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 2009 Results
ROSEMEAD, Calif., Nov. 6, 2009 – Edison International (NYSE: EIX) today reported third quarter 2009 GAAP earnings of $1.23 per share, compared to $1.33 per share in the same quarter last year. Third quarter 2009 core earnings were $1.09 per share compared to $1.46 per share in the third quarter 2008. The decline is largely attributable to lower earnings at Edison Mission Group (EMG), partially offset by higher operating results at Southern California Edison (SCE). Core earnings exclude discontinued operations and other non-core items as discussed below.
“Edison International is on track to meet its financial objectives laid out for investors at the beginning of the year. Our strong focus on execution in managing our operations helped us to achieve a good quarter,” said Theodore F. Craver, Jr., chairman and chief executive officer of Edison International.
Third Quarter Earnings Detail
SCE’s third quarter 2009 GAAP earnings were $1.06 per share compared to $0.72 per share in the third quarter 2008. Core earnings were $0.92 per share compared to $0.87 per share in the same quarter last year. This increase was primarily due to higher operating income associated with the utility’s 2009 General Rate Case (GRC) and lower nonoperating expenses, partially offset by higher income tax expense. SCE also recorded a non-core benefit in the third quarter 2009 of $0.14 per share to reflect the non-cash accounting benefit from the final regulatory approval to transfer its Mountainview power plant to utility rate base. SCE recorded a $0.15 per share non-core charge in the third quarter 2008 resulting from the California Public Utilities Commission (CPUC) performance-based ratemaking decision.
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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 Third Quarter 2009 Financial Results
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EMG’s third quarter 2009 GAAP earnings were $0.19 per share compared to $0.66 per share in the third quarter 2008. Core earnings were $0.19 per share compared to $0.64 per share in the same quarter last year. Core earnings declined primarily from lower income at its coal- and gas-fired projects driven by lower energy prices and from lower trading income. Core results for the 2008 period included a $0.05 per share charge related to power contracts with Lehman Brothers and excluded $0.02 per share from discontinued operations.
Edison International parent company and other reported a third quarter 2009 loss of $0.02 per share compared to a $0.05 per share loss in the third quarter 2008.
Year-to-Date Earnings Summary
Edison International reported GAAP earnings of $1.94 per share for the nine-month period ending September 30, 2009, compared to $3.03 per share for the same period last year. Core earnings for the first nine months of 2009 were $2.66 per share compared to $3.18 per share for the same period in 2008. Non-core items included an $0.85 per share charge from the global tax settlement with the Internal Revenue Service and the associated termination of Edison Capital’s cross-border, leveraged leases, SCE’s third quarter non-core items discussed above and discontinued operations at EMG.
Year-to-Date Earnings Detail
SCE’s GAAP earnings through September 30, 2009 were $3.23 per share compared to $1.66 per share in the same period last year. Core earnings for the first nine months of 2009 were $2.17 per share compared to $1.81 per share for the same period in 2008. The increase in core earnings reflects higher operating income related to the GRC decision and lower nonoperating expenses, partially offset by higher income tax expense. SCE’s year-to-date core earnings exclude the impact of the global tax settlement, the impact from the transfer of the Mountainview power plant to utility rate base in 2009 and the CPUC’s performance-based ratemaking decision in 2008.
EMG’s GAAP loss through September 30, 2009 was $1.38 per share compared to GAAP earnings of $1.47 per share in the same period last year. Year-to-date core earnings for EMG were $0.55 per share compared to $1.47 per share in the same period last year. This decrease reflects lower income at its coal- and gas-fired projects driven by lower energy prices as well as lower trading income, lower earnings at Edison Capital and the favorable buy-out of a coal contract in 2008. EMG’s year-to-date core earnings exclude the impacts of the global tax settlement together with discontinued operations.
