AES Reports Third Quarter 2015 Proportional Free Cash Flow of $621 Million and Adjusted Earnings Per Share of $0.39
Guidance & Expectations
-
Reaffirming 2015 guidance ranges for cash flow; lowering Adjusted EPS
range to $1.18-$1.25 from $1.25-$1.35
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Primarily reflecting the impact from devaluation in foreign
currencies, changes in commodity prices, lower demand and higher
interest rates in Brazil and outages at DPL and AES Hawaii
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Expecting 2016-2018 average annual growth of at least 10% for
Proportional Free Cash Flow and Parent Free Cash Flow, relative to the
prior expectation of 10%-15%
-
Providing full year 2016 Proportional Free Cash Flow guidance of
$1,125-$1,475 million
-
Lowering 2016-2018 Adjusted EPS expectations to reflect a more
significant impact from macroeconomic factors, including devaluation
in foreign currencies, changes in commodity prices and lower demand
and higher interest rates in Brazil
-
Announcing $150 million in additional cost savings and revenue
enhancement initiatives, which largely offset the impact from
macroeconomic headwinds by 2018
-
Providing full year 2016 Adjusted EPS guidance of $1.05-$1.15,
relative to previous expectation of flat to modest growth off the
mid-point of prior 2015 guidance of $1.25-$1.35
Other Highlights
-
Announcing a new $400 million share repurchase authorization that the
Company expects to use opportunistically in conjunction with debt
retirement to further strengthen credit metrics
-
Reaffirming policy of increasing its dividend by 10% annually
-
5,782 MW of largely funded projects under construction are on track to
come on-line through 2018, as previously expected
The AES Corporation (NYSE:AES) today reported Proportional Free Cash
Flow (a non-GAAP financial measure) for the third quarter of 2015 of
$621 million, an increase of $194 million from third quarter 2014,
primarily driven by the timing of the collection of receivables in the
Dominican Republic. Third quarter 2015 Consolidated Net Cash Provided by
Operating Activities increased $152 million to $915 million, primarily
driven by the same factors as Proportional Free Cash Flow.
Third quarter 2015 Adjusted Earnings Per Share (Adjusted EPS, a non-GAAP
financial measure) increased $0.02 to $0.39, primarily due to equity
earnings from Guacolda in Chile, as well as a 6% reduction in share
count and lower Parent interest expense, partially offset by devaluation
in foreign currencies. Third quarter 2015 Diluted Earnings Per Share
from Continuing Operations was $0.26, a decrease of $0.41 from third
quarter 2014, primarily due to the $0.39 gain on the sale of 45% of the
Company's interest in Masinloc in the Philippines in the third quarter
of 2014.
"We are obviously disappointed with the impact of global macroeconomic
factors on our outlook. Accordingly, we are launching $150 million in
cost reduction and revenue enhancement initiatives that will offset the
majority of these headwinds by 2018," said Andrés Gluski, AES President
and Chief Executive Officer. "Despite these challenges, we are
generating strong and growing Proportional and Parent Free Cash Flow,
both of which we expect to grow by at least 10% per year. We will
continue to invest our discretionary cash in dividend growth, Parent
debt reduction and share repurchases, to maximize per share
risk-adjusted returns for our shareholders."
"The growth in our cash flow will be driven by the completion of 6 GW of
largely funded projects under construction that are coming on-line
through 2018. As a result, we expect to have $2.6 billion in
discretionary cash from 2016 to 2018, which includes a 30% increase in
our Parent Free Cash Flow when compared to 2013 to 2015," said Tom
O'Flynn, AES Executive Vice President and Chief Financial Officer.
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Table 1: Key Financial Results
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Third Quarter
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Year-to-date September 30,
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Full Year 2015 Guidance
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$ in Millions, Except Per Share Amounts
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2015
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2014
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2015
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2014
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Proportional Free Cash Flow1,2
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$
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621
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$
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427
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$
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948
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$
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604
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$
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1,000-$1,350
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Consolidated Net Cash Provided by Operating Activities
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$
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915
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$
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763
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$
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1,505
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$
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1,216
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$
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1,900-$2,700
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Adjusted EPS1
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$
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0.39
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$
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0.37
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$
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0.88
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$
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0.89
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$
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1.18-$1.25
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Diluted EPS from Continuing Operations
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$
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0.26
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$
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0.67
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$
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0.56
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$
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0.81
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N/A
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1
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A non-GAAP financial measure. See “Non-GAAP Financial Measures” for
definitions and reconciliations to the most comparable GAAP
financial measures.
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2
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Defined as Proportional Net Cash Provided by Operating Activities,
less Maintenance Capex, which includes non-recoverable environmental
capex. Beginning in Q1 2015, the definition was revised to also
exclude cash flows related to service concession assets.
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Discussion of Drivers of Proportional Free Cash Flow (a non-GAAP
financial measure), Adjusted Pre-Tax Contribution (Adjusted PTC, a
non-GAAP financial measure) and Adjusted EPS
The Company manages its portfolio in six market-oriented Strategic
Business Units (SBUs): US (United States), Andes (Chile, Colombia and
Argentina), Brazil, MCAC (Mexico, Central America and Caribbean),
Europe, and Asia.
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Table 2: Proportional Free Cash Flow1
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$ in Millions
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Third Quarter
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Year-to-Date September 30,
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2015
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2014
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Variance
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2015
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2014
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Variance
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US
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$
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218
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$
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316
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$
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(98
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)
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$
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477
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$
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502
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$
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(25
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)
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Andes
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134
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86
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48
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131
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126
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5
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Brazil
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31
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52
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(21
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)
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(36
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)
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(12
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)
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|
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(24
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)
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MCAC
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259
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|
|
|
50
|
|
|
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209
|
|
|
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391
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|
|
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130
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|
|
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261
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Europe
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33
|
|
|
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17
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|
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16
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207
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|
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167
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|
|
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40
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Asia
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50
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18
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32
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59
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66
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(7
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)
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Corp
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(104
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)
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(112
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)
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8
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(281
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)
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(375
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)
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94
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Total
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$
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621
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$
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427
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$
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194
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$
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948
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$
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604
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$
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344
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1
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A non-GAAP financial measure. See “Non-GAAP Financial Measures” for
definitions and reconciliations to the most comparable GAAP
financial measures.
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Third quarter 2015 Proportional Free Cash Flow increased $194 million to
$621 million, as described above. Key drivers of this improvement
included:
-
US: A decrease of $98 million, primarily driven by lower
contributions as a result of the sale of a minority interest in IPL,
as well as lower collections and the timing of working capital at IPL
and lower merchant volumes and prices at DPL.
-
Andes: An increase of $48 million, mainly driven by an increase
in VAT refunds related to the construction of Cochrane in Chile.
-
Brazil: A decrease of $21 million, primarily driven by
increased working capital as a result of higher recoverable energy
purchases at Eletropaulo.
-
MCAC: An increase of $209 million, primarily due to the timing
of the collection of outstanding receivables in the Dominican Republic.
-
Europe: An increase of $16 million, primarily driven by higher
collections at Kavarna in Bulgaria and improved working capital since
the commencement of operations at IPP4 in Jordan in July 2014,
partially offset by the sale of Ebute in Nigeria in 2014.
-
Asia: An increase of $32 million, primarily due to the
commencement of operations at Mong Duong in Vietnam and higher
contributions from Masinloc in the Philippines.
-
Corp/Other: An increase of $8 million, primarily driven by
lower Parent interest expense as a result of the reduction in recourse
debt.
Third quarter 2015 Consolidated Net Cash Provided by Operating
Activities increased $152 million to $915 million, primarily driven by
the timing of the collection of outstanding receivables in the Dominican
Republic and an increase in VAT refunds related to the construction of
Cochrane in Chile, partially offset by increased working capital as a
result of higher energy purchases at Eletropaulo in Brazil.
