Highlights
-
Second quarter 2016 Diluted EPS of ($0.16) and Adjusted EPS of $0.17
-
Reaffirming 2016 guidance and 2017-2018 expectations
-
Prepaid an additional $181 million in Parent debt, bringing total
year-to-date prepayment to $306 million and refinanced $500 million in
near-term Parent debt
-
Announced the sale of Sul in Brazil for BRL 1,698 million (equivalent
to approximately $470 million) in proceeds to AES
-
Completed 2,414 MW of projects under construction
-
Total of 3,921 MW currently under construction and expected to come
on-line through 2019
-
Broke ground on the Colon project in Panama, including a 380 MW
CCGT plant and 180,000 m3 LNG regasification and
storage facility
ARLINGTON, Va.--(BUSINESS WIRE)--
The
AES Corporation (NYSE: AES) today reported Consolidated Net Cash
Provided by Operating Activities for the second quarter of 2016 of $723
million, an increase of $570 million, primarily driven by the collection
of overdue receivables at Maritza in Bulgaria, as well as favorable
working capital in Brazil, partially offset by lower margins. Second
quarter 2016 Proportional Free Cash Flow (a non-GAAP financial measure)
increased $355 million to $417 million, primarily due to the same
factors as Consolidated Net Cash Provided by Operating Activities.
Second quarter 2016 Diluted Earnings Per Share from Continuing
Operations (Diluted EPS) was ($0.16), a decrease of $0.27 from second
quarter 2015. Diluted EPS reflects the $0.25 impact from higher
impairment expenses related to certain generating units at DPL in the
United States, as well as the impact of lower margins. Adjusted Earnings
Per Share (Adjusted EPS, a non-GAAP financial measure) decreased $0.09
to $0.17, primarily due to lower margins. The decline in margins was due
to lower contributions from the Company's Strategic Business Units
(SBUs), primarily Brazil and Mexico, Central America and Caribbean
(MCAC), and the devaluation of foreign currencies. In Brazil, lower
margins reflect the impact of the liability reversal taken in the second
quarter of 2015, which benefited margins in that quarter. In MCAC, lower
margins were primarily driven by lower gas sales in the Dominican
Republic and lower availability.
"During the first half of this year we made significant progress on our
strategic and financial objectives. To focus our efforts on our most
important growth areas, we announced the sale of one of our distribution
companies, AES Sul, in Brazil for approximately $470 million. At the
same time, we continued to advance attractive platform expansion
projects offering long-term, U.S. Dollar-denominated contracts. To that
end, we brought on-line 2.4 GW of projects, primarily in the U.S., on
time and on budget, and broke ground on the Colon LNG regasification
terminal and gas-fired power plant in Panama," said Andrés
Gluski, AES President and Chief Executive Officer. "The combination
of completing the remaining 3.9 GW of projects still under construction
and our $150 million, three-year cost savings and revenue enhancement
initiative, will allow us to deliver our expected growth of at least 10%
in Proportional and Parent Free Cash Flow through 2018."
"Our year-to-date cash flow and earnings results keep us on track to
achieve our full year guidance," said Tom
O'Flynn, AES Executive Vice President and Chief Financial Officer.
"To strengthen our capital structure, we have prepaid a total of $306
million in Parent debt, exceeding our full year target for debt paydown
by 50% and refinanced $500 million of near-term Parent debt maturities.
As a result of these actions and our expected growth in free cash flow,
we expect to achieve strong BB credit stats by 2018."
|
|
|
Table 1: Key Financial Results
|
|
|
|
Second
Quarter
|
|
Year-to-Date
June 30,
|
|
Full Year 2016
Guidance
|
|
$ in Millions, Except Per Share Amounts
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
Consolidated Net Cash Provided by Operating Activities
|
|
$
|
723
|
|
|
$
|
153
|
|
|
$
|
1,363
|
|
|
$
|
590
|
|
|
$2,000-$2,900
|
|
Proportional Free Cash Flow1
|
|
$
|
417
|
|
|
$
|
62
|
|
|
$
|
670
|
|
|
$
|
327
|
|
|
$1,000-$1,350
|
|
Diluted EPS from Continuing Operations
|
|
$
|
(0.16
|
)
|
|
$
|
0.11
|
|
|
$
|
0.05
|
|
|
$
|
0.33
|
|
|
N/A
|
|
Adjusted EPS1
|
|
$
|
0.17
|
|
|
$
|
0.26
|
|
|
$
|
0.32
|
|
|
$
|
0.52
|
|
|
$0.95-$1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
A non-GAAP financial measure. See “Non-GAAP Financial Measures” for
definitions and reconciliations to the most comparable GAAP
financial measures.
|
|
|
|
|
|
|
|
Table 2: Guidance & Expectations
|
|
$ in Millions, Except Per Share Amounts
|
|
Reaffirming Full Year
2016 Guidance
|
|
Reaffirming 2017-2018
Expectations
|
|
Consolidated Net Cash Provided by Operating Activities
|
|
$2,000-$2,900
|
|
N/A
|
|
Proportional Free Cash Flow1
|
|
$1,000-$1,350
|
|
At least 10% average annual
growth off 2016 base
|
|
Adjusted EPS1,2
|
|
$0.95-$1.05
|
|
Expect higher end of 12%-16%
growth off 2016 base
|
|
|
|
|
|
|
|
1
|
|
A non-GAAP financial measure. See “Non-GAAP Financial Measures” for
definitions and reconciliations to the most comparable GAAP
financial measures.
|
|
2
|
|
In providing its full year 2016 Adjusted EPS guidance, the Company
notes that there could be differences between expected reported
earnings and estimated operating earnings for matters such as, but
not limited to: (a) unrealized gains related to derivative
transactions, estimated to be $3 million; (b) unrealized foreign
currency losses, estimated to be $7 million; (c) losses due to
dispositions and acquisitions of business interests, estimated to be
$6 million; (d) losses due to impairments, estimated to be $163
million, related to DP&L and Buffalo Gap 2; and (e) costs due to the
early retirement of debt, estimated to be $5 million. The amounts
set forth above are as of June 30, 2016. At this time, management is
not able to estimate the aggregate impact, if any, of these items on
reported earnings. Accordingly, the Company is not able to provide a
corresponding GAAP equivalent for its Adjusted EPS guidance.
|
|
|
|
|
2016 Guidance and 2017-2018 Expectations
-
The Company's 2016 guidance and 2017-2018 expectations are based on
foreign currency and commodity forward curves as of June 30, 2016.
-
The Company is reaffirming its 2016 Consolidated Net Cash Provided by
Operating Activities guidance range of $2,000-$2,900 million.
-
The Company is reaffirming its 2016 Proportional Free Cash Flow
guidance range of $1,000-$1,350 million.
