EX-99.1 2 ex991-4q2013earningspressr.htm EIX PRESS RELEASE DATED 2/25/14 ex991-4Q2013EarningsPressRelease


 
NEWS
 
 
 
FOR IMMEDIATE RELEASE        
Media relations contact:
Charles Coleman, (626) 302-7982
Investor relations contact:
Scott Cunningham, (626) 302-2540


Edison International Reports Fourth Quarter and Full-Year 2013 Results

ROSEMEAD, Calif., February 25, 2014 - Edison International (NYSE: EIX) today reported full-year 2013 net income attributable to common shareholders of $915 million, or $2.81 per share, compared to losses of $183 million, or $0.56 per share, in the full-year of 2012.

“Edison International's 2013 earnings were driven by Southern California Edison's electric infrastructure investments and operational efficiencies," said Ted Craver, chairman and chief executive officer of Edison International. “Higher levels of infrastructure investments are needed to support grid reliability, while contributing to our expectation that core earnings in 2014 will be in the range of $3.60 to $3.80 per share."
Full-year 2013 results included $322 million, or $0.99 per share, of net charges and losses from discontinued operations, which are not considered part of core earnings. Adjusting for these net charges, Edison International earned $1,237 million, or $3.80 per share, of core earnings in 2013. Full-year 2012 results included $1,461 million, or $4.48 per share, of net non-core charges and losses from discontinued operations that, when adjusted, result in core earnings of $1,278 million, or $3.92 per share. Southern California Edison's 2013 core earnings decreased $73 million, or $0.22 per share, primarily due to lower income tax benefits and the impact from ceasing to record a return on rate base for San Onofre after the decision to permanently retire the plant, partially offset by lower incremental inspection and repair costs at San Onofre and lower operating costs. The earnings increase from rate base growth was offset by the lower authorized 2013 return on common equity.

For the fourth quarter of 2013 Edison International reported net income attributable to common shareholders of $301 million, or $0.92 per share, compared to losses of $539 million, or $1.65 per share, in 2012.

Fourth quarter 2013 results included $37 million, or $0.11 per share, of earnings from discontinued operations, which are not considered part of core earnings. Adjusting for earnings from discontinued operations, Edison International earned $264 million, or $0.81 per share, of core earnings in the fourth quarter of 2013. Fourth quarter 2012 results included $1,121 million, or $3.44 per share, of net charges and losses from discontinued operations resulting in core earnings of $582 million, or $1.79 per share. Southern California Edison's core earnings decreased $344 million, or $1.06 per share, due to the delay of the 2012 CPUC general rate case decision, which resulted in recognizing a full year of revenue in the fourth quarter of 2012, higher income taxes and the impact from ceasing to record a return on rate base for San Onofre after the decision to permanently retire the plant. Partially offsetting these decreases were lower operating and maintenance expenses and incremental inspection and repair costs at San Onofre. The earnings increase from the rate base growth for the quarter was offset by the lower authorized 2013 return on common equity.





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Edison International Reports Fourth Quarter and Full-Year 2013 Financial Results
Page 2 of 9


Edison International uses core earnings, which is a non-GAAP financial measure that adjusts for non-recurring charges, which are not considered as part of core earnings, when communicating its earnings outlook to analysts and investors, and internally for financial planning, analysis of performance, and for reporting of results to the Board of Directors. Edison International management believes that core earnings provide a more meaningful representation of Edison International’s fundamental earnings power. Please see the Appendix to this news release for a reconciliation of core earnings to basic earnings.

2014 Earnings Guidance

The company announced 2014 basic and core earnings guidance of $3.60 to $3.80 per share. Non-recurring charges that are not considered part of core earnings are not included in the guidance. See the risk disclosure statement in the Appendix and the presentation accompanying the company’s conference call for further information.

About Edison International

Edison International (NYSE:EIX), through its subsidiaries, is a generator and distributor of electric power and an investor in energy services and technologies, 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.

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Edison International Reports Fourth Quarter and Full-Year 2013 Financial Results
Page 3 of 9


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 awards 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 Edison International 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 Form 10-K, most recent Form 10-Q, 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, February 25, 2014, 2:00 p.m. (Pacific Time)
Telephone Numbers:    1-800-369-2198 (US) and 1-773-756-4618 (Int'l) - Passcode: Edison
Telephone Replay:    1-800-685-9501 (US) and 1-203-369-3318 (Int’l) - Passcode: 468529
Telephone replay available through March 6, 2014
Webcast:        www.edisoninvestor.com


Edison International Reports Fourth Quarter and Full-Year 2013 Financial Results
Page 4 of 9



Fourth Quarter and Full-Year Reconciliation of
Core Earnings Per Share to Basic Earnings Per Share


