets 8,622 10,145
Total Assets $36,566 $36,812
Liabilities & Stockholders' Equity
Current liabilities:
Accounts payable $1,085 $736
Accrued interest 443 281
Accrued and other liabilities 1,159 799
Current liabilities of
discontinued operations 553 642
Recourse debt-current portion 1,544 488
Non-recourse debt-current
portion 3,400 1,982
Total current liabilities 8,184 4,928
Long-term liabilities
Recourse debt 4,180 4,913
Non-recourse debt 14,027 13,789
Deferred income taxes 1,650 1,695
Long-term liabilities of
discontinued operations 1,252 1,413
Other long-term liabilities 2,978 2,027
Total long-term liabilities 24,087 23,837
Minority interest, including
discontinued operations
of $41 and $124, respectively 904 1,530
Company obligated convertible
mandatorily redeemable preferred
securities of subsidiary trusts
holding solely junior
subordinated debentures of AES 978 978
Stockholders' equity:
Common stock 5 5
Additional paid-in capital 5,268 5,225
Retained earnings 2,067 2,809
Accumulated other
comprehensive loss (4,927) (2,500)
Total stockholders' equity 2,413 5,539
Total Liabilities and
Stockholders' Equity $36,566 $36,812
THE AES CORPORATION
CAPITAL RESOURCES AND OTHER BALANCE SHEET DATA
($ in billions)
September 30, December 31,
Capitalization: 2002 2001
Recourse debt $5.72 $5.40
Non-recourse debt 17.43 15.77
Total debt 23.15 21.17
Preferred Securities 0.98 0.98
Minority Interest 0.90 1.53
Stockholders' equity 2.41 5.54
Total capitalization $27.44 $29.22
Selected Balance Sheet Data by Geographic Region:
Property, Plant Total Non-recourse
September 30, 2002 & Equipment Assets Debt
North America 29% 22% 25%
Caribbean 22% 18% 18%
South America 18% 25% 32%
Europe/Africa 23% 20% 18%
Asia 8% 7% 7%
Discontinued operations - 6% -
Corporate - 2% -
December 31, 2001
North America 29% 21% 28%
Caribbean 22% 18% 20%
South America 20% 27% 28%
Europe/Africa 23% 18% 19%
Asia 6% 6% 5%
Discontinued operations - 9% -
Corporate - 1% -
Selected Balance Sheet Data by Line of Business:
Property, Plant Total Non-recourse
September 30, 2002 & Equipment Assets Debt
Contract Generation 37% 35% 38%
Competitive Supply 33% 25% 23%
Large Utilities 24% 25% 32%
Growth Distribution Businesses 6% 7% 7%
Discontinued operations - 6% -
Corporate - 2% -
December 31, 2001
Contract Generation 37% 33% 40%
Competitive Supply 34% 25% 25%
Large Utilities 19% 20% 26%
Growth Distribution Businesses 10% 12% 9%
Discontinued operations - 9% -
Corporate - 1% -
The AES Corporation
Historical Parent Operating Cash Flow and Interest Coverage
Information Parent Operating Cash Flow reflects cash payments to the
holding company (the "Parent Company") from its subsidiary operating
businesses (consisting of dividends, consulting and management fees,
tax sharing payments and interest income), less Parent operating
expenses. Parent Operating Cash Flow is measured after payment of
principal and interest on non-recourse debt as well as maintenance
capital expenditures at those businesses. As a result, it represents
the cash flow that is available to service the Parent Company's
liquidity needs, including debt service.
For more detailed information regarding Parent Operating Cash
Flow, see the notes below.
