AES Reports Strong First Quarter Results; Reaffirms 2024 Guidance & Long-Term Growth Rates
Signed an Additional 1 GW of Solar-Plus-Storage Under a Long-Term Contract with Amazon, for a Total of 2 GW at Bellefield in
Strategic Accomplishments
- Signed 1.2 GW of renewables and energy storage under long-term contracts, bringing total backlog of projects signed under long-term contracts to 12.7 GW
- Includes an additional 1 GW under a 15-year contract with Amazon, for a total of 2 GW at Bellefield, the largest single solar-plus-storage facility in the US
- Completed the construction or acquisition of 593 MW of renewables; on track to add 3.6 GW of new projects to operations in full year 2024
-
AES Indiana received approval for its rate case settlement, allowing investment in reliability, resiliency and enhanced customer offerings - Retired 276 MW Norgener coal plant in
Chile , for a total of 13.5 GW of coal exits announced or closed since 2017
Q1 2024 Financial Highlights
- Diluted EPS of
$0.60 , compared to$0.21 in Q1 2023 - Adjusted EPS1 of
$0.50 , compared to$0.22 in Q1 2023 - Net Income of
$278 million , compared to$189 million in Q1 2023 - Adjusted EBITDA2 of
$635 million , compared to$628 million in Q1 2023 - Adjusted EBITDA with Tax Attributes2,3 of
$863 million , compared to$641 million in Q1 2023
Financial Position and Outlook
- Reaffirming 2024 guidance for Adjusted EPS1 of
$1.87 to $1.97- Reaffirming annualized Adjusted EPS1 growth target of 7% to 9% through 2025, off a base of 2020
- Reaffirming annualized Adjusted EPS1 growth target of 7% to 9% through 2027, off a base of 2023 guidance
- Reaffirming 2024 guidance for Adjusted EBITDA2 of
$2,600 to $2,900 million- Reaffirming annualized growth target2 of 5% to 7% through 2027, off a base of 2023 guidance
- Reaffirming expectation of 2024 Adjusted EBITDA with Tax Attributes2,3 of
$3,550 to$3,950 million
"We had a strong first quarter, financially and strategically, in line with our expectations. During the quarter, we signed 1 GW of long-term contracts for renewables with Amazon, for a total of 3.1 GW since 2021, making AES one of the largest renewables developers in Amazon's portfolio," said
"With our first quarter results and our future outlook, I am pleased to reaffirm our full year 2024 guidance and long-term growth rates through 2027," said
Q1 2024 Financial Results
First quarter 2024 Net Income was
First quarter 2024 Adjusted EBITDA4 (a non-GAAP financial measure) was
Adjusted EBITDA with Tax Attributes4,5 was
First quarter 2024 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was
First quarter 2024 Adjusted Earnings Per Share6 (Adjusted EPS, a non-GAAP financial measure) was
Strategic Accomplishments
- As of the end of the first quarter of 2024, the Company's backlog, which consists of projects with signed contracts, but which are not yet operational, is 12.7 GW, including 5.8 GW under construction.
- Since the Company's fourth quarter 2023 earnings call in
February 2024 , the Company completed the construction or acquisition of 593 MW of wind, solar and energy storage and expects to add a total of 3.6 GW to its operating portfolio by year-end 2024. - Since the Company's fourth quarter 2023 earnings call in
February 2024 , the Company signed 1.2 GW of long-term contracts for new renewables. - Including the 1 GW of Bellefield 2 signed in the first quarter of 2024, the Company has signed long-term PPAs for 5.9 GW of renewables to serve data center and technology customers in the US and
South America since 2018. -
AES Indiana received approval from theIndiana Utility Regulatory Commission (IURC) to implement new customer rates beginning inmid-May 2024 .AES Indiana will continue to be among the lowest residential rates of any investor-owned utility inIndiana .
