Edison International

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Edison International Reports First Quarter 2013 Results

ROSEMEAD, Calif.--(BUSINESS WIRE)-- Edison International (NYSE:EIX) today reported first quarter results, as summarized below.

           

 

 

First Quarter Results Summary

 
Three Months Ended March 31,
Per Share       2013                 2012
Basic earnings from continuing operations $ 0.79                 $ 0.54
Basic earnings (loss) from discontinued operations         0.04                   (0.26 )
Basic earnings (loss)       $ 0.83                 $ 0.28  
Core earnings       $ 0.77                 $ 0.54  

Note: See Use of Non-GAAP Financial Measures in Appendix.

 

Core Earnings Summary

The increase in core earnings in the first quarter was largely driven by the implementation of rates approved in Southern California Edison’s (SCE) 2012 General Rate Case (GRC), which was approved by the California Public Utilities Commission (CPUC) in November 2012.

“We're off to a strong start in the first quarter, with earnings consistent with our full-year guidance,” said Ted Craver, chairman and chief executive officer of Edison International. “Southern California Edison continues to make substantial investments in infrastructure improvements supporting state policy objectives."

First Quarter Earnings Detail

SCE's first quarter 2013 basic and core earnings were $0.78 per share compared to $0.56 per share in the first quarter of 2012. The core earnings increase was primarily due to the delay in receiving SCE's 2012 General Rate Case, lower operating expenses, largely due to timing, and tax benefits from incremental repair deductions.

Edison International parent company and other reported first quarter 2013 basic earnings from continuing operations of $0.01 per share compared to a $(0.02) per share loss from continuing operations in the first quarter of 2012. Core losses were $(0.01) per share compared to $(0.02) per share in the same period last year.

2013 Earnings Guidance

The company reaffirmed its 2013 core earnings guidance of $3.45 to $3.65 per share and updated its basic earnings guidance to a range of $3.51 to $3.71 per share based on first quarter results. See the risk disclosure statement in the Appendix and the presentation accompanying the company’s conference call for further information.

                               

Reconciliation of 2013 Core Earnings Guidance to

Basic Earnings Guidance

 
       

2013 Earnings Guidance

as of 2/26/13

               

2013 Earnings Guidance

as of 4/30/13

SCE       $3.70                 $3.70
EIX Parent & Other       (0.15)                 (0.15)
EIX Core EPS       $3.45 - $3.65                 $3.45 - $3.65
Non-core Items                       0.06
EIX Basic EPS       $3.45 - $3.65                 $3.51 - $3.71

Note: See Use of Non-GAAP Financial Measures in Appendix. Non-core items from first quarter only.

 

About Edison International

Edison International (NYSE:EIX), through its subsidiaries, is a generator and distributor of electric power and an investor in infrastructure and energy assets, including renewable energy. Headquartered in Rosemead, Calif., Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities.

Appendix

Use of Non-GAAP Financial Measures

Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core earnings per share (EPS) internally for financial planning and for analysis of performance. We also use core earnings and core EPS when communicating with analysts and investors regarding our earnings results to facilitate comparisons of the Company’s performance from period to period. Financial measures referred to net income, basic EPS, core earnings, or core EPS also applies to the description of earnings or earnings per share.

Core earnings and core EPS are non-GAAP financial measures and may not be comparable to those of other companies. Core earnings and core EPS are defined as basic earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. Basic earnings and losses refer to net income or losses attributable to Edison International shareholders. Core earnings are reconciled to basic earnings in the attached tables. The impact of participating securities (vested stock options that earn dividend equivalents that may participate in undistributed earnings with common stock) for the principal operating subsidiary is not material to the principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which is included in EIX parent & other.

Risk Disclosure Statement

Forward-looking statements about the financial outlook for Edison International and its subsidiaries are included in this news release. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Edison International’s 2012 Form 10-K, and other reports and other reports and presentations filed with the Securities and Exchange Commission which are available at: www.edisoninvestor.com. These forward-looking statements represent our expectations only as of the date of this news release, and Edison International assumes no duty to update them to reflect new information, events or circumstances.

Reminder: Edison International Will Hold a Conference Call Today

When:           Tuesday, April 30, 2013, 2:00 p.m. (Pacific Daylight Time)
Telephone Numbers:

1-800-369-2198 (US) and 1-773-756-4618 (Int’l) - Passcode: Edison

Telephone Replay:

1-800-925-1773 (US) and 1-402-220-3092 (Int’l) - Passcode: 468529

Telephone replay available through May 9, 2013
Webcast:

www.edisoninvestor.com

 

Summary Financial Schedules

                 

First Quarter Basic Earnings Per Share

 
Three Months Ended March 31,

Earnings (Loss) Per Share

Attributable to Edison International

     

2013

         

2012

         

Change

SCE $ 0.78           $ 0.56 $ 0.22
  EIX parent & other         0.01             (0.02 )             0.03
Earnings from continuing operations         0.79             0.54               0.25
Earnings (loss) from discontinued operations1         0.04             (0.26 )             0.30
Basic earnings2       $ 0.83           $ 0.28             $ 0.55
Diluted earnings       $ 0.82           $ 0.28             $ 0.54
1.     Results for Edison Mission Energy reported as non-core discontinued operations for both periods.
2. The impact of participating securities on the per share amounts is included in EIX parent & other and was zero per share for both quarters.
 
