FOR IMMEDIATE RELEASE
Media relations contact:
Charles Coleman, (626) 302-7982
Investor relations contact:
Scott Cunningham, (626) 302-2540
Edison International Reports First Quarter 2013 Results
ROSEMEAD, Calif., Apr. 30, 2013 – Edison International (NYSE: EIX) today reported first quarter results, as summarized below.
First Quarter Results Summary
|
| | | | |
| | | | Three Months Ended March 31, |
| Per Share | 2013 | 2012 |
| Basic earnings from continuing operations | $0.79 | $0.54 |
| Basic earnings (loss) from discontinued operations | 0.04 | (0.26) |
| Basic earnings (loss) | $0.83 | $0.28 |
| Core earnings | $0.77 | $0.54 |
Note: See Use of Non-GAAP Financial Measures in Appendix.
Core Earnings Summary
The increase in core earnings in the first quarter was largely driven by the implementation of rates approved in Southern California Edison’s (SCE) 2012 General Rate Case (GRC), which was approved by the California Public Utilities Commission (CPUC) in November 2012.
“We're off to a strong start in the first quarter, with earnings consistent with our full-year guidance,” said Ted Craver, chairman and chief executive officer of Edison International. “Southern California Edison continues to make substantial investments in infrastructure improvements supporting state policy objectives."
First Quarter Earnings Detail
SCE's first quarter 2013 basic and core earnings were $0.78 per share compared to $0.56 per share in the first quarter of 2012. The core earnings increase was primarily due to the delay in receiving SCE's 2012 General Rate Case, lower operating expenses, largely due to timing, and tax benefits from incremental repair deductions.
Edison International parent company and other reported first quarter 2013 basic earnings from continuing operations of $0.01 per share compared to a $(0.02) per share loss from continuing operations in the first quarter of 2012. Core losses were $(0.01) per share compared to ($0.02) per share in the same period last year.
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Edison International Reports First Quarter 2013 Financial Results
Page 2 of 10
2013 Earnings Guidance
The company reaffirmed its 2013 core earnings guidance of $3.45 to $3.65 per share and updated its basic earnings guidance to a range of $3.51 to $3.71 per share based on first quarter results. See the risk disclosure statement in the Appendix and the presentation accompanying the company’s conference call for further information.
Reconciliation of 2013 Core Earnings Guidance to
Basic Earnings Guidance
|
| | |
| | 2013 Earnings Guidance as of 2/26/13 | 2013 Earnings Guidance as of 4/30/13 |
| SCE | $3.70 | $3.70 |
| EIX Parent & Other | (0.15) | (0.15) |
| EIX Core EPS | $3.45 - $3.65 | $3.45 - $3.65 |
| Non-core Items | — | 0.06 |
| EIX Basic EPS | $3.45 - $3.65 | $3.51 - $3.71 |
Note: See Use of Non-GAAP Financial Measures in Appendix. Non-core items from first quarter only.
About Edison International
Edison International (NYSE:EIX), 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.
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Edison International Reports First Quarter 2013 Financial Results
Page 3 of 10
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 stock options 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 EIX 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 2012 Form 10-K, and other reports 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 30, 2013, 2:00 p.m. (Pacific Daylight Time)
Telephone Numbers: 1-800-369-2198 (US) and 1-773-756-4618 (Int'l) - Passcode: Edison
Telephone Replay: 1-800-925-1773 (US) and 1-402-220-3092 (Int’l) - Passcode: 468529
Telephone replay available through May 9, 2013
Webcast: www.edisoninvestor.com
Edison International Reports First Quarter 2013 Financial Results
Page 4 of 10
Summary Financial Schedules
First Quarter Basic Earnings Per Share
|
| | | | | |
| | | | Three Months Ended March 31, | |
Earnings (Loss) Per Share Attributable to Edison International |
2013 |
2012 |
Change |
| | SCE | $0.78 | $0.56 | $0.22 |
