Edison International Reports First Quarter 2015 Results

ROSEMEAD, Calif.--()--Edison International (NYSE: EIX) today reported first quarter 2015 net income on a GAAP basis of $299 million, or $0.92 per share, compared to $176 million, or $0.54 per share, in the first quarter of 2014. On an adjusted basis, Edison International’s first quarter 2015 and 2014 core earnings were $294 million, or $0.90 per share.

“Management’s Discussion and Analysis of Financial Condition and Results of Operations”

Southern California Edison’s (SCE) first quarter 2015 core earnings were similar to the first quarter of 2014 due to the delay in the California Public Utilities Commission 2015 General Rate Case (GRC) decision. During the first quarter of 2015, SCE recognized revenue from CPUC activities 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. The decrease from the delay in the 2015 GRC decision and lower income tax benefits were offset by higher FERC-related revenue from rate base growth and higher earnings on funds used during construction. Edison International Parent and Other’s first quarter 2015 core losses were comparable to first quarter 2014 core losses.

Edison International's first quarter 2015 core earnings exclude income of $5 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 first quarter 2014 core earnings exclude a $96 million charge, or $0.29 per share, related to the San Onofre OII Settlement Agreement, and losses of $22 million, or $0.07 per share, from discontinued operations.

"Until SCE receives a decision in its 2015 General Rate Case, comparative results are not meaningful," said Ted Craver, chairman and chief executive officer of Edison International. "However, we remain focused on improving our safety and operational performance while executing on our capital plans to enhance reliability and plan and build the next generation electric grid."

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 GRC. 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:     Tuesday, April 28, 2015, 1:30 p.m. (Pacific Time)

Please note new start time beginning this quarter

Telephone Numbers: 1-800-369-2198 (US) and 1-773-756-4618 (Int'l) - Passcode: Edison
Telephone Replay: 1-888-566-0509 (US) and 1-203-369-3613 (Int’l) - Passcode: 85749
Telephone replay available through May 7, 2015
Webcast:

www.edisoninvestor.com

 
       

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

 
Three months ended March 31,
      2015     2014     Change
Earnings (loss) per share attributable to Edison International    
Continuing operations
SCE $ 0.93 $ 0.64 $ 0.29
Edison International Parent and Other (0.01 ) (0.03 ) 0.02
Discontinued operations       (0.07 )     0.07
Edison International 0.92       0.54       0.38
Less: Non-core items
SCE (0.29 ) 0.29
Edison International Parent and Other 0.02 0.02
Discontinued operations       (0.07 )     0.07
Total non-core items 0.02       (0.36 )     0.38
Core earnings (losses)
SCE 0.93 0.93
Edison International Parent and Other (0.03 )     (0.03 )    
Edison International     $ 0.90       $ 0.90       $

Note: Diluted earnings were $0.91 and $0.54 per share for the three months ended March 31, 2015 and 2014, respectively.

 
 
       

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

 
Three months ended March 31,
(in millions)     2015     2014     Change
Net income (loss) attributable to Edison International    
Continuing operations
SCE $ 305 $ 208 $ 97
Edison International Parent and Other (6 ) (10 ) 4
Discontinued operations       (22 )     22  
Edison International 299       176       123  
Less: Non-core items
SCE (96 ) 96
Edison International Parent and Other 5 5
Discontinued operations       (22 )     22  
Total non-core items 5       (118 )     123  
Core earnings (losses)
SCE 305 304 1
Edison International Parent and Other (11 )     (10 )     (1 )
Edison International     $ 294       $ 294       $  
 
 
         
Consolidated Statements of Income    

 

Edison International

 

Three months ended
March 31,

(in millions, except per-share amounts, unaudited)       2015     2014
Total operating revenue $ 2,512       $ 2,926  
Purchased power and fuel 786     1,143
Operation and maintenance 636 726
Depreciation, decommissioning and amortization 463 410
Property and other taxes 89 85
Impairment and other charges       231  
Total operating expenses 1,974       2,595  
Operating income 538 331
Interest and other income 39 23
Interest expense (143 ) (141 )
Other expenses (10 )     (8 )
Income from continuing operations before income taxes 424 205
Income tax expense (benefit) 106       (19 )
Income from continuing operations 318 224
Loss from discontinued operations, net of tax       (22 )
Net income 318 202
Preferred and preference stock dividend requirements of utility 28 26
Other noncontrolling interests (9 )      
Net income attributable to Edison International common shareholders $ 299       $ 176  
Amounts attributable to Edison International common shareholders:
Income from continuing operations, net of tax $ 299 $ 198
Loss from discontinued operations, net of tax       (22 )
Net income attributable to Edison International common shareholders $ 299       $ 176  
Basic earnings (loss) per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding 326 326
Continuing operations $ 0.92 $ 0.61
Discontinued operations       (0.07 )
Total $ 0.92       $ 0.54  
Diluted earnings (loss) per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding, including effect of dilutive securities 329 329
Continuing operations $ 0.91 $ 0.61
Discontinued operations       (0.07 )
Total $ 0.91       $ 0.54  
Dividends declared per common share       $ 0.4175       $ 0.3550  
 
