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 2009 Results
ROSEMEAD, Calif., August 7, 2009 – Edison International (NYSE: EIX) today reported a second quarter 2009 GAAP loss of $0.05 per share. The loss includes a $0.81 per share charge from finalizing a global settlement with the Internal Revenue Service in May 2009 and the related termination of cross-border, leveraged leases (the “overall tax settlement”). The overall tax settlement resolves numerous federal income tax issues dating back to 1986.
Excluding the overall tax settlement charge and other non-core items, second quarter 2009 core earnings were $0.78 per share, or $0.01 per share less than the second quarter 2008. The core earnings decline is attributable to lower results at Edison Mission Group (EMG) offset largely by higher results at Southern California Edison (SCE).
“Although not reflected in our reported earnings, our second quarter core earnings are on track with our expectations for the quarter,” said Theodore F. Craver, Jr., chairman and chief executive officer of Edison International. “We established several key milestones to accomplish this year and are pleased with the progress to date such as the completion of the global tax settlement with the IRS which removes a major uncertainty for investors.”
Second Quarter Earnings Detail
SCE’s second quarter 2009 GAAP earnings from continuing operations were $1.53 per share and core earnings were $0.61 per share compared to $0.48 per share GAAP earnings from continuing operations and core earnings in the same quarter last year. The increase in core earnings was primarily due to higher operating income associated with the 2009 General Rate Case (GRC) and lower operating expenses due mainly to timing differences. SCE second quarter 2009 core earnings exclude the impact of the overall tax settlement.
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Note: GAAP earnings and losses refer to net income or losses attributable to Edison International and GAAP earnings or losses per share refer to basic earnings or losses per common share attributable to Edison International 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 Reports Second Quarter 2009 Financial Results
Page 2 of 13
EMG reported a GAAP loss from continuing operations of $1.69 per share in the second quarter of 2009 and core earnings of $0.19 per share compared to GAAP earnings from continuing operations and core earnings of $0.34 per share in the second quarter of 2008. Core earnings declined primarily from lower income at Midwest Generation and gas-fired projects driven by lower energy and natural gas prices, lower trading income and lower earnings at Edison Capital, partially offset by improved earnings at the Homer City plant. Second quarter 2009 results also include a $0.06 per share gain on the sale of Edison Capital’s Midland Cogeneration Ventures lease; a $0.07 per share gain on sale of Edison Capital’s Beaver Valley lease is included in the second quarter 2008 results. Second quarter 2009 EMG core earnings exclude the impact of the overall tax settlement and discontinued operations.
Edison International parent company and other second quarter 2009 GAAP earnings from continuing operations were $0.13 per share and core losses were $0.02 per share compared to a $0.03 per share GAAP loss from continuing operations and core loss in the second quarter of 2008. Second quarter 2009 Edison International parent company and other core results exclude the impact of the overall tax settlement.
Year-to-Date Earnings Summary
Edison International reported GAAP earnings of $0.72 per share for the six-month period ending June 30, 2009, compared to $1.70 per share for the same period last year. Excluding the impact of the overall tax settlement and discontinued operations, core earnings for the first six months of 2009 were $1.58 per share, compared to $1.72 per share in the same period in 2008.
Year-to-Date Earnings Detail
SCE’s GAAP earnings from continuing operations in the first half of 2009 were $2.17 per share and core earnings were $1.25 per share compared to $0.94 per share GAAP earnings from continuing operations and core earnings in the same period last year. This increase reflects higher operating income related to the GRC decision and lower operating expenses due mainly to timing differences. SCE’s first half 2009 core earnings exclude the impact of the overall tax settlement.
EMG’s GAAP loss from continuing operations through June 30, 2009 was $1.55 per share compared to GAAP earnings from continuing operations of $0.84 per share in the same period last year. Year-to-date core earnings were $0.37 per share compared to $0.84 per share in the same period last year. This decrease reflects lower income at Midwest Generation and gas-fired projects driven by lower energy and natural gas prices, lower trading income, lower earnings at Edison Capital and a favorable buy-out of a coal contract at Midwest Generation in 2008. Partially off-setting these decreases were improved earnings at the Homer City plant. EMG’s core earnings in the first half of 2009 exclude the impacts of the overall tax settlement together with discontinued operations.