 
                 

First Quarter Reconciliation of Core Earnings Per Share

to Basic Earnings Per Share

 
Three Months Ended March 31,

Earnings Per Share

Attributable to Edison International

     

2013

         

2012

         

Change

Core earnings (loss)1,2          
SCE $ 0.78 $0.56 $ 0.22
  EIX parent & other         (0.01 )           (0.02 )             0.01
Core earnings         0.77             0.54               0.23
Non-core items
EIX parent & other 0.02 0.02
Earnings (loss) from discontinued operations         0.04             (0.26 )             0.30
Total non-core items         0.06             (0.26 )             0.32
Basic earnings1       $ 0.83             $0.28             $ 0.55
1.     See Use of Non-GAAP Financial Measures in Appendix. The impact of participating securities on the per share amounts is included in EIX parent & other and was zero per share for both periods.
2. Results for Edison Mission Energy reported as non-core discontinued operations for both periods.
 
 
                 

First Quarter Basic Earnings

 
Three Months Ended March 31,
Earnings (Loss) (in millions)

Attributable to Edison International

     

2013

         

2012

         

Change

SCE $ 256           $ 182 $ 74
  EIX parent & other         3             (5 )             8
Earnings from continuing operations         259             177               82
Earnings (loss) from discontinued operations         12             (84 )             96
Basic earnings       $ 271           $ 93             $ 178

Note: Results for Edison Mission Energy reported as non-core discontinued operations for both periods.

 
 
                 

First Quarter Reconciliation of Core Earnings to Basic Earnings

 
Three Months Ended March 31,
Earnings (in millions)

Attributable to Edison International

     

2013

         

2012

          Change
Core earnings (loss)          
SCE $ 256 $182 $ 74
  EIX parent & other         (4 )           (5 )             1
Core earnings         252             177               75
Non-core items
EIX parent & other 7 7
Earnings (loss) from discontinued operations
  EIX parent & other         12             (84 )             96
Total non-core items         19             (84 )             103
Basic earnings       $ 271             $93             $ 178

Note: See Use of Non-GAAP Financial Measures in Appendix. Results for Edison Mission Energy reported as non-core discontinued operations for both periods.

 
 
         
Consolidated Statements of Income       Edison International
 
Three months ended March 31,
(in millions, except per-share amounts, unaudited)       2013                   2012
Operating revenue 2,632                     2,415  
Fuel 73                   77
Purchased power 780 615
Operation and maintenance 873 946
Depreciation, decommissioning and amortization 414                     388  
Total operating expenses 2,140                     2,026  
Operating income 492 389
Interest and other income 34 34
Interest expense (131 ) (126 )
Other expenses (11 )                   (10 )
Income from continuing operations before income taxes 384 287
Income tax expense 98                     91  
Income from continuing operations 286 196
Income (loss) from discontinued operations, net of tax 12                     (84 )
Net income 298 112
Dividends on preferred and preference stock of utility 27                     19  
Net income attributable to Edison International common shareholders $ 271                     $ 93  
Amounts attributable to Edison International common shareholders:
Income from continuing operations, net of tax $ 259 $ 177
Income (loss) from discontinued operations, net of tax 12                     (84 )
Net income attributable to Edison International common shareholders $ 271                     $ 93  

Basic earnings (loss) per common share attributable to Edison International common shareholders:

Weighted-average shares of common stock outstanding 326 326
Continuing operations $ 0.79 $ 0.54
Discontinued operations 0.04                     (0.26 )
Total $ 0.83                     $ 0.28  
Diluted earnings (loss) per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding, including effect of dilutive securities 329 329
Continuing operations $ 0.78 $ 0.54
Discontinued operations 0.04                     (0.26 )
Total $ 0.82                     $ 0.28  
Dividends declared per common share       $ 0.3375                     $ 0.325  
 
 
         
Consolidated Balance Sheets       Edison International
                 
March 31, December 31,
(in millions, unaudited)       2013                   2012
ASSETS
Cash and cash equivalents $ 115 $ 170
Receivables, less allowances of $67 and $75 for uncollectible accounts at respective dates 797 762
Accrued unbilled revenue 403 550
Inventory 351 340
Prepaid taxes 26 22
Derivative assets 111 129
Margin and collateral deposits 10 8
Regulatory assets 672 572
Other current assets 185                     119
Total current assets 2,670                     2,672
Nuclear decommissioning trusts 4,246 4,048
Investments in unconsolidated affiliates 2 2
Other investments 199                     184
Total investments 4,447                     4,234
Utility property, plant and equipment, less accumulated depreciation of $7,662 and $7,424 at respective dates 30,673 30,200
Nonutility property, plant and equipment, less accumulated depreciation of $126 and $123 at respective dates 72                     73
Total property, plant and equipment 30,745                     30,273
Derivative assets 81 85
Restricted deposits 4 4
Regulatory assets 6,518 6,422
Other long-term assets 690                     704
Total long-term assets 7,293                     7,215
 
