EX-99.1 2 dex991.htm EDISON INTERNATIONAL PRESS RELEASE Edison International Press Release

Exhibit 99.1

LOGO

 

FOR IMMEDIATE RELEASE    Media relations contact:
  

Charles Coleman, (626) 302-7982

 

Investor relations contact:

Scott Cunningham, (626) 302-2540

Edison International Reports First Quarter 2010 Financial Results

ROSEMEAD, Calif., May 7, 2010 – Edison International (NYSE: EIX) today reported first quarter 2010 results.

First quarter 2010 basic earnings per share were $0.72 compared to $0.76 per share in the same quarter last year. Core earnings in the first quarter of 2010 were $0.82 per share compared to $0.79 per share in the same quarter last year, mainly due to higher operating results at Edison Mission Group (EMG), partially offset by expense timing differences at Southern California Edison (SCE). Core earnings exclude discontinued operations and other non-core items as discussed below.

“During the first quarter, we achieved solid earnings in a difficult power market,” said Theodore F. Craver, Jr., chairman and chief executive officer of Edison International.

First Quarter Earnings Detail

SCE’s first quarter 2010 basic earnings were $0.50 per share compared to $0.64 per share in the first quarter of 2009. This decrease included a non-core charge of $0.12 per share to reverse previously recognized tax benefits eliminated by the federal health care legislation enacted in March 2010. Core earnings were $0.62 per share for the first quarter of 2010 compared to $0.64 per share in the same quarter last year. The two-cent decrease is primarily due to higher operating expense, including the impact of curtailed spending in the first quarter of last year until the 2009 CPUC General Rate Case decision was received in March 2009. This decrease was almost entirely offset by rate base growth and higher capitalized financing costs.

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Note: Basic earnings or losses per share refer to basic earnings or losses per common share attributable to Edison International throughout this release. Core earnings is a non-GAAP financial measure. See Reconciliation of Core Earnings to Basic Earnings and Reconciliation of Core Earnings Per Share Guidance to Revised Basic Earnings Per Share Guidance.

Edison International Reports First Quarter 2010 Financial Results

Page 2 of 10

 

EMG’s first quarter 2010 basic earnings were $0.24 per share compared to $0.14 per share in the first quarter of 2009. Core earnings were $0.22 per share compared to $0.17 per share in the same quarter last year. EMG’s 2010 core earnings increased from 2009 primarily due to higher distributions from EMG’s Doga and March Point natural gas facilities and higher trading income. Mainly offsetting this increase were lower results from EMG’s merchant coal plants driven primarily by lower energy prices and higher 2009 unrealized gains, partially offset by lower emission costs and higher capacity prices. Renewable project income was lower mainly due to less wind. First quarter 2010 non-core items include $0.02 per share of earnings from discontinued operations. First quarter 2009 per share non-core items include a $0.04 charge related to Edison Capital’s lease terminations, partially offset by $0.01 in earnings from discontinued operations.

2010 Earnings Guidance

Previously announced annual core earnings guidance of $3.15 - $3.45 per share is reaffirmed. The company has revised its 2010 GAAP earnings guidance by ($0.10) per share to reflect a $0.12 per share charge at SCE related to a change in the tax deductibility of a portion of retiree health care expenses, partially offset by earnings from discontinued operations of $0.02 per share at EMG. See the risk disclosure statement on page 3 and the financial teleconference presentation accompanying the company’s earnings conference call for further information.

Reconciliation of Core Earnings Per Share Guidance to Revised

Basic Earnings Per Share Guidance1

 

Core Earnings Per Share1

    March 1, 2010
2010  Earnings Guidance		     Revised as of May 7,  2010
2010 Earnings Guidance		  

EIX core earnings

    $ 3.15 – $3.45      $ 3.15 – $3.45   

Non-Core Items :

     

SCE –   Tax impact of health care legislation

      —        $ (0.12 ) 

EMG – Earnings from discontinued operations

      —          0.02   
                

EIX basic earnings

    $ 3.15 – $3.45      $ 3.05 – $3.35   
                

Midpoint of 2010 core guidance by business element:

     

SCE

    $ 2.80      $ 2.80   

EMG

      0.62        0.62   

EIX parent company and other

      (0.12 )      (0.12 ) 
                

Total

    $ 3.30      $ 3.30   
                

 

1 See Use of Non-GAAP Financial Measures on page 3. Basic earnings per share refer to basic earnings per common share attributable to Edison International common shareholders. The expected impact of participating securities is $(0.01) per share and is included in EIX parent company and other.