Edison International parent company and other GAAP earnings from continuing operations in the first half of 2009 were $0.11 per share and core losses were $0.04 per share compared to a $0.06 per share GAAP loss from continuing operations and core loss in the same period last year. The core loss in the first half of 2009 excludes the impact of the overall tax settlement.
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Edison International Reports Second Quarter 2009 Financial Results
Page 3 of 13
2009 Earnings Guidance
Previously announced core earnings guidance of $2.90—$3.20 per share is reaffirmed. The company has updated its prior GAAP earnings guidance to a range of $2.18 to $2.48 per share to reflect the actual charge of $0.85 per share associated with the overall tax settlement and other expected non-core items. See the risk disclosure statement on page 4 and the presentation accompanying the company’s conference call for further information.
Reconciliation of Core Earnings Guidance to GAAP Earnings Guidance1
| | | | |
Core Earnings Per Share1 | | 2009 Earnings Guidance as of May 8, 2009 | | 2009 Earnings Guidance Updated August 7, 2009 |
EIX core earnings | | $ 2.90 - $ 3.20 | | $ 2.90 - $ 3.20 |
Non-core items | | (0.92) - (0.69) | | (0.72) |
| | | | |
EIX GAAP earnings | | $ 1.98 - $ 2.51 | | $ 2.18 - $ 2.48 |
| | | | |
| 1 | See Use of Non-GAAP Financial Measures on page 4. GAAP earnings refer to basic earnings per common share attributable to Edison International common shareholders. The expected impact of participating securities is $(0.02) per share and is included in EIX parent company and other. |
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, one of the nation’s largest electric utilities, 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 2009 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.
Earnings per share (EPS) by principal operating subsidiary is based on the principal operating subsidiary 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. EPS and core EPS by principal operating subsidiary are reconciled to GAAP EPS.
Reminder: Edison International Will Hold a Conference Call Today
Today, Edison International will hold a conference call to discuss its second quarter 2009 financial results at 8 a.m. (Pacific 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 (888) 889-2168 and the number for international callers is (773) 681-5951. The ID is “Edison”. In addition to the live simulcast, the webcast will remain posted at www.edisoninvestor.com and telephone replays will be available through August 14, 2009 at the following numbers: (866) 373-9229 for callers in the United States and (203) 369-0281 for international callers. Replay passcode is 80709.
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 2008 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 Second Quarter 2009 Financial Results
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Summary Financial Schedules
Second Quarter GAAP Earnings Per Share
| | | | | | | | | | | | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | Quarter Ended
June 30, | | | Change | |
| | 2009 | | | 2008 | | |
SCE | | $ | 1.53 | | | $ | 0.48 | | | $ | 1.05 | |
EMG | | | (1.69 | ) | | | 0.34 | | | | (2.03 | ) |
EIX parent company and other | | | 0.13 | | | | (0.03 | ) | | | 0.16 | |
| | | | | | | | | | | | |
EIX GAAP earnings (loss) from continuing operations | | | (0.03 | ) | | | 0.79 | | | | (0.82 | ) |
| | | | | | | | | | | | |
