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 Third Quarter 2008 Earnings
| | ¡ | | Third quarter 2008 GAAP earnings were $1.33 per share compared to $1.40 per share in the same quarter last year. |
| | ¡ | | Core earnings per share were $1.46 in the third quarter of 2008 compared to $1.41 a year ago. The core earnings increase was primarily due to higher operating income 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, with results now expected to be near the middle of the range versus the high-end of the range. |
ROSEMEAD, Calif., Nov. 7, 2008 – Edison International (NYSE: EIX) today reported third quarter 2008 results.
“The financial markets have experienced new and unprecedented levels of stress,” said Theodore F. Craver, Jr., chairman and chief executive officer of Edison International. “We’re focused on running our businesses in a prudent manner to ensure we meet our customer commitments as well as maintaining our financial strength.”
Third Quarter Earnings Detail
SCE’s third-quarter 2008 reported earnings were $0.72 per share, compared to $0.80 per share in the same quarter of 2007. This decrease was primarily due to a $0.15 per share charge associated with a decision adopted by the California Public Utilities Commission (CPUC) which required SCE to refund or forego incentives and imposed a penalty related to previously earned customer satisfaction and employee safety incentives. Excluding this non-core item, SCE’s core earnings in the third quarter increased $0.07 per share compared to the same quarter last year reflecting higher operating income and lower financing costs.
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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.
EDISON INTERNATIONAL REPORTSTHIRD QUARTER 2008 FINANCIAL RESULTS
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Edison Mission Group’s (EMG) reported earnings were $0.66 per share for the third quarter of 2008 compared to $0.63 per share for the third quarter of 2007. EMG earnings from continuing operations and core earnings for the third quarter of 2008 remained flat compared to 2007 at $0.64 per share. Higher gross margins at Homer City and Midwest Generation were offset by a $0.05 per share charge related to hedge contracts with Lehman Brothers, lower income from the Big 4 projects and Edison Capital, lower interest income and other items.
Year-to-Date Earnings Summary
Edison International reported earnings were $3.03 per share for the nine-month period ending September 30, 2008, compared to $2.69 per share for the same period last year. Excluding non-core items, Edison International’s core earnings for the nine-month period in 2008 were $3.18 per share compared to $3.04 per share in the same period in 2007.
Year-to-Date Earnings Detail
SCE’s reported earnings through September 30, 2008 were $1.66 per share, a decrease of $0.14 per share compared to the same period last year. SCE’s 2008 results include a $0.15 per share charge associated with the CPUC’s performance-based ratemaking decision, and its 2007 results include income tax benefits of $0.10 per share related to an IRS settlement for the tax treatment of certain environmental remediation costs. Excluding these non-core items, SCE’s 2008 year-to-date core earnings were $1.81 per share, compared to $1.70 per share for the same period last year. This increase reflects higher operating income, lower financing costs and lower income taxes.
EMG’s reported earnings for the first nine months of 2008 were $1.47 per share compared to $0.96 per share for the same period last year. EMG’s 2007 results include a $0.45 per share charge for early debt extinguishment costs. Excluding non-core items, EMG’s year-to-date 2008 core earnings were $1.47 per share compared to $1.41 per share during the first nine months of 2007, an increase of $0.06 per share. This increase primarily reflects higher gross margin at Midwest Generation from increased generation and higher average realized prices, and higher energy trading income at EMMT. These increases were partially offset by lower income from the Big 4 projects and Homer City, lower interest income, and higher project development costs associated with EME’s growth activities.
2008 Earnings Guidance
The company’s 2008 core EPS guidance range of $3.61 - $4.01 is reaffirmed, although management now expects results to be near the middle of the range instead of the high end of the range. See the risk disclosure statement on page 4 and the presentation accompanying the company’s conference call for further information. GAAP guidance has been updated to reflect year-to-date non-core items.