Edison International parent company and other reported GAAP earnings through September 30, 2009 of $0.09 per share, compared to a loss of $0.10 per share in the same period last year. GAAP earnings include a $0.15 per share benefit in the first half of 2009 related to the global tax settlement.
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Edison International Reports Third Quarter 2009 Financial Results
Page 3 of 13
2009 Earnings Guidance
The company narrowed its 2009 earnings guidance range to $2.23 to $2.43 per share on a GAAP basis and $2.95 to $3.15 per share on a core basis. 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 August 7, 2009 | | 2009 Earnings Guidance as of November 6, 2009 |
EIX core earnings | | | | | | $2.90 - $3.20 | | $2.95 - $3.15 |
Non-core items: | | | | | | | | |
Global tax settlement: | | | | (0.85) | | | | |
SCE | | $0.92 | | | | | | |
EMG | | (1.92) | | | | | | |
EIX parent company and other | | 0.15 | | | | | | |
SCE – regulatory item | | | | 0.14 | | | | |
EMG – Discontinued Operations | | | | (0.01) | | | | |
Total Non-Core Items | | | | | | (0.72) | | (0.72) |
| | | | | | | | |
EIX GAAP earnings | | | | | | $2.18 - $2.48 | | $2.23 - $2.43 |
| | | | | | | | |
Midpoint of 2009 core guidance by business element: | | | | | | | | |
SCE | | | | | | $2.49 | | $2.55 |
EMG | | | | | | 0.70 | | 0.60 |
EIX parent company and other | | | | | | (0.14) | | (0.10) |
| | | | | | | | |
Total | | | | | | $3.05 | | $3.05 |
| | | | | | | | |
| 1 | See Use of Non-GAAP Financial Measures on page 4. GAAP earnings per share 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 Third 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. EIX core 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 third quarter 2009 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 (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 Nov. 13, 2009 at the following numbers: (800) 283-6499 for callers in the United States and (402) 220-9734 for international callers. The replay passcode is 80709.
Risk Disclosure Statement
Statements contained in this news release about future performance, including, without limitation, earnings guidance, 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 Third Quarter 2009 Financial Results
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Summary Financial Schedules
Third Quarter GAAP Earnings Per Share
| | | | | | | | | | | | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | Quarter Ended
September 30, | | | Change | |
| | 2009 | | | 2008 | | |
SCE | | $ | 1.06 | | | $ | 0.72 | | | $ | 0.34 | |
EMG | | | 0.19 | | | | 0.64 | | | | (0.45 | ) |
EIX parent company and other | | | (0.02 | ) | | | (0.05 | ) | | | 0.03 | |
| | | | | | | | | | | | |
EIX earnings from continuing operations | | | 1.23 | | | | 1.31 | | | | (0.08 | ) |
| | | | | | | | | | | | |
EIX earnings from discontinued operations | | | — | | | | 0.02 | | | | (0.02 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings1 | | $ | 1.23 | | | $ | 1.33 | | | $ | (0.10 | ) |
| | | | | | | | | | | | |
EIX diluted earnings | | $ | 1.22 | | | $ | 1.33 | | | $ | (0.11 | ) |
| | | | | | | | | | | | |
| 1 | The impact of participating securities on the per share amounts is included in EIX parent company and other and was $(0.01) per share for the quarter ended September 30, 2009 and $(0.02) per share for the quarter ended September 30, 2008. |