-
The Company is reaffirming its 2016 Parent Free Cash Flow
expectation of $525-$625 million.
-
The Company is reaffirming its 2016 Adjusted EPS guidance range of
$0.95-$1.05.
-
As disclosed in May 2016, the Company continues to expect stronger
second half 2016 Adjusted EPS results, partly due to a lower
adjusted effective tax rate and fewer planned outages at certain
businesses.
-
The Company is reaffirming its growth rate expectations for 2017-2018
for both Proportional Free Cash Flow and Adjusted EPS.
Additional Highlights
-
In the second quarter of 2016, DPL in the United States recorded a
$235 million, or $0.25 per share, asset impairment charge largely
related to the Killen generating station. The charge is attributable
to lower expectations of future capacity revenue, resulting from the
most recent PJM capacity auction for 2018-2019 and revised estimates
of future environmental compliance related to the Environmental
Protection Agency's Effluent Limitation Guidelines (ELG) and Coal
Combustion Residuals (CCR) costs.
-
Year-to-Date 2016, the Company prepaid $306 million in Parent debt,
including prepayment in July 2016 of $181 million of 8% unsecured
notes due in 2017.
-
Year-to-Date 2016, the Company has completed 2,414 MW of projects:
-
1,713 MW of MATS upgrades, the 630 MW Harding Street Units 5-7
gas-fired conversion and the 20 MW Harding Street Energy Storage
Array at Indianapolis Power & Light in Indiana;
-
21 MW Andes Solar plant at Gener in Chile;
-
20 MW Tunjita hydroelectric plant in Colombia; and
-
10 MW Warrior Run Energy Storage Array in Maryland.
-
The Company currently has 3,921 MW of capacity currently under
construction and expected to come on-line through 2019.
-
In May 2016, the Company broke ground on the Colon project in
Panama, consisting of a 380 MW CCGT plant and 180,000 m3
LNG regasification and storage facility. The CCGT plant is
contracted under a 10-year, U.S. Dollar-denominated Power Purchase
Agreement and is expected to come on-line in the first half of
2018. The LNG facility is expected to come on-line in 2019.
-
Year-to-Date 2016, the Company has announced or closed approximately
$540 million in asset sale proceeds to AES.
-
In June 2016, the Company announced the sale of its 100% equity
interest in AES Sul, one of its utilities in Brazil, for BRL 1,698
million (equivalent to approximately $470 million) in proceeds to
AES. The Company expects this transaction to close in the second
half of 2016.
-
In June 2016, the Company received the remaining $40 million in
proceeds from the sales of Sonel, Dibamba and Kribi in Cameroon,
which were announced in November 2013.
-
In February 2016, the Company received $21 million in proceeds
from the sale of a 24% interest in IPP4, one of its generation
businesses in Jordan.
-
In January 2016, the Company received $9 million in proceeds from
the sale of Kelanitissa, its generation business in Sri Lanka, and
exited the country.
-
Year-to-Date 2016, the Company has repurchased 9 million shares for
$79 million, at an average price of $9.07 per share. 2016 share
repurchases were executed in the first quarter.
Non-GAAP Financial Measures
See Non-GAAP Financial Measures for definitions of Proportional Free
Cash Flow, Adjusted Earnings Per Share, Adjusted Pre-Tax Contribution,
as well as reconciliations to the most comparable GAAP financial
measures.
Attachments
Consolidated Statements of Operations, Consolidated Balance Sheets,
Segment Information, Consolidated Statements of Cash Flows, Non-GAAP
Financial Measures, Parent Financial Information and 2016 Financial
Guidance Elements.
Conference Call Information
AES will host a conference call on Friday, August 5, 2016 at 9:00 a.m.
Eastern Daylight Time (EDT). Interested parties may listen to the
teleconference by dialing 1-888-317-6003 at least ten minutes before the
start of the call. International callers should dial +1-412-317-6061.
The Conference ID for this call is 9769530. Internet access to the
conference call and presentation materials will be available on the AES
website at www.aes.com by
selecting “Investors”
and then “Presentations
and Webcasts.”
A webcast replay, as well as a replay in downloadable MP3 format, will
be accessible at www.aes.com beginning
shortly after the completion of the call.
About AES
The AES Corporation (NYSE: AES) is a Fortune 200 global power company.
We provide affordable, sustainable energy to 17 countries through our
diverse portfolio of distribution businesses as well as thermal and
renewable generation facilities. Our workforce of 21,000 people is
committed to operational excellence and meeting the world’s changing
power needs. Our 2015 revenues were $15 billion and we own and manage
$37 billion in total assets. To learn more, please visit www.aes.com.
Follow AES on Twitter @TheAESCorp.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning
of the Securities Act of 1933 and of the Securities Exchange Act of
1934. Such forward-looking statements include, but are not limited to,
those related to future earnings, growth and financial and operating
performance. Forward-looking statements are not intended to be a
guarantee of future results, but instead constitute AES’ current
expectations based on reasonable assumptions. Forecasted financial
information is based on certain material assumptions. These assumptions
include, but are not limited to, our accurate projections of future
interest rates, commodity price and foreign currency pricing, continued
normal levels of operating performance and electricity volume at our
distribution companies and operational performance at our generation
businesses consistent with historical levels, as well as achievements of
planned productivity improvements and incremental growth investments at
normalized investment levels and rates of return consistent with prior
experience.
Actual results could differ materially from those projected in our
forward-looking statements due to risks, uncertainties and other
factors. Important factors that could affect actual results are
discussed in AES’ filings with the Securities and Exchange Commission
(the “SEC”), including, but not limited to, the risks discussed under
Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in
AES’ 2015 Annual Report on Form 10-K and in subsequent reports filed
with the SEC. Readers are encouraged to read AES’ filings to learn more
about the risk factors associated with AES’ business. AES undertakes no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Any Stockholder who desires a copy of the Company’s 2015 Annual Report
on Form 10-K dated on or about February 23, 2016 with the SEC may obtain
a copy (excluding Exhibits) without charge by addressing a request to
the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson
Boulevard, Arlington, Virginia 22203. Exhibits also may be requested,
but a charge equal to the reproduction cost thereof will be made. A copy
of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.