 
Quarters ended
December 31,
 
 
 
Years ended
December 31,
 
 
 
2013
 
2012
 
change
 
2013
 
2012
 
change
Earnings (loss) per share attributable to Edison International
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
SCE
$
0.79

 
$
2.56

 
$
(1.77
)
 
$
2.76

 
$
4.81

 
$
(2.05
)
Edison International Parent and Other
0.02

 
(0.14
)
 
0.16

 
(0.06
)
 
(0.20
)
 
0.14

Discontinued operations
0.11

 
(4.07
)
 
4.18

 
0.11

 
(5.17
)
 
5.28

Edison International
0.92

 
(1.65
)
 
2.57

 
2.81

 
(0.56
)
 
3.37

Less: Non-core items
 
 
 
 
 
 
 
 
 
 
 
SCE:
 
 
 
 
 
 
 
 
 
 
 
Asset impairment
—

 
—

 
—

 
(1.12
)
 
—

 
(1.12
)
2012 General Rate Case – repair deductions (2009 – 2011)
—

 
0.71

 
(0.71
)
 
—

 
0.71

 
(0.71
)
Edison International Parent and Other:
 
 
 
 
 
 
 
 
 
 
 
Consolidated state deferred tax impacts related to EME
—

 
(0.08
)
 
0.08

 
—

 
(0.11
)
 
0.11

Gain on sale of Beaver Valley lease interest
—

 
—

 
—

 
0.02

 
0.09

 
(0.07
)
Discontinued operations
0.11

 
(4.07
)
 
4.18

 
0.11

 
(5.17
)
 
5.28

Total non-core items
0.11

 
(3.44
)
 
3.55

 
(0.99
)
 
(4.48
)
 
3.49

Core earnings (losses)
 
 
 
 
 
 
 
 
 
 
 
SCE
0.79

 
1.85

 
(1.06
)
 
3.88

 
4.10

 
(0.22
)
Edison International Parent and Other
0.02

 
(0.06
)
 
0.08

 
(0.08
)
 
(0.18
)
 
0.10

Edison International
$
0.81

 
$
1.79

 
$
(0.98
)
 
$
3.80

 
$
3.92

 
$
(0.12
)

Note: Diluted earnings were $0.92 and $2.78 per share for the quarter and year ended December 31, 2013, respectively. Diluted losses were $1.64 and $0.56 per share for the quarter and year ended December 31, 2012, respectively.


Edison International Reports Fourth Quarter and Full-Year 2013 Financial Results
Page 5 of 9



Fourth Quarter and Full-Year Reconciliation of
Core Earnings to Basic Earnings (in millions)


 
Quarters ended
December 31,
 
 
 
Years ended
December 31,
 
 
 
2013
 
2012
 
change
 
2013
 
2012
 
change
Net income (loss) attributable to Edison International
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
SCE
$
258

 
$
833

 
$
(575
)
 
$
900

 
$
1,569

 
$
(669
)
Edison International Parent and Other
6

 
(46
)
 
52

 
(21
)
 
(66
)
 
45

Discontinued operations
37

 
(1,326
)
 
1,363

 
36

 
(1,686
)
 
1,722

Edison International
301

 
(539
)
 
840

 
915

 
(183
)
 
1,098

Less: Non-core items
 
 
 
 
 
 
 
 
 
 
 
SCE:
 
 
 
 
 
 
 
 
 
 
 
Asset impairment
—

 
—

 
—

 
(365
)
 
—

 
(365
)
2012 General Rate Case – repair deductions (2009 – 2011)
—

 
231

 
(231
)
 
—

 
231

 
(231
)
Edison International Parent and Other:
 
 
 
 
 
 
 
 
 
 
 
Consolidated state deferred tax impacts related to EME
—

 
(26
)
 
26

 
—

 
(37
)
 
37

Gain on sale of Beaver Valley lease interest
—

 
—

 
—

 
7

 
31

 
(24
)
Discontinued operations
37

 
(1,326
)
 
1,363

 
36

 
(1,686
)
 
1,722

Total non-core items
37

 
(1,121
)
 
1,158

 
(322
)
 
(1,461
)
 
1,139

Core earnings (losses)
 
 
 
 
 
 
 
 
 
 
 
SCE
258

 
602

 
(344
)
 
1,265

 
1,338

 
(73
)
Edison International Parent and Other
6

 
(20
)
 
26

 
(28
)
 
(60
)
 
32

Edison International
$
264

 
$
582

 
$
(318
)
 
$
1,237

 
$
1,278

 
$
(41
)



Edison International Reports Fourth Quarter and Full-Year 2013 Financial Results
Page 6 of 9



Consolidated Statements of Income
Edison International
 
 
 
 
 
