Edison International Press Release

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 Fourth Quarter 2010 Results;

Announces 2011 Earnings Guidance

ROSEMEAD, Calif., Feb. 28, 2011 – Edison International (NYSE: EIX) today reported fourth quarter 2010 basic earnings of $0.51 per share, compared to $0.65 per share in the same quarter last year. Fourth quarter 2010 core earnings were $0.58 per share, compared to core earnings of $0.59 per share in the fourth quarter of 2009. Higher fourth quarter earnings at Southern California Edison (SCE) were more than offset by lower results at Edison Mission Group (EMG) and higher parent company costs.

For 2010, the company reported basic earnings of $3.84 per share compared to $2.59 per share in 2009, while core earnings for 2010 increased 7 percent to $3.48 per share compared to $3.25 per share in 2009. The improvement in core earnings was driven by higher earnings at SCE, offset by a decline in earnings at EMG and a slight increase in parent company costs.

“Edison International had a solid year, led by SCE’s strong earnings growth,” said Theodore F. Craver, Jr., chairman and chief executive officer of Edison International. “Looking ahead to 2011, we expect continued earnings growth at SCE. EMG faces weak power market fundamentals in the year ahead, but we see positive value in the business as power market fundamentals improve.”

Fourth Quarter Earnings Detail

SCE’s fourth quarter 2010 basic earnings were $0.56 per share compared to $0.53 per share in the fourth quarter of 2009. Core earnings were also $0.56 per share while fourth quarter 2009 earnings were $0.51 per share. The core earnings increase was primarily driven by rate base growth. Fourth quarter 2009 results included a non-core benefit related to tax settlements.

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Note: GAAP earnings and losses refer to net income or losses attributable to Edison International throughout this release. Core earnings is a non-GAAP financial measure. See Reconciliation of Core Earnings to GAAP Earnings and Reconciliation of Core Earnings Guidance to GAAP Earnings Guidance.

Edison International Reports Fourth Quarter 2010 Financial Results

Page 2 of 13

EMG’s fourth quarter 2010 basic earnings were $0.03 per share compared to $0.17 per share in the fourth quarter of 2009. Core earnings were $0.10 per share compared to $0.13 per share in the same quarter last year. Core earnings declined largely from higher income tax expense and lower trading revenues. Fourth quarter 2010 results included a non-core charge related to write-offs of capitalized costs at its Powerton plant in Illinois. Fourth quarter 2009 results included a non-core benefit from tax settlements.

Edison International parent company and other reported a fourth quarter 2010 loss of $0.08 per share compared to a $0.05 per share loss in the fourth quarter of 2009 due to higher income tax expense.

Full-Year Earnings Detail

SCE’s basic earnings in 2010 were $3.19 per share compared to $3.76 per share in 2009. Core earnings in 2010 were $3.01 per share compared to $2.68 per share in 2009. The increase in core earnings was primarily due to rate base growth, lower income tax expense and earnings from construction activities. The lower tax expense in 2010 includes a change in the method of tax accounting for asset removal costs primarily related to SCE’s infrastructure replacement program. Non-core items in 2010 included benefits from tax settlements and a charge related to health care legislation, and in 2009 included benefits from the tax settlements and transferring a power plant to utility rate base.

EMG’s basic earnings in 2010 were $0.69 per share compared to a 2009 loss of $1.21 per share. Core earnings were $0.59 per share compared to $0.68 per share in 2009. EMG’s core earnings were lower primarily from higher plant maintenance costs in 2010 due to scheduled merchant power plant outages, unrealized hedge-related accounting losses in 2010 compared to unrealized gains in 2009, and higher income tax expense. The decline was partially offset by higher energy trading revenues. Non-core items included the impacts of discontinued operations in both periods, a benefit from tax settlements and the charge from the write-off of capitalized costs in 2010, and a charge related to the tax settlements and related termination of leases in 2009.

Edison International parent company and other reported a 2010 basic loss of $0.04 per share compared to basic earnings of $0.04 per share in the prior year. Core losses were $0.12 per share in 2010 and $0.11 per share in 2009. Core losses exclude non-core benefits associated with the global settlement in both years.

2011 Earnings Guidance

The company announced 2011 core earnings guidance of $2.60 to $2.90 per share. See the risk disclosure statement on page 4 and the presentation accompanying the company’s conference call for further information.

