SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): July 26, 2001
THE AES CORPORATION
(exact name of registrant as specified in its charter)
DELAWARE 0-19281 54-1163725
(State of Incorporation) (Commission File No.) (IRS Employer ID No.)
1001 North 19th Street, Suite 2000
Arlington, Virginia 22209
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code:
(703) 522-1315
NOT APPLICABLE
(Former Name or Former Address, if changed since last report)
Item 9. Regulation FD Disclosure
On July 26, 2001, The AES Corporation issued its press release for the
second quarter of 2001, which is presented below and incorporated herein by
reference.
FOR IMMEDIATE RELEASE
AES REPORTS EARNINGS OF $0.33 PER SHARE FOR THE QUARTER,
FROM RECURRING OPERATIONS
CONSISTENT PERFORMANCE FROM GLOBAL BUSINESSES LEADS TO
STRONG FINANCIAL RESULTS
ARLINGTON, VA, JULY 26, 2001 --The AES Corporation (NYSE: AES) announced today
that net income, before deducting the noncash foreign currency transaction
losses at Brazilian affiliates and the nonrecurring loss on the sale of Power
Direct, was $179 million for the quarter ended June 30, 2001, an increase of 13%
over the comparative results for the second quarter of 2000. As a result of the
pooling of interests transaction with IPALCO, the results of operations of AES
for the periods ended June 30, 2000 have been restated to include IPALCO.
Diluted earnings per share, excluding the noncash transaction losses and the
nonrecurring loss on sale, were $0.33 for the quarter. Net income, after all
charges, was $112 million for the quarter. Revenues for the quarter were $2.2
billion, an increase of 27% from the second quarter of 2000.
For the six months ended June 30, 2001, net income, excluding the noncash
transaction losses and nonrecurring items, was $405 million or $0.75 per fully
diluted share. Revenues increased 38% for the six months ended June 30, 2001 to
$4.8 million.
Barry Sharp, Chief Financial Officer, commented, " We exceeded our expectations
for the second quarter with tremendous performances from many of our businesses
around the world. In particular, we saw strong results from our newer
distribution businesses including EDC in Venezuela and Ipalco in Indianapolis
and from our generating facilities in Chile. We also were encouraged by year on
year improvements at several of our existing businesses including our generating
plants in the eastern and western U.S. and in Northern Ireland. Additionally, we
were pleased with the strengthening of results at AES NewEnergy, our retail
electricity provider that serves commercial and industrial customers in
competitive markets throughout the U.S. We are also encouraged by the progress
being made by the electricity consumers and the government in Brazil as everyone
there works together to solve the temporary issues arising from the current
rainfall shortage."
Dennis W. Bakke, President and Chief Executive Officer, stated, "We again had a
good quarter, with our diversified businesses reporting strong results of
operation, and we also made significant progress with some new businesses. In
the Middle East, we financed the complex AES Barka project in Oman and won the
bid for Ras Laffan in Qatar. We won bids for two distribution companies in
Ukraine, where our skills and experience with our existing 18 distribution
businesses around the world can make a difference. We made progress in
California with the refurbishment of Huntington Beach 3 and 4 and the partial
acquisition of assets from Thermo Ecotek, which also had businesses in two other
states in the US and a few in Germany and the Czech Republic. We have 20
projects in 9 different countries currently in construction, totaling
approximately 10,000 MW, with an aggregate investment of approximately $8
billion. We are excited about all of these projects. In addition, we continue to
expand our interest in liquefied natural gas projects, which often bring
substantial cost reductions, as well as significant environmental benefits from
efficient gas-fired plants. The people of AES continue to share among themselves
their knowledge of electric markets, fuels, technologies, financial markets and
regulatory frameworks for the purpose of serving the people of the world with
needed electricity while also being accountable to our shareholders."
