Attains investment grade credit rating for the first time
Strategic Objectives and Accomplishments
- Signed 921 MW of new PPAs during the third quarter of 2019, for a total of 1.9 GW year-to-date
- Created a strategic alliance with Google to accelerate the growth and adoption of clean energy
- Received approval from the Government of Vietnam to develop the 2.2 GW Son My 2 CCGT
- Upgraded to an investment grade credit rating by Fitch; outlook raised to Positive by S&P
- Fluence maintained global leadership in the energy storage market with 806 MW of projects awarded year-to-date
Q3 2019 Financial Highlights
- Diluted EPS of $0.32, compared to $0.15 in Q3 2018
- Adjusted EPS 1 of $0.48, compared to $0.35 in Q3 2018
- Reaffirming 2019 guidance and 7% to 9% average annual growth target for Adjusted EPS and Parent Free Cash Flow through 20221
ARLINGTON, Va.–(BUSINESS WIRE)–The AES Corporation (NYSE: AES) today reported financial results for the quarter ended September 30, 2019.
“I am very pleased with the great progress we are making on our strategic plans, including the alliance with Google, our growth in renewables and energy storage, and the Son My 2 CCGT and LNG project in Vietnam,” said Andrés Gluski, AES President and Chief Executive Officer. “All of our current construction projects are on track and we signed more than 900 MW of renewables under new Power Purchase Agreements in the third quarter.”
“I am thrilled to announce that late yesterday, AES was upgraded to an investment grade credit rating for the first time in the history of the Company. This upgrade reflects our nearly decade-long transformation to strengthen our balance sheet and simplify our portfolio,” said Gustavo Pimenta, AES Executive Vice President and Chief Financial Officer. “Based on our strong third quarter and year-to-date results, we are reaffirming our 2019 guidance and 7% to 9% average annual growth rate through 2022.”
Key Q3 2019 Financial Results
Third quarter 2019 Diluted Earnings Per Share from Continuing Operations (Diluted EPS) was $0.32, an increase of $0.17 compared to third quarter 2018, primarily reflecting contributions from new businesses, outages in the Mexico, Central America and the Caribbean Strategic Business Unit (MCAC SBU) and related insurance recovery, a lower effective tax rate, and an $0.11 impairment at Shady Point in Oklahoma in 2018. These contributions were partially offset by unrealized foreign currency losses in Argentina in 2019.
Third quarter 2019 Adjusted Earnings Per Share (Adjusted EPS, a non-GAAP financial measure) was $0.48, an increase of $0.13 compared to third quarter 2018, primarily reflecting contributions from new businesses, including AES Colon in Panama and US renewables, improved performance at the South America SBU, outages in the MCAC SBU and related insurance recovery, as well as a lower tax rate.
Detailed Strategic Overview
The Company is leveraging its competitive position to benefit from rapid growth in renewables, which are expected to grow by 50 GW annually in the Company’s key markets through its guidance period (2022).
-
The Company is on track to become one of the five largest renewable developers in the world, outside of China, by adding 2 to 3 GW of renewables to its backlog annually.
-
In year-to-date 2019, the Company has signed 1,940 MW of renewables under long-term Power Purchase Agreements (PPA):
- 560 MW of solar and solar plus storage at sPower in the U.S.;
- 416 MW of Green Blend and Extend contracts at AES Gener in Chile;
- 346 MW of wind and solar in Mexico, the Dominican Republic and Panama;
- 297 MW of solar and solar plus storage at AES Distributed Energy (AES DE) in the U.S.;
- 213 MW of wind and solar at AES Colombia;
- 100 MW of energy storage in the U.S.; and
- 9 MW of wind and solar at AES Tiete in Brazil
-
As of November 2019, the Company’s backlog of 6,109 MW includes:
- 3,030 MW under construction and expected on-line through 2021; and
- 3,079 MW of renewables signed under long-term PPAs.
-
In year-to-date 2019, the Company has signed 1,940 MW of renewables under long-term Power Purchase Agreements (PPA):
-
The Company is completing its projects under construction as planned, with 3,030 MW currently under construction and expected to come on-line through 2021. During the third quarter of 2019, the Company completed 1,625 MW of new projects, including:
- 1,320 MW OPGC 2 plant in India; and
- 305 MW of solar globally.
