| FOR IMMEDIATE RELEASE | Media relations contact: |
| Charles Coleman (626) 302-7982 |
Investor relations contact:
Scott Cunningham (626) 302-2540
Edison International Reports First Quarter 2012 Results
ROSEMEAD, Calif., May 2, 2012 – Edison International (NYSE: EIX) today reported first quarter 2012 basic earnings of $0.28 per share, compared to basic earnings of $0.61 per share in the same quarter last year. First quarter 2012 core earnings were $0.35 per share, compared to core earnings of $0.65 per share in the first quarter of 2011.
The decrease in earnings primarily related to losses at Edison Mission Group’s (EMG) Midwest Generation unit and to a delay in the 2012 rate case decision at Southern California Edison (SCE). SCE incurred higher costs in the quarter to support its ongoing investment programs, but the revenues to support these investment programs are pending a decision from California regulators.
"The timing impact on SCE’s first quarter results should correct itself when a final rate case decision is received,” said Ted Craver, chairman and chief executive officer of Edison International. "Prospects remain strong for rate base and earnings growth at SCE.”
In anticipation of the transfer of EMG’s Homer City station to its owner-lessors, results for Homer City are now classified as non-core for both periods.
First Quarter Earnings Detail
SCE’s first quarter 2012 basic and core earnings were $0.56 per share compared to $0.68 per share in the first quarter of 2011. The core earnings decrease was primarily due to a delay in the 2012 California Public Utilities Commission (CPUC) general rate case decision as higher depreciation and net interest expenses are not being recovered in currently authorized revenue. The revenue requirement ultimately adopted by the CPUC will be retroactive to January 1, 2012. SCE also incurred $0.04 per share of incremental steam generator inspection and repair costs related to outages at the San Onofre Nuclear Generating Station that were offset by other operation and maintenance cost reductions.
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Note: GAAP earnings and losses refer to net income or losses attributable to Edison International throughout this release. Core earnings are 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 First Quarter 2012 Financial Results
Page 2 of 10
EMG’s first quarter 2012 basic losses were $(0.26) per share compared to losses of ($0.06) per share in the first quarter of 2011. Core losses were $(0.19) per share compared to losses of ($0.02) per share in the same quarter last year. 2012 core losses were due to lower generation, average realized energy, and capacity prices, along with higher fuel costs at Midwest Generation. Non-core items for both quarters included the results for Homer City in anticipation of the transfer of Homer City to the owner-lessors.
Edison International parent company and other reported a first quarter 2012 basic and core loss of $(0.02) per share compared to a $(0.01) per share basic and core loss in the same quarter last year.
2012 Earnings Guidance
The company will provide 2012 earnings guidance after SCE has received a final decision on its 2012 General Rate Case from the CPUC. See the risk disclosure statement on page 3 and the financial teleconference presentation accompanying the company’s earnings conference call for further information.
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, Calif., 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 First Quarter 2012 Financial Results
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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 are 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 of Financial Condition and Results of Operations” in Edison International’s 2011 Form 10-K, and most recent Form 10-Q and other reports 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: Wednesday, May 2, 2012, 2:00 p.m. (Pacific Standard Time)
Telephone Numbers: 1-800-369-2198 (US) and 1-773-756-4618 (Int'l) - Passcode: Edison
Telephone Replay: 1-888-568-0802 (US) and 1-203-369-3929 (Int’l) - Passcode: 468529
Telephone replay available through May 11, 2012
Webcast: www.edisoninvestor.com
Edison International Reports First Quarter 2012 Financial Results
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Summary Financial Schedules
