EX-99.1 2 eix-sceexhibit99x1q4.htm EIX PRESS RELEASE DATED 2/23/16 Exhibit
Exhibit 99.1

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

Edison International Reports Fourth Quarter and Full-Year 2015 Results; Introduces 2016 Earnings Guidance

ROSEMEAD, Calif., February 23, 2016 - Edison International (NYSE: EIX) today reported fourth quarter 2015 net loss on a GAAP basis of $79 million, or $0.24 per share, compared to net income of $420 million, or $1.29 per share, in the fourth quarter of 2014. On an adjusted basis, Edison International’s fourth quarter 2015 core earnings were $287 million, or $0.88 per share, compared to $355 million, or $1.08 per share, in the fourth quarter of 2014.
Southern California Edison's (SCE) fourth quarter 2015 core earnings decreased by $66 million, or $0.20 per share, from the fourth quarter 2014 primarily due to lower authorized California Public Utilities Commission (CPUC) revenue from implementation of the 2015 CPUC General Rate Case (GRC) decision and higher income taxes, partially offset by lower operation and maintenance costs. Edison International Parent and Other’s fourth quarter 2015 core loss increased by $2 million compared to fourth quarter 2014 core losses primarily due to income taxes and expenses.
Fourth quarter 2015 core earnings exclude losses of $366 million, or $1.12 per share, primarily related to the $382 million, or $1.18 per share, write-down of SCE regulatory assets previously recorded for recovery of deferred income taxes from 2012-2014 incremental tax repair deductions. Fourth quarter 2014 core earnings exclude SCE income of $24 million, or $0.08 per share, related to a revised estimated impact of the San Onofre Nuclear Generating Station (SONGS) Settlement Agreement, and income of $41 million, or $0.13 per share, primarily due to discontinued operations.
“Our results are well ahead of earnings guidance,” said Ted Craver, chairman and chief executive officer of Edison International, “and reflect SCE’s strong rate base growth and continued focus on operational excellence. With the potential for continued long-term growth and productivity improvements at SCE along with continued development of Edison Energy Group’s businesses, Edison International is well-positioned in a rapidly changing industry.”

Full-Year Earnings
For the year ended December 31, 2015, Edison International reported net income on a GAAP basis of $1.02 billion, or $3.13 per share, compared to $1.612 billion, or $4.95 per share, during 2014. On an adjusted basis, Edison International’s core earnings were $1.336 billion, or $4.10 per share, compared to $1.497 billion, or $4.59 per share, in 2014.
SCE’s core earnings for the year ended December 31, 2015 decreased $157 million, or $0.48 per share, from 2014, primarily due to lower CPUC-related revenue from implementation of the 2015 CPUC GRC decision and higher income taxes, partially offset by an increase in Federal Energy Regulatory Commission-related revenue from rate base growth, lower operation and maintenance costs and earnings on funds used during construction. Edison International Parent and Other’s 2015 core losses increased $4 million, or $0.01 per share, compared to 2014 primarily due to income taxes and expenses.         


Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
Page 2 of 8

2015 core earnings exclude losses of $316 million, or $0.97 per share, primarily related to the $382 million, or $1.18 per share, write-down of SCE regulatory assets. 2014 core earnings exclude SCE net charges of $72 million, or $0.22 per share, related to the SONGS Settlement, and income of $187 million, or $0.58 per share, primarily due to discontinued operations.
Edison International uses core earnings, which is a non-GAAP financial measure that adjusts for significant discrete items that management does not consider representative of ongoing earnings. Edison International management believes that core earnings provide more meaningful comparisons of performance from period to period. Please see the attached tables for a reconciliation of core earnings to basic GAAP earnings.
2016 Earnings Guidance
The company announced core and basic earnings guidance of $3.81 to $4.01 per share for 2016. See the presentation accompanying the company’s conference call for further information including key guidance assumptions.
2016 Core and Basic Earnings Guidance as of February 23, 2016
 
Low
Midpoint
High
SCE
 
$4.09
 
EIX Parent & Other
 
(0.18)
 
EIX Core EPS
$3.81
$3.91
$4.01
Non-Core Items
-
-
-
EIX Basic EPS
$3.81
$3.91
$4.01
 
 
 
 
 
About Edison International
Edison International (NYSE:EIX), through its subsidiaries, is a generator and distributor of electric power and an investor in energy services and technologies, including renewable energy. Headquartered in Rosemead, Calif., Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities.


Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
Page 3 of 8

Appendix

Use of Non-GAAP Financial Measures
Edison International’s earnings are prepared in accordance with generally accepted accounting principles (GAAP) used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core earnings per share (EPS) internally for financial planning and for analysis of performance. We also use core earnings and core EPS when communicating with analysts and investors regarding our earnings results to facilitate comparisons of the Company’s performance from period to period. Financial measures referred to as net income, basic EPS, core earnings, or core EPS also apply to the description of earnings or earnings per share.
Core earnings and core EPS are non-GAAP financial measures and may not be comparable to those of other companies. Core earnings and core EPS are defined as basic earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. Basic earnings and losses refer to net income or losses attributable to Edison International shareholders. Core earnings are reconciled to basic earnings in the attached tables. The impact of participating securities (vested awards that earn dividend equivalents that may participate in undistributed earnings with common stock) for the principal operating subsidiary is not material to the principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which is included in Edison International Parent and Other.
Risk Disclosure Statement
Forward-looking statements about the financial outlook for Edison International and its subsidiaries are included in this news release. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Edison International’s Form 10-K and other reports and presentations filed with the Securities and Exchange Commission which are available at: www.edisoninvestor.com. These forward-looking statements represent our expectations only as of the date of this news release, and Edison International assumes no duty to update them to reflect new information, events or circumstances.
Reminder: Edison International Will Hold a Conference Call Today
When:    Tuesday, February 23, 2016, 1:30 p.m. (Pacific Time)
Telephone Numbers:    1-800-369-2198 (US) and 1-773-756-4618 (Int'l) - Passcode: Edison
Telephone Replay:    1-888-568-0891 (US) and 1-402-998-1567 (Int’l) - Passcode: 22316
Telephone replay available through March 3, 2016
Webcast:     www.edisoninvestor.com


Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
Page 4 of 8


Fourth Quarter and Full-Year Reconciliation of
Core Earnings Per Share to Basic Earnings Per Share
 
Three months ended
December 31,
 
 
 
Years ended
December 31,
 
 
 
2015
 
2014
 
Change
 
2015
 
2014
 
Change
Earnings (loss) per share attributable to Edison International
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
SCE
$
(0.25
)
 
$
1.17

 
$
(1.42
)
 
$
3.06

 
$
4.46

 
$
(1.40
)
Edison International Parent and Other
0.03

 
—

 
0.03

 
(0.04
)
 
(0.08
)
 
0.04

Discontinued operations
(0.02
)
 
0.12

 
(0.14
)
 
0.11

 
0.57

 
(0.46
)
Edison International
(0.24
)
 
1.29

 
(1.53
)
 
3.13

 
4.95

 
(1.82
)
Less: Non-core items
 
 
 
 
 
 
 
 
 
 
 
     SCE
(1.14
)
 
0.08

 
(1.22
)
 
(1.14
)
 
(0.22
)
 
(0.92
)
     Edison International Parent and Other
0.04

 
0.01

 
0.03

 
0.06

 
0.01

 
0.05

     Discontinued operations
(0.02
)
 
0.12

 
(0.14
)
 
0.11

 
0.57

 
(0.46
)
Total non-core items
(1.12
)
 
0.21

 
(1.33
)
 
(0.97
)
 
0.36

 
(1.33
)
Core earnings (losses)
 
 
 
 
 
 
 
 
 
 
 
SCE
0.89

 
1.09

 
(0.20
)
 
4.20

 
4.68

 
(0.48
)
Edison International Parent and Other
(0.01
)
 
(0.01
)
 
—

 
(0.10
)
 
(0.09
)
 
(0.01
)
Edison International
$
0.88

 
$
1.08

 
$
(0.20
)
 
$
4.10

 
$
4.59

 
$
(0.49
)
Note: Diluted earnings were $(0.24) and $1.27 per share for the three months ended December 31, 2015 and 2014, respectively, and $3.10 and $4.89 per share for the years ended December 31, 2015 and 2014, respectively.