Parent Only Data 12 Months Ended
(Last Four Quarters): September September
30, 30,
(actual $ in millions) 1998 1999 2000 2001 2002 2001
Parent Operating
Cash Flow (1) $360 $403 $871 $1,163 $1,236 $1,160
Parent Interest
Charges (2) $118 $164 $216 $391 $471 $338
Interest Coverage
Ratio (3) 3.05x 2.46x 4.03x 2.97x 2.62x 3.43x
Parent Operating
Cash Flow (1) 360 403 871 1,163 1,236 1,160
less: Development
Costs and
Corporate Taxes (74) (48) (103) (112) (56) (115)
less: Total Interest
Costs (including
SELLs & Trust
Preferred) (150) (198) (415) (563) (545) (433)
Parent Free
Cash Flow (4) $136 $157 $353 $488 $635 $612
Parent Operating Cash Flow by Region:
North America 48% 60% 39% 54% 65% 43%
Caribbean 6% 7% 29% 17% 9% 22%
Asia 1% 6% 4% 8% 12% 6%
South America 25% 8% 17% 12% 4% 20%
Europe 20% 19% 11% 9% 10% 9%
Parent Operating Cash Flow by Line of Business
Contract Generation 67% 67% 44% 39% 59% 36%
Large Utilities 14% 3% 39% 31% 23% 39%
Competitive Supply 13% 24% 12% 28% 15% 22%
Growth Distribution
Businesses 6% 6% 5% 2% 3% 3%
(Quarterly):
(actual $ in millions) Q4 Q1 Q2 Q3 Q3
2001 2002 2002 2002 2001
Parent Operating Cash Flow (1) $390 $331 $263 $252 $335
Parent Interest Charges (2) $120 $116 $105 $130 $112
Interest Coverage Ratio (3) 3.25x 2.85x 2.50x 1.94x 2.99x
Parent Operating Cash Flow (1) 390 331 263 252 335
less: Development Costs and
Corporate Taxes (24) (14) (11) (7) (25)
less: Total Interest Costs
(including SELLs & Trust
Preferred) (115) (136) (140) (154) (112)
Parent Free Cash Flow (4) $251 $181 $112 $91 $198
(Last Four Quarters):
(actual $ in millions) December March June September September
31, 31, 30, 30, 30,
2001 2002 2002 2002 2001
Parent Operating
Cash Flow (1) $1,163 $1,314 $1,319 $1,236 $1,160
Parent Interest
Charges (2) $391 $428 $453 $471 $338
Interest Coverage
Ratio (3) 2.97x 3.07x 2.91x 2.62x 3.43x
Note 1:
(1) Our Parent Operating Cash Flow, formerly titled "Parent EBITDA",
definition may differ from that, or similarly titled measures, used by
other companies. Parent Operating Cash Flow is not a substitute for
cash flows from operating activities as defined by generally accepted
accounting principles, or as an indicator of operating performance or
as a measure of liquidity. Parent Operating Cash Flow includes the
following amounts (determined without duplication) received in cash by
the Parent Company from operating subsidiaries and affiliates less
Parent operating expenses:
(A) Dividends.
(B) Consulting and management fees.
(C) Tax sharing payments.
(D) Interest and other distributions paid during the period with
respect to cash and other temporary cash investments.
Parent Operating Cash Flow does not include the following cash
payments made to the Parent Company by its subsidiaries and
affiliates:
(A) Returns of invested capital.
(B) Repayments of debt principal.
(C) Payments released from debt service reserve accounts upon the
issuance of letters of credit for the benefit of subsidiaries or
affiliates.
(2) Parent Interest Charges include interest payments both expensed
and capitalized. It excludes distributions paid for trust preferred
securities. This definition may differ from that, or similarly titled
measures, used by other companies.
(3) Parent Interest Coverage Ratio is defined as the ratio of Parent
Operating Cash Flow for such period to Parent Interest Charges for
such period.
(4) Parent Free Cash Flow is defined as Parent Operating Cash Flow
less development costs, taxes, and Total Interest costs (including
interest on SELLs and trust preferred securities dividends).
The AES Corporation
Forecasted Parent Operating Cash Flow and Liquidity 2002-2003
In the tables below, historical (actual) information is denoted
with an "A" next to the year and forecasted information is denoted
with an "F" next to the year.
