Edison International Reports Third Quarter 2013 Results

Edison International (NYSE: EIX) today reported third quarter results, as summarized below.
 

Third Quarter and Year-to-Date Results Summary
 
      Three Months Ended         Nine Months Ended
September 30, September 30,
Per Share       2013           2012           2013         2012  
Basic earnings from continuing operations $ 1.42         $ 1.09 $ 1.88         $ 2.20
Basic earnings (loss) from discontinued operations         (0.08 )           (0.51 )           0.00           (1.11 )
Basic earnings       $ 1.34           $ 0.58           $ 1.88         $ 1.09  
Core earnings       $ 1.42           $ 1.00           $ 2.98         $ 2.11  

Note: See Use of Non-GAAP Financial Measures in Appendix.
 

“Edison International's earnings performance was solid this quarter reflecting continued cost management efforts and favorable tax benefits,” said Ted Craver, chairman and chief executive officer of Edison International. “Based on our year to date performance and positive outlook, we have increased our 2013 earnings guidance.”

Third Quarter Earnings Detail

Southern California Edison's (SCE) third quarter 2013 basic and core earnings were $1.46 per share compared to earnings of $1.11 per share in the third quarter of 2012. The change in core earnings was primarily due to the timing of finalizing SCE's 2012 General Rate Case and income tax benefits. In addition, SCE's return on its investment resulting from rate base growth was offset by a lower authorized 2013 return on common equity.

Edison International parent company and other reported third quarter 2013 basic losses from continuing operations of $(0.04) per share compared to $(0.02) per share in the third quarter of 2012. Third quarter 2013 core losses were $(0.04) per share compared to $(0.11) per share in the third quarter of 2012. The change in core earnings was mainly due to lower consolidated state income taxes.

Year-to-Date Earnings Detail

SCE's year-to-date 2013 basic earnings were $1.97 per share compared to $2.26 per share for the same period last year. SCE's year-to-date core earnings were $3.09 per share compared to $2.26 per share for the same period last year. The change in core earnings was primarily due to the timing of finalizing SCE's 2012 General Rate Case and income tax benefits. In addition, SCE's return on its investment resulting from rate base growth was offset by a lower authorized 2013 return on common equity.

Edison International parent company and other reported year-to-date 2013 basic losses from continuing operations of $(0.09) per share compared to $(0.06) per share in the same period in 2012. Core losses from continuing operations in the year-to-date period of 2013 were $(0.11) per share compared to $(0.15) per share in the same period in 2012. The change in core earnings for the year-to-date period in 2013 was mainly due to lower consolidated state income taxes.

2013 Earnings Guidance

The company increased its 2013 core earnings guidance to $3.60 to $3.70 per share and its basic earnings guidance to $2.50 to $2.60 per share. Guidance increased largely due to updated income tax and lower operation and maintenance cost assumptions. See the risk disclosure statement in the Appendix and the presentation accompanying the company’s conference call for further information.
 
Reconciliation of 2013 Core Earnings Guidance to
Basic Earnings Guidance
 
      2013 Earnings Guidance as       2013 Earnings Guidance as
        of 8/1/13       of 10/29/13
SCE       $3.50       $3.80
EIX Parent & Other       (0.15)       (0.15)
EIX Core EPS       $3.25 - $3.45       $3.60 - $3.70
Non-core Items       (1.03)       (1.10)
EIX Basic EPS       $2.22 - $2.42       $2.50 - $2.60

Note: See Use of Non-GAAP Financial Measures in Appendix. Non-core items from year-to-date period only.