For the nine months ended September 30, 3015, Proportional Free Cash
Flow increased $344 million to $948 million, primarily due to improved
working capital in MCAC and lower Parent interest expense. Key drivers
of the improvement in 2015 included:
-
US: A decrease of $25 million, primarily driven by lower
contributions as a result of the sale of a minority interest in IPL,
lower operating results and higher maintenance costs at IPL and lower
wind generation, partially offset by improved working capital and
operating performance at DPL.
-
Andes: An increase of $5 million, mainly driven by an increase
in VAT refunds related to the construction of Cochrane in Chile,
mostly offset by a higher tax payment at Chivor in Colombia.
-
Brazil: A decrease of $24 million, primarily driven by higher
energy purchases in the spot market as a result of unfavorable
hydrology at Tiete, partially offset by lower maintenance costs and
higher collections at Sul.
-
MCAC: An increase of $261 million, primarily driven by the
timing of the collection of outstanding receivables in the Dominican
Republic, improved operating performance in Panama and improved
working capital in El Salvador and Puerto Rico.
-
Europe: An increase of $40 million, primarily driven by
improved working capital at Maritza in Bulgaria and at IPP4 in Jordan,
partially offset by lower contributions from Kilroot in the United
Kingdom and from the sales of the Company's businesses in Africa, and
its wind businesses in the United Kingdom.
-
Asia: A decrease of $7 million, primarily related to the sale
of a minority interest in Masinloc in the Philippines and higher
working capital at Masinloc, partially offset by the commencement of
operations at Mong Duong in Vietnam.
-
Corp/Other: An increase of $94 million, primarily driven by
lower Parent interest expense as a result of the reduction in recourse
debt, as well as realized foreign currency gains associated with the
Company's on-going hedging activities.
For the nine months ended September 30, 2015, Consolidated Net Cash
Provided by Operating Activities increased $289 million to $1,505
million, primarily driven by improved working capital in MCAC, partially
offset by lower operating results and increased working capital at Tiete
in Brazil.
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Table 3: Adjusted PTC1 by SBU and
Adjusted EPS1
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$ in Millions, Except Per Share Amounts
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|
|
Third Quarter
|
|
|
Year-to-date September 30,
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|
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2015
|
|
|
2014
|
|
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Variance
|
|
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2015
|
|
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2014
|
|
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Variance
|
US
|
|
|
$
|
101
|
|
|
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$
|
156
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|
|
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$
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(55
|
)
|
|
|
$
|
263
|
|
|
|
$
|
311
|
|
|
|
$
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(48
|
)
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Andes
|
|
|
150
|
|
|
|
120
|
|
|
|
30
|
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$
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322
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|
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$
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277
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|
|
|
45
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Brazil
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23
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—
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23
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|
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$
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85
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|
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$
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184
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(99
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)
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MCAC
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92
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|
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124
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(32
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)
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$
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248
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|
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$
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284
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|
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(36
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)
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Europe
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45
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79
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(34
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)
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$
|
171
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|
|
|
$
|
267
|
|
|
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(96
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)
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Asia
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|
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24
|
|
|
|
2
|
|
|
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22
|
|
|
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$
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66
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|
|
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$
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33
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|
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33
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Total SBUs
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$
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435
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$
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481
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$
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(46
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)
|
|
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$
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1,155
|
|
|
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$
|
1,356
|
|
|
|
$
|
(201
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)
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Corp/Other
|
|
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(113
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)
|
|
|
(127
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)
|
|
|
14
|
|
|
|
$
|
(330
|
)
|
|
|
$
|
(419
|
)
|
|
|
89
|
|
Total AES Adjusted PTC1,2
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$
|
322
|
|
|
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$
|
354
|
|
|
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$
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(32
|
)
|
|
|
$
|
825
|
|
|
|
$
|
937
|
|
|
|
$
|
(112
|
)
|
Adjusted Effective Tax Rate
|
|
|
22
|
%
|
|
|
25
|
%
|
|
|
|
|
|
28
|
%
|
|
|
32
|
%
|
|
|
|
Diluted Share Count
|
|
|
682
|
|
|
|
740
|
|
|
|
|
|
|
694
|
|
|
|
727
|
|
|
|
|
Adjusted EPS1
|
|
|
$
|
0.39
|
|
|
|
$
|
0.37
|
|
|
|
$
|
0.02
|
|
|
|
$
|
0.88
|
|
|
|
$
|
0.89
|
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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1
|
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A non-GAAP financial measure. See “Non-GAAP Financial Measures” for
definitions and reconciliations to the most comparable GAAP
financial measures.
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2
|
|
Includes $59 million and $5 million of after-tax adjusted equity in
earnings for third quarter 2015 and 2014, respectively. Includes $77
million and $37 million of after-tax adjusted equity in earnings for
year-to-date September 30, 2015 and 2014, respectively.
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|
|
|
|
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|
For the three months ended September 30, 2015, Adjusted EPS was $0.39,
an increase of $0.02 compared to the same period last year, as described
above. Third quarter 2015 Adjusted PTC decreased $32 million to $322
million. Key operating drivers of Adjusted PTC included:
-
US: A decrease of $55 million, primarily driven by the expected
transition to market pricing for the Company's regulated load and
lower merchant volumes and prices at DPL.
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Andes: An increase of $30 million, primarily due to a
restructuring at Guacolda in Chile and higher energy prices at Chivor
in Colombia, partially offset by the devaluation in the Colombian Peso.
-
Brazil: An increase of $23 million, primarily driven by lower
spot purchases due to lower contracted requirements at Tiete,
partially offset by a weaker Brazilian Real.
-
MCAC: A decrease of $32 million, primarily driven by lower spot
sales, LNG sales and ancillary services in the Dominican Republic,
partially offset by improved hydrology in Panama.
-
Europe: A decrease of $34 million, primarily driven by a weaker
Euro and the timing of planned outages at Maritza in Bulgaria, the
sale of Ebute in Nigeria in 2014 and lower margins in the United
Kingdom.
-
Asia: An increase of $22 million, primarily due to improved
availability at Masinloc in the Philippines and the commencement of
operations at Mong Duong in Vietnam.
-
Corp/Other: An improvement of $14 million, primarily driven by
lower Parent interest expense as a result of the reduction in recourse
debt.
For the nine months ended September 30, 2015, Adjusted EPS decreased
$0.01, to $0.88, primarily driven by an overall negative contribution
from the Company's SBUs and devaluation in foreign currencies, partially
offset by capital allocation and a lower adjusted effective tax rate.
Year-to-date 2015 Adjusted PTC decreased $112 million to $825 million.
Key operating drivers of Adjusted PTC included:
-
US: A decrease of $48 million, primarily driven by lower wind
generation across the Company's wind portfolio and lower wholesale
margins at IPL, partially offset by improved availability and higher
capacity prices at DPL.
-
Andes: An increase of $45 million, primarily due to a
restructuring at Guacolda in Chile and higher energy prices and
generation at Chivor in Colombia, partially offset by a weaker
Colombian Peso.
-
Brazil: A decrease of $99 million, primarily due to lower
demand and higher fixed costs at Sul, the devaluation of the Brazilian
Real and the $21 million net impact of liability reversals at Sul in
2014 and at Eletropaulo in 2015.
-
MCAC: A decrease of $36 million, primarily driven by lower spot
sales, frequency regulation and planned maintenance in the Dominican
Republic, partially offset by higher generation and lower purchased
energy as a result of improved hydrology in Panama.
-
Europe: A decrease of $96 million, primarily driven by lower
dispatch and market prices, as well as outages at Kilroot in the
United Kingdom, the sales of Ebute in Nigeria and wind businesses in
the United Kingdom in 2014 and a weaker Euro at Maritza in Bulgaria.
