Exhibit 99.1
 | NEWS | |
FOR IMMEDIATE RELEASE
Media relations contact:
Charles Coleman, (626) 302-7982
Investor relations contact:
Scott Cunningham, (626) 302-2540
Edison International Reports Fourth Quarter and Full-Year 2015 Results; Introduces 2016 Earnings Guidance
ROSEMEAD, Calif., February 23, 2016 - Edison International (NYSE: EIX) today reported fourth quarter 2015 net loss on a GAAP basis of $79 million, or $0.24 per share, compared to net income of $420 million, or $1.29 per share, in the fourth quarter of 2014. On an adjusted basis, Edison International’s fourth quarter 2015 core earnings were $287 million, or $0.88 per share, compared to $355 million, or $1.08 per share, in the fourth quarter of 2014.
Southern California Edison's (SCE) fourth quarter 2015 core earnings decreased by $66 million, or $0.20 per share, from the fourth quarter 2014 primarily due to lower authorized California Public Utilities Commission (CPUC) revenue from implementation of the 2015 CPUC General Rate Case (GRC) decision and higher income taxes, partially offset by lower operation and maintenance costs. Edison International Parent and Other’s fourth quarter 2015 core loss increased by $2 million compared to fourth quarter 2014 core losses primarily due to income taxes and expenses.
Fourth quarter 2015 core earnings exclude losses of $366 million, or $1.12 per share, primarily related to the $382 million, or $1.18 per share, write-down of SCE regulatory assets previously recorded for recovery of deferred income taxes from 2012-2014 incremental tax repair deductions. Fourth quarter 2014 core earnings exclude SCE income of $24 million, or $0.08 per share, related to a revised estimated impact of the San Onofre Nuclear Generating Station (SONGS) Settlement Agreement, and income of $41 million, or $0.13 per share, primarily due to discontinued operations.
“Our results are well ahead of earnings guidance,” said Ted Craver, chairman and chief executive officer of Edison International, “and reflect SCE’s strong rate base growth and continued focus on operational excellence. With the potential for continued long-term growth and productivity improvements at SCE along with continued development of Edison Energy Group’s businesses, Edison International is well-positioned in a rapidly changing industry.”
Full-Year Earnings
For the year ended December 31, 2015, Edison International reported net income on a GAAP basis of $1.02 billion, or $3.13 per share, compared to $1.612 billion, or $4.95 per share, during 2014. On an adjusted basis, Edison International’s core earnings were $1.336 billion, or $4.10 per share, compared to $1.497 billion, or $4.59 per share, in 2014.
SCE’s core earnings for the year ended December 31, 2015 decreased $157 million, or $0.48 per share, from 2014, primarily due to lower CPUC-related revenue from implementation of the 2015 CPUC GRC decision and higher income taxes, partially offset by an increase in Federal Energy Regulatory Commission-related revenue from rate base growth, lower operation and maintenance costs and earnings on funds used during construction. Edison International Parent and Other’s 2015 core losses increased $4 million, or $0.01 per share, compared to 2014 primarily due to income taxes and expenses.
Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
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2015 core earnings exclude losses of $316 million, or $0.97 per share, primarily related to the $382 million, or $1.18 per share, write-down of SCE regulatory assets. 2014 core earnings exclude SCE net charges of $72 million, or $0.22 per share, related to the SONGS Settlement, and income of $187 million, or $0.58 per share, primarily due to discontinued operations.
Edison International uses core earnings, which is a non-GAAP financial measure that adjusts for significant discrete items that management does not consider representative of ongoing earnings. Edison International management believes that core earnings provide more meaningful comparisons of performance from period to period. Please see the attached tables for a reconciliation of core earnings to basic GAAP earnings.
2016 Earnings Guidance
The company announced core and basic earnings guidance of $3.81 to $4.01 per share for 2016. See the presentation accompanying the company’s conference call for further information including key guidance assumptions.
2016 Core and Basic Earnings Guidance as of February 23, 2016
| Low | Midpoint | High | |
| SCE | $4.09 | ||
| EIX Parent & Other | (0.18) | ||
| EIX Core EPS | $3.81 | $3.91 | $4.01 |
| Non-Core Items | - | - | - |
| EIX Basic EPS | $3.81 | $3.91 | $4.01 |
About Edison International
Edison International (NYSE:EIX), through its subsidiaries, is a generator and distributor of electric power and an investor in energy services and technologies, including renewable energy. Headquartered in Rosemead, Calif., Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities.
Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
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Appendix
Use of Non-GAAP Financial Measures
Edison International’s earnings are prepared in accordance with generally accepted accounting principles (GAAP) used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core earnings per share (EPS) internally for financial planning and for analysis of performance. We also use core earnings and core EPS when communicating with analysts and investors regarding our earnings results to facilitate comparisons of the Company’s performance from period to period. Financial measures referred to as net income, basic EPS, core earnings, or core EPS also apply to the description of earnings or earnings per share.
Core earnings and core EPS are non-GAAP financial measures and may not be comparable to those of other companies. Core earnings and core EPS are defined as basic earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. Basic earnings and losses refer to net income or losses attributable to Edison International shareholders. Core earnings are reconciled to basic earnings in the attached tables. The impact of participating securities (vested awards that earn dividend equivalents that may participate in undistributed earnings with common stock) for the principal operating subsidiary is not material to the principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which is included in Edison International Parent and Other.
Risk Disclosure Statement
Forward-looking statements about the financial outlook for Edison International and its subsidiaries are included in this news release. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Edison International’s Form 10-K and other reports and presentations filed with the Securities and Exchange Commission which are available at: www.edisoninvestor.com. These forward-looking statements represent our expectations only as of the date of this news release, and Edison International assumes no duty to update them to reflect new information, events or circumstances.
Reminder: Edison International Will Hold a Conference Call Today
When: Tuesday, February 23, 2016, 1:30 p.m. (Pacific Time)
Telephone Numbers: 1-800-369-2198 (US) and 1-773-756-4618 (Int'l) - Passcode: Edison
Telephone Replay: 1-888-568-0891 (US) and 1-402-998-1567 (Int’l) - Passcode: 22316
Telephone replay available through March 3, 2016
Webcast: www.edisoninvestor.com
Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
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Fourth Quarter and Full-Year Reconciliation of
Core Earnings Per Share to Basic Earnings Per Share
| Three months ended December 31, | Years ended December 31, | ||||||||||||||||||||||
| 2015 | 2014 | Change | 2015 | 2014 | Change | ||||||||||||||||||
| Earnings (loss) per share attributable to Edison International | |||||||||||||||||||||||
| Continuing operations | |||||||||||||||||||||||
| SCE | $ | (0.25 | ) | $ | 1.17 | $ | (1.42 | ) | $ | 3.06 | $ | 4.46 | $ | (1.40 | ) | ||||||||
| Edison International Parent and Other | 0.03 | — | 0.03 | (0.04 | ) | (0.08 | ) | 0.04 | |||||||||||||||
| Discontinued operations | (0.02 | ) | 0.12 | (0.14 | ) | 0.11 | 0.57 | (0.46 | ) | ||||||||||||||
| Edison International | (0.24 | ) | 1.29 | (1.53 | ) | 3.13 | 4.95 | (1.82 | ) | ||||||||||||||
| Less: Non-core items | |||||||||||||||||||||||
| SCE | (1.14 | ) | 0.08 | (1.22 | ) | (1.14 | ) | (0.22 | ) | (0.92 | ) | ||||||||||||
| Edison International Parent and Other | 0.04 | 0.01 | 0.03 | 0.06 | 0.01 | 0.05 | |||||||||||||||||
| Discontinued operations | (0.02 | ) | 0.12 | (0.14 | ) | 0.11 | 0.57 | (0.46 | ) | ||||||||||||||
| Total non-core items | (1.12 | ) | 0.21 | (1.33 | ) | (0.97 | ) | 0.36 | (1.33 | ) | |||||||||||||
| Core earnings (losses) | |||||||||||||||||||||||
| SCE | 0.89 | 1.09 | (0.20 | ) | 4.20 | 4.68 | (0.48 | ) | |||||||||||||||
| Edison International Parent and Other | (0.01 | ) | (0.01 | ) | — | (0.10 | ) | (0.09 | ) | (0.01 | ) | ||||||||||||
| Edison International | $ | 0.88 | $ | 1.08 | $ | (0.20 | ) | $ | 4.10 | $ | 4.59 | $ | (0.49 | ) | |||||||||
Note: Diluted earnings were $(0.24) and $1.27 per share for the three months ended December 31, 2015 and 2014, respectively, and $3.10 and $4.89 per share for the years ended December 31, 2015 and 2014, respectively.