First Quarter Basic Earnings (Loss) Per Share
| Quarter Ended March 31, | |||||
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | 2012 | 2011 | Change | ||
| SCE | $0.56 | $0.68 | $(0.12) | ||
| EMG | (0.26) | (0.05) | (0.21) | ||
| EIX parent company and other | (0.02) | (0.01) | (0.01) | ||
| EIX earnings from continuing operations | 0.28 | 0.62 | (0.34) | ||
| EIX earnings from discontinued operations | -- | (0.01) | 0.01 | ||
EIX basic earnings1 | $0.28 | $0.61 | $(0.33) | ||
| EIX diluted earnings | $0.28 | $0.61 | $(0.33) | ||
| 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. |
First Quarter Reconciliation of Core Earnings (Loss) Per Share
to Basic Earnings (Loss) Per Share
| Quarter Ended March 31, | |||||
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | 2012 | 2011 | Change | ||
Core Earnings (Loss)1 | |||||
| SCE | $0.56 | $0.68 | $(0.12) | ||
| EMG | (0.19) | (0.02) | (0.17) | ||
| EIX parent company and other | (0.02) | (0.01) | (0.01) | ||
| EIX core earnings | 0.35 | 0.65 | (0.30) | ||
| Non-core items | |||||
EMG – Homer City2 EMG – Earnings (losses) from discontinued operations | (0.07) -- | (0.03) (0.01) | (0.04) 0.01 | ||
| Total non-core items | (0.07) | (0.04) | (0.03) | ||
EIX basic earnings1 | $0.28 | $0.61 | $(0.33) | ||
| 1 | See Use of Non-GAAP Financial Measures on page 3. 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 | Non-core items for both quarters included the results for Homer City in anticipation of the orderly transfer of the Homer City plant to the owner-lessors, which will result in EME's loss of substantially all beneficial economic interest in and material control of the Homer City plant. |
Edison International Reports First Quarter 2012 Financial Results
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First Quarter Basic Earnings (Loss)
| Quarter Ended March 31, | |||||
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | 2012 | 2011 | Change | ||
| SCE | $182 | $222 | $(40) | ||
| EMG | (83) | (18) | (65) | ||
| EIX parent company and other | (5) | (2) | (3) | ||
| EIX earnings (loss) from continuing operations | 94 | 202 | (108) | ||
| EIX earnings (loss) from discontinued operations | (1) | (2) | 1 | ||
| EIX basic earnings (loss) | $93 | $200 | $(107) | ||
First Quarter Reconciliation of Core Earnings (Loss) to Basic Earnings (Loss)
| Quarter Ended March 31, | |||||
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | 2012 | 2011 | Change | ||
Core Earnings (Loss)1 | |||||
| SCE | $182 | $222 | $(40) | ||
| EMG | (60) | (8) | (52) | ||
| EIX parent company and other | (5) | (2) | (3) | ||
| EIX core earnings | 117 | 212 | (95) | ||
| Non-core items | |||||
EMG – Homer City2 EMG – Earnings (losses) from discontinued operations | (23) (1) | (10) (2) | (13) 1 | ||
| Total non-core items | (24) | (12) | (12) | ||
| EIX basic earnings (loss) | $93 | $200 | $(107) | ||
| 1 | See Use of Non-GAAP Financial Measures on page 3. |
| 2 | Non-core items for both quarters included the results for Homer City in anticipation of the orderly transfer of the Homer City plant to the owner-lessors, which will result in EME's loss of substantially all beneficial economic interest in and material control of the Homer City plant. |
Edison International Reports First Quarter 2012 Financial Results
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| Consolidated Statements of Income | Edison International | |||||||
| Three months ended March 31, | ||||||||
| (in millions, except per-share amounts, unaudited) | 2012 | 2011 | ||||||
| Electric utility | $ | 2,412 | $ | 2,230 | ||||
| Competitive power generation | 444 | 552 | ||||||
| Total operating revenue | 2,856 | 2,782 | ||||||
| Fuel | 283 | 258 | ||||||
| Purchased power | 615 | 508 | ||||||
| Operation and maintenance | 1,184 | 1,149 | ||||||
| Depreciation, decommissioning and amortization | 456 | 417 | ||||||
| Asset impairments and other | 14 | — | ||||||
| Total operating expenses | 2,552 | 2,332 | ||||||
| Operating income | 304 | 450 | ||||||
| Interest and dividend income | 3 | 4 | ||||||
| Equity in loss from unconsolidated affiliates – net | (1 | ) | (5 | ) | ||||
| Other income | 31 | 41 | ||||||
| Interest expense | (212 | ) | (196 | ) | ||||
| Other expenses | (10 | ) | (13 | ) | ||||
| Income from continuing operations before income taxes | 115 | 281 | ||||||
| Income tax expense | — | 65 | ||||||