About Edison International

Edison International, 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, California, Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities, and Edison Mission Group, a competitive power generation business and parent company to Edison Mission Energy and Edison Capital.

# # #

Edison International Reports First Quarter 2010 Financial Results

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Appendix

Use of Non-GAAP Financial Measures, Conference Call Information,

Risk Disclosure Statement and Financial Schedules

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 earnings per share (EPS) by principal operating subsidiary internally for financial planning and for analysis of performance. We also use core earnings and EPS by principal operating subsidiary when communicating with analysts and investors regarding our earnings results and outlook to facilitate comparisons of the Company’s performance from period to period.

Core earnings is a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings and core earnings per share are defined as GAAP earnings and GAAP earnings per share excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. GAAP earnings refer to net income attributable to Edison International common shareholders or attributable to the common shareholders of each subsidiary and Edison International GAAP earnings per share refers to basic earnings per common share attributable to Edison International common shareholders. Core earnings are reconciled to basic earnings in the attached tables. EPS by principal operating subsidiary is based on the principal operating subsidiaries’ net income attributable to the common shareholders of each operating subsidiary, respectively, and Edison International’s weighted average outstanding common shares. The impact of participating securities (vested stock options that earn dividend equivalents that may participate in undistributed earnings with common stock) for each principal operating subsidiary is not material to each principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which we refer to as EIX parent company and other. EIX core EPS and core EPS by principal operating subsidiary are reconciled to basic EPS.

Reminder: Edison International Will Hold a Conference Call Today

Today, Edison International will hold a conference call to discuss its first quarter 2010 financial results at 8 a.m. (Pacific Daylight Time). Two-way participation in the telephone call is limited to financial analysts and investors, while all other interested parties are invited to participate in a simultaneous webcast at www.edisoninvestor.com. A presentation accompanying management’s comments on the conference call will be available on the web site as well at www.edisoninvestor.com. The domestic call-in number is (888) 889-2168 and the number for international callers is (773) 681-5951. The ID is “Edison”. In addition to the live simulcast, the webcast will remain posted at www.edisoninvestor.com and telephone replays will be available through May 14, 2010 at the following numbers: (866) 491-2943 for callers in the United States and (203) 369-1729 for international callers. The replay passcode is 80709.

Risk Disclosure Statement

Statements contained in this news release about future performance, including, without limitation, earnings guidance, asset and rate base growth, load growth, capital investments and other statements that are not purely historical, are forward-looking statements. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. 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. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis” in Edison International’s 2009 Form 10-K, most recent Form 10-Q, and other reports filed with the Securities and Exchange Commission which are available on our web site: www.edisoninvestor.com.

Edison International Reports First Quarter 2010 Financial Results

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Summary Financial Schedules

First Quarter Basic Earnings Per Share

 

Earnings (Loss) Per Common Share

Attributable to Edison International (Unaudited)

    Quarter Ended
March 31,		     Change  
   2010     2009    

SCE

    $ 0.50      $ 0.64      $ (0.14 ) 

EMG

      0.22        0.13        0.09   

EIX parent company and other

      (0.02 )      (0.02 )      —     
                        

EIX earnings from continuing operations

      0.70        0.75        (0.05 ) 
                        

EIX earnings from discontinued operations

      0.02        0.01        0.01   
                        

EIX basic earnings1

    $ 0.72      $ 0.76      $ (0.04 ) 
                        

EIX diluted earnings

    $ 0.72      $ 0.76      $ (0.04 ) 
                        

 

1 The impact of participating securities on the per share amounts is included in EIX parent company and other and was zero per share for the quarter ended March 31, 2010 and $(0.01) per share for the quarter ended March 31, 2009.

