Edison International Press Release

EX-99.1 2 dex991.htm EDISON INTERNATIONAL PRESS RELEASE Edison International Press Release

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 Fourth Quarter and Full Year 2008 Earnings

•

2008 GAAP earnings were $3.69 per share compared to $3.33 per share in 2007.

•

Core earnings increased 4 percent in 2008 to $3.84 per share from $3.69 per share last year.

•

Fourth quarter 2008 GAAP earnings were $0.66 per share compared to $0.64 per share in the same quarter last year.

•

Core earnings in the fourth quarter were $0.66 per share compared to $0.65 per share in the same quarter last year.

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Edison International will provide 2009 earnings guidance after Southern California Edison Company has received a California Public Utilities Commission (CPUC) decision on its 2009 General Rate Case.

ROSEMEAD, Calif., March 2, 2009 – Edison International (NYSE: EIX) today reported fourth quarter and full year 2008 results.

“Edison International had solid performance in 2008 amidst the dramatic decline in both the economy and financial markets,” said Theodore F. Craver, Jr., chairman and chief executive officer of Edison International.

Fourth Quarter Earnings Detail

Southern California Edison Company’s (SCE) fourth quarter 2008 GAAP and core earnings were $0.43 per share, compared to $0.37 per share in the same quarter last year. This increase was primarily due to higher operating income related to rate base growth, including $0.05 per share of energy efficiency rewards.

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Note: GAAP earnings refer to net income and GAAP earnings per share refer to basic earnings per share throughout this release. Core earnings is a non-GAAP financial measure. See Reconciliation of Core Earnings to GAAP Earnings.

Edison International Reports Fourth Quarter 2008 Financial Results

Page 2 of 11

Edison Mission Group’s (EMG) GAAP earnings were $0.25 per share in the fourth quarter of 2008 compared to $0.29 per share in the fourth quarter of 2007. Excluding a $0.01 per share charge for discontinued operations in the 2007 period, EMG’s core earnings decreased $0.05 per share. A loss arising from the termination of a natural gas turbine supply agreement, lower results from the Big 4 projects, lower interest income, and lower trading income at Edison Mission Marketing & Trading (EMMT) were partially offset by higher operating income at Midwest Generation, positive results from new wind projects in operation, and lower corporate expenses.

Full-Year Earnings Detail

SCE’s GAAP earnings in 2008 were $2.10 per share, a decrease of $0.07 per share compared to $2.17 per share in 2007. SCE’s 2008 results include a non-core charge of $0.15 per share associated with the CPUC decision on SCE’s performance-based ratemaking mechanism. SCE’s 2007 results include a non-core tax benefit of $0.10 per share from the resolution of the income tax treatment of certain environmental remediation costs. Excluding these non-core items, SCE’s 2008 core earnings were $2.25 per share compared to $2.07 per share in 2007. This $0.18 per share core earnings increase is primarily attributable to higher operating income related to rate base growth, including authorized energy efficiency rewards, and lower net interest expense.

EMG’s GAAP earnings in 2008 were $1.72 per share compared to $1.26 per share in 2007. EMG’s 2007 results include non-core charges of $0.46 per share, mainly due to $0.45 per share for early debt extinguishment costs. EMG’s 2008 core earnings remained at the 2007 level of $1.72 per share. Higher operating income at Midwest Generation, positive results from new wind projects in operation, and higher trading income at EMMT were offset by lower results from the Big 4 projects, lower interest income, a loss arising from the termination of a natural gas turbine supply agreement, and lower results at Homer City and Edison Capital.

Edison International parent company and other GAAP earnings were down from the prior year due to higher net interest expense.

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 Fourth Quarter 2008 Financial Results

Page 3 of 11

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.

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 and other. EPS and core EPS by principal operating subsidiary are reconciled to GAAP earnings per share.