-
The Company received approval from the Government of Vietnam to develop the 2.2 GW Son My 2 combined cycle gas turbine (CCGT) power plant.
- The power plant will have a 20-year contract with the Government of Vietnam and will be co-located with the Company’s previously approved 480 TBTU LNG terminal. The power plant is expected to achieve financial close in 2021 and commercial operations in 2024.
-
The Company formed a 10-year strategic alliance with Google to develop and implement solutions to enable broad adoption of clean energy.
- The Company will collaborate with Google Cloud on energy management and opportunities to sponsor clean energy projects in targeted markets in the US and Latin America that have the potential to help Google meet its clean energy objectives.
- The Company will use Google Cloud technology to drive innovation in the sector and help create the grid of the future and improve the experience for energy customers.
- As a result of executing on its strategy, the Company continues to target a 50% reduction in carbon intensity by 2022 and a 70% reduction by 2030, both off a 2016 base. The same initiatives will also reduce the Company’s coal-fired generation below 30% of its total generation volume by 2022.
-
In November 2019, as a result of the Company’s efforts to strengthen its balance sheet, its credit rating was upgraded to investment grade (BBB-) by Fitch and its BB+ credit rating outlook was raised to Positive by S&P.
- In the third quarter of 2019, the Company voluntarily prepaid $443 million of recourse debt, accelerating and increasing its prior plan to reduce its recourse debt by $300 million through 2022, including $150 million in 2019.
-
The Company is deploying new technologies in order to maintain its market-leading positions.
-
The Company’s energy storage joint venture with Siemens, Fluence, is the global leader in the fast-growing energy storage market, which is expected to increase from 6 GW of installed capacity in 2017 to more than 40 GW by 2022.
- Fluence has been awarded or delivered 1.5 GW of projects, including 806 MW awarded in year-to-date 2019.
-
The Company’s energy storage joint venture with Siemens, Fluence, is the global leader in the fast-growing energy storage market, which is expected to increase from 6 GW of installed capacity in 2017 to more than 40 GW by 2022.
Guidance and Expectations1
The Company reaffirms its 2019 Adjusted EPS guidance of $1.30 to $1.38. The Company also reaffirms its average annual growth rate target of 7% to 9% through 2022.
The Company also reaffirms its 2019 Parent Free Cash Flow expectation of $700 million to $750 million and its average annual growth rate target of 7% to 9% through 2022.
| 1 |
Adjusted EPS and Parent Free Cash Flow are non-GAAP financial measures. See attached “Non-GAAP Measures” for definition of Adjusted EPS and see below for definition of Parent Free Cash Flow. The Company is not able to provide a corresponding GAAP equivalent or reconciliation for its Adjusted EPS guidance or its Parent Free Cash Flow expectation without unreasonable effort. See “Non-GAAP measures” for a description of the adjustments to reconcile Adjusted EPS to Diluted EPS for the quarter ended September 30, 2019. |
Non-GAAP Financial Measures
See Non-GAAP Measures for definitions of Adjusted Earnings Per Share and Adjusted Pre-Tax Contributions, as well as reconciliations to the most comparable GAAP financial measures.
Parent Free Cash Flow should not be construed as an alternative to Net Cash Provided by Operating Activities which is determined in accordance with GAAP. Parent Free Cash Flow is equal to Subsidiary Distributions less cash used for interest costs, development, general and administrative activities, and tax payments by the Parent Company. Parent Free Cash Flow is used for dividends, share repurchases, growth investments, recourse debt repayments, and other uses by the Parent Company.
