Exhibit 99.1
| | |
| FOR IMMEDIATE RELEASE | | Media relations contact: Charles Coleman, (626) 302-7982 Investor relations contact: Scott Cunningham, (626) 302-2540 |
Edison International Reports Second Quarter 2008 Earnings
EIX Financial Highlights
| | | | | | | | | | | | |
| | | Quarter Ended
June 30, | | Year-to-Date
June 30, |
(In millions, except basic per share data) | | 2008 | | 2007 | | 2008 | | 2007 |
GAAP earnings per share | | $ | 0.79 | | $ | 0.29 | | $ | 1.70 | | $ | 1.29 |
Core earnings per share | | $ | 0.79 | | $ | 0.73 | | $ | 1.72 | | $ | 1.63 |
GAAP earnings | | $ | 261 | | $ | 93 | | $ | 559 | | $ | 426 |
Core earnings | | $ | 262 | | $ | 239 | | $ | 565 | | $ | 538 |
| | • | | Second quarter GAAP earnings were $0.79 per share compared to $0.29 per share in the same quarter last year. |
| | • | | GAAP earnings in the second quarter of 2007 were adversely impacted from early debt extinguishment charges. |
| | • | | The core earnings increase was mainly due to higher gross margin at Edison Mission Group’s (EMG) Midwest plants and lower taxes at Southern California Edison (SCE). Core earnings exclude non-core items and discontinued operations. |
| | • | | Edison International’s 2008 core EPS guidance range of $3.61 to $4.01 per share is reaffirmed. |
ROSEMEAD, Calif., Aug. 8, 2008 – Edison International (NYSE: EIX) today reported second quarter 2008 core earnings of $0.79 per share, up 8 percent from the second quarter of 2007.
“Our second quarter results are consistent with meeting our earnings guidance for the year,” said Theodore F. Craver, Jr., chairman and chief executive officer of Edison International. “Our focus remains executing well to realize our full potential meeting customer needs and producing solid returns for our shareholders.”
Note: GAAP earnings refer to net income and GAAP earnings per share refer to basic earnings per share throughout this release. Core earnings is a non-GAAP financial measure; see reconciliation of core earnings to GAAP earnings and reconciliation of core earnings guidance to GAAP earnings guidance.
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Edison International Reports Second Quarter 2008 Financial Results
Page 2
Earnings from Continuing Operations
SCE’s second-quarter 2008 earnings from continuing operations and core earnings were $0.48 per share, compared to $0.44 per share in the same quarter last year. This increase was primarily due to lower taxes and interest, partially offset by lower operating income. Lower operating income is consistent with electric utility revenue being higher during the third quarter of each year due to seasonality and the company’s rate design, while operating expenses are recognized more evenly throughout the year.
EMG’s second-quarter 2008 earnings from continuing operations were $0.34 per share, compared to a loss of $0.15 per share in the same quarter last year. This increase was primarily due to a non-core after-tax charge in the second quarter of 2007 associated with early debt extinguishment. Excluding non-core items, EMG’s core earnings in the second quarter increased $0.04 per share, compared to the same quarter last year. This increase was primarily due to higher gross margin at Midwest Generation from higher generation and average realized energy prices and capacity prices. Also contributing to the increase was the gain on sale of Edison Capital’s Beaver Valley lease, partially offset by lower operating revenues and higher plant maintenance expense at Homer City.