| | EIX parent & other | 0.01 | (0.02) | 0.03 |
| Earnings from continuing operations | 0.79 | 0.54 | 0.25 |
Earnings (loss) from discontinued operations1 | 0.04 | (0.26) | 0.30 |
Basic earnings2 | $0.83 | $0.28 | $0.55 |
| Diluted earnings | $0.82 | $0.28 | $0.54 |
| |
| 1 | Results for Edison Mission Energy reported as non-core discontinued operations for both periods. |
| |
| 2 | The impact of participating securities on the per share amounts is included in EIX parent & other and was zero per share for both quarters. |
First Quarter Reconciliation of Core Earnings Per Share
to Basic Earnings Per Share
|
| | | | | | | |
| | | | Three Months Ended March 31, | |
Earnings Per Share Attributable to Edison International |
2013 |
2012 |
|
Change |
Core earnings (loss)1,2 | | | |
| | SCE | $0.78 | $0.56 | $0.22 |
| | EIX parent & other | (0.01) | (0.02) | 0.01 |
| Core earnings | 0.77 | 0.54 | 0.23 |
| Non-core items | | | |
| | EIX parent & other | 0.02 | — |
| 0.02 |
| Earnings (loss) from discontinued operations | 0.04 | (0.26) | 0.30 |
| Total non-core items | 0.06 | (0.26) | 0.32 |
Basic earnings1 | $0.83 | $0.28 | $0.55 |
| |
| 1 | See Use of Non-GAAP Financial Measures in Appendix. The impact of participating securities on the per share amounts is included in EIX parent & other and was zero per share for both periods. |
| |
| 2 | Results for Edison Mission Energy reported as non-core discontinued operations for both periods. |
Edison International Reports First Quarter 2013 Financial Results
Page 5 of 10
First Quarter Basic Earnings
|
| | | | | |
| | | | Three Months Ended March 31, | |
Earnings (Loss) (in millions) Attributable to Edison International |
2013 |
2012 |
Change |
| | SCE | $256 | $182 | $74 |
| | EIX parent & other | 3 | (5) | 8 |
| Earnings from continuing operations | 259 | 177 | 82 |
| Earnings (loss) from discontinued operations | 12 | (84) | 96 |
| Basic earnings | $271 | $93 | $178 |
Note: Results for Edison Mission Energy reported as non-core discontinued operations for both periods.
First Quarter Reconciliation of Core Earnings to Basic Earnings
|
| | | | | | |
| | | | Three Months Ended March 31, | |
Earnings (in millions) Attributable to Edison International |
2013 |
2012 |
| Change |
| Core earnings (loss) | | | |
| | SCE | $256 | $182 | $74 |
| | EIX parent & other | (4) | (5) | 1 |
| Core earnings | 252 | 177 | 75 |
| Non-core items | | | |
| | EIX parent & other | 7 | — |
| 7 |
| Earnings (loss) from discontinued operations | | |
|
| | EIX parent & other | 12 | (84) | 96 |
| Total non-core items | 19 | (84) | 103 |
| Basic earnings | $271 | $93 | $178 |
Note: See Use of Non-GAAP Financial Measures in Appendix. Results for Edison Mission Energy reported as non-core discontinued operations for both periods.
Edison International Reports First Quarter 2013 Financial Results
Page 6 of 10
|
| | | | | | | |
| Consolidated Statements of Income | Edison International | |
|
|
| | Three months ended March 31, |
| (in millions, except per-share amounts, unaudited) | 2013 |
| 2012 |
| Operating revenue | 2,632 |
|
| 2,415 |
|
| Fuel | 73 |
|
| 77 |
|
| Purchased power | 780 |
|
| 615 |
|
| Operation and maintenance | 873 |
|
| 946 |
|
| Depreciation, decommissioning and amortization | 414 |
|
| 388 |
|
| Total operating expenses | 2,140 |
|
| 2,026 |
|
| Operating income | 492 |
|
| 389 |
|
| Interest and other income | 34 |
|
| 34 |
|
| Interest expense | (131 | ) |
| (126 | ) |
| Other expenses | (11 | ) |
| (10 | ) |
| Income from continuing operations before income taxes | 384 |
|
| 287 |
|
| Income tax expense | 98 |
|
| 91 |
|
| Income from continuing operations | 286 |
|
| 196 |
|
| Income (loss) from discontinued operations, net of tax | 12 |
|
| (84 | ) |
| Net income | 298 |
|
| 112 |
|
| Dividends on preferred and preference stock of utility | 27 |
|
| 19 |
|
| Net income attributable to Edison International common shareholders | $ | 271 |
|
| $ | 93 |
|
| Amounts attributable to Edison International common shareholders: |
|
|
|
| Income from continuing operations, net of tax | $ | 259 |