Guidance and Expectations6,7
The Company is reaffirming its expectation for annualized growth in Adjusted EBITDA7 of 5% to 7% through 2027, from a base of its 2023 guidance of
The Company is reaffirming its 2024 guidance for Adjusted EBITDA7 of
The Company is reaffirming its expectation for 2024 Adjusted EBITDA with Tax Attributes7,8 of
The Company is reaffirming its annualized growth target for Adjusted EPS6 of 7% to 9% through 2025, from a base year of 2020. The Company is also reaffirming its annualized growth target for Adjusted EPS6 of 7% to 9% through 2027, from a base of its 2023 guidance of
The Company is reaffirming its 2024 guidance for Adjusted EPS9 of
The Company's 2024 guidance is based on foreign currency and commodity forward curves as of
Non-GAAP Financial Measures
See Non-GAAP Measures for definitions of Adjusted EBITDA, Adjusted EBITDA with Tax Attributes, Tax Attributes, Adjusted Earnings Per Share, and Adjusted Pre-Tax Contribution, as well as reconciliations to the most comparable GAAP financial measures.
Attachments
Condensed Consolidated Statements of Operations, Segment Information, Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Cash Flows, Non-GAAP Financial Measures and Parent Financial Information.
Conference Call Information
AES will host a conference call on
A webcast replay will be accessible at www.aes.com beginning shortly after the completion of the call.
____________________ |
|
1 |
Adjusted EPS is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended |
2 |
Adjusted EBITDA is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income (Loss) for the quarter ended |
3 |
Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties. |
4 |
Adjusted EBITDA is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter ended |
5 |
Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties. |
6 |
Adjusted EPS is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended |
7 |
Adjusted EBITDA is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EBITDA and a description of the adjustments to reconcile Adjusted EBITDA to Net Income for the quarter ended |
8 |
Pre-tax effect of Production Tax Credits, Investment Tax Credits, and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties. |
9 |
Adjusted EPS is a non-GAAP financial measure. See attached "Non-GAAP Measures" for definition of Adjusted EPS and a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended |
About AES
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 expectations regarding 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 the execution of PPAs, conversion of our backlog and 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
Any Stockholder who desires a copy of the Company's 2023 Annual Report on Form 10-K filed
Website Disclosure
AES uses its website, including its quarterly updates, as channels of distribution of Company information. The information AES posts through these channels may be deemed material. Accordingly, investors should monitor our website, in addition to following AES' press releases, quarterly
Condensed Consolidated Statements of Operations (Unaudited) |
|||
|
|||
|
Three Months Ended |
||
|
2024 |
|
2023 |
|
(in millions, except per share amounts) |
||
Revenue: |
|
|
|
Non-Regulated |
$ 2,232 |
|
$ 2,287 |
Regulated |
853 |
|
952 |
Total revenue |
3,085 |
|
3,239 |
Cost of Sales: |
|
|
|
Non-Regulated |
(1,733) |
|
(1,797) |
Regulated |
(733) |
|
(848) |
Total cost of sales |
(2,466) |
|
(2,645) |
Operating margin |
619 |
|
594 |
General and administrative expenses |
(75) |
|
(55) |
Interest expense |
(357) |
|
(330) |
Interest income |
105 |
|
123 |
Loss on extinguishment of debt |
(1) |
|
(1) |
Other expense |
(38) |
|
(14) |
Other income |
35 |
|
10 |
Gain on disposal and sale of business interests |
43 |
|
— |
Asset impairment expense |
(46) |
|
(20) |
Foreign currency transaction losses |
(8) |
|
(42) |
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES |
277 |
|
265 |
Income tax benefit (expense) |
16 |
|
(72) |
Net equity in losses of affiliates |
