per diluted share. This compares to a restated net loss of $10 million for the
first quarter 2002, or a restated loss of 6 cents per diluted share.
activities).
disclosed. For a more detailed discussion of the 2002 first quarter
Securities and Exchange Commission (SEC).
diluted share.
$587 million for the first quarter 2002.
- Total operating revenue for first quarter 2003 was $1.5 billion
compared to $959 million for 2002, reflecting increased power sales
volumes and higher market prices for power.
- NOTE: These revenue levels reflect Mirant's adoption of the
provisions of the Financial Accounting Standards Board's EITF Issue
02-03 with respect to netting revenues and expenses on energy
marketing contracts.
- Cost of fuel, electricity and other products for the first quarter of
2003 was $978 million, compared to $372 million for 2002. This
increase reflects significantly increased prices paid for natural gas,
oil, and purchased power, unfavorable power price fluctuations related
to power sales agreements in the Mid-Atlantic region, hedging losses
related to the company's risk management activities and lower trading
results. Additionally, Mirant experienced unplanned plant outages and
transmission interruptions, which increased purchased power
requirements.
- Operating Expenses other than costs of fuel, electricity and other
products for the first quarter of 2003 were $347 million, compared to
$907 million for the first quarter 2002. The 2002 amount reflected
$555 million in restructuring costs.
- Net cash used in operating activities for the first quarter 2003 was
$238 million, compared to $347 million cash provided by operating
activities for 2002.
- In the first quarter of 2003, net collateral and other working
capital outflows used $283 million, as compared to generating $155
million in the first quarter of 2002.
- As of Aug. 15, 2003, Mirant had approximately $1.29 billion in total
cash and cash equivalents; approximately $226 million of which is
legally restricted and $125 million of which is held for operating,
working capital or other purposes at various subsidiaries. The total
cash and cash equivalents is $220 million lower than the $1.51
billion the company had at March 31, 2003.
Quarterly Review of Operations by Business Segment
- North American operations reported income from continuing operations
before income taxes and minority interest of $65 million compared to a
loss from continuing operations before income taxes and minority
interest of $351 million for the first quarter 2002 (as restated).
- International operations reported income from continuing operations
before income taxes and minority interest of $82 million compared to
income from continuing operations before income taxes and minority
interest of $349 million for the first quarter 2002 (as restated).
This decrease reflects the sale of Bewag, a Berlin-based utility, in
the first quarter 2002.
- Corporate (and other income and expenses) reported a loss from
continuing operations before income taxes and minority interest of $96
million, including $48 million of interest expenses, compared to a loss
from continuing operations before income taxes and minority interest of
$72 million for the first quarter 2002 (as restated).
In addition, Mirant filed amended Forms 10-Q for each of the first, second and
third quarters of 2002, as well as an amended 2002 Form 10-K for its Mirant
Americas Generation, LLC subsidiary. Also, Forms 15 were filed by the previous
voluntary filers, Mirant Americas Generation and Mirant Mid-Atlantic, indicating
that those entities would no longer be submitting SEC filings in the future.
Mirant is a competitive energy company that produces and sells electricity in
North America, the Caribbean, and the Philippines. Mirant owns or controls more
than 22,000 megawatts of electric generating capacity globally. We operate an
integrated asset management and energy marketing organization from our
headquarters in Atlanta. For more information, please visit
www.mirant.com.Cautionary Note: Our business involves known and unknown risks related to future
events, our future financial performance or our projected business results. Our
business may be materially affected by various factors, which include:
General Factors
* legislative and regulatory initiatives regarding deregulation,
regulation or restructuring of the electric utility industry; changes
in state, federal and other regulations (including rate and other
regulations); changes in, or application of, environmental and other
laws and regulations to which we and our subsidiaries and affiliates
are subject;
* the failure of our assets to perform as expected or the extent and
timing of the entry of additional competition in the markets of our
subsidiaries and affiliates;
* our pursuit of potential business strategies, including the disposition
of assets, termination of construction of certain projects or internal
restructuring;
* changes in market conditions, including developments in energy and
commodity supply, demand, volume and pricing;
* weather and other natural phenomena;
* war, terrorist activities or the occurrence of a catastrophic loss;
* deterioration in the financial condition of our counterparties and the
resulting failure to pay amounts owed to us or perform obligations or
services due to us; and
* the disposition of the pending litigation described in our most recent
Form 10-Q as well as the Company's Form 10-K filed on April 30, 2003;
Bankruptcy-Related Factors
* the actions and decisions of creditors of Mirant and of other third
parties with interests in the voluntary petitions for reorganization
filed on July 14, 2003 by Mirant Corporation and substantially all of
its wholly-owned U.S. subsidiaries under Chapter 11 of the Bankruptcy
Code;
* the ability of Mirant to reach agreements with lenders, creditors and
other stakeholders regarding a comprehensive restructuring and to
continue as a going concern;
* the effects of the Chapter 11 filings on our liquidity and results of
operations;
* the instructions, orders and decisions of the bankruptcy court and
other effects of legal and administrative proceedings, settlements,
investigations and claims;
* the ability of Mirant to operate pursuant to the committed debtor-in-
possession financing;
* the ability of Mirant to obtain and maintain normal terms with vendors
and service providers and to maintain contracts that are critical to
their operations;
* the direct or indirect effects on our business of a lowering of our
credit rating or that of Mirant Americas Generation, Mirant Mid-
Atlantic or Mirant Americas Energy Marketing (or actions taken by us or
our affiliates in response to changing credit ratings criteria),
including, increased collateral requirements to execute our business
plan, demands for increased collateral by our current counterparties,
curtailment of certain business operations in order to reduce the
amount of required collateral, refusal by our current or potential
counterparties or customers to enter into transactions with us and our
inability to obtain credit or capital in amounts needed or on terms
favorable to us; and
* the ability of Mirant to fund and execute their respective business
plans.
Additionally, the terms of any reorganization plan ultimately confirmed, can
affect the value of our various pre-petition liabilities, common stock and/or
other securities. No assurance can be given as to what values, if any, will be
ascribed in the bankruptcy proceedings to each of these constituencies. A plan
of reorganization could result in holders of the liabilities and/or securities
of Company, Mirant Americas Generation and Mirant Mid-Atlantic receiving no
value for their interests. Because of such possibilities, the value of these
liabilities and/or securities is highly speculative. Accordingly, we urge that
caution be exercised with respect to existing and future investments in any of
these liabilities and/or securities.
SOURCE Mirant
CONTACT: media, James Peters, +1-678-579-5266; investors, John Robinson,
+1-678-579-7782, or stockholder inquiries, +1-678-579-7777, all of Mirant
URL:
http://www.mirant.comhttp://www.prnewswire.comCopyright (C) 2003 PR Newswire. All rights reserved.
KEYWORD: Georgia
INDUSTRY KEYWORD: UTI
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SUBJECT CODE: ERN
BCY
DJIA 9,331.62 2.17
Nasdaq 1,789.54 7.41
S&P 500 997.53 0.74
30 Yr Bond 5.25 0.06
10 Yr Bond 4.46 0.08
$7 Trades, 185 Offices
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