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Asia: An increase of $33 million, primarily due to the
commencement of commercial operations at Mong Duong in Vietnam and
improved availability at Masinloc in the Philippines.
-
Corp/Other: An improvement of $89 million, primarily driven by
lower Parent interest expense as a result of the reduction in recourse
debt, as well as realized foreign currency gains associated with the
Company's on-going hedging activities.
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Table 4: Guidance & Expectations
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$ in Millions, Except Per Share Amounts
|
|
|
Full Year 2015 Guidance
|
|
Full Year 2016 Guidance
|
|
2017-2018 Expectations
|
|
|
Prior as of 8/10/15
|
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Current as of 11/5/15
|
|
Prior as of 5/11/15
|
|
Current as of 11/5/15
|
|
Prior as of 5/11/15
|
|
Current as of 11/5/15
|
Proportional Free Cash Flow1
|
|
|
$1,000- $1,350
|
|
No change
|
|
10%-15% Average annual growth
|
|
$1,125- $1,475
|
|
10%-15% Average annual growth
|
|
At least 10% average annual growth
|
Consolidated Net Cash Provided by Operating Activities
|
|
|
$1,900- $2,700
|
|
No change
|
|
N/A
|
|
$2,200- $3,000
|
|
N/A
|
|
N/A
|
Adjusted EPS1
|
|
|
$1.25-$1.35
|
|
$1.18-$1.25
|
|
Flat to modest growth
|
|
$1.05-$1.15
|
|
6%-8% Average annual growth, more weighted toward
2018
|
|
12%-16% Average annual growth, off the lower 2016
base
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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1
|
|
A non-GAAP financial measure. See “Non-GAAP Financial Measures” for
definitions and reconciliations to the most comparable GAAP
financial measures.
|
|
|
|
2015 Guidance
-
The Company's 2015 guidance is based on foreign currency and commodity
forward curves as of September 30, 2015.
-
The Company is reaffirming its Proportional Free Cash Flow guidance
range of $1,000-$1,350 million.
-
The Company is reaffirming its Consolidated Net Cash Provided by
Operating Activities guidance range of $1,900-$2,700 million.
-
The Company is lowering its Adjusted EPS guidance range to $1.18-$1.25
from $1.25-$1.35, which is primarily driven by:
-
The $0.04 impact from bringing forward foreign currency and
commodity curves from June 30, 2015 to September 30, 2015;
-
The $0.03 impact from lower demand and higher interest rates in
Brazil; and
-
A $0.02 impact from outages at DPL and AES Hawaii.
2016 Guidance and 2017-2018 Expectations
-
Outlook primarily reflects:
-
The negative impact from bringing forward foreign currency and
commodity curves from December 31, 2014 to October 15, 2015; and
-
Lower demand and higher interest rates in Brazil.
-
To mitigate the impact from these headwinds, the Company is
launching $150 million of additional cost reduction and revenue
enhancement initiatives, to be realized in $50 million of
incremental annual savings over three years, for an annual run
rate of $150 million in 2018.
-
Reflecting the drivers above, the Company is revising its prior
expectation of 10%-15% average annual growth in Proportional Free Cash
Flow and Parent Free Cash Flow in 2016-2018. The Company now expects
average annual growth of at least 10%.
-
The Company is providing its 2016 Proportional Free Cash Flow
guidance range of $1,125-$1,475 million, an increase of 11% from
the mid-point of its 2015 guidance of $1,000-$1,350 million.
-
The Company is expecting 2016 Parent Free Cash Flow of
$575-$675 million, an increase of 19% from the mid-point of
its 2015 expectation of $475-$575 million.
-
The Company is providing its 2016 Consolidated Net Cash Provided
by Operating Activities guidance range of $2,200-$3,000 million.
-
Lowering 2016-2018 Adjusted EPS expectations to reflect a more
significant impact from macroeconomic headwinds.
-
The Company is providing its 2016 Adjusted EPS guidance range of
$1.05-$1.15, which is approximately $0.20 lower than its prior
expectations. The revision reflects the $0.15 impact from foreign
currencies and commodities, the $0.05 impact from lower demand and
higher interest rates in Brazil and the $0.04 impact from
regulatory changes affecting capacity prices in the United Kingdom
and ancillary services in the Dominican Republic, as well as the
expected impact from El Nino.
-
The Company is expecting 12%-16% average annual growth in Adjusted
EPS for 2017-2018, relative to the prior expectation of 6%-8%
average annual growth off its prior 2015 Adjusted EPS guidance of
$1.25-$1.35.
-
The approximately $0.20 impact on 2016 Adjusted EPS from
macroeconomic headwinds is reduced to approximately $0.06 by 2018,
largely as a result of revenue enhancement and cost savings
initiatives.
Highlights
-
Year-to-Date, the Company invested $345 million to prepay and
refinance Parent debt.
-
Since September 2011, the Company has reduced Parent debt by $1.5
billion, or 23%.
-
Year-to-Date, the Company has repurchased 34 million shares for $423
million. The Company has a new authorization for $400 million,
available for share repurchases.
-
Since its second quarter 2015 earnings call in August 2015, the
Company has repurchased 10 million shares for $117 million.
-
Since September 2011, the Company has repurchased 111 million
shares, or 14% of its shares outstanding, for $1.4 billion.
-
The Company currently has 5,782 MW under construction and on track to
come on-line through 2018, as previously expected. These projects
represent $7 billion in total capital expenditures, with the majority
of AES' $1.1 billion in equity already funded.
-
Year-to-date, the Company has brought on-line 1,312 MW of new
capacity and expects to bring on-line an additional 203 MW before
the end of 2015.
-
In September, the Company won a competitive bid to supply 350 MW of
new capacity to the Electric Transmission Company, SA (ETESA),
Panama's electric transmission company. The project includes a 350 MW
combined cycle natural gas-fired plant with a 10-year Power Purchase
Agreement and a 170,000 m3 LNG storage tank and
regasification facility, to supply gas to the plant, as well as to
potentially serve growing demand for natural gas in Central America.
Construction of the project is expected to begin in early 2016, with
commercial operations expected in 2018.
-
In October, the Company closed the sale of its 50% interest in 130 MW
of operating solar in Italy for $42 million.
Non-GAAP Financial Measures
See Non-GAAP Financial Measures for definitions of Adjusted Earnings Per
Share, Adjusted Pre-Tax Contribution, Proportional Free Cash Flow, 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, 2015 Financial
Guidance Elements and 2016 Financial Guidance Elements.
Conference Call Information
AES will host a conference call on Thursday, November 5, 2015 at 9:00
a.m. Eastern Standard Time (EST). Interested parties may listen to the
teleconference by dialing 1-877-201-0168 at least ten minutes before the
start of the call. International callers should dial +1-647-788-4901.
