Aquila Net Loss Narrowed to $1.13 Per Share in 2004 from Net Loss of $1.73 Per Share in 2003; Conference Call and Webcast Are Today at 11:00 a.m. Eastern.KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo. -- Aquila Aquila, in the Bible Aquila (ăk`wĭlə, əkwĭl`ə), in the New Testament, Christian of Jewish origin from Pontus who lived at Rome. He and his wife, Prisca or Priscilla, were friendly to Paul. , Inc. (NYSE NYSE See: New York Stock Exchange : ILA ILA abbr. insulinlike activity ) today reported a narrower 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. loss of $1.13 per share for the year ended December December: see month. 31, 2004, or a net loss of $292.5 million, compared to a loss of $1.73 per fully diluted share, or net loss of $336.4 million, in 2003. Sales were $1.71 billion in 2004 versus $1.67 billion in 2003. Per-share results for the 2004 year and fourth quarter reflect the issuance of 46.0 million common shares and 13.8 million mandatorily convertible securities in late August 2004. "While we strengthened our credit profile, improved cash flow, increased operational efficiency and successfully completed several rate cases during 2004, we are still not satisfied with the progress we have made on mitigating mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. our utility earnings volatility created by weather and fuel costs," said Richard C. Green, chairman and chief executive officer. "In 2005, we will continue to focus on providing safe and reliable service to our customers and to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. earnings
volatility factors, but we will also initiate a new repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf
Laparoscopic surgery. plan
to further enhance shareholder value. I look forward to discussing the
details of that plan a week from today in a conference call scheduled
for March 14."Green said highlights from the past year included: --Eliminating more than $550 million of financial liabilities by terminating four 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. gas supply contracts; --Raising more than $980 million by completing the sale of independent power plants and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. utility businesses, after repaying related debt and transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). ; --Raising $446.6 million from the issuance of common stock and mandatorily convertible securities; --Completing two new five-year unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. financings--a $110 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and a $220 million term loan facility--and a new six-month revolving credit facility secured by accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying ; --Receiving rate increases totaling $55.3 million in Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. ,
Colorado and Nebraska;--Exiting the Aries tolling agreement and reaching an agreement, closed in February 2005, to exit the Batesville tolling agreement; and --Early retirement of the company's $430 million secured loan. Fourth Quarter Results For the fourth quarter of 2004, the company had a fully diluted loss of $.21 per share, or net loss of $81.0 million, compared to a loss of $.18 per fully diluted share, or net loss of $34.0 million, a year earlier. Sales for the 2004 quarter were $500.1 million, compared to $461.8 million in the same period the prior year. The 2004 fourth quarter results included $55.9 million of additional losses stemming from the termination of a fourth long-term gas supply contract; impairments of $10.6 million on gas turbines and $8.9 million for the Red Lake gas storage development project; unfavorable weather for Aquila's natural gas utilities; and continued pressure from costs for fuel and purchased power in the Missouri electric operations. 2004 Net Loss on Sale of Assets and Other Charges Aquila recorded a net pretax loss pretax loss A loss reported before tax benefits are considered. due to the sale of assets and to other charges of $188.3 million in 2004, which resulted primarily from the termination of four long-term natural gas supply contracts and exit from the Aries power project and related tolling agreement. In 2003, Aquila had a net pretax loss due to the sale of assets and to other charges of $194.7 million, primarily due to the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of independent power projects and the termination of a 20-year tolling contract. Data for both periods is shown below:
Year Ended
December 31,
-------------------
In millions 2004 2003
----------------------------------------------------------------------
Domestic Utilities $-- $(1.3)
Merchant Services:
Long-term gas contract terminations 156.2 --
Aries power project and tolling agreement 46.6 --
Acadia tolling agreement -- 105.5
Red Lake gas storage project 8.9 --
Independent power plants (6.1) 87.9
United Kingdom gas development project (5.0) --
BAF Energy distribution (9.1) --
Anticipated Enron settlement (6.0) --
Turbine contracts -- (5.1)
Other -- .8
----------------------------------------------------------------------
Total Merchant Services 185.5 189.1
----------------------------------------------------------------------
Corporate and Other:
Turbines impairment 10.6 --
Midlands Electricity (3.3) 4.0
Australia -- 1.8
Everest target-based put rights (4.5) --
Other -- 1.1
----------------------------------------------------------------------
Total Corporate and Other 2.8 6.9
----------------------------------------------------------------------
Total net loss on sale of assets and other charges $188.3 $194.7
======================================================================