|
|
|
THE AES CORPORATION
|
|
Condensed Consolidated Statements of Operations (Unaudited)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
(in millions, except per share amounts)
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Regulated
|
|
$
|
1,565
|
|
|
$
|
1,794
|
|
|
$
|
3,141
|
|
|
$
|
3,628
|
|
|
Non-Regulated
|
|
1,664
|
|
|
1,862
|
|
|
3,359
|
|
|
3,786
|
|
|
Total revenue
|
|
3,229
|
|
|
3,656
|
|
|
6,500
|
|
|
7,414
|
|
|
Cost of Sales:
|
|
|
|
|
|
|
|
|
|
Regulated
|
|
(1,431
|
)
|
|
(1,432
|
)
|
|
(2,898
|
)
|
|
(2,989
|
)
|
|
Non-Regulated
|
|
(1,224
|
)
|
|
(1,469
|
)
|
|
(2,519
|
)
|
|
(2,949
|
)
|
|
Total cost of sales
|
|
(2,655
|
)
|
|
(2,901
|
)
|
|
(5,417
|
)
|
|
(5,938
|
)
|
|
Operating margin
|
|
574
|
|
|
755
|
|
|
1,083
|
|
|
1,476
|
|
|
General and administrative expenses
|
|
(47
|
)
|
|
(50
|
)
|
|
(95
|
)
|
|
(105
|
)
|
|
Interest expense
|
|
(390
|
)
|
|
(287
|
)
|
|
(732
|
)
|
|
(630
|
)
|
|
Interest income
|
|
138
|
|
|
116
|
|
|
255
|
|
|
195
|
|
|
Gain (loss) on extinguishment of debt
|
|
—
|
|
|
(117
|
)
|
|
4
|
|
|
(141
|
)
|
|
Other expense
|
|
(21
|
)
|
|
(12
|
)
|
|
(29
|
)
|
|
(29
|
)
|
|
Other income
|
|
12
|
|
|
15
|
|
|
25
|
|
|
30
|
|
|
Gain (loss) on disposal and sale of businesses
|
|
(17
|
)
|
|
—
|
|
|
30
|
|
|
—
|
|
|
Asset impairment expense
|
|
(235
|
)
|
|
(37
|
)
|
|
(394
|
)
|
|
(45
|
)
|
|
Foreign currency transaction gains (losses)
|
|
(36
|
)
|
|
13
|
|
|
4
|
|
|
(8
|
)
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN
EARNINGS OF AFFILIATES
|
|
(22
|
)
|
|
396
|
|
|
151
|
|
|
743
|
|
|
Income tax benefit (expense)
|
|
7
|
|
|
(123
|
)
|
|
(90
|
)
|
|
(223
|
)
|
|
Net equity in earnings of affiliates
|
|
7
|
|
|
1
|
|
|
14
|
|
|
15
|
|
|
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
|
(8
|
)
|
|
274
|
|
|
75
|
|
|
535
|
|
|
Income (loss) from operations of discontinued businesses, net of
income tax (expense) benefit of $(1), $3, $3 and $7, respectively
|
|
3
|
|
|
(10
|
)
|
|
(6
|
)
|
|
(17
|
)
|
|
Net loss from disposal and impairments of discontinued businesses,
net of income tax benefit of $401, $0, $401 and $0, respectively
|
|
(382
|
)
|
|
—
|
|
|
(382
|
)
|
|
—
|
|
|
NET INCOME (LOSS)
|
|
(387
|
)
|
|
264
|
|
|
(313
|
)
|
|
518
|
|
|
Less: Net income attributable to noncontrolling interests
|
|
(95
|
)
|
|
(195
|
)
|
|
(43
|
)
|
|
(307
|
)
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION
|
|
$
|
(482
|
)
|
|
$
|
69
|
|
|
$
|
(356
|
)
|
|
$
|
211
|
|
|
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations, net of tax
|
|
$
|
(103
|
)
|
|
$
|
79
|
|
|
$
|
32
|
|
|
$
|
228
|
|
|
Loss from discontinued operations, net of tax
|
|
(379
|
)
|
|
(10
|
)
|
|
(388
|
)
|
|
(17
|
)
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION
|
|
$
|
(482
|
)
|
|
$
|
69
|
|
|
$
|
(356
|
)
|
|
$
|
211
|
|
|
BASIC EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to The AES
Corporation common stockholders, net of tax
|
|
$
|
(0.16
|
)
|
|
$
|
0.11
|
|
|
$
|
0.05
|
|
|
$
|
0.33
|
|
|
Loss from discontinued operations attributable to The AES
Corporation common stockholders, net of tax
|
|
(0.57
|
)
|
|
(0.01
|
)
|
|
(0.59
|
)
|
|
(0.03
|
)
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS
|
|
$
|
(0.73
|
)
|
|
$
|
0.10
|
|
|
$
|
(0.54
|
)
|
|
$
|
0.30
|
|
|
DILUTED EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to The AES
Corporation common stockholders, net of tax
|
|
$
|
(0.16
|
)
|
|
$
|
0.11
|
|
|
$
|
0.05
|
|
|
$
|
0.33
|
|
|
Loss from discontinued operations attributable to The AES
Corporation common stockholders, net of tax
|
|
(0.57
|
)
|
|
(0.01
|
)
|
|
(0.59
|
)
|
|
(0.03
|
)
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO THE AES CORPORATION COMMON
STOCKHOLDERS
|
|
$
|
(0.73
|
)
|
|
$
|
0.10
|
|
|
$
|
(0.54
|
)
|
|
$
|
0.30
|
|
|
DILUTED SHARES OUTSTANDING
|
|
659
|
|
|
695
|
|
|
662
|
|
|
701
|
|
|
DIVIDENDS DECLARED PER COMMON SHARE
|
|
$
|
—
|
|
|
$
|
0.10
|
|
|
$
|
0.11
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
|
|
Strategic Business Unit (SBU) Information
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
(in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
US
|
|
$
|
811
|
|
|
$
|
831
|
|
|
$
|
1,666
|
|
|
$
|
1,828
|
|
|
Andes
|
|
575
|
|
|
630
|
|
|
1,197
|
|
|
1,242
|
|
|
Brazil
|
|
895
|
|
|
1,113
|
|
|
1,734
|
|
|
2,217
|
|
|
MCAC
|
|
530
|
|
|
601
|
|
|
1,049
|
|
|
1,199
|
|
|
Europe
|
|
222
|
|
|
299
|
|
|
468
|
|
|
629
|
|
|
Asia
|
|
201
|
|
|
187
|
|
|
395
|
|
|
306
|
|
|
Corporate, Other and Inter-SBU eliminations
|
|
(5
|
)
|
|
(5
|
)
|
|
(9
|
)
|
|
(7
|
)
|
|
Total Revenue
|
|
$
|
3,229
|
|
|
$
|
3,656
|
|
|
$
|
6,500
|
|
|
$
|
7,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
|
|
Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
|
|
(in millions, except share
and per share data)
|
|
ASSETS
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,265
|
|
|
$
|
1,257
|
|
|
Restricted cash
|
|
250
|
|
|
295
|
|
|
Short-term investments
|
|
544
|
|
|
469
|
|
|
Accounts receivable, net of allowance for doubtful accounts of $108