| | | | | | | | | | | | |
| | | Quarter Ended
June 30, | | | Change | |
Earnings (Loss) Per Share (Unaudited) | | 2008 | | | 2007 | | |
SCE | | $ | 0.48 | | | $ | 0.44 | | | $ | 0.04 | |
EMG | | | 0.34 | | | | (0.15 | ) | | | 0.49 | |
EIX parent company and other | | | (0.03 | ) | | | (0.01 | ) | | | (0.02 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings from continuing operations | | | 0.79 | | | | 0.28 | | | | 0.51 | |
| | | | | | | | | | | | |
EIX GAAP earnings from discontinued operations | | | — | | | | 0.01 | | | | (0.01 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings | | $ | 0.79 | | | $ | 0.29 | | | $ | 0.50 | |
| | | | | | | | | | | | |
EIX diluted earnings | | $ | 0.79 | | | $ | 0.28 | | | $ | 0.51 | |
| | | | | | | | | | | | |
Second Quarter Reconciliation of Core Earnings to GAAP Earnings
| | | | | | | | | | | | |
| | | Quarter Ended
June 30, | | | Change | |
Core Earnings1 (Loss) Per Share (Unaudited) | | 2008 | | | 2007 | | |
SCE | | $ | 0.48 | | | $ | 0.44 | | | $ | 0.04 | |
EMG | | | 0.34 | | | | 0.30 | | | | 0.04 | |
EIX parent company and other | | | (0.03 | ) | | | (0.01 | ) | | | (0.02 | ) |
| | | | | | | | | | | | |
EIX core earnings | | | 0.79 | | | | 0.73 | | | | 0.06 | |
| | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
EMG – early debt retirement | | | — | | | | (0.45 | ) | | | 0.45 | |
EMG – earnings from discontinued operations | | | — | | | | 0.01 | | | | (0.01 | ) |
| | | | | | | | | | | | |
Total non-core items | | | — | | | | (0.44 | ) | | | 0.44 | |
| | | | | | | | | | | | |
EIX GAAP earnings | | $ | 0.79 | | | $ | 0.29 | | | $ | 0.50 | |
| | | | | | | | | | | | |
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 $(0.01) per share in the second quarter of 2008 and zero for the second quarter of 2007. |
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Edison International Reports Second Quarter 2008 Financial Results
Page 3
YEAR-TO-DATE EARNINGS SUMMARY
Edison International reported earnings of $1.70 per share for the six-month period ending June 30, 2008, compared to $1.29 per share for the same period last year. Edison International had earnings from continuing operations of $1.72 per share for the six-month period ended June 30, 2008, compared with $1.28 per share for the same period last year. Excluding earnings from discontinued operations and other non-core items, Edison International’s core earnings for the six-month period in 2008 were $1.72 per share, compared to $1.63 per share in the same period in 2007.
YEAR-TO-DATE EARNINGS DETAIL
SCE’s earnings from continuing operations in the first half of 2008 were $0.94 per share, a decrease of $0.06 per share compared to the same period last year. SCE’s 2007 results include income tax benefits of $0.10 per share related to certain environmental remediation costs. Excluding this non-core item, SCE’s year-to-date core earnings were $0.94 per share, compared to $0.90 per share in the same period last year. This increase is primarily from lower interest and taxes, partially offset by lower operating income. Lower operating income is consistent with electric utility revenue being higher during the third quarter of each year due to seasonality and the company’s rate design, while operating expenses are recognized more evenly throughout the year.
EMG’s earnings from continuing operations for the first six months of 2008 were $0.84 per share, up $0.51 per share from the same period last year. EMG’s GAAP results include a $0.02 loss and a $0.01 gain from discontinued operations in 2008 and 2007, respectively, and a $0.45 charge for early debt retirement in 2007. Excluding these non-core items, EMG’s core earnings were $0.84 per share, an increase of $0.06 per share. This increase primarily reflects higher gross margin at Midwest Generation from higher generation, average realized energy prices and capacity prices, and higher trading income at EMMT, partially offset by lower operating revenues and higher plant maintenance expense at Homer City.
