EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO

 

FOR IMMEDIATE RELEASE

    Media relations contact:
   Charles Coleman, (626) 302-7982
  

 

Investor relations contact:

Scott Cunningham, (626) 302-2540

  

Edison International Reports First Quarter 2011 Financial Results

ROSEMEAD, Calif., May 2, 2011 – Edison International (NYSE: EIX) today reported first quarter 2011 basic earnings of $0.61 per share, compared to $0.72 per share in the same quarter last year. Core earnings in the first quarter of 2011 were $0.62 per share compared to $0.82 per share in the first quarter of 2010. Higher first quarter earnings at Southern California Edison (SCE) were more than offset by lower results at Edison Mission Group (EMG).

“Our first quarter results are consistent with our 2011 earnings outlook,” said Ted Craver, chairman and chief executive officer of Edison International.

First Quarter Earnings Detail

SCE’s first quarter 2011 basic earnings were $0.68 per share compared to $0.50 per share in the first quarter of 2010. This increase reflects a non-core charge of $0.12 per share related to federal health care legislation recorded during the first quarter of 2010. Core earnings were $0.68 per share for the first quarter of 2011 compared to $0.62 per share in the same quarter last year. The increase in core earnings was primarily due to rate base growth.

EMG’s first quarter 2011 basic losses were $(0.06) per share compared to earnings of $0.24 per share in the first quarter of 2010. Core losses were $(0.05) per share compared to core earnings of $0.22 per share in the same quarter last year. The decline in results was driven by lower generation, realized energy prices and trading revenue. In addition, EMG recorded income from two projects of $0.06 per share in the first quarter of 2010 without comparable amounts in 2011.

Edison International parent company and other losses were $(0.01) per share in the first quarter of 2011, compared to losses of $(0.02) per share in the first quarter of 2010.

-more-

Note: Basic earnings (losses) per share refer to basic earnings (losses) per common share attributable to Edison International throughout this release. Core earnings (losses) is a non-GAAP financial measure. See Reconciliation of Core Earnings to Basic Earnings and Reconciliation of Core Earnings Per Share Guidance to Revised Basic Earnings Per Share Guidance.

Edison International Reports First Quarter 2011 Financial Results

Page 2 of 10

 

2011 Earnings Guidance

Previously announced annual core earnings guidance of $2.60–$2.90 per share is reaffirmed. See the risk disclosure statement on page 3 and the financial teleconference presentation accompanying the company’s earnings conference call for further information.

Reconciliation of Core Earnings Guidance to

Basic Earnings Guidance1

 

Core Earnings Per Share1

    February 28, 2011
2011  Earnings Guidance		     May 2, 2011
2011  Earnings Guidance		  

EIX core earnings

    $ 2.60 – $2.90      $ 2.60 – $2.90   

Non-Core Items2

      —        (0.01 ) 
                

EIX basic earnings per share

    $ 2.60 – $2.90      $ 2.59 – $2.89   
                

Midpoint of 2011 core guidance by business segment:

     

SCE

    $ 3.08      $ 3.08   

EMG

      (0.19 )      (0.19 ) 

EIX parent company and other

      (0.14 )      (0.14 ) 
                

Total

    $ 2.75      $ 2.75   
                

 

1 See Use of Non-GAAP Financial Measures on page 3. Basic earnings per share refer to basic earnings per common share attributable to Edison International common shareholders.
2 Represents results of discontinued operations for the first quarter of 2011.

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.

# # #

Edison International Reports First Quarter 2011 Financial Results

Page 3 of 10

 

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 (losses) and earnings (losses) per share (EPS) by principal operating subsidiary internally for financial planning and for analysis of performance. We also use core earnings (losses) and EPS by principal operating subsidiary when communicating with analysts and investors regarding our earnings results and outlook to facilitate comparisons of the Company’s performance from period to period.

Core earnings (losses) is a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings and core earnings per share are defined as GAAP earnings and GAAP earnings per share excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. GAAP earnings refer to net income attributable to Edison International common shareholders and Edison International GAAP earnings per share refers to basic earnings per common share attributable to Edison International common shareholders. Core earnings are reconciled to basic earnings in the attached tables. EPS by principal operating subsidiary is based on the principal operating subsidiaries’ net income (loss) 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 basic EPS.

