EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

LOGO   News Release

FOR IMMEDIATE RELEASE

Media Relations: Charles Coleman, (626) 302-7982

www.edisonnews.com

Investor Relations: Scott Cunningham, (626) 302-2540

www.edisoninvestor.com

Edison International Reports 2007 Third Quarter Results

 

 

•

  

Third quarter 2007 basic earnings per common share were $1.40, up 1% from the third quarter of 2006. Core earnings1 grew 7% to $1.41 per share primarily due to solid operating results across our major businesses.

 

  •  

Year-to-date basic earnings per common share were $2.69, down less than 1% from the prior period, while core earnings were $3.04 per share, up 25% from the prior year, driven by strong margins at Midwest Generation and Homer City, solid operating results at Southern California Edison Company (SCE), and lower net interest expense at Edison Mission Group (EMG). The change in non-core items more than offset the core increases.

 

  •  

The company now expects earnings to be at the high end of its guidance range of $3.24 to $3.59 for core earnings per share and $2.90 to $3.25 for reported earnings per share.

Edison International Third Quarter Financial Highlights

 

     Quarter Ended September 30,    Change  

(In millions, except per share data)

    2007    2006    $    %  

Basic earnings per common share

    $ 1.40    $ 1.38    $ 0.02    1 %

Core earnings per common share

    $ 1.41    $ 1.32    $ 0.09    7 %

Net income

    $ 461    $ 458    $ 3    1 %

Core earnings

    $ 465    $ 436    $ 29    7 %

THIRD QUARTER EARNINGS SUMMARY

ROSEMEAD, Calif., November 2, 2007 – Edison International (NYSE: EIX) today reported basic earnings per common share of $1.40 in the third quarter of 2007, compared to $1.38 basic earnings per common share in the same period last year. Excluding discontinued operations and other non-core items, third quarter core earnings per share were $1.41, up 7% over last year.

“Edison International continues to deliver strong financial results and advance its growth plans,” said John E. Bryson, chairman and CEO. “Our proposed five-year investment program at Southern California Edison is consistent with California energy policy goals. At EMG, capacity markets are demonstrating higher value for our generating fleet, and we continue to place new wind projects into construction. ”

 

1

Core earnings is a non-GAAP financial measure; see reconciliation of core earnings to reported earnings and reconciliation of core earnings guidance to total earnings guidance below.

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

Page 2 of 13

 

THIRD QUARTER EARNINGS DETAIL

Earnings from Continuing Operations

SCE 2007 third quarter earnings from continuing operations were $0.80 per share compared to earnings of $0.81 per share in the same period last year. SCE’s 2006 third quarter results include a $0.07 per share non-core benefit from a generator settlement. Excluding this item, SCE’s core earnings increased by $0.06 per share. This increase was primarily related to higher net revenue associated with the 2006 general rate case. Due to higher kWh sales from warmer weather during the summer months and the company’s rate design, electric utility revenue during the third quarter of each year is generally higher than other quarters.

EMG 2007 third quarter earnings from continuing operations and core earnings were $0.64 per share compared to $0.62 per share in the same period last year. The improvement was primarily due to lower net interest expense from debt repayment and higher energy margins, partially offset by higher development and corporate costs.

Loss from Discontinued Operations

Edison International’s losses from discontinued operations were $0.01 per share in each period, and were related to EMG’s former international projects.

 

     Quarter Ended September 30,        

Earnings (Loss) Per Common Share (Unaudited)

    2007     2006     Change  

Southern California Edison Company

    $ 0.80     $ 0.81     $ (0.01 )

Edison Mission Group

      0.64       0.62       0.02  

EIX parent company and other

      (0.03 )     (0.04 )     0.01  
                        

EIX basic earnings per common share from continuing operations

      1.41       1.39       0.02  
                        

Loss from discontinued operations

      (0.01 )     (0.01 )     —    
                        

EIX basic earnings per common share

    $ 1.40     $ 1.38     $ 0.02  
                        

EIX diluted earnings per common share

    $ 1.39     $ 1.38     $ 0.01  
                        
     Quarter Ended September 30,        

Earnings (Loss) (in millions) (Unaudited)