| | | | | | | | | | | | |
| | | Year-to-Date June 30, | | | Change | |
Earnings (Loss) Per Share (Unaudited) | | 2008 | | | 2007 | | |
SCE | | $ | 0.94 | | | $ | 1.00 | | | $ | (0.06 | ) |
EMG | | | 0.84 | | | | 0.33 | | | | 0.51 | |
EIX parent company and other | | | (0.06 | ) | | | (0.05 | ) | | | (0.01 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings from continuing operations | | | 1.72 | | | | 1.28 | | | | 0.44 | |
| | | | | | | | | | | | |
EIX GAAP earnings/(loss) from discontinued operations | | | (0.02 | ) | | | 0.01 | | | | (0.03 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings | | $ | 1.70 | | | $ | 1.29 | | | $ | 0.41 | |
| | | | | | | | | | | | |
EIX diluted earnings | | $ | 1.69 | | | $ | 1.29 | | | $ | 0.40 | |
| | | | | | | | | | | | |
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Edison International Reports Second Quarter 2008 Financial Results
Page 4
Year-to-Date Reconciliation of Core Earnings to GAAP Earnings
| | | | | | | | | | | | |
| | | Year-to-date
June 30, | | | Change | |
Core Earnings1 (Loss) Per Share (Unaudited) | | 2008 | | | 2007 | | |
SCE | | $ | 0.94 | | | $ | 0.90 | | | $ | 0.04 | |
EMG | | | 0.84 | | | | 0.78 | | | | 0.06 | |
EIX parent company and other | | | (0.06 | ) | | | (0.05 | ) | | | (0.01 | ) |
| | | | | | | | | | | | |
EIX core earnings | | | 1.72 | | | | 1.63 | | | | 0.09 | |
| | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
SCE – regulatory/tax items | | | — | | | | 0.10 | | | | (0.10 | ) |
EMG – early debt retirement | | | — | | | | (0.45 | ) | | | 0.45 | |
EMG – earnings/(loss) from discontinued operations | | | (0.02 | ) | | | 0.01 | | | | (0.03 | ) |
| | | | | | | | | | | | |
Total non-core items | | | (0.02 | ) | | | (0.34 | ) | | | 0.32 | |
| | | | | | | | | | | | |
EIX GAAP earnings | | $ | 1.70 | | | $ | 1.29 | | | $ | 0.41 | |
| | | | | | | | | | | | |
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 $(0.02) per share for both 2008 and 2007. |
2008 EARNINGS GUIDANCE
The company reaffirmed its previously announced 2008 earnings guidance of $3.61 to $4.01 per share. See the risk disclosure statement on page 5 and the presentation accompanying the company’s conference call for further information.
Reconciliation of Core Earnings Guidance to GAAP Earnings Guidance
| | |
Core Earnings Per Share1 | | 2008 Guidance Reaffirmed as of
August 8, 2008 |
SCE | | $2.18 - $2.28 |
EMG | | $1.57 - $1.87 |
EIX parent company and other | | $(0.14) |
EIX core earnings | | $3.61 - $4.01 |
Non-core items | | — |
EIX GAAP earnings | | $3.61 - $4.01 |
1 | Guidance excludes discontinued operations and non-core items. The expected impact of participating securities is ($0.05) per share and is included in EIX parent company and other. |
Note: Earnings Guidance also excludes the potential impact of IRS issues, and the possible impairment of up to $48 million for NOx allowances purchased by EMG for the CAIR compliance program.
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 EPS by principal
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Edison International Reports Second Quarter 2008 Financial Results
Page 5
operating subsidiary internally for financial planning and for analysis of performance. We also use core earnings and EPS by principal operating subsidiary as primary performance measurements when communicating with analysts and investors regarding our earnings results and outlook, as it allows us to more accurately compare the company’s ongoing performance across periods. Core earnings exclude discontinued operations and other non-core items and are reconciled to GAAP earnings per share.
EPS by principal operating subsidiary is based on the principal operating subsidiary net income 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. EPS and core EPS by principal operating subsidiary are reconciled to GAAP earnings per share.
Reminder: Edison International Will Hold a Conference Call Today
Today, Edison International will hold a conference call to discuss its second quarter 2008 financial results at 8 a.m. (Pacific Daylight Time). Two-way participation in the telephone call is limited to financial analysts and investors, while all other interested parties are invited to participate in a simultaneous webcast at www.edisoninvestor.com. A presentation accompanying management’s comments on the conference call will be available on the web site as well at www.edisoninvestor.com. The domestic call-in number is (800) 356-8584 and the number for international callers is (850) 429-1225. The ID# is 11700. In addition to the live simulcast, the webcast will remain posted at www.edisoninvestor.com and telephone replays will be available through Friday, August 15, 2008, at the following numbers: (877) 693-4277 for callers in the United States and (402) 220-0042 for international callers. The ID# is 11701.