Reminder: Edison International Will Hold a Conference Call Today

Today, Edison International will hold a conference call to discuss its first quarter 2011 financial results at 8 a.m. (Pacific Daylight 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 at www.edisoninvestor.com. The domestic call-in number is (800) 369-2198 and the number for international callers is (773) 756-4618. 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 May 9, 2011 at the following numbers: (800) 944-3336 for callers in the United States and (203) 369-3426 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. 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. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis” in Edison International’s 2010 Form 10-K, most recent Form 10-Q, and other reports filed with the Securities and Exchange Commission which are available on our web site: www.edisoninvestor.com.

Edison International Reports First Quarter 2011 Financial Results

Page 4 of 10

 

Summary Financial Schedules

First Quarter Basic Earnings Per Share

 

     Quarter Ended March 31,        

Earnings (Losses) Per Common Share

Attributable to Edison International (Unaudited)

    2011     2010     Change  

SCE

    $ 0.68      $ 0.50      $ 0.18   

EMG

      (0.05 )      0.22        (0.27 ) 

EIX parent company and other

      (0.01 )      (0.02 )      0.01   
                        

EIX earnings from continuing operations

      0.62        0.70        (0.08 ) 
                        

EIX earnings (losses) from discontinued operations

      (0.01 )      0.02        (0.03 ) 
                        

EIX basic earnings1

    $ 0.61      $ 0.72      $ (0.11 ) 
                        

EIX diluted earnings

    $ 0.61      $ 0.72      $ (0.11 ) 
                        

 

1 The impact of participating securities on the per share amounts is included in EIX parent company and other and was zero per share for both quarters.

First Quarter Reconciliation of Core Earnings Per Share to Basic Earnings Per Share

 

     Quarter Ended March 31,        

Earnings (Losses) Per Common Share

Attributable to Edison International (Unaudited)

    2011     2010     Change  

Core Earnings (losses)1

       

SCE

    $ 0.68      $ 0.62      $ 0.06   

EMG

      (0.05 )      0.22        (0.27 ) 

EIX parent company and other

      (0.01 )      (0.02 )      0.01   
                        

EIX core earnings

      0.62        0.82        (0.20 ) 
                        

Non-core items

       

SCE – Regulatory items

      —          (0.12 )      0.12   

EMG – Earnings (losses) from discontinued operations

      (0.01 )      0.02        (0.03 ) 
                        

Total non-core items

      (0.01 )      (0.10 )      0.09   
                        

EIX basic earnings1

    $ 0.61      $ 0.72      $ (0.11 ) 
                        

 

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 zero per share for both quarters.

Edison International Reports First Quarter 2011 Financial Results

Page 5 of 10

 

First Quarter Basic Earnings

 

     Quarter Ended March 31,        

Earnings (Losses) (in millions)

Attributable to Edison International (Unaudited)

    2011     2010     Change  

SCE

    $ 222      $ 164      $ 58   

EMG

      (18 )      71        (89 ) 

EIX parent company and other

      (2 )      (5 )      3   
                        

EIX earnings from continuing operations

      202        230        (28 ) 

EIX earnings (losses) from discontinued operations

      (2 )      6        (8 ) 
                        

EIX basic earnings

    $ 200      $ 236      $ (36 ) 
                        

First Quarter Reconciliation of Core Earnings to Basic Earnings

 

     Quarter Ended March 31,        

Earnings (Losses) (in millions)

Attributable to Edison International (Unaudited)

    2011     2010     Change  

Core Earnings (losses)1

       

SCE

    $ 222      $ 203      $ 19   

EMG

      (18 )      71        (89 ) 

EIX parent company and other

      (2 )      (5 )      3   
                        

EIX core earnings

      202        269        (67 ) 
                        

Non-core items

       

SCE – Regulatory items

      —          (39 )      39   

EMG – Earnings (losses) from discontinued operations

      (2 )      6        (8 ) 
                        

Total non-core items

      (2 )      (33 )      31   
                        

EIX basic earnings

    $ 200      $ 236      $ (36 ) 
                        

 

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

Edison International Reports First Quarter 2011 Financial Results

Page 6 of 10

 

Consolidated Statements of Income

 

 

Consolidated Statements of Income

 

     Three months ended
March 31,		  

(in millions, except per-share amounts, unaudited)

    2011     2010  

Electric utility

    $ 2,230      $ 2,159   

Competitive power generation

      552        652   

Other

      —          (1 ) 
                