and $87 respectively
|
|
2,087
|
|
|
2,302
|
|
|
Inventory (see Note 2)
|
|
655
|
|
|
671
|
|
|
Prepaid expenses
|
|
91
|
|
|
106
|
|
|
Other current assets
|
|
1,441
|
|
|
1,318
|
|
|
Current assets of discontinued operations and held-for-sale
businesses
|
|
1,048
|
|
|
424
|
|
|
Total current assets
|
|
7,381
|
|
|
6,842
|
|
|
NONCURRENT ASSETS
|
|
|
|
|
|
Property, Plant and Equipment:
|
|
|
|
|
|
Land
|
|
785
|
|
|
702
|
|
|
Electric generation, distribution assets and other
|
|
28,416
|
|
|
27,751
|
|
|
Accumulated depreciation
|
|
(9,705
|
)
|
|
(9,327
|
)
|
|
Construction in progress
|
|
3,539
|
|
|
3,029
|
|
|
Property, plant and equipment, net
|
|
23,035
|
|
|
22,155
|
|
|
Other Assets:
|
|
|
|
|
|
Investments in and advances to affiliates (see Note 6)
|
|
615
|
|
|
610
|
|
|
Debt service reserves and other deposits
|
|
700
|
|
|
555
|
|
|
Goodwill
|
|
1,157
|
|
|
1,157
|
|
|
Other intangible assets, net of accumulated amortization of $97 and
$93, respectively
|
|
219
|
|
|
207
|
|
|
Deferred income taxes
|
|
483
|
|
|
410
|
|
|
Service concession assets, net of accumulated amortization of $71
and $34, respectively
|
|
1,486
|
|
|
1,543
|
|
|
Other noncurrent assets
|
|
1,898
|
|
|
2,109
|
|
|
Noncurrent assets of discontinued operations and held-for-sale
businesses
|
|
—
|
|
|
882
|
|
|
Total other assets
|
|
6,558
|
|
|
7,473
|
|
|
TOTAL ASSETS
|
|
$
|
36,974
|
|
|
$
|
36,470
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,434
|
|
|
$
|
1,571
|
|
|
Accrued interest
|
|
249
|
|
|
236
|
|
|
Accrued and other liabilities
|
|
2,082
|
|
|
2,286
|
|
|
Non-recourse debt, including $190 and $258, respectively, related to
variable interest entities (see Note 7)
|
|
1,610
|
|
|
2,172
|
|
|
Current liabilities of discontinued operations and held-for-sale
businesses
|
|
841
|
|
|
661
|
|
|
Total current liabilities
|
|
6,216
|
|
|
6,926
|
|
|
NONCURRENT LIABILITIES
|
|
|
|
|
|
Recourse debt (see Note 7)
|
|
4,909
|
|
|
4,966
|
|
|
Non-recourse debt, including $1,059 and $1,531, respectively,
related to variable interest entities (see Note 7)
|
|
14,261
|
|
|
12,943
|
|
|
Deferred income taxes
|
|
1,036
|
|
|
1,090
|
|
|
Pension and other post-retirement liabilities (see Note 9)
|
|
1,054
|
|
|
919
|
|
|
Other noncurrent liabilities
|
|
3,072
|
|
|
2,794
|
|
|
Noncurrent liabilities of discontinued operations and held-for-sale
businesses
|
|
—
|
|
|
123
|
|
|
Total noncurrent liabilities
|
|
24,332
|
|
|
22,835
|
|
|
Commitments and Contingencies (see Note 8)
|
|
|
|
|
|
Redeemable stock of subsidiaries
|
|
753
|
|
|
538
|
|
|
EQUITY (see Note 10)
|
|
|
|
|
|
THE AES CORPORATION STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
Common stock ($0.01 par value, 1,200,000,000 shares authorized;
815,894,592 issued and 659,001,121 outstanding at June 30, 2016 and
815,846,621 issued and 666,808,790 outstanding at December 31, 2015)
|
|
8
|
|
|
8
|
|
|
Additional paid-in capital
|
|
8,714
|
|
|
8,718
|
|
|
Retained earnings (accumulated deficit)
|
|
(284
|
)
|
|
143
|
|
|
Accumulated other comprehensive loss
|
|
(3,768
|
)
|
|
(3,883
|
)
|
|
Treasury stock, at cost (156,893,471 shares at June 30, 2016 and
149,037,831 at December 31, 2015)
|
|
(1,904
|
)
|
|
(1,837
|
)
|
|
Total AES Corporation stockholders’ equity
|
|
2,766
|
|
|
3,149
|
|
|
NONCONTROLLING INTERESTS
|
|
2,907
|
|
|
3,022
|
|
|
Total equity
|
|
5,673
|
|
|
6,171
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
36,974
|
|
|
$
|
36,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(313
|
)
|
|
$
|
518
|
|
|
Adjustments to net income:
|
|
|
|
|
|
Depreciation and amortization
|
|
586
|
|
|
597
|
|
|
Gain on sales and disposals of businesses
|
|
(30
|
)
|
|
—
|
|
|
Impairment expenses
|
|
396
|
|
|
45
|
|
|
Deferred income taxes
|
|
(443
|
)
|
|
17
|
|
|
Provisions for (reversals of) contingencies
|
|
21
|
|
|
(134
|
)
|
|
(Gain) loss on extinguishment of debt
|
|
(4
|
)
|
|
145
|
|
|
Loss on sales of assets
|
|
14
|
|
|
12
|
|
|
Impairments of discontinued operations and held-for-sale businesses
|
|
783
|
|
|
—
|
|
|
Other
|
|
79
|
|
|
70
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
(Increase) decrease in accounts receivable
|
|
366
|
|
|
(444
|
)
|
|
(Increase) decrease in inventory
|
|
12
|
|
|
(54
|
)
|
|
(Increase) decrease in prepaid expenses and other current assets
|
|
473
|
|
|
132
|
|
|
(Increase) decrease in other assets
|
|
(172
|
)
|
|
(815
|
)
|
|
Increase (decrease) in accounts payable and other current liabilities
|
|
(557
|
)
|
|
179
|
|
|
Increase (decrease) in income tax payables, net and other tax
payables
|
|
(255
|
)
|
|
(131
|
)
|
|
Increase (decrease) in other liabilities
|
|
407
|
|
|
453
|
|
|
Net cash provided by operating activities
|
|
1,363
|
|
|
590
|
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
Capital Expenditures
|
|
(1,255
|
)
|
|
(1,168
|
)
|
|
Acquisitions, net of cash acquired
|
|
(11
|
)
|
|
(18
|
)
|
|
Proceeds from the sale of businesses, net of cash sold
|
|
156
|
|
|
2
|
|
|
Sale of short-term investments
|
|
2,762
|
|
|
2,460
|
|