| Income from continuing operations | 115 | 216 | ||||||
| Loss from discontinued operations, net of tax | (1 | ) | (2 | ) | ||||
| Net income | 114 | 214 | ||||||
| Dividends on preferred and preference stock of utility | 19 | 14 | ||||||
| Other noncontrolling interests | 2 | — | ||||||
| Net income attributable to Edison International common shareholders | $ | 93 | $ | 200 | ||||
| Amounts attributable to Edison International common shareholders: | ||||||||
| Income from continuing operations, net of tax | $ | 94 | $ | 202 | ||||
| Loss from discontinued operations, net of tax | (1 | ) | (2 | ) | ||||
| Net income attributable to Edison International common shareholders | $ | 93 | $ | 200 | ||||
| Basic earnings (loss) per common share attributable to Edison International common shareholders: | ||||||||
| Weighted-average shares of common stock outstanding | 326 | 326 | ||||||
| Continuing operations | $ | 0.28 | $ | 0.62 | ||||
| Discontinued operations | — | (0.01 | ) | |||||
| Total | $ | 0.28 | $ | 0.61 | ||||
| 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 | 328 | ||||||
| Continuing operations | $ | 0.28 | $ | 0.62 | ||||
| Discontinued operations | — | (0.01 | ) | |||||
| Total | $ | 0.28 | $ | 0.61 | ||||
| Dividends declared per common share | $ | 0.325 | $ | 0.320 | ||||
Edison International Reports First Quarter 2012 Financial Results
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| Consolidated Balance Sheets | Edison International | |||||||
| March 31, | December 31, | |||||||
| (in millions, unaudited) | 2012 | 2011 | ||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 1,483 | $ | 1,469 | ||||
| Receivables, less allowances of $76 and $75 for uncollectible accounts at respective dates | 753 | 908 | ||||||
| Accrued unbilled revenue | 508 | 519 | ||||||
| Inventory | 579 | 624 | ||||||
| Prepaid taxes | 121 | 88 | ||||||
| Derivative assets | 90 | 106 | ||||||
| Restricted cash and cash equivalents | 187 | 103 | ||||||
| Margin and collateral deposits | 96 | 58 | ||||||
| Regulatory assets | 692 | 494 | ||||||
| Other current assets | 206 | 115 | ||||||
| Total current assets | 4,715 | 4,484 | ||||||
| Nuclear decommissioning trusts | 3,853 | 3,592 | ||||||
| Investments in unconsolidated affiliates | 522 | 525 | ||||||
| Other investments | 221 | 211 | ||||||
| Total investments | 4,596 | 4,328 | ||||||
| Utility property, plant and equipment, less accumulated depreciation of $7,088 and $6,894 at respective dates | 28,133 | 27,569 | ||||||
| Competitive power generation and other property, plant and equipment, less accumulated depreciation of $1,478 and $1,408 at respective dates | 4,547 | 4,547 | ||||||
| Total property, plant and equipment | 32,680 | 32,116 | ||||||
| Derivative assets | 117 | 128 | ||||||
| Restricted deposits | 60 | 51 | ||||||
| Rent payments in excess of levelized rent expense under plant operating leases | 798 | 760 | ||||||
| Regulatory assets | 5,713 | 5,466 | ||||||
| Other long-term assets | 705 | 706 | ||||||
| Total long-term assets | 7,393 | 7,111 | ||||||
| Total assets | $ | 49,384 | $ | 48,039 | ||||
Edison International Reports First Quarter 2012 Financial Results
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| Consolidated Balance Sheets | Edison International | |||||||
| March 31, | December 31, | |||||||
| (in millions, except share amounts, unaudited) | 2012 | 2011 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Short-term debt | $ | 343 | $ | 429 | ||||
| Current portion of long-term debt | 61 | 57 | ||||||
| Accounts payable | 1,067 | 1,419 | ||||||
| Accrued taxes | 112 | 52 | ||||||
| Accrued interest | 229 | 205 | ||||||
| Customer deposits | 195 | 199 | ||||||
| Derivative liabilities | 255 | 268 | ||||||
| Regulatory liabilities | 645 | 670 | ||||||
| Other current liabilities | 768 | 1,049 | ||||||
| Total current liabilities | 3,675 | 4,348 | ||||||
| Long-term debt | 14,131 | 13,689 | ||||||
| Deferred income taxes | 5,686 | 5,396 | ||||||
| Deferred investment tax credits | 88 | 89 | ||||||
| Customer advances | 141 | 138 | ||||||
| Derivative liabilities | 803 | 547 | ||||||
| Pensions and benefits | 2,882 | 2,912 | ||||||
| Asset retirement obligations | 2,730 | 2,688 | ||||||
| Regulatory liabilities | 5,103 | 4,670 | ||||||
| Other deferred credits and other long-term liabilities | 2,538 | 2,476 | ||||||