|
| $ | 177 |
|
| Income (loss) from discontinued operations, net of tax | 12 |
|
| (84 | ) |
| Net income attributable to Edison International common shareholders | $ | 271 |
|
| $ | 93 |
|
Basic earnings (loss) per common share attributable to Edison International
common shareholders: |
|
|
|
| Weighted-average shares of common stock outstanding | 326 |
|
| 326 |
|
| Continuing operations | $ | 0.79 |
|
| $ | 0.54 |
|
| Discontinued operations | 0.04 |
|
| (0.26 | ) |
| Total | $ | 0.83 |
|
| $ | 0.28 |
|
| 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 | $ | 0.78 |
|
| $ | 0.54 |
|
| Discontinued operations | 0.04 |
|
| (0.26 | ) |
| Total | $ | 0.82 |
|
| $ | 0.28 |
|
| Dividends declared per common share | $ | 0.3375 |
|
| $ | 0.325 |
|
Edison International Reports First Quarter 2013 Financial Results
Page 7 of 10
|
| | | | | | | | |
| Consolidated Balance Sheets |
| Edison International | |
|
|
|
|
|
|
|
|
| March 31, |
| December 31, |
| (in millions, unaudited) |
| 2013 |
| 2012 |
| ASSETS |
| |
| |
| Cash and cash equivalents |
| $ | 115 |
|
| $ | 170 |
|
| Receivables, less allowances of $67 and $75 for uncollectible accounts at respective dates |
| 797 |
|
| 762 |
|
| Accrued unbilled revenue |
| 403 |
|
| 550 |
|
| Inventory |
| 351 |
|
| 340 |
|
| Prepaid taxes |
| 26 |
|
| 22 |
|
| Derivative assets |
| 111 |
|
| 129 |
|
| Margin and collateral deposits |
| 10 |
|
| 8 |
|
| Regulatory assets |
| 672 |
|
| 572 |
|
| Other current assets |
| 185 |
|
| 119 |
|
| Total current assets |
| 2,670 |
|
| 2,672 |
|
| Nuclear decommissioning trusts |
| 4,246 |
|
| 4,048 |
|
| Investments in unconsolidated affiliates |
| 2 |
|
| 2 |
|
| Other investments |
| 199 |
|
| 184 |
|
| Total investments |
| 4,447 |
|
| 4,234 |
|
| Utility property, plant and equipment, less accumulated depreciation of $7,662 and $7,424 at respective dates |
| 30,673 |
|
| 30,200 |
|
| Nonutility property, plant and equipment, less accumulated depreciation of $126 and $123 at respective dates |
| 72 |
|
| 73 |
|
| Total property, plant and equipment |
| 30,745 |
|
| 30,273 |
|
| Derivative assets |
| 81 |
|
| 85 |
|
| Restricted deposits |
| 4 |
|
| 4 |
|
| Regulatory assets |
| 6,518 |
|
| 6,422 |
|
| Other long-term assets |
| 690 |
|
| 704 |
|
| Total long-term assets |
| 7,293 |
|
| 7,215 |
|
|
|
|
|
|
|
|
| Total assets |
| $ | 45,155 |
|
| $ | 44,394 |
|
Edison International Reports First Quarter 2013 Financial Results
Page 8 of 10
|
| | | | | | | | |
| Consolidated Balance Sheets |
| Edison International | |
|
| |
| |
|
| March 31, |
| December 31, |
| (in millions, except share amounts, unaudited) |
| 2013 |
| 2012 |
| LIABILITIES AND EQUITY |
| |
| |
| Short-term debt |
| $ | 420 |
|
| $ | 175 |
|
| Current portion of long-term debt |
| 800 |
|
| — |
|
| Accounts payable |
| 1,100 |
|
| 1,423 |
|
| Accrued taxes |
| 134 |
|
| 61 |
|
| Accrued interest |
| 126 |
|
| 176 |
|
| Customer deposits |
| 196 |
|
| 193 |
|
| Derivative liabilities |
| 107 |
|
| 126 |
|
| Regulatory liabilities |
| 443 |
|
| 536 |
|
| Deferred income taxes |
| 174 |
|
| 64 |
|
| Other current liabilities |
| 779 |
|
| 990 |
|
| Total current liabilities |
| 4,279 |
|
| 3,744 |
|
| Long-term debt |
| 8,829 |
|
| 9,231 |
|
| Deferred income taxes |
| 6,289 |
|
| 6,127 |
|
| Deferred investment tax credits |
| 103 |
|
| 104 |
|
| Customer advances |
| 150 |
|
| 149 |
|
| Derivative liabilities |
| 1,014 |
|
| 939 |
|
| Pensions and benefits |
| 2,610 |
|
| 2,614 |
|
| Asset retirement obligations |
| 2,824 |
|
| 2,782 |
|
| Regulatory liabilities |
| 5,470 |
|
| 5,214 |
|
| Other deferred credits and other long-term liabilities |
| 2,278 |
|
| 2,299 |
|
| Total deferred credits and other liabilities |
| 20,738 |
|
| 20,228 |
|
| Total liabilities |
| 33,846 |
|
| 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) |
| 2,380 |
|
| 2,373 |
|
| Accumulated other comprehensive loss |
| (87 | ) |
| (87 | ) |
| Retained earnings |
| 7,262 |
|
| 7,146 |
|
| Total Edison International's common shareholders' equity |
| 9,555 |
|
| 9,432 |