Business development milestones in 2001 include the following:
o In July, a subsidiary of AES signed agreements to acquire a 56%
interest in SONEL, an integrated electricity utility in Cameroon.
o In July, a subsidiary of AES acquired a majority of the energy assets
of Thermo Ecotek Corporation.
o In June, AES signed a definitive agreement to sell the customers and
related assets of AES Power Direct.
o In June, a subsidiary of AES secured the financing for its $104
million, 163 MW combined cycle diesel-fired power plant in Sri Lanka.
o In June, AES announced that its AES-3C Maritza East 1 project in
Bulgaria signed two key contracts with NEK and Maritza East Mines.
o In May, AES was awarded the Ras Laffan 750 MW and 40 million imperial
gallons of water per day natural gas-fired, combined-cycle cogeneration
power and water desalination project in the State of Qatar.
o In May, AES announced that it received certification from the
California Energy Commission and is set to commence construction on the
refurbishment of two retired gas-fired units 3 & 4 at Huntington Beach,
California.
o In May, a subsidiary of AES signed a strategic alliance agreement with
COTEL, the largest local telephone carrier in Bolivia.
o In May, a subsidiary of AES secured the financing for its, $348.6
million, 427 MW Barka facility in Oman.
o In May AES announced that it won a bid for approximately $23.2 million
to purchase a 75% controlling interest in Rivenoblenergo, the
distribution company that serves the Rivno region, which is about 200
kms from Kiev, the capital city of Ukraine.
o In April, AES announced that it won a bid for approximately $45.9
million to purchase a 75% controlling interest in Kievoblenergo the
distribution company that serves the region that surrounds Kiev, the
capital city of Ukraine.
o In April, a subsidiary of AES signed agreements for the financing of
its $300 million, 450 MW combined cycle gas-fired Meghnaghat power
plant in Bangladesh.
o In April, a subsidiary of AES completed a $180 million financing for
its 360 MW gas-fired combined cycle facility Haripur in Bangladesh.
o In April, AES announced the completion of its acquisition of IPALCO in
Indiana.
o In March, a subsidiary of AES secured the financing for the 720 MW
gas-fired Granite Ridge project in New Hampshire.
o In March, a subsidiary of AES acquired from EniChem SpA an oil-fired
140MW cogeneration facility in the town of Ottana, which is in the
province of Nuoro, Sardinia, Italy.
o In February, a subsidiary of AES entered an agreement to purchase all
of the energy assets of Thermo Ecotek Corporation, a wholly owned
subsidiary of Thermo Electron Corporation of Waltham, Massachusetts for
$195 million.
o In January, AES announced the start of construction of the $300 million
AES Wolf Hollow power plant at a site in Granbury, Texas.
o In January, a subsidiary of AES acquired a majority interest in a 290MW
barge-mounted natural-gas-fired electric generating business in Lagos,
Nigeria.
o In January, AES Huntington Beach submitted a proposal to the California
Energy Commission to restart two retired gas-fired units that will add
an additional 450 megawatts of generation in the electricity-strapped
state of California.
o In January, AES announced the purchase of an additional 39% ownership
interest in Hidroelectrica Alicura, a 1000 MW hydro plant in Argentina.
o In January, AES announced that it had successfully completed its offer
to exchange all American Depositary Shares of Gener S.A. for AES common
stock.
AES is a leading global power company comprised of competitive generation,
distribution and retail supply businesses in Argentina, Australia, Bangladesh,
Brazil, Cameroon, Canada, Chile, China, Colombia, Czech. Republic, Dominican
Republic, El Salvador, Georgia, Germany, Hungary, India, Italy, Kazakhstan, the
Netherlands, Nigeria, Mexico, Oman, Pakistan, Panama, Sri Lanka, Ukraine, the
United Kingdom, the United States and Venezuela.
The company's generating assets include interests in one hundred and seventy
three facilities totaling over 59 gigawatts of capacity. AES's electricity
distribution network has over 920,000 km of conductor and associated rights of
way and sells over 126,000 gigawatt hours per year to over 18 million end-use
customers. In addition, through its various retail electricity supply
businesses, the company sells electricity to over 154,000 end-use customers.