 
Quarters ended
December 31,
Years ended
December 31,
(in millions, except per-share amounts)
2013
2012
2013
2012
Total operating revenue
$
2,943

$
3,060

$
12,581

$
11,862

Fuel
75

88

324

308

Purchased power
998

782

4,567

3,831

Operation and maintenance
971

1,013

3,782

3,904

Depreciation, decommissioning and amortization
398

375

1,622

1,562

Asset impairments, disallowances and other
(4
)
37

571

(28
)
Total operating expenses
2,438

2,295

10,866

9,577

Operating income
505

765

1,715

2,285

Interest and other income
33

39

124

149

Interest expense
(143
)
(131
)
(544
)
(521
)
Other expenses
(36
)
(15
)
(74
)
(52
)
Income from continuing operations before income taxes
359

658

1,221

1,861

Income tax expense
70

(154
)
242

267

Income from continuing operations
289

812

979

1,594

Income (loss) from discontinued operations, net of tax
37

(1,326
)
36

(1,686
)
Net income (loss)
326

(514
)
1,015

(92
)
Dividends on preferred and preference stock of utility
25

25

100

91

Net income (loss) attributable to Edison International common shareholders
$
301

$
(539
)
$
915

$
(183
)
Amounts attributable to Edison International common shareholders:
 
 
 
 
Income from continuing operations, net of tax
$
264

$
787

$
879

$
1,503

Income (loss) from discontinued operations, net of tax
37

(1,326
)
36

(1,686
)
Net income (loss) attributable to Edison International common shareholders
$
301

$
(539
)
$
915

$
(183
)
Basic earnings (loss) per common share attributable to Edison International common shareholders:
 
 
 
 
Weighted-average shares of common stock outstanding
326

326

326

326

Continuing operations
$
0.81

$
2.42

$
2.70

$
4.61

Discontinued operations
0.11

(4.07
)
0.11

(5.17
)
Total
0.92

(1.65
)
2.81

$
(0.56
)
Diluted earnings (loss) per common share attributable to Edison International common shareholders:
 
 
 
 
Weighted-average shares of common stock outstanding, including effect of dilutive securities
328

329

329

330

Continuing operations
$
0.81

$
2.39

$
2.67

$
4.55

Discontinued operations
0.11

(40.3
)
0.11

(5.11
)
Total
$
0.92

$
(37.91
)
$
2.78

$
(0.56
)
Dividends declared per common share
$
0.3350

$
0.3375

$
1.3675

$
1.3125




Edison International Reports Fourth Quarter and Full-Year 2013 Financial Results
Page 7 of 9


Consolidated Balance Sheets
 
Edison International
 
 
 
 
 
 
 
 
December 31,
(in millions)
 
2013
 
2012
ASSETS
 
 
 
 
Cash and cash equivalents
 
$
146

 
$
170

Receivables, less allowances of $66 and $75 for uncollectible accounts at respective dates
 
838

 
762

Accrued unbilled revenue
 
596

 
550

Inventory
 
256

 
340

Derivative assets
 
122

 
129

Regulatory assets
 
538

 
572

Deferred income taxes
 
421

 
—

Other current assets
 
395

 
149

Total current assets
 
3,312

 
2,672

Nuclear decommissioning trusts
 
4,494

 
4,048

Other investments
 
207

 
186

Total investments
 
4,701

 
4,234

Utility property, plant and equipment, less accumulated depreciation of $7,493 and $7,424 at respective dates
 
30,379

 
30,200

Nonutility property, plant and equipment, less accumulated depreciation of $74 and $123 at respective dates
 
76

 
73

Total property, plant and equipment
 
30,455

 
30,273

Derivative assets
 
251

 
85

Regulatory assets
 
7,241

 
6,422

Other long-term assets
 
686

 
708

Total long-term assets
 
8,178

 
7,215

 
 
 
 
 
Total assets
 
$
46,646

 
$
44,394




Edison International Reports Fourth Quarter and Full-Year 2013 Financial Results
Page 8 of 9


Consolidated Balance Sheets
 
Edison International
 
 
 
 
 
 
 
 
December 31,
(in millions, except share amounts)
 
2013
 
2012
LIABILITIES AND EQUITY
 
 
 
 
Short-term debt
 
$
209

 
$
175

Current portion of long-term debt
 
601

 
—

Accounts payable
 
1,407

 
1,423

Accrued taxes
 
358

 
61

Customer deposits
 
201

 
193

Derivative liabilities
 
152

 
126

Regulatory liabilities
 
767

 
536

Deferred income taxes
 
—

 
64

Other current liabilities
 
1,186

 
1,166

Total current liabilities
 
4,881

 
3,744

Long-term debt
 
9,825

 
9,231

Deferred income taxes and credits
 
7,346

 
6,231

Derivative liabilities
 
1,042

 
939

Pensions and benefits
 
1,378

 
2,614

Asset retirement obligations
 
3,418

 
2,782

Regulatory liabilities
 
4,995

 
5,214

Other deferred credits and other long-term liabilities
 
2,070

 
2,448

Total deferred credits and other liabilities
 
20,249

 
20,228

Total liabilities
 
34,955

 
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)
 