Third Quarter Reconciliation of Core Earnings Per Share to GAAP Earnings Per Share
| | | | | | | | | | | | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | Quarter Ended
September 30, | | | Change | |
| | 2009 | | | 2008 | | |
Core Earnings1 | | | | | | | | | | | | |
SCE | | $ | 0.92 | | | $ | 0.87 | | | $ | 0.05 | |
EMG | | | 0.19 | | | | 0.64 | | | | (0.45 | ) |
EIX parent company and other | | | (0.02 | ) | | | (0.05 | ) | | | 0.03 | |
| | | | | | | | | | | | |
EIX core earnings | | | 1.09 | | | | 1.46 | | | | (0.37 | ) |
| | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
SCE – regulatory items | | | 0.14 | | | | (0.15 | ) | | | 0.29 | |
EMG – discontinued operations | | | — | | | | 0.02 | | | | (0.02 | ) |
| | | | | | | | | | | | |
Total non-core items | | | 0.14 | | | | (0.13 | ) | | | 0.27 | |
| | | | | | | | | | | | |
EIX GAAP earnings1 | | $ | 1.23 | | | $ | 1.33 | | | $ | (0.10 | ) |
| | | | | | | | | | | | |
| 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 $(0.01) per share for the quarter ended September 30, 2009 and $(0.02) per share for the quarter ended September 30, 2008. |
Edison International Reports Third Quarter 2009 Financial Results
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Third Quarter GAAP Earnings
| | | | | | | | | | | | |
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | | Quarter Ended
September 30, | | | | |
| | 2009 | | | 2008 | | | Change | |
SCE | | $ | 346 | | | $ | 235 | | | $ | 111 | |
EMG | | | 61 | | | | 208 | | | | (147 | ) |
EIX parent company and other | | | (3 | ) | | | (10 | ) | | | 7 | |
| | | | | | | | | | | | |
EIX earnings from continuing operations | | | 404 | | | | 433 | | | | (29 | ) |
EIX earnings from discontinued operations | | | (1 | ) | | | 6 | | | | (7 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings | | $ | 403 | | | $ | 439 | | | $ | (36 | ) |
| | | | | | | | | | | | |
Third Quarter Reconciliation of Core Earnings to GAAP Earnings
| | | | | | | | | | | | |
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | | Quarter Ended
September 30, | | | | |
| | 2009 | | | 2008 | | | Change | |
Core Earnings1 | | | | | | | | | | | | |
SCE | | $ | 300 | | | $ | 284 | | | $ | 16 | |
EMG | | | 61 | | | | 208 | | | | (147 | ) |
EIX parent company and other | | | (3 | ) | | | (10 | ) | | | 7 | |
| | | | | | | | | | | | |
EIX core earnings | | | 358 | | | | 482 | | | | (124 | ) |
| | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | |
SCE – regulatory items | | | 46 | | | | (49 | ) | | | 95 | |
EMG – discontinued operations | | | (1 | ) | | | 6 | | | | (7 | ) |
| | | | | | | | | | | | |
Total non-core items | | | 45 | | | | (43 | ) | | | 88 | |
| | | | | | | | | | | | |
EIX GAAP earnings | | $ | 403 | | | $ | 439 | | | $ | (36 | ) |
| | | | | | | | | | | | |
| 1 | See Use of Non-GAAP Financial Measures on page 4. |
Edison International Reports Third Quarter 2009 Financial Results
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Year-to-Date GAAP Earnings Per Share
| | | | | | | | | | | | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | Year-to-Date
September 30, | | | | |
| | 2009 | | | 2008 | | | Change | |
SCE | | $ | 3.23 | | | $ | 1.66 | | | $ | 1.57 | |
EMG | | | (1.37 | ) | | | 1.47 | | | | (2.84 | ) |
EIX parent company and other | | | 0.09 | | | | (0.10 | ) | | | 0.19 | |
| | | | | | | | | | | | |
EIX earnings from continuing operations | | | 1.95 | | | | 3.03 | | | | (1.08 | ) |