Domestic Utilities Domestic Utilities reported earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) of $159.1 million in 2004, compared to $175.1 million in 2003. Gross profit of $680.8 million was $3.8 million lower than gross profit of $684.6 million in 2003. Operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. of $525.5 million increased $14.6 million from operating expense of $510.9 million in 2003 due to higher costs for outside consulting, materials, labor and other compensation costs. Gross profit from electric operations increased by $8.4 million compared to the prior year, reflecting $36.4 million in additional revenues and gross profit as a result of electric rate increases in Missouri and Colorado. The Missouri increase of $37.5 million per year went into effect in April 2004, and the Colorado increase of $8.2 million per year became effective in September 2004. An increase in electric customers produced $5.6 million of additional margin. Those increases were partially offset by costs for fuel and purchased power that were $25.7 million higher than in 2003. Unfavorable weather also decreased gross profit by $6.1 million. In addition, 2003 cost of sales included $2.3 million of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. adjustments resulting from the settlement of purchased power pricing disputes that did not recur in 2004. Gross profit from regulated gas operations declined by $7.7 million compared to 2003. Margins decreased by $11.4 million due to unfavorable weather and lower usage per customer, partially offset by $6.6 million in rate increases in Nebraska and Missouri. The Nebraska increase of $6.2 million per year was approved in January 2004 but had been collected on an interim basis since October 2003. The Missouri increase of $3.4 million per year became effective in May 2004 for the Missouri Public Service territory and in July 2004 for the St. Joseph Light & Power territory. Aquila currently has two rate requests pending in Kansas. In June 2004, the company filed for a rate increase totaling $19.2 million, later revised to $16.4 million, for its electric territories in Kansas in order to recover infrastructure improvements and increased maintenance and operating costs operating costs npl → gastos mpl operacionales . In January 2005, the Kansas Corporation Commission The Kansas Corporation Commission is a Kansas government agency that regulates public utilities, common carriers, oil and gas production, telecommunications companies, and motor carriers. ordered that the company's rates be increased $7.4 million. Aquila has since filed for reconsideration re·con·sid·er v. re·con·sid·ered, re·con·sid·er·ing, re·con·sid·ers v.tr. 1. To consider again, especially with intent to alter or modify a previous decision. 2. of certain issues included in the Commission's order. In November 2004, Aquila filed a request for a $6.2 million natural gas rate increase in Kansas to recover gas system improvements as well as increased maintenance and operating costs. If approved, the new gas rates would go into effect by early fall 2005. Merchant Services Merchant services is the name given in the United States to a broad category of financial services intended for use by businesses. In its most specific use, it usually refers to the service that enables a business to accept a transaction payment by use of the customer's credit or Merchant Services recorded a loss before interest and taxes of $438.7 million for 2004, compared to a loss of $415.5 million for 2003. Gross margin loss was $210.0 million in 2004 compared to $157.3 million in 2003. This year's margin loss is primarily related to the following factors: --Approximately $22.6 million of non-cash losses related to the discounting of Aquila's remaining trading portfolio; --Margin losses of $94.2 million related to the termination of long-term gas supply contracts; --Margin losses of $36.9 million related to fixed capacity payments that 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: Aquila to generate power at merchant power plants owned by others but earned minimal revenue because of current conditions in the generation market; and --Margin losses of $56.3 million primarily related to costs to manage the company's remaining natural gas positions associated with the Onondaga swap derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. sold in connection with the sale of Aquila's independent power plants, and mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. losses and unfavorable settlements related to two highly customized alternative risk contracts. Operating expense of $32.2 million decreased $61.8 million in 2004 from $94.0 million in 2003. This was primarily due to expenses accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. in 2003 of $26.5 million for the January 2004 settlement with the Commodity Futures Trading Commission The Commodity Futures Trading Commission (CFTC), the federal regulatory agency for futures trading, was established by the Commodity Futures Trading Commission Act of 1974 (88 Stat. 1389; 7 U.S.C.A. 4a), approved October 23, 1974. and due to lower labor and other costs related to continued reductions in staff as part of the wind-down of Merchant Services operations. Equity in earnings of investments of $1.9 million decreased $51.8 million compared to $53.7 million in 2003, mainly due to the sale of Aquila's independent power plant investments in the first quarter of 2004. Restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $.7 million decreased $24.0 million in 2004 compared to $24.7 million in 2003. This decrease stemmed stemmed adj. 1. Having the stems removed. 2. Provided with a stem or a specific type of stem. Often used in combination: stemmed goblets; long-stemmed roses. primarily from restructuring charges of $23.1 million during 2003 related to the termination of Aquila's remaining interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. associated with construction financing for two power plants. Depreciation and amortization expense of $17.4 million decreased $14.4 million in 2004 compared to $31.8 million in 2003. This was primarily due to elimination of the amortization of premiums associated with equity method investments in independent power plants, which resulted from the 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. of those investments in September 2003. Long-Term Gas Obligations In 2004, Aquila terminated four long-term natural gas supply contracts. As a result of these terminations, Aquila paid the counterparties Counterparties The parties on either side of an interest rate swap or a currency, equity or commodity swap, or to an options or futures position. and issuers of related surety bonds surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. a total