(15) |
|
(4) |
NET INCOME |
278 |
|
189 |
Less: Net loss (income) attributable to noncontrolling interests and redeemable stock of subsidiaries |
154 |
|
(38) |
NET INCOME ATTRIBUTABLE TO THE |
$ 432 |
|
$ 151 |
BASIC EARNINGS PER SHARE: |
|
|
|
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS |
$ 0.62 |
|
$ 0.22 |
DILUTED EARNINGS PER SHARE: |
|
|
|
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS |
$ 0.60 |
|
$ 0.21 |
DILUTED SHARES OUTSTANDING |
712 |
|
712 |
|
|||
Strategic Business Unit (SBU) Information |
|||
(Unaudited) |
|||
|
|
|
|
|
Three Months Ended |
||
(in millions) |
2024 |
|
2023 |
REVENUE |
|
|
|
Renewables SBU |
$ 619 |
|
$ 495 |
Utilities SBU |
873 |
|
971 |
Energy Infrastructure SBU |
1,614 |
|
1,724 |
New Energy Technologies SBU |
— |
|
74 |
Corporate and Other |
33 |
|
27 |
Eliminations |
(54) |
|
(52) |
Total Revenue |
$ 3,085 |
|
$ 3,239 |
Condensed Consolidated Balance Sheets (Unaudited) |
|||
|
|||
|
|
|
|
|
(in millions, except share and per share data) |
||
ASSETS |
|
|
|
CURRENT ASSETS |
|
|
|
Cash and cash equivalents |
$ 1,994 |
|
$ 1,426 |
Restricted cash |
362 |
|
370 |
Short-term investments |
394 |
|
395 |
Accounts receivable, net of allowance of |
1,624 |
|
1,420 |
Inventory |
639 |
|
712 |
Prepaid expenses |
198 |
|
177 |
Other current assets, net of allowance of |
1,404 |
|
1,387 |
Current held-for-sale assets |
555 |
|
762 |
Total current assets |
7,170 |
|
6,649 |
NONCURRENT ASSETS |
|
|
|
Property, Plant and Equipment: |
|
|
|
Land |
556 |
|
522 |
Electric generation, distribution assets and other |
31,352 |
|
30,190 |
Accumulated depreciation |
(8,804) |
|
(8,602) |
Construction in progress |
8,802 |
|
7,848 |
Property, plant and equipment, net |
31,906 |
|
29,958 |
Other Assets: |
|
|
|
Investments in and advances to affiliates |
1,029 |
|
941 |
Debt service reserves and other deposits |
199 |
|
194 |
|
348 |
|
348 |
Other intangible assets, net of accumulated amortization of |
2,258 |
|
2,243 |
Deferred income taxes |
395 |
|
396 |
Other noncurrent assets, net of allowance of |
2,992 |
|
3,259 |
Noncurrent held-for-sale assets |
748 |
|
811 |
Total other assets |
7,969 |
|
8,192 |
TOTAL ASSETS |
$ 47,045 |
|
$ 44,799 |
LIABILITIES AND EQUITY |
|
|
|
CURRENT LIABILITIES |
|
|
|
Accounts payable |
$ 2,064 |
|
$ 2,199 |
Accrued interest |
312 |
|
315 |
Accrued non-income taxes |
268 |
|
278 |
Supplier financing arrangements |
875 |
|
974 |
Accrued and other liabilities |
1,273 |
|
1,334 |
Recourse debt |
200 |
|
200 |
Non-recourse debt, including |
4,033 |
|
3,932 |
Current held-for-sale liabilities |
186 |
|
499 |
Total current liabilities |
9,211 |
|
9,731 |
NONCURRENT LIABILITIES |
|
|
|
Recourse debt |
5,095 |
|
4,264 |
Non-recourse debt, including |
20,275 |
|
18,482 |
Deferred income taxes |
1,507 |
|
1,245 |
Other noncurrent liabilities |
2,661 |
|
3,114 |
Noncurrent held-for-sale liabilities |
514 |
|
514 |
Total noncurrent liabilities |
30,052 |
|
27,619 |
Commitments and Contingencies |
|
|
|
Redeemable stock of subsidiaries |
1,502 |
|
1,464 |
EQUITY |
|
|
|
THE AES CORPORATION STOCKHOLDERS' EQUITY |
|
|
|
Preferred stock (without par value, 50,000,000 shares authorized; 1,043,050 issued and outstanding at |
— |
|
838 |
Common stock ( |
9 |
|
8 |
Additional paid-in capital |
7,068 |
|
6,355 |
Accumulated deficit |
(954) |
|
(1,386) |
Accumulated other comprehensive loss |
(1,414) |
|
(1,514) |
|
(1,809) |
|
(1,813) |
|
2,900 |
|
2,488 |
NONCONTROLLING INTERESTS |
3,380 |
|
3,497 |
Total equity |
6,280 |
|
5,985 |
TOTAL LIABILITIES AND EQUITY |
$ 47,045 |
|
$ 44,799 |
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||
|
|||
|
Three Months Ended |
||
|
2024 |
|
2023 |
|
(in millions) |
||
OPERATING ACTIVITIES: |
|
|
|
Net income |
$ 278 |
|
$ 189 |
Adjustments to net income: |
|
|
|
Depreciation and amortization |
312 |
|
273 |
Emissions allowance expense |
47 |
|
89 |
Gain on realized/unrealized derivatives |
(73) |
|
(33) |
Gain on disposal and sale of business interests |
(43) |
|
— |
Impairment expense |
46 |
|
20 |