| | | | | | | | | | | | |
EIX loss from discontinued operations | | | (0.01 | ) | | | — | | | | (0.01 | ) |
| | | | | | | | | | | | |
EIX GAAP earnings1 | | $ | 1.94 | | | $ | 3.03 | | | $ | (1.09 | ) |
| | | | | | | | | | | | |
EIX diluted earnings | | $ | 1.94 | | | $ | 3.02 | | | $ | (1.08 | ) |
| | | | | | | | | | | | |
| 1 | The impact of participating securities is included in EIX parent company and other and was $(0.01) per share for the year-to-date period ended September 30, 2009 and $(0.04) per share for the year-to-date period ended September 30, 2008. |
Year-to-Date Reconciliation of Core Earnings Per Share to GAAP Earnings Per Share
| | | | | | | | | | | | | | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | | | Year-to-date
September 30, | | | | |
| | | 2009 | | | 2008 | | | Change | |
Core Earnings1 | | | | | | | | | | | | | | |
SCE | | | | $ | 2.17 | | | $ | 1.81 | | | $ | 0.36 | |
EMG | | | | | 0.55 | | | | 1.47 | | | | (0.92 | ) |
EIX parent company and other | | | | | (0.06 | ) | | | (0.10 | ) | | | 0.04 | |
| | | | | | | | | | | | | | |
EIX core earnings | | | | | 2.66 | | | | 3.18 | | | | (0.52 | ) |
| | | | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | | | |
SCE – regulatory items | | | | | 0.14 | | | | (0.15 | ) | | | 0.29 | |
Global tax settlement | | | | | (0.85 | ) | | | — | | | | (0.85 | ) |
SCE | | $ 0.92 | | | | | | | | | | | | |
EMG | | (1.92) | | | | | | | | | | | | |
EIX parent company and other | | 0.15 | | | | | | | | | | | | |
EMG – discontinued operations | | | | | (0.01 | ) | | | — | | | | (0.01 | ) |
| | | | | | | | | | | | | | |
Total non-core items | | | | | (0.72 | ) | | | (0.15 | ) | | | (0.57 | ) |
| | | | | | | | | | | | | | |
EIX GAAP earnings1 | | | | $ | 1.94 | | | $ | 3.03 | | | $ | (1.09 | ) |
| | | | | | | | | | | | | | |
| 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 for the year-to-date period ended September 30, 2009 and $(0.04) per share for year-to-date period ended September 30, 2008. |
Edison International Reports Third 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
September 30, | | | | |
| | | 2009 | | | 2008 | | | Change | |
SCE | | | | $ | 1,053 | | | $ | 542 | | | $ | 511 | |
EMG | | | | | (445 | ) | | | 479 | | | | (924 | ) |
EIX parent company and other | | | | | 34 | | | | (22 | ) | | | 56 | |
| | | | | | | | | | | | | | |
EIX earnings from continuing operations | | | | | 642 | | | | 999 | | | | (357 | ) |
EIX loss from discontinued operations | | | | | (5 | ) | | | — | | | | (5 | ) |
| | | | | | | | | | | | | | |
EIX GAAP earnings | | | | $ | 637 | | | $ | 999 | | | $ | (362 | ) |
| | | | | | | | | | | | | | |
|
| Year-to-Date Reconciliation of Core Earnings to GAAP Earnings | |
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | | | | Year-to-Date
September 30, | | | | |
| | | 2009 | | | 2008 | | | Change | |
Core Earnings1 | | | | | | | | | | | | | | |
SCE | | | | $ | 707 | | | $ | 591 | | | $ | 116 | |
EMG | | | | | 179 | | | | 479 | | | | (300 | ) |
EIX parent company and other | | | | | (16 | ) | | | (22 | ) | | | 6 | |
| | | | | | | | | | | | | | |
EIX core earnings | | | | | 870 | | | | 1,048 | | | | (178 | ) |
| | | | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | | | |
SCE – regulatory items | | | | | 46 | | | | (49 | ) | | | 95 | |
Global tax settlement | | | | | (274 | ) | | | — | | | | (274 | ) |
SCE | | $ 300 | | | | | | | | | | | | |
EMG | | (624) | | | | | | | | | | | | |