    2007     2006     Change  

Southern California Edison Company

    $ 262     $ 263     $ (1 )

Edison Mission Group

      207       204       3  

EIX parent company and other

      (4 )     (7 )     3  
                        

EIX income from continuing operations

      465       460       5  
                        

Loss from discontinued operations

      (4 )     (2 )     (2 )
                        

EIX net income

    $ 461     $ 458     $ 3  
                        

– MORE –

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

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Third Quarter Reconciliation of Core Earnings to Reported Earnings

 

     Quarter Ended September 30,        

Core Earnings1 (Loss) Per Common Share (Unaudited)

    2007     2006     Change  

Southern California Edison Company

    $ 0.80     $ 0.74     $ 0.06  

Edison Mission Group

      0.64       0.62       0.02  

EIX parent company and other

      (0.03 )     (0.04 )     0.01  
                        

EIX core earnings per share

      1.41       1.32       0.09  
                        

Non-core items

       

SCE – generator settlement

      —         0.07       (0.07 )

EMG – loss from discontinued operations

      (0.01 )     (0.01 )     —    
                        

Total non-core items

      (0.01 )     0.06       (0.07 )
                        

EIX basic earnings per common share

    $ 1.40     $ 1.38     $ 0.02  
                        
     Quarter Ended September 30,        

Core Earnings1 (Loss) (in millions) (Unaudited)

    2007     2006     Change  

Southern California Edison Company

    $ 262     $ 239     $ 23  

Edison Mission Group

      207       204       3  

EIX parent company and other

      (4 )     (7 )     3  
                        

EIX core earnings

      465       436       29  
                        

Non-core items

       

SCE – generator settlement

      —         24       (24 )

EMG – loss from discontinued operations

      (4 )     (2 )     (2 )
                        

Total non-core items

      (4 )     22       (26 )
                        

Total EIX net income

    $ 461     $ 458     $ 3  
                        

 

1

See Use of Non-GAAP Financial Measures on page 7. The impact of participating securities is included in EIX parent company earnings (loss) and was $(0.02) and $(0.03) per share for the quarter ended September 30, 2007 and 2006, respectively.

– MORE –

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

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YEAR-TO-DATE EARNINGS SUMMARY

Edison International Year-to-Date Financial Highlights

 

    

Year-to-Date

September 30,

    Change  

(In millions, except per share data)

    2007    2006    $     %  

Basic earnings per common share

    $ 2.69    $ 2.71    $ (0.02 )   (1 %)

Core earnings per common share

    $ 3.04    $ 2.43    $ 0.61     25 %

Net income

    $ 887    $ 893    $ (6 )   (1 %)

Core earnings

    $ 1,003    $ 800    $ 203     25 %

Edison International recorded earnings of $2.69 per basic share for the nine-month period ending September 30, 2007, down less than 1% from the same period last year. Earnings from continuing operations of $2.69 per basic share compared to $2.48 per share for the prior period. Excluding earnings from discontinued operations and other non-core items, Edison International’s core earnings for the nine-month period were $3.04 per share, up 25% compared to $2.43 per share in the same period in 2006.

YEAR-TO-DATE EARNINGS DETAIL

Earnings from Continuing Operations

SCE’s earnings from continuing operations in the first nine months of 2007 were $1.80 per share compared to $1.90 per share a year ago. SCE’s 2007 results include a non-core tax benefit of $0.10 per share primarily reflecting progress on an appeal with the Internal Revenue Service related to the income tax treatment of certain costs associated with environmental remediation. SCE’s 2006 results include a non-core benefit of $0.25 per share related to resolution of an issue related to state income taxes and a generator settlement of $0.07 per share. Excluding non-core items, SCE’s core earnings were $1.70 per share, compared to $1.58 per share, in the same period last year. The increase is mainly due to higher net revenue associated with the 2006 general rate case decision and lower income taxes.