Reminder: Edison International Will Hold a Conference Call Today

Today, Edison International will hold a conference call to discuss its fourth quarter and full year 2008 financial results at 8 a.m. (Pacific Standard Time). Two-way participation in the telephone call is limited to financial analysts and investors, while all other interested parties are invited to participate in a simultaneous webcast at www.edisoninvestor.com. A presentation accompanying management’s comments on the conference call will be available on the web site as well at www.edisoninvestor.com. The domestic call-in number is (866) 392-9199 and the number for international callers is (973) 532-4945. The ID# is 83736743. In addition to the live simulcast, the webcast will remain posted at www.edisoninvestor.com and telephone replays will be available through March 9, 2009, at the following numbers: (800) 642-1687 for callers in the United States and (706) 645-9291 for international callers.

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 Fourth Quarter 2008 Financial Results

Page 4 of 11

Summary Financial Schedules

Fourth Quarter GAAP Earnings Per Share


	Quarter Ended December 31,
Earnings (Loss) Per Share (Unaudited)¹	2008			2007			Change
SCE	$	0.43		$	0.37		$	0.06
EMG		0.25			0.30			(0.05	)
EIX parent company and other		(0.02	)		(0.02	)		—

EIX GAAP earnings from continuing operations		0.66			0.65			0.01

EIX GAAP loss from discontinued operations		—			(0.01	)		0.01

EIX GAAP earnings	$	0.66		$	0.64		$	0.02

EIX diluted earnings	$	0.66		$	0.64		$	0.02

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 quarters ended December 31, 2008 and 2007.

Fourth Quarter Reconciliation of Core Earnings Per Share to GAAP Earnings Per Share


	Quarter Ended December 31,
Earnings (Loss) Per Share (Unaudited)	2008			2007			Change
Core Earnings¹
SCE	$	0.43		$	0.37		$	0.06
EMG		0.25			0.30			(0.05	)
EIX parent company and other		(0.02	)		(0.02	)		—

EIX core earnings		0.66			0.65			0.01

Non-core items
EMG – discontinued operations		—			(0.01	)		0.01

Total non-core items		—			(0.01	)		0.01

EIX GAAP earnings¹	$	0.66		$	0.64		$	0.02

¹	See Use of Non-GAAP Financial Measures on page 3. 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 quarters ended December 31, 2008 and 2007.

Fourth Quarter GAAP Earnings


	Quarter Ended December 31,
Earnings (Loss) (in millions) (Unaudited)	2008			2007			Change
SCE	$	141		$	120		$	21
EMG		81			99			(18	)
EIX parent company and other		(5	)		(5	)		—

EIX GAAP earnings from continuing operations		217			214			3

EIX GAAP loss from discontinued operations		—			(3	)		3

EIX GAAP earnings	$	217		$	211		$	6

Edison International Reports Fourth Quarter 2008 Financial Results

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Fourth Quarter Reconciliation of Core Earnings to GAAP Earnings


	Quarter Ended December 31,
Earnings (Loss) (in millions) (Unaudited)	2008			2007			Change
Core Earnings¹
SCE	$	141		$	120		$	21
EMG		81			99			(18	)
EIX parent company and other		(5	)		(5	)		—

EIX core earnings		217			214			3

Non-core items
EMG – discontinued operations		—			(3	)		3

Total non-core items		—			(3	)		3

EIX GAAP earnings¹	$	217		$	211		$	6

¹	See Use of Non-GAAP Financial Measures on page 3.

Full-Year GAAP Earnings Per Share


	Full Year
Earnings (Loss) Per Share (Unaudited)¹	2008			2007			Change
SCE	$	2.10		$	2.17		$	(0.07	)
EMG		1.72			1.27			0.45
EIX parent company and other		(0.13	)		(0.10	)		(0.03	)

EIX GAAP earnings from continuing operations		3.69			3.34			0.35

EIX GAAP loss from discontinued operations		—			(0.01	)		0.01

EIX GAAP earnings	$	3.69		$	3.33		$	0.36

EIX diluted earnings	$	3.68		$	3.31		$	0.37

¹	The impact of participating securities on the per share amounts is included in EIX parent company and other and was $(0.05) per share for 2008 and $(0.04) per share for 2007.