Fourth Quarter and Full-Year Reconciliation of
Core Earnings to Basic Earnings (in millions)
| Three months ended December 31, | Years ended December 31, | ||||||||||||||||||||||
| (in millions) | 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||||||||||||
| Net income (loss) attributable to Edison International | |||||||||||||||||||||||
| Continuing operations | |||||||||||||||||||||||
| SCE | $ | (80 | ) | $ | 380 | $ | (460 | ) | $ | 998 | $ | 1,453 | $ | (455 | ) | ||||||||
| Edison International Parent and Other | 9 | 1 | 8 | (13 | ) | (26 | ) | 13 | |||||||||||||||
| Discontinued operations | (8 | ) | 39 | (47 | ) | 35 | 185 | (150 | ) | ||||||||||||||
| Edison International | (79 | ) | 420 | (499 | ) | 1,020 | 1,612 | (592 | ) | ||||||||||||||
| Less: Non-core items | |||||||||||||||||||||||
| SCE | (370 | ) | 24 | (406 | ) | (370 | ) | (72 | ) | (310 | ) | ||||||||||||
| Edison International Parent and Other | 12 | 2 | 10 | 19 | 2 | 17 | |||||||||||||||||
| Discontinued operations | (8 | ) | 39 | (47 | ) | 35 | 185 | (150 | ) | ||||||||||||||
| Total non-core items | (366 | ) | 65 | (443 | ) | (316 | ) | 115 | (443 | ) | |||||||||||||
| Core earnings (losses) | |||||||||||||||||||||||
| SCE | 290 | 356 | (66 | ) | 1,368 | 1,525 | (157 | ) | |||||||||||||||
| Edison International Parent and Other | (3 | ) | (1 | ) | (2 | ) | (32 | ) | (28 | ) | (4 | ) | |||||||||||
| Edison International | $ | 287 | $ | 355 | $ | (68 | ) | $ | 1,336 | $ | 1,497 | $ | (161 | ) | |||||||||
Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
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| Consolidated Statements of Income | Edison International | ||||||||||||||
| Quarters ended December 31, | Years ended December 31, | ||||||||||||||
| (in millions, except per-share amounts) | 2015 | 2014 | 2015 | 2014 | |||||||||||
| Total operating revenue | $ | 2,341 | $ | 3,114 | $ | 11,524 | $ | 13,413 | |||||||
| Purchased power and fuel | 618 | 1,029 | 4,266 | 5,593 | |||||||||||
| Operation and maintenance | 830 | 901 | 2,990 | 3,149 | |||||||||||
| Depreciation, decommissioning and amortization | 467 | 472 | 1,919 | 1,720 | |||||||||||
| Property and other taxes | 81 | 87 | 336 | 322 | |||||||||||
| Impairment and other charges | 5 | (68 | ) | 5 | 157 | ||||||||||
| Total operating expenses | 2,001 | 2,421 | 9,516 | 10,941 | |||||||||||
| Operating income | 340 | 693 | 2,008 | 2,472 | |||||||||||
| Interest and other income | 58 | 39 | 174 | 147 | |||||||||||
| Interest expense | (136 | ) | (138 | ) | (555 | ) | (560 | ) | |||||||
| Other expenses | (18 | ) | (29 | ) | (59 | ) | (80 | ) | |||||||
| Income from continuing operations before income taxes | 244 | 565 | 1,568 | 1,979 | |||||||||||
| Income tax expense | 291 | 159 | 486 | 443 | |||||||||||
| (Loss) Income from continuing operations | (47 | ) | 406 | 1,082 | 1,536 | ||||||||||
| (Loss) Income from discontinued operations, net of tax | (8 | ) | 39 | 35 | 185 | ||||||||||
| Net (loss) income | (55 | ) | 445 | 1,117 | 1,721 | ||||||||||
| Preferred and preference stock dividend requirements of utility | 29 | 28 | 113 | 112 | |||||||||||
| Other noncontrolling interests | (5 | ) | (3 | ) | (16 | ) | (3 | ) | |||||||
| Net (loss) income attributable to Edison International common shareholders | $ | (79 | ) | $ | 420 | $ | 1,020 | $ | 1,612 | ||||||
| Amounts attributable to Edison International common shareholders: | |||||||||||||||
| (Loss) Income from continuing operations, net of tax | $ | (71 | ) | $ | 381 | $ | 985 | $ | 1,427 | ||||||
| (Loss) Income from discontinued operations, net of tax | (8 | ) | 39 | 35 | 185 | ||||||||||
| Net (loss) income attributable to Edison International common shareholders | $ | (79 | ) | $ | 420 | $ | 1,020 | $ | 1,612 | ||||||