The Conference ID for this call is 46340749. 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 18 countries through our
diverse portfolio of distribution businesses as well as thermal and
renewable generation facilities. Our workforce of 18,500 people is
committed to operational excellence and meeting the world’s changing
power needs. Our 2014 revenues were $17 billion and we own and manage
$39 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’ 2014 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 2014 Annual Report
on Form 10-K dated on or about February 25, 2015 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 September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
(in millions, except per share amounts)
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulated
|
|
|
$
|
1,903
|
|
|
|
$
|
2,378
|
|
|
|
$
|
5,991
|
|
|
|
$
|
6,636
|
|
Non-Regulated
|
|
|
1,818
|
|
|
|
2,063
|
|
|
|
5,572
|
|
|
|
6,378
|
|
Total revenue
|
|
|
3,721
|
|
|
|
4,441
|
|
|
|
11,563
|
|
|
|
13,014
|
|
Cost of Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulated
|
|
|
(1,660
|
)
|
|
|
(1,956
|
)
|
|
|
(5,101
|
)
|
|
|
(5,732
|
)
|
Non-Regulated
|
|
|
(1,388
|
)
|
|
|
(1,718
|
)
|
|
|
(4,314
|
)
|
|
|
(4,902
|
)
|
Total cost of sales
|
|
|
(3,048
|
)
|
|
|
(3,674
|
)
|
|
|
(9,415
|
)
|
|
|
(10,634
|
)
|
Operating margin
|
|
|
673
|
|
|
|
767
|
|
|
|
2,148
|
|
|
|
2,380
|
|
General and administrative expenses
|
|
|
(45
|
)
|
|
|
(45
|
)
|
|
|
(150
|
)
|
|
|
(148
|
)
|
Interest expense
|
|
|
(388
|
)
|
|
|
(390
|
)
|
|
|
(1,061
|
)
|
|
|
(1,086
|
)
|
Interest income
|
|
|
150
|
|
|
|
69
|
|
|
|
373
|
|
|
|
205
|
|
Loss on extinguishment of debt
|
|
|
(20
|
)
|
|
|
(47
|
)
|
|
|
(165
|
)
|
|
|
(196
|
)
|
Other expense
|
|
|
(18
|
)
|
|
|
(12
|
)
|
|
|
(52
|
)
|
|
|
(37
|
)
|
Other income
|
|
|
13
|
|
|
|
12
|
|
|
|
43
|
|
|
|
56
|
|
Gain on disposals and sale of investments
|
|
|
23
|
|
|
|
362
|
|
|
|
24
|
|
|
|
363
|
|
Goodwill impairment expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(154
|
)
|
Asset impairment expense
|
|
|
(231
|
)
|
|
|
(15
|
)
|
|
|
(276
|
)
|
|
|
(90
|
)
|
Foreign currency transaction gains (losses)
|
|
|
9
|
|
|
|
(79
|
)
|
|
|
1
|
|
|
|
(91
|
)
|
Other non-operating expense
|
|
|
—
|
|
|
|
(16
|
)
|
|
|
—
|
|
|
|
(60
|
)
|
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS
OF AFFILIATES
|
|
|
166
|
|
|
|
606
|
|
|
|
885
|
|
|
|
1,142
|
|
Income tax expense
|
|
|
(45
|
)
|
|
|
(92
|
)
|
|
|
(261
|
)
|
|
|
(303
|
)
|
Net equity in earnings (losses) of affiliates
|
|
|
82
|
|
|
|
(6
|
)
|
|
|
97
|
|
|
|
39
|
|
INCOME FROM CONTINUING OPERATIONS
|
|
|
203
|
|
|
|
508
|
|
|
|
721
|
|
|
|
878
|
|
Income from operations of discontinued businesses, net of income
tax expense of $0, $0, $0 and $22, respectively
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
27
|
|
Net loss from disposal and impairments of discontinued businesses,
net of income tax expense of $0, $0, $0 and $4, respectively
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(56
|
)
|
NET INCOME
|
|
|
203
|
|
|
|
508
|
|
|
|
721
|
|
|
|
849
|
|
Noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: (Income) from continuing operations attributable to
noncontrolling interests
|
|
|
(23
|
)
|
|
|
(20
|
)
|
|
|
(330
|
)
|
|
|
(295
|
)
|
Less: Loss from discontinued operations attributable to
noncontrolling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9
|
|
Total net income attributable to noncontrolling interests
|
|
|
(23
|
)
|
|
|
(20
|
)
|
|
|
(330
|
)
|
|
|
(286
|
)
|
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION
|
|
|
$
|
180
|
|
|
|
$
|
488
|
|
|
|
$
|
391
|
|
|
|
$
|
563
|
|
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of tax
|
|
|
$
|
180
|
|
|
|
$
|
488
|
|
|
|
$
|
391
|
|
|
|
$
|
583
|
|
Loss from discontinued operations, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(20
|
)
|
Net income
|
|
|
$
|
180
|
|
|
|
$
|
488
|
|
|
|
$
|
391
|
|
|
|
$
|
563
|
|
BASIC EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
$
|
0.27
|
|
|
|
$
|
0.68
|
|
|
|
$
|
0.57
|
|
|
|
$
|
0.81
|
|
Loss from discontinued operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.03
|
)
|
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS
|
|
|
$
|
0.27
|
|
|
|
$
|
0.68
|
|
|
|
$
|
0.57
|
|
|
|
$
|
0.78
|
|
DILUTED EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
$
|
0.26
|
|
|
|
$
|
0.67
|
|
|
|
$
|
0.56
|
|
|
|
$
|
0.81
|
|
Loss from discontinued operations attributable to The AES
Corporation common stockholders, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.03
|
)
|
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS
|
|
|
$
|
0.26
|
|
|
|
$
|
0.67
|
|
|
|
$
|
0.56
|
|
|
|
$
|
0.78
|
|
DILUTED SHARES OUTSTANDING
|
|
|
682
|
|
|
|
740
|
|
|
|
694
|
|
|
|
727
|
|
DIVIDENDS DECLARED PER COMMON SHARE
|
|
|
$
|
0.10
|
|
|
|
$
|
0.05
|
|
|
|
$
|
0.20
|
|
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
|
Strategic Business Unit (SBU) Information
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
(in millions)
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
US
|
|
|
$
|
923
|
|
|
|
$
|
1,002
|
|
|
|
$
|
2,751
|
|
|
|
$
|
2,896
|
|
Andes
|
|
|
652
|
|
|
|
704
|
|
|
|
1,894
|
|
|
|
2,048
|
|
Brazil
|
|
|
1,065
|
|
|
|
1,548
|
|
|
|
3,710
|
|
|
|
4,526
|
|
MCAC
|
|
|
597
|
|
|
|
693
|
|
|
|
1,796
|
|
|
|
2,023
|
|
Europe
|
|
|
292
|
|
|
|
371
|
|
|
|
921
|
|
|
|
1,067
|
|
Asia
|
|
|
195
|
|
|
|
125
|
|
|
|
501
|
|
|
|
456
|
|
Corporate, Other and Inter-SBU eliminations
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
(10
|
)
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
|
|
|
$
|
3,721
|
|
|
|
$
|
4,441
|
|
|
|
$
|
11,563
|
|
|
|
$
|
13,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
|
Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015
|
|
|
December 31, 2014
|
|
|
|
(in millions, except share and per share data)
|
ASSETS
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
1,437
|
|
|
|
$
|
1,539
|
|
Restricted cash
|
|
|
341
|
|
|
|
283
|
|
Short-term investments
|
|
|
453
|
|
|
|
709
|
|
Accounts receivable, net of allowance for doubtful accounts of $85
and $96, respectively
|
|
|
2,477
|
|
|
|
2,709
|
|
Inventory
|
|
|
670
|
|
|
|
702
|
|
Deferred income taxes
|
|
|
155
|
|
|
|
275
|
|
Prepaid expenses
|
|
|
121
|
|
|
|
175
|
|