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 Wednesday, November 6, 2019 at 9:00 a.m. Eastern Standard Time (EST). Interested parties may listen to the teleconference by dialing 1-888-317-6003 at least ten minutes before the start of the call. International callers should dial +1-412-317-6061. The Conference ID for this call is 6118108. 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 500 global power company. We provide affordable, sustainable energy to 14 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce is committed to operational excellence and meeting the world’s changing power needs. Our 2018 revenues were $11 billion and we own and manage $33 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 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 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’ 2018 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 2018 Annual Report on Form 10-K filed February 27, 2019 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 |
|
Nine Months Ended |
||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
|
(in millions, except per share amounts) |
||||||||||||||
|
Revenue: |
|
|
|
|
|
|
|
||||||||
|
Regulated |
$ |
799 |
|
|
$ |
777 |
|
|
$ |
2,308 |
|
|
$ |
2,215 |
|
|
Non-Regulated |
1,826 |
|
|
2,060 |
|
|
5,450 |
|
|
5,899 |
|
||||
|
Total revenue |
2,625 |
|
|
2,837 |
|
|
7,758 |
|
|
8,114 |
|
||||
|
Cost of Sales: |
|
|
|
|
|
|
|
||||||||
|
Regulated |
(633 |
) |
|
(638 |
) |
|
(1,873 |
) |
|
(1,856 |
) |
||||
|
Non-Regulated |
(1,291 |
) |
|
(1,528 |
) |
|
(4,096 |
) |
|
(4,331 |
) |
||||
|
Total cost of sales |
(1,924 |
) |
|
(2,166 |
) |
|
(5,969 |
) |
|
(6,187 |
) |
||||
|
Operating margin |
701 |
|
|
671 |
|
|
1,789 |
|
|
1,927 |
|
||||
|
General and administrative expenses |
(41 |
) |
|
(43 |
) |
|
(136 |
) |
|
(134 |
) |
||||
|
Interest expense |
(250 |
) |
|
(255 |
) |
|
(788 |
) |
|
(799 |
) |
||||
|
Interest income |
81 |
|
|
79 |
|
|
242 |
|
|
231 |
|
||||
|
Loss on extinguishment of debt |
(65 |
) |
|
(11 |
) |
|
(126 |
) |
|
(187 |
) |
||||
|
Other expense |
(9 |
) |
|
(29 |
) |
|
(35 |
) |
|
(42 |
) |
||||
|
Other income |
78 |
|
|
10 |
|
|
126 |
|
|
30 |
|
||||
|
Gain (loss) on disposal and sale of business interests |
16 |
|
|
(21 |
) |
|
9 |
|
|
856 |
|
||||
|
Asset impairment expense |
— |
|
|
(74 |
) |
|
(116 |
) |
|
(166 |
) |
||||
|
Foreign currency transaction gains (losses) |
(87 |
) |
|
5 |
|
|
(69 |
) |
|
(44 |
) |
||||
|
INCOME FROM CONTINUING OPERATIONS BEFORE TAXES AND EQUITY IN EARNINGS OF AFFILIATES |
424 |
|
|
332 |
|
|
896 |
|
|
1,672 |
|
||||
|
Income tax expense |
(130 |
) |
|
(146 |
) |
|
(302 |
) |
|
(509 |
) |
||||
|
Net equity in earnings of affiliates |
4 |
|
|
6 |
|
|
3 |
|
|
31 |
|
||||
|
INCOME FROM CONTINUING OPERATIONS |
298 |
|
|
192 |
|
|
597 |
|
|
1,194 |
|
||||
|
Loss from operations of discontinued businesses, net of income tax expense of $0, $0, $0, and $2, respectively |
— |
|
|
(4 |
) |
|
— |
|
|
(9 |
) |
||||
|
Gain from disposal of discontinued businesses, net of income tax expense of $0, $2, $0, and $44, respectively |
— |
|
|
3 |
|
|
1 |
|
|
199 |
|
||||
|
NET INCOME |
298 |
|
|
191 |
|
|
598 |
|
|
1,384 |
|
||||
|
Less: Income from continuing operations attributable to noncontrolling interests and redeemable stock of subsidiaries |
(88 |
) |
|
(90 |
) |
|
(217 |
) |
|
(311 |
) |
||||
|
Less: Loss from discontinued operations attributable to noncontrolling interests |
— |
|
|
— |
|
|
— |
|
|
2 |
|
||||
|
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION |
$ |
210 |
|
|
$ |
101 |
|
|
$ |
381 |
|
|
$ |
1,075 |
|
|
AMOUNTS ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
||||||||
|
Income from continuing operations, net of tax |
$ |
210 |
|
|
$ |
102 |
|
|
$ |
380 |
|
|
$ |
883 |
|
|