of $712.9 million under the termination and other provisions of the gas supply agreements and termination agreements. For 2004, the company recorded a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge of $156.2 million, or $97.6 million after tax, related to the termination of the four contracts. In 2004, the realization of the price risk management assets and liabilities associated with the terminated long-term gas contracts, and the related commodity hedges that were terminated, resulted in non-cash mark-to-market losses of $40.3 million, primarily related to the discounting of the company's trading portfolio, $16.5 million for margin recorded on these contracts, and $7.1 million of net replacement gas payments under the contracts' termination provisions. Corporate and Other In 2004, Corporate and Other had a loss before interest and taxes of $24.5 million, compared to earnings before interest and taxes of $12.4 million in 2003. Gross profit of $26.0 million for Corporate and Other in 2004 increased by $3.4 million compared to $22.6 million in 2003. Sales of $38.3 million in 2004 increased by $6.1 million from $32.2 million in 2003. This was primarily due to an increase in the number of customers served by the Everest Connections subsidiary. Operating expense of $61.7 million decreased $25.0 million in 2004 compared to $86.7 million in 2003. This was attributable to a $22.4 million decrease in restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). fees, investigation fees and insurance. The sale of Aquila's investments in Australia in 2003 and in the United Kingdom in early 2004 reduced 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. by $12.5 million. These decreases were partially offset by an $8.8 million increase in the reserve to settle the appraisal rights Appraisal rights A right of shareholders in a merger to demand the payment of a fair price for their shares, as determined independently. shareholder lawsuit lawsuit: see procedure; tort. in 2004 and $4.9 million of additional costs related to the sale of international investments in 2004. Equity in earnings of investments of $.2 million decreased $15.7 million in 2004 compared to $15.9 million in 2003 due to the sale of Aquila's Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. investments in 2003. Other income of $11.0 million decreased $49.6 million compared to $60.6 million in 2003, mainly due to $42.1 million of foreign currency gains recognized in 2003 related to favorable movements in the Australian and New Zealand dollar Noun 1. New Zealand dollar - the basic unit of money in New Zealand dollar - the basic monetary unit in many countries; equal to 100 cents against the U.S. dollar. These gains in 2003 were partially offset by $8.7 million of prepayment penalties Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. and fees paid in association with the retirement of the secured term loan in 2004. Discontinued Operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. Aquila reports the results of its Canadian utility businesses (sold in May 2004) and the two consolidated independent power plants (sold in March 2004) as discontinued operations. Total income in 2004 from discontinued operations, net of tax, was $56.7 million, or $.22 per fully diluted share, compared to $19.6 million or $.10 per share in 2003. The 2003 results included a net loss on sale of assets resulting from a $47.5 million impairment charge to write down the two consolidated independent power plants to their estimated fair value less selling costs. Other income increased $18.7 million in 2004 compared to the prior year, primarily due to costs incurred in 2003. Those costs included an $18.5 million charge related to a currency put option to protect Aquila from unfavorable currency movements, and $3.2 million of foreign currency losses related to U.S. dollar-denominated debt issued by Canadian subsidiaries. Discontinued operations had income tax expense of $54.4 million in 2004, primarily due to a gain on the sale of Aquila's Canadian utility businesses. Income tax expense was only $.9 million in 2003. Income Tax Benefit Aquila's income tax benefit for 2004 increased by $68.2 million compared to the prior year. The increase was primarily due to increased pretax losses, a decrease in net valuation allowances provided on capital losses and the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of non-deductible fines and penalties in 2003. Liquidity The most significant factor affecting Aquila's working capital is the purchase of natural gas for the company's gas utility customers. Aquila could experience significant working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. during peak winter heating months due to: --Higher natural gas consumption; --Higher natural gas prices; and --The current requirement to prepay pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay ment n. certain gas commodity suppliers
and pipeline transportation companies.The company anticipates using the combination of its $110 million, five-year unsecured revolving credit facility, its $150 million revolving credit facility secured by accounts receivable, and its cash on hand to meet its peak winter working capital requirements. Collateral As of December 31, 2004, Aquila had posted collateral in the form of cash or cash-collateralized letters of credit for the following: In millions December 31, 2004 ---------------------------------------------------------------------- Trading positions $125.3 Utility cash collateral requirements 164.6 Elwood tolling contract 37.9 Insurance and other 25.3 ---------------------------------------------------------------------- Total Funds on Deposit $353.1 ====================================================================== Collateral requirements for Aquila's remaining trading positions will fluctuate based on movements in commodity prices and its portfolio position, and that collateral is expected to be returned to the company as the trading positions settle in the future. Aquila is also required to post collateral to certain commodity and pipeline transportation vendors. The amount fluctuates based on natural gas prices and projected volumetric volumetric /vol·u·met·ric/ (vol?u-met´rik) pertaining to