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 stock options 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 EIX parent & 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 2012 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, October 29, 2013, 2:00 p.m. (Pacific Daylight Time)

Telephone Numbers:

1-800-369-2198 (US) and 1-773-756-4618 (Int'l) - Passcode: Edison

Telephone Replay:

1-800-756-6241 (US) and 1-402-998-0456 (Int’l) - Passcode: 468529
Telephone replay available through November 7, 2013

Webcast:

www.edisoninvestor.com
 
 
 

Summary Financial Schedules
 
Third Quarter Basic Earnings Per Share
 
      Three Months Ended      
September 30,
Earnings (Loss) Per Share      
Attributable to Edison International       2013       2012       Change
SCE $ 1.46 $ 1.11 $ 0.35
EIX parent & other         (0.04 )         (0.02 )         (0.02 )
Earnings from continuing operations         1.42           1.09         $ 0.33  
Earnings (loss) from discontinued operations         (0.08 )         (0.51 )       $ 0.43  
Basic earnings       $ 1.34         $ 0.58         $ 0.76  
Diluted earnings       $ 1.34         $ 0.58         $ 0.76  

Note: Results for Edison Mission Energy reported as non-core discontinued operations for both periods.
 
 
 
Third Quarter Reconciliation of Core Earnings Per Share
to Basic Earnings Per Share
 
 
      Three Months Ended      
September 30,
Earnings (Loss) Per Share      
Attributable to Edison International       2013       2012       Change  
Core earnings
SCE $ 1.46 $ 1.11 $ 0.35
EIX parent & other         (0.04 )         (0.11 )         0.07  
Core earnings         1.42           1.00           0.42  
Non-core items
EIX parent & other 0.09 (0.09 )
Earnings (loss) from discontinued operations         (0.08 )         (0.51 )         0.43  
Total non-core items         (0.08 )         (0.42 )         0.34  
Basic earnings       $ 1.34         $ 0.58         $ 0.76  
Note: See Use of Non-GAAP Financial Measures in Appendix. Results for Edison Mission Energy reported as non-core
discontinued operations for both periods.
 
 
 

Third Quarter Basic Earnings
 
      Three Months Ended      
September 30,
Earnings (Loss) (in millions)      
Attributable to Edison International       2013       2012       Change
SCE $ 477 $ 363 $ 114
EIX parent & other         (14 )         (6 )         (8 )
Earnings from continuing operations         463           357           106  
Earnings (loss) from discontinued operations         (25 )         (167 )         142  
Basic earnings       $ 438         $ 190         $ 248  

Note: Results for Edison Mission Energy reported as non-core discontinued operations for both periods.
 
 
 

Third Quarter Reconciliation of Core Earnings to Basic Earnings
 
      Three Months Ended      
September 30,
Earnings (Loss) (in millions)      
Attributable to Edison International       2013       2012       Change  
Core earnings
SCE $477 $ 363 $114
EIX parent & other       (14 )         (37 )       23  
Core earnings       463           326         137  
Non-core items
EIX parent & other 31 (31 )
Earnings (loss) from discontinued operations       (25 )         (167 )       142  
Total non-core items       (25 )         (136 )       111  
Basic earnings       $438         $ 190         $248  
Note: See Use of Non-GAAP Financial Measures in Appendix. Results for Edison Mission Energy reported as non-core
discontinued operations for both periods.
 
 
 

Year-to-Date Basic Earnings Per Share
 
      Nine Months Ended      
September 30,
Earnings (Loss) Per Share      
Attributable to Edison International       2013       2012       Change
SCE $ 1.97 $ 2.26 $ (0.29 )
EIX parent & other         (0.09 )         (0.06 )         (0.03 )
Earnings from continuing operations         1.88           2.20         $ (0.32 )
Earnings (loss) from discontinued operations         0.00           (1.11 )       $ 1.11  
Basic earnings       $ 1.88         $ 1.09         $ 0.79  
Diluted earnings       $ 1.87         $ 1.09         $ 0.78  

Note: Results for Edison Mission Energy reported as non-core discontinued operations for both periods.
 
 
 
Year-to-Date Reconciliation of Core Earnings Per Share
to Basic Earnings Per Share
 
      Nine Months Ended      
September 30,
Earnings Per Share      
Attributable to Edison International       2013       2012       Change  
Core earnings (loss)
SCE $ 3.09 $ 2.26 $0.83
EIX parent & other         (0.11 )           (0.15 )         0.04  
Core earnings         2.98             2.11           0.87  
Non-core items
SCE - asset impairment (1.12

)

 

(1.12

)
EIX parent & other 0.02 0.09

(0.07

)
Earnings (loss) from discontinued operations                     (1.11 )         1.11  
Total non-core items         (1.10 )           (1.02 )         (0.08 )
Basic earnings       $ 1.88           $ 1.09           $0.79  
Note: See Use of Non-GAAP Financial Measures in Appendix. Results for Edison Mission Energy reported as non-core
discontinued operations for both periods.
 