Other current assets
|
|
|
1,514
|
|
|
|
1,434
|
|
Current assets of held-for-sale businesses
|
|
|
52
|
|
|
|
—
|
|
Total current assets
|
|
|
7,220
|
|
|
|
7,826
|
|
NONCURRENT ASSETS
|
|
|
|
|
|
|
Property, Plant and Equipment:
|
|
|
|
|
|
|
Land
|
|
|
704
|
|
|
|
870
|
|
Electric generation, distribution assets and other
|
|
|
28,307
|
|
|
|
30,459
|
|
Accumulated depreciation
|
|
|
(9,264
|
)
|
|
|
(9,962
|
)
|
Construction in progress
|
|
|
2,716
|
|
|
|
3,784
|
|
Property, plant and equipment, net
|
|
|
22,463
|
|
|
|
25,151
|
|
Other Assets:
|
|
|
|
|
|
|
Investments in and advances to affiliates
|
|
|
601
|
|
|
|
537
|
|
Debt service reserves and other deposits
|
|
|
339
|
|
|
|
411
|
|
Goodwill
|
|
|
1,473
|
|
|
|
1,458
|
|
Other intangible assets, net of accumulated amortization of $131 and
$158, respectively
|
|
|
251
|
|
|
|
281
|
|
Deferred income taxes
|
|
|
503
|
|
|
|
662
|
|
Service concession assets
|
|
|
1,554
|
|
|
|
—
|
|
Other noncurrent assets
|
|
|
2,596
|
|
|
|
2,640
|
|
Total other assets
|
|
|
7,317
|
|
|
|
5,989
|
|
TOTAL ASSETS
|
|
|
$
|
37,000
|
|
|
|
$
|
38,966
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
1,729
|
|
|
|
$
|
2,278
|
|
Accrued interest
|
|
|
341
|
|
|
|
260
|
|
Accrued and other liabilities
|
|
|
2,134
|
|
|
|
2,326
|
|
Recourse debt
|
|
|
—
|
|
|
|
151
|
|
Non-recourse debt, including $217 and $240, respectively, related to
variable interest entities
|
|
|
2,300
|
|
|
|
1,982
|
|
Current liabilities of held-for-sale businesses
|
|
|
30
|
|
|
|
—
|
|
Total current liabilities
|
|
|
6,534
|
|
|
|
6,997
|
|
NONCURRENT LIABILITIES
|
|
|
|
|
|
|
Recourse debt
|
|
|
5,107
|
|
|
|
5,107
|
|
Non-recourse debt, including $1,050 and $1,030, respectively,
related to variable interest entities
|
|
|
13,291
|
|
|
|
13,618
|
|
Deferred income taxes
|
|
|
1,185
|
|
|
|
1,277
|
|
Pension and other post-retirement liabilities
|
|
|
978
|
|
|
|
1,342
|
|
Other noncurrent liabilities
|
|
|
2,906
|
|
|
|
3,222
|
|
Total noncurrent liabilities
|
|
|
23,467
|
|
|
|
24,566
|
|
Contingencies and Commitments (see Note 9)
|
|
|
|
|
|
|
Redeemable stock of subsidiaries
|
|
|
538
|
|
|
|
78
|
|
EQUITY
|
|
|
|
|
|
|
THE AES CORPORATION STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
Common stock ($0.01 par value, 1,200,000,000 shares authorized;
815,846,624 issued and 674,461,074 outstanding at September
30, 2015 and 814,539,146 issued and 703,851,297 outstanding
at December 31, 2014)
|
|
|
8
|
|
|
|
8
|
|
Additional paid-in capital
|
|
|
8,710
|
|
|
|
8,409
|
|
Retained earnings
|
|
|
370
|
|
|
|
512
|
|
Accumulated other comprehensive loss
|
|
|
(3,758
|
)
|
|
|
(3,286
|
)
|
Treasury stock, at cost (141,385,550 shares at September 30, 2015
and 110,687,849 shares at December 31, 2014)
|
|
|
(1,763
|
)
|
|
|
(1,371
|
)
|
Total AES Corporation stockholders’ equity
|
|
|
3,567
|
|
|
|
4,272
|
|
NONCONTROLLING INTERESTS
|
|
|
2,894
|
|
|
|
3,053
|
|
Total equity
|
|
|
6,461
|
|
|
|
7,325
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
$
|
37,000
|
|
|
|
$
|
38,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
|
Condensed Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
(in millions)
|
|
|
|
|
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
203
|
|
|
|
$
|
508
|
|
|
|
$
|
721
|
|
|
|
$
|
849
|
|
Adjustments to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
283
|
|
|
|
312
|
|
|
|
880
|
|
|
|
937
|
|
Gain on sale of businesses
|
|
|
(24
|
)
|
|
|
(363
|
)
|
|
|
(24
|
)
|
|
|
(363
|
)
|
Impairment expenses
|
|
|
231
|
|
|
|
31
|
|
|
|
276
|
|
|
|
304
|
|
Deferred income taxes
|
|
|
(25
|
)
|
|
|
31
|
|
|
|
(8
|
)
|
|
|
83
|
|
Releases of contingencies
|
|
|
43
|
|
|
|
7
|
|
|
|
(91
|
)
|
|
|
(41
|
)
|
Loss on the extinguishment of debt
|
|
|
20
|
|
|
|
47
|
|
|
|
165
|
|
|
|
196
|
|
Loss on sale of assets
|
|
|
11
|
|
|
|
11
|
|
|
|
23
|
|
|
|
19
|
|
Loss on disposals and impairments — discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
51
|
|
Other
|
|
|
(20
|
)
|
|
|
90
|
|
|
|
50
|
|
|
|
135
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable
|
|
|
130
|
|
|
|
(182
|
)
|
|
|
(314
|
)
|
|
|
(494
|
)
|
(Increase) decrease in inventory
|
|
|
43
|
|
|
|
(36
|
)
|
|
|
(11
|
)
|
|
|
(75
|
)
|
(Increase) decrease in prepaid expenses and other current assets
|
|
|
245
|
|
|
|
60
|
|
|
|
377
|
|
|
|
(12
|
)
|
(Increase) decrease in other assets
|
|
|
(288
|
)
|
|
|
(123
|
)
|
|
|
(1,103
|
)
|
|
|
(439
|
)
|
Increase (decrease) in accounts payable and other current liabilities
|
|
|
59
|
|
|
|
180
|
|
|
|
238
|
|
|
|
(14
|
)
|
Increase (decrease) in income tax payables, net and other tax
payables
|
|
|
5
|
|
|
|
(63
|
)
|
|
|
(126
|
)
|
|
|
(239
|
)
|
Increase (decrease) in other liabilities
|
|
|
(1
|
)
|
|
|
253
|
|
|
|
452
|
|
|
|
319
|
|
Net cash provided by operating activities
|
|
|
915
|
|
|
|
763
|
|
|
|
1,505
|
|
|
|
1,216
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
|
(519
|
)
|
|
|
(481
|
)
|
|
|
(1,687
|
)
|
|
|
(1,389
|
)
|
Acquisitions, net of cash acquired
|
|
|
1
|
|
|
|
—
|
|
|
|
(17
|
)
|
|
|
(728
|
)
|
Proceeds from the sale of businesses, net of cash sold
|
|
|
94
|
|
|
|
778
|
|
|
|
96
|
|
|
|
1,668
|
|
Proceeds from the sale of assets
|
|
|
—
|
|
|
|
13
|
|
|
|
1
|
|
|
|
29
|
|
Sale of short-term investments
|
|
|
1,223
|
|
|
|
1,137
|
|
|
|
3,683
|
|
|
|
3,335
|
|
Purchase of short-term investments
|
|
|
(1,335
|
)
|
|
|
(1,461
|
)
|
|
|
(3,605
|
)
|
|
|
(3,386
|
)
|
(Increase) decrease in restricted cash, debt service reserves and
other assets
|
|
|
(9
|
)
|
|
|
35
|
|
|
|
(60
|
)
|
|
|
162
|
|
Other investing
|
|
|
(24
|
)
|
|
|
6
|
|
|
|
(50
|
)
|
|
|
(55
|
)
|
Net cash (used in) provided by investing activities
|
|
|
(569
|
)
|
|
|
27
|
|
|
|
(1,639
|
)
|
|
|
(364
|
)
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings under the revolving credit facilities
|
|
|
316
|
|
|
|
21
|
|
|
|
677
|
|
|
|
758
|
|
Repayments under the revolving credit facilities
|
|
|
(285
|
)
|
|
|
(137
|
)
|
|
|
(644
|
)
|
|
|
(744
|
)
|
Issuance of recourse debt
|
|
|
—
|
|
|
|
—
|
|
|
|
575
|
|
|
|
1,525
|
|
Repayments of recourse debt
|
|
|
—
|
|
|
|
(356
|
)
|
|
|
(915
|
)
|
|
|
(2,019
|
)
|
Issuance of non-recourse debt
|
|
|
1,341
|
|
|
|
543
|
|
|
|
3,281
|
|
|
|
2,253
|
|
Repayments of non-recourse debt
|
|
|
(1,011
|
)
|
|
|
(290
|
)
|