Fourth Quarter and Full-Year Reconciliation of
Core Earnings to Basic Earnings (in millions)
 
Three months ended
December 31,
 
 
 
Years ended
December 31,
 
 
(in millions)
2015
 
2014
 
Change
 
2015
 
2014
 
Change
Net income (loss) attributable to Edison International
 
 
 
 
 
 
 
 
Continuing operations
 
 
 
 
 
 
 
 
 
 
 
SCE
$
(80
)
 
$
380

 
$
(460
)
 
$
998

 
$
1,453

 
$
(455
)
Edison International Parent and Other
9

 
1

 
8

 
(13
)
 
(26
)
 
13

Discontinued operations
(8
)
 
39

 
(47
)
 
35

 
185

 
(150
)
Edison International
(79
)
 
420

 
(499
)
 
1,020

 
1,612

 
(592
)
Less: Non-core items
 
 
 
 
 
 
 
 
 
 
 
     SCE
(370
)
 
24

 
(406
)
 
(370
)
 
(72
)
 
(310
)
     Edison International Parent and Other
12

 
2

 
10

 
19

 
2

 
17

     Discontinued operations
(8
)
 
39

 
(47
)
 
35

 
185

 
(150
)
Total non-core items
(366
)
 
65

 
(443
)
 
(316
)
 
115

 
(443
)
Core earnings (losses)
 
 
 
 
 
 
 
 
 
 
 
SCE
290

 
356

 
(66
)
 
1,368

 
1,525

 
(157
)
Edison International Parent and Other
(3
)
 
(1
)
 
(2
)
 
(32
)
 
(28
)
 
(4
)
Edison International
$
287

 
$
355

 
$
(68
)
 
$
1,336

 
$
1,497

 
$
(161
)




Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
Page 5 of 8

Consolidated Statements of Income
 
 
 
 
Edison International
 
 
Quarters ended December 31,
 
Years ended December 31,
 
(in millions, except per-share amounts)
2015
 
2014
 
2015
 
2014
Total operating revenue
$
2,341

 
$
3,114

 
$
11,524

 
$
13,413

Purchased power and fuel
618

 
1,029

 
4,266

 
5,593

Operation and maintenance
830

 
901

 
2,990

 
3,149

Depreciation, decommissioning and amortization
467

 
472

 
1,919

 
1,720

Property and other taxes
81

 
87

 
336

 
322

Impairment and other charges
5

 
(68
)
 
5

 
157

Total operating expenses
2,001

 
2,421

 
9,516

 
10,941

Operating income
340

 
693

 
2,008

 
2,472

Interest and other income
58

 
39

 
174

 
147

Interest expense
(136
)
 
(138
)
 
(555
)
 
(560
)
Other expenses
(18
)
 
(29
)
 
(59
)
 
(80
)
Income from continuing operations before income taxes
244

 
565

 
1,568

 
1,979

Income tax expense
291

 
159

 
486

 
443

(Loss) Income from continuing operations
(47
)
 
406

 
1,082

 
1,536

(Loss) Income from discontinued operations, net of tax
(8
)
 
39

 
35

 
185

Net (loss) income
(55
)
 
445

 
1,117

 
1,721

Preferred and preference stock dividend requirements of utility
29

 
28

 
113

 
112

Other noncontrolling interests
(5
)
 
(3
)
 
(16
)
 
(3
)
Net (loss) income attributable to Edison International common shareholders
$
(79
)
 
$
420

 
$
1,020

 
$
1,612

Amounts attributable to Edison International common shareholders:
 