EIX parent company and other | | 50 | | | | | | | | | | | | |
EMG – discontinued operations | | | | | (5 | ) | | | — | | | | (5 | ) |
| | | | | | | | | | | | | | |
Total non-core items | | | | | (233 | ) | | | (49 | ) | | | (184 | ) |
| | | | | | | | | | | | | | |
EIX GAAP earnings | | | | $ | 637 | | | $ | 999 | | | $ | (362 | ) |
| | | | | | | | | | | | | | |
| 1 | See Use of Non-GAAP Financial Measures on page 4. |
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Edison International Reports Third Quarter 2009 Financial Results
Page 9 of 13
Edison International
Consolidated Statements of Income
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30, | | | Nine Months Ended
September 30, | |
In millions, except per-share amounts | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | (Unaudited) | |
Electric utility | | $ | 3,065 | | | $ | 3,467 | | | $ | 7,526 | | | $ | 8,696 | |
Competitive power generation | | | 592 | | | | 813 | | | | 1,759 | | | | 2,143 | |
Financial services and other | | | 7 | | | | 14 | | | | 25 | | | | 45 | |
| | | | | | | | | | | | | | | | |
Total operating revenue | | | 3,664 | | | | 4,294 | | | | 9,310 | | | | 10,884 | |
| | | | | | | | | | | | | | | | |
Fuel | | | 406 | | | | 635 | | | | 1,120 | | | | 1,725 | |
Purchased power | | | 1,032 | | | | 1,333 | | | | 2,155 | | | | 3,053 | |
Other operation and maintenance | | | 1,093 | | | | 1,035 | | | | 3,136 | | | | 3,110 | |
Depreciation, decommissioning and amortization | | | 365 | | | | 327 | | | | 1,053 | | | | 972 | |
Lease terminations and other | | | — | | | | (1 | ) | | | 888 | | | | (75 | ) |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 2,896 | | | | 3,329 | | | | 8,352 | | | | 8,785 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 768 | | | | 965 | | | | 958 | | | | 2,099 | |
Interest and dividend income | | | 2 | | | | 9 | | | | 29 | | | | 44 | |
Equity in income from partnerships and unconsolidated subsidiaries – net | | | 35 | | | | 31 | | | | 34 | | | | 40 | |
Other nonoperating income | | | 74 | | | | 23 | | | | 131 | | | | 78 | |
Interest expense – net of amounts capitalized | | | (187 | ) | | | (176 | ) | | | (556 | ) | | | (511 | ) |
Other nonoperating deductions | | | (16 | ) | | | (82 | ) | | | (41 | ) | | | (115 | ) |
| | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | 676 | | | | 770 | | | | 555 | | | | 1,635 | |
Income tax expense (benefit) | | | 232 | | | | 277 | | | | (169 | ) | | | 521 | |
| | | | | | | | | | | | | | | | |
Income from continuing operations | | | 444 | | | | 493 | | | | 724 | | | | 1,114 | |
Income (loss) from discontinued operations – net of tax | | | (1 | ) | | | 6 | | | | (5 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Net income | | | 443 | | | | 499 | | | | 719 | | | | 1,114 | |
Less: Net income attributable to noncontrolling interests | | | 40 | | | | 60 | | | | 82 | | | | 115 | |
| | | | | | | | | | | | | | | | |
Net income attributable to Edison International common shareholders | | $ | 403 | | | $ | 439 | | | $ | 637 | | | $ | 999 | |
| | | | | | | | | | | | | | | | |
Amounts attributable to Edison International common shareholders: | | | | | | | | | | | | | | | | |
Income from continuing operations, net of tax | | $ | 404 | | | $ | 433 | | | $ | 642 | | | $ | 999 | |