or accompanied by measurement in volumes. vol·u·met·ric adj. Of or relating to measurement by volume. deliveries. The return of this collateral depends on improvements in Aquila's credit profile. Aquila has been required to post collateral related to its Elwood tolling contract until the company either successfully restructures the contract or obtains investment-grade investment-grade Of, relating to, or being a bond suitable for purchase by institutions under the prudent man rule. Investment-grade is restricted to those bonds graded BBB and above by Standard & Poor's and graded Baa3 and above by Moody's. ratings from certain major rating agencies. Aquila will not be required to post any additional collateral related to this contract. Conference Call, Webcast and Additional Information Today at 11:00 a.m. Eastern Time, Aquila will host a conference call and webcast in which senior executives will review 2004 fourth quarter and full-year results. Participants will be Chief Executive Officer Richard C. Green, Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. Keith Stamm and Chief Financial Officer Rick Dobson dob·son n. See hellgrammite. [Probably from the name Dobson.] Noun 1. dobson - large brown aquatic larva of the dobsonfly; used as fishing bait hellgrammiate . To access the live webcast via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , go to Aquila's website at www.aquila.com and click "Investor Information" and then the link to the webcast. Listeners should allow at least five minutes to register and access the presentation. For those unable to listen to the live broadcast, online replays will be available for two weeks at the same location on the website ("Investor Information"), beginning approximately two hours after the presentation. Replay also will be available by telephone through March 14 at 800-405-2236 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. , and at 303-590-3000 for international callers. Callers need to enter the access code 11023110 when prompted. The company expects to file its 2004 annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. one week from today, on March 14. An investor guide containing the 2004 financial statements is being posted today on Aquila's website at www.aquila.com. Based in Kansas City, Missouri Kansas City is the largest city in the state of Missouri. It encompasses parts of Jackson, Clay, Cass, and Platte counties and is the anchor city of the Kansas City Metropolitan Area, the second largest in Missouri, which includes counties in both Missouri and Kansas. , Aquila operates electricity and natural gas distribution utilities serving customers in Colorado, Iowa, Kansas, Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). , Minnesota, Missouri and Nebraska. The company also owns and operates power generation assets. At December 31, 2004, Aquila had total assets of $4.8 billion. More information is available at www.aquila.com. "EBIT" Aquila uses the term "earnings before interest and taxes (EBIT)" as a performance measure for segment financial analysis. The term is not meant to be considered an alternative to net income or cash flows from operating activities, which are determined 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 generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . In addition, the term may not be comparable to similarly titled measures used by other companies.
AQUILA, INC.
Consolidated Statements of Income
---------------------------------
----------------------------------------------------------------------
3 Mos. Ended Year Ended
Dec. 31, Dec. 31,
----------------------------------------------------------------------
In millions, except per share amounts 2004 2003 2004 2003
----------------------------------------------------------------------
Sales $500.1 $461.8 $1,711.0 $1,674.0
Cost of sales 369.1 298.0 1,214.2 1,124.1
----------------------------------------------------------------------
Gross profit 131.0 163.8 496.8 549.9
----------------------------------------------------------------------
Operating expenses:
Operating expenses 119.1 145.7 483.5 549.6
Restructuring charges -- .5 .9 28.2
Net loss on asset sales and other
charges 52.1 3.0 188.3 194.7
Depreciation and amortization
expense 38.0 40.9 150.3 164.7
----------------------------------------------------------------------
Total operating expenses 209.2 190.1 823.0 937.2
----------------------------------------------------------------------
Other income (expense):
Equity in earnings of investments -- 8.6 2.1 69.6
Other income 5.2 21.4 20.0 89.7
----------------------------------------------------------------------
Total other income (expense) 5.2 30.0 22.1 159.3
----------------------------------------------------------------------
Earnings (loss) before interest and
taxes (73.0) 3.7 (304.1) (228.0)
----------------------------------------------------------------------
Total interest expense 59.0 66.2 258.4 273.1
----------------------------------------------------------------------
Loss from continuing operations
before income taxes (132.0) (62.5) (562.5) (501.1)
Income tax expense (benefit) (51.0) (19.8) (213.3) (145.1)
----------------------------------------------------------------------
Loss from continuing operations (81.0) (42.7) (349.2) (356.0)
Earnings (loss) from discontinued
operations, net of tax -- 8.7 56.7 19.6
----------------------------------------------------------------------
Net loss $(81.0)$(34.0) $(292.5) $(336.4)
======================================================================
Weighted average shares outstanding -
diluted (a) 352.6 195.2 251.4 194.8
----------------------------------------------------------------------
Loss per share from continuing
operations - diluted $(.21) $(.22) $(1.35) $(1.83)
Earnings (loss) per share from
discontinued operations - diluted -- .04 .22 .10
----------------------------------------------------------------------
Net loss per share - diluted $(.21) $(.18) $(1.13) $(1.73)
======================================================================
(a) Weighted average shares outstanding increased in 2004 over 2003 as
a result of the issuance of 46.0 million shares of common stock
and 13.8 million mandatorily convertible securities on August 24,
2004.