Deferred income tax expense (benefit) |
222 |
|
(11) |
Other |
104 |
|
89 |
Changes in operating assets and liabilities: |
|
|
|
(Increase) decrease in accounts receivable |
(232) |
|
(62) |
(Increase) decrease in inventory |
72 |
|
191 |
(Increase) decrease in prepaid expenses and other current assets |
39 |
|
64 |
(Increase) decrease in other assets |
(91) |
|
50 |
Increase (decrease) in accounts payable and other current liabilities |
(85) |
|
(293) |
Increase (decrease) in income tax payables, net and other tax payables |
(327) |
|
(7) |
Increase (decrease) in deferred income |
23 |
|
21 |
Increase (decrease) in other liabilities |
(5) |
|
45 |
Net cash provided by operating activities |
287 |
|
625 |
INVESTING ACTIVITIES: |
|
|
|
Capital expenditures |
(2,148) |
|
(1,551) |
Acquisitions of business interests, net of cash and restricted cash acquired |
(57) |
|
— |
Proceeds from the sale of business interests, net of cash and restricted cash sold |
11 |
|
98 |
Sale of short-term investments |
141 |
|
356 |
Purchase of short-term investments |
(144) |
|
(418) |
Contributions and loans to equity affiliates |
(21) |
|
(20) |
Purchase of emissions allowances |
(56) |
|
(78) |
Other investing |
(112) |
|
(11) |
Net cash used in investing activities |
(2,386) |
|
(1,624) |
FINANCING ACTIVITIES: |
|
|
|
Borrowings under the revolving credit facilities |
1,741 |
|
1,415 |
Repayments under the revolving credit facilities |
(1,037) |
|
(1,055) |
Commercial paper borrowings (repayments), net |
719 |
|
350 |
Issuance of recourse debt |
— |
|
500 |
Issuance of non-recourse debt |
2,131 |
|
690 |
Repayments of non-recourse debt |
(915) |
|
(660) |
Payments for financing fees |
(31) |
|
(18) |
Purchases under supplier financing arrangements |
486 |
|
529 |
Repayments of obligations under supplier financing arrangements |
(516) |
|
(587) |
Distributions to noncontrolling interests |
(23) |
|
(47) |
Contributions from noncontrolling interests |
26 |
|
18 |
Sales to noncontrolling interests |
125 |
|
— |
Dividends paid on AES common stock |
(116) |
|
(111) |
Payments for financed capital expenditures |
(7) |
|
(4) |
Other financing |
23 |
|
(4) |
Net cash provided by financing activities |
2,606 |
|
1,016 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(15) |
|
(18) |
(Increase) decrease in cash, cash equivalents and restricted cash of held-for-sale businesses |
73 |
|
(9) |
Total increase (decrease) in cash, cash equivalents and restricted cash |
565 |
|
(10) |
Cash, cash equivalents and restricted cash, beginning |
1,990 |
|
2,087 |
Cash, cash equivalents and restricted cash, ending |
$ 2,555 |
|
$ 2,077 |
SUPPLEMENTAL DISCLOSURES: |
|
|
|
Cash payments for interest, net of amounts capitalized |
$ 354 |
|
$ 252 |
Cash payments for income taxes, net of refunds |
68 |
|
53 |
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
Conversion of Corporate Units to shares of common stock |
$ 838 |
|
$ — |
Noncash recognition of new operating and financing leases |
124 |
|
19 |
Dividends declared but not yet paid |
116 |
|
111 |
Initial recognition of contingent consideration for acquisitions |
9 |
|
— |
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED EBITDA, ADJUSTED PTC AND ADJUSTED EPS
We define EBITDA as earnings before interest income and expense, taxes, depreciation, and amortization. We define Adjusted EBITDA as EBITDA adjusted for the impact of NCI and interest, taxes, depreciation, and amortization of our equity affiliates, adding back interest income recognized under service concession arrangements, and excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; and (e) gains, losses, and costs due to the early retirement of debt or troubled debt restructuring. We define Adjusted EBITDA with Tax Attributes as Adjusted EBITDA, adding back the pre-tax effect of Production Tax Credits ("PTCs"), Investment Tax Credits ("ITCs"), and depreciation tax deductions allocated to tax equity investors, as well as the tax benefit recorded from tax credits retained or transferred to third parties.
