EX-99.1 2 dex991.htm PRESS RELEASE DATED AUGUST 4, 2011 Press Release dated August 4, 2011

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 Second Quarter 2011 Financial Results

ROSEMEAD, Calif., August 4, 2011 – Edison International (NYSE: EIX) today reported second quarter 2011 basic earnings of $0.54 per share, compared to $1.05 per share in the same quarter last year. The second quarter of 2010 included a gain of $0.43 per share related to a tax settlement. The impacts of the settlement, including state taxes and related lease terminations, were non-core items in the company’s quarterly and year-to-date results.

Excluding non-core items and discontinued operations, core earnings in the second quarter of 2011 were $0.54 per share compared to $0.62 per share in the second quarter of 2010. Core earnings declined primarily due to lower income at Southern California Edison (SCE) as rate base growth was more than offset by tax benefits recorded in the second quarter of 2010 from a change in tax accounting.

“Our second quarter and year-to-date earnings performance is fully consistent with our 2011 earnings guidance,” said Ted Craver, chairman and chief executive officer of Edison International, “and we now see full-year 2011 earnings at the high end of our guidance range.”

Second Quarter Earnings Detail

SCE’s second quarter 2011 basic earnings were $0.65 per share compared to $0.92 per share in the second quarter last year. Second quarter 2011 core earnings were $0.65 per share compared to $0.75 per share in the prior-year period. Core earnings decreased as rate base growth was more than offset by a $0.12 per share benefit in the second quarter of 2010 from a change in tax accounting for asset removal costs primarily related to SCE’s infrastructure replacement program.

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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 Per Share Guidance to Basic Earnings Per Share Guidance.

Edison International Reports Second Quarter 2011 Financial Results

Page 2 of 13

 

EMG’s second quarter 2011 basic losses were $(0.09) per share compared to basic earnings of $0.08 per share in the second quarter of 2010. Core losses were $(0.09) per share compared to core losses of $(0.10) per share in the second quarter of 2010. Comparisons reflect higher trading revenue and a project distribution, which were largely offset by lower realized energy prices and higher plant maintenance and outage costs.

Edison International parent company and other second quarter 2011 basic losses were $(0.02) per share compared to basic earnings of $0.05 per share in the prior-year period. Core losses were $(0.02) per share in the second quarter of 2011 compared to core losses of $(0.03) per share in the second quarter of 2010. Non-core items in the second quarter of 2010 included tax settlement impacts at Edison International as well as SCE and EMG.

Year-to-Date Earnings Summary

Edison International reported basic earnings of $1.15 per share for the six-month period ending June 30, 2011, compared to $1.77 per share for the same period last year. Core earnings for the first six months of 2011 were $1.16 per share compared to $1.44 per share for the first half of 2010.

Year-to-Date Earnings Detail

SCE’s basic earnings were $1.33 per share compared to $1.43 per share for the same period last year. Core earnings were $1.33 per share compared to $1.38 per share in the same period of 2010. Core earnings decreased as rate base growth was more than offset by higher income tax expense reflecting the 2010 change in tax accounting.

EMG’s basic losses were $(0.16) per share compared to basic earnings of $0.32 per share in the prior-year period. Core losses were $(0.15) per share compared to core earnings of $0.12 per share in the first half of 2010. The decrease in core earnings reflects Homer City outages, lower realized energy prices, and higher plant maintenance costs.

Edison International parent company and other basic losses in the first half of 2011 were $(0.02) per share compared to basic earnings of $0.02 per share in the first half of 2010. Core losses were $(0.02) per share in the 2011 period compared to core losses of $(0.06) in the 2010 period. Non-core items in the 2010 period included tax settlement impacts at Edison International as well as SCE and EMG.

2011 Earnings Guidance

Edison International reaffirmed its 2011 core earnings guidance of $2.60 to $2.90 per share and its basic earnings per share guidance to reflect year-to-date non-core items. See the risk disclosure statement on page 4 and the financial teleconference presentation accompanying the company’s earnings conference call for further information.