 
 
 
 
 
 
(Loss) Income from continuing operations, net of tax
$
(71
)
 
$
381

 
$
985

 
$
1,427

(Loss) Income from discontinued operations, net of tax
(8
)
 
39

 
35

 
185

Net (loss) income attributable to Edison International common shareholders
$
(79
)
 
$
420

 
$
1,020

 
$
1,612

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

 
326

 
326

 
326

Continuing operations
$
(0.22
)
 
$
1.17

 
$
3.02

 
$
4.38

Discontinued operations
(0.02
)
 
0.12

 
0.11

 
0.57

Total
$
(0.24
)
 
$
1.29

 
$
3.13

 
$
4.95

Diluted (loss) earnings per common share attributable to Edison International common shareholders:
 
 
 
 
 
 
 
Weighted-average shares of common stock outstanding, including effect of dilutive securities
328

 
329

 
329

 
329

Continuing operations
$
(0.22
)
 
$
1.15

 
$
2.99

 
$
4.33

Discontinued operations
(0.02
)
 
0.12

 
0.11

 
0.56

Total
$
(0.24
)
 
$
1.27

 
$
3.10

 
$
4.89

Dividends declared per common share
$
0.4800

 
$
0.4175

 
$
1.7325

 
$
1.4825



Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
Page 6 of 8

Consolidated Balance Sheets
 
Edison International
 
 
 
 
 
 
 
 
December 31,
(in millions)
 
2015
 
2014
ASSETS
 
 
 
 
Cash and cash equivalents
 
$
161

 
$
132

Receivables, less allowances of $62 and $68 for uncollectible accounts at respective dates
 
771

 
790

Accrued unbilled revenue
 
565

 
632

Inventory
 
267

 
281

Derivative assets
 
79

 
102

Regulatory assets
 
560

 
1,254

Other current assets
 
251

 
376

Total current assets
 
2,654

 
3,567

Nuclear decommissioning trusts
 
4,331

 
4,799

Other investments
 
203

 
207

Total investments
 
4,534

 
5,006

Utility property, plant and equipment, less accumulated depreciation and amortization of $8,548 and $8,132 at respective dates
 
34,945

 
32,859

Nonutility property, plant and equipment, less accumulated depreciation of $85 and $76 at respective dates
 
140

 
122

Total property, plant and equipment
 
35,085

 
32,981

Derivative assets
 
84

 
219

Regulatory assets
 
7,512

 
7,612

Other long-term assets
 
441

 
349

Total long-term assets
 
8,037

 
8,180

 
 
 
 
 
Total assets
 
$
50,310

 
$
49,734




Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
Page 7 of 8

Consolidated Balance Sheets
 
Edison International
 
 
 
 
 
 
 
 
December 31,
(in millions, except share amounts)
 
2015
 
2014
LIABILITIES AND EQUITY
 
 
 
 
Short-term debt
 
$
695

 
$
1,291

Current portion of long-term debt
 
295

 
504

Accounts payable
 
1,310

 
1,580

Accrued taxes
 
72

 
81

Customer deposits
 
242

 
221

Derivative liabilities
 
218

 
196

Regulatory liabilities
 
1,128

 
401

Other current liabilities
 
967

 
1,205

Total current liabilities
 
4,927

 
5,479

Long-term debt
 
10,964

 
10,234

Deferred income taxes and credits
 
7,480

 
6,861

Derivative liabilities
 
1,100

 
1,052

Pensions and benefits
 
1,759

 
2,155

Asset retirement obligations
 
2,764

 
2,821

Regulatory liabilities
 
5,676

 
5,889

Other deferred credits and other long-term liabilities
 
2,246

 
2,255

Total deferred credits and other liabilities
 
21,025

 
21,033

Total liabilities
 
36,916

 
36,746

Commitments and contingencies
 
 
 
 
Redeemable noncontrolling interest
 
6

 
6

Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at respective dates)
 
