EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1 exhibit99-1



 
NEWS
 
 
 
FOR IMMEDIATE RELEASE        
Media relations contact:
Charles Coleman, (626) 302-7982
Investor relations contact:
Scott Cunningham, (626) 302-2540

Edison International Reports First Quarter 2015 Results

ROSEMEAD, Calif., April 28, 2015 - Edison International (NYSE: EIX) today reported first quarter 2015 net income on a GAAP basis of $299 million, or $0.92 per share, compared to $176 million, or $0.54 per share, in the first quarter of 2014. On an adjusted basis, Edison International’s first quarter 2015 and 2014 core earnings were $294 million, or $0.90 per share.

Southern California Edison’s (SCE) first quarter 2015 core earnings were similar to the first quarter of 2014 due to the delay in the California Public Utilities Commission 2015 General Rate Case (GRC) decision. During the first quarter of 2015, SCE recognized revenue from CPUC activities largely based on 2014 authorized base revenue requirements included in customer rates. The revenue requirement ultimately adopted by the CPUC will be retroactive to January 1, 2015. The decrease from the delay in the 2015 GRC decision and lower income tax benefits were offset by higher FERC-related revenue from rate base growth and higher earnings on funds used during construction. Edison International Parent and Other’s first quarter 2015 core losses were comparable to first quarter 2014 core losses.
    
Edison International's first quarter 2015 core earnings exclude income of $5 million, or $0.02 per share, related to losses allocated to tax equity investors under the hypothetical liquidation at book value accounting method. Edison International's first quarter 2014 core earnings exclude a $96 million charge, or $0.29 per share, related to the San Onofre OII Settlement Agreement, and losses of $22 million, or $0.07 per share, from discontinued operations.
 
"Until SCE receives a decision in its 2015 General Rate Case, comparative results are not meaningful," said Ted Craver, chairman and chief executive officer of Edison International. "However, we remain focused on improving our safety and operational performance while executing on our capital plans to enhance reliability and plan and build the next generation electric grid."
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 earnings.
    
2015 Earnings Guidance

Edison International will provide 2015 earnings guidance after a final decision has been issued by the CPUC on the Southern California Edison 2015 GRC. See the presentation accompanying the company’s conference call for further information.

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.
Appendix

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 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 net income, basic EPS, core earnings, or core EPS also applies 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, most recent Form 10-Q, 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, April 28, 2015, 1:30 p.m. (Pacific Time)
Please note new start time beginning this quarter
Telephone Numbers:    1-800-369-2198 (US) and 1-773-756-4618 (Int'l) - Passcode: Edison
Telephone Replay:    1-888-566-0509 (US) and 1-203-369-3613 (Int’l) - Passcode: 85749
Telephone replay available through May 7, 2015
Webcast:     www.edisoninvestor.com

-###-

Edison International Reports First Quarter 2015 Financial Results
Page 2 of 7



First Quarter Reconciliation of
Core Earnings Per Share to Basic Earnings Per Share
 
 
Three months ended March 31,
 
 
 
 
2015
 
2014
 
Change
Earnings (loss) per share attributable to Edison International
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
SCE
 
$
0.93

 
$
0.64

 
$
0.29

Edison International Parent and Other
 
(0.01
)
 
(0.03
)
 
0.02

Discontinued operations
 
—

 
(0.07
)
 
0.07

Edison International
 
0.92

 
0.54

 
0.38

Less: Non-core items
 
 
 
 
 
 
     SCE
 
—

 
(0.29
)
 
0.29

     Edison International Parent and Other
 
0.02

 
—

 
0.02

     Discontinued operations
 
—

 
(0.07
)
 
0.07

Total non-core items
 
0.02

 
(0.36
)
 
0.38

Core earnings (losses)
 
 
 
 
 
 
SCE
 
0.93

 
0.93

 
—

Edison International Parent and Other
 
(0.03
)
 
(0.03
)
 
—

Edison International
 
$
0.90

 
$
0.90

 
$
—

Note: Diluted earnings were $0.91 and $0.54 per share for the three months ended March 31, 2015 and 2014, respectively.