EIX GAAP loss from discontinued operations | | | (0.02 | ) | | | — | | | | (0.02 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings (loss)1 | | $ | (0.05 | ) | | $ | 0.79 | | | $ | (0.84 | ) |
| | | | | | | | | | | | |
EIX diluted earnings (loss) | | $ | (0.05 | ) | | $ | 0.79 | | | $ | (0.84 | ) |
| | | | | | | | | | | | |
| 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 the quarter ended June 30, 2009 and $(0.01) per share for the quarter ended June 30, 2008. |
Second Quarter Reconciliation of Core Earnings Per Share to GAAP Earnings Per Share
| | | | | | | | | | | | | | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | Quarter Ended
June 30, | | | Change | |
| | 2009 | | | 2008 | | |
Core Earnings1 | | | | | | | | | | | | |
SCE | | $ | 0.61 | | | $ | 0.48 | | | $ | 0.13 | |
EMG | | | 0.19 | | | | 0.34 | | | | (0.15 | ) |
EIX parent company and other | | | (0.02 | ) | | | (0.03 | ) | | | 0.01 | |
| | | | | | | | | | | | |
EIX core earnings | | | 0.78 | | | | 0.79 | | | | (0.01 | ) |
| | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
Overall tax settlement | | | (0.81 | ) | | | — | | | | (0.81 | ) |
SCE | | $ 0.92 | | | | | | | | | | | | |
EMG | | (1.88) | | | | | | | | | | | | |
EIX parent company and other | | 0.15 | | | | | | | | | | | | |
EMG – discontinued operations | | | (0.02 | ) | | | — | | | | (0.02 | ) |
| | | | | | | | | | | | | | |
Total non-core items | | | (0.83 | ) | | | — | | | | (0.83 | ) |
| | | | | | | | | | | | | | |
EIX GAAP earnings (loss)1 | | $ | (0.05 | ) | | $ | 0.79 | | | $ | (0.84 | ) |
| | | | | | | | | | | | | | |
| 1 | See Use of Non-GAAP Financial Measures on page 4. The impact of participating securities on the per share amounts is included in EIX parent company and other and was zero per share for the quarter ended June 30, 2009 and $(0.01) per share for the quarter ended June 30, 2008. |
Edison International Reports Second Quarter 2009 Financial Results
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Second Quarter GAAP Earnings
| | | | | | | | | | | | |
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | | Quarter Ended
June 30, | | | Change | |
| | 2009 | | | 2008 | | |
SCE | | $ | 499 | | | $ | 157 | | | $ | 342 | |
EMG | | | (551 | ) | | | 112 | | | | (663 | ) |
EIX parent company and other | | | 43 | | | | (7 | ) | | | 50 | |
| | | | | | | | | | | | |
EIX GAAP earnings (loss) from continuing operations | | | (9 | ) | | | 262 | | | | (271 | ) |
EIX GAAP loss from discontinued operations | | | (7 | ) | | | (1 | ) | | | (6 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings (loss) | | $ | (16 | ) | | $ | 261 | | | $ | (277 | ) |
| | | | | | | | | | | | |
Second Quarter Reconciliation of Core Earnings to GAAP Earnings
| | | | | | | | | | | | | | |
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | | Quarter Ended
June 30, | | | Change | |
| | 2009 | | | 2008 | | |
Core Earnings1 | | | | | | | | | | | | |
SCE | | $ | 199 | | | $ | 157 | | | $ | 42 | |
EMG | | | 61 | | | | 112 | | | | (51 | ) |
EIX parent company and other | | | (7 | ) | | | (7 | ) | | | — | |
| | | | | | | | | | | | | | |
EIX core earnings | | | 253 | | | | 262 | | | | (9 | ) |
| | | | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
Overall tax settlement | | | (262 | ) | | | — | | | | (262 | ) |
SCE | | $ 300 | | | | | | | | | | | | |
EMG | | (612) | | | | | | | | | | | | |
EIX parent company and other | | 50 | | | | | | | | | | | | |
EMG – discontinued operations | | | (7 | ) | | | (1 | ) | | | (6 | ) |
| | | | | | | | | | | | | | |
Total non-core items | | | (269 | ) | | | (1 | ) | | | (268 | ) |