| Basic (loss) earnings per common share attributable to Edison International common shareholders: | |||||||||||||||
| Weighted-average shares of common stock outstanding | 326 | 326 | 326 | 326 | |||||||||||
| Continuing operations | $ | (0.22 | ) | $ | 1.17 | $ | 3.02 | $ | 4.38 | ||||||
| Discontinued operations | (0.02 | ) | 0.12 | 0.11 | 0.57 | ||||||||||
| Total | $ | (0.24 | ) | $ | 1.29 | $ | 3.13 | $ | 4.95 | ||||||
| Diluted (loss) earnings per common share attributable to Edison International common shareholders: | |||||||||||||||
| Weighted-average shares of common stock outstanding, including effect of dilutive securities | 328 | 329 | 329 | 329 | |||||||||||
| Continuing operations | $ | (0.22 | ) | $ | 1.15 | $ | 2.99 | $ | 4.33 | ||||||
| Discontinued operations | (0.02 | ) | 0.12 | 0.11 | 0.56 | ||||||||||
| Total | $ | (0.24 | ) | $ | 1.27 | $ | 3.10 | $ | 4.89 | ||||||
| Dividends declared per common share | $ | 0.4800 | $ | 0.4175 | $ | 1.7325 | $ | 1.4825 | |||||||
Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
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| Consolidated Balance Sheets | Edison International | |||||||
| December 31, | ||||||||
| (in millions) | 2015 | 2014 | ||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 161 | $ | 132 | ||||
| Receivables, less allowances of $62 and $68 for uncollectible accounts at respective dates | 771 | 790 | ||||||
| Accrued unbilled revenue | 565 | 632 | ||||||
| Inventory | 267 | 281 | ||||||
| Derivative assets | 79 | 102 | ||||||
| Regulatory assets | 560 | 1,254 | ||||||
| Other current assets | 251 | 376 | ||||||
| Total current assets | 2,654 | 3,567 | ||||||
| Nuclear decommissioning trusts | 4,331 | 4,799 | ||||||
| Other investments | 203 | 207 | ||||||
| Total investments | 4,534 | 5,006 | ||||||
| Utility property, plant and equipment, less accumulated depreciation and amortization of $8,548 and $8,132 at respective dates | 34,945 | 32,859 | ||||||
| Nonutility property, plant and equipment, less accumulated depreciation of $85 and $76 at respective dates | 140 | 122 | ||||||
| Total property, plant and equipment | 35,085 | 32,981 | ||||||
| Derivative assets | 84 | 219 | ||||||
| Regulatory assets | 7,512 | 7,612 | ||||||
| Other long-term assets | 441 | 349 | ||||||
| Total long-term assets | 8,037 | 8,180 | ||||||
| Total assets | $ | 50,310 | $ | 49,734 | ||||
Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
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| Consolidated Balance Sheets | Edison International | |||||||
| December 31, | ||||||||
| (in millions, except share amounts) | 2015 | 2014 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Short-term debt | $ | 695 | $ | 1,291 | ||||
| Current portion of long-term debt | 295 | 504 | ||||||
| Accounts payable | 1,310 | 1,580 | ||||||
| Accrued taxes | 72 | 81 | ||||||
| Customer deposits | 242 | 221 | ||||||
| Derivative liabilities | 218 | 196 | ||||||
| Regulatory liabilities | 1,128 | 401 | ||||||
| Other current liabilities | 967 | 1,205 | ||||||
| Total current liabilities | 4,927 | 5,479 | ||||||
| Long-term debt | 10,964 | 10,234 | ||||||
| Deferred income taxes and credits | 7,480 | 6,861 | ||||||
| Derivative liabilities | 1,100 | 1,052 | ||||||
| Pensions and benefits | 1,759 | 2,155 | ||||||
| Asset retirement obligations | 2,764 | 2,821 | ||||||
| Regulatory liabilities | 5,676 | 5,889 | ||||||
| Other deferred credits and other long-term liabilities | 2,246 | 2,255 | ||||||
| Total deferred credits and other liabilities | 21,025 | 21,033 | ||||||
| Total liabilities | 36,916 | 36,746 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable noncontrolling interest | 6 | 6 | ||||||
| Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at respective dates) | 2,484 | 2,445 | ||||||