Risk Disclosure Statement
Statements contained in this news release about future performance, including, without limitation, earnings, asset and rate base growth, load growth, capital investments and other statements that are not purely historical, are forward-looking statements. 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 2007 Form 10-K and other reports filed with the Securities and Exchange Commission and are available on our Web site 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.
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, the largest electric utility in California, and Edison Mission Group, a competitive power generation business and parent company to Edison Mission Energy and Edison Capital.
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Edison International Reports Second Quarter 2008 Financial Results
Page 6
Second Quarter GAAP Earnings
| | | | | | | | | | | | |
| | | Quarter Ended
June 30, | | | Change | |
Earnings (Loss) (in millions) (Unaudited) | | 2008 | | | 2007 | | |
SCE | | $ | 157 | | | $ | 144 | | | $ | 13 | |
EMG | | | 112 | | | | (49 | ) | | | 161 | |
EIX parent company and other | | | (7 | ) | | | (4 | ) | | | (3 | ) |
| | | | | | | | | | | | |
EIX income from continuing operations | | | 262 | | | | 91 | | | | 171 | |
| | | | | | | | | | | | |
EIX income (loss) from discontinued operations | | | (1 | ) | | | 2 | | | | (3 | ) |
| | | | | | | | | | | | |
EIX net income | | $ | 261 | | | $ | 93 | | | $ | 168 | |
| | | | | | | | | | | | |
Second Quarter Reconciliation of Core Earnings to GAAP Earnings
| | | | | | | | | | | | |
| | | Quarter Ended
June 30, | | | Change | |
Core Earnings1 (Loss) (in millions) (Unaudited) | | 2008 | | | 2007 | | |
SCE | | $ | 157 | | | $ | 144 | | | $ | 13 | |
EMG | | | 112 | | | | 99 | | | | 13 | |
EIX parent company and other | | | (7 | ) | | | (4 | ) | | | (3 | ) |
| | | | | | | | | | | | |
EIX core earnings | | | 262 | | | | 239 | | | | 23 | |
| | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
EMG – early debt retirement | | | — | | | | (148 | ) | | | 148 | |
EMG – earnings/(loss) from discontinued operations | | | (1 | ) | | | 2 | | | | (3 | ) |
| | | | | | | | | | | | |
Total non-core items | | | (1 | ) | | | (146 | ) | | | 145 | |
| | | | | | | | | | | | |
Total EIX net income | | $ | 261 | | | $ | 93 | | | $ | 168 | |
| | | | | | | | | | | | |
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 $(0.01) per share in the second quarter of 2008 and zero for the second quarter of 2007. |
Year-to-Date GAAP Earnings
| | | | | | | | | | | | |
| | | Year-to-Date
June 30, | | | Change | |
Earnings (Loss) (in millions) (Unaudited) | | 2008 | | | 2007 | | |
SCE | | $ | 307 | | | $ | 325 | | | $ | (18 | ) |
EMG | | | 271 | | | | 106 | | | | 165 | |
EIX parent company and other | | | (13 | ) | | | (10 | ) | | | (3 | ) |
| | | | | | | | | | | | |
EIX income from continuing operations | | | 565 | | | | 421 | | | | 144 | |
| | | | | | | | | | | | |
EIX income/(loss) from discontinued operations | | | (6 | ) | | | 5 | | | | (11 | ) |
| | | | | | | | | | | | |
EIX net income | | $ | 559 | | | $ | 426 | | | $ | 133 | |
| | | | | | | | | | | | |
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Edison International Reports Second Quarter 2008 Financial Results
Page 7
Year-to-Date Reconciliation of Core Earnings to GAAP Earnings
| | | | | | | | | | | | |
| | | Year-to-Date
June 30, | | | Change | |
Core Earnings1 (Loss) (in millions) (Unaudited) | | 2008 | | | 2007 | | |