| Total deferred credits and other liabilities | 19,971 | 18,916 | ||||||
| Total liabilities | 37,777 | 36,953 | ||||||
| Commitments and contingencies | ||||||||
| Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date) | 2,325 | 2,360 | ||||||
| Accumulated other comprehensive loss | (118 | ) | (139 | ) | ||||
| Retained earnings | 7,783 | 7,834 | ||||||
| Total Edison International's common shareholders' equity | 9,990 | 10,055 | ||||||
| Preferred and preference stock of utility | 1,374 | 1,029 | ||||||
| Other noncontrolling interests | 243 | 2 | ||||||
| Total noncontrolling interests | 1,617 | 1,031 | ||||||
| Total equity | 11,607 | 11,086 | ||||||
| Total liabilities and equity | $ | 49,384 | $ | 48,039 | ||||
Edison International Reports First Quarter 2012 Financial Results
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| Consolidated Statements of Cash Flows | Edison International | |||||||
| Three months ended March 31, | ||||||||
| (in millions, unaudited) | 2012 | 2011 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 114 | $ | 214 | ||||
| Less: Loss from discontinued operations | (1 | ) | (2 | ) | ||||
| Income from continuing operations | 115 | 216 | ||||||
| Adjustments to reconcile to net cash provided by operating activities: | ||||||||
| Depreciation, decommissioning and amortization | 456 | 417 | ||||||
| Regulatory impacts of net nuclear decommissioning trust earnings | 77 | 41 | ||||||
| Other amortization | 26 | 37 | ||||||
| Asset impairments and other | 15 | — | ||||||
| Stock-based compensation | 8 | 7 | ||||||
| Equity in loss from unconsolidated affiliates | 1 | 5 | ||||||
| Distributions from unconsolidated affiliates | — | 5 | ||||||
| Deferred income taxes and investment tax credits | (22 | ) | 226 | |||||
| Income from leveraged leases | (1 | ) | (1 | ) | ||||
| Proceeds from U.S. treasury grants | 29 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables | 118 | 128 | ||||||
| Inventory | 44 | (18 | ) | |||||
| Margin and collateral deposits – net of collateral received | (36 | ) | 15 | |||||
| Prepaid taxes | (33 | ) | (143 | ) | ||||
| Other current assets | 22 | (6 | ) | |||||
| Rent payments in excess of levelized rent expense | (38 | ) | (32 | ) | ||||
| Accounts payable | (78 | ) | (49 | ) | ||||
| Accrued taxes | 322 | 1 | ||||||
| Other current liabilities | (426 | ) | (207 | ) | ||||
| Derivative assets and liabilities – net | 295 | 106 | ||||||
| Regulatory assets and liabilities – net | (254 | ) | (42 | ) | ||||
| Other assets | (7 | ) | (7 | ) | ||||
| Other liabilities | 45 | 21 | ||||||
| Operating cash flows from discontinued operations | (1 | ) | (2 | ) | ||||
| Net cash provided by operating activities | 677 | 718 | ||||||
| Cash flows from financing activities: | ||||||||
| Long-term debt issued | 449 | 82 | ||||||
| Long-term debt issuance costs | (8 | ) | (1 | ) | ||||
| Long-term debt repaid | (9 | ) | (9 | ) | ||||
| Preference stock issued – net | 345 | 123 | ||||||
| Short-term debt financing – net | (86 | ) | 294 | |||||
| Settlements of stock-based compensation – net | (28 | ) | (7 | ) | ||||
| Cash contributions from noncontrolling interests | 238 | — | ||||||
| Dividends and distributions to noncontrolling interests | (14 | ) | (13 | ) | ||||
| Dividends paid | (106 | ) | (104 | ) | ||||
| Net cash provided by financing activities | $ | 781 | $ | 365 | ||||
Edison International Reports First Quarter 2012 Financial Results
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| Consolidated Statements of Cash Flows | Edison International | |||||||
| Three months ended March 31, | ||||||||
| (in millions, unaudited) | 2012 | 2011 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | $ | (1,276 | ) | $ | (1,133 | ) | ||
| Proceeds from sale of nuclear decommissioning trust investments | 602 | 622 | ||||||
| Purchases of nuclear decommissioning trust investments and other | (684 | ) | (669 | ) | ||||
| Proceeds from partnerships and unconsolidated subsidiaries, net of investment | 1 | 5 | ||||||
| Investments in other assets | (87 | ) | 1 | |||||
| Net cash used by investing activities | (1,444 | ) | (1,174 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 14 | (91 | ) | |||||
| Cash and cash equivalents, beginning of period | 1,469 | 1,389 | ||||||
| Cash and cash equivalents, end of period | $ | 1,483 | $ | 1,298 | ||||