Total assets       $ 45,155                     $ 44,394
 
 
         
Consolidated Balance Sheets       Edison International
                 
March 31, December 31,
(in millions, except share amounts, unaudited)       2013                   2012
LIABILITIES AND EQUITY
Short-term debt $ 420 $ 175
Current portion of long-term debt 800
Accounts payable 1,100 1,423
Accrued taxes 134 61
Accrued interest 126 176
Customer deposits 196 193
Derivative liabilities 107 126
Regulatory liabilities 443 536
Deferred income taxes 174 64
Other current liabilities 779                     990  
Total current liabilities 4,279                     3,744  
Long-term debt 8,829                     9,231  
Deferred income taxes 6,289 6,127
Deferred investment tax credits 103 104
Customer advances 150 149
Derivative liabilities 1,014 939
Pensions and benefits 2,610 2,614
Asset retirement obligations 2,824 2,782
Regulatory liabilities 5,470 5,214
Other deferred credits and other long-term liabilities 2,278                     2,299  
Total deferred credits and other liabilities 20,738                     20,228  
Total liabilities 33,846                     33,203  
Commitments and contingencies
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date) 2,380 2,373
Accumulated other comprehensive loss (87 ) (87 )
Retained earnings 7,262                     7,146  
Total Edison International's common shareholders' equity 9,555                     9,432  
Preferred and preference stock of utility 1,754                     1,759  
Total noncontrolling interests 1,754                     1,759  
Total equity 11,309                     11,191  
Total liabilities and equity       $ 45,155                     $ 44,394  
 
 
         
Consolidated Statements of Cash Flows       Edison International
 
Three months ended March 31,
(in millions, unaudited)       2013                   2012
Cash flows from operating activities:                  
Net income $ 298 $ 112
Less: Income (loss) from discontinued operations 12                     (84 )
Income from continuing operations 286 196
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, decommissioning and amortization 414 388
Regulatory impacts of net nuclear decommissioning trust earnings 25 77
Other amortization and other 17 19
Stock-based compensation 6 8
Deferred income taxes and investment tax credits 174 30
Proceeds from U.S. treasury grants 29
Changes in operating assets and liabilities:
Receivables (38 ) 88
Inventory (11 ) 10
Margin and collateral deposits, net of collateral received (2 ) (1 )
Prepaid taxes (5 ) 11
Other current assets 82 17
Accounts payable (65 ) (47 )
Accrued taxes 60 170
Other current liabilities (255 ) (302 )
Derivative assets and liabilities, net 79 273
Regulatory assets and liabilities, net (199 ) (254 )
Other assets (13 ) (9 )
Other liabilities (49 )                   72  
Operating cash flows from continuing operations 506 775
Operating cash flows from discontinued operations, net                     (98 )
Net cash provided by operating activities 506                     677  
Cash flows from financing activities:
Long-term debt issued 398 395
Long-term debt issuance costs (4 ) (4 )
Long-term debt repaid (1 ) (2 )
Preference stock issued, net 387 345
Preference stock redeemed (400 )
Short-term debt financing, net 245 (86 )
Settlements of stock-based compensation, net (32 ) (22 )
Dividends to noncontrolling interests (30 ) (14 )
Dividends paid (110 )                   (106 )
Financing cash flows from continuing operations 453 506
Financing cash flows from discontinued operations, net                     279  
Net cash provided by financing activities       $ 453                     $ 785  
 
 
         
Consolidated Statements of Cash Flows       Edison International
 

Three months ended March 31,

(in millions, unaudited)       2013                   2012
Cash flows from investing activities:                  
Capital expenditures $ (979 ) $ (1,189 )
Proceeds from sale of nuclear decommissioning trust investments 435 602
Purchases of nuclear decommissioning trust investments and other (466 ) (684 )
Other investments and customer advances for construction (4 )                   (3 )
Investing cash flows from continuing operations (1,014 ) (1,274 )
Investing cash flows from discontinued operations, net                     (174 )
Net cash used by investing activities (1,014 )                   (1,448 )
Net (decrease) increase in cash and cash equivalents (55 ) 14
Cash and cash equivalents at beginning of period 170                     1,469  
Cash and cash equivalents at end of period 115 1,483
Cash and cash equivalents from discontinued operations                     1,300  
Cash and cash equivalents from continuing operations       $ 115                     $ 183  

Edison International
Media relations contact:
Charles Coleman, (626) 302-7982
or
Investor relations contact:
Scott Cunningham, (626) 302-2540

Source: Edison International

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