SCE | | $ | 307 | | | $ | 294 | | | $ | 13 | |
EMG | | | 271 | | | | 254 | | | | 17 | |
EIX parent company and other | | | (13 | ) | | | (10 | ) | | | (3 | ) |
| | | | | | | | | | | | |
EIX core earnings | | | 565 | | | | 538 | | | | 27 | |
| | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
SCE – regulatory/tax items | | | — | | | | 31 | | | | (31 | ) |
EMG – early debt retirement | | | — | | | | (148 | ) | | | 148 | |
EMG – income/(loss) from discontinued operations | | | (6 | ) | | | 5 | | | | (11 | ) |
| | | | | | | | | | | | |
Total non-core items | | | (6 | ) | | | (112 | ) | | | 106 | |
| | | | | | | | | | | | |
Total EIX net income | | $ | 559 | | | $ | 426 | | | $ | 133 | |
| | | | | | | | | | | | |
| 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 $(0.02) per share for both 2008 and 2007. |
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Edison International Reports Second Quarter 2008 Financial Results
Page 8
Edison International
Consolidated Statements of Income
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
June 30, | | | Six Months Ended
June 30, | |
In millions, except per-share amounts | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | (Unaudited) | |
Electric utility | | $ | 2,754 | | | $ | 2,459 | | | $ | 5,105 | | | $ | 4,681 | |
Nonutility power generation | | | 612 | | | | 569 | | | | 1,330 | | | | 1,241 | |
Financial services and other | | | 16 | | | | 19 | | | | 31 | | | | 37 | |
| | | | | | | | | | | | | | | | |
Total operating revenue | | | 3,382 | | | | 3,047 | | | | 6,466 | | | | 5,959 | |
| | | | | | | | | | | | | | | | |
Fuel | | | 554 | | | | 438 | | | | 1,090 | | | | 924 | |
Purchased power | | | 656 | | | | 829 | | | | 1,149 | | | | 1,146 | |
Provisions for regulatory adjustment clauses – net | | | 279 | | | | (33 | ) | | | 452 | | | | 255 | |
Other operation and maintenance | | | 1,110 | | | | 999 | | | | 2,085 | | | | 1,879 | |
Depreciation, decommissioning and amortization | | | 333 | | | | 313 | | | | 631 | | | | 627 | |
Gain on buyout of contract and sale of assets | | | (56 | ) | | | — | | | | (73 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 2,876 | | | | 2,546 | | | | 5,334 | | | | 4,830 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 506 | | | | 501 | | | | 1,132 | | | | 1,129 | |
Interest and dividend income | | | 22 | | | | 45 | | | | 36 | | | | 85 | |
Equity in income from partnerships and unconsolidated subsidiaries – net | | | 9 | | | | 20 | | | | 9 | | | | 37 | |
Other nonoperating income | | | 23 | | | | 22 | | | | 49 | | | | 39 | |
Interest expense – net of amounts capitalized | | | (165 | ) | | | (188 | ) | | | (336 | ) | | | (386 | ) |
Loss on early extinguishment of debt | | | — | | | | (241 | ) | | | — | | | | (241 | ) |
Other nonoperating deductions | | | (14 | ) | | | (9 | ) | | | (26 | ) | | | (22 | ) |
| | | | | | | | | | | | | | | | |
Income from continuing operations before tax and minority interest | | | 381 | | | | 150 | | | | 864 | | | | 641 | |
Income tax expense | | | 83 | | | | — | | | | 244 | | | | 129 | |
Dividends on preferred and preference stock of utility not subject to mandatory redemption | | | 13 | | | | 13 | | | | 25 | | | | 26 | |
Minority interest | | | 23 | | | | 46 | | | | 30 | | | | 65 | |
| | | | | | | | | | | | | | | | |
Income from continuing operations | | | 262 | | | | 91 | | | | 565 | | | | 421 | |