|
|
(2,468
|
)
|
|
|
(1,639
|
)
|
Payments for financing fees
|
|
|
(25
|
)
|
|
|
(6
|
)
|
|
|
(65
|
)
|
|
|
(111
|
)
|
Distributions to noncontrolling interests
|
|
|
(69
|
)
|
|
|
(180
|
)
|
|
|
(182
|
)
|
|
|
(377
|
)
|
Contributions from noncontrolling interests
|
|
|
20
|
|
|
|
4
|
|
|
|
117
|
|
|
|
114
|
|
Proceeds from the sale of redeemable stock of subsidiaries
|
|
|
—
|
|
|
|
—
|
|
|
|
461
|
|
|
|
—
|
|
Dividends paid on AES common stock
|
|
|
(68
|
)
|
|
|
(36
|
)
|
|
|
(209
|
)
|
|
|
(108
|
)
|
Payments for financed capital expenditures
|
|
|
(26
|
)
|
|
|
(48
|
)
|
|
|
(110
|
)
|
|
|
(360
|
)
|
Purchase of treasury stock
|
|
|
(101
|
)
|
|
|
(108
|
)
|
|
|
(408
|
)
|
|
|
(140
|
)
|
Other financing
|
|
|
5
|
|
|
|
(1
|
)
|
|
|
(24
|
)
|
|
|
4
|
|
Net cash provided by (used in) financing activities
|
|
|
97
|
|
|
|
(594
|
)
|
|
|
86
|
|
|
|
(844
|
)
|
Effect of exchange rate changes on cash
|
|
|
(21
|
)
|
|
|
(41
|
)
|
|
|
(40
|
)
|
|
|
(55
|
)
|
Decrease in cash of discontinued businesses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
75
|
|
Cash at held-for-sale businesses
|
|
|
(7
|
)
|
|
|
—
|
|
|
|
(14
|
)
|
|
|
—
|
|
Total (decrease) increase in cash and cash equivalents
|
|
|
415
|
|
|
|
155
|
|
|
|
(102
|
)
|
|
|
28
|
|
Cash and cash equivalents, beginning
|
|
|
1,022
|
|
|
|
1,515
|
|
|
|
1,539
|
|
|
|
1,642
|
|
Cash and cash equivalents, ending
|
|
|
$
|
1,437
|
|
|
|
$
|
1,670
|
|
|
|
$
|
1,437
|
|
|
|
$
|
1,670
|
|
SUPPLEMENTAL DISCLOSURES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash payments for interest, net of amounts capitalized
|
|
|
$
|
210
|
|
|
|
$
|
226
|
|
|
|
$
|
875
|
|
|
|
$
|
902
|
|
Cash payments for income taxes, net of refunds
|
|
|
$
|
72
|
|
|
|
$
|
69
|
|
|
|
$
|
319
|
|
|
|
$
|
401
|
|
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets received upon sale of subsidiaries
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
|
$
|
44
|
|
Assets acquired through capital lease
|
|
|
$
|
2
|
|
|
|
$
|
—
|
|
|
|
$
|
12
|
|
|
|
$
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE AES CORPORATION
|
NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
(in millions)
|
Calculation of Maintenance Capital Expenditures for Free Cash
Flow (1) Reconciliation Below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance Capital Expenditures
|
|
|
$
|
111
|
|
|
|
$
|
169
|
|
|
|
$
|
417
|
|
|
|
$
|
458
|
|
Environmental Capital Expenditures
|
|
|
63
|
|
|
|
62
|
|
|
|
193
|
|
|
|
172
|
|
Growth Capital Expenditures
|
|
|
371
|
|
|
|
298
|
|
|
|
1,187
|
|
|
|
1,119
|
|
Total Capital Expenditures
|
|
|
$
|
545
|
|
|
|
$
|
529
|
|
|
|
$
|
1,797
|
|
|
|
$
|
1,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Proportional Operating Cash Flow(2)
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Cash Flow
|
|
|
$
|
915
|
|
|
|
$
|
763
|
|
|
|
$
|
1,505
|
|
|
|
$
|
1,216
|
|
Add: capital expenditures related to service concession assets (4)
|
|
|
77
|
|
|
|
—
|
|
|
|
148
|
|
|
|
—
|
|
Less: Proportional Adjustment Factor (3) (6)
|
|
|
(276
|
)
|
|
|
|
(208
|
)
|
|
|
|
(361
|
)
|
|
|
|
(251
|
)
|
Proportional Operating Cash Flow (2)
|
|
|
$
|
716
|
|
|
|
$
|
555
|
|
|
|
$
|
1,292
|
|
|
|
$
|
965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Operating Cash Flow
|
|
|
$
|
915
|
|
|
|
$
|
763
|
|
|
|
$
|
1,505
|
|
|
|
$
|
1,216
|
|
Add: capital expenditures related to service concession assets (4)
|
|
|
77
|
|
|
|
—
|
|
|
|
148
|
|
|
|
—
|
|
Less: Maintenance Capital Expenditures, net of reinsurance proceeds
|
|
|
(111
|
)
|
|
|
|
(169
|
)
|
|
|
|
(417
|
)
|
|
|
|
(458
|
)
|
Less: Non-Recoverable Environmental Capital Expenditures
|
|
|
(17
|
)
|
|
|
|
(16
|
)
|
|
|
|
(43
|
)
|
|
|
|
(52
|
)
|
Free Cash Flow(1)
|
|
|
$
|
864
|
|
|
|
$
|
578
|
|
|
|
$
|
1,193
|
|
|
|
$
|
706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Proportional Free Cash Flow(1),(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Proportional Adjusted Operating Cash Flow
|
|
|
$
|
716
|
|
|
|
$
|
555
|
|
|
|
$
|
1,292
|
|
|
|
$
|
965
|
|
Less: Proportional Maintenance Capital Expenditures, net of
reinsurance proceeds (3)
|
|
|
(80
|
)
|
|
|
(116
|
)
|
|
|
(310
|
)
|
|
|
(322
|
)
|
Less: Proportional Non-Recoverable Environmental Capital
Expenditures (3) (5)
|
|
|
(15
|
)
|
|
|
(12
|
)
|
|
|
(34
|
)
|
|
|
(39
|
)
|
Proportional Free Cash Flow(1),(2)
|
|
|
$
|
621
|
|
|
|
$
|
427
|
|
|
|
$
|
948
|
|
|
|
$
|
604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Free cash flow (a non-GAAP financial measure) is defined as net cash
from operating activities 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.
|
(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 from 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)
|
|
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 non-controlling interests for
each entity by its corresponding consolidated cash flow metric and
adding up the resulting figures. For example, the Company owns
approximately 71% of AES Gener, its subsidiary in Chile. Assuming a
consolidated net cash flow from operating activities of $100 from
AES Gener, the proportional adjustment factor for AES Gener would
equal approximately $29 (or $100 x 29%). The Company calculates the
proportional adjustment factor for each consolidated business in
this manner and then adds these amounts together 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.
|
(4)
|
|
Service concession asset expenditures excluded from free cash flow
and proportional free cash flow non-GAAP metric.
|
(5)
|
|
Excludes IPALCO’s proportional recoverable environmental capital
expenditures of $35 million and $47 million for the three months
ended September 30, 2015 and September 30, 2014, as well as, $121
million and $121 million for the nine months ended September 30,
2015 and September 30, 2014, respectively.
|
(6)
|
|
Includes proportional adjustment amount for service concession asset
expenditures of $39 million and $76 million for the three and nine
months ended September 30, 2015. 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 pre-tax contribution (“adjusted PTC”) and Adjusted earnings per
share (“adjusted EPS”) are non-GAAP supplemental measures that are used
by management and external users of our consolidated financial
statements such as investors, industry analysts and lenders.
