Edison International (NYSE: EIX) today reported second quarter
2015 net income on a GAAP basis of $379 million, or $1.16 per
share, compared to $536 million, or $1.64 per share, in the second
quarter of 2014. On an adjusted basis, Edison International’s
second quarter 2015 core earnings were $378 million, or $1.16 per
share, compared to $352 million, or $1.08 per share, in the second
quarter of 2014.
“SCE remains focused on improving its safety and operational
performance and continues to invest at high levels to support
system reliability, public safety and California’s renewables
mandates,” said Ted Craver, chairman and chief executive officer of
Edison International. “Earnings improved in the second quarter
primarily from federal tax benefits, but until SCE receives a
decision in its 2015 General Rate Case, comparative results are not
meaningful.”
Southern California Edison’s (SCE) second quarter 2015 core
earnings increased by $22 million, or $0.07 per share, from the
second quarter 2014 primarily due to a $100 million, or $0.31 per
share, tax benefit from revisions to liabilities for uncertain tax
positions. In addition, earnings benefited from higher Federal
Energy Regulatory Commission (FERC)-related revenue from rate base
growth and earnings on funds used during construction. These were
partially offset by lower other income and other tax items. SCE
continues to recognize revenue from CPUC activities in 2015 largely
based on 2014 authorized base revenue requirements included in
customer rates. The revenue requirement ultimately adopted by the
CPUC will be retroactive to January 1, 2015.
During the second quarter of 2014, SCE recorded $29 million, or
$0.09 per share, of income tax benefits from revisions to
liabilities for uncertain tax positions and $14 million
($9 million after-tax), or $0.03 per share, of benefits
related to generator settlements.
Edison International Parent and Other’s second quarter 2015 core
losses decreased by $4 million, or $0.01 per share, compared to
second quarter 2014 core losses primarily due to lower corporate
expenses.
Edison International’s second quarter 2015 core earnings exclude
income of $1 million related to losses allocated to tax equity
investors under the hypothetical liquidation at book value
accounting method. Edison International’s second quarter 2014 core
earnings exclude income of $184 million, or $0.56 per share, from
discontinued operations.
Year-to-Date Earnings
For the six months ended June 30, 2015, Edison International
reported net income on a GAAP basis of $678 million, or $2.08 per
share, compared to $712 million, or $2.18 per share, during the
same period in 2014. On an adjusted basis, Edison International’s
core earnings were $672 million, or $2.06 per share, compared to
$646 million, or $1.98 per share, in the year-to-date period in
2014.
SCE’s core earnings for the six months ended June 30, 2015
increased $23 million, or $0.08 per share, from the same period in
2014, due to higher income tax benefits, FERC-related revenue from
rate base growth and earnings on funds used during construction,
partially offset by lower other income. Edison International Parent
and Other’s year-to-date 2015 core losses were comparable to core
losses in the same period of 2014.
Edison International’s year-to-date 2015 core earnings exclude
income of $6 million, or $0.02 per share, related to losses
allocated to tax equity investors under the hypothetical
liquidation at book value accounting method. Edison International’s
year-to-date 2014 core earnings exclude a charge of $96 million, or
$0.29 per share, related to the SCE San Onofre Settlement Agreement
and $162 million, or $0.49 per share, of income from discontinued
operations.
Edison International uses core earnings, which is a non-GAAP
financial measure that adjusts for significant discrete items that
management does not consider representative of ongoing earnings.
Edison International management believes that core earnings provide
more meaningful comparisons of performance from period to period.
Please see the attached tables for a reconciliation of core
earnings to basic earnings.
2015 Earnings Guidance
Edison International will provide 2015 earnings guidance after a
final decision has been issued by the CPUC on the Southern
California Edison 2015 General Rate Case. See 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.
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 and 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: Thursday, July 30, 2015, 1:30 p.m.