AES is dedicated to providing electricity worldwide in a socially responsible
way.
This news release may include forward-looking statements. Actual events and
results may differ materially from those projected. Factors that could affect
actual results are discussed in AES's filings with the Securities and Exchange
Commission, and readers are encouraged to read those filings to learn more about
the risk factors associated with AES's businesses.
* * * * *
FOR MORE GENERAL INFORMATION VISIT OUR WEB SITE AT WWW.AESC.COM OR CONTACT
INVESTOR RELATIONS AT INVESTING@AESC.COM. THE LIST AES-PR-ANNOUNCE IS AN
AUTOMATED MAILING LIST AND CAN BE FOUND ON THE INVESTING PAGE OF OUR WEB SITE.
THOSE WHO SUBSCRIBE TO THIS LIST WILL RECEIVE UPDATES WHEN AES ISSUES A PRESS
RELEASE.
THE AES CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE PERIODS ENDED JUNE 30, 2001 AND 2000
----------------------------------------------------------------------------------------------------------
QUARTER QUARTER
ENDED ENDED
($ in millions, except per share amounts) 6/30/2001 6/30/2000
----------------------------------------------------------------------------------------------------------
REVENUES:
Sales and services $ 2,215 $ 1,751
OPERATING COSTS AND EXPENSES:
Cost of sales and services 1,754 1,358
Selling, general and administrative expenses 46 19
---------------------- ---------------------
TOTAL OPERATING COSTS AND EXPENSES 1,800 1,377
---------------------- ---------------------
OPERATING INCOME 415 374
OTHER INCOME AND (EXPENSE):
Interest expense, net (324) (261)
Other income 41 5
Equity in earnings of affiliates (before income tax) 99 99
Loss on sale of Power Direct (31) -
---------------------- ---------------------
INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 200 217
Income tax provision 61 60
Minority interest 27 17
---------------------- ---------------------
NET INCOME $ 112 $ 140
====================== =====================
DILUTED EARNINGS PER SHARE: $ 0.21 $ 0.28
====================== =====================
Diluted weighted average
shares outstanding (in millions) 538 498
====================== =====================
THE AES CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE PERIODS ENDED JUNE 30, 2001 AND 2000
------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
($ in millions, except per share amounts) 6/30/2001 6/30/2000
------------------------------------------------------------------------------------------------------------------------
REVENUES:
Sales and services $ 4,760 $ 3,447
OPERATING COSTS AND EXPENSES:
Cost of sales and services 3,675 2,578
Selling, general and administrative expenses 68 48
-------------- ----------------
TOTAL OPERATING COSTS AND EXPENSES 3,743 2,626
-------------- ----------------
OPERATING INCOME 1,017 821
OTHER INCOME AND (EXPENSE):
Interest expense, net (674) (525)
Other income 28 17
Equity in earnings of affiliates (before income tax) 149 217
Gain on sale of investment - 112
Loss on sale of Power Direct (31) -
Nonrecurring severance and transaction costs (94) -
-------------- ----------------
INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 395 642
Income tax provision 118 193
Minority interest 59 35
-------------- ----------------
INCOME BEFORE EXTRAORDINARY ITEM 218 414
Extraordinary item, net of tax -
Early extinguishment of debt - (7)
-------------- ----------------
NET INCOME $ 218 $ 407
============== ================
DILUTED EARNINGS PER SHARE:
Before extraordinary item $ 0.41 $ 0.85