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Edison International Reports Fourth Quarter 2010 Financial Results

Page 3 of 13

Reconciliation of Core Earnings Guidance to Basic Earnings Guidance¹


Per Share	2011 Earnings Guidance
EIX core earnings¹	$	2.60 - $2.90
Non-Core Items		—

EIX basic earnings	$	2.60 - $2.90

Midpoint of 2011 core guidance by business element:
SCE	$	3.08
EMG		(0.19	)
EIX parent company and other		(0.14	)

Total	$	2.75

1	See Use of Non-GAAP Financial Measures on page 4. Basic earnings per share refer to basic earnings per common share attributable to Edison International common shareholders. There is no expected impact of participating securities.

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 Fourth Quarter 2010 Financial Results

Page 4 of 13

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 basic 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. Core earnings are reconciled to GAAP 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 fourth quarter 2010 financial results at 8 a.m. (Pacific Standard 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 website as well at www.edisoninvestor.com. The domestic call-in number is (800) 369-2198 and the number for international callers is (773) 756-4618. The pass code is “Edison”. In addition to the live simulcast, the webcast will remain posted at www.edisoninvestor.com and telephone replays will be available through March 7, 2011 at the following numbers: (800) 224-1285 for callers in the United States and (402) 220-3691 for international callers. Replay passcode is 80709.

Risk Disclosure Statement

Statements contained in this news release about future earnings 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. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis” in Edison International’s 2010 Form 10-K and other reports filed with the Securities and Exchange Commission and are available on our Web site 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.

Edison International Reports Fourth Quarter 2010 Financial Results

Page 5 of 13

Summary Financial Schedules

Fourth Quarter Basic Earnings Per Share


Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited)	Quarter Ended December 31,						Change
	2010			2009			Change
SCE	$	0.56		$	0.53		$	0.03
EMG		0.03			0.17			(0.14	)
EIX parent company and other		(0.08	)		(0.05	)		(0.03	)

EIX earnings from continuing operations		0.51			0.65			(0.14	)

EIX earnings from discontinued operations		—			—			—

EIX basic earnings¹	$	0.51		$	0.65		$	(0.14	)

EIX diluted earnings	$	0.51		$	0.65		$	(0.14	)

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 both quarters.

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


Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited)	Quarter Ended December 31,						Change
	2010			2009			Change
Core Earnings¹
SCE	$	0.56		$	0.51		$	0.05
EMG		0.10			0.13			(0.03	)
EIX parent company and other		(0.08	)		(0.05	)		(0.03	)

EIX core earnings		0.58			0.59			(0.01	)

Non-core items
Global settlement²
SCE		—			0.02			(0.02	)
EMG		—			0.04			(0.04	)
EMG write-off of capitalized costs		(0.07	)		—			(0.07	)
EMG – discontinued operations		—			—			—

Total non-core items		(0.07	)		0.06			(0.13	)

EIX basic earnings¹	$	0.51		$	0.65		$	(0.14	)

1	See Use of Non-GAAP Financial Measures on page 4. The impact of participating securities on the per share amounts is included in EIX parent company and other and was zero per share for both quarters.

2	Tax settlements including resolution of Federal and state tax matters and related lease terminations.

Edison International Reports Fourth Quarter 2010 Financial Results

Page 6 of 13

Fourth Quarter Basic Earnings


Earnings (Loss) (in millions) Attributable to Edison International (Unaudited)	Quarter Ended December 31,
	2010			2009			Change
SCE	$	181		$	172		$	9
EMG		10			56			(46	)
EIX parent company and other		(25	)		(15	)		(10	)

EIX earnings from continuing operations		166			213			(47	)
EIX loss from discontinued operations		—			(1	)		1

EIX basic earnings	$	166		$	212		$	(46	)

Fourth Quarter Reconciliation of Core Earnings to Basic Earnings


Earnings (Loss) (in millions) Attributable to Edison International (Unaudited)	Quarter Ended December 31,
	2010			2009			Change
Core Earnings¹
SCE	$	181		$	167		$	14
EMG		34			42			(8	)
EIX parent company and other		(25	)		(15	)		(10	)

EIX core earnings		190			194			(4	)