We define adjusted PTC 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.
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 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 September 30, 2015
|
|
|
|
Three Months Ended September 30, 2014
|
|
|
|
Nine Months Ended September 30, 2015
|
|
|
|
Nine Months Ended September 30, 2014
|
|
|
|
|
Net of NCI(1)
|
|
Per Share (Diluted) Net of NCI(1) and
Tax
|
|
|
|
Net of NCI(1)
|
|
Per Share (Diluted) Net of NCI(1) and
Tax
|
|
|
|
Net of NCI(1)
|
|
Per Share (Diluted) Net of NCI(1) and
Tax
|
|
|
|
Net of NCI(1)
|
|
Per Share (Diluted) Net of NCI(1) and
Tax
|
|
|
|
|
(In millions, except per share amounts)
|
|
|
Income (loss) from continuing operations
attributable to AES and Diluted EPS
|
|
$
|
180
|
|
|
$
|
0.26
|
|
|
|
|
$
|
488
|
|
|
$
|
0.67
|
|
|
|
|
$
|
391
|
|
|
$
|
0.56
|
|
|
|
|
$
|
583
|
|
|
$
|
0.81
|
|
|
|
Add back income tax expense (benefit) from continuing
operations attributable to AES
|
|
11
|
|
|
|
|
|
|
64
|
|
|
|
|
|
|
107
|
|
|
|
|
|
|
138
|
|
|
|
|
|
Pre-tax contribution
|
|
$
|
191
|
|
|
|
|
|
|
$
|
552
|
|
|
|
|
|
|
$
|
498
|
|
|
|
|
|
|
$
|
721
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized derivative (gains)/ losses(2)
|
|
$
|
(12
|
)
|
|
$
|
(0.01
|
)
|
|
|
|
$
|
11
|
|
|
$
|
0.01
|
|
|
|
|
$
|
(29
|
)
|
|
$
|
(0.03
|
)
|
|
|
|
$
|
(21
|
)
|
|
$
|
(0.02
|
)
|
|
|
Unrealized foreign currency transaction (gains)/ losses(3)
|
|
6
|
|
|
—
|
|
|
|
|
62
|
|
|
0.06
|
|
|
|
|
50
|
|
|
0.05
|
|
|
|
|
95
|
|
|
0.07
|
|
|
|
Disposition/ acquisition (gains)/ losses
|
|
(23
|
)
|
|
(0.02
|
)
|
|
((4
|
))
|
|
(367
|
)
|
|
(0.51
|
)
|
|
((5
|
))
|
|
(32
|
)
|
|
(0.04
|
)
|
|
((4
|
))
|
|
(366
|
)
|
|
(0.51
|
)
|
|
((5
|
))
|
Impairment losses
|
|
139
|
|
|
0.14
|
|
|
((6
|
))
|
|
30
|
|
|
0.08
|
|
|
((7
|
))
|
|
175
|
|
|
0.18
|
|
|
((8
|
))
|
|
295
|
|
|
0.34
|
|
|
((9
|
))
|
Loss on extinguishment of debt
|
|
21
|
|
|
0.02
|
|
|
((10
|
))
|
|
66
|
|
|
0.06
|
|
|
((11
|
))
|
|
163
|
|
|
0.16
|
|
|
((12
|
))
|
|
213
|
|
|
0.20
|
|
|
((13
|
))
|
Adjusted PTC and Adjusted EPS
|
|
$
|
322
|
|
|
$
|
0.39
|
|
|
|
|
$
|
354
|
|
|
$
|
0.37
|
|
|
|
|
$
|
825
|
|
|
$
|
0.88
|
|
|
|
|
$
|
937
|
|
|
$
|
0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________
(1)
|
|
NCI is defined as Noncontrolling Interests.
|
(2)
|
|
Unrealized derivative (gains) losses were net of income tax per
share of (0.01) and $0.00 in the three months ended September 30,
2015 and 2014, and of $(0.01) and $(0.01) in the nine months ended
September 30, 2015 and 2014, respectively.
|
(3)
|
|
Unrealized foreign currency transaction (gains) losses were net of
income tax per share of $0.01 and $0.03 in the three months ended
September 30, 2015 and 2014, and of $0.03 and $0.04 in the nine
months ended September 30, 2015 and 2014, respectively.
|
(4)
|
|
Amount primarily relates to the gain from the sale of Armenia
Mountain of $22 million ($14 million, or $0.02 per share, net of
income tax per share of $0.01).
|
(5)
|
|
Amount primarily relates to the gain from the sale of a
noncontrolling interest in Masinloc of $283 million ($283 million,
or $0.39 per share, net of income tax per share of $0.00), the gain
from the sale of the UK Wind (Operating Projects) of $78 million
($78 million, or $0.11 per share, net of income tax per share of
$0.00), the tax benefit of $12 million ($0.02 per share) associated
with the agreement executed in September 2014 to sell a
noncontrolling interest in our Dominican Republic businesses, and
the tax expense of $4 million ($0.01 per share) related to the
Silver Ridge Power transaction.
|
(6)
|
|
Amount primarily relates to the asset impairments at Kilroot of $113
million ($74 million, or $0.11 per share, net of income tax per
share of $0.05) and at Buffalo Gap III of $118 million ($18 million,
or $0.03 per share, net of noncontrolling interest of $90 million
and of income tax per share of $0.01).
|
(7)
|
|
Amount primarily relates to the other-than-temporary impairment of
our equity method investment at Entek of $18 million ($12 million,
or $0.02 per share, net of income tax per share of $0.01), the asset
impairment at Ebute of $15 million ($23 million, or $0.03 per share,
net of noncontrolling interest of $1 million and of income tax per
share of $(0.01)), and a tax benefit of $25 million ($0.03 per
share) associated with the previously recognized goodwill impairment
at DPLER.
|
(8)
|
|
Amount primarily relates to the asset impairments at Kilroot of $113
million ($74 million, or $0.11 per share, net of income tax per
share of $0.05), at UK Wind (Development Projects) of $38 million
($30 million, or $0.04 per share, net of income tax per share of
$0.00), and at Buffalo Gap III of $118 million ($18 million, or
$0.03 per share, net of noncontrolling interest of $90 million and
of income tax per share of $0.01).
|
(9)
|
|
Amount primarily relates to the goodwill impairments at DPLER of
$136 million ($117 million, or $0.16 per share, net of income tax
per share of $0.03), and at Buffalo Gap of $18 million ($18 million,
or $0.03 per share, net of income tax per share of $0.00) and asset
impairments at Ebute of $67 million ($57 million, or $0.08 per
share, net of noncontrolling interest of $3 million and of income
tax per share of $0.01), at DPL of $12 million ($8 million, or $0.01
per share, net of income tax per share of $0.01), and at UK Wind
(Newfield) of $11 million ($6 million, or $0.00 per share, net of
noncontrolling interest of $6 million and of income tax per share of
$0.00) as well as the other-than-temporary impairments of our equity
method investment at Silver Ridge Power of $42 million ($28 million,
or $0.04 per share, net of income tax per share of $0.02) and at
Entek of $18 million ($12 million, or $0.02 per share, net of income
tax per share of $0.01).