(Pacific Time) Telephone Numbers: 1-800-369-2198 (US) and
1-773-756-4618 (Int’l) - Passcode: Edison Telephone Replay:
1-888-567-0459 (US) and 1-402-998-1812 (Int’l) - Passcode: 85749
Telephone replay available through August 10, 2015 Webcast:
www.edisoninvestor.com
Second Quarter and Year-to-Date
Reconciliation of Core Earnings Per Share to Basic Earnings
Per Share Three months ended June
30, Six months ended June
30, 2015
2014 Change
2015 2014 Change Earnings
(loss) per share attributable to Edison International
Continuing operations SCE $ 1.18 $ 1.11
$ 0.07 $ 2.12 $ 1.75 $ 0.37 Edison International Parent and Other
(0.02 ) (0.03 ) 0.01 (0.04 ) (0.06 ) 0.02 Discontinued operations
— 0.56
(0.56 ) —
0.49
(0.49 ) Edison International 1.16
1.64 (0.48 )
2.08
2.18 (0.10 ) Less: Non-core
items SCE — — — — (0.29 ) 0.29 Edison International Parent and
Other — — — 0.02 — 0.02 Discontinued operations —
0.56
(0.56 ) —
0.49 (0.49 ) Total
non-core items — 0.56
(0.56 )
0.02 0.20
(0.18 ) Core earnings (losses) SCE 1.18 1.11
0.07 2.12 2.04 0.08 Edison International Parent and Other
(0.02 ) (0.03 )
0.01 (0.06 )
(0.06 ) —
Edison International $ 1.16
$ 1.08 $ 0.08
$ 2.06 $ 1.98
$ 0.08
Note: Diluted earnings were $1.15 and $1.63 per share for the
three months ended June 30, 2015 and 2014, respectively, and $2.06
and $2.17 per share for the six months ended June 30, 2015 and
2014, respectively.
Second Quarter and Year-to-Date Reconciliation
of Core Earnings to Basic Earnings (in millions)
Three months ended June 30,
Six months ended June 30, (in
millions) 2015 2014
Change 2015 2014
Change Net income (loss) attributable to Edison
International Continuing operations
SCE $ 384 $ 362 $ 22 $ 689 $ 570 $ 119 Edison
International Parent and Other (5 ) (10 ) 5 (11 ) (20 ) 9
Discontinued operations —
184 (184 )
— 162
(162 ) Edison International 379
536
(157 ) 678
712 (34 ) Less: Non-core
items SCE — — — — (96 ) 96 Edison International Parent and Other 1
— 1 6 — 6 Discontinued operations —
184 (184 )
— 162
(162 ) Total non-core items
1 184
(183 ) 6
66
(60 ) Core earnings (losses) SCE 384 362 22 689 666 23 Edison
International Parent and Other (6 )
(10 ) 4
(17 ) (20 )
3 Edison International $ 378
$ 352 $ 26
$ 672 $ 646
$ 26
Consolidated Statements of Income
Edison International Three months ended June 30,
Six months ended June 30, (in millions, except
per-share amounts, unaudited) 2015
2014 2015
2014
Total operating revenue $ 2,908
$ 3,016 $ 5,420
$ 5,943 Purchased power and fuel 1,078
1,239 1,864 2,382 Operation and
maintenance 743 715 1,380 1,442 Depreciation, decommissioning and
amortization 481 414 945 824 Property and other taxes 82 73 171 158
Impairment and other charges —
— —
231
Total operating expenses
2,384 2,441
4,360 5,037
Operating income 524 575 1,060 906 Interest and other income
43 46 82 69 Interest expense (138 ) (139 ) (281 ) (281 ) Other
expenses (17 ) (16 )
(24 ) (23 )
Income from continuing operations before income taxes 412
466 837 671 Income tax expense 6
84 113
65
Income from continuing
operations 406 382 724 606 Gain from discontinued operations,
net of tax — 184
—
162
Net income 406 566 724 768 Preferred and
preference stock dividend requirements of utility 28 30 56 56 Other
noncontrolling interests (1 ) —
(10 )
—
Net income attributable to Edison International
common shareholders $ 379 $ 536
$ 678 $ 712
Amounts attributable to Edison International common
shareholders: Income from continuing operations, net of tax $
379 $ 352 $ 678 $ 550 Gain from discontinued operations, net of tax
— 184
— 162
Net income attributable to Edison International common
shareholders $ 379 $ 536
$ 678 $ 712
Basic earnings per common share attributable to Edison
International common shareholders: Weighted-average shares of
common stock outstanding 326 326 326 326 Continuing operations $
1.16 $ 1.08 $ 2.08 $ 1.69 Discontinued operations —
0.56
— 0.49
Total $
1.16 $ 1.64
$ 2.08 $ 2.18
Diluted
earnings per common share attributable to Edison International
common shareholders: Weighted-average shares of common stock
outstanding, including effect of dilutive securities 328 329 329
329 Continuing operations $ 1.15 $ 1.07 $ 2.06 $ 1.68 Discontinued
operations — 0.56
—
0.49
Total $ 1.15 $ 1.63
$ 2.06 $
2.17
Dividends declared per common share
$ 0.4175 $ 0.3550
$ 0.8350 $ 0.7100
Consolidated Balance Sheets
Edison International
June 30, December 31, (in millions, unaudited)
2015 2014