The GAAP measure most comparable to EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes is net income. We believe that EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes better reflect the underlying business performance of the Company. Adjusted EBITDA is the most relevant measure considered in the Company's internal evaluation of the financial performance of its segments. Factors in this determination include the variability due to unrealized gains or losses pertaining to derivative transactions, equity securities, or financial assets and liabilities remeasurement, unrealized foreign currency gains or losses, losses due to impairments, strategic decisions to dispose of or acquire business interests or retire debt, and the variability of allocations of earnings to tax equity investors, which affect results in a given period or periods. In addition, each of these metrics represent 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. EBITDA, Adjusted EBITDA, and Adjusted EBITDA with Tax Attributes should not be construed as alternatives to net income, which is determined in accordance with GAAP.
|
Three Months Ended |
||
Reconciliation of Adjusted EBITDA (in millions) |
2024 |
|
2023 |
Net income |
$ 278 |
|
$ 189 |
Income tax expense (benefit) |
(16) |
|
72 |
Interest expense |
357 |
|
330 |
Interest income |
(105) |
|
(123) |
Depreciation and amortization |
312 |
|
273 |
EBITDA |
$ 826 |
|
$ 741 |
Less: Adjustment for noncontrolling interests and redeemable stock of subsidiaries (1) |
(162) |
|
(170) |
Less: Income tax expense (benefit), interest expense (income) and depreciation and amortization from equity affiliates |
33 |
|
39 |
Interest income recognized under service concession arrangements |
17 |
|
18 |
Unrealized derivatives, equity securities, and financial assets and liabilities gains |
(85) |
|
(39) |
Unrealized foreign currency losses (gains) |
(9) |
|
32 |
Disposition/acquisition gains |
(43) |
|
(3) |
Impairment losses |
26 |
|
9 |
Loss on extinguishment of debt and troubled debt restructuring |
32 |
|
1 |
Adjusted EBITDA |
$ 635 |
|
$ 628 |
Tax attributes |
228 |
|
13 |
Adjusted EBITDA with Tax Attributes (2) |
$ 863 |
|
$ 641 |
_______________________________ |
|
(1) |
The allocation of earnings and losses to tax equity investors from both consolidated entities and equity affiliates is removed from Adjusted EBITDA. |
(2) |
Adjusted EBITDA with Tax Attributes includes the impact of the share of the ITCs, PTCs, and depreciation deductions allocated to tax equity investors under the HLBV accounting method and recognized as Net loss attributable to noncontrolling interests and redeemable stock of subsidiaries on the Condensed Consolidated Statements of Operations. It also includes the tax benefit recorded from tax credits retained or transferred to third parties. The tax attributes are related to the Renewables and Utilities SBU. |
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED EBITDA, ADJUSTED PTC AND ADJUSTED EPS
We define Adjusted PTC as pre-tax income from continuing operations attributable to
We define Adjusted EPS 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 pertaining to derivative transactions, equity securities, and financial assets and liabilities measured using the fair value option; (b) unrealized foreign currency gains or losses; (c) gains, losses, benefits and costs associated with dispositions and acquisitions of business interests, including early plant closures, and the tax impact from the repatriation of sales proceeds, and gains and losses recognized at commencement of sales-type leases; (d) losses due to impairments; and (e) gains, losses, and costs due to the early retirement of debt or troubled debt restructuring.
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 pertaining to derivative transactions, equity securities, or financial assets and liabilities remeasurement, 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.