|
(10)
|
|
Amount primarily relates to the loss on early retirement of debt at
Gener of $11 million ($5 million, or $0.01 per share, net of
noncontrolling interest of $3 million and of income tax per share of
$0.00), at Electrica Ventanas of $7 million ($3 million, or $0.00
per share, net of noncontrolling interest of $2 million and of
income tax per share of $0.00), at the Parent Company of $3 million
($0 million, or $0.00 per share, net of income tax per share of
$0.00), and at IPL of $3 million ($1 million, or $0.00 per share,
net of income tax per share of $0.00).
|
(11)
|
|
Amount primarily relates to the loss on early retirement of debt at
the Parent Company of $43 million ($25 million, or $0.03 per share,
net of income tax per share of $0.03), at UK Wind (Operating
Projects) of $18 million ($14 million, or $0.02 per share, net of
income tax per share of $0.01), at Gener of $6 million ($3 million,
or $0.00 per share, net of noncontrolling interest of $2 million and
income tax per share of $0.00).
|
(12)
|
|
Amount primarily relates to the loss on early retirement of debt at
the Parent Company of $113 million ($76 million, or $0.11 per share,
net of income tax per share of $0.05), at IPL of $22 million ($11
million, or $0.02 per share, net of noncontrolling interest of $5
million and of income tax per share of $0.01), at Panama of $15
million ($5 million, or $0.01 per share, net of noncontrolling
interest of $7 million and of income tax per share of $0.00), at
Gener of $11 million ($5 million, or $0.01 per share, net of
noncontrolling interest of $3 million and of income tax per share of
$0.00), at Electrica Ventanas of $7 million ($3 million, or $0.00
per share, net of noncontrolling interest of $2 million and of
income tax per share of $0.00), and at Sul of $4 million ($3
million, or $0.00 per share, net of income tax per share of $0.00).
|
(13)
|
|
Amount primarily relates to the loss on early retirement of debt at
the Parent Company of $188 million ($123 million, or $0.17 per
share, net of income tax per share of $0.09), at UK Wind (Operating
Projects) of $18 million ($14 million, or $0.02 per share, net of
income tax per share of $0.01), and at Gener of $8 million ($4
million, or $0.01 per share, net of noncontrolling interest of $2
million and income tax per share of $0.00).
|
|
|
|
|
|
|
|
The AES Corporation
|
Parent Financial Information
|
Parent only data: last four quarters
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
Quarters Ended
|
Total subsidiary distributions & returns
of capital to Parent
|
|
|
September 30, 2015
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
December 31, 2014
|
|
|
Actual
|
|
|
|
Actual
|
|
|
|
Actual
|
|
|
|
Actual
|
Subsidiary distributions(1) to Parent & QHCs
|
|
|
$
|
917
|
|
|
|
$
|
1,119
|
|
|
|
$
|
1,094
|
|
|
|
$
|
1,151
|
Returns of capital distributions to Parent & QHCs
|
|
|
26
|
|
|
|
57
|
|
|
|
75
|
|
|
|
85
|
Total subsidiary distributions & returns of capital to Parent
|
|
|
$
|
943
|
|
|
|
$
|
1,176
|
|
|
|
$
|
1,169
|
|
|
|
$
|
1,236
|
Parent only data: quarterly
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions)
|
|
|
Quarter Ended
|
Total subsidiary distributions & returns
of capital to Parent
|
|
|
September 30, 2015
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
December 31, 2014
|
|
|
Actual
|
|
|
|
Actual
|
|
|
|
Actual
|
|
|
|
Actual
|
Subsidiary distributions to Parent & QHCs
|
|
|
$
|
93
|
|
|
|
$
|
235
|
|
|
|
$
|
175
|
|
|
|
$
|
414
|
Returns of capital distributions to Parent & QHCs
|
|
|
0
|
|
|
|
8
|
|
|
|
0
|
|
|
|
18
|
Total subsidiary distributions & returns of capital to Parent
|
|
|
$
|
93
|
|
|
|
$
|
243
|
|
|
|
$
|
175
|
|
|
|
$
|
432
|
Parent Company Liquidity (2)
|
|
|
|
|
|
|
($ in millions)
|
|
|
Balance at
|
|
|
|
September 30, 2015
|
|
|
|
June 30, 2015
|
|
|
|
March 31, 2015
|
|
|
|
December 31, 2014
|
|
|
|
Actual
|
|
|
|
Actual
|
|
|
|
Actual
|
|
|
|
Actual
|
Cash at Parent & Cash at QHCs (3)
|
|
|
$
|
6
|
|
|
|
$
|
40
|
|
|
|
$
|
292
|
|
|
|
$
|
507
|
Availability under credit facilities
|
|
|
625
|
|
|
|
739
|
|
|
|
739
|
|
|
|
739
|
Ending liquidity
|
|
|
$
|
631
|
|
|
|
$
|
779
|
|
|
|
$
|
1031
|
|
|
|
$
|
1246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Subsidiary distributions should not be construed as an alternative
to Net Cash Provided by Operating Activities which are 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 availability under corporate credit facilities 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’s 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.
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THE AES CORPORATION
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2015 FINANCIAL GUIDANCE ELEMENTS(1), (2)
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2015 Financial Guidance
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As of 11/5/15
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Consolidated
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Proportional
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Income Statement Guidance
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Adjusted Earnings Per Share (3)
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$1.18-$1.25
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Cash Flow Guidance
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Net Cash Provided by Operating Activities
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$1,900-$2,700 million
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Free Cash Flow (4)
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$1,000-$1,350 million
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Reconciliation of Free Cash Flow Guidance
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Net Cash from Operating Activities
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$1,900-$2,700 million
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$1,600-$1,950 million
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Less: Maintenance Capital Expenditures
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$650-$950 million
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$450-$750 million
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Free Cash Flow (4)
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$1,100-$1,900 million
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$1,000-$1,350 million
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(1)
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2015 Guidance is based on expectations for future foreign exchange
rates and commodity prices as of September 30, 2015.
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(2)
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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 from 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.
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(3)
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Adjusted earnings per share (a non-GAAP financial measure) is
defined as diluted earnings per share from continuing operations
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. 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.
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(4)
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Free Cash Flow is reconciled above. Free cash flow (a non-GAAP
financial measure) is defined as net cash from operating activities
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.
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THE AES CORPORATION
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2016 FINANCIAL GUIDANCE ELEMENTS(1), (2)
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2016 Financial Guidance
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As of 11/5/15
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Consolidated
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Proportional
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Income Statement Guidance
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Adjusted Earnings Per Share (3)
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$1.05-$1.15
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Cash Flow Guidance
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Net Cash Provided by Operating Activities
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$2,200-$3,000
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Free Cash Flow (4)
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$1,125-$1,475
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Reconciliation of Free Cash Flow Guidance
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Net Cash from Operating Activities
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$2,200-$3,000
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$1,625-$1,975
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Less: Maintenance Capital Expenditures
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$550-$850
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$350-$650
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Free Cash Flow (4)
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$1,500-$2,300
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$1,125-$1,475
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(1)
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2016 Guidance is based on expectations for future foreign exchange
rates and commodity prices as of October 15, 2015.
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(2)
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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 from 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.
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(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 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. 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.
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(4)
|
|
Free Cash Flow is reconciled above. Free cash flow (a non-GAAP
financial measure) is defined as net cash from operating activities
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.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20151105005566/en/ Copyright Business Wire 2015
Source: Business Wire
(November 5, 2015 - 6:00 AM EST)
News by QuoteMedia
www.quotemedia.com
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