Income (loss) from discontinued operations – net of tax | | | (1 | ) | | | 2 | | | | (6 | ) | | | 5 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 261 | | | $ | 93 | | | $ | 559 | | | $ | 426 | |
| | | | | | | | | | | | | | | | |
Weighted-average shares of common stock outstanding | | | 326 | | | | 326 | | | | 326 | | | | 326 | |
Basic earnings (loss) per common share: | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 0.79 | | | $ | 0.28 | | | $ | 1.72 | | | $ | 1.28 | |
Discontinued operations | | | — | | | | 0.01 | | | | (0.02 | ) | | | 0.01 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 0.79 | | | $ | 0.29 | | | $ | 1.70 | | | $ | 1.29 | |
| | | | | | | | | | | | | | | | |
Weighted-average shares, including effect of dilutive securities | | | 329 | | | | 330 | | | | 330 | | | | 331 | |
Diluted earnings (loss) per common share: | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 0.79 | | | $ | 0.28 | | | $ | 1.71 | | | $ | 1.27 | |
Discontinued operations | | | — | | | | — | | | | (0.02 | ) | | | 0.02 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 0.79 | | | $ | 0.28 | | | $ | 1.69 | | | $ | 1.29 | |
| | | | | | | | | | | | | | | | |
Dividends declared per common share | | $ | 0.305 | | | $ | 0.29 | | | $ | 0.61 | | | $ | 0.58 | |
Edison International Reports Second Quarter 2008 Financial Results
Page 9
Edison International
Consolidated Balance Sheets
| | | | | | | | |
In millions | | June 30,
2008 | | | December 31,
2007 | |
| | | (Unaudited) | | | | |
ASSETS | | | | | | | | |
Cash and equivalents | | $ | 1,070 | | | $ | 1,441 | |
Short-term investments | | | 13 | | | | 81 | |
Receivables, less allowance of $32 and $34 for uncollectible accounts at respective dates | | | 1,176 | | | | 1,033 | |
Accrued unbilled revenue | | | 528 | | | | 370 | |
Fuel inventory | | | 154 | | | | 116 | |
Materials and supplies | | | 335 | | | | 316 | |
Derivative assets | | | 428 | | | | 109 | |
Restricted cash | | | 3 | | | | 3 | |
Margin and collateral deposits | | | 185 | | | | 121 | |
Regulatory assets | | | 203 | | | | 197 | |
Accumulated deferred income taxes – net | | | 262 | | | | 167 | |
Other current assets | | | 324 | | | | 290 | |
| | | | | | | | |
Total current assets | | | 4,681 | | | | 4,244 | |
| | | | | | | | |
Nonutility property – less accumulated provision for depreciation of $1,882 and $1,765 at respective dates | | | 5,115 | | | | 4,906 | |
Nuclear decommissioning trusts | | | 3,152 | | | | 3,378 | |
Investments in partnerships and unconsolidated subsidiaries | | | 239 | | | | 272 | |
Investments in leveraged leases | | | 2,454 | | | | 2,473 | |
Other investments | | | 109 | | | | 96 | |
| | | | | | | | |
Total investments and other assets | | | 11,069 | | | | 11,125 | |
| | | | | | | | |
Utility plant, at original cost: | | | | | | | | |
Transmission and distribution | | | 19,279 | | | | 18,940 | |
Generation | | | 1,818 | | | | 1,767 | |
Accumulated provision for depreciation | | | (5,344 | ) | | | (5,174 | ) |
Construction work in progress | | | 2,048 | | | | 1,693 | |
Nuclear fuel, at amortized cost | | | 251 | | | | 177 | |
| | | | | | | | |
Total utility plant | | | 18,052 | | | | 17,403 | |
| | | | | | | | |
Derivative assets | | | 295 | | | | 122 | |
Restricted cash | | | 47 | | | | 48 | |
Rent payments in excess of levelized rent expense under plant operating leases | | | 829 | | | | 716 | |
Regulatory assets | | | 2,723 | | | | 2,721 | |
Other long-term assets | | | 1,309 | | | | 1,144 | |
| | | | | | | | |
Total long-term assets | | | 5,203 | | | | 4,751 | |
| | | | | | | | |
