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
First Quarter Reconciliation
ofCore 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 ofCore 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 $ —
Consolidated Statements of
Income
Edison International
Three months endedMarch 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
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
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
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
Edison InternationalMedia relations:Charles Coleman,
626-302-7982orInvestor relations:Scott Cunningham,
626-302-2540
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