EMG’s earnings from continuing operations for the first nine months of 2007 were $0.96 per share versus $0.68 per share in the same period last year. Both 2007 and 2006 results were impacted by non-core charges of $0.45 and $0.27 per share respectively, primarily associated with early debt extinguishment. Excluding non-core items, EMG’s core earnings were $1.41 per share compared to $0.95 per share last year. This increase primarily reflects higher energy margins at Midwest Generation and Homer City, higher project income, and higher contribution from Edison Capital, partially offset by higher development and corporate costs.

– MORE –

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

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Earnings from Discontinued Operations

Edison International’s earnings per share from discontinued operations were immaterial for the nine-month period ending September 30, 2007 and $0.23 for the same period last year, with earnings resulting primarily from distributions from EMG’s Lakeland project in administrative receivership in the United Kingdom.

 

    

Year-to-Date

September 30,

        

Earnings (Loss) Per Common Share (Unaudited)

    2007     2006     Change  

Southern California Edison Company

    $ 1.80     $ 1.90     $ (0.10 )

Edison Mission Group

      0.96       0.68       0.28  

EIX parent company and other

      (0.07 )     (0.10 )     0.03  
                        

EIX basic earnings per common share from continuing operations

      2.69       2.48       0.21  
                        

Earnings from discontinued operations

      —         0.23       (0.23 )
                        

EIX basic earnings per common share

    $ 2.69     $ 2.71     $ (0.02 )
                        

EIX diluted earnings per common share

    $ 2.67     $ 2.71     $ (0.04 )
                        
    

Year-to-Date

September 30,

        

Earnings (Loss) (in millions) (Unaudited)

    2007     2006     Change  

Southern California Edison Company

    $ 587     $ 618     $ (31 )

Edison Mission Group

      313       221       92  

EIX parent company and other

      (14 )     (22 )     8  
                        

EIX income from continuing operations

      886       817       69  
                        

Income from discontinued operations

      1       75       (74 )

Cumulative effect of accounting change – net of tax

      —         1       (1 )
                        

EIX net income

    $ 887     $ 893     $ (6 )
                        

– MORE –

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

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Year-to-Date Reconciliation of Core Earnings to Reported Earnings

 

     Year-to-date September 30,        

Core Earnings1 (Loss) Per Common Share (Unaudited)

    2007     2006     Change  

Southern California Edison Company

    $ 1.70     $ 1.58     $ 0.12  

Edison Mission Group

      1.41       0.95       0.46  

EIX parent company and other

      (0.07 )     (0.10 )     0.03  
                        

EIX core earnings per share

      3.04       2.43       0.61  
                        

Non-core items

       

SCE – regulatory/tax items

      0.10       0.25       (0.15 )

SCE – generator settlement

      —         0.07       (0.07 )

EMG – early debt retirement

      (0.45 )     (0.27 )     (0.18 )

EMG – earnings from discontinued operations

      —         0.23       (0.23 )
                        

Total non-core items

      (0.35 )     0.28       (0.63 )
                        

EIX basic earnings per common share

    $ 2.69     $ 2.71     $ (0.02 )
                        
     Year-to-date September 30,        

Core Earnings1 (Loss) (in millions) (Unaudited)

    2007     2006     Change  

Southern California Edison Company

    $ 556     $ 513     $ 43  

Edison Mission Group

      461       309       152  

EIX parent company and other

      (14 )     (22 )     8  
                        

EIX core earnings

      1,003       800       203  
                        

Non-core items

       

SCE – regulatory/tax items

      31       81       (50 )

SCE – generator settlement

      —         24       (24 )

EMG – early debt retirement

      (148 )     (88 )     (60 )

EMG – income from discontinued operations

      1       75       (74 )
                        

Total non-core items

      (116 )     92       (208 )
                        

Cumulative effect of accounting change – net of tax

      —         1       (1 )
                        

Total EIX net income

    $ 887     $ 893     $ (6 )
                        

 

1

See Use of Non-GAAP Financial Measures on page 7. The impact of participating securities is included in EIX parent company earnings (loss) and was $(0.03) per share for year-to-date September 30, 2007 and 2006.