First Quarter Reconciliation of Core Earnings Per Share to Basic Earnings Per Share

 

Earnings (Loss) Per Common Share

Attributable to Edison International (Unaudited)

    Quarter Ended
March 31,		     Change  
   2010     2009    

Core Earnings1

       

SCE

    $ 0.62      $ 0.64      $ (0.02 ) 

EMG

      0.22        0.17        0.05   

EIX parent company and other

      (0.02 )      (0.02 )      —     
                        

EIX core earnings

      0.82        0.79        0.03   
                        

Non-core items

       

SCE –   Tax impact of health care legislation

      (0.12 )      —          (0.12 ) 

EMG – Lease terminations

      —          (0.04 )      0.04   

EMG – Earnings from discontinued operations

      0.02        0.01        0.01   
                        

Total non-core items

      (0.10 )      (0.03 )      (0.07 ) 
                        

EIX basic earnings1

    $ 0.72      $ 0.76      $ (0.04 ) 
                        

 

1 See Use of Non-GAAP Financial Measures on page 3. The impact of participating securities on the per share amounts is included in EIX parent company and other and was zero per share for the quarter ended March 31, 2010 and $(0.01) per share for the quarter ended March 31, 2009.

Edison International Reports First Quarter 2010 Financial Results

Page 5 of 10

 

First Quarter Basic Earnings

 

Earnings (Loss) (in millions)

Attributable to Edison International (Unaudited)

    Quarter Ended
March 31,		        
   2010     2009     Change  

SCE

    $ 164      $ 208      $ (44 ) 

EMG

      71        45        26   

EIX parent company and other

      (5 )      (6 )      1   
                        

EIX earnings from continuing operations

      230        247        (17 ) 

EIX earnings from discontinued operations

      6        3        3   
                        

EIX basic earnings

    $ 236      $ 250      $ (14 ) 
                        

First Quarter Reconciliation of Core Earnings to Basic Earnings

 

Earnings (Loss) (in millions)

Attributable to Edison International (Unaudited)

    Quarter Ended
March 31,		        
   2010     2009     Change  

Core Earnings1

       

SCE

    $ 203      $ 208      $ (5 ) 

EMG

      71        56        15   

EIX parent company and other

      (5 )      (6 )      1   
                        

EIX core earnings

      269        258        11   
                        

Non-core items

       

SCE –   Tax impact of health care legislation

      (39 )      —          (39 ) 

EMG – Lease terminations

      —          (11 )      11   

EMG – Earnings from discontinued operations

      6        3        3   
                        

Total non-core items

      (33 )      (8 )      (25 ) 
                        

EIX basic earnings

    $ 236      $ 250      $ (14 ) 
                        

 

1 See Use of Non-GAAP Financial Measures on page 3.

Edison International Reports First Quarter 2010 Financial Results

Page 6 of 10

 

 

Consolidated Statements of Income    Edison International  
     Three Months Ended
March  31,		  

(in millions, except per-share amounts)

    2010     2009  
     (Unaudited)  

Electric utility

    $ 2,159      $ 2,189   

Competitive power generation

      652        624   

Other

      (1 )      (1 ) 
                

Total operating revenue

      2,810        2,812   
                

Fuel

      295        387   

Purchased power

      608        540   

Operations and maintenance

      1,037        969   

Depreciation, decommissioning and amortization

      369        342   

Lease terminations and other

      3        21   
                

Total operating expenses

      2,312        2,259   
                

Operating income

      498        553   

Interest and dividend income

      19        10   

Equity in income (loss) from partnerships and unconsolidated subsidiaries – net

      18        (8 ) 

Other income

      34        26   

Interest expense – net of amounts capitalized

      (168 )      (187 ) 

Other expenses

      (8 )      (6 ) 
                