Extraordinary item - (0.01)
-------------- ----------------
Total $ 0.41 $ 0.84
============== ================
Diluted weighted average shares outstanding (in millions) 538 502
============== ================
THE AES CORPORATION --- SUPPLEMENTAL SCHEDULE (1)
CONSOLIDATED SCHEDULE (Excluding Brazilian affiliates foreign currency effects,
Nonrecurring and Extraordinary items)(1)
FOR THE PERIODS ENDED JUNE 30, 2001 AND 2000
---------------------------------------------------------------------------------------------------------------------------------
QUARTER QUARTER
ENDED ENDED
($ in millions, except per share amounts) 6/30/2001 6/30/2000
---------------------------------------------------------------------------------------------------------------------------------
REVENUES:
Sales and services $ 2,215 $ 1,751
OPERATING COSTS AND EXPENSES:
Cost of sales and service 1,754 1,358
Selling, general and administrative expenses 46 19
--------------- --------------
TOTAL OPERATING COSTS AND EXPENSES 1,800 1,377
--------------- --------------
OPERATING INCOME 415 374
OTHER INCOME AND (EXPENSE), EXCLUDING BRAZILIAN AFFILIATES FOREIGN CURRENCY
EFFECTS, NONRECURRING AND EXTRAORDINARY ITEMS:
Interest expense, net (324) (261)
Other income 41 5
Equity in earnings of affiliates (before income tax) 171 124
--------------- --------------
INCOME BEFORE TAXES AND MINORITY INTEREST, EXCLUDING
BRAZILIAN AFFILIATES FOREIGN CURRENCY EFFECTS, NONRECURRING
AND EXTRAORDINARY ITEMS: 303 242
Income tax provision 97 67
Minority interest 27 17
--------------- --------------
NET INCOME, EXCLUDING BRAZILIAN AFFILIATES FOREIGN CURRENCY
EFFECTS, NONRECURRING ITEMS AND EXTRAORDINARY ITEM
$ 179 $ 158
=============== ==============
DILUTED EARNINGS PER SHARE, EXCLUDING BRAZILIAN AFFILIATES
FOREIGN CURRENCY EFFECTS, NONRECURRING AND EXTRAORDINARY ITEMS $ 0.33 $ 0.32
=============== ==============
Diluted weighted average
shares outstanding (in millions) 543 498
=============== ==============
(1) Basis of presentation - This schedule presents, on a proforma basis, the
results of operations of AES excluding the aggregate (both subsidiaries and
affiliates) Brazilian affiliates foreign currency losses of approximately $47
million after income tax, or $0.09 per share in 2001 and approximately $18
million after income tax, or $0.04 per share in 2000 and the loss on the sale of
Power Direct of $20 million after income tax, or $0.03 per share in 2001.
THE AES CORPORATION --- SUPPLEMENTAL SCHEDULE (1)
CONSOLIDATED SCHEDULE (Excluding Brazilian affiliates foreign currency effects,
Nonrecurring and Extraordinary items)(1)
FOR THE PERIODS ENDED JUNE 30, 2001 AND 2000
-------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
($ in millions, except per share amounts) 6/30/2001 6/30/2000
-------------------------------------------------------------------------------------------------------------------------
REVENUES:
Sales and services $ 4,760 $ 3,447
OPERATING COSTS AND EXPENSES:
Cost of sales and service 3,675 2,578
Selling, general and administrative expenses 68 48
----------- -----------
TOTAL OPERATING COSTS AND EXPENSES 3,743 2,626
----------- -----------
OPERATING INCOME 1,017 821
OTHER INCOME AND (EXPENSE), EXCLUDING BRAZILIAN AFFILIATES FOREIGN CURRENCY
EFFECTS, NONRECURRING AND EXTRAORDINARY ITEMS:
Interest expense, net (674) (525)
Other income 28 17
Equity in earnings of affiliates (before income tax) 311 223
----------- -----------
INCOME BEFORE TAXES AND MINORITY INTEREST, EXCLUDING