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EDISON INTERNATIONAL REPORTSTHIRD QUARTER 2008 FINANCIAL RESULTS
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Reconciliation of Core Earnings Guidance to GAAP Earnings Guidance
| | | | |
Core Earnings1 (Loss) Per Share (Unaudited) | | 2008
Guidance
Effective as of
8/8/08 | | 2008
Core Guidance
Reaffirmed and
GAAP Guidance
Updated as of
11/7/08 |
SCE | | $2.18 – 2.28 | | $2.18 – 2.28 |
EMG | | 1.57 – 1.87 | | 1.57 – 1.87 |
EIX parent company and other | | (0.14) | | (0.14) |
| | | | |
EIX core earnings | | $3.61 – 4.01 | | $3.61 – 4.01 |
| | | | |
| | |
Non-Core Items | | | | |
SCE – PBR decision | | — | | (0.15) |
EMG | | — | | — |
| | | | |
Total Non-Core Items | | | | (0.15) |
| | | | |
Total GAAP earnings | | $3.61 – 4.01 | | $3.46 – 3.86 |
| | | | |
1 | Core earnings 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 issues being addressed in ongoing IRS settlement discussions, and the possible impairment of up to $48 million for NOxallowances purchased by EMG for the CAIR compliance program.
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 THIRD QUARTER 2008 FINANCIAL RESULTS
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Appendix
Use of Non-GAAP Financial Measures, Conference Call Information,
Risk Disclosure Statement and Financial Schedules
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 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 third quarter 2008 financial results at 8 a.m. (Pacific Standard 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) 429-1288. The ID# is 11800. In addition to the live simulcast, the webcast will remain posted at www.edisoninvestor.com and telephone replays will be available through Friday, Nov. 14, 2008, at the following numbers: (877) 693-4277 for callers in the United States and (402) 220-0042 for international callers. The ID# is 11801.
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.
EDISON INTERNATIONAL REPORTS THIRD QUARTER 2008 FINANCIAL RESULTS
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Summary Financial Schedules
Third Quarter GAAP Earnings Per Share
| | | | | | | | | | | | |
| | | Quarter Ended
September 30, | | | | |
Earnings (Loss) Per Share (Unaudited) | | 2008 | | | 2007 | | | Change | |
SCE | | $ | 0.72 | | | $ | 0.80 | | | $ | (0.08 | ) |
EMG | | | 0.64 | | | | 0.64 | | | | — | |
EIX parent company and other | | | (0.05 | ) | | | (0.03 | ) | | | (0.02 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings from continuing operations | | | 1.31 | | | | 1.41 | | | | (0.10 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings from discontinued operations | | | 0.02 | | | | (0.01 | ) | | | 0.03 | |
| | | | | | | | | | | | |
EIX GAAP earnings1 | | $ | 1.33 | | | $ | 1.40 | | | $ | (0.07 | ) |
| | | | | | | | | | | | |
EIX diluted earnings | | $ | 1.33 | | | $ | 1.39 | | | $ | (0.06 | ) |
| | | | | | | | | | | | |
1 | The impact of participating securities is included in EIX parent company and other and was $(0.02) per share in both the third quarter of 2008 and the third quarter of 2007. |
Third Quarter Reconciliation of Core Earnings Per Share to GAAP Earnings Per Share
| | | | | | | | | | | | |
| | | Quarter Ended
September 30, | | | | |
Earnings (Loss) Per Share (Unaudited) | | 2008 | | | 2007 | | | Change | |
Core Earnings1 | | | | | | | | | | | | |
SCE | | $ | 0.87 | | | $ | 0.80 | | | $ | 0.07 | |
EMG | | | 0.64 | | | | 0.64 | | | | — | |
EIX parent company and other | | | (0.05 | ) | | | (0.03 | ) | | | (0.02 | ) |
| | | | | | | | | | | | |
EIX core earnings | | | 1.46 | | | | 1.41 | | | | 0.05 | |
| | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
SCE – regulatory item | | | (0.15 | ) | | | — | | | | (0.15 | ) |