2,403

 
2,373

Accumulated other comprehensive loss
 
(13
)
 
(87
)
Retained earnings
 
7,548

 
7,146

Total Edison International's common shareholders' equity
 
9,938

 
9,432

Preferred and preference stock of utility
 
1,753

 
1,759

Total noncontrolling interests
 
1,753

 
1,759

Total equity
 
11,691

 
11,191

 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
 
$
46,646

 
$
44,394




Edison International Reports Fourth Quarter and Full-Year 2013 Financial Results
Page 9 of 9


Consolidated Statements of Cash Flows
 
Edison International
 
 
 
Years ended December 31,
(in millions)
 
2013
 
2012
 
2011
Cash flows from operating activities:
 
 
 
 
 
 
Net income (loss)
 
$
1,015

 
$
(92
)
 
$
22

Less: Income (loss) from discontinued operations
 
36

 
(1,686
)
 
(1,078
)
Income from continuing operations
 
979

 
1,594

 
1,100

Adjustments to reconcile to net cash provided by operating activities:
 
 
 
 
 
 
Depreciation, decommissioning and amortization
 
1,622

 
1,562

 
1,427

Regulatory impacts of net nuclear decommissioning trust earnings
 
312

 
192

 
146

Asset impairment
 
575

 
—

 
—

Deferred income taxes and investment tax credits
 
345

 
141

 
708

Other
 
88

 
138

 
175

Changes in operating assets and liabilities:
 
 
 
 
 
 
Receivables
 
(56
)
 
(13
)
 
(46
)
Inventory
 
80

 
10

 
(18
)
Accounts payable
 
45

 
14

 
45

Other current assets and liabilities
 
(247
)
 
303

 
(79
)
Derivative assets and liabilities, net
 
(30
)
 
262

 
382

Regulatory assets and liabilities, net
 
(322
)
 
(314
)
 
(1,080
)
Other noncurrent assets and liabilities
 
(188
)
 
82

 
521

Operating cash flows from continuing operations
 
3,203

 
3,971

 
3,281

Operating cash flows from discontinued operations, net
 
—

 
(637
)
 
625

Net cash provided by operating activities
 
3,203

 
3,334

 
3,906

Cash flows from financing activities:
 
 
 
 
 
 
Long-term debt issued, net of premium, discount, and issuance costs of $18, $4 and $9 at respective periods
 
1,973

 
391

 
887

Long-term debt matured or repurchased
 
(1,017
)
 
(6
)
 
(100
)
Bonds remarketed, net
 
195

 
—

 
—

Preference stock issued, net
 
387

 
804

 
123

Preference stock redeemed
 
(400
)
 
(75
)
 
—

Short-term debt financing, net
 
32

 
(264
)
 
410

Settlements of stock-based compensation, net
 
(48
)
 
(68
)
 
(15
)
Dividends to noncontrolling interests
 
(101
)
 
(82
)
 
(59
)
Dividends paid
 
(440
)
 
(424
)
 
(417
)
Financing cash flows from continuing operations
 
581

 
276

 
829

Financing cash flows from discontinued operations, net
 
—

 
374

 
278

Net cash provided by financing activities
 
581

 
650

 
1,107

Cash flows from investing activities:
 
 
 
 
 
 
Capital expenditures
 
(3,599
)
 
(4,149
)
 
(4,122
)
Proceeds from sale of nuclear decommissioning trust investments
 
5,617

 
2,122

 
2,773

Purchases of nuclear decommissioning trust investments and other
 
(5,951
)
 
(2,337
)
 
(2,940
)
Proceeds from sale of assets
 
181

 
114

 
—

Other
 
(56
)
 
4

 
34

Investing cash flows from continuing operations
 
(3,808
)
 
(4,246
)
 
(4,255
)
Investing cash flows from discontinued operations, net
 
—

 
(1,037
)
 
(678
)
Net cash used by investing activities
 
(3,808
)
 
(5,283
)
 
(4,933
)
Net increase (decrease) in cash and cash equivalents
 
(24
)
 
(1,299
)
 
80

Cash and cash equivalents at beginning of year
 
170

 
1,469

 
1,389

Cash and cash equivalents at end of year
 
146

 
170

 
1,469

Cash and cash equivalents from discontinued operations
 
—

 
—

 
1,300

Cash and cash equivalents from continuing operations
 
$
146

 
$
170

 
$
169