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FINANCIAL POSITION
AND CASH FLOWS
At December 31, 1999, AES had consolidated
working capital of $17 million as compared to negative $722
million at the end of 1998. The increase in working capital
was due primarily to an increase in accounts receivable combined
with a decrease in the current portion of project financing
debt. Accounts receivable increased primarily from the acquisition
of distribution businesses during 1999, as well as from the
acquisition of the Drax power station. The current portion
of project financing debt decreased because certain of the
1998 acquisitions were financed with short-term debt that
was refinanced, in part, with long-term project financing
during 1999.
Property,
plant and equipment, net of accumulated depreciation, accounts
for 64% of the Company's total assets and was $13.4 billion
at December 31, 1999. Net property, plant and equipment increased
$7.9 billion, or 143%, during 1999. The increase was due primarily
to the acquisitions completed during 1999. The continuation
of construction activities at the Company's greenfield projects
contributed to a much lesser extent to the overall increase.
The Company also recorded approximately $708 million of goodwill
from its 1999 acquisitions of CILCORP and NewEnergy-
In
total, the Company's project financing debt and other notes
payable increased $5.4 billion, or 81%, to $12.0 billion at
December 31, 1999. The increase is due primarily to borrowings
associated with the Company's 1999 acquisitions. Borrowings
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used to fund the construction of the Company's
green- field projects contributed to a much lesser extent to
the overall increase.
At
December 31, 1999, the Company had $669 million of cash and
cash equivalents. Cash and cash equivalents increased $178 million
due primarily to the $197 million provided by operating activities.
The $6.4 billion of cash raised by financing activities was
used to fund the $6.4 billion of investing activities.
Cash
flows provided by operating activities totaled $197 million
during 1999. The decrease in cash provided by operating activities
during 1999 is due primarily to the cash used for working capital
as well as the decrease in net income during 1999. Unrestricted
net cash flow to the parent company, after cash paid for general
and administrative costs and project development expenses but
before investments and debt service, amounted to approximately
$403 million for the year ended December 31, 1999. The parent
fixed charge ratio was approximately 2.45x for the twelve months
ended December 31, 1999. Net cash used in investing activities
totaled $6.4 billion during 1999. Approximately 89% of the cash
used in investing activities was used for acquisitions. Net
cash used by financing activities was $6.4 billion during prove
1999, of which $5.1 billion was provided by net borrowings,
$1.3 billion was provided by the sale of common stock, $32 million
was the net contribution from minority interests and $44 million
was used to repay other liabilities. |
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