Non-core items
Global settlement
SCE		—			5			(5	)
EMG		—			14			(14	)
EMG – write-off of capitalized costs		(24	)		—			(24	)
EMG – discontinued operations		—			(1	)		1

Total non-core items		(24	)		18			(42	)

EIX basic earnings	$	166		$	212		$	(46	)

1	See Use of Non-GAAP Financial Measures on page 4.

Edison International Reports Fourth Quarter 2010 Financial Results

Page 7 of 13

Full-Year Basic Earnings Per Share


Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited)	Year Ended December 31,
	2010			2009			Change
SCE	$	3.19		$	3.76		$	(0.57	)
EMG		0.68			(1.19	)		1.87
EIX parent company and other		(0.04	)		0.04			(0.08	)

EIX earnings from continuing operations		3.83			2.61			1.22

EIX earnings (loss) from discontinued operations		0.01			(0.02	)		0.03

EIX basic earnings¹	$	3.84		$	2.59		$	1.25

EIX diluted earnings	$	3.82		$	2.58		$	1.24

1	The impact of participating securities is included in EIX parent company and other and was $(0.01) per share for 2010 and 2009.

Full-Year Reconciliation of Core Earnings Per Share to Basic Earnings Per Share


Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited)	Year Ended December 31,
	2010			2009			Change
Core Earnings¹
SCE	$	3.01		$	2.68		$	0.33
EMG		0.59			0.68			(0.09	)
EIX parent company and other		(0.12	)		(0.11	)		(0.01	)

EIX core earnings		3.48			3.25			0.23

Non-core items
SCE – regulatory items		(0.12	)		0.14			(0.26	)
Global settlement
SCE		0.30			0.94			(0.64	)
EMG		0.16			(1.87	)		2.03
EIX parent company and other		0.08			0.15			(0.07	)
EMG – write-off of capitalized costs		(0.07	)		—			(0.07	)
EMG – discontinued operations		0.01			(0.02	)		0.03

Total non-core items		0.36			(0.66	)		1.02

EIX basic earnings¹	$	3.84		$	2.59		$	1.25

1	See Use of Non-GAAP Financial Measures on page 4. The impact of participating securities is included in EIX parent company and other and was $(0.01) per share for 2010 and 2009.

Edison International Reports Fourth Quarter 2010 Financial Results

Page 8 of 13

Full-Year Basic Earnings


Earnings (Loss) (in millions) Attributable to Edison International (Unaudited)	Year Ended December 31,
	2010			2009			Change
SCE	$	1,040		$	1,226		$	(186	)
EMG		220			(388	)		608
EIX parent company and other		(8	)		18			(26	)

EIX earnings from continuing operations		1,252			856			396
EIX earnings (loss) from discontinued operations		4			(7	)		11

EIX basic earnings	$	1,256		$	849		$	407

Full-Year Reconciliation of Core Earnings to Basic Earnings


Earnings (Loss) (in millions) Attributable to Edison International (Unaudited)	Year Ended December 31,
	2010			2009			Change
Core Earnings¹
SCE	$	984		$	874		$	110
EMG		192			222			(30	)
EIX parent company and other		(36	)		(32	)		(4	)

EIX core earnings		1,140			1,064			76

Non-core items
SCE – regulatory items		(39	)		46			(85	)
Global settlement
SCE		95			306			(211	)
EMG		52			(610	)		662
EIX parent company and other		28			50			(22	)
EMG – write-off of capitalized costs		(24	)		—			(24	)
EMG – discontinued operations		4			(7	)		11

Total non-core items		116			(215	)		331

EIX basic earnings	$	1,256		$	849		$	407

1	See Use of Non-GAAP Financial Measures on page 4.

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Edison International Reports Fourth Quarter 2010 Financial Results

Page 9 of 13


Consolidated Statements of Income	Edison International

	Years ended December 31,
(in millions, except per-share amounts)	2010			2009			2008
Electric utility	$	9,980		$	9,962		$	11,246
Competitive power generation		2,429			2,399			2,866

Total operating revenue		12,409			12,361			14,112

Fuel		1,172			1,517			2,147
Purchased power		2,930			2,751			3,845
Operations and maintenance		4,612			4,387			4,288
Depreciation, decommissioning and amortization		1,522			1,418			1,313
Lease terminations and other		47			890			(44	)