Full-Year Reconciliation of Core Earnings Per Share to GAAP Earnings Per Share


	Full Year
Earnings (Loss) Per Share (Unaudited)¹	2008			2007			Change
Core Earnings¹
SCE	$	2.25		$	2.07		$	0.18
EMG		1.72			1.72			—
EIX parent company and other		(0.13	)		(0.10	)		(0.03	)

EIX core earnings		3.84			3.69			0.15

Non-core items
SCE – regulatory/tax items		(0.15	)		0.10			(0.25	)
EMG – early debt retirement		—			(0.45	)		0.45
Discontinued operations		—			(0.01	)		0.01

Total non-core items		(0.15	)		(0.36	)		0.21

EIX GAAP earnings¹	$	3.69		$	3.33		$	0.36

¹	See Use of Non-GAAP Financial Measures on page 3. The impact of participating securities on the per share amounts is included in EIX parent company and other and was $(0.05) per share for 2008 and $(0.04) per share for 2007.

Edison International Reports Fourth Quarter 2008 Financial Results

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Full-Year GAAP Earnings


	Full Year
Earnings (Loss) (in millions) (Unaudited)	2008			2007			Change
SCE	$	683		$	707		$	(24	)
EMG		561			412			149
EIX parent company and other		(29	)		(19	)		(10	)

EIX GAAP earnings from continuing operations		1,215			1,100			115

EIX GAAP loss from discontinued operations		—			(2	)		2

EIX GAAP earnings	$	1,215		$	1,098		$	117

Full-Year Reconciliation of Core Earnings to GAAP Earnings


	Full Year
Earnings (Loss) (in millions) (Unaudited)	2008			2007			Change
Core Earnings¹
SCE	$	732		$	676		$	56
EMG		561			560			1
EIX parent company and other		(29	)		(19	)		(10	)

EIX core earnings		1,264			1,217			47

Non-core items
SCE – regulatory/tax items		(49	)		31			(80	)
EMG – early debt retirement		—			(148	)		148
EMG – discontinued operations		—			(2	)		2

Total non-core items		(49	)		(119	)		70

EIX GAAP earnings	$	1,215		$	1,098		$	117

¹	See Use of Non-GAAP Financial Measures on page 3.

Edison International Reports Fourth Quarter 2008 Financial Results

Page 7 of 11

Edison International

Consolidated Statements of Income


	Quarter Ended December 31,						Year Ended December 31,
In millions, except per-share amounts	2008			2007			2008			2007
Electric utility	$	2,551		$	2,514		$	11,246		$	10,231
Nonutility power generation		664			623			2,808			2,575
Financial services and other		13			7			58			62

Total operating revenue		3,228			3,144			14,112			12,868

Fuel		421			449			2,147			1,875
Purchased power		793			731			3,845			3,235
Other operation and maintenance		1,180			1,175			4,288			4,065
Depreciation, decommissioning and amortization		338			306			1,313			1,181
Contract buyout/termination and other		30			2			(44	)		3

Total operating expenses		2,762			2,663			11,549			10,359

Operating income		466			481			2,563			2,509
Interest and dividend income		18			29			62			154
Equity in income from partnerships and unconsolidated subsidiaries – net		(9	)		7			31			79
Other nonoperating income		35			21			113			95
Interest expense – net of amounts capitalized		(190	)		(175	)		(700	)		(752	)
Other nonoperating deductions		(10	)		(13	)		(125	)		(45	)
Loss on early extinguishment of debt		—			—			—			(241	)

Income from continuing operations before tax and minority interest		310			350			1,944			1,799
Income tax expense		75			100			596			492
Dividends on preferred and preference stock of utility not subject to mandatory redemption		13			13			51			51
Minority interest		5			23			82			156

Income from continuing operations		217			214			1,215			1,100
Income (loss) from discontinued operations – net of tax		—			(3	)		—			(2	)

Income before accounting change		217			211			1,215			1,098
Cumulative effect of accounting change – net of tax		—			—			—			—

Net income	$	217		$	211		$	1,215		$	1,098

Weighted-average shares of common stock outstanding		326			326			326			326
Basic earnings (loss) per share:
Continuing operations	$	0.66		$	0.65		$	3.69		$	3.34
Discontinued operations		—			(0.01	)		—			(0.01	)