| Accumulated other comprehensive loss | (56 | ) | (58 | ) | ||||
| Retained earnings | 8,940 | 8,573 | ||||||
| Total Edison International's common shareholders' equity | 11,368 | 10,960 | ||||||
Noncontrolling interests – preferred and preference stock of utility | 2,020 | 2,022 | ||||||
| Total equity | 13,388 | 12,982 | ||||||
| Total liabilities and equity | $ | 50,310 | $ | 49,734 | ||||
Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
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| Consolidated Statements of Cash Flows | Edison International | |||||||||||
| Years ended December 31, | ||||||||||||
| (in millions) | 2015 | 2014 | 2013 | |||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income | $ | 1,117 | $ | 1,721 | $ | 1,015 | ||||||
| Less: Income from discontinued operations | 35 | 185 | 36 | |||||||||
| Income from continuing operations | 1,082 | 1,536 | 979 | |||||||||
| Adjustments to reconcile to net cash provided by operating activities: | ||||||||||||
| Depreciation, decommissioning and amortization | 2,005 | 1,815 | 1,696 | |||||||||
| Allowance for equity during construction | (87 | ) | (65 | ) | (72 | ) | ||||||
| Impairment and other charges | 5 | 157 | 571 | |||||||||
| Deferred income taxes and investment tax credits | 449 | 522 | 345 | |||||||||
| Other | (28 | ) | 20 | 18 | ||||||||
| Nuclear decommissioning trusts | (428 | ) | 39 | 76 | ||||||||
| EME settlement insurance proceeds and settlement payments | (176 | ) | (225 | ) | — | |||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Receivables | 49 | 64 | (56 | ) | ||||||||
| Inventory | 14 | (25 | ) | 80 | ||||||||
| Accounts payable | 8 | 14 | 45 | |||||||||
| Prepaid and accrued taxes | (28 | ) | (100 | ) | (92 | ) | ||||||
| Other current assets and liabilities | (24 | ) | (103 | ) | (155 | ) | ||||||
| Derivative assets and liabilities, net | 45 | (40 | ) | (30 | ) | |||||||
| Regulatory assets and liabilities, net | 1,729 | (358 | ) | (322 | ) | |||||||
| Other noncurrent assets and liabilities | (106 | ) | (3 | ) | (116 | ) | ||||||
| Net cash provided by operating activities | 4,509 | 3,248 | 2,967 | |||||||||
| Cash flows from financing activities: | ||||||||||||
| Long-term debt issued or remarketed, net of discount and issuance costs of $17, $6, and $19 at respective periods | 1,420 | 494 | 2,168 | |||||||||
| Long-term debt matured or repurchased | (762 | ) | (607 | ) | (1,017 | ) | ||||||
| Preference stock issued, net | 319 | 269 | 387 | |||||||||
| Preference stock redeemed | (325 | ) | — | (400 | ) | |||||||
| Short-term debt financing, net | (572 | ) | 1,079 | 32 | ||||||||
| Cash contribution from redeemable noncontrolling interest | 17 | 9 | — | |||||||||
| Dividends to noncontrolling interests | (116 | ) | (111 | ) | (101 | ) | ||||||
| Dividends paid | (544 | ) | (463 | ) | (440 | ) | ||||||
| Other | (25 | ) | (25 | ) | (48 | ) | ||||||
| Net cash (used in) provided by financing activities | (588 | ) | 645 | 581 | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Capital expenditures | (4,225 | ) | (3,906 | ) | (3,599 | ) | ||||||
| Proceeds from sale of nuclear decommissioning trust investments | 3,506 | 2,617 | 1,204 | |||||||||
| Purchases of nuclear decommissioning trust investments | (3,132 | ) | (2,661 | ) | (1,302 | ) | ||||||
| Proceeds from sale of assets | 47 | 6 | 181 | |||||||||
| Other | (88 | ) | 37 | (56 | ) | |||||||
| Net cash used in investing activities | (3,892 | ) | (3,907 | ) | (3,572 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents | 29 | (14 | ) | (24 | ) | |||||||
| Cash and cash equivalents at beginning of year | 132 | 146 | 170 | |||||||||
| Cash and cash equivalents at end of year | $ | 161 | $ | 132 | $ | 146 | ||||||