Income (loss) from discontinued operations, net of tax | | | (1 | ) | | | 6 | | | | (5 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Net income attributable to Edison International common shareholders | | $ | 403 | | | $ | 439 | | | $ | 637 | | | $ | 999 | |
| | | | | | | | | | | | | | | | |
Weighted-average shares of common stock outstanding | | | 326 | | | | 326 | | | | 326 | | | | 326 | |
Basic earnings per common share attributable to Edison International common shareholders: | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 1.23 | | | $ | 1.31 | | | $ | 1.95 | | | $ | 3.03 | |
Discontinued operations | | | — | | | | 0.02 | | | | (0.01 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1.23 | | | $ | 1.33 | | | $ | 1.94 | | | $ | 3.03 | |
| | | | | | | | | | | | | | | | |
Weighted-average shares of common stock outstanding, including effect of dilutive securities | | | 329 | | | | 328 | | | | 328 | | | | 329 | |
Diluted earnings per common share attributable to Edison International common shareholders: | | | | | | | | | | | | | | | | |
Continuing operations | | $ | 1.22 | | | $ | 1.31 | | | $ | 1.95 | | | $ | 3.02 | |
Discontinued operations | | | — | | | | 0.02 | | | | (0.01 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total | | $ | 1.22 | | | $ | 1.33 | | | $ | 1.94 | | | $ | 3.02 | |
| | | | | | | | | | | | | | | | |
Dividends declared per common share | | $ | 0.310 | | | $ | 0.305 | | | $ | 0.930 | | | $ | 0.915 | |
Edison International Reports Third Quarter 2009 Financial Results
Page 10 of 13
Edison International
Consolidated Balance Sheets
| | | | | | | | |
In millions | | September 30,
2009 | | | December 31,
2008 | |
| | | (Unaudited) | |
ASSETS | | | | | | | | |
Cash and equivalents | | $ | 2,411 | | | $ | 3,916 | |
Short-term investments | | | 5 | | | | 7 | |
Receivables, less allowances of $47 and $39 for uncollectible accounts at respective dates | | | 1,158 | | | | 1,006 | |
Accrued unbilled revenue | | | 583 | | | | 328 | |
Inventory | | | 549 | | | | 553 | |
Derivative assets | | | 403 | | | | 327 | |
Restricted cash | | | 148 | | | | 3 | |
Margin and collateral deposits | | | 222 | | | | 105 | |
Regulatory assets | | | 57 | | | | 605 | |
Deferred income taxes – net | | | 28 | | | | 104 | |
Other current assets | | | 204 | | | | 399 | |
| | | | | | | | |
Total current assets | | | 5,768 | | | | 7,353 | |
| | | | | | | | |
Nonutility property – less accumulated depreciation of $2,157 and $2,019 at respective dates | | | 4,718 | | | | 5,374 | |
Nuclear decommissioning trusts | | | 3,025 | | | | 2,524 | |
Investments in partnerships and unconsolidated subsidiaries | | | 238 | | | | 229 | |
Investments in leveraged leases | | | 164 | | | | 2,467 | |
Other investments | | | 93 | | | | 89 | |
| | | | | | | | |
Total investments and other assets | | | 8,238 | | | | 10,683 | |
| | | | | | | | |
Utility plant, at original cost: | | | | | | | | |
Transmission and distribution | | | 21,035 | | | | 20,006 | |
Generation | | | 2,633 | | | | 1,819 | |
Accumulated depreciation | | | (5,757 | ) | | | (5,570 | ) |
Construction work in progress | | | 2,688 | | | | 2,454 | |
Nuclear fuel, at amortized cost | | | 277 | | | | 260 | |
| | | | | | | | |
Total utility plant | | | 20,876 | | | | 18,969 | |
| | | | | | | | |
Derivative assets | | | 344 | | | | 244 | |
Restricted deposits | | | 43 | | | | 43 | |
Rent payments in excess of levelized rent expense under plant operating leases | | | 1,039 | | | | 878 | |
Regulatory assets | | | 5,084 | | | | 5,414 | |