|
Purchase of short-term investments
|
|
(2,806
|
)
|
|
(2,270
|
)
|
|
Increase in restricted cash, debt service reserves and other assets
|
|
(142
|
)
|
|
(51
|
)
|
|
Other investing
|
|
(30
|
)
|
|
(25
|
)
|
|
Net cash used in investing activities
|
|
(1,326
|
)
|
|
(1,070
|
)
|
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
Borrowings under the revolving credit facilities
|
|
664
|
|
|
361
|
|
|
Repayments under the revolving credit facilities
|
|
(681
|
)
|
|
(359
|
)
|
|
Issuance of recourse debt
|
|
500
|
|
|
575
|
|
|
Repayments of recourse debt
|
|
(611
|
)
|
|
(915
|
)
|
|
Issuance of non-recourse debt
|
|
1,534
|
|
|
1,940
|
|
|
Repayments of non-recourse debt
|
|
(1,054
|
)
|
|
(1,457
|
)
|
|
Payments for financing fees
|
|
(55
|
)
|
|
(40
|
)
|
|
Distributions to noncontrolling interests
|
|
(236
|
)
|
|
(113
|
)
|
|
Contributions from noncontrolling interests
|
|
94
|
|
|
97
|
|
|
Proceeds from the sale of redeemable stock of subsidiaries
|
|
134
|
|
|
461
|
|
|
Dividends paid on AES common stock
|
|
(145
|
)
|
|
(141
|
)
|
|
Payments for financed capital expenditures
|
|
(87
|
)
|
|
(84
|
)
|
|
Purchase of treasury stock
|
|
(79
|
)
|
|
(307
|
)
|
|
Other financing
|
|
(21
|
)
|
|
(29
|
)
|
|
Net cash used in financing activities
|
|
(43
|
)
|
|
(11
|
)
|
|
Effect of exchange rate changes on cash
|
|
8
|
|
|
(19
|
)
|
|
Decrease in cash of discontinued operations and held-for-sale
businesses
|
|
6
|
|
|
12
|
|
|
Total increase (decrease) in cash and cash equivalents
|
|
8
|
|
|
(498
|
)
|
|
Cash and cash equivalents, beginning
|
|
1,257
|
|
|
1,517
|
|
|
Cash and cash equivalents, ending
|
|
$
|
1,265
|
|
|
$
|
1,019
|
|
|
SUPPLEMENTAL DISCLOSURES:
|
|
|
|
|
|
Cash payments for interest, net of amounts capitalized
|
|
$
|
615
|
|
|
$
|
665
|
|
|
Cash payments for income taxes, net of refunds
|
|
$
|
347
|
|
|
$
|
247
|
|
|
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
|
|
Assets acquired through capital lease and other liabilities
|
|
$
|
5
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
AES is a holding company that derives its income and cash flows from the
activities of its subsidiaries, some of which may not be wholly-owned by
the Company. Accordingly, the Company has presented certain financial
metrics which are defined as Proportional (a non-GAAP financial
measure). Proportional metrics present the Company's estimate of its
share in the economics of the underlying metric. The Company believes
that the proportional metrics are useful to investors because they
exclude the economic share in the metric presented that is held by
non-AES shareholders.
Proportional metrics are reconciled to the nearest GAAP measure. Certain
assumptions have been made to estimate our proportional financial
measures. These assumptions include: (i) the Company's economic interest
has been calculated based on a blended rate for each consolidated
business when such business represents multiple legal entities; (ii) the
Company's economic interest may differ from the percentage implied by
the recorded net income or loss attributable to noncontrolling interests
or dividends paid during a given period; (iii) the Company's economic
interest for entities accounted for using the hypothetical liquidation
at book value method is 100%; (iv) individual operating performance of
the Company's equity method investments is not reflected and (v)
inter-segment transactions are included as applicable for the metric
presented.
The Company's non-GAAP metrics are Proportional Free Cash Flow, Adjusted
pre-tax contribution (“adjusted PTC”) and Adjusted earnings per share
(“adjusted EPS”) used by management and external users of our
consolidated financial statements such as investors, industry analysts
and lenders.
Proportional Free Cash Flow is defined as cash flows from operating
activities (adjusted for service concession asset capital expenditures),
less maintenance capital expenditures (including non-recoverable
environmental capital costs and net of reinsurance proceeds) adjusted
for the estimated impact of noncontrolling interests. Proportional Free
Cash Flow in each SBU includes the effect of intercompany transactions
with other SBUs except for interest, tax sharing, charges for management
fees and transfer pricing. The proportionate share of cash flows and
related adjustments attributable to noncontrolling interest in our
subsidiaries comprise the proportional adjustment factor presented in
the reconciliation below.
The GAAP measure most comparable to Proportional Free Cash Flow is Net
Cash Flows from Operating Activities. We believe that Proportional Free
Cash Flow better reflects the underlying business performance of the
Company, as it measures the cash generated by the business, after the
funding of maintenance capital expenditures, that may be available for
investing or repaying debt or other purposes. Factors in this
determination include the impact of noncontrolling interest, where AES
consolidates the results of a subsidiary that is not wholly-owned by the
Company.