Total operating expenses		10,283			10,963			11,549

Operating income		2,126			1,398			2,563
Interest and dividend income		31			32			62
Equity in income from partnerships and unconsolidated subsidiaries – net		106			42			31
Other income		148			171			113
Interest expense – net of amounts capitalized		(703	)		(732	)		(700	)
Other expenses		(51	)		(57	)		(125	)

Income from continuing operations before income taxes		1,657			854			1,944
Income tax expense (benefit)		354			(98	)		596

Income from continuing operations		1,303			952			1,348
Income (loss) from discontinued operations – net of tax		4			(7	)		—

Net income		1,307			945			1,348
Less: Dividends on preferred and preference stock of utility		52			51			51
Other noncontrolling interests		(1	)		45			82

Net income attributable to Edison International common shareholders	$	1,256		$	849		$	1,215

Amounts attributable to Edison International common shareholders:
Income from continuing operations, net of tax	$	1,252		$	856		$	1,215
Income (loss) from discontinued operations, net of tax		4			(7	)		—

Net income attributable to Edison International common shareholders	$	1,256		$	849		$	1,215

Basic earnings per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding		326			326			326
Continuing operations	$	3.83		$	2.61		$	3.69
Discontinued operations		0.01			(0.02	)		—

Total	$	3.84		$	2.59		$	3.69

Diluted earnings per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding, including effect of dilutive securities		329			327			329
Continuing operations	$	3.81		$	2.60		$	3.68
Discontinued operations		0.01			(0.02	)		—

Total	$	3.82		$	2.58		$	3.68

Dividends declared per common share	$	1.265		$	1.245		$	1.225

Edison International Reports Fourth Quarter 2010 Financial Results

Page 10 of 13


Consolidated Balance Sheets	Edison International

	December 31,
(in millions)	2010		2009
ASSETS
Cash and cash equivalents	$	1,389	$	1,673
Receivables, less allowances of $85 and $53 for uncollectible accounts at respective dates		931		1,017
Accrued unbilled revenue		442		347
Inventory		568		533
Prepaid taxes		390		33
Derivative assets		133		357
Restricted cash		2		69
Margin and collateral deposits		65		125
Regulatory assets		378		120
Other current assets		124		156

Total current assets		4,422		4,430

Nuclear decommissioning trusts		3,480		3,140
Investments in partnerships and unconsolidated subsidiaries		559		216
Other investments		223		251

Total investments		4,262		3,607

Utility property, plant and equipment, net		24,778		21,966
Competitive power generation and other property, plant and equipment, net		5,406		5,147

Total property, plant and equipment		30,184		27,113

Derivative assets		437		268
Restricted deposits		47		43
Rent payments in excess of levelized rent expense under plant operating leases		1,187		1,038
Regulatory assets		4,347		4,139
Other long-term assets		644		806

Total long-term assets		6,662		6,294

Total assets	$	45,530	$	41,444

Edison International Reports Fourth Quarter 2010 Financial Results

Page 11 of 13


Consolidated Balance Sheets	Edison International

	December 31,
(in millions, except share amounts)	2010			2009
LIABILITIES AND EQUITY
Short-term debt	$	115		$	85
Current portion of long-term debt		48			377
Accounts payable		1,362			1,347
Accrued taxes		52			186
Accrued interest		205			196
Customer deposits		217			238
Derivative liabilities		217			107
Regulatory liabilities		738			367
Other current liabilities		998			884

Total current liabilities		3,952			3,787

Long-term debt		12,371			10,437

Deferred income taxes		5,625			4,334
Deferred investment tax credits		122			102
Customer advances		112			119
Derivative liabilities		468			529
Pensions and benefits		2,260			2,061
Asset retirement obligations		2,561			3,241
Regulatory liabilities		4,524			3,328
Other deferred credits and other long-term liabilities		2,041			2,500

Total deferred credits and other liabilities		17,713			16,214

Total liabilities		34,036			30,438

Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date)		2,331			2,304
Accumulated other comprehensive income (loss)		(76	)		37
Retained earnings		8,328			7,500