Income from continuing operations before income taxes

      393        388   

Income tax expense

      150        122   
                

Income from continuing operations

      243        266   

Income from discontinued operations – net of tax

      6        3   
                

Net income

      249        269   

Less: Net income attributable to noncontrolling interests

      13        19   
                

Net income attributable to Edison International common shareholders

    $ 236      $ 250   
                

Amounts attributable to Edison International common shareholders:

     

Income from continuing operations, net of tax

    $ 230      $ 247   

Income from discontinued operations, net of tax

      6        3   
                

Net income attributable to Edison International common shareholders

    $ 236      $ 250   
                

Basic earnings per common share attributable to Edison International common shareholders:

     

Weighted-average shares of common stock outstanding

      326        326   

Continuing operations

    $ 0.70      $ 0.75   

Discontinued operations

      0.02        0.01   
                

Total

    $ 0.72      $ 0.76   
                

Diluted earnings per common share attributable to Edison International common shareholders:

     

Weighted-average shares of common stock outstanding, including effect of dilutive securities

      328        327   

Continuing operations

    $ 0.70      $ 0.75   

Discontinued operations

      0.02        0.01   
                

Total

    $ 0.72      $ 0.76   
                

Dividends declared per common share

    $ 0.315      $ 0.310   

Edison International Reports First Quarter 2010 Financial Results

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Consolidated Balance Sheets    Edison International  

(in millions)

    March 31,
2010		     December 31,
2009		  
     (Unaudited)  

ASSETS

     

Cash and equivalents

    $ 1,418      $ 1,673   

Short-term investments

      10        10   

Receivables, less allowances of $53 for uncollectible accounts at both dates

      843        1,017   

Accrued unbilled revenue

      360        347   

Inventory

      522        533   

Derivative assets

      324        357   

Restricted cash

      66        69   

Margin and collateral deposits

      129        125   

Regulatory assets

      303        120   

Deferred income taxes

      —          3   

Other current assets

      292        176   
                

Total current assets

      4,267        4,430   
                

Competitive power generation and other property – less accumulated depreciation of $1,669 and $2,231 at respective dates

      4,917        5,147   

Nuclear decommissioning trusts

      3,248        3,140   

Investments in partnerships and unconsolidated subsidiaries

      527        216   

Investments in leveraged leases

      162        160   

Other investments

      98        91   
                

Total investments and other assets

      8,952        8,754   
                

Utility plant, at original cost:

     

Transmission and distribution

      22,674        22,214   

Generation

      2,680        2,667   

Accumulated depreciation

      (6,064 )      (5,921 ) 

Construction work in progress

      2,790        2,701   

Nuclear fuel, at amortized cost

      314        305   
                

Total utility plant

      22,394        21,966   
                

Derivative assets

      223        268   

Restricted deposits

      44        43   

Rent payments in excess of levelized rent expense under plant operating leases

      1,083        1,038   

Regulatory assets

      4,675        4,139   

Other long-term assets

      719        806   
                

Total long-term assets

      6,744        6,294   
                

Total assets

    $ 42,357      $ 41,444   
                

 

Edison International Reports First Quarter 2010 Financial Results

Page 8 of 10

 

 

Consolidated Balance Sheets    Edison International

(in millions, except share amounts)

    March 31,
2010		    December 31,
2009
     (Unaudited)

LIABILITIES AND EQUITY

      

Short-term debt

    $ 277    $ 85

Current portion of long-term debt

      46      377

Accounts payable

      977      1,347

Accrued taxes

      190      186

Accrued interest

      215      196

Customer deposits

      234      238

Derivative liabilities

      179      107

Regulatory liabilities

      288      367

Deferred income taxes

      155      —  

Other current liabilities

      696      884
             

Total current liabilities

      3,257      3,787
             

Long-term debt

      11,025      10,437
             

Deferred income taxes

      4,522      4,334

Deferred investment tax credits

      100      102

Customer advances

      112      119

Derivative liabilities

      931      529

Pensions and benefits

      2,090      2,061

Asset retirement obligations

      3,274      3,241

Regulatory liabilities

      3,521      3,328

Other deferred credits and other long-term liabilities

      2,542      2,500
             

Total deferred credits and other liabilities

      17,092      16,214
             

Total liabilities

      31,374      30,438
             

Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date)