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Calculation of Maintenance Capital Expenditures for Free Cash
Flow (1) Reconciliation Below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance Capital Expenditures
|
|
$
|
158
|
|
|
$
|
157
|
|
|
$
|
320
|
|
|
$
|
306
|
|
|
Environmental Capital Expenditures
|
|
|
68
|
|
|
82
|
|
|
155
|
|
|
130
|
|
|
Growth Capital Expenditures
|
|
466
|
|
|
352
|
|
|
867
|
|
|
816
|
|
|
Total Capital Expenditures
|
|
$
|
692
|
|
|
$
|
591
|
|
|
$
|
1,342
|
|
|
$
|
1,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Proportional Adjusted Operating Cash Flow (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Cash Flow
|
|
$
|
723
|
|
|
$
|
153
|
|
|
$
|
1,363
|
|
|
$
|
590
|
|
|
Add: Capital Expenditures Related to Service Concession Assets (3)
|
|
2
|
|
|
51
|
|
|
26
|
|
|
71
|
|
|
Less: Proportional Adjustment Factor (2) (5)
|
|
(185
|
)
|
|
(13
|
)
|
|
(474
|
)
|
|
(85
|
)
|
|
Proportional Adjusted Operating Cash Flow (2) (5)
|
|
$
|
540
|
|
|
$
|
191
|
|
|
$
|
915
|
|
|
$
|
576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Cash Flow
|
|
$
|
723
|
|
|
$
|
153
|
|
|
$
|
1,363
|
|
|
$
|
590
|
|
|
Add: Capital Expenditures Related to Service Concession Assets (3)
|
|
2
|
|
|
51
|
|
|
26
|
|
|
71
|
|
|
Less: Maintenance Capital Expenditures, net of reinsurance proceeds
|
|
(158
|
)
|
|
(157
|
)
|
|
(320
|
)
|
|
(306
|
)
|
|
Less: Non-Recoverable Environmental Capital Expenditures
|
|
(13
|
)
|
|
(17
|
)
|
|
(25
|
)
|
|
(26
|
)
|
|
Free Cash Flow (1)
|
|
$
|
554
|
|
|
$
|
30
|
|
|
$
|
1,044
|
|
|
$
|
329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Proportional Free Cash Flow (1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proportional Operating Cash Flow (2)
|
|
$
|
539
|
|
|
$
|
165
|
|
|
$
|
902
|
|
|
$
|
540
|
|
|
Add: Proportional Capital Expenditures Related to Service Concession
Assets (3)
|
|
1
|
|
|
26
|
|
|
13
|
|
|
36
|
|
|
Proportional Adjusted Operating Cash Flow (2) (5)
|
|
540
|
|
|
191
|
|
|
915
|
|
|
576
|
|
|
Less: Proportional Maintenance Capital Expenditures, net of
reinsurance proceeds (2)
|
|
(114
|
)
|
|
(117
|
)
|
|
(226
|
)
|
|
(230
|
)
|
|
Less: Proportional Non-Recoverable Environmental Capital
Expenditures (2) (4)
|
|
(9
|
)
|
|
(12
|
)
|
|
(19
|
)
|
|
(19
|
)
|
|
Proportional Free Cash Flow (1) (2)
|
|
$
|
417
|
|
|
$
|
62
|
|
|
$
|
670
|
|
|
$
|
327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Free cash flow (a non-GAAP financial measure) is proportional free
cash flow as defined above but inclusive of noncontrolling interest
impacts.
|
|
(2)
|
|
The proportional adjustment factor, proportional maintenance capital
expenditures (net of reinsurance proceeds) and proportional
non-recoverable environmental capital expenditures are calculated by
multiplying the percentage owned by noncontrolling interests for
each entity by its corresponding consolidated cash flow metric and
are totaled to the resulting figures. For example, Parent Company A
owns 80% of Subsidiary Company B, a consolidated subsidiary. Thus,
Subsidiary Company B has a 20% noncontrolling interest. Assuming a
consolidated net cash flow from operating activities of $100 from
Subsidiary B, the proportional adjustment factor for Subsidiary B
would equal ($20), or $100 x (20%). The Company calculates the
proportional adjustment factor for each consolidated business in
this manner and then sums these amounts to determine the total
proportional adjustment factor used in the reconciliation. The
proportional adjustment factor may differ from the proportion of
income attributable to noncontrolling interests as a result of (a)
non-cash items which impact income but not cash and (b) AES'
ownership interest in the subsidiary where such items occur.
|
|
(3)
|
|
Service concession asset expenditures excluded from free cash flow
and proportional free cash flow non-GAAP metric due to the adoption
of service concession accounting effective January 1, 2015.
|
|
(4)
|
|
Excludes IPALCO’s proportional recoverable environmental capital
expenditures of $38 million and $47 million for the three months
ended June 30, 2016 and 2015, as well as, $94 million and $86
million for the six months ended June 30, 2016 and 2015,
respectively.
|
|
(5)
|
|
Includes proportional adjustment amount for service concession asset
expenditures of $1 million and $26 million for the three months
ended June 30, 2016 and 2015, as well as, $13 million and $36
million for the six months ended June 30, 2016 and June 30, 2015,
respectively. The Company adopted service concession accounting
effective January 1, 2015.
|
|
|
|
|
THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPS
Adjusted PTC is defined as pre-tax income from continuing operations
attributable to AES excluding gains or losses of the consolidated entity
due to (a) unrealized gains or losses related to derivative
transactions, (b) unrealized foreign currency gains or losses, (c) gains
or losses due to dispositions and acquisitions of business interests,
(d) losses due to impairments, and (e) costs due to the early retirement
of debt. Adjusted PTC also includes net equity in earnings of affiliates
on an after-tax basis adjusted for the same gains or losses excluded
from consolidated entities.
Adjusted EPS is defined as diluted earnings per share from continuing
operations excluding gains or losses of both consolidated entities and
entities accounted for under the equity method due to (a) unrealized
gains or losses related to derivative transactions, (b) unrealized
foreign currency gains or losses, (c) gains or losses due to
dispositions and acquisitions of business interests, (d) losses due to
impairments, and (e) costs due to the early retirement of debt.
The GAAP measure most comparable to adjusted PTC is income from
continuing operations attributable to AES. The GAAP measure most
comparable to adjusted EPS is diluted earnings per share from continuing
operations. We believe that adjusted PTC and adjusted EPS better reflect
the underlying business performance of the Company and are considered in
the Company’s internal evaluation of financial performance. Factors in
this determination include the variability due to unrealized gains or
losses related to derivative transactions, unrealized foreign currency
gains or losses, losses due to impairments and strategic decisions to
dispose of or acquire business interests or retire debt, which affect
results in a given period or periods. In addition, for adjusted PTC,
earnings before tax represents the business performance of the Company
before the application of statutory income tax rates and tax
adjustments, including the effects of tax planning, corresponding to the
various jurisdictions in which the Company operates. Adjusted PTC and
adjusted EPS should not be construed as alternatives to income from
continuing operations attributable to AES and diluted earnings per share
from continuing operations, which are determined in accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
2016
|
|
|
|
Three Months
Ended June 30,
2015
|
|
|
|
Six Months Ended
June 30, 2016
|
|
|
|
Six Months Ended
June 30, 2015
|
|
|
|
|
|
Net of
NCI(1)
|
|
Per Share
(Diluted) Net
of NCI(1)
|
|
|
|
Net of
NCI(1)
|
|
Per Share
(Diluted) Net
of NCI(1)
|
|
|
|
Net of
NCI(1)
|
|
Per Share