| | | | | | | | | | | | | | |
EIX GAAP earnings (loss) | | $ | (16 | ) | | $ | 261 | | | $ | (277 | ) |
| | | | | | | | | | | | | | |
| 1 | See Use of Non-GAAP Financial Measures on page 4. |
Edison International Reports Second Quarter 2009 Financial Results
Page 7 of 13
Year-to-Date GAAP Earnings Per Share
| | | | | | | | | | | | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | Year-to-Date
June 30, | | | Change | |
| | 2009 | | | 2008 | | |
SCE | | $ | 2.17 | | | $ | 0.94 | | | $ | 1.23 | |
EMG | | | (1.55 | ) | | | 0.84 | | | | (2.39 | ) |
EIX parent company and other | | | 0.11 | | | | (0.06 | ) | | | 0.17 | |
| | | | | | | | | | | | |
EIX GAAP earnings from continuing operations | | | 0.73 | | | | 1.72 | | | | (0.99 | ) |
| | | | | | | | | | | | |
EIX GAAP loss from discontinued operations | | | (0.01 | ) | | | (0.02 | ) | | | 0.01 | |
| | | | | | | | | | | | |
EIX GAAP earnings1 | | $ | 0.72 | | | $ | 1.70 | | | $ | (0.98 | ) |
| | | | | | | | | | | | |
EIX diluted earnings | | $ | 0.72 | | | $ | 1.69 | | | $ | (0.97 | ) |
| | | | | | | | | | | | |
| 1 | The impact of participating securities is included in EIX parent company and other and was zero per share for the year-to-date ended June 30, 2009 and $(0.02) per share for the year-to-date ended June 30, 2008. |
Year-to-Date Reconciliation of Core Earnings Per Share to GAAP Earnings
| | | | | | | | | | | | | | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | Year-to-date
June 30, | | | Change | |
| | 2009 | | | 2008 | | |
Core Earnings1 | | | | | | | | | | | | | | |
SCE | | $ | 1.25 | | | $ | 0.94 | | | $ | 0.31 | |
EMG | | | 0.37 | | | | 0.84 | | | | (0.47 | ) |
EIX parent company and other | | | (0.04 | ) | | | (0.06 | ) | | | 0.02 | |
| | | | | | | | | | | | | | |
EIX core earnings | | | 1.58 | | | | 1.72 | | | | (0.14 | ) |
| | | | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | | | |
Overall tax settlement | | | (0.85 | ) | | | — | | | | (0.85 | ) |
SCE | | $ 0.92 | | | | | | | | | | | | |
EMG | | (1.92) | | | | | | | | | | | | |
EIX parent company and other | | 0.15 | | | | | | | | | | | | |
EMG – discontinued operations | | | (0.01 | ) | | | (0.02 | ) | | | 0.01 | |
| | | | | | | | | | | | | | |
Total non-core items | | | (0.86 | ) | | | (0.02 | ) | | | (0.84 | ) |
| | | | | | | | | | | | | | |
EIX GAAP earnings1 | | $ | 0.72 | | | $ | 1.70 | | | $ | (0.98 | ) |
| | | | | | | | | | | | | | |
| 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 zero per share for the year-to-date ended June 30, 2009 and $(0.02) per share for the year-to-date ended June 30, 2008. |
Edison International Reports Second Quarter 2009 Financial Results
Page 8 of 13
Year-to-Date GAAP Earnings
| | | | | | | | | | | | |
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | | Year-to-Date
June 30, | | | Change | |
| �� | 2009 | | | 2008 | | |
SCE | | $ | 707 | | | $ | 307 | | | $ | 400 | |
EMG | | | (506 | ) | | | 271 | | | | (777 | ) |
EIX parent company and other | | | 37 | | | | (13 | ) | | | 50 | |
| | | | | | | | | | | | |
EIX GAAP earnings from continuing operations | | | 238 | | | | 565 | | | | (327 | ) |
EIX GAAP loss from discontinued operations | | | (4 | ) | | | (6 | ) | | | 2 | |
| | | | | | | | | | | | |
EIX GAAP earnings | | $ | 234 | | | $ | 559 | | | $ | (325 | ) |
| | | | | | | | | | | | |
Year-to-Date Reconciliation of Core Earnings to GAAP Earnings
| | | | | | | | | | | | | | |
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | | Year-to-Date
June 30, | | | Change | |
| | 2009 | | | 2008 | | |
Core Earnings1 | | | | | | | | | | | | | | |