      2,311      2,304

Accumulated other comprehensive income

      116      37

Retained earnings

      7,642      7,500
             

Total Edison International’s common shareholders’ equity

      10,069      9,841

Noncontrolling interests

      7      258

Preferred and preference stock of utility not subject to mandatory redemption

      907      907
             

Total equity

      10,983      11,006
             

Total liabilities and equity

    $ 42,357    $ 41,444
             

Edison International Reports First Quarter 2010 Financial Results

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Consolidated Statements of Cash Flows    Edison International  
     Three Months Ended
March  31,		  

(in millions)

    2010     2009  
     (Unaudited)  

Cash flows from operating activities:

     

Net income

    $ 249      $ 269   

Less: Income from discontinued operations

      6        3   
                

Income from continuing operations

      243        266   

Adjustments to reconcile to net cash provided by operating activities:

     

Depreciation, decommissioning and amortization

      369        342   

Regulatory impacts of net nuclear decommissioning trust earnings (reflected in accumulated depreciation)

      38        32   

Other amortization

      24        26   

Lease terminations and other

      3        21   

Stock-based compensation

      7        5   

Equity in (income) loss from partnerships and unconsolidated subsidiaries – net

      (18 )      8   

Distributions and dividends from unconsolidated entities

      22        (3 ) 

Deferred income taxes and investment tax credits

      218        63   

Income from leveraged leases

      (1 )      (11 ) 

Changes in operating assets and liabilities:

     

Receivables

      150        86   

Inventory

      (2 )      4   

Restricted cash

      3        —     

Margin and collateral deposits – net of collateral received

      (6 )      (23 ) 

Other current assets

      (154 )      37   

Rent payments in excess of levelized rent expense

      (45 )      (49 ) 

Accounts payable

      (138 )      (141 ) 

Accrued taxes

      (6 )      85   

Other current liabilities

      (182 )      (44 ) 

Derivative assets and liabilities – net

      695        (220 ) 

Regulatory assets and liabilities – net

      (636 )      244   

Other assets

      (11 )      (13 ) 

Other liabilities

      20        (32 ) 

Operating cash flows from discontinued operations

      6        3   
                

Net cash provided by operating activities

      599        686   
                

Cash flows from financing activities:

     

Long-term debt issued

      547        750   

Long-term debt issuance costs

      (20 )      (10 ) 

Long-term debt repaid

      (343 )      (179 ) 

Bonds repurchased

      —          (219 ) 

Short-term debt financing – net

      192        (585 ) 

Stock-based compensation – net

      (1 )      1   

Dividends and distributions to noncontrolling interests

      (13 )      (25 ) 

Dividends paid

      (103 )      (101 ) 
                

Net cash provided (used) by financing activities

    $ 259      $ (368 ) 
                

 

Edison International Reports First Quarter 2010 Financial Results

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Consolidated Statements of Cash Flows    Edison International  
     Three Months Ended
March 31,		  

(in millions)

    2010     2009  
     (Unaudited)  

Cash flows from investing activities:

     

Capital expenditures

    $ (951 )    $ (785 ) 

Purchase of interest in acquired companies

      —          (6 ) 

Proceeds from termination of leases

      —          121   

Proceeds from sale of nuclear decommissioning trust investments

      286        658   

Purchases of nuclear decommissioning trust investments and other

      (335 )      (700 ) 

Proceeds from partnerships and unconsolidated subsidiaries, net of investment

      32        10   

Maturities and sale of short-term investments

      2        1   

Purchase of short-term investments

      (1 )      (1 ) 

Investments in other assets

      (55 )      11   
                

Net cash used by investing activities

      (1,022 )      (691 ) 
                

Effect of consolidation of variable interest entities

      5        —     

Effect of deconsolidation of variable interest entities

      (96 )      —     
                

Net decrease in cash and equivalents

      (255 )      (373 ) 

Cash and equivalents, beginning of period

      1,673        3,916   
                

Cash and equivalents, end of period

    $ 1,418      $ 3,543