The Company reported diluted earnings per share of
Reconciliation of Numerator Used for Adjusted EPS |
Three Months Ended |
||||
(in millions, except per share data) |
Income |
|
Shares |
|
$ per Share |
GAAP DILUTED EARNINGS PER SHARE |
|
|
|
|
|
Income available to |
$ 426 |
|
712 |
|
$ 0.60 |
Add back: Adjustment to redemption value of redeemable stock of subsidiaries |
6 |
|
— |
|
0.01 |
NON-GAAP DILUTED EARNINGS PER SHARE |
$ 432 |
|
712 |
|
$ 0.61 |
NON-GAAP FINANCIAL MEASURES (Unaudited) RECONCILIATION OF ADJUSTED EBITDA, ADJUSTED PTC AND ADJUSTED EPS |
||||||||
|
||||||||
|
Three Months Ended |
|
Three Months Ended |
|
||||
|
Net of NCI (1) |
|
Per Share (Diluted) |
|
Net of NCI (1) |
|
Per Share (Diluted) |
|
|
(in millions, except per share amounts) |
|||||||
Income from continuing operations, net of tax, attributable to AES and Diluted EPS |
$ 432 |
|
$ 0.61 |
|
$ 151 |
|
$ 0.21 |
|
Add: Income tax expense (benefit) from continuing operations attributable to AES |
(19) |
|
|
|
51 |
|
|
|
Pre-tax contribution |
$ 413 |
|
|
|
$ 202 |
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
Unrealized derivatives, equity securities, and financial assets and liabilities gains |
$ (85) |
|
$ (0.12) |
(2) |
$ (39) |
|
$ (0.06) |
(3) |
Unrealized foreign currency losses (gains) |
(9) |
|
(0.01) |
|
31 |
|
0.04 |
(4) |
Disposition/acquisition gains |
(43) |
|
(0.06) |
(5) |
(3) |
|
— |
|
Impairment losses |
26 |
|
0.04 |
(6) |
9 |
|
0.01 |
|
Loss on extinguishment of debt and troubled debt restructuring |
34 |
|
0.04 |
(7) |
4 |
|
0.01 |
|
Less: Net income tax expense |
|
|
— |
|
|
|
0.01 |
|
Adjusted PTC and Adjusted EPS |
$ 336 |
|
$ 0.50 |
|
$ 204 |
|
$ 0.22 |
|
_____________________________ |
|
(1) |
NCI is defined as Noncontrolling Interests. |
(2) |
Amount primarily relates to net unrealized derivative gains at the Energy Infrastructure SBU of |
(3) |
Amount primarily relates to unrealized derivative gains at the Energy Infrastructure SBU of |
(4) |
Amount primarily relates to unrealized foreign currency losses mainly associated with the devaluation of long-term receivables denominated in Argentine pesos of |
(5) |
Amount primarily relates to gain on dilution of ownership in Uplight due to its acquisition of |
(6) |
Amount primarily relates to impairment at Mong Duong of |
(7) |
Amount primarily relates to costs incurred due to troubled debt restructuring at |
|
||||
Parent Financial Information |
||||
Parent only data: last four quarters |
|
|
|
|
(in millions) |
4 Quarters Ended |
|||
Total subsidiary distributions & returns of capital to Parent |
|
|
|
|
Actual |
Actual |
Actual |
Actual |
|
Subsidiary distributions 1 to Parent & QHCs |
$ 1,438 |
$ 1,408 |
$ 1,625 |
$ 1,383 |
Returns of capital distributions to Parent & QHCs |
139 |
194 |
116 |
56 |
Total subsidiary distributions & returns of capital to Parent |
$ 1,577 |
$ 1,602 |
$ 1,741 |
$ 1,439 |
Parent only data: quarterly |
|
|
|
|
(in millions) |
Quarter Ended |
|||
Total subsidiary distributions & returns of capital to Parent |
|
|
|
|
Actual |
Actual |
Actual |
Actual |
|
Subsidiary distributions 1 to Parent & QHCs |
$ 386 |
$ 536 |
$ 311 |
$ 205 |
Returns of capital distributions to Parent & QHCs |
1 |
78 |
60 |
— |
Total subsidiary distributions & returns of capital to Parent |
$ 387 |
$ 614 |
$ 371 |
$ 205 |
|
|
|||
(in millions) |
Balance at |
|||
|
|
|
|
|
Parent Company Liquidity 2 |
Actual |
Actual |
Actual |
Actual |
Cash at Parent & Cash at QHCs 3 |
$ 90 |
$ 33 |
$ 51 |
$ 35 |
Availability under credit facilities |
642 |
1,376 |
857 |
883 |
Ending liquidity |
$ 732 |
$ 1,409 |
$ 908 |
$ 918 |
____________________________ |
|
(1) |
Subsidiary distributions received by Qualified Holding Companies ("QHCs") excluded from Schedule 1. Subsidiary Distributions should not be construed as an alternative to Consolidated Net Cash Provided by Operating Activities, which is determined in accordance with US 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 Consolidated 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 available to the Parent Company, including cash at qualified holding companies (QHCs), plus available borrowings under our existing credit facility. 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 have 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. |
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