Total Edison International’s common shareholders’ equity		10,583			9,841

Preferred and preference stock of utility		907			907
Other noncontrolling interests		4			258

Total noncontrolling interests		911			1,165

Total equity		11,494			11,006

Total liabilities and equity	$	45,530		$	41,444

Edison International Reports Fourth Quarter 2010 Financial Results

Page 12 of 13


Consolidated Statements of Cash Flows	Edison International

	Years ended December 31,
(in millions)	2010			2009			2008
Cash flows from operating activities:
Net income	$	1,307		$	945		$	1,348
Less: Income (loss) from discontinued operations		4			(7	)		—

Income from continuing operations		1,303			952			1,348
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, decommissioning and amortization		1,522			1,418			1,313
Regulatory impacts of net nuclear decommissioning trust earnings (reflected in accumulated depreciation)		189			158			(10	)
Other amortization		118			120			106
Lease terminations and other		47			888			(44	)
Stock-based compensation		30			22			34
Equity in income from partnerships and unconsolidated subsidiaries – net		(106	)		(42	)		(31	)
Distributions and dividends from unconsolidated entities		92			31			(8	)
Deferred income taxes and investment tax credits		1,139			(1,457	)		207
Proceeds from U.S. Treasury grants		92			—			—
Income from leveraged leases		(5	)		(14	)		(51	)
Changes in operating assets and liabilities:
Receivables		(155	)		80			128
Inventory		(49	)		20			(114	)
Restricted cash		68			(69	)		—
Margin and collateral deposits – net of collateral received		63			30			(19	)
Prepaid taxes		(357	)		178			(66	)
Other current assets		(92	)		24			18
Rent payments in excess of levelized rent expense		(149	)		(160	)		(162	)
Accounts payable		(3	)		152			(160	)
Accrued taxes		(135	)		(402	)		340
Other current liabilities		13			31			(39	)
Derivative assets and liabilities – net		(44	)		(581	)		849
Regulatory assets and liabilities – net		278			1,457			(2,946	)
Other assets		(71	)		62			224
Other liabilities		(315	)		154			1,344
Operating cash flows from discontinued operations		4			(7	)		—

Net cash provided by operating activities		3,477			3,045			2,261

Cash flows from financing activities:
Long-term debt issued		1,936			939			2,632
Long-term debt issuance costs		(38	)		(25	)		(21	)
Long-term debt repaid		(396	)		(1,044	)		(295	)
Bonds repurchased		—			(219	)		(212	)
Preferred stock redeemed		—			—			(7	)
Short-term debt financing – net		30			(2,058	)		1,643
Settlements of stock-based compensation – net		(16	)		(3	)		(26	)
Cash contributions from noncontrolling interests		—			2			12
Dividends and distributions to noncontrolling interests		(52	)		(117	)		(170	)
Dividends paid		(411	)		(404	)		(397	)

Net cash provided (used) by financing activities	$	1,053		$	(2,929	)	$	3,159

Edison International Reports Fourth Quarter 2010 Financial Results

Page 13 of 13


Consolidated Statements of Cash Flows	Edison International

	Years ended December 31,
(in millions)	2010			2009			2008
Cash flows from investing activities:
Capital expenditures	$	(4,543	)	$	(3,282	)	$	(2,824	)
Purchase of interest in acquired companies		(4	)		(22	)		(19	)
Proceeds from termination of leases		—			1,420			—
Proceeds from sale of property and interests in projects		2			7			113
Proceeds from sale of nuclear decommissioning trust investments		1,432			2,217			3,130
Purchases of nuclear decommissioning trust investments and other		(1,651	)		(2,416	)		(3,137	)
Proceeds from partnerships and unconsolidated subsidiaries, net of investment		44			11			65
Maturities and sale of short-term investments		7			4			96
Purchase of short-term investments		(4	)		(7	)		(22	)
Investments in other assets		(6	)		(291	)		(347	)
Effect of consolidation and deconsolidation of variable interest entities		(91	)		—			—

Net cash used by investing activities		(4,814	)		(2,359	)		(2,945	)

Net increase (decrease) in cash and cash equivalents		(284	)		(2,243	)		2,475
Cash and cash equivalents, beginning of year		1,673			3,916			1,441

Cash and cash equivalents, end of year	$	1,389		$	1,673		$	3,916