EMG – discontinued operations | | | 0.02 | | | | (0.01 | ) | | | 0.03 | |
| | | | | | | | | | | | |
Total non-core items | | | (0.13 | ) | | | (0.01 | ) | | | (0.12 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings1 | | $ | 1.33 | | | $ | 1.40 | | | $ | (0.07 | ) |
| | | | | | | | | | | | |
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 in both the third quarter of 2008 and the third quarter of 2007. |
Third Quarter GAAP Earnings
| | | | | | | | | | | | |
| | | Quarter Ended
September 30, | | | | |
Earnings (Loss) (in millions) (Unaudited) | | 2008 | | | 2007 | | | Change | |
SCE | | $ | 235 | | | $ | 262 | | | $ | (27 | ) |
EMG | | | 208 | | | | 207 | | | | 1 | |
EIX parent company and other | | | (10 | ) | | | (4 | ) | | | (6 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings from continuing operations | | | 433 | | | | 465 | | | | (32 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings from discontinued operations | | | 6 | | | | (4 | ) | | | 10 | |
| | | | | | | | | | | | |
EIX GAAP earnings | | $ | 439 | | | $ | 461 | | | $ | (22 | ) |
| | | | | | | | | | | | |
EDISON INTERNATIONAL REPORTS THIRD QUARTER 2008 FINANCIAL RESULTS
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Third Quarter Reconciliation of Core Earnings to GAAP Earnings
| | | | | | | | | | | | |
| | | Quarter Ended
September 30, | | | | |
Earnings (Loss) (in millions) (Unaudited) | | 2008 | | | 2007 | | | Change | |
Core Earnings1 | | | | | | | | | | | | |
SCE | | $ | 284 | | | $ | 262 | | | $ | 22 | |
EMG | | | 208 | | | | 207 | | | | 1 | |
EIX parent company and other | | | (10 | ) | | | (4 | ) | | | (6 | ) |
| | | | | | | | | | | | |
EIX core earnings | | | 482 | | | | 465 | | | | 17 | |
| | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
SCE – regulatory item | | | (49 | ) | | | — | | | | (49 | ) |
EMG – discontinued operations | | | 6 | | | | (4 | ) | | | 10 | |
| | | | | | | | | | | | |
Total non-core items | | | (43 | ) | | | (4 | ) | | | (39 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings | | $ | 439 | | | $ | 461 | | | $ | (22 | ) |
| | | | | | | | | | | | |
1 | See Use of Non-GAAP Financial Measures on page 4. |
Year-to-Date GAAP Earnings Per Share
| | | | | | | | | | | | |
| | | Year-to-date
September 30, | | | | |
Earnings (Loss) Per Share (Unaudited) | | 2008 | | | 2007 | | | Change | |
SCE | | $ | 1.66 | | | $ | 1.80 | | | $ | (0.14 | ) |
EMG | | | 1.47 | | | | 0.96 | | | | 0.51 | |
EIX parent company and other | | | (0.10 | ) | | | (0.07 | ) | | | (0.03 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings from continuing operations | | | 3.03 | | | | 2.69 | | | | 0.34 | |
| | | | | | | | | | | | |
EIX GAAP earnings1 | | $ | 3.03 | | | $ | 2.69 | | | $ | 0.34 | |
| | | | | | | | | | | | |
EIX diluted earnings | | $ | 3.02 | | | $ | 2.67 | | | $ | 0.35 | |
| | | | | | | | | | | | |
1 | The impact of participating securities is included in EIX parent company and other and was $(0.04) per share for 2008 and $(0.03) per share for 2007. |
Year-to-Date Reconciliation of Core Earnings Per Share to GAAP Earnings Per Share
| | | | | | | | | | | | |
| | | Year-to-date
September 30, | | | | |
Earnings (Loss) Per Share (Unaudited) | | 2008 | | | 2007 | | | Change | |
Core Earnings1 | | | | | | | | | | | | |
SCE | | $ | 1.81 | | | $ | 1.70 | | | $ | 0.11 | |
EMG | | | 1.47 | | | | 1.41 | | | | 0.06 | |
EIX parent company and other | | | (0.10 | ) | | | (0.07 | ) | | | (0.03 | ) |
| | | | | | | | | | | | |
EIX core earnings | | | 3.18 | | | | 3.04 | | | | 0.14 | |
| | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
SCE – regulatory/tax items | | | (0.15 | ) | | | 0.10 | | | | (0.25 | ) |
EMG – early debt retirement | | | — | | | | (0.45 | ) | | | 0.45 | |
| | | | | | | | | | | | |