Total operating revenue

      2,782        2,810   
                

Fuel

      258        295   

Purchased power

      508        608   

Operations and maintenance

      1,149        1,037   

Depreciation, decommissioning and amortization

      417        369   

Lease terminations and other

      —          3   
                

Total operating expenses

      2,332        2,312   
                

Operating income

      450        498   

Interest and dividend income

      4        19   

Equity in income (loss) from unconsolidated affiliates – net

      (5 )      18   

Other income

      41        34   

Interest expense – net of amounts capitalized

      (196 )      (168 ) 

Other expenses

      (13 )      (8 ) 
                

Income from continuing operations before income taxes

      281        393   

Income tax expense

      65        150   
                

Income from continuing operations

      216        243   

Income (loss) from discontinued operations – net of tax

      (2 )      6   
                

Net income

      214        249   

Dividends on preferred and preference stock of utility

      14        13   
                

Net income attributable to Edison International common shareholders

    $ 200      $ 236   
                

Amounts attributable to Edison International common shareholders:

     

Income from continuing operations, net of tax

    $ 202      $ 230   

Income (loss) from discontinued operations, net of tax

      (2 )      6   
                

Net income attributable to Edison International common shareholders

    $ 200      $ 236   
                

Basic earnings per common share attributable to Edison International common shareholders:

     

Weighted-average shares of common stock outstanding

      326        326   

Continuing operations

    $ 0.62      $ 0.70   

Discontinued operations

      (0.01 )      0.02   
                

Total

    $ 0.61      $ 0.72   
                

Diluted earnings per common share attributable to Edison International common shareholders:

     

Weighted-average shares of common stock outstanding, including effect of dilutive securities

      328        328   

Continuing operations

    $ 0.62      $ 0.70   

Discontinued operations

      (0.01 )      0.02   
                

Total

    $ 0.61      $ 0.72   

Dividends declared per common share

    $ 0.320      $ 0.315   
                

Edison International Reports First Quarter 2011 Financial Results

Page 7 of 10

 

Consolidated Balance Sheets

 

 

Consolidated Balance Sheets

 

(in millions, unaudited)

    March 31,
2011		      December 31,
2010		  

ASSETS

      

Cash and cash equivalents

    $ 1,298       $ 1,389   

Receivables, less allowances of $87 and $85 for uncollectible accounts at respective dates

      782         931   

Accrued unbilled revenue

      410         442   

Inventory

      586         568   

Prepaid taxes

      533         390   

Derivative assets

      115         133   

Restricted cash

      10         2   

Margin and collateral deposits

      50         65   

Regulatory assets

      407         378   

Other current assets

      145         124   
                 

Total current assets

      4,336         4,422   
                 

Nuclear decommissioning trusts

      3,619         3,480   

Investments in unconsolidated affiliates

      544         559   

Other investments

      232         223   
                 

Total investments

      4,395         4,262   
                 

Utility property, plant and equipment, less accumulated depreciation of $6,488 and $6,319 at respective dates

      25,276         24,778   

Competitive power generation and other property, plant and equipment, less accumulated depreciation of $1,940 and $1,865 at respective dates

      5,437         5,406   
                 

Total property, plant and equipment

      30,713         30,184   
                 

Derivative assets

      355         437   

Restricted deposits

      40         47   

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

      1,219         1,187   

Regulatory assets

      4,450         4,347   

Other long-term assets

      653         644   
                 

Total long-term assets

      6,717         6,662   
                 

Total assets

    $ 46,161       $ 45,530   
                 

Edison International Reports First Quarter 2011 Financial Results

Page 8 of 10

 

Consolidated Balance Sheets

 

 

Consolidated Balance Sheets

 

(in millions, except share amounts, unaudited)

    March 31,
2011		     December 31,
2010		  

LIABILITIES AND EQUITY

     

Short-term debt

    $ 334      $ 115   

Current portion of long-term debt

      53        48   

Accounts payable

      1,059        1,362   

Accrued taxes

      54        52   

Accrued interest

      221        205   

Customer deposits

      211        217   

Derivative liabilities

      222        217   

Regulatory liabilities

      778        738   

Other current liabilities

      761        998   
                

Total current liabilities

      3,693        3,952   
                

Long-term debt

      12,522        12,371   
                

Deferred income taxes

      5,908        5,625   

Deferred investment tax credits

      120        122   

Customer advances

      112        112   

Derivative liabilities

      476        468   

Pensions and benefits

      2,282        2,260   

Asset retirement obligations

      2,576        2,561   

Regulatory liabilities

      4,733        4,524   

Other deferred credits and other long-term liabilities

      2,030        2,041   
                

Total deferred credits and other liabilities

      18,237        17,713   
                

Total liabilities

      34,452        34,036   
                

Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date)