 

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Edison International Reports Second Quarter 2011 Financial Results

Page 3 of 13

 

Reconciliation of Core Earnings Guidance to

Basic Earnings Guidance1

 

Core Earnings Per Share1   

May 2, 2011

2011 Earnings Guidance

        

August 4, 2011

2011 Earnings Guidance

      

EIX core earnings

    $ 2.60 – $ 2.90      $ 2.60 – $ 2.90   

Non-Core Items2

    (0.01)        (0.01)     

EIX basic earnings per share

    $ 2.59 – $ 2.89      $ 2.59 - $ 2.89   
 
Midpoint of 2011 core guidance by business segment:           

SCE

    $ 3.08         $ 3.08      

EMG

    (0.19)      (0.19)   

EIX parent company and other

    (0.14)        (0.14)     

Total

    $ 2.75         $ 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.
2 Represents results of discontinued operations for the first three months and six months of 2011, respectively.

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.

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Edison International Reports Second Quarter 2011 Financial Results

Page 4 of 13

 

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 (core EPS) by principal operating subsidiary internally for financial planning and for analysis of performance. We also use core earnings and core 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. Financial measures referred to net income, basic EPS, core earnings, or core EPS also applies to the description of losses or losses per share.

Core earnings is a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings and core EPS are defined as GAAP 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. 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.

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” in Edison International’s 2010 Form 10-K, most recent Form 10-Q, and other reports filed with the Securities and Exchange Commission which are available at: www.edison.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:    Thursday, August 4, 2011, 8:00 a.m. (Pacific Daylight Time)
Telephone Numbers:    1-800-369-2198 (US) and 1-773-756-4618 (Int’l) - Passcode: Edison
Telephone Replay:    1-800-873-1933 (US) and 1-203-369-3374 (Int’l) - Passcode: 468529
Webcast:    www.edison.com

Edison International Reports Second Quarter 2011 Financial Results

Page 5 of 13

 

Summary Financial Schedules

Second Quarter Basic Earnings Per Share

 

     Quarter Ended June 30,             
Per Share (Unaudited)    2011    2010    Change

SCE

    $ 0.65    $ 0.92    $ (0.27)

EMG

    (0.09)    0.08    (0.17)

EIX parent company and other

    (0.02)    0.05    (0.07)

EIX earnings from continuing operations

    0.54    1.05    (0.51)

EIX loss from discontinued operations

    —    —    —  

EIX basic earnings1

    $ 0.54    $ 1.05    $ (0.51)
 

EIX diluted earnings

    $ 0.54    $ 1.05    $ (0.51)
 
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 June 30, 2011 and $(0.01) per share for the quarter ended June 30, 2010.

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

 

                    Quarter Ended June 30,             
Per Share (Unaudited)          2011    2010    Change

Core Earnings1

                  

SCE

             $ 0.65    $ 0.75    $ (0.10)

EMG

             (0.09)    (0.10)    0.01

EIX parent company and other

                   (0.02)    (0.03)    0.01

EIX core earnings

         0.54    0.62    (0.08)

Non-core items

                  

Overall tax settlement

             —    0.43    (0.43)
   2011    2010            

SCE

    $ —        $ 0.17            

EMG

    —    0.18            

EIX parent company and other

    —    0.08            

EMG – discontinued operations

                   —    —    —

Total non-core items

         —    0.43    (0.43)

EIX basic earnings1

       $ 0.54    $ 1.05    $ (0.51)
 
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 the quarter ended June 30, 2011 and $(0.01) per share for the quarter ended June 30, 2010.

Edison International Reports Second Quarter 2011 Financial Results

Page 6 of 13

 

Second Quarter GAAP Earnings (Loss)

 

                 Quarter Ended June 30,             
(In Millions) (Unaudited)                2011    2010    Change
                            

SCE

          $ 211    $ 301    $ (90)

EMG

          (30)    26    (56)

EIX parent company and other

                (4)    16    (20)

EIX earnings from continuing operations

    177    343    (166)

EIX earnings (loss) from discontinued operations

    (1)    1    (2)

EIX GAAP earnings

          $ 176    $ 344    $ (168)
 

Second Quarter Reconciliation of Core Earnings to GAAP Earnings (Loss)

 

                 Quarter Ended June 30,             
(In Millions) (Unaudited)         2011    2010    Change

Core Earnings1

               

SCE

          $ 211    $ 248    $ (37)

EMG

          (30)    (32)    2

EIX parent company and other

                (4)    (11)    7

EIX core earnings

        177    205    (28)