Total non-core items | | | (0.15 | ) | | | (0.35 | ) | | | 0.20 | |
| | | | | | | | | | | | |
EIX GAAP earnings1 | | $ | 3.03 | | | $ | 2.69 | | | $ | 0.34 | |
| | | | | | | | | | | | |
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 $(0.04) per share for 2008 and $(0.03) per share for 2007. |
EDISON INTERNATIONAL REPORTS THIRD QUARTER 2008 FINANCIAL RESULTS
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Year-to-Date GAAP Earnings
| | | | | | | | | | | | |
| | | Year-to-date
September 30, | | | | |
Earnings (Loss) (in millions) (Unaudited) | | 2008 | | | 2007 | | | Change | |
SCE | | $ | 542 | | | $ | 587 | | | $ | (45 | ) |
EMG | | | 479 | | | | 313 | | | | 166 | |
EIX parent company and other | | | (22 | ) | | | (14 | ) | | | (8 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings from continuing operations | | | 999 | | | | 886 | | | | 113 | |
| | | | | | | | | | | | |
EIX GAAP earnings from discontinued operations | | | — | | | | 1 | | | | (1 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings | | $ | 999 | | | $ | 887 | | | $ | 112 | |
| | | | | | | | | | | | |
|
| Year-to-Date Reconciliation of Core Earnings to GAAP Earnings | |
| | |
| | | Year-to-date
September 30, | | | | |
Earnings (Loss) (in millions) (Unaudited) | | 2008 | | | 2007 | | | Change | |
Core Earnings1 | | | | | | | | | | | | |
SCE | | $ | 591 | | | $ | 556 | | | $ | 35 | |
EMG | | | 479 | | | | 461 | | | | 18 | |
EIX parent company and other | | | (22 | ) | | | (14 | ) | | | (8 | ) |
| | | | | | | | | | | | |
EIX core earnings | | | 1,048 | | | | 1,003 | | | | 45 | |
| | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
SCE – regulatory/tax items | | | (49 | ) | | | 31 | | | | (80 | ) |
EMG – early debt retirement | | | — | | | | (148 | ) | | | 148 | |
EMG – discontinued operations | | | — | | | | 1 | | | | (1 | ) |
| | | | | | | | | | | | |
Total non-core items | | | (49 | ) | | | (116 | ) | | | 67 | |
| | | | | | | | | | | | |
EIX GAAP earnings | | $ | 999 | | | $ | 887 | | | $ | 112 | |
| | | | | | | | | | | | |
1 | See Use of Non-GAAP Financial Measures on page 4. |
EDISON INTERNATIONAL REPORTS THIRD QUARTER 2008 FINANCIAL RESULTS
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Edison International
Consolidated Statements of Income
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30, | | | Nine Months Ended
September 30, | |
In millions, except per-share amounts | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | (Unaudited) | |
Electric utility | | $ | 3,284 | | | $ | 3,213 | | | $ | 8,388 | | | $ | 7,895 | |
Nonutility power generation | | | 813 | | | | 711 | | | | 2,143 | | | | 1,952 | |
Financial services and other | | | 14 | | | | 18 | | | | 45 | | | | 55 | |
| | | | | | | | | | | | | | | | |
Total operating revenue | | | 4,111 | | | | 3,942 | | | | 10,576 | | | | 9,902 | |
| | | | | | | | | | | | | | | | |
Fuel | | | 635 | | | | 502 | | | | 1,725 | | | | 1,425 | |
Purchased power | | | 1,962 | | | | 1,284 | | | | 3,111 | | | | 2,431 | |
Provisions for regulatory adjustment clauses – net | | | (737 | ) | | | (66 | ) | | | (286 | ) | | | 189 | |
Other operation and maintenance | | | 1,025 | | | | 1,013 | | | | 3,109 | | | | 2,893 | |
Depreciation, decommissioning and amortization | | | 262 | | | | 310 | | | | 893 | | | | 937 | |
(Gain) on buyout of contract and (gain)/loss on sale of assets | | | (1 | ) | | | 1 | | | | (75 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 3,146 | | | | 3,044 | | | | 8,477 | | | | 7,875 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 965 | | | | 898 | | | | 2,099 | | | | 2,027 | |
Interest and dividend income | | | 9 | | | | 40 | | | | 44 | | | | 125 | |
Equity in income from partnerships and unconsolidated subsidiaries – net | | | 31 | | | | 35 | | | | 40 | | | | 72 | |