 
 

Year-to-Date Basic Earnings
 
      Nine Months Ended      
September 30,
Earnings (Loss) (in millions)      
Attributable to Edison International       2013       2012       Change
SCE $ 642 $ 736 $ (94 )
EIX parent & other         (27 )         (19 )         (8 )
Earnings from continuing operations         615           717           (102 )
Earnings (loss) from discontinued operations         (1 )         (360 )         359  
Basic earnings       $ 614         $ 357         $ 257  

Note: Results for Edison Mission Energy reported as non-core discontinued operations for both periods.
 
 
 

Year-to-Date Reconciliation of Core Earnings to Basic Earnings
 
      Nine Months Ended      
September 30,
Earnings (Loss) (in millions)      
Attributable to Edison International       2013       2012       Change  
Core earnings
SCE $ 1,007 $ 736 $271
EIX parent & other         (34 )           (50 )         16  
Core earnings         973             686           287  
Non-core items
SCE - asset impairment (365

)

 

(365

)
EIX parent & other 7 31

(24

)
Earnings (loss) from discontinued operations         (1 )           (360 )         359  
Total non-core items         (359 )           (329 )         (30 )
Basic earnings       $ 614           $ 357           $257  
Note: See Use of Non-GAAP Financial Measures in Appendix. Results for Edison Mission Energy reported as non-core
discontinued operations for both periods.
 
 
 
Consolidated Statements of Income       Edison International
     
Three months ended Nine months ended
September 30,       September 30,
(in millions, except per-share amounts, unaudited)       2013       2012       2013       2012
Operating revenue $ 3,960         $ 3,734         $ 9,638         $ 8,802  
Fuel 95       83 249       220
Purchased power 1,713 1,612 3,569 3,049
Operation and maintenance 971 993 2,809 2,891
Depreciation, decommissioning and amortization 392 399 1,224 1,187
Asset impairment and others         (66 )       575         (65 )
Total operating expenses 3,171         3,021         8,426         7,282  
Operating income 789 713 1,212 1,520
Interest and other income 28 38 91 110
Interest expense (137 ) (131 ) (402 ) (390 )
Other expenses (15 )       (10 )       (38 )       (36 )
Income from continuing operations before income taxes 665 610 863 1,204
Income tax expense 177         228         173         421  
Income from continuing operations 488 382 690 783
Loss from discontinued operations, net of tax (25 )       (167 )       (1 )       (360 )
Net income 463 215 689 423
Dividends on preferred and preference stock of utility 25 25 75 66
Net income attributable to Edison International common shareholders $ 438         $ 190         $ 614         $ 357  
Amounts attributable to Edison International common shareholders:
Income from continuing operations, net of tax $ 463 $ 357 $ 615 $ 717
Loss from discontinued operations, net of tax (25 )       (167 )       (1 )       (360 )
Net income attributable to Edison International common shareholders $ 438         $ 190         $ 614         $ 357  
Basic earnings (loss) per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding 326 326 326 326
Continuing operations $ 1.42 $ 1.09 $ 1.88 $ 2.20
Discontinued operations (0.08 )       (0.51 )               (1.11 )
Total $ 1.34         $ 0.58         $ 1.88         $ 1.09  
Diluted earnings (loss) per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding, including effect of dilutive securities 328 329 329 328
Continuing operations $ 1.41 $ 1.09 $ 1.87 $ 2.18
Discontinued operations (0.07 )       (0.51 )               (1.09 )
Total $ 1.34         $ 0.58         $ 1.87         $ 1.09  
Dividends declared per common share       $ 0.3375         $ 0.325         $ 1.0125         $ 0.975  
 
 
 