Total assets | | $ | 39,005 | | | $ | 37,523 | |
| | | | | | | | |
Edison International Reports Second Quarter 2008 Financial Results
Page 10
Edison International
Consolidated Balance Sheets
| | | | | | | | |
In millions, except share amounts | | June 30,
2008 | | | December 31,
2007 | |
| | | (Unaudited) | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
Short-term debt | | $ | 800 | | | $ | 500 | |
Long-term debt due within one year | | | 177 | | | | 18 | |
Accounts payable | | | 1,066 | | | | 979 | |
Accrued taxes | | | 116 | | | | 49 | |
Accrued interest | | | 192 | | | | 160 | |
Counterparty collateral | | | 24 | | | | 42 | |
Customer deposits | | | 224 | | | | 219 | |
Book overdrafts | | | 324 | | | | 212 | |
Derivative liabilities | | | 319 | | | | 125 | |
Regulatory liabilities | | | 1,223 | | | | 1,019 | |
Other current liabilities | | | 809 | | | | 933 | |
| | | | | | | | |
Total current liabilities | | | 5,274 | | | | 4,256 | |
| | | | | | | | |
Long-term debt | | | 9,292 | | | | 9,016 | |
| | | | | | | | |
Accumulated deferred income taxes – net | | | 5,147 | | | | 5,196 | |
Accumulated deferred investment tax credits | | | 110 | | | | 114 | |
Customer advances | | | 145 | | | | 155 | |
Derivative liabilities | | | 243 | | | | 101 | |
Power-purchase contracts | | | 22 | | | | 22 | |
Accumulated provision for pensions and benefits | | | 1,165 | | | | 1,089 | |
Asset retirement obligations | | | 2,962 | | | | 2,892 | |
Regulatory liabilities | | | 3,356 | | | | 3,433 | |
Other deferred credits and other long-term liabilities | | | 1,601 | | | | 1,595 | |
| | | | | | | | |
Total deferred credits and other liabilities | | | 14,751 | | | | 14,597 | |
| | | | | | | | |
Total liabilities | | | 29,317 | | | | 27,869 | |
| | | | | | | | |
Commitments and contingencies | | | | | | | | |
Minority interest | | | 314 | | | | 295 | |
| | | | | | | | |
Preferred and preference stock of utility not subject to mandatory redemption | | | 907 | | | | 915 | |
| | | | | | | | |
Common stock, no par value (325,811,206 shares outstanding at each date) | | | 2,253 | | | | 2,225 | |
Accumulated other comprehensive loss | | | (415 | ) | | | (92 | ) |
Retained earnings | | | 6,629 | | | | 6,311 | |
| | | | | | | | |
Total common shareholders’ equity | | | 8,467 | | | | 8,444 | |
| | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 39,005 | | | $ | 37,523 | |
| | | | | | | | |
Edison International Reports Second Quarter 2008 Financial Results
Page 11
Edison International
Consolidated Statements of Cash Flows
| | | | | | | | |
| | | Six Months Ended
June 30, | |
In millions | | 2008 | | | 2007 | |
| | | (Unaudited) | |
Cash flows from operating activities: | | | | | | | | |
Net income | | $ | 559 | | | $ | 426 | |
Less: Income (loss) from discontinued operations | | | (6 | ) | | | 5 | |
| | | | | | | | |
Income from continuing operations | | | 565 | | | | 421 | |
Adjustments to reconcile to net cash provided by operating activities: | | | | | | | | |
Depreciation, decommissioning and amortization | | | 631 | | | | 627 | |
Realized loss on impairment of nuclear decommissioning trusts | | | 72 | | | | 23 | |
Other amortization | | | 51 | | | | 64 | |
Stock-based compensation | | | 16 | | | | 19 | |
Minority interest | | | 30 | | | | 65 | |
Deferred income taxes and investment tax credits | | | 26 | | | | (193 | ) |
Equity in income from partnerships and unconsolidated subsidiaries | | | (9 | ) | | | (37 | ) |