Parent Only Data
($ in millions) Q1 Q2 Q3 Q4 YE
2002 A 2002 A 2002 A 2002 F 2002 F
Parent Operating
Cash Flow (1) $331 $263 $252 $224 $1,070
Parent Interest
Charges (2) $116 $105 $130 $107 $458
Interest Coverage
Ratio (3) 2.85x 2.50x 1.94x 2.09x 2.34x
Parent Operating Cash Flow by Region:
North America 58% 46% 66% 65% 59%
Caribbean 4% 20% 2% 3% 7%
Asia 13% 13% 22% 21% 17%
Europe 10% 15% 8% 8% 10%
South America 15% 6% 2% 3% 7%
Parent Operating Cash Flow by Line of Business
Contract Generation 54% 61% 54% 73% 60%
Large Utilities 31% 34% 30% 15% 28%
Competitive Supply 14% 4% 15% 9% 11%
Growth Distribution 1% 1% 1% 3% 1%
Parent Sources & Uses
Q1 Q2 Q3 Q4 YE
($ in millions) 2002 A 2002 A 2002 A 2002 F 2002 F
Sources
Distributions from
Subsidiaries $340 $269 $268 $246 $1,123
less: Corporate Overhead (9) (6) (16) (22) (53)
Parent Operating
Cash Flow (1) 331 263 252 224 1,070
less: Development
Costs and
Corporate Taxes (14) (11) (7) (12) (44)
less: Total Interest
Costs (including
SELLs & Trust Preferred) (136) (140) (154) (134) (564)
Parent Free Cash Flow (4) 181 112 91 78 462
Agreed Asset Sales - - 251 - 251
Additional Asset Sales - - - - -
Project Financing Proceeds - 239 - - 239
Bank Loan Renewals
(net of transaction
costs) (5) - - - 1,570 1,570
Bond Exchange (5) - - - 263 263
Beginning Liquidity 565 285 359 395 565
Total Sources $746 $636 $701 $2,306 $3,350
Uses
Bank Loan Repayments 63 $63 $225 $- $351
Bank Loan Renewals - - - 1,620 1,620
Bond Exchange (5) - - - 263 263
Bond Repayments (5) - - - 188 188
Committed Investments 398 214 81 77 770
Ending Liquidity 285 359 395 158 158
Total Uses $746 $636 $701 $2,306 $3,350
Note 2:
(1) Please see Note 1 for definition.
(2) Please see Note 1 for definition.
(3) Please see Note 1 for definition.
(4) Please see Note 1 for definition.
(5) The forecast includes the following refinancing transaction:
(A) "Bank Loan Renewals (net of transaction costs)" includes
the following: $850 million Variable rate revolving bank loan
due 2003, $425 million Term loan due 2003, $262.5 million EDC
SELLs due 2003 , (pound)52.2 million letter of credit due
2004.
(B) "Bond Exchange" includes $112.5 million of $300 million
8.75% Senior notes due December 2002, and $150 million of $200
million Remarketable or Redeemable Securities (ROARS)
remarketable in June 2003. These calculations assume a 75%
participation rate for the bond exchange and that the December
2002 tendered securities are exchanged for 50% cash and 50%
new secured notes, while the ROARS tendered securities are
exchanged 100% for the new secured notes.
(C) "Bond Repayment" includes $187.5 million of 8.75% Senior
notes due December 2002 repaid ($112.5 million in November
2002, $75 million at maturity in December 2002).
"Certain statements regarding AES's (""the Company's"") business operations may constitute "forward looking statements" as defined by the Securities and Exchange Commission. Such statements are not historical facts, but are predictions about the future which inherently involve risks and uncertainties, which could cause our actual results to differ from those contained in the forward looking statement. We urge investors to read our descriptions and discussions of these risks that are contained under the section "Risk Factors" in the Company's Annual Report/Form 10K for the year ended December December: see month. 31, 2001." |
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