UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
|
ý |
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|
|
|
|
|
For the Quarterly Period Ended March 31, 2004 |
||
|
|
|
|
|
or |
||
|
|
|
|
|
o |
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
Commission file number 0-19281
THE AES CORPORATION
(Exact name of registrant as specified in its charter)
|
Delaware |
|
54-1163725 |
|
(State or Other
Jurisdiction of Incorporation or |
|
(I.R.S. Employer Identification No.) |
|
|
|
|
|
1001 North 19th Street, Arlington, Virginia |
|
22209 |
|
(Address of Principal Executive Offices) |
|
(Zip Code) |
(703) 522-1315
(Registrant’s Telephone Number, Including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act) Yes ý No o
The number of shares outstanding of Registrant’s Common Stock, par value $0.01 per share, at April 30, 2004, was 637,168,134.
THE AES CORPORATION
FIRST QUARTER 2004 FORM 10-Q
TABLE OF CONTENTS
|
PART I |
|
|
|
|
|
ITEM 1. INTERIM FINANCIAL STATEMENTS |
|
|
ITEM 2. MANAGEMENTS’ DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|
|
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CERTIFICATIONS |
|
3
THE AES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
|
|
|
Three Months Ended |
|
||||
|
|
|
March 31, 2004 |
|
March 31,
2003 |
|
||
|
|
|
(in millions) |
|
||||
|
Revenues |
|
|
|
|
|
||
|
Regulated |
|
$ |
1,146 |
|
$ |
966 |
|
|
Non-regulated |
|
1,111 |
|
945 |
|
||
|
Total revenues |
|
2,257 |
|
1,911 |
|
||
|
Cost of sales |
|
|
|
|
|
||
|
Regulated |
|
(889 |
) |
(751 |
) |
||
|
Non-regulated |
|
(688 |
) |
(586 |
) |
||
|
Total cost of sales |
|
(1,577 |
) |
(1,337 |
) |
||
|
Corporate and business development expenses |
|
(48 |
) |
(29 |
) |
||
|
Interest expense |
|
(493 |
) |
(500 |
) |
||
|
Interest income |
|
69 |
|
69 |
|
||
|
Other expense |
|
(25 |
) |
(27 |
) |
||
|
Other income |
|
11 |
|
20 |
|
||
|
Loss on sale of investments |
|
(1 |
) |
— |
|
||
|
Foreign currency transaction (losses) gains on net debt |
|
(8 |
) |
82 |
|
||
|
Equity in earnings of affiliates |
|
16 |
|
24 |
|
||
|
INCOME BEFORE INCOME TAXES AND MINORITY INTEREST |
|
201 |
|
213 |
|
||
|
Income tax expense |
|
64 |
|
51 |
|
||
|
Minority interest in net income of subsidiaries |
|
63 |
|
31 |
|
||
|
INCOME FROM CONTINUING OPERATIONS |
|
74 |
|
131 |
|
||
|
Loss from operations of discontinued businesses (net of income taxes of $2 and $(4), respectively) |
|
(26 |
) |
(36 |
) |
||
|
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE |
|
48 |
|
95 |
|
||
|
Cumulative effect of accounting change (net of income taxes of $0 and $1, respectively) |
|
— |
|
(2 |
) |
||
|
Net income |
|
$ |
48 |
|
$ |
93 |
|
|
BASIC EARNINGS PER SHARE: |
|
|
|
|
|
||
|
Income from continuing operations |
|
$ |
0.12 |
|
$ |
0.23 |
|
|
Discontinued operations |
|
(0.04 |
) |
(0.07 |
) |
||
|
Cumulative effect of accounting change |
|
— |
|
— |
|
||
|
BASIC EARNINGS PER SHARE |
|
$ |
0.08 |
|
$ |
0.16 |
|
|
DILUTED EARNINGS PER SHARE: |
|
|
|
|
|
||
|
Income from continuing operations |
|
$ |
0.12 |
|
$ |
0.23 |
|
|
Discontinued operations |
|
(0.04 |
) |
(0.06 |
) |
||
|
Cumulative effect of accounting change |
|
— |
|
— |
|
||
|
DILUTED EARNINGS PER SHARE |
|
$ |
0.08 |
|
$ |
0.17 |
|
(1) The quarterly information is presented based on discontinued operations classifications as of March 31, 2004. Results of operations for periods prior to the first quarter of 2004 for components that were either disposed of or held for sale and treated as discontinued operations have been reclassified into discontinued operations.
See Notes to Consolidated Financial Statements.
4
THE AES CORPORATION
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2004 AND DECEMBER 31, 2003
(Unaudited)
|
|
|
March 31, 2004 |
|
December 31, 2003 |
|
||
|
|
|
($ in millions) |
|
||||
|
ASSETS |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
1,120 |
|
$ |
1,737 |
|
|
Restricted cash |
|
725 |
|
288 |
|
||
|
Short-term investments |
|
201 |
|
189 |
|
||
|
Accounts receivable, net of reserves of $275 and $291, respectively |
|
1,204 |
|
1,211 |
|
||
|
Inventory |
|
357 |
|
376 |
|
||
|
Receivable from affiliates |
|
3 |
|
3 |
|
||
|
Deferred income taxes — current |
|
150 |
|
136 |
|
||
|
Prepaid expenses |
|
103 |
|
64 |
|
||
|
Other current assets |
|
695 |
|
677 |
|
||
|
Current assets of discontinued operations and businesses held for sale |
|
223 |
|
205 |
|
||
|
Total current assets |
|
4,781 |
|
4,886 |
|
||
|
Property, Plant and Equipment: |
|
|
|
|
|
||
|
Land |
|
739 |
|
733 |
|
||
|
Electric generation and distribution assets |
|
21,051 |
|
21,087 |
|
||
|
Accumulated depreciation and amortization |
|
(4,745 |
) |
(4,593 |
) |
||
|
Construction in progress |
|
1,389 |
|
1,278 |
|
||
|
Property, plant and equipment — net |
|
18,434 |
|
18,505 |
|
||
|
Other Assets: |
|
|
|
|
|
||
|
Deferred financing costs — net |
|
455 |
|
430 |
|
||
|
Investments in and advances to affiliates |
|
665 |
|
648 |
|
||
|
Debt service reserves and other deposits |
|
539 |
|
||||