SCE | | $ | 407 | | | $ | 307 | | | $ | 100 | |
EMG | | | 118 | | | | 271 | | | | (153 | ) |
EIX parent company and other | | | (13 | ) | | | (13 | ) | | | — | |
| | | | | | | | | | | | | | |
EIX core earnings | | | 512 | | | | 565 | | | | (53 | ) |
| | | | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | | | |
Overall tax settlement | | | (274 | ) | | | — | | | | (274 | ) |
SCE | | $ 300 | | | | | | | | | | | | |
EMG | | (624) | | | | | | | | | | | | |
EIX parent company and other | | 50 | | | | | | | | | | | | |
EMG – discontinued operations | | | (4 | ) | | | (6 | ) | | | 2 | |
| | | | | | | | | | | | | | |
Total non-core items | | | (278 | ) | | | (6 | ) | | | (272 | ) |
| | | | | | | | | | | | | | |
EIX GAAP earnings | | $ | 234 | | | $ | 559 | | | $ | (325 | ) |
| | | | | | | | | | | | | | |
| 1 | See Use of Non-GAAP Financial Measures on page 4. |
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Edison International Reports Second Quarter 2009 Financial Results
Page 9 of 13
Edison International
Consolidated Statements of Income (Loss)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
June 30, | | | Six Months Ended
June 30, | |
In millions, except per-share amounts | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | (Unaudited) | |
Electric utility | | $ | 2,272 | | | $ | 2,849 | | | $ | 4,460 | | | $ | 5,230 | |
Competitive power generation | | | 557 | | | | 612 | | | | 1,168 | | | | 1,330 | |
Financial services and other | | | 5 | | | | 16 | | | | 18 | | | | 31 | |
| | | | | | | | | | | | | | | | |
Total operating revenue | | | 2,834 | | | | 3,477 | | | | 5,646 | | | | 6,591 | |
| | | | | | | | | | | | | | | | |
Fuel | | | 328 | | | | 554 | | | | 715 | | | | 1,090 | |
Purchased power | | | 583 | | | | 1,026 | | | | 1,124 | | | | 1,721 | |
Other operation and maintenance | | | 1,074 | | | | 1,113 | | | | 2,043 | | | | 2,076 | |
Depreciation, decommissioning and amortization | | | 347 | | | | 334 | | | | 688 | | | | 645 | |
Lease terminations and other | | | 866 | | | | (56 | ) | | | 888 | | | | (73 | ) |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 3,198 | | | | 2,971 | | | | 5,458 | | | | 5,459 | |
| | | | | | | | | | | | | | | | |
Operating income (loss) | | | (364 | ) | | | 506 | | | | 188 | | | | 1,132 | |
Interest and dividend income | | | 17 | | | | 22 | | | | 27 | | | | 36 | |
Equity in income (loss) from partnerships and unconsolidated subsidiaries – net | | | 6 | | | | 9 | | | | (2 | ) | | | 9 | |
Other nonoperating income | | | 30 | | | | 23 | | | | 58 | | | | 49 | |
Interest expense – net of amounts capitalized | | | (182 | ) | | | (165 | ) | | | (369 | ) | | | (336 | ) |
Other nonoperating deductions | | | (17 | ) | | | (14 | ) | | | (25 | ) | | | (26 | ) |
| | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income taxes | | | (510 | ) | | | 381 | | | | (123 | ) | | | 864 | |
Income tax expense (benefit) | | | (524 | ) | | | 83 | | | | (402 | ) | | | 244 | |
| | | | | | | | | | | | | | | | |
Income from continuing operations | | | 14 | | | | 298 | | | | 279 | | | | 620 | |
Loss from discontinued operations – net of tax | | | (7 | ) | | | (1 | ) | | | (4 | ) | | | (6 | ) |
| | | | | | | | | | | | | | | | |
Net income | | | 7 | | | | 297 | | | | 275 | | | | 614 | |
Less: Net income attributable to noncontrolling interests | | | 23 | | | | 36 | | | | 41 | | | | 55 | |
| | | | | | | | | | | | | | | | |
Net income (loss) attributable to Edison International | | $ | (16 | ) | | $ | 261 | | | $ | 234 | | | $ | 559 | |
| | | | | | | | | | | | | | | | |