Non-core items

               

Overall tax settlement

          —    138    (138)
  2011   2010           

SCE

   $ —         $ 53           

EMG

   —   58           

EIX parent company and other

   —   27           

EMG – discontinued operations

                (1)    1    (2)

Total non-core items

        (1)    139    (140)

EIX GAAP earnings

      $ 176    $ 344    $ (168)
 
1 See Use of Non-GAAP Financial Measures on page 4.

Edison International Reports Second Quarter 2011 Financial Results

Page 7 of 13

 

Year-to-Date Basic Earnings Per Share

 

          Year-to-Date June 30,             
Per Share (Unaudited)          2011    2010    Change

SCE

    $ 1.33    $ 1.43    $ (0.10)

EMG

    (0.15)    0.30    (0.45)

EIX parent company and other

    (0.02)    0.02    (0.04)

EIX earnings from continuing operations

    1.16    1.75    (0.59)

EIX earnings (loss) from discontinued operations

    (0.01)    0.02    (0.03)

EIX basic earnings1

    $ 1.15    $ 1.77    $ (0.62)
                               

EIX diluted earnings

    $ 1.15    $ 1.77    $ (0.62)
                               

1       The impact of participating securities is included in EIX parent company and other and was zero per share for the year-to-date ended June 30, 2011 and $(0.01) per share for the year-to-date ended June 30, 2010.

Year-to-Date Reconciliation of Core Earnings Per Share to Basic Earnings Per Share
                    Year-to-date June 30,             
Per Share (Unaudited)          2011    2010    Change

Core Earnings1

                  

SCE

             $ 1.33    $ 1.38    $ (0.05)

EMG

             (0.15)    0.12    (0.27)

EIX parent company and other

    (0.02)    (0.06)    0.04

EIX core earnings

         1.16    1.44    (0.28)

Non-core items

         

SCE – tax impacts of health care legislation

    —    (0.12)    0.12

Overall tax settlement

    —    0.43    (0.43)
   2011    2010            

SCE

    $ —        $ 0.17            

EMG

    —    0.18            

EIX parent company and other

    —    0.08            

EMG – discontinued operations

    (0.01)    0.02    (0.03)

Total non-core items

         (0.01)    0.33    (0.34)

EIX basic earnings1

       $ 1.15    $ 1.77    $ (0.62)
                               
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 zero per share for the year-to-date ended June 30, 2011 and $(0.01) per share for the year-to-date ended June 30, 2010.

Edison International Reports Second Quarter 2011 Financial Results

Page 8 of 13

 

Year-to-Date GAAP Earnings

 

                    Year-to-Date June 30,             
(In Millions) (Unaudited)                      2011    2010    Change

SCE

             $ 433    $ 465    $ (32)

EMG

             (48)    96    (144)

EIX parent company and other

    (6)    11    (17)

EIX earnings from continuing operations

    379    572    (193)

EIX earnings (loss) from discontinued operations

    (3)    8    (11)

EIX GAAP earnings

             $ 376    $ 580    $ (204)
                               
Year-to-Date Reconciliation of Core Earnings to GAAP Earnings
                    Year-to-Date June 30,             
(In Millions) (Unaudited)                      2011    2010    Change

Core Earnings1

                  

SCE

             $ 433    $ 451    $ (18)

EMG

             (48)    38    (86)

EIX parent company and other

                   (6)    (16)    10

EIX core earnings

                   379    473    (94)

Non-core items

                  

SCE – tax impacts of health care legislation

       —    (39)    39

Overall tax settlement

             —    138    (138)
   2011    2010            

SCE

    $ —          $ 53            

EMG

    —    58            

EIX parent company and other

    —    27            

EMG – discontinued operations

                   (3)    8    (11)

Total non-core items

                   (3)    107    (110)

EIX GAAP earnings

             $ 376    $ 580    $ (204)
                               
1 See Use of Non-GAAP Financial Measures on page 4.

Edison International Reports Second Quarter 2011 Financial Results

Page 9 of 13

 

Edison International

Consolidated Statements of Income

 

   

Three months ended

June 30,

     

Six months ended

June 30,

  
(in millions, except per-share amounts, unaudited)   2011      2010      2011      2010  