Other nonoperating income | | | 23 | | | | 35 | | | | 78 | | | | 75 | |
Interest expense – net of amounts capitalized | | | (176 | ) | | | (191 | ) | | | (511 | ) | | | (577 | ) |
Loss on early extinguishment of debt | | | — | | | | — | | | | — | | | | (241 | ) |
Other nonoperating deductions | | | (82 | ) | | | (7 | ) | | | (115 | ) | | | (31 | ) |
| | | | | | | | | | | | | | | | |
Income from continuing operations before tax and minority interest | | | 770 | | | | 810 | | | | 1,635 | | | | 1,450 | |
Income tax expense | | | 277 | | | | 263 | | | | 521 | | | | 392 | |
Dividends on preferred and preference stock of utility not subject to mandatory redemption | | | 13 | | | | 13 | | | | 38 | | | | 38 | |
Minority interest | | | 47 | | | | 69 | | | | 77 | | | | 134 | |
| | | | | | | | | | | | | | | | |
Income from continuing operations | | | 433 | | | | 465 | | | | 999 | | | | 886 | |
Income (loss) from discontinued operations – net of tax | | | 6 | | | | (4 | ) | | | — | | | | 1 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 439 | | | $ | 461 | | | $ | 999 | | | $ | 887 | |
| | | | | | | | | | | | | | | | |
Weighted-average shares of common stock outstanding | | | 326 | | | | 326 | | | | 326 | | | | 326 | |
Basic earnings (loss) per common share: | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 1.31 | | | $ | 1.41 | | | $ | 3.03 | | | $ | 2.69 | |
Discontinued operations | | | 0.02 | | | | (0.01 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1.33 | | | $ | 1.40 | | | $ | 3.03 | | | $ | 2.69 | |
| | | | | | | | | | | | | | | | |
Weighted-average shares, including effect of dilutive securities | | | 328 | | | | 330 | | | | 329 | | | | 331 | |
Diluted earnings (loss) per common share: | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 1.31 | | | $ | 1.40 | | | $ | 3.02 | | | $ | 2.67 | |
Discontinued operations | | | 0.02 | | | | (0.01 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1.33 | | | $ | 1.39 | | | $ | 3.02 | | | $ | 2.67 | |
| | | | | | | | | | | | | | | | |
Dividends declared per common share | | $ | 0.305 | | | $ | 0.29 | | | $ | 0.915 | | | $ | 0.87 | |
EDISON INTERNATIONAL REPORTS THIRD QUARTER 2008 FINANCIAL RESULTS
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Edison International
Consolidated Balance Sheets
| | | | | | | | |
In millions | | September 30,
2008 | | | December 31,
2007 | |
| | | (Unaudited) | | | | |
ASSETS | | | | | | | | |
Cash and equivalents | | $ | 3,464 | | | $ | 1,441 | |
Short-term investments | | | 23 | | | | 81 | |
Receivables, less allowance of $33 and $34 for uncollectible accounts at respective dates | | | 1,339 | | | | 1,033 | |
Accrued unbilled revenue | | | 518 | | | | 370 | |
Fuel inventory | | | 138 | | | | 116 | |
Materials and supplies | | | 376 | | | | 316 | |
Derivative assets | | | 232 | | | | 109 | |
Restricted cash | | | 3 | | | | 3 | |
Margin and collateral deposits | | | 157 | | | | 121 | |
Regulatory assets | | | 454 | | | | 197 | |
Accumulated deferred income taxes – net | | | 190 | | | | 167 | |
Other current assets | | | 189 | | | | 290 | |
| | | | | | | | |
Total current assets | | | 7,083 | | | | 4,244 | |
| | | | | | | | |
Nonutility property – less accumulated provision for depreciation of $1,949 and $1,765 at respective dates | | | 5,257 | | | | 4,906 | |
Nuclear decommissioning trusts | | | 2,855 | | | | 3,378 | |
Investments in partnerships and unconsolidated subsidiaries | | | 260 | | | | 272 | |
Investments in leveraged leases | | | 2,460 | | | | 2,473 | |
Other investments | | | 110 | | | | 96 | |
| | | | | | | | |
Total investments and other assets | | | 10,942 | | | | 11,125 | |
| | | | | | | | |
Utility plant, at original cost: | | | | | | | | |