(Diluted) Net
of NCI(1)
|
|
|
|
Net of
NCI(1)
|
|
Per Share
(Diluted) Net
of NCI(1)
|
|
|
|
|
|
(in millions, except per share amounts)
|
|
|
|
Income (Loss) from Continuing Operations Attributable to AES and
Diluted EPS
|
|
$
|
(103
|
)
|
|
$
|
(0.16
|
)
|
|
|
|
$
|
79
|
|
|
$
|
0.11
|
|
|
|
|
$
|
32
|
|
|
$
|
0.05
|
|
|
|
|
$
|
228
|
|
|
$
|
0.33
|
|
|
|
|
Add: Income Tax Expense (Benefit) from Continuing Operations
Attributable to AES
|
|
(42
|
)
|
|
|
|
|
|
49
|
|
|
|
|
|
|
19
|
|
|
|
|
|
|
103
|
|
|
|
|
|
|
Pre-Tax Contribution
|
|
$
|
(145
|
)
|
|
|
|
|
|
$
|
128
|
|
|
|
|
|
|
$
|
51
|
|
|
|
|
|
|
$
|
331
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized Derivative Losses/(Gains)
|
|
$
|
30
|
|
|
$
|
0.04
|
|
|
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
|
|
$
|
(17
|
)
|
|
$
|
(0.02
|
)
|
|
|
|
Unrealized Foreign Currency Transaction Losses/(Gains)
|
|
17
|
|
|
0.02
|
|
|
|
|
(4
|
)
|
|
—
|
|
|
|
|
9
|
|
|
—
|
|
|
|
|
43
|
|
|
0.06
|
|
|
|
|
Disposition/Acquisition Losses/ (Gains)
|
|
17
|
|
|
0.03
|
|
|
(7)
|
|
(4
|
)
|
|
(0.01
|
)
|
|
|
|
(2
|
)
|
|
—
|
|
|
(8)
|
|
(9
|
)
|
|
(0.01
|
)
|
|
|
|
Impairment Losses
|
|
235
|
|
|
0.36
|
|
|
(9)
|
|
30
|
|
|
0.04
|
|
|
(10)
|
|
285
|
|
|
0.43
|
|
|
(11)
|
|
36
|
|
|
0.05
|
|
|
(10)
|
|
Loss on Extinguishment of Debt
|
|
6
|
|
|
0.01
|
|
|
|
|
112
|
|
|
0.16
|
|
|
(12)
|
|
6
|
|
|
0.01
|
|
|
|
|
138
|
|
|
0.20
|
|
|
(13)
|
|
Less: Net Income Tax Benefit (2)(3)(4)(5)(6)
|
|
|
|
(0.13
|
)
|
|
|
|
|
|
(0.04
|
)
|
|
|
|
|
|
(0.17
|
)
|
|
|
|
|
|
(0.09
|
)
|
|
|
|
Adjusted PTC and Adjusted EPS
|
|
$
|
160
|
|
|
$
|
0.17
|
|
|
|
|
$
|
260
|
|
|
$
|
0.26
|
|
|
|
|
$
|
345
|
|
|
$
|
0.32
|
|
|
|
|
$
|
522
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________
|
|
(1)
|
|
NCI is defined as Noncontrolling Interests.
|
|
(2)
|
|
The per share income tax benefit (expense) associated with
unrealized derivative (gains) losses were $0.01 and $0.00 in the
three months ended June 30, 2016 and 2015, and $0.00 and $0.00 in
the six months ended June 30, 2016 and 2015, respectively.
|
|
(3)
|
|
The per share income tax benefit (expense) associated with
unrealized foreign currency transaction (gains) losses were $0.01
and $(0.01) in the three months ended June 30, 2016 and 2015, and of
$0.00 and $0.03 in the six months ended June 30, 2016 and 2015,
respectively.
|
|
(4)
|
|
The per share income tax benefit (expense) associated with
disposition/acquisition (gains) losses were $0.00 and $0.00 in the
three months ended June 30, 2016 and 2015, and $(0.01) and $0.00 in
the six months ended June 30, 2016 and 2015, respectively.
|
|
(5)
|
|
The per share income tax benefit (expense) associated with
impairment losses were $0.11 and $0.00 in the three months ended
June 30, 2016 and 2015, and $0.18 and $0.00 in the six months ended
June 30, 2016 and 2015, respectively.
|
|
(6)
|
|
The per share income tax benefit (expense) associated with loss on
extinguishment of debt were $0.00 and $0.05 in the three months
ended June 30, 2016 and 2015, and $0.00 and $0.06 in the six months
ended June 30, 2016 and 2015, respectively.
|
|
(7)
|
|
Amount primarily relates to the loss from the deconsolidation of UK
Wind of $20 million, or $0.03 per share.
|
|
(8)
|
|
Amount primarily relates to the loss from the deconsolidation of UK
Wind of $20 million, or $0.03 per share; and the gain from the sale
of DPLER of $22 million, or $0.03 per share.
|
|
(9)
|
|
Amount primarily relates to the asset impairment at DPL of $235
million, or $0.36 per share.
|
|
(10)
|
|
Amount primarily relates to the asset impairment at UK Wind of $37
million ($30 million, or $0.04 per share, net of NCI).
|
|
(11)
|
|
Amount primarily relates to the asset impairment at DPL of $235
million,or $0.36 per share; and at Buffalo Gap II of $159 million
($49 million, or $0.07 per share, net of NCI).
|
|
(12)
|
|
Amount primarily relates to the loss on early retirement of debt at
the Parent Company of $85 million, or $0.12 per share; and at IPL of
$19 million ($15 million, or $0.02 per share, net of NCI).
|
|
(13)
|
|
Amount primarily relates to the loss on early retirement of debt at
the Parent Company of $111 million, or $0.16 per share; and at IPL
of $19 million ($15 million, or $0.02 per share, net of NCI).
|
|
|
|
|
|
|
|
The AES Corporation
|
|
Parent Financial Information
|
|
Parent only data: last four quarters
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
4 Quarters Ended
|
|
Total subsidiary distributions & returns
of capital to Parent
|
|
June 30, 2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Subsidiary distributions(1) to Parent & QHCs
|
|
$
|
1,070
|
|
$
|
968
|
|
$
|
1,057
|
|
$
|
917
|
|
Returns of capital distributions to Parent & QHCs
|
|
|
30
|
|
|
24
|
|
|
8
|
|
|
26
|
|
Total subsidiary distributions & returns of capital to Parent
|
|
$
|
1,100
|
|
$
|
992
|
|
$
|
1,065
|
|
$
|
943
|
|
Parent only data: quarterly
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
Quarter Ended
|
|
Total subsidiary distributions & returns
of capital to Parent
|
|
June 30, 2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Subsidiary distributions(1) to Parent & QHCs
|
|
$
|
337
|
|
$
|
85
|
|
$
|
555
|
|
$
|
93
|
|
Returns of capital distributions to Parent & QHCs
|
|
|
14
|
|
|
16
|
|
|
0
|
|
|
0
|
|
Total subsidiary distributions & returns of capital to Parent
|
|
$
|
351
|
|
$
|
101
|
|
$
|
555
|
|
$
|
93
|
|
Parent Company Liquidity (2)
|
|
|
|
(in millions)
|
|
Balance at
|
|
|
|
June 30, 2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
September 30,
2015
|
|
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Actual
|
|
Cash at Parent & Cash at QHCs (3)
|
|
$
|
30
|
|
$
|
17
|
|
$
|
400
|
|
$
|
6
|
|
Availability under credit facilities
|
|
|
733
|
|
|
658
|
|
|
738
|
|
|
625
|
|
Ending liquidity
|
|
$
|
763
|
|
$
|
675
|
|
$
|
1,138
|
|
$
|
631
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Subsidiary distributions should not be construed as an alternative
to Net Cash Provided by Operating Activities which is determined in
accordance with GAAP. Subsidiary distributions are important to the
Parent Company because the Parent Company is a holding company that
does not derive any significant direct revenues from its own
activities but instead relies on its subsidiaries’ business
activities and the resultant distributions to fund the debt service,
investment and other cash needs of the holding company. The
reconciliation of the difference between the subsidiary
distributions and the Net Cash Provided by Operating Activities
consists of cash generated from operating activities that is
retained at the subsidiaries for a variety of reasons which are both
discretionary and non-discretionary in nature. These factors
include, but are not limited to, retention of cash to fund capital
expenditures at the subsidiary, cash retention associated with
non-recourse debt covenant restrictions and related debt service
requirements at the subsidiaries, retention of cash related to
sufficiency of local GAAP statutory retained earnings at the
subsidiaries, retention of cash for working capital needs at the
subsidiaries, and other similar timing differences between when the
cash is generated at the subsidiaries and when it reaches the Parent
Company and related holding companies.