Electric utility

   $    2,445       $    2,246       $    4,676       $    4,405   

Competitive power generation

     538         495         1,090         1,147   

Total operating revenue

     2,983         2,741         5,766         5,552   

Fuel

     256         254         515         549   

Purchased power

     649         612         1,158         1,220   

Operations and maintenance

     1,263         1,144         2,412         2,183   

Depreciation, decommissioning and amortization

     435         380         852         749   

Total operating expenses

     2,603         2,390         4,937         4,701   

Operating income

     380         351         829         851   

Interest and dividend income

     30         4         34         23   

Equity in income from unconsolidated affiliates – net

     18         20         12         39   

Other income

     42         36         83         70   

Interest expense

     (203)         (175)         (398)         (343)   

Other expenses

     (13)         (16)         (25)         (28)   

Income from continuing operations before income taxes

     254         220         535         612   

Income tax expense (benefit)

     62         (136)         127         14   

Income from continuing operations

     192         356         408         598   

Income (loss) from discontinued operations – net of tax

     (1)         1         (3)         8   

Net income

     191         357         405         606   

Dividends on preferred and preference stock of utility

     15         13         29         26   

Net income attributable to Edison International common shareholders

   $ 176       $ 344       $ 376       $ 580   

Amounts attributable to Edison International common shareholders:

           

Income from continuing operations, net of tax

   $ 177       $ 343       $ 379       $ 572   

Income (loss) from discontinued operations, net of tax

     (1)         1         (3)         8   

Net income attributable to Edison International common shareholders

   $ 176       $ 344       $ 376       $ 580   

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

           

Weighted-average shares of common stock outstanding

     326         326         326         326   

Continuing operations

   $ 0.54       $ 1.05       $ 1.16       $ 1.75   

Discontinued operations

     —         —         (0.01)         0.02   

Total

   $ 0.54       $ 1.05       $ 1.15       $ 1.77   

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         328         327   

Continuing operations

   $ 0.54       $ 1.05       $ 1.16       $ 1.75   

Discontinued operations

     —         —         (0.01)         0.02   

Total

   $ 0.54       $ 1.05       $ 1.15       $ 1.77   

Dividends declared per common share

   $ 0.320       $ 0.315       $ 0.640       $ 0.630   

Edison International Reports Second Quarter 2011 Financial Results

Page 10 of 13

 

Edison International

Consolidated Balance Sheets

 

(in millions, unaudited)  

June 30,

2011

    

December 31,

2010

  

ASSETS

    

Cash and cash equivalents

   $           945          $         1,389   

Receivables, less allowances of $87 and $85 for uncollectible accounts at respective dates

     1,018        931   

Accrued unbilled revenue

     619        442   

Inventory

     589        568   

Prepaid taxes

     356        390   

Derivative assets

     117        133   

Restricted cash

     11        2   

Margin and collateral deposits

     65        65   

Regulatory assets

     469        378   

Other current assets

     148        124   

Total current assets

     4,337        4,422   

Nuclear decommissioning trusts

     3,657        3,480   

Investments in unconsolidated affiliates

     552        559   

Other investments

     231        223   

Total investments

     4,440        4,262   

Utility property, plant and equipment, less accumulated depreciation of $6,486 and $6,319 at respective dates

     25,847        24,778   

Competitive power generation and other property, plant and equipment, less accumulated depreciation of $2,009 and $1,865 at respective dates

     5,613        5,406   

Total property, plant and equipment

     31,460        30,184   

Derivative assets

     242        437   

Restricted deposits

     27        47   

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

     1,288        1,187   

Regulatory assets

     4,690        4,347   

Other long-term assets

     591        644   

Total long-term assets

     6,838        6,662   

Total assets

   $ 47,075          $ 45,530   

Edison International Reports Second Quarter 2011 Financial Results

Page 11 of 13

 

Edison International

Consolidated Balance Sheets

 

(in millions, except share amounts, unaudited)    June 30,
2011		      December 31,
2010		  

LIABILITIES AND EQUITY

      