Amounts attributable to Edison International common shareholders: | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations, net of tax | | $ | (9 | ) | | $ | 262 | | | $ | 238 | | | $ | 565 | |
Loss from discontinued operations, net of tax | | | (7 | ) | | | (1 | ) | | | (4 | ) | | | (6 | ) |
| | | | | | | | | | | | | | | | |
Net income (loss) attributable to Edison International common shareholders | | $ | (16 | ) | | $ | 261 | | | $ | 234 | | | $ | 559 | |
| | | | | | | | | | | | | | | | |
Weighted-average shares of common stock outstanding | | | 326 | | | | 326 | | | | 326 | | | | 326 | |
Basic earnings (loss) per common share attributable to Edison International common shareholders: | | | | | | | | | | | | | | | | |
Continuing operations | | $ | (0.03 | ) | | $ | 0.79 | | | $ | 0.73 | | | $ | 1.72 | |
Discontinued operations | | | (0.02 | ) | | | — | | | | (0.01 | ) | | | (0.02 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (0.05 | ) | | $ | 0.79 | | | $ | 0.72 | | | $ | 1.70 | |
| | | | | | | | | | | | | | | | |
Weighted-average shares, including effect of dilutive securities | | | 327 | | | | 329 | | | | 327 | | | | 330 | |
Diluted earnings (loss) per common share attributable to Edison International common shareholders: | | | | | | | | | | | | | | | | |
Continuing operations | | $ | (0.03 | ) | | $ | 0.79 | | | $ | 0.73 | | | $ | 1.71 | |
Discontinued operations | | | (0.02 | ) | | | — | | | | (0.01 | ) | | | (0.02 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | (0.05 | ) | | $ | 0.79 | | | $ | 0.72 | | | $ | 1.69 | |
| | | | | | | | | | | | | | | | |
Dividends declared per common share | | $ | 0.31 | | | $ | 0.305 | | | $ | 0.62 | | | $ | 0.61 | |
Edison International Reports Second Quarter 2009 Financial Results
Page 10 of 13
Edison International
Consolidated Balance Sheets
| | | | | | | | |
In millions | | June 30,
2009 | | | December 31,
2008 | |
| | | (Unaudited) | |
ASSETS | | | | | | | | |
Cash and equivalents | | $ | 2,701 | | | $ | 3,916 | |
Short-term investments | | | 5 | | | | 7 | |
Receivables, less allowances of $41 and $39 for uncollectible accounts at respective dates | | | 946 | | | | 1,006 | |
Accrued unbilled revenue | | | 505 | | | | 328 | |
Inventory | | | 545 | | | | 553 | |
Derivative assets | | | 377 | | | | 327 | |
Restricted cash | | | 188 | | | | 3 | |
Margin and collateral deposits | | | 133 | | | | 105 | |
Regulatory assets | | | 334 | | | | 605 | |
Deferred income taxes – net | | | — | | | | 104 | |
Other current assets | | | 189 | | | | 399 | |
| | | | | | | | |
Total current assets | | | 5,923 | | | | 7,353 | |
| | | | | | | | |
Nonutility property – less accumulated depreciation of $2,161 and $2,019 at respective dates | | | 5,352 | | | | 5,374 | |
Nuclear decommissioning trusts | | | 2,673 | | | | 2,524 | |
Investments in partnerships and unconsolidated subsidiaries | | | 207 | | | | 229 | |
Investments in leveraged leases | | | 166 | | | | 2,467 | |
Other investments | | | 99 | | | | 89 | |
| | | | | | | | |
Total investments and other assets | | | 8,497 | | | | 10,683 | |
| | | | | | | | |
Utility plant, at original cost: | | | | | | | | |
Transmission and distribution | | | 20,863 | | | | 20,006 | |
Generation | | | 1,900 | | | | 1,819 | |
Accumulated depreciation | | | (5,573 | ) | | | (5,570 | ) |
Construction work in progress | | | 2,308 | | | | 2,454 | |
Nuclear fuel, at amortized cost | | | 273 | | | | 260 | |
| | | | | | | | |
Total utility plant | | | 19,771 | | | | 18,969 | |
| | | | | | | | |