Gain on buyout of contract and sale of assets | | | (73 | ) | | | (1 | ) |
Income from leveraged leases | | | (27 | ) | | | (31 | ) |
Levelized rent expense | | | (113 | ) | | | (112 | ) |
Loss on early extinguishment of debt | | | — | | | | 241 | |
Regulatory assets | | | 8 | | | | 245 | |
Regulatory liabilities | | | 374 | | | | 120 | |
Derivative assets | | | (476 | ) | | | (140 | ) |
Derivative liabilities | | | (221 | ) | | | (123 | ) |
Other assets | | | (52 | ) | | | (22 | ) |
Other liabilities | | | 51 | | | | 236 | |
Margin and collateral deposits – net of collateral received | | | (83 | ) | | | (29 | ) |
Receivables and accrued unbilled revenue | | | (237 | ) | | | (189 | ) |
Inventory and other current assets | | | (36 | ) | | | (49 | ) |
Book overdrafts | | | 112 | | | | 65 | |
Accrued interest and taxes | | | 99 | | | | 205 | |
Accounts payable and other current liabilities | | | (2 | ) | | | (119 | ) |
Distributions and dividends from unconsolidated entities | | | 8 | | | | 21 | |
Operating cash flows from discontinued operations | | | (6 | ) | | | 5 | |
| | | | | | | | |
Net cash provided by operating activities | | | 708 | | | | 1,312 | |
| | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
Long-term debt issued | | | 784 | | | | 2,905 | |
Premium paid on extinguishment of debt and long-term debt issuance costs | | | (10 | ) | | | (240 | ) |
Long-term debt repaid | | | (134 | ) | | | (2,965 | ) |
Bonds repurchased | | | (212 | ) | | | — | |
Redemption of preference stock, net | | | (7 | ) | | | — | |
Rate reduction notes repaid | | | — | | | | (116 | ) |
Short-term debt financing – net | | | 300 | | | | 175 | |
Shares purchased for stock-based compensation | | | (51 | ) | | | (183 | ) |
Proceeds from stock option exercises | | | 20 | | | | 72 | |
Excess tax benefits related to stock-based awards | | | 11 | | | | 35 | |
Dividends to minority shareholders | | | (33 | ) | | | (32 | ) |
Dividends paid | | | (199 | ) | | | (189 | ) |
| | | | | | | | |
Net cash provided (used) by financing activities | | $ | 469 | | | $ | (538 | ) |
| | | | | | | | |
Edison International Reports Second Quarter 2008 Financial Results
Page 12
Edison International
Consolidated Statements of Cash Flows
| | | | | | | | |
| | | Six Months Ended
June 30, | |
In millions | | 2008 | | | 2007 | |
| | | (Unaudited) | |
Cash flows from investing activities: | | | | | | | | |
Capital expenditures | | $ | (1,460 | ) | | $ | (1,335 | ) |
Purchase of interest of acquired companies | | | (7 | ) | | | (23 | ) |
Proceeds from sale of property and interests in projects | | | 112 | | | | — | |
Proceeds from nuclear decommissioning trust sales | | | 1,501 | | | | 2,017 | |
Purchases of nuclear decommissioning trust investments and other | | | (1,560 | ) | | | (2,084 | ) |
Proceeds from partnerships and unconsolidated subsidiaries, net of investment | | | 30 | | | | 31 | |
Maturities and sales of short-term investments | | | 70 | | | | 3,192 | |
Purchase of short-term investments | | | (2 | ) | | | (2,952 | ) |
Restricted cash | | | — | | | | 37 | |
Customer advances for construction and other investments | | | (232 | ) | | | (233 | ) |
| | | | | | | | |
Net cash used by investing activities | | | (1,548 | ) | | | (1,350 | ) |
| | | | | | | | |
Net decrease in cash and equivalents | | | (371 | ) | | | (576 | ) |
Cash and equivalents, beginning of period | | | 1,441 | | | | 1,795 | |
| | | | | | | | |
Cash and equivalents, end of period | | $ | 1,070 | | | $ | 1,219 | |
| | | | | | | | |