Short-term debt

    $             388       $             115   

Current portion of long-term debt

      53         48   

Accounts payable

      1,110         1,362   

Accrued taxes

      33         52   

Accrued interest

      225         205   

Customer deposits

      208         217   

Derivative liabilities

      238         217   

Regulatory liabilities

      820         738   

Other current liabilities

      807         998   

Total current liabilities

      3,882         3,952   

Long-term debt

      12,956         12,371   

Deferred income taxes

      5,819         5,625   

Deferred investment tax credits

      132         122   

Customer advances

      121         112   

Derivative liabilities

      580         468   

Pensions and benefits

      2,306         2,260   

Asset retirement obligations

      2,616         2,561   

Regulatory liabilities

      4,759         4,524   

Other deferred credits and other long-term liabilities

      2,147         2,041   

Total deferred credits and other liabilities

      18,480         17,713   

Total liabilities

      35,318         34,036   

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

      2,347         2,331   

Accumulated other comprehensive loss

      (97)         (76)   

Retained earnings

      8,476         8,328   

Total Edison International’s common shareholders’ equity

      10,726         10,583   

Preferred and preference stock of utility

      1,029         907   

Other noncontrolling interests

      2         4   

Total noncontrolling interests

      1,031         911   

Total equity

      11,757         11,494   

Total liabilities and equity

    $ 47,075       $ 45,530   

Edison International Reports Second Quarter 2011 Financial Results

Page 12 of 13

 

Edison International

Consolidated Statements of Cash Flows

 

     Six months ended
June 30,		  
(in millions, unaudited)    2011     2010  

Cash flows from operating activities:

     

Net income

      $              405        $              606   

Less: Income (loss) from discontinued operations

      (3)        8   

Income from continuing operations

      408        598   

Adjustments to reconcile to net cash provided by operating activities:

     

Depreciation, decommissioning and amortization

      852        749   

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

      75        74   

Other amortization

      75        56   

Lease terminations and other

      7        2   

Stock-based compensation

      15        14   

Equity in income from unconsolidated affiliates – net

      (12)        (39)   

Distributions from unconsolidated entities

      15        39   

Deferred income taxes and investment tax credits

      223        247   

Proceeds from U.S. treasury grants

      —        92   

Income from leveraged leases

      (3)        (2)   

Changes in operating assets and liabilities:

     

Receivables

      64        13   

Inventory

      (21)        (36)   

Margin and collateral deposits – net of collateral received

      1        12   

Prepaid taxes

      34        (167)   

Other current assets

      (189)        (136)   

Rent payments in excess of levelized rent expense

      (101)        (111)   

Accounts payable

      66        (114)   

Accrued taxes

      (19)        (69)   

Other current liabilities

      (212)        (164)   

Derivative assets and liabilities – net

      303        806   

Regulatory assets and liabilities – net

      (260)        (720)   

Other assets

      (38)        (38)   

Other liabilities

      (58)        (152)   

Operating cash flows from discontinued operations

      (3)        8   

Net cash provided by operating activities

      1,222        962   

Cash flows from financing activities:

     

Long-term debt issued

      592        645   

Long-term debt issuance costs

      (5)        (19)   

Long-term debt repaid

      (30)        (366)   

Bonds purchased

      (56)        —   

Preference stock issued – net

      123        —   

Short-term debt financing – net

      292        410   

Settlements of stock-based compensation – net

      (13)        (2)   

Dividends and distributions to noncontrolling interests

      (28)        (25)   

Dividends paid

      (209)        (205)   

Net cash provided by financing activities

      $              666        $              438   

 

Edison International Reports Second Quarter 2011 Financial Results

Page 13 of 13

 

Edison International

Consolidated Statements of Cash Flows

 

     Six months ended
June 30,		  
(in millions, unaudited)    2011      2010  

Cash flows from investing activities:

      

Capital expenditures

    $     (2,256)       $     (2,070)   

Purchase of interest in acquired companies

      —         (4)   

Proceeds from sale of nuclear decommissioning trust investments

      1,146         600   

Purchases of nuclear decommissioning trust investments and other

      (1,230)         (697)   

Proceeds from partnerships and unconsolidated subsidiaries, net of investment

      5         44   

Investments in other assets

      3         13   

Effect of consolidation and deconsolidation of variable interest entities

      —         (91)   

Net cash used by investing activities

      (2,332)         (2,205)   

Net decrease in cash and cash equivalents

      (444)         (805)   

Cash and cash equivalents, beginning of period

      1,389         1,673   

Cash and cash equivalents, end of period

    $ 945       $ 868