Transmission and distribution | | | 19,776 | | | | 18,940 | |
Generation | | | 1,820 | | | | 1,767 | |
Accumulated provision for depreciation | | | (5,526 | ) | | | (5,174 | ) |
Construction work in progress | | | 1,970 | | | | 1,693 | |
Nuclear fuel, at amortized cost | | | 246 | | | | 177 | |
| | | | | | | | |
Total utility plant | | | 18,286 | | | | 17,403 | |
| | | | | | | | |
Derivative assets | | | 206 | | | | 122 | |
Restricted cash | | | 43 | | | | 48 | |
Rent payments in excess of levelized rent expense under plant operating leases | | | 878 | | | | 716 | |
Regulatory assets | | | 2,880 | | | | 2,721 | |
Other long-term assets | | | 1,348 | | | | 1,144 | |
| | | | | | | | |
Total long-term assets | | | 5,355 | | | | 4,751 | |
| | | | | | | | |
Total assets | | $ | 41,666 | | | $ | 37,523 | |
| | | | | | | | |
EDISON INTERNATIONAL REPORTS THIRD QUARTER 2008 FINANCIAL RESULTS
Page 10
Edison International
Consolidated Balance Sheets
| | | | | | | |
In millions, except share amounts | | September 30,
2008 | | December 31,
2007 | |
| | | (Unaudited) | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | |
Short-term debt | | $ | 1,808 | | $ | 500 | |
Long-term debt due within one year | | | 173 | | | 18 | |
Accounts payable | | | 939 | | | 979 | |
Accrued taxes | | | 177 | | | 49 | |
Accrued interest | | | 211 | | | 160 | |
Counterparty collateral | | | 9 | | | 42 | |
Customer deposits | | | 227 | | | 219 | |
Book overdrafts | | | 298 | | | 212 | |
Derivative liabilities | | | 175 | | | 125 | |
Regulatory liabilities | | | 1,179 | | | 1,019 | |
Other current liabilities | | | 931 | | | 933 | |
| | | | | | | |
Total current liabilities | | | 6,127 | | | 4,256 | |
| | | | | | | |
Long-term debt | | | 10,523 | | | 9,016 | |
| | | | | | | |
Accumulated deferred income taxes – net | | | 5,521 | | | 5,196 | |
Accumulated deferred investment tax credits | | | 185 | | | 114 | |
Customer advances | | | 134 | | | 155 | |
Derivative liabilities | | | 52 | | | 101 | |
Power-purchase contracts | | | 21 | | | 22 | |
Accumulated provision for pensions and benefits | | | 1,166 | | | 1,089 | |
Asset retirement obligations | | | 2,997 | | | 2,892 | |
Regulatory liabilities | | | 2,889 | | | 3,433 | |
Other deferred credits and other long-term liabilities | | | 1,544 | | | 1,595 | |
| | | | | | | |
Total deferred credits and other liabilities | | | 14,509 | | | 14,597 | |
| | | | | | | |
Total liabilities | | | 31,159 | | | 27,869 | |
| | | | | | | |
Commitments and contingencies | | | | | | | |
Minority interest | | | 319 | | | 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) | | | 2,263 | | | 2,225 | |
Accumulated other comprehensive income (loss) | | | 54 | | | (92 | ) |
Retained earnings | | | 6,964 | | | 6,311 | |
| | | | | | | |
Total common shareholders’ equity | | | 9,281 | | | 8,444 | |
| | | | | | | |
Total liabilities and shareholders’ equity | | $ | 41,666 | | $ | 37,523 | |
| | | | | | | |
EDISON INTERNATIONAL REPORTS THIRD QUARTER 2008 FINANCIAL RESULTS
Page 11
Edison International
Consolidated Statements of Cash Flows
| | | | | | | | |
| | | Nine Months Ended
September 30, | |
In millions | | 2008 | | | 2007 | |
| | | (Unaudited) | |
Cash flows from operating activities: | | | | | | | | |
Net income | | $ | 999 | | | $ | 887 | |
Less: Income from discontinued operations | | | — | | | | 1 | |
| | | | | | | | |
Income from continuing operations | | | 999 | | | | 886 | |
Adjustments to reconcile to net cash provided by operating activities: | | | | | | | | |
Depreciation, decommissioning and amortization | | | 893 | | | | 937 | |
Other-than-temporary impairment on nuclear decommissioning trusts | | | 121 | | | | 42 | |
Other amortization | | | 80 | | | | 94 | |
Stock-based compensation | | | 25 | | | | 28 | |