 
         
Consolidated Balance Sheets       Edison International
   
(in millions, unaudited)       March 31,
2015
    December 31,
2014
ASSETS
Cash and cash equivalents $ 115 $ 132
Receivables, less allowances of $67 and $68 for uncollectible accounts at respective dates 752 790
Accrued unbilled revenue 636 632
Inventory 290 281
Derivative assets 94 102
Regulatory assets 1,152 1,254
Deferred income taxes 359 452
Other current assets 382       376
Total current assets 3,780       4,019
Nuclear decommissioning trusts 4,896 4,799
Other investments 217       207
Total investments 5,113       5,006
Utility property, plant and equipment, less accumulated depreciation and amortization of $8,372 and $8,132 at respective dates 33,249 32,859
Nonutility property, plant and equipment, less accumulated depreciation of $78 and $76 at respective dates 123       122
Total property, plant and equipment 33,372       32,981
Derivative assets 212 219
Regulatory assets 7,737 7,612
Other long-term assets 364       349
Total long-term assets 8,313       8,180
 
 
Total assets       $ 50,578       $ 50,186
 
 
         
Consolidated Balance Sheets       Edison International
   
(in millions, except share amounts, unaudited)       March 31,
2015
    December 31,
2014
LIABILITIES AND EQUITY
Short-term debt $ 936 $ 1,291
Current portion of long-term debt 504 504
Accounts payable 1,203 1,580
Accrued taxes 118 81
Customer deposits 228 221
Derivative liabilities 185 196
Regulatory liabilities 435 401
Other current liabilities 962       1,205  
Total current liabilities 4,571       5,479  
Long-term debt 11,133       10,234  
Deferred income taxes and credits 7,415 7,313
Derivative liabilities 1,107 1,052
Pensions and benefits 2,176 2,155
Asset retirement obligations 2,824 2,821
Regulatory liabilities 5,972 5,889
Other deferred credits and other long-term liabilities 2,279       2,255  
Total deferred credits and other liabilities 21,773       21,485  
Total liabilities 37,477       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) 2,460 2,445
Accumulated other comprehensive loss (59 ) (58 )
Retained earnings 8,675       8,573  
Total Edison International's common shareholders' equity 11,076       10,960  
Noncontrolling interests - preferred and preference stock of utility 2,022       2,022  
Total equity 13,098       12,982  
 
 
Total liabilities and equity       $ 50,578       $ 50,186  
 
 
         
Consolidated Statements of Cash Flows       Edison International
 
Three months ended March 31,
(in millions, unaudited)       2015     2014
Cash flows from operating activities:    
Net income $ 318 $ 202
Less: loss from discontinued operations       (22 )
Income from continuing operations 318 224
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, decommissioning and amortization 485 432
Allowance for equity during construction (21 ) (13 )
Impairment and other charges 231
Deferred income taxes and investment tax credits 72 (6 )
Other 5 4
Changes in operating assets and liabilities:
Receivables 31 112
Inventory (10 ) (12 )
Accounts payable 63 (63 )
Prepaid and accrued taxes 38 65
Other current assets and liabilities (229 ) (145 )
Derivative assets and liabilities, net (10 ) (46 )
Regulatory assets and liabilities, net 193 (331 )
Nuclear decommissioning trusts 29 96
Other noncurrent assets and liabilities       17  
Net cash provided by operating activities 964       565  
Cash flows from financing activities:
Long-term debt issued, net of discount and issuance costs of $13 and $1 at respective dates 1,287 (1 )
Long-term debt matured or repurchased (419 ) (2 )
Preference stock issued, net 270
Short-term debt financing, net (355 ) 401
Cash contribution from redeemable noncontrolling interest 6
Dividends to noncontrolling interests (34 ) (30 )
Dividends paid (136 ) (116 )
Other (36 )     (42 )
Net cash provided by financing activities 313       480  
Cash flows from investing activities:
Capital expenditures (1,268 ) (940 )
Proceeds from sale of nuclear decommissioning trust investments 2,853 1,502
Purchases of nuclear decommissioning trust investments (2,889 ) (1,603 )
Other 10       (1 )
Net cash used in investing activities (1,294 )     (1,042 )
Net (decrease) increase in cash and cash equivalents (17 ) 3
Cash and cash equivalents at beginning of period 132       146  
Cash and cash equivalents at end of period       $ 115       $ 149  
 

Contacts

Edison International
Media relations:
Charles Coleman, 626-302-7982
or
Investor relations:
Scott Cunningham, 626-302-2540

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