2,484

 
2,445

Accumulated other comprehensive loss
 
(56
)
 
(58
)
Retained earnings
 
8,940

 
8,573

Total Edison International's common shareholders' equity
 
11,368

 
10,960

Noncontrolling interests – preferred and preference stock of utility
 
2,020

 
2,022

Total equity
 
13,388

 
12,982

 
 
 
 
 
 
 
 
 
 
Total liabilities and equity
 
$
50,310

 
$
49,734



Edison International Reports Fourth Quarter and Full-Year 2015 Financial Results
Page 8 of 8

Consolidated Statements of Cash Flows
 
Edison International
 
 
 
 
 
 
 
 
Years ended December 31,
(in millions)
 
2015
 
2014
 
2013
Cash flows from operating activities:
 
 
 
 
 
 
Net income
 
$
1,117

 
$
1,721

 
$
1,015

Less: Income from discontinued operations
 
35

 
185

 
36

Income from continuing operations
 
1,082

 
1,536

 
979

Adjustments to reconcile to net cash provided by operating activities:
 
 
 
 
 
 
Depreciation, decommissioning and amortization
 
2,005

 
1,815

 
1,696

Allowance for equity during construction
 
(87
)
 
(65
)
 
(72
)
Impairment and other charges
 
5

 
157

 
571

Deferred income taxes and investment tax credits
 
449

 
522

 
345

Other
 
(28
)
 
20

 
18

Nuclear decommissioning trusts
 
(428
)
 
39

 
76

EME settlement insurance proceeds and settlement payments
 
(176
)
 
(225
)
 
—

Changes in operating assets and liabilities:
 
 
 
 
 
 
Receivables
 
49

 
64

 
(56
)
Inventory
 
14

 
(25
)
 
80

Accounts payable
 
8

 
14

 
45

Prepaid and accrued taxes
 
(28
)
 
(100
)
 
(92
)
Other current assets and liabilities
 
(24
)
 
(103
)
 
(155
)
Derivative assets and liabilities, net
 
45

 
(40
)
 
(30
)
Regulatory assets and liabilities, net
 
1,729

 
(358
)
 
(322
)
Other noncurrent assets and liabilities
 
(106
)
 
(3
)
 
(116
)
Net cash provided by operating activities
 
4,509

 
3,248

 
2,967

Cash flows from financing activities:
 
 
 
 
 
 
Long-term debt issued or remarketed, net of discount and issuance costs of $17, $6, and $19 at respective periods
 
1,420

 
494

 
2,168

Long-term debt matured or repurchased
 
(762
)
 
(607
)
 
(1,017
)
Preference stock issued, net
 
319

 
269

 
387

Preference stock redeemed
 
(325
)
 
—

 
(400
)
Short-term debt financing, net
 
(572
)
 
1,079

 
32

Cash contribution from redeemable noncontrolling interest
 
17

 
9

 
—

Dividends to noncontrolling interests
 
(116
)
 
(111
)
 
(101
)
Dividends paid
 
(544
)
 
(463
)
 
(440
)
Other
 
(25
)
 
(25
)
 
(48
)
Net cash (used in) provided by financing activities
 
(588
)
 
645

 
581

Cash flows from investing activities:
 
 
 
 
 
 
Capital expenditures
 
(4,225
)
 
(3,906
)
 
(3,599
)
Proceeds from sale of nuclear decommissioning trust investments
 
3,506

 
2,617

 
1,204

Purchases of nuclear decommissioning trust investments
 
(3,132
)
 
(2,661
)
 
(1,302
)
Proceeds from sale of assets
 
47

 
6

 
181

Other
 
(88
)
 
37

 
(56
)
Net cash used in investing activities
 
(3,892
)
 
(3,907
)
 
(3,572
)
Net increase (decrease) in cash and cash equivalents
 
29

 
(14
)
 
(24
)
Cash and cash equivalents at beginning of year
 
132

 
146

 
170

Cash and cash equivalents at end of year
 
$
161

 
$
132

 
$
146