Total	$	0.66		$	0.64		$	3.69		$	3.33

Weighted-average shares, including effect of dilutive securities		328			330			329			331
Diluted earnings (loss) per share:
Continuing operations	$	0.66		$	0.65		$	3.68		$	3.32
Discontinued operations		—			(0.01	)		—			(0.01	)

Total	$	0.66		$	0.64		$	3.68		$	3.31

Dividends declared per common share	$	0.310		$	0.305		$	1.225		$	1.175

Edison International Reports Fourth Quarter 2008 Financial Results

Page 8 of 11

Edison International

Consolidated Balance Sheets


In millions	December 31, 2008			December 31, 2007
ASSETS
Cash and equivalents	$	3,916		$	1,441
Short-term investments		7			81
Receivables, less allowances of $39 and $34 for uncollectible accounts at respective dates		1,006			1,033
Accrued unbilled revenue		328			370
Fuel inventory		163			116
Materials and supplies		390			316
Derivative assets		327			109
Restricted cash		3			3
Margin and collateral deposits		105			121
Regulatory assets		605			197
Accumulated deferred income taxes – net		104			167
Other current assets		399			290

Total current assets		7,353			4,244

Nonutility property – less accumulated provision for depreciation of $2,019 and $1,765 at respective dates		5,374			4,906
Nuclear decommissioning trusts		2,524			3,378
Investments in partnerships and unconsolidated subsidiaries		229			272
Investments in leveraged leases		2,467			2,473
Other investments		89			96

Total investments and other assets		10,683			11,125

Utility plant, at original cost:
Transmission and distribution		20,006			18,940
Generation		1,819			1,767
Accumulated provision for depreciation		(5,570	)		(5,174	)
Construction work in progress		2,454			1,693
Nuclear fuel, at amortized cost		260			177

Total utility plant		18,969			17,403

Derivative assets		244			122
Restricted cash		43			48
Rent payments in excess of levelized rent expense under plant operating leases		878			716
Regulatory assets		5,414			2,721
Other long-term assets		1,031			1,144

Total long-term assets		7,610			4,751

Total assets	$	44,615		$	37,523

Edison International Reports Fourth Quarter 2008 Financial Results

Page 9 of 11

Edison International

Consolidated Balance Sheets


In millions, except share amounts	December 31, 2008		December 31, 2007
LIABILITIES AND SHAREHOLDERS’ EQUITY
Short-term debt	$	2,143	$	500
Long-term debt due within one year		174		18
Accounts payable		1,031		979
Accrued taxes		590		49
Accrued interest		187		160
Counterparty collateral		8		42
Customer deposits		228		219
Book overdrafts		224		212
Derivative liabilities		178		125
Regulatory liabilities		1,111		1,019
Other current liabilities		823		933

Total current liabilities		6,697		4,256

Long-term debt		10,950		9,016

Accumulated deferred income taxes – net		5,717		5,196
Accumulated deferred investment tax credits		109		114
Customer advances		137		155
Derivative liabilities		776		101
Accumulated provision for pensions and benefits		2,860		1,089
Asset retirement obligations		3,042		2,892
Regulatory liabilities		2,481		3,433
Other deferred credits and other long-term liabilities		1,137		1,617

Total deferred credits and other liabilities		16,259		14,597

Total liabilities		33,906		27,869

Commitments and contingencies
Minority interest		285		295

Preferred and preference stock of utility not subject to mandatory redemption		907		915

Common stock, no par value (325,811,206 shares outstanding at each date)		2,272		2,225
Accumulated other comprehensive income (loss)		167		(92	)
Retained earnings		7,078		6,311

Total common shareholders’ equity		9,517		8,444

Total liabilities and shareholders’ equity	$	44,615	$	37,523

Edison International Reports Fourth Quarter 2008 Financial Results

Page 10 of 11

Edison International

Consolidated Statements of Cash Flows


	Year Ended December 31,
In millions	2008			2007			2006
Cash flows from operating activities:
Net income	$	1,215		$	1,098		$	1,181
Less: income (loss) from discontinued operations		—			(2	)		97