– MORE –

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

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Reconciliation of Core Earnings Guidance to Total Earnings Guidance

 

Core EPS1

    2007 Guidance

Southern California Edison Company

    $1.97 – 2.07

Edison Mission Group

    1.40 – 1.65

EIX parent company and other

    (0.13)
    

EIX core earnings per share

    $3.24 – 3.59
    

Non-Core Items2

   

Southern California Edison Company

    0.10

Edison Mission Group

    (0.44)
    

Total Non-Core Items

    (0.34)
    

EIX basic earnings per common share

    $2.90 – 3.25
    

 

1

The impact of participating securities is included in EIX parent company earnings (loss) and is ($0.04) per share.

 

2

2007 non-core items reflect refinancing costs of $(0.45) and $0.01 per share from discontinued operations for EMG, and a tax benefit of $0.10 per share for SCE.

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 basic earnings per common 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 basic earnings per common share.

– MORE –

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

Page 8 of 13

 

Reminder: Edison International Will Hold a Conference Call Today

Today, Edison International will hold a conference call to discuss its third quarter 2007 financial results at 8 a.m. (Pacific Time). Although two-way participation in the telephone call is limited to financial analysts and investors, all other interested parties are invited to participate in a “listen-only mode” by phone or through 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 ID# is 11400. In addition to the live simulcast, the webcast will remain posted at www.edisoninvestor.com and telephone replays will be available through Friday, November 9, 2007, at the following numbers: (877) 693-4277 – for callers in the U.S.; and (402) 220-0042 – for international callers. The ID# is 11401.

Risk Disclosure Statement

Statements contained in this presentation 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 2006 Form 10-K and subsequent reports filed with the Securities and Exchange Commission and are available on our website: www.edisoninvestor.com. These forward-looking statements represent our expectations only as of the date of this presentation, and Edison International assumes no duty to update them to reflect new information, events or circumstances.

# # #

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.

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER 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

    2007     2006     2007     2006  
     (Unaudited)  

Electric utility

    $ 3,213     $ 3,079     $ 7,895     $ 7,818  

Nonutility power generation

      711       704       1,952       1,674  

Financial services and other

      18       19       55       63  
                                

Total operating revenue

      3,942       3,802       9,902       9,555  
                                

Fuel

      502       486       1,425       1,326  

Purchased power

      1,284       1,036       2,431       2,819  

Provisions for regulatory adjustment clauses – net

      (66 )     115       189       (256 )

Other operation and maintenance

      1,013       909       2,893       2,727  

Depreciation, decommissioning and amortization

      310       293       937       924  

Net loss (gain) on sale of utility property and plant

      1       —         —         (1 )
                                

Total operating expenses

      3,044       2,839       7,875       7,539  
                                

Operating income

      898       963       2,027       2,016  

Interest and dividend income

      40       41       125       120  

Equity in income from partnerships and unconsolidated subsidiaries – net

      35       39       72       53  

Other nonoperating income

      35       16       75       91  

Interest expense – net of amounts capitalized

      (191 )     (199 )     (577 )     (608 )

Loss on early extinguishment of debt

      —         —         (241 )     (143 )

Other nonoperating deductions

      (7 )     (13 )     (31 )     (35 )
                                

Income from continuing operations before tax and minority interest

      810       847       1,450       1,494  

Income tax expense

      263       310       392       516  

Dividends on preferred and preference stock of utility not subject to mandatory redemption

      13       13       38       38  

Minority interest

      69       64       134       123  
                                

Income from continuing operations

      465       460       886       817  

Income (loss) from discontinued operations – net of tax

      (4 )     (2 )     1       75  
                                

Income before accounting change

      461       458       887       892  

Cumulative effect of accounting change – net of tax

      —         —         —         1  
                                

Net income

    $ 461     $ 458     $ 887     $ 893  
                                

Weighted-average shares of common stock outstanding

      326       326       326       326  

Basic earnings (loss) per common share:

         