|
| Preferred and preference stock of utility |
| 1,754 |
|
| 1,759 |
|
| Total noncontrolling interests |
| 1,754 |
|
| 1,759 |
|
| Total equity |
| 11,309 |
|
| 11,191 |
|
| Total liabilities and equity |
| $ | 45,155 |
|
| $ | 44,394 |
|
Edison International Reports First Quarter 2013 Financial Results
Page 9 of 10
|
| | | | | | | | |
| Consolidated Statements of Cash Flows |
| Edison International | |
|
|
|
| |
| Three months ended March 31, |
| (in millions, unaudited) |
| 2013 |
| 2012 |
| Cash flows from operating activities: |
| |
| |
| Net income |
| $ | 298 |
|
| $ | 112 |
|
| Less: Income (loss) from discontinued operations |
| 12 |
|
| (84 | ) |
| Income from continuing operations |
| 286 |
|
| 196 |
|
| Adjustments to reconcile to net cash provided by operating activities: |
|
|
| |
| Depreciation, decommissioning and amortization |
| 414 |
|
| 388 |
|
| Regulatory impacts of net nuclear decommissioning trust earnings |
| 25 |
|
| 77 |
|
| Other amortization and other |
| 17 |
|
| 19 |
|
| Stock-based compensation |
| 6 |
|
| 8 |
|
| Deferred income taxes and investment tax credits |
| 174 |
|
| 30 |
|
| Proceeds from U.S. treasury grants |
| — |
|
| 29 |
|
| Changes in operating assets and liabilities: |
|
|
| |
| Receivables |
| (38 | ) |
| 88 |
|
| Inventory |
| (11 | ) |
| 10 |
|
| Margin and collateral deposits, net of collateral received |
| (2 | ) |
| (1 | ) |
| Prepaid taxes |
| (5 | ) |
| 11 |
|
| Other current assets |
| 82 |
|
| 17 |
|
| Accounts payable |
| (65 | ) |
| (47 | ) |
| Accrued taxes |
| 60 |
|
| 170 |
|
| Other current liabilities |
| (255 | ) |
| (302 | ) |
| Derivative assets and liabilities, net |
| 79 |
|
| 273 |
|
| Regulatory assets and liabilities, net |
| (199 | ) |
| (254 | ) |
| Other assets |
| (13 | ) |
| (9 | ) |
| Other liabilities |
| (49 | ) |
| 72 |
|
| Operating cash flows from continuing operations |
| 506 |
|
| 775 |
|
| Operating cash flows from discontinued operations, net |
| — |
|
| (98 | ) |
| Net cash provided by operating activities |
| 506 |
|
| 677 |
|
| Cash flows from financing activities: |
| |
| |
| Long-term debt issued |
| 398 |
|
| 395 |
|
| Long-term debt issuance costs |
| (4 | ) |
| (4 | ) |
| Long-term debt repaid |
| (1 | ) |
| (2 | ) |
| Preference stock issued, net |
| 387 |
|
| 345 |
|
| Preference stock redeemed |
| (400 | ) |
| — |
|
| Short-term debt financing, net |
| 245 |
|
| (86 | ) |
| Settlements of stock-based compensation, net |
| (32 | ) |
| (22 | ) |
| Dividends to noncontrolling interests |
| (30 | ) |
| (14 | ) |
| Dividends paid |
| (110 | ) |
| (106 | ) |
| Financing cash flows from continuing operations |
| 453 |
|
| 506 |
|
| Financing cash flows from discontinued operations, net |
| — |
|
| 279 |
|
| Net cash provided by financing activities |
| $ | 453 |
|
| $ | 785 |
|
Edison International Reports First Quarter 2013 Financial Results
Page 10 of 10
|
| | | | | | | | |
| Consolidated Statements of Cash Flows |
| Edison International | |
|
|
|
| |
| Three months ended March 31, |
| (in millions, unaudited) |
| 2013 |
| 2012 |
| Cash flows from investing activities: |
| |
| |
| Capital expenditures |
| $ | (979 | ) |
| $ | (1,189 | ) |
| Proceeds from sale of nuclear decommissioning trust investments |
| 435 |
|
| 602 |
|
| Purchases of nuclear decommissioning trust investments and other |
| (466 | ) |
| (684 | ) |
| Other investments and customer advances for construction |
| (4 | ) |
| (3 | ) |
| Investing cash flows from continuing operations |
| (1,014 | ) |
| (1,274 | ) |
| Investing cash flows from discontinued operations, net |
| — |
|
| (174 | ) |
| Net cash used by investing activities |
| (1,014 | ) |
| (1,448 | ) |
| Net (decrease) increase in cash and cash equivalents |
| (55 | ) |
| 14 |
|
| Cash and cash equivalents at beginning of period |
| 170 |
|
| 1,469 |
|
| Cash and cash equivalents at end of period |
| 115 |
|
| 1,483 |
|
| Cash and cash equivalents from discontinued operations |
| — |
|
| 1,300 |
|
| Cash and cash equivalents from continuing operations |
| $ | 115 |
|
| $ | 183 |
|