Income from continuing operations		1,215			1,100			1,084

Adjustments to reconcile to net cash provided by operating activities:
Cumulative effect of accounting change – net of tax		—			—			(1	)
Depreciation, decommissioning and amortization		1,313			1,181			1,105
Net earnings in nuclear ARO regulatory assets and liabilities		(10	)		143			130
Other amortization		106			111			99
Contract buyout/termination and other		(44	)		3			(2	)
Stock-based compensation		34			37			47
Minority interest		82			156			139
Deferred income taxes and investment tax credits		207			(39	)		(136	)
Equity in income from partnerships and unconsolidated subsidiaries-net		(31	)		(75	)		(76	)
Income from leveraged leases		(51	)		(49	)		(67	)
Regulatory assets		(2,725	)		503			74
Regulatory liabilities		(221	)		176			336
Loss on early extinguishment of debt		—			241			146
Levelized rent expense		(162	)		(160	)		(161	)
Derivative assets		41			(9	)		260
Derivative liabilities		808			(184	)		285
Other assets		224			(180	)		(231	)
Other liabilities		1,344			195			309
Margin and collateral deposits – net of collateral received		(19	)		75			193
Receivables and accrued unbilled revenue		170			(59	)		208
Inventory and other current assets		(204	)		(121	)		(68	)
Book overdrafts		16			72			—
Accrued interest and taxes		367			12			(123	)
Accounts payable and other current liabilities		(242	)		33			(137	)
Distributions and dividends from unconsolidated entities		(8	)		33			61
Operating cash flows from discontinued operations		—			(2	)		94

Net cash provided by operating activities		2,210			3,193			3,568

Cash flows from financing activities:
Long-term debt issued		2,632			2,930			2,350
Premiums paid on extinguishment of debt and long-term debt issuance costs		(21	)		(241	)		(181	)
Long-term debt repaid		(295	)		(3,215	)		(2,110	)
Bonds repurchased		(212	)		(37	)		—
Issuance of preference stock		—			—			196
Preferred stock redeemed		(7	)		—			—
Rate reduction notes repaid		—			(246	)		(246	)
Book overdrafts		—			—			(118	)
Short-term debt financing – net		1,643			500			—
Contribution from minority shareholders		12			—			—
Shares purchased for stock-based compensation		(66	)		(215	)		(173	)
Proceeds from stock option exercises		30			86			66
Excess tax benefits related to stock-based awards		10			45			27
Dividends to minority shareholders		(119	)		(106	)		(162	)
Dividends paid		(397	)		(378	)		(352	)

Net cash provided (used) by financing activities	$	3,210		$	(877	)	$	(703	)

Edison International Reports Fourth Quarter 2008 Financial Results

Page 11 of 11

Edison International

Consolidated Statements of Cash Flows


	Year Ended December 31,
In millions	2008			2007			2006
Cash flows from investing activities:
Capital expenditures	$	(2,824	)	$	(2,826	)	$	(2,536	)
Purchase of interest of acquired companies		(19	)		(33	)		(18	)
Proceeds from sale of property and interest in projects		113			2			89
Proceeds from nuclear decommissioning trust sales		3,130			3,697			3,010
Purchases of nuclear decommissioning trusts investments and other		(3,137	)		(3,830	)		(3,150	)
Proceeds from partnerships and unconsolidated subsidiaries, net of investment		65			42			25
Maturities and sales of short-term investments		96			9,953			7,128
Purchases of short-term investments		(22	)		(9,476	)		(7,474	)
Restricted cash		4			99			13
Customer advances for construction and other investments		(351	)		(298	)		(50	)

Net cash used by investing activities		(2,945	)		(2,670	)		(2,963	)

Net increase (decrease) in cash and equivalents		2,475			(354	)		(98	)
Cash and equivalents, beginning of year		1,441			1,795			1,893

Cash and equivalents – end of year	$	3,916		$	1,441		$	1,795