Derivative assets | | | 632 | | | | 244 | |
Restricted cash | | | 48 | | | | 43 | |
Rent payments in excess of levelized rent expense under plant operating leases | | | 990 | | | | 878 | |
Regulatory assets | | | 4,852 | | | | 5,414 | |
Other long-term assets | | | 1,168 | | | | 1,031 | |
| | | | | | | | |
Total long-term assets | | | 7,690 | | | | 7,610 | |
| | | | | | | | |
Total assets | | $ | 41,881 | | | $ | 44,615 | |
| | | | | | | | |
Edison International Reports Second Quarter 2009 Financial Results
Page 11 of 13
Edison International
Consolidated Balance Sheets
| | | | | | |
In millions, except share amounts | | June 30,
2009 | | December 31,
2008 |
| | | (Unaudited) |
LIABILITIES AND EQUITY | | | | | | |
Short-term debt | | $ | 77 | | $ | 2,143 |
Long-term debt due within one year | | | 382 | | | 174 |
Accounts payable | | | 833 | | | 1,031 |
Accrued taxes | | | 212 | | | 590 |
Accrued interest | | | 219 | | | 187 |
Customer deposits | | | 239 | | | 228 |
Book overdrafts | | | 177 | | | 224 |
Derivative liabilities | | | 140 | | | 178 |
Regulatory liabilities | | | 948 | | | 1,111 |
Deferred income taxes – net | | | 132 | | | — |
Other current liabilities | | | 721 | | | 831 |
| | | | | | |
Total current liabilities | | | 4,080 | | | 6,697 |
| | | | | | |
Long-term debt | | | 11,276 | | | 10,950 |
| | | | | | |
Deferred income taxes – net | | | 4,269 | | | 5,717 |
Deferred investment tax credits | | | 198 | | | 109 |
Customer advances | | | 126 | | | 137 |
Derivative liabilities | | | 556 | | | 776 |
Pensions and benefits | | | 2,952 | | | 2,860 |
Asset retirement obligations | | | 3,131 | | | 3,042 |
Regulatory liabilities | | | 2,635 | | | 2,481 |
Other deferred credits and other long-term liabilities | | | 1,886 | | | 1,137 |
| | | | | | |
Total deferred credits and other liabilities | | | 15,753 | | | 16,259 |
| | | | | | |
Total liabilities | | | 31,109 | | | 33,906 |
| | | | | | |
Commitments and contingencies | | | | | | |
Common stock, no par value (325,811,206 shares outstanding at each date) | | | 2,285 | | | 2,272 |
Accumulated other comprehensive income | | | 204 | | | 167 |
Retained earnings | | | 7,101 | | | 7,078 |
| | | | | | |
Total Edison International’s common shareholders’ equity | | | 9,590 | | | 9,517 |
Noncontrolling interests – other | | | 275 | | | 285 |
Preferred and preference stock of utility not subject to mandatory redemption | | | 907 | | | 907 |
| | | | | | |
Total equity | | | 10,772 | | | 10,709 |
| | | | | | |
Total liabilities and equity | | $ | 41,881 | | $ | 44,615 |
| | | | | | |
Edison International Reports Second Quarter 2009 Financial Results
Page 12 of 13
Edison International
Consolidated Statements of Cash Flows
| | | | | | | | |
| | | Six Months Ended
June 30, | |
In millions | | 2009 | | | 2008 | |
| | | (Unaudited) | |
Cash flows from operating activities: | | | | | | | | |
Net income | | $ | 275 | | | $ | 614 | |
Loss from discontinued operations | | | 4 | | | | 6 | |
| | | | | | | | |
Income from continuing operations | | | 279 | | | | 620 | |
Adjustments to reconcile to net cash provided by operating activities: | | | | | | | | |
Depreciation, decommissioning and amortization | | | 688 | | | | 645 | |
Regulatory impacts of net nuclear decommissioning trust earnings (reflected in accumulated depreciation) | | | 86 | | | | 57 | |
Other amortization | | | 58 | | | | 51 | |
Lease terminations and other | | | 888 | | | | (73 | ) |
Stock-based compensation | | | 11 | | | | 16 | |
Equity in (income) loss from partnerships and unconsolidated subsidiaries – net | | | 2 | | | | (9 | ) |