Other long-term assets | | | 1,380 | | | | 1,031 | |
| | | | | | | | |
Total long-term assets | | | 7,890 | | | | 7,610 | |
| | | | | | | | |
Total assets | | $ | 42,772 | | | $ | 44,615 | |
| | | | | | | | |
Edison International Reports Third Quarter 2009 Financial Results
Page 11 of 13
Edison International
Consolidated Balance Sheets
| | | | | | |
In millions, except share amounts | | September 30,
2009 | | December 31,
2008 |
| | | (Unaudited) |
LIABILITIES AND EQUITY | | | | | | |
Short-term debt | | $ | 85 | | $ | 2,143 |
Current portion of long-term debt | | | 842 | | | 174 |
Accounts payable | | | 966 | | | 1,031 |
Accrued taxes | | | 271 | | | 590 |
Accrued interest | | | 207 | | | 187 |
Customer deposits | | | 241 | | | 228 |
Book overdrafts | | | 260 | | | 224 |
Derivative liabilities | | | 108 | | | 178 |
Regulatory liabilities | | | 1,176 | | | 1,111 |
Other current liabilities | | | 803 | | | 831 |
| | | | | | |
Total current liabilities | | | 4,959 | | | 6,697 |
| | | | | | |
Long-term debt | | | 10,448 | | | 10,950 |
| | | | | | |
Deferred income taxes – net | | | 4,414 | | | 5,717 |
Deferred investment tax credits | | | 198 | | | 109 |
Customer advances | | | 123 | | | 137 |
Derivative liabilities | | | 674 | | | 776 |
Pensions and benefits | | | 3,000 | | | 2,860 |
Asset retirement obligations | | | 3,179 | | | 3,042 |
Regulatory liabilities | | | 2,848 | | | 2,481 |
Other deferred credits and other long-term liabilities | | | 1,924 | | | 1,137 |
| | | | | | |
Total deferred credits and other liabilities | | | 16,360 | | | 16,259 |
| | | | | | |
Total liabilities | | | 31,767 | | | 33,906 |
| | | | | | |
Common stock, no par value (325,811,206 shares outstanding at each date) | | | 2,294 | | | 2,272 |
Accumulated other comprehensive income | | | 128 | | | 167 |
Retained earnings | | | 7,401 | | | 7,078 |
| | | | | | |
Total Edison International’s common shareholders’ equity | | | 9,823 | | | 9,517 |
Noncontrolling interests – other | | | 275 | | | 285 |
Preferred and preference stock of utility not subject to mandatory redemption | | | 907 | | | 907 |
| | | | | | |
Total equity | | | 11,005 | | | 10,709 |
| | | | | | |
Total liabilities and equity | | $ | 42,772 | | $ | 44,615 |
| | | | | | |
Edison International Reports Third Quarter 2009 Financial Results
Page 12 of 13
Edison International
Consolidated Statements of Cash Flows
| | | | | | | | |
| | | Nine Months Ended
September 30, | |
In millions | | 2009 | | | 2008 | |
| | | (Unaudited) | |
Cash flows from operating activities: | | | | | | | | |
Net income | | $ | 719 | | | $ | 1,114 | |
Loss from discontinued operations | | | 5 | | | | — | |
| | | | | | | | |
Income from continuing operations | | | 724 | | | | 1,114 | |
Adjustments to reconcile to net cash provided by operating activities: | | | | | | | | |
Depreciation, decommissioning and amortization | | | 1,053 | | | | 972 | |
Regulatory impacts of net nuclear decommissioning trust earnings (reflected in accumulated depreciation) | | | 133 | | | | 42 | |
Other amortization | | | 95 | | | | 80 | |
Lease terminations and other | | | 888 | | | | (75 | ) |
Stock-based compensation | | | 17 | | | | 25 | |
Equity in income from partnerships and unconsolidated subsidiaries – net | | | (34 | ) | | | (40 | ) |
Distributions and dividends from unconsolidated entities | | | 5 | | | | 9 | |
Deferred income taxes and investment tax credits | | | (1,322 | ) | | | 69 | |