Continuing operations

    $ 1.41     $ 1.39     $ 2.69     $ 2.48  

Discontinued operations

      (0.01 )     (0.01 )     —         0.23  
                                

Total

    $ 1.40     $ 1.38     $ 2.69     $ 2.71  
                                

Weighted-average shares, including effect of dilutive securities

      330       330       331       331  

Diluted earnings (loss) per common share:

         

Continuing operations

    $ 1.40     $ 1.39     $ 2.67     $ 2.48  

Discontinued operations

      (0.01 )     (0.01 )     —         0.23  
                                

Total

    $ 1.39     $ 1.38     $ 2.67     $ 2.71  
                                

Dividends declared per common share

    $ 0.29     $ 0.27     $ 0.87     $ 0.81  

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

Page 10 of 13

 

Edison International

Consolidated Balance Sheets

 

In millions

   

September 30,

2007

    

December 31,

2006

  
     (Unaudited)        

ASSETS

   

Cash and equivalents

    $ 1,458     $ 1,795  

Restricted cash

      60       59  

Margin and collateral deposits

      137       124  

Receivables, less allowances of $30 and $29 for uncollectible accounts at respective dates

      1,282       1,014  

Accrued unbilled revenue

      506       303  

Fuel inventory

      119       122  

Materials and supplies

      307       270  

Accumulated deferred income taxes – net

      240       203  

Derivative assets

      201       328  

Regulatory assets

      295       554  

Short-term investments

      352       558  

Other current assets

      206       152  
                

Total current assets

      5,163       5,482  
                

Nonutility property – less accumulated provision for depreciation of $1,706 and $1,627 at respective dates

      4,703       4,356  

Nuclear decommissioning trusts

      3,398       3,184  

Investments in partnerships and unconsolidated subsidiaries

      293       308  

Investments in leveraged leases

      2,514       2,495  

Other investments

      112       91  
                

Total investments and other assets

      11,020       10,434  
                

Utility plant, at original cost:

     

Transmission and distribution

      18,492       17,606  

Generation

      1,681       1,465  

Accumulated provision for depreciation

      (5,050 )     (4,821 )

Construction work in progress

      1,584       1,486  

Nuclear fuel, at amortized cost

      224       177  
                

Total utility plant

      16,931       15,913  
                

Regulatory assets

      2,825       2,818  

Restricted cash

      58       91  

Margin and collateral deposits

      19       4  

Derivative assets

      129       131  

Rent payments in excess of levelized rent expense under plant operating leases

      717       556  

Other long-term assets

      958       832  
                

Total long-term assets

      4,706       4,432  
                

Total assets

    $ 37,820     $ 36,261  
                

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

Page 11 of 13

 

Edison International

Consolidated Balance Sheets

 

In millions, except share amounts

   

September 30,

2007

    

December 31,

2006

     (Unaudited)      

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Long-term debt due within one year

    $ 236     $ 488

Accounts payable

      850       926

Accrued taxes

      313       155

Accrued interest

      204       196

Counterparty collateral

      42       36

Customer deposits

      217       198

Book overdrafts

      254       140

Derivative liabilities

      200       181

Regulatory liabilities

      1,316       1,000

Other current liabilities

      986       983
              

Total current liabilities

      4,618       4,303
              

Long-term debt

      9,056       9,101
              

Accumulated deferred income taxes – net

      5,291       5,297

Accumulated deferred investment tax credits

      117       122

Customer advances

      158       160

Derivative liabilities

      86       86

Power-purchase contracts

      25       32

Accumulated provision for pensions and benefits

      1,164       1,099

Asset retirement obligations

      2,831       2,759

Regulatory liabilities

      3,315       3,140

Other deferred credits and other long-term liabilities

      1,546       1,267
              

Total deferred credits and other liabilities

      14,533       13,962
              

Total liabilities

      28,207       27,366
              

Minority interest

      309       271
              

Preferred and preference stock of utility not subject to mandatory redemption

      915       915
              

Common stock, no par value (325,811,206 shares outstanding at each date)

      2,116       2,080

Accumulated other comprehensive income (loss)