Income (loss) from discontinued operations, net of tax |
— |
|
|
(1 |
) |
|
1 |
|
|
192 |
|
||||
|
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION |
$ |
210 |
|
|
$ |
101 |
|
|
$ |
381 |
|
|
$ |
1,075 |
|
|
BASIC EARNINGS PER SHARE: |
|
|
|
|
|
|
|
||||||||
|
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax |
$ |
0.32 |
|
|
$ |
0.15 |
|
|
$ |
0.57 |
|
|
$ |
1.33 |
|
|
Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax |
— |
|
|
— |
|
|
— |
|
|
0.29 |
|
||||
|
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS |
$ |
0.32 |
|
|
$ |
0.15 |
|
|
$ |
0.57 |
|
|
$ |
1.62 |
|
|
DILUTED EARNINGS PER SHARE: |
|
|
|
|
|
|
|
||||||||
|
Income from continuing operations attributable to The AES Corporation common stockholders, net of tax |
$ |
0.32 |
|
|
$ |
0.15 |
|
|
$ |
0.57 |
|
|
$ |
1.33 |
|
|
Income from discontinued operations attributable to The AES Corporation common stockholders, net of tax |
— |
|
|
— |
|
|
— |
|
|
0.29 |
|
||||
|
NET INCOME ATTRIBUTABLE TO THE AES CORPORATION COMMON STOCKHOLDERS |
$ |
0.32 |
|
|
$ |
0.15 |
|
|
$ |
0.57 |
|
|
$ |
1.62 |
|
|
DILUTED SHARES OUTSTANDING |
667 |
|
|
665 |
|
|
667 |
|
|
664 |
|
||||
|
THE AES CORPORATION |
||||||||||||||||
|
Strategic Business Unit (SBU) Information |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
(in millions) |
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
|
REVENUE |
|
|
|
|
|
|
|
|||||||||
|
US and Utilities SBU |
$ |
1,130 |
|
|
$ |
1,230 |
|
|
$ |
3,125 |
|
|
$ |
3,252 |
|
|
|
South America SBU |
828 |
|
|
923 |
|
|
2,438 |
|
|
2,664 |
|
|||||
|
MCAC SBU |
470 |
|
|
462 |
|
|
1,398 |
|
|
1,276 |
|
|||||
|
Eurasia SBU |
197 |
|
|
224 |
|
|
801 |
|
|
935 |
|
|||||
|
Corporate and Other |
14 |
|
|
7 |
|
|
39 |
|
|
21 |
|
|||||
|
Eliminations |
(14 |
) |
|
(9 |
) |
|
(43 |
) |
|
(34 |
) |
|||||
|
Total Revenue |
$ |
2,625 |
|
|
$ |
2,837 |
|
|
$ |
7,758 |
|
|
$ |
8,114 |
|
|
|
THE AES CORPORATION |
|||||||
|
Condensed Consolidated Balance Sheets (Unaudited) |
|||||||
|
|
|
|
|
||||
|
|
September 30, |
|
December 31, |
||||
|
|
(in millions, except share |
||||||
|
ASSETS |
|
|
|
||||
|
CURRENT ASSETS |
|
|
|
||||
|
Cash and cash equivalents |
$ |
1,145 |
|
|
$ |
1,166 |
|
|
Restricted cash |
455 |
|
|
370 |
|
||
|
Short-term investments |
334 |
|
|
313 |
|
||
|
Accounts receivable, net of allowance for doubtful accounts of $21 and $23, respectively |
1,503 |
|
|
1,595 |
|
||
|
Inventory |
495 |
|
|
577 |
|
||
|
Prepaid expenses |
72 |
|
|
130 |
|
||
|
Other current assets |
856 |
|
|
807 |
|
||
|
Current held-for-sale assets |
610 |
|
|
57 |
|
||
|
Total current assets |
5,470 |
|
|
5,015 |
|
||
|
NONCURRENT ASSETS |
|
|
|
||||
|
Property, Plant and Equipment: |
|
|
|
||||
|
Land |
442 |
|
|
449 |
|
||
|
Electric generation, distribution assets and other |
25,148 |
|
|
25,242 |
|
||
|
Accumulated depreciation |
(8,599 |
) |
|
(8,227 |
) |
||
|
Construction in progress |
4,862 |
|
|
3,932 |
|
||
|
Property, plant and equipment, net |
21,853 |
|
|
21,396 |
|
||
|
Other Assets: |
|
|
|
||||
|
Investments in and advances to affiliates |
1,209 |
|
|
1,114 |
|
||
|
Debt service reserves and other deposits |
241 |
|
|
467 |
|
||
|
Goodwill |
1,059 |
|
|
1,059 |
|
||
|
Other intangible assets, net of accumulated amortization of $302 and $457, respectively |
462 |
|
|
436 |
|
||
|
Deferred income taxes |
135 |
|
|
97 |
|
||
|
Loan receivable |
1,370 |
|
|
1,423 |
|
||
|
Other noncurrent assets |
1,624 |
|
|
1,514 |
|
||
|
Total other assets |
6,100 |
|
|
6,110 |
|
||
|
TOTAL ASSETS |
$ |
33,423 |
|
|
$ |
32,521 |
|
|
LIABILITIES AND EQUITY |
|
|
|
||||
|
CURRENT LIABILITIES |
|
|
|
||||
|
Accounts payable |
$ |
1,237 |
|
|
$ |
1,329 |
|
|
Accrued interest |
236 |
|
|
191 |
|
||
|
Accrued non-income taxes |
230 |
|
|
250 |
|
||
|
Accrued and other liabilities |
951 |