BRAZILIAN AFFILIATES FOREIGN CURRENCY EFFECTS, NONRECURRING
AND EXTRAORDINARY ITEMS: 682 536
Income tax provision 218 153
Minority interest 59 35
----------- -----------
NET INCOME, EXCLUDING BRAZILIAN AFFILIATES FOREIGN CURRENCY
EFFECTS, NONRECURRING ITEMS AND EXTRAORDINARY ITEM $ 405 $ 348
=========== ===========
DILUTED EARNINGS PER SHARE, EXCLUDING BRAZILIAN AFFILIATES
FOREIGN CURRENCY EFFECTS, NONRECURRING AND EXTRAORDINARY ITEMS $ 0.75 $ 0.72
=========== ===========
Diluted weighted average shares outstanding (in millions) 544 502
=========== ===========
(1) Basis of presentation - This schedule presents, on a proforma basis, the
results of operations of AES excluding the aggregate (both subsidiaries and
affiliates) Brazilian affiliates foreign currency losses of approximately $105
million after income tax, or $0.19 per share in 2001 and approximately $4
million after income tax, or $0.01 per share in 2000 and nonrecurring items,
including transaction and severance costs related to the IPALCO acquistion of
$61 million after income tax, or $0.12 per share in 2001, the loss on the sale
of Power Direct of $20 million after income tax, or $0.03 per share in 2001 and
a gain on the sale of an investment held by IPALCO of $77 million after income
tax, or $0.14 per share in 2000. This schedule also excludes the extraordinary
loss of approximately $7 million incurred during the first quarter of 2000.
The AES Corporation
Unaudited Supplemental Data
For the Quarter Ended Juune 30, 2001
-------------------------2000---------------------- ---2001---
1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR 1ST QTR 2ND QTR.
------- ------- ------- ------- ---- ------- --------
GEOGRAPHIC-% of Total
NORTH AMERICA
Revenues 45% 47% 45% 42% 45% 39% 37%
EBCIT (1) 37% 44% 43% 36% 42% 40% 25%
SOUTH/CENTRAL AMERICA
Revenues 24% 27% 33% 35% 30% 38% 42%
EBCIT 31% 38% 43% 53% 41% 51% 65%
EUROPE
Revenues 22% 17% 15% 15% 17% 14% 13%
EBCIT 24% 10% 7% 7% 11% 8% 5%
ASIA
Revenues 9% 9% 7% 8% 8% 9% 8%
EBCIT 8% 8% 6% 4% 6% 1% 5%
SEGMENTS-% of Total
GENERATION
Revenues 51% 48% 45% 44% 47% 48% 47%
Operating Margin (2) 70% 80% 67% 59% 68% 59% 53%
EBCIT 64% 65% 55% 38% 52% 43% 25%
DISTRIBUTION
Revenues 49% 52% 55% 56% 53% 52% 53%
Operating Margin 30% 20% 33% 41% 32% 41% 47%
EBCIT 36% 35% 45% 62% 48% 57% 75%
FINANCIAL HIGHLIGHTS-million $, except Total Assets in billion $
Revenues $1,696 $1,751 $1,995 $2,141 $7,583 $2,545 $2,215
EBCIT $397 $268 $364 $468 $1,497 $463 $403
Net Income Excluding
Extraordinary and Other
Items (3) $267 $140 $164 $225 $796 $226 $179
Total Assets (billions) $26 $31 $32 $33 $33 $36 $36
Deprec./Amort. $143 $163 $197 $201 $704 $209 $211
Parent EBITDA - LTM (4) $387 $501 $593 $871 $871 $965 $1,004
(1) EBCIT is net income excluding corporate interest, other corporate costs,
income taxes and nonrecurring items. Additionally, in 2001 Brazilian
affiliate foreign currency effects have been excluded.
(2) Operating Margin is revenues reduced by cost of sales, depreciation and
amortization and other operating expenses.
(3) In the first quarter of 2000 and the first and second quarter of 2001, Net
Income excludes extraordinary items, Brazilian affiliate foreign currency
effects and nonrecurring items.
(4) Parent EBITDA is cash flow earnings distributed to parent less parent
operating expenses.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE AES CORPORATION
DATE: July 27, 2001 by: /s/ William R. Luraschi
Vice President and Secretary