Minority interest | | | 77 | | | | 134 | |
Deferred income taxes and investment tax credits | | | 69 | | | | (83 | ) |
Equity in income from partnerships and unconsolidated subsidiaries | | | (40 | ) | | | (72 | ) |
(Gain) on buyout of contract and (gain)/loss on sale of assets | | | (75 | ) | | | — | |
Income from leveraged leases | | | (39 | ) | | | (46 | ) |
Levelized rent expense | | | (162 | ) | | | (161 | ) |
Loss on early extinguishment of debt | | | — | | | | 241 | |
Regulatory assets | | | (246 | ) | | | 312 | |
Regulatory liabilities | | | 122 | | | | 312 | |
Derivative assets | | | (60 | ) | | | 3 | |
Derivative liabilities | | | 86 | | | | (105 | ) |
Other assets | | | (71 | ) | | | (25 | ) |
Other liabilities | | | (14 | ) | | | 252 | |
Margin and collateral deposits – net of collateral received | | | (70 | ) | | | 28 | |
Receivables and accrued unbilled revenue | | | (378 | ) | | | (467 | ) |
Inventory and other current assets | | | 18 | | | | (55 | ) |
Book overdrafts | | | 90 | | | | 113 | |
Accrued interest and taxes | | | 179 | | | | 366 | |
Accounts payable and other current liabilities | | | (16 | ) | | | (46 | ) |
Distributions and dividends from unconsolidated entities | | | 9 | | | | 43 | |
Operating cash flows from discontinued operations | | | — | | | | 1 | |
| | | | | | | | |
Net cash provided by operating activities | | | 1,597 | | | | 2,732 | |
| | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
Long-term debt issued | | | 2,132 | | | | 2,930 | |
Premium paid on extinguishment of debt and long-term debt issuance costs | | | (15 | ) | | | (240 | ) |
Long-term debt repaid | | | (246 | ) | | | (3,061 | ) |
Bonds repurchased | | | (212 | ) | | | — | |
Preferred stock redeemed | | | (7 | ) | | | — | |
Short-term debt financing-net | | | 1,308 | | | | — | |
Rate reduction notes repaid | | | — | | | | (178 | ) |
Shares purchased for stock-based compensation | | | (57 | ) | | | (195 | ) |
Proceeds from stock option exercises | | | 23 | | | | 77 | |
Excess tax benefits related to stock-based awards | | | 12 | | | | 39 | |
Dividends to minority shareholders | | | (78 | ) | | | (76 | ) |
Dividends paid | | | (298 | ) | | | (283 | ) |
| | | | | | | | |
Net cash provided (used) by financing activities | | $ | 2,562 | | | $ | (987 | ) |
| | | | | | | | |
EDISON INTERNATIONAL REPORTS THIRD QUARTER 2008 FINANCIAL RESULTS
Page 12
Edison International
Consolidated Statements of Cash Flows
| | | | | | | | |
| | | Nine Months Ended
September 30, | |
In millions | | 2008 | | | 2007 | |
| | | (Unaudited) | |
Cash flows from investing activities: | | | | | | | | |
Capital expenditures | | $ | (1,959 | ) | | $ | (1,979 | ) |
Purchase of interest of acquired companies | | | (11 | ) | | | (28 | ) |
Proceeds from sale of property and interests in projects | | | 113 | | | | — | |
Proceeds from nuclear decommissioning trust sales | | | 2,279 | | | | 2,866 | |
Purchases of nuclear decommissioning trust investments and other | | | (2,329 | ) | | | (2,967 | ) |
Proceeds from partnerships and unconsolidated subsidiaries, net of investment | | | 35 | | | | 17 | |
Maturities and sales of short-term investments | | | 80 | | | | 7,380 | |
Purchase of short-term investments | | | (22 | ) | | | (7,174 | ) |
Restricted cash | | | 4 | | | | 35 | |
Customer advances for construction and other investments | | | (326 | ) | | | (232 | ) |
| | | | | | | | |
Net cash used by investing activities | | | (2,136 | ) | | | (2,082 | ) |
| | | | | | | | |
Net increase (decrease) in cash and equivalents | | | 2,023 | | | | (337 | ) |
Cash and equivalents, beginning of period | | | 1,441 | | | | 1,795 | |
| | | | | | | | |
Cash and equivalents, end of period | | $ | 3,464 | | | $ | 1,458 | |
| | | | | | | | |