      (33 )     78

Retained earnings

      6,306       5,551
              

Total common shareholders’ equity

      8,389       7,709
              

Total liabilities and shareholders’ equity

    $ 37,820     $ 36,261
              

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

Page 12 of 13

 

Edison International

Consolidated Statements of Cash Flows

 

    

Nine Months Ended

September 30,

  

In millions

    2007     2006  
     (Unaudited)  

Cash flows from operating activities:

     

Net income

    $ 887     $ 893  

Less: income from discontinued operations – net of tax

      1       75  
                

Income from continuing operations

      886       818  
                

Adjustments to reconcile to net cash provided by operating activities:

     

Cumulative effect of accounting change – net of tax

      —         (1 )

Depreciation, decommissioning and amortization

      937       924  

Realized loss on nuclear decommissioning trusts

      42       —    

Other amortization

      94       71  

Minority interest

      134       123  

Deferred income taxes and investment tax credits

      (83 )     (154 )

Equity in income from partnerships and unconsolidated subsidiaries

      (72 )     (53 )

Income from leveraged leases

      (46 )     (52 )

Levelized rent expense

      (161 )     (160 )

Loss on early extinguishment of debt

      241       143  

Regulatory assets – long-term

      53       117  

Regulatory liabilities – long-term

      (4 )     (151 )

Derivative assets – long-term

      8       (73 )

Derivative liabilities – long-term

      (40 )     139  

Other assets

      (25 )     (90 )

Other liabilities

      276       5  

Margin and collateral deposits – net of collateral received

      (20 )     462  

Receivables and accrued unbilled revenue

      (467 )     (286 )

Derivative assets – short-term

      72       204  

Derivative liabilities – short-term

      (80 )     5  

Inventory and other current assets

      (56 )     (63 )

Regulatory assets – short-term

      259       (20 )

Regulatory liabilities – short-term

      316       606  

Accrued interest and taxes

      366       562  

Accounts payable and other current liabilities

      (77 )     (235 )

Distributions and dividends from unconsolidated entities

      43       19  

Operating cash flows from discontinued operations

      1       82  
                

Net cash provided by operating activities

      2,597       2,942  
                

Cash flows from financing activities:

     

Long-term debt issued

      2,930       1,877  

Premium paid on extinguishment of debt and issuance costs

      (240 )     (145 )

Long-term debt repaid

      (3,061 )     (1,954 )

Issuance of preference stock

      —         196  

Rate reduction notes repaid

      (178 )     (177 )

Change in book overdrafts

      131       (31 )

Shares purchased for stock-based compensation

      (192 )     (124 )

Proceeds from stock option exercises

      77       45  

Excess tax benefits related to stock option exercises

      39       18  

Dividends to minority shareholders

      (76 )     (114 )

Dividends paid

      (283 )     (264 )
                

Net cash used by financing activities

    $ (853 )   $ (673 )
                

EDISON INTERNATIONAL REPORTS 2007 THIRD QUARTER FINANCIAL RESULTS

Page 13 of 13

 

Edison International

Consolidated Statements of Cash Flows

 

    

Nine Months Ended

September 30,

  

In millions

    2007     2006  
     (Unaudited)  

Cash flows from investing activities:

     

Capital expenditures

    $ (1,979 )   $ (1,757 )

Purchase of interest of acquired companies

      (28 )     (18 )

Proceeds from sale of property and interests in projects

      —         43  

Proceeds from nuclear decommissioning trust sales

      2,866       2,145  

Purchases of nuclear decommissioning trust investments

      (2,967 )     (2,253 )

Proceeds from partnerships and unconsolidated subsidiaries, net of investment

      17       53  

Maturities and sales of short-term investments

      7,380       4,608  

Purchase of short-term investments

      (7,174 )     (4,764 )

Restricted cash

      36       (10 )

Customer advances for construction and other investments

      (232 )     (5 )
                

Net cash used by investing activities

      (2,081 )     (1,958 )
                

Net Increase (decrease) in cash and equivalents

      (337 )     311  

Cash and equivalents, beginning of period

      1,795       1,893  
                

Cash and equivalents, end of period

    $ 1,458     $ 2,204