|
|
962 |
|
||
|
Non-recourse debt, including $312 and $479, respectively, related to variable interest entities |
1,882 |
|
|
1,659 |
|
||
|
Current held-for-sale liabilities |
455 |
|
|
8 |
|
||
|
Total current liabilities |
4,991 |
|
|
4,399 |
|
||
|
NONCURRENT LIABILITIES |
|
|
|
||||
|
Recourse debt |
3,556 |
|
|
3,650 |
|
||
|
Non-recourse debt, including $3,350 and $2,922 respectively, related to variable interest entities |
14,323 |
|
|
13,986 |
|
||
|
Deferred income taxes |
1,198 |
|
|
1,280 |
|
||
|
Other noncurrent liabilities |
3,083 |
|
|
2,723 |
|
||
|
Total noncurrent liabilities |
22,160 |
|
|
21,639 |
|
||
|
Commitments and Contingencies |
|
|
|
||||
|
Redeemable stock of subsidiaries |
886 |
|
|
879 |
|
||
|
EQUITY |
|
|
|
||||
|
THE AES CORPORATION STOCKHOLDERS’ EQUITY |
|
|
|
||||
|
Common stock ($0.01 par value, 1,200,000,000 shares authorized; 817,783,916 issued and 663,892,656 outstanding at September 30, 2019 and 817,203,691 issued and 662,298,096 outstanding at December 31, 2018) |
8 |
|
|
8 |
|
||
|
Additional paid-in capital |
7,948 |
|
|
8,154 |
|
||
|
Accumulated deficit |
(614 |
) |
|
(1,005 |
) |
||
|
Accumulated other comprehensive loss |
(2,335 |
) |
|
(2,071 |
) |
||
|
Treasury stock, at cost (153,891,260 and 154,905,595 shares at September 30, 2019 and December 31, 2018, respectively) |
(1,867 |
) |
|
(1,878 |
) |
||
|
Total AES Corporation stockholders’ equity |
3,140 |
|
|
3,208 |
|
||
|
NONCONTROLLING INTERESTS |
2,246 |
|
|
2,396 |
|
||
|
Total equity |
5,386 |
|
|
5,604 |
|
||
|
TOTAL LIABILITIES AND EQUITY |
$ |
33,423 |
|
|
$ |
32,521 |
|
|
THE AES CORPORATION |
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Condensed Consolidated Statements of Cash Flows |
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(Unaudited) |
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Three Months Ended |
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Nine Months Ended |
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|
2019 |
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2018 |
|
2019 |
|
2018 |
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(in millions) |
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(in millions) |
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OPERATING ACTIVITIES: |
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|
|
|
|
|
|
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Net income |
$ |
298 |
|
|
$ |
191 |
|
|
$ |
598 |
|
|
$ |
1,384 |
|
|
Adjustments to net income: |
|
|
|
|
|
|
|
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Depreciation and amortization |
262 |
|
|
258 |
|
|
774 |
|
|
770 |
|
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Gain on disposal and sale of business interests |
(16 |
) |
|
21 |
|
|
(9 |
) |
|
(856 |
) |
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Impairment expenses |
— |
|
|
79 |
|
|
116 |
|
|
172 |
|
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|
Deferred income taxes |
(11 |
) |
|
38 |
|
|
4 |
|
|
221 |
|
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|
Loss on extinguishment of debt |
65 |
|
|
11 |
|
|
126 |
|
|
187 |
|
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|
Loss on sale and disposal of assets |
5 |
|
|
21 |
|
|
21 |
|
|
23 |
|
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Net gain from disposal and impairments of discontinued businesses |
— |
|
|
(5 |
) |
|
— |
|
|
(243 |
) |
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Other |
135 |
|
|
81 |
|
|
278 |
|
|
207 |
|
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Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
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(Increase) decrease in accounts receivable |
17 |
|
|
(131 |
) |
|
27 |
|
|
(125 |
) |