      2,340        2,331   

Accumulated other comprehensive loss

      (77 )      (76 ) 

Retained earnings

      8,413        8,328   
                

Total Edison International’s common shareholders’ equity

      10,676        10,583   
                

Preferred and preference stock of utility

      1,030        907   

Other noncontrolling interests

      3        4   
                

Total noncontrolling interests

      1,033        911   

Total equity

      11,709        11,494   
                

Total liabilities and equity

    $ 46,161      $ 45,530   
                

Edison International Reports First Quarter 2011 Financial Results

Page 9 of 10

 

Consolidated Statements of Cash Flows

 

 

Consolidated Statements of Cash Flows

 

     Three months ended
March 31,		  

(in millions, unaudited)

    2011     2010  

Cash flows from operating activities:

     

Net income

    $ 214      $ 249   

Less: Income (loss) from discontinued operations

      (2 )      6   
                

Income from continuing operations

      216        243   

Adjustments to reconcile to net cash provided by operating activities:

     

Depreciation, decommissioning and amortization

      417        369   

Regulatory impacts of net nuclear decommissioning trust earnings (reflected in accumulated depreciation)

      41        38   

Other amortization

      37        24   

Lease terminations and other

      —          3   

Stock-based compensation

      7        7   

Equity in income (loss) from unconsolidated affiliates – net

      5        (18 ) 

Distributions and dividends from unconsolidated entities

      5        22   

Deferred income taxes and investment tax credits

      226        218   

Income from leveraged leases

      (1 )      (1 ) 

Changes in operating assets and liabilities:

     

Receivables

      128        150   

Inventory

      (18 )      (2 ) 

Margin and collateral deposits – net of collateral received

      15        (6 ) 

Prepaid taxes

      (143 )      (104 ) 

Other current assets

      (6 )      (47 ) 

Rent payments in excess of levelized rent expense

      (32 )      (45 ) 

Accounts payable

      (49 )      (138 ) 

Accrued taxes

      1        (6 ) 

Other current liabilities

      (207 )      (182 ) 

Derivative assets and liabilities – net

      106        695   

Regulatory assets and liabilities – net

      (42 )      (636 ) 

Other assets

      (7 )      (11 ) 

Other liabilities

      21        20   

Operating cash flows from discontinued operations

      (2 )      6   
                

Net cash provided by operating activities

      718        599   
                

Cash flows from financing activities:

     

Long-term debt issued

      82        541   

Long-term debt issuance costs

      (1 )      (14 ) 

Long-term debt repaid

      (9 )      (343 ) 

Preference stock issued

      123        —     

Short-term debt financing – net

      294        192   

Settlements of stock-based compensation – net

      (7 )      (1 ) 

Dividends and distributions to noncontrolling interests

      (13 )      (13 ) 

Dividends paid

      (104 )      (103 ) 
                

Net cash provided by financing activities

    $ 365      $ 259   
                

Edison International Reports First Quarter 2011 Financial Results

Page 10 of 10

 

Consolidated Statements of Cash Flows

 

 

Consolidated Statements of Cash Flows

 

     Three months ended
March 31,		  

(in millions, unaudited)

    2011     2010  

Cash flows from investing activities:

     

Capital expenditures

    $ (1,133 )    $ (951 ) 

Proceeds from sale of nuclear decommissioning trust investments

      622        286   

Purchases of nuclear decommissioning trust investments and other

      (669 )      (335 ) 

Proceeds from partnerships and unconsolidated subsidiaries, net of investment

      5        32   

Investments in other assets

      1        (54 ) 

Effect of consolidation and deconsolidation of variable interest entities

      —          (91 ) 
                

Net cash used by investing activities

      (1,174 )      (1,113 ) 
                

Net decrease in cash and cash equivalents

      (91 )      (255 ) 

Cash and cash equivalents, beginning of year

      1,389        1,673   
                

Cash and cash equivalents, end of year

    $ 1,298      $ 1,418