AQUILA, INC.
Earnings (Loss) Before Interest and Taxes (EBIT)
------------------------------------------------
3 Months Ended
Dec. 31,
----------------- Favorable
In millions 2004 2003 (Unfavorable)
----------------------------------------------------------------------
Domestic Utilities $35.4 $43.7 $(8.3)
Merchant Services (94.0) (25.5) (68.5)
Corporate and Other:
International Networks 1.9 (4.1) 6.0
Communications 1.0 (.6) 1.6
Corporate (17.3) (9.8) (7.5)
----------------------------------------------------------------------
Total Corporate and Other (14.4) (14.5) .1
----------------------------------------------------------------------
Total EBIT (73.0) 3.7 (76.7)
Interest expense 59.0 66.2 7.2
----------------------------------------------------------------------
Loss from continuing operations
before income taxes $(132.0) $(62.5) $(69.5)
======================================================================
Year Ended Dec. 31,
------------------------ Favorable
In millions 2004 2003 (Unfavorable)
----------------------------------------------------------------------
Domestic Utilities $159.1 $175.1 $(16.0)
Merchant Services (438.7) (415.5) (23.2)
Corporate and Other:
International Networks 2.5 12.9 (10.4)
Communications 3.7 (7.2) 10.9
Quanta Services -- .3 (.3)
Corporate (30.7) 6.4 (37.1)
----------------------------------------------------------------------
Total Corporate and Other (24.5) 12.4 (36.9)
----------------------------------------------------------------------
Total EBIT (304.1) (228.0) (76.1)
Interest expense 258.4 273.1 14.7
----------------------------------------------------------------------
Loss from continuing operations
before income taxes $(562.5) $(501.1) $(61.4)
======================================================================
AQUILA, INC.
Consolidated Balance Sheets
---------------------------
December 31,
--------------------
In millions 2004 2003
----------------------------------------------------------------------
ASSETS
Cash and cash equivalents $225.1 $601.7
Restricted cash 22.8 249.2
Accounts receivable, net 463.4 598.4
Price risk management assets 124.9 311.0
Other current assets 712.6 726.6
Current assets of discontinued operations -- 231.9
----------------------------------------------------------------------
Total current assets 1,548.8 2,718.8
----------------------------------------------------------------------
Property, plant and equipment, net 2,777.4 2,752.7
Investments in unconsolidated subsidiaries 1.5 312.9
Price risk management assets 136.1 492.6
Other assets 313.5 393.3
Non-current assets of discontinued operations -- 1,048.8
----------------------------------------------------------------------
Total Assets $4,777.3 $7,719.1
======================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current maturities of long-term debt $42.0 $414.8
Accounts payable 375.6 488.2
Price risk management liabilities 137.3 290.1
Other current liabilities 299.5 699.7
Current liabilities of discontinued operations -- 368.5
----------------------------------------------------------------------
Total current liabilities 854.4 2,261.3
----------------------------------------------------------------------
Long-term debt, net 2,329.9 2,291.2
Deferred income taxes and credits 148.0 376.2
Price risk management liabilities 102.3 383.5
Long-term gas contracts, net 32.9 586.3
Other liabilities 179.3 273.9
Non-current liabilities of discontinued operations -- 187.4
Common shareholders' equity 1,130.5 1,359.3
----------------------------------------------------------------------
Total Liabilities and Shareholders' Equity $4,777.3 $7,719.1
======================================================================
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