ASSETS Cash and cash
equivalents $ 139 $ 132 Receivables, less allowances of $68 for
uncollectible accounts at both dates 768 790 Accrued unbilled
revenue 853 632 Inventory 276 281 Derivative assets 79 102
Regulatory assets 1,066 1,254 Deferred income taxes 288 452 Other
current assets 437 376
Total
current assets 3,906 4,019
Nuclear decommissioning trusts 4,836 4,799 Other investments
210 207
Total investments
5,046 5,006 Utility property, plant and
equipment, less accumulated depreciation and amortization of $8,141
and $8,132 at respective dates 33,594 32,859 Nonutility property,
plant and equipment, less accumulated depreciation of $79 and $76
at respective dates 132 122
Total property, plant and equipment 33,726
32,981 Derivative assets 194 219 Regulatory
assets 8,009 7,612 Other long-term assets 358
349
Total long-term assets 8,561
8,180
Total assets
$ 51,239 $ 50,186
Consolidated Balance Sheets
Edison International June 30,
December 31, (in millions, except share amounts, unaudited)
2015 2014
LIABILITIES AND
EQUITY Short-term debt $ 1,415 $ 1,291 Current portion of
long-term debt 204 504 Accounts payable 1,294 1,580 Accrued taxes
36 81 Customer deposits 234 221 Derivative liabilities 162 196
Regulatory liabilities 454 401 Other current liabilities
1,037 1,205
Total
current liabilities 4,836
5,479
Long-term debt 11,265
10,234 Deferred income taxes and
credits 7,599 7,313 Derivative liabilities 1,155 1,052 Pensions and
benefits 2,176 2,155 Asset retirement obligations 2,825 2,821
Regulatory liabilities 5,813 5,889 Other deferred credits and other
long-term liabilities 2,220
2,255
Total deferred credits and other
liabilities 21,788
21,485
Total liabilities 37,889
37,198 Commitments and contingencies
Redeemable noncontrolling interest 3 6 Common stock, no par
value (800,000,000 shares authorized; 325,811,206 shares issued and
outstanding at respective dates) 2,472 2,445 Accumulated other
comprehensive loss (56 ) (58 ) Retained earnings 8,909
8,573
Total Edison
International's common shareholders' equity 11,325
10,960 Noncontrolling
interests – preferred and preference stock of utility 2,022
2,022
Total equity
13,347 12,982
Total liabilities and equity
$ 51,239 $ 50,186
Consolidated Statements of Cash Flows
Edison International Six months
ended June 30, (in millions, unaudited) 2015
2014
Cash flows from operating
activities: Net income $ 724 $ 768 Less:
Income from discontinued operations —
162 Income from continuing operations 724 606
Adjustments to reconcile to net cash provided by operating
activities: Depreciation, decommissioning and amortization 987 864
Allowance for equity during construction (42 ) (28 ) Impairment and
other charges — 231 Deferred income taxes and investment tax
credits 101 110 Other 11 11 EME settlement payments — (225 )
Changes in operating assets and liabilities: Receivables 32 (185 )
Inventory 5 (21 ) Accounts payable 130 116 Prepaid and accrued
taxes (50 ) 79 Other current assets and liabilities (411 ) (471 )
Derivative assets and liabilities, net 33 64 Regulatory assets and
liabilities, net 241 (317 ) Nuclear decommissioning trusts 41 83
Other noncurrent assets and liabilities (34 )
(309 )
Net cash provided by operating
activities 1,768 608
Cash flows from financing activities: Long-term debt
issued or remarketed, net of discount and issuance costs of $16 and
$4 at respective periods 1,415 396 Long-term debt matured or
repurchased (721 ) (4 ) Preference stock issued, net — 269
Short-term debt financing, net 125 1,043 Cash contribution from
redeemable noncontrolling interest 7 — Dividends to noncontrolling
interests (56 ) (54 ) Dividends paid (272 ) (231 ) Other (25
) (51 )
Net cash provided by
financing activities 473
1,368
Cash flows from investing activities:
Capital expenditures (2,197 ) (1,856 ) Proceeds from sale of
nuclear decommissioning trust investments 7,253 3,750 Purchases of
nuclear decommissioning trust investments (7,301 ) (3,838 ) Other
11 12
Net cash
used in investing activities (2,234 )
(1,932 )
Net increase in cash and cash
equivalents 7 44 Cash and cash equivalents at beginning of
period 132 146
Cash and cash equivalents at end of period
$ 139 $ 190
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150730006347/en/
Edison InternationalMedia relations contact:Charles
Coleman, (626) 302-7982orInvestor relations contact:Scott
Cunningham, (626) 302-2540
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