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(Increase) decrease in inventory |
(28 |
) |
|
20 |
|
|
(3 |
) |
|
(13 |
) |
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(Increase) decrease in prepaid expenses and other current assets |
(43 |
) |
|
90 |
|
|
(17 |
) |
|
15 |
|
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|
(Increase) decrease in other assets |
(10 |
) |
|
(37 |
) |
|
1 |
|
|
(22 |
) |
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Increase (decrease) in accounts payable and other current liabilities |
17 |
|
|
61 |
|
|
(12 |
) |
|
(29 |
) |
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|
Increase (decrease) in income tax payables, net and other tax payables |
51 |
|
|
1 |
|
|
(124 |
) |
|
(61 |
) |
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|
Increase (decrease) in other liabilities |
19 |
|
|
68 |
|
|
(5 |
) |
|
51 |
|
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Net cash provided by operating activities |
761 |
|
|
767 |
|
|
1,775 |
|
|
1,681 |
|
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INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
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Capital expenditures |
(558 |
) |
|
(598 |
) |
|
(1,628 |
) |
|
(1,592 |
) |
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Acquisitions of business interests, net of cash and restricted cash acquired |
(56 |
) |
|
(24 |
) |
|
(56 |
) |
|
(66 |
) |
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Proceeds from the sale of business interests, net of cash and restricted cash sold |
(3 |
) |
|
(12 |
) |
|
226 |
|
|
1,796 |
|
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|
Proceeds from the sale of assets |
6 |
|
|
— |
|
|
23 |
|
|
15 |
|
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|
Sale of short-term investments |
194 |
|
|
592 |
|
|
524 |
|
|
1,010 |
|
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|
Purchase of short-term investments |
(148 |
) |
|
(277 |
) |
|
(572 |
) |
|
(1,215 |
) |
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Contributions and loans to equity affiliates |
(85 |
) |
|
(11 |
) |
|
(258 |
) |
|
(101 |
) |
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Other investing |
52 |
|
|
20 |
|
|
30 |
|
|
(37 |
) |
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Net cash used in investing activities |
(598 |
) |
|
(310 |
) |
|
(1,711 |
) |
|
(190 |
) |
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FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
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Borrowings under the revolving credit facilities |
572 |
|
|
301 |
|
|
1,469 |
|
|
1,434 |
|
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Repayments under the revolving credit facilities |
(443 |
) |
|
(553 |
) |
|
(1,041 |
) |
|
(1,595 |
) |
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Issuance of recourse debt |
— |
|
|
— |
|
|
— |
|
|
1,000 |
|
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Repayments of recourse debt |
(446 |
) |
|
— |
|
|
(449 |
) |
|
(1,781 |
) |
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Issuance of non-recourse debt |
999 |
|
|
317 |
|
|
3,580 |
|
|
1,509 |
|
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|
Repayments of non-recourse debt |
(697 |
) |
|
(298 |
) |
|
(2,978 |
) |
|
(1,139 |
) |
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Payments for financing fees |
(32 |
) |
|
(7 |
) |
|
(69 |
) |
|
(32 |
) |
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|
Distributions to noncontrolling interests |
(109 |
) |
|
(71 |
) |
|
(255 |
) |
|
(199 |
) |
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Contributions from noncontrolling interests and redeemable security holders |
(1 |
) |
|
12 |
|
|
15 |
|
|
40 |
|
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|