First Quarter and Full-Year Reconciliation of
Core Earnings to Basic Earnings (in millions)
 
 
Three months ended March 31,
 
 
(in millions)
 
2015
 
2014
 
Change
Net income (loss) attributable to Edison International
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
SCE
 
$
305

 
$
208

 
$
97

Edison International Parent and Other
 
(6
)
 
(10
)
 
4

Discontinued operations
 
—

 
(22
)
 
22

Edison International
 
299

 
176

 
123

Less: Non-core items
 
 
 
 
 
 
     SCE
 
—

 
(96
)
 
96

     Edison International Parent and Other
 
5

 
—

 
5

     Discontinued operations
 
—

 
(22
)
 
22

Total non-core items
 
5

 
(118
)
 
123

Core earnings (losses)
 
 
 
 
 
 
SCE
 
305

 
304

 
1

Edison International Parent and Other
 
(11
)
 
(10
)
 
(1
)
Edison International
 
$
294

 
$
294

 
$
—




Edison International Reports First Quarter 2015 Financial Results
Page 3 of 7


Consolidated Statements of Income
 
Edison International
 
 
 
 
 
 
 
 
 
 
Three months ended March 31,
(in millions, except per-share amounts, unaudited)
 
 
 
 
 
2015
 
2014
Total operating revenue
 
 
 
 
 
$
2,512

 
$
2,926

Purchased power and fuel
 
 
 
 
 
786

 
1,143

Operation and maintenance
 
 
 
 
 
636

 
726

Depreciation, decommissioning and amortization
 
 
 
 
 
463

 
410

Property and other taxes
 
 
 
 
 
89

 
85

Impairment and other charges
 
 
 
 
 
—

 
231

Total operating expenses
 
 
 
 
 
1,974

 
2,595

Operating income
 
 
 
 
 
538

 
331

Interest and other income
 
 
 
 
 
39

 
23

Interest expense
 
 
 
 
 
(143
)
 
(141
)
Other expenses
 
 
 
 
 
(10
)
 
(8
)
Income from continuing operations before income taxes
 
 
 
 
 
424

 
205

Income tax expense (benefit)
 
 
 
 
 
106

 
(19
)
Income from continuing operations
 
 
 
 
 
318

 
224

Loss from discontinued operations, net of tax
 
 
 
 
 
—

 
(22
)
Net income
 
 
 
 
 
318

 
202

Preferred and preference stock dividend requirements of utility
 
 
 
 
 
28

 
26

Other noncontrolling interests
 
 
 
 
 
(9
)
 
—

Net income attributable to Edison International common shareholders
 
 
 
 
 
$
299

 
$
176

Amounts attributable to Edison International common shareholders:
 
 
 
 
 
 
 
 
Income from continuing operations, net of tax
 
 
 
 
 
$
299

 
$
198

Loss from discontinued operations, net of tax
 
 
 
 
 
—

 
(22
)
Net income attributable to Edison International common shareholders
 
 
 
 
 
$
299

 
$
176

Basic earnings (loss) per common share attributable to Edison International common shareholders:
 
 
 
 
 
 
 
 
Weighted-average shares of common stock outstanding
 
 
 
 
 
326

 
326

Continuing operations
 
 
 
 
 
$
0.92

 
$
0.61

Discontinued operations
 
 
 
 
 
—

 
(0.07
)
Total
 
 
 
 
 
$
0.92

 
$
0.54

Diluted earnings (loss) per common share attributable to Edison International common shareholders:
 
 
 
 
 
 
 
 
Weighted-average shares of common stock outstanding, including effect of dilutive securities
 
 
 
 
 
329

 
329

Continuing operations
 
 
 
 
 
$
0.91

 
$
0.61

Discontinued operations
 
 
 
 
 
—

 
(0.07
)
Total
 
 
 
 
 
$
0.91

 
$
0.54

Dividends declared per common share
 
 
 
 
 
$
0.4175

 
$
0.3550


Edison International Reports First Quarter 2015 Financial Results
Page 4 of 7


Consolidated Balance Sheets
Edison International
 
 
 
 
 
(in millions, unaudited)
March 31,
2015
 
December 31,
2014
ASSETS
 
 
 
Cash and cash equivalents
$
115

 
$
132

Receivables, less allowances of $67 and $68 for uncollectible accounts at respective dates
752

 
790

Accrued unbilled revenue
636

 
632

Inventory
290

 
281

Derivative assets
94

 
102

Regulatory assets
1,152

 
1,254

Deferred income taxes
359

 
452

Other current assets
382

 
376

Total current assets
3,780

 
4,019

Nuclear decommissioning trusts
4,896

 
4,799

Other investments
217

 
207

Total investments
5,113

 
5,006

Utility property, plant and equipment, less accumulated depreciation and amortization of $8,372 and $8,132 at respective dates
33,249

 
32,859

Nonutility property, plant and equipment, less accumulated depreciation of $78 and $76 at respective dates
123