Distributions and dividends from unconsolidated entities | | | 5 | | | | 8 | |
Deferred income taxes and investment tax credits | | | (1,315 | ) | | | 26 | |
Levelized rent expense | | | (113 | ) | | | (113 | ) |
Income from leveraged leases | | | (12 | ) | | | (27 | ) |
Long-term regulatory assets and liabilities – net | | | 654 | | | | 184 | |
Long-term derivative assets and liabilities – net | | | (673 | ) | | | (174 | ) |
Other assets | | | (106 | ) | | | (52 | ) |
Other liabilities | | | 804 | | | | 51 | |
Changes in working capital: | | | | | | | | |
Margin and collateral deposits – net of collateral received | | | (29 | ) | | | (83 | ) |
Receivables and accrued unbilled revenue | | | (112 | ) | | | (237 | ) |
Inventory | | | 9 | | | | (49 | ) |
Restricted cash | | | (188 | ) | | | — | |
Other current assets | | | 212 | | | | 12 | |
Book overdrafts | | | (42 | ) | | | 112 | |
Accrued taxes | | | (377 | ) | | | 68 | |
Current regulatory assets and liabilities – net | | | 107 | | | | 197 | |
Current derivative assets and liabilities – net | | | 45 | | | | (521 | ) |
Accounts payable and other current liabilities | | | 6 | | | | 30 | |
Operating cash flows from discontinued operations | | | (4 | ) | | | (6 | ) |
| | | | | | | | |
Net cash provided by operating activities | | | 883 | | | | 733 | |
| | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
Long-term debt issued | | | 939 | | | | 784 | |
Long-term debt issuance costs | | | (24 | ) | | | (10 | ) |
Long-term debt repaid | | | (194 | ) | | | (134 | ) |
Bonds repurchased | | | (219 | ) | | | (212 | ) |
Preferred stock redeemed | | | — | | | | (7 | ) |
Short-term debt financing – net | | | (2,066 | ) | | | 300 | |
Cash contributions from noncontrolling interests | | | 1 | | | | — | |
Stock-based compensation – net | | | — | | | | (20 | ) |
Dividends and distributions to noncontrolling interests | | | (55 | ) | | | (58 | ) |
Dividends paid | | | (202 | ) | | | (199 | ) |
| | | | | | | | |
Net cash provided (used) by financing activities | | $ | (1,820 | ) | | $ | 444 | |
| | | | | | | | |
Edison International Reports Second Quarter 2009 Financial Results
Page 13 of 13
Edison International
Consolidated Statements of Cash Flows
| | | | | | | | |
| | | Six Months Ended
June 30, | |
In millions | | 2009 | | | 2008 | |
| | | (Unaudited) | |
Cash flows from investing activities: | | | | | | | | |
Capital expenditures | | $ | (1,540 | ) | | $ | (1,460 | ) |
Purchase of interest in acquired companies | | | (7 | ) | | | (7 | ) |
Proceeds from termination of leases | | | 1,420 | | | | — | |
Proceeds from sale of property and interests in projects | | | — | | | | 112 | |
Proceeds from nuclear decommissioning trust sales | | | 1,310 | | | | 1,501 | |
Purchases of nuclear decommissioning trust investments and other | | | (1,415 | ) | | | (1,560 | ) |
Proceeds from partnerships and unconsolidated subsidiaries, net of investment | | | 12 | | | | 30 | |
Maturities and sales of short-term investments | | | 3 | | | | 70 | |
Purchase of short-term investments | | | (1 | ) | | | (2 | ) |
Customer advances for construction and other investments | | | (60 | ) | | | (232 | ) |
| | | | | | | | |
Net cash used by investing activities | | | (278 | ) | | | (1,548 | ) |
| | | | | | | | |
Net decrease in cash and equivalents | | | (1,215 | ) | | | (371 | ) |
Cash and equivalents, beginning of period | | | 3,916 | | | | 1,441 | |
| | | | | | | | |
Cash and equivalents, end of period | | $ | 2,701 | | | $ | 1,070 | |
| | | | | | | | |