Rent payments in excess of levelized rent expense | | | (161 | ) | | | (162 | ) |
Income from leveraged leases | | | (13 | ) | | | (39 | ) |
Long-term regulatory assets and liabilities – net | | | 338 | | | | (28 | ) |
Long-term derivative assets and liabilities – net | | | (176 | ) | | | 29 | |
Other assets | | | (136 | ) | | | (71 | ) |
Other liabilities | | | 835 | | | | (13 | ) |
Changes in working capital: | | | | | | | | |
Margin and collateral deposits – net of collateral received | | | (99 | ) | | | (70 | ) |
Receivables and accrued unbilled revenue | | | (409 | ) | | | (378 | ) |
Inventory | | | 4 | | | | (75 | ) |
Restricted cash | | | (148 | ) | | | — | |
Other current assets | | | 190 | | | | 93 | |
Book overdrafts | | | 41 | | | | 90 | |
Accrued taxes | | | (318 | ) | | | 128 | |
Current regulatory assets and liabilities – net | | | 613 | | | | (97 | ) |
Current derivative assets and liabilities – net | | | (238 | ) | | | (3 | ) |
Accounts payable and other current liabilities | | | 235 | | | | 35 | |
Operating cash flows from discontinued operations | | | (5 | ) | | | — | |
| | | | | | | | |
Net cash provided by operating activities | | | 2,112 | | | | 1,635 | |
| | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
Long-term debt issued | | | 939 | | | | 2,132 | |
Long-term debt issuance costs | | | (25 | ) | | | (15 | ) |
Long-term debt repaid | | | (566 | ) | | | (246 | ) |
Bonds repurchased | | | (219 | ) | | | (212 | ) |
Preferred stock redeemed | | | — | | | | (7 | ) |
Short-term debt financing – net | | | (2,058 | ) | | | 1,308 | |
Cash contributions from noncontrolling interests | | | 2 | | | | — | |
Stock-based compensation – net | | | 4 | | | | (22 | ) |
Dividends and distributions to noncontrolling interests | | | (88 | ) | | | (116 | ) |
Dividends paid | | | (303 | ) | | | (298 | ) |
| | | | | | | | |
Net cash provided (used) by financing activities | | $ | (2,314 | ) | | $ | 2,524 | |
| | | | | | | | |
Edison International Reports Third Quarter 2009 Financial Results
Page 13 of 13
Edison International
Consolidated Statements of Cash Flows
| | | | | | | | |
| | | Nine Months Ended
September 30, | |
In millions | | 2009 | | | 2008 | |
| | | (Unaudited) | |
Cash flows from investing activities: | | | | | | | | |
Capital expenditures | | $ | (2,287 | ) | | $ | (1,959 | ) |
Purchase of interest in acquired companies | | | (7 | ) | | | (11 | ) |
Proceeds from termination of leases | | | 1,420 | | | | — | |
Proceeds from sale of property and interests in projects | | | 1 | | | | 113 | |
Proceeds from nuclear decommissioning trust sales | | | 1,814 | | | | 2,279 | |
Purchases of nuclear decommissioning trust investments and other | | | (1,977 | ) | | | (2,329 | ) |
Proceeds from partnerships and unconsolidated subsidiaries, net of investment | | | 10 | | | | 35 | |
Maturities and sales of short-term investments | | | 3 | | | | 80 | |
Purchase of short-term investments | | | (1 | ) | | | (22 | ) |
Customer advances for construction and other investments | | | (279 | ) | | | (322 | ) |
| | | | | | | | |
Net cash used by investing activities | | | (1,303 | ) | | | (2,136 | ) |
| | | | | | | | |
Net increase (decrease) in cash and equivalents | | | (1,505 | ) | | | 2,023 | |
Cash and equivalents, beginning of period | | | 3,916 | | | | 1,441 | |
| | | | | | | | |
Cash and equivalents, end of period | | $ | 2,411 | | | $ | 3,464 | |
| | | | | | | | |