Dividends paid on AES common stock |
(91 |
) |
|
(86 |
) |
|
(272 |
) |
|
(258 |
) |
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Payments for financed capital expenditures |
(16 |
) |
|
(66 |
) |
|
(126 |
) |
|
(186 |
) |
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Other financing |
23 |
|
|
17 |
|
|
(7 |
) |
|
44 |
|
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Net cash used in financing activities |
(241 |
) |
|
(434 |
) |
|
(133 |
) |
|
(1,163 |
) |
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Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(26 |
) |
|
(30 |
) |
|
(28 |
) |
|
(50 |
) |
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(Increase) decrease in cash, cash equivalents and restricted cash of discontinued operations and held-for-sale businesses |
(8 |
) |
|
(13 |
) |
|
(65 |
) |
|
56 |
|
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Total increase (decrease) in cash, cash equivalents and restricted cash |
(112 |
) |
|
(20 |
) |
|
(162 |
) |
|
334 |
|
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|
Cash, cash equivalents and restricted cash, beginning |
1,953 |
|
|
2,142 |
|
|
2,003 |
|
|
1,788 |
|
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Cash, cash equivalents and restricted cash, ending |
$ |
1,841 |
|
|
$ |
2,122 |
|
|
$ |
1,841 |
|
|
$ |
2,122 |
|
|
SUPPLEMENTAL DISCLOSURES: |
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Cash payments for interest, net of amounts capitalized |
$ |
203 |
|
|
$ |
161 |
|
|
$ |
681 |
|
|
$ |
683 |
|
|
Cash payments for income taxes, net of refunds |
60 |
|
|
104 |
|
|
296 |
|
|
313 |
|
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SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
||||||||
|
Refinancing of Non-recourse debt at Mong Duong |
1,081 |
|
|
— |
|
|
1,081 |
|
|
— |
|
||||
|
Non-cash contributions to equity affiliates |
62 |
|
|
— |
|
|
62 |
|
|
20 |
|
||||
|
Partial reinvestment of consideration from the sPower transaction |
— |
|
|
— |
|
|
58 |
|
|
— |
|
||||
|
Non-cash exchange of debentures for the acquisition of the Guaimbê Solar Complex |
— |
|
|
119 |
|
|
— |
|
|
119 |
|
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|
Non-cash acquisition of intangible assets |
— |
|
|
9 |
|
|
— |
|
|
14 |
|
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THE AES CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)
RECONCILIATION OF ADJUSTED PRE-TAX CONTRIBUTION (PTC) AND ADJUSTED EPS
Adjusted PTC is defined as pre-tax income from continuing operations attributable to The AES Corporation excluding gains or losses of the consolidated entity due to (a) unrealized gains or losses related to derivative transactions and equity securities; (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; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; and (f) costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts, relocations, and office consolidation. Adjusted PTC also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities.
Adjusted EPS is defined as diluted earnings per share from continuing operations excluding gains or losses of both consolidated entities and entities accounted for under the equity method due to (a) unrealized gains or losses related to derivative transactions and equity securities; (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; (d) losses due to impairments; (e) gains, losses and costs due to the early retirement of debt; (f) costs directly associated with a major restructuring program, including, but not limited to, workforce reduction efforts, relocations, and office consolidation; and (g) tax benefit or expense related to the enactment effects of 2017 U.
Contacts
Investor Contact: Ahmed Pasha 703-682-6451
Media Contact: Amy Ackerman 703-682-6399