|
|
(2)
|
|
Parent Company Liquidity is defined as cash at the Parent Company
plus available borrowings under existing credit facility plus cash
at qualified holding companies (QHCs). AES believes that
unconsolidated Parent Company liquidity is important to the
liquidity position of AES as a Parent Company because of the
non-recourse nature of most of AES’ indebtedness.
|
|
(3)
|
|
The cash held at QHCs represents cash sent to subsidiaries of the
company domiciled outside of the US. Such subsidiaries had no
contractual restrictions on their ability to send cash to AES, the
Parent Company. Cash at those subsidiaries was used for investment
and related activities outside of the US. These investments included
equity investments and loans to other foreign subsidiaries as well
as development and general costs and expenses incurred outside the
US. Since the cash held by these QHCs is available to the Parent,
AES uses the combined measure of subsidiary distributions to Parent
and QHCs as a useful measure of cash available to the Parent to meet
its international liquidity needs.
|
|
|
|
|
|
|
|
THE AES CORPORATION
|
|
2016 FINANCIAL GUIDANCE ELEMENTS(1), (2)
|
|
|
|
|
|
|
2016 Financial Guidance
|
|
|
|
|
As of 8/5/16
|
|
|
|
|
Consolidated
|
|
|
Proportional
|
|
Income Statement Guidance
|
|
|
|
|
|
|
|
Adjusted Earnings Per Share (3)
|
|
|
$0.95-$1.05
|
|
|
|
|
Cash Flow Guidance
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
|
|
|
$2,000-$2,900 million
|
|
|
|
|
Free Cash Flow (4)
|
|
|
|
|
|
$1,000-$1,350 million
|
|
Reconciliation of Free Cash Flow Guidance
|
|
|
|
|
|
|
|
Net Cash from Operating Activities
|
|
|
$2,000-$2,900 million
|
|
|
$1,500-$1,850 million
|
|
Less: Maintenance Capital Expenditures
|
|
|
$600-$800 million
|
|
|
$400-$600 million
|
|
Free Cash Flow (4)
|
|
|
$1,300-$2,200 million
|
|
|
$1,000-$1,350 million
|
|
|
|
|
|
|
|
|
|
(1)
|
|
2016 Guidance is based on expectations for future foreign exchange
rates and commodity prices as of June 30, 2016.
|
|
|
|
|
|
(2)
|
|
AES is a holding company that derives its income and cash flows from
the activities of its subsidiaries, some of which may not be
wholly-owned by the Company. Accordingly, the Company has presented
certain financial metrics which are defined as Proportional (a
non-GAAP financial measure). Proportional metrics present the
Company's estimate of its share in the economics of the underlying
metric. The Company believes that the Proportional metrics are
useful to investors because they exclude the economic share in the
metric presented that is held by non-AES shareholders. For example,
Net Cash Provided by Operating Activities (Operating Cash Flow) is a
GAAP metric which presents the Company's cash flow from operations
on a consolidated basis, including operating cash flow allocable to
noncontrolling interests. Proportional Operating Cash Flow removes
the share of operating cash flow allocable to noncontrolling
interests and therefore may act as an aid in the valuation of the
Company. Beginning in Q1 2015, the definition was revised to also
exclude cash flows related to service concession assets.
Proportional metrics are reconciled to the nearest GAAP measure.
Certain assumptions have been made to estimate our proportional
financial measures. These assumptions include: (i) the Company's
economic interest has been calculated based on a blended rate for
each consolidated business when such business represents multiple
legal entities; (ii) the Company's economic interest may differ from
the percentage implied by the recorded net income or loss
attributable to noncontrolling interests or dividends paid during a
given period; (iii) the Company's economic interest for entities
accounted for using the hypothetical liquidation at book value
method is 100%; (iv) individual operating performance of the
Company's equity method investments is not reflected and (v)
inter-segment transactions are included as applicable for the metric
presented.
|
|
|
|
|
|
(3)
|
|
Adjusted Earnings Per Share (a non-GAAP financial measure) is
defined as diluted earnings per share from continuing operations
excluding gains or losses of both consolidated entities and entities
accounted for under the equity method due to (a) unrealized gains or
losses related to derivative transactions, (b) unrealized foreign
currency gains or losses, (c) gains or losses due to dispositions
and acquisitions of business interests, d) losses due to
impairments, and (e) costs due to the early retirement of debt. The
GAAP measure most comparable to Adjusted EPS is diluted earnings per
share from continuing operations. AES believes that adjusted
earnings per share better reflects the underlying business
performance of the Company, and is considered in the Company's
internal evaluation of financial performance. Factors in this
determination include the variability due to unrealized gains or
losses related to derivative transactions, unrealized foreign
currency gains or losses, losses due to impairments and strategic
decisions to dispose or acquire business interests or retire debt,
which affect results in a given period or periods. Adjusted earnings
per share should not be construed as an alternative to diluted
earnings per share from continuing operations, which is determined
in accordance with GAAP.
|
|
|
|
|
|
(4)
|
|
Free Cash Flow is reconciled above. Free cash flow (a non-GAAP
financial measure) is defined as net cash from operating activities
(adjusted for service concession asset capital expenditures) less
maintenance capital expenditures (including non-recoverable
environmental capital expenditures), net of reinsurance proceeds
from third parties. AES believes that free cash flow is a useful
measure for evaluating our financial condition because it represents
the amount of cash provided by operations less maintenance capital
expenditures as defined by our businesses, that may be available for
investing or for repaying debt.
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160805005123/en/
Source: The AES Corporation