 
122

Total property, plant and equipment
33,372

 
32,981

Derivative assets
212

 
219

Regulatory assets
7,737

 
7,612

Other long-term assets
364

 
349

Total long-term assets
8,313

 
8,180

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
$
50,578

 
$
50,186


Edison International Reports First Quarter 2015 Financial Results
Page 5 of 7


Consolidated Balance Sheets
 
Edison International
 
 
 
 
 
 
(in millions, except share amounts, unaudited)
 
March 31,
2015
 
December 31,
2014
LIABILITIES AND EQUITY
 
 
 
 
Short-term debt
 
$
936

 
$
1,291

Current portion of long-term debt
 
504

 
504

Accounts payable
 
1,203

 
1,580

Accrued taxes
 
118

 
81

Customer deposits
 
228

 
221

Derivative liabilities
 
185

 
196

Regulatory liabilities
 
435

 
401

Other current liabilities
 
962

 
1,205

Total current liabilities
 
4,571

 
5,479

Long-term debt
 
11,133

 
10,234

Deferred income taxes and credits
 
7,415

 
7,313

Derivative liabilities
 
1,107

 
1,052

Pensions and benefits
 
2,176

 
2,155

Asset retirement obligations
 
2,824

 
2,821

Regulatory liabilities
 
5,972

 
5,889

Other deferred credits and other long-term liabilities
 
2,279

 
2,255

Total deferred credits and other liabilities
 
21,773

 
21,485

Total liabilities
 
37,477

 
37,198

Commitments and contingencies
 
 
 
 
Redeemable noncontrolling interest
 
3

 
6

Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at respective dates)
 
2,460

 
2,445

Accumulated other comprehensive loss
 
(59
)
 
(58
)
Retained earnings
 
8,675

 
8,573

Total Edison International's common shareholders' equity
 
11,076

 
10,960

Noncontrolling interests – preferred and preference stock of utility
 
2,022

 
2,022

Total equity
 
13,098

 
12,982

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
 
$
50,578

 
$
50,186


Edison International Reports First Quarter 2015 Financial Results
Page 6 of 7


Consolidated Statements of Cash Flows
 
Edison International
 
 
 
 
 
 
Three months ended March 31,
(in millions, unaudited)
 
2015
 
2014
Cash flows from operating activities:
 
 
 
 
Net income
 
$
318

 
$
202

Less: loss from discontinued operations
 
—

 
(22
)
Income from continuing operations
 
318

 
224

Adjustments to reconcile to net cash provided by operating activities:
 
 
 
 
Depreciation, decommissioning and amortization
 
485

 
432

Allowance for equity during construction
 
(21
)
 
(13
)
Impairment and other charges
 
—

 
231

Deferred income taxes and investment tax credits
 
72

 
(6
)
Other
 
5

 
4

Changes in operating assets and liabilities:
 
 
 
 
Receivables
 
31

 
112

Inventory
 
(10
)
 
(12
)
Accounts payable
 
63

 
(63
)
Prepaid and accrued taxes
 
38

 
65

Other current assets and liabilities
 
(229
)
 
(145
)
Derivative assets and liabilities, net
 
(10
)
 
(46
)
Regulatory assets and liabilities, net
 
193

 
(331
)
Nuclear decommissioning trusts
 
29

 
96

Other noncurrent assets and liabilities
 
—

 
17

Net cash provided by operating activities
 
964

 
565

Cash flows from financing activities:
 
 
 
 
Long-term debt issued, net of discount and issuance costs of $13 and $1 at respective dates
 
1,287

 
(1
)
Long-term debt matured or repurchased
 
(419
)
 
(2
)
Preference stock issued, net
 
—

 
270

Short-term debt financing, net
 
(355
)
 
401

Cash contribution from redeemable noncontrolling interest
 
6

 
—

Dividends to noncontrolling interests
 
(34
)
 
(30
)
Dividends paid
 
(136
)
 
(116
)
Other
 
(36
)
 
(42
)
Net cash provided by financing activities
 
313

 
480

Cash flows from investing activities:
 
 
 
 
Capital expenditures
 
(1,268
)
 
(940
)
Proceeds from sale of nuclear decommissioning trust investments
 
2,853

 
1,502

Purchases of nuclear decommissioning trust investments
 
(2,889
)
 
(1,603
)
Other
 
10

 
(1
)
Net cash used in investing activities
 
(1,294
)
 
(1,042
)
Net (decrease) increase in cash and cash equivalents
 
(17
)
 
3

Cash and cash equivalents at beginning of period
 
132

 
146

Cash and cash equivalents at end of period
 
$
115

 
$
149