Consolidated Balance Sheets       Edison International
     
September 30, December 31,
(in millions, unaudited)       2013       2012
ASSETS
Cash and cash equivalents $ 610 $ 170
Receivables, less allowances of $72 and $75 for uncollectible accounts at respective dates 1,174 762
Accrued unbilled revenue 798 550
Inventory 272 340
Prepaid taxes 27 22
Derivative assets 47 129
Margin and collateral deposits 14 8
Regulatory assets 506 572
Other current assets 155         119
Total current assets 3,603         2,672
Nuclear decommissioning trusts 4,332 4,048
Other investments 201         186
Total investments 4,533         4,234
Utility property, plant and equipment, less accumulated depreciation of $7,817
and $7,424 at respective dates 29,734 30,200
Nonutility property, plant and equipment, less accumulated depreciation of
$74 and $123 at respective dates 75         73
Total property, plant and equipment 29,809         30,273
Derivative assets 207 85
Restricted deposits 4 4
Regulatory assets 8,015 6,422
Other long-term assets 527         704
Total long-term assets 8,753 7,215
 
Total assets       $ 46,698         $ 44,394
 
 
 
Consolidated Balance Sheets       Edison International
     
September 30, December 31,
(in millions, except share amounts, unaudited)       2013         2012  
LIABILITIES AND EQUITY
Short-term debt $ 1,528 $ 175
Current portion of long-term debt 401
Accounts payable 1,240 1,423
Accrued taxes 103 61
Accrued interest 102 176
Customer deposits 199 193
Derivative liabilities 174 126
Regulatory liabilities 629 536
Deferred income taxes 159 64
Other current liabilities 854         990  
Total current liabilities 5,389         3,744  
Long-term debt 9,232         9,231  
Deferred income taxes 6,546 6,127
Deferred investment tax credits 106 104
Customer advances 132 149
Derivative liabilities 1,137 939
Pensions and benefits 2,237 2,614
Asset retirement obligations 3,371 2,782
Regulatory liabilities 4,989 5,214
Other deferred credits and other long-term liabilities 2,117         2,299  
Total deferred credits and other liabilities 20,635         20,228  
Total liabilities 35,256         33,203  
Commitments and contingencies
Common stock, no par value (800,000,000 shares authorized;
325,811,206 shares issued and outstanding at each date) 2,397 2,373
Accumulated other comprehensive loss (79 ) (87 )
Retained earnings 7,371         7,146  
Total Edison International's common shareholders' equity 9,689         9,432  
Preferred and preference stock of utility 1,753         1,759  
Total noncontrolling interests 1,753         1,759  
Total equity 11,442         11,191  
Total liabilities and equity       $ 46,698         $ 44,394  
 
 
 
Consolidated Statements of Cash Flows       Edison International
 
Nine months ended
September 30,
(in millions, unaudited)       2013         2012  
Cash flows from operating activities:      
Net income $ 689 $ 423
Less: Loss from discontinued operations (1 )       (360 )
Income from continuing operations 690 783
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, decommissioning and amortization 1,224 1,187
Regulatory impacts of net nuclear decommissioning trust earnings 265 147
Other amortization and other 54 51
Asset impairment 575
Gain on sale of assets and other (2 ) (65 )
Stock-based compensation 18 24
Deferred income taxes and investment tax credits 257 176
Proceeds from U.S. treasury grants 29
Changes in operating assets and liabilities:
Receivables (406 ) (328 )
Inventory 68 13
Margin and collateral deposits, net of collateral received (74 ) 6
Prepaid taxes (5 ) 319
Other current assets (276 ) (254 )
Rent payments in excess of levelized rent expense
Accounts payable 155 162
Accrued taxes 27 61
Other current liabilities (130 ) (124 )
Derivative assets and liabilities, net 207 1
Regulatory assets and liabilities, net 94 210
Other assets 127 (26 )
Other liabilities (615 )       326  
Operating cash flows from continuing operations 2,253 2,698
Operating cash flows from discontinued operations, net         (540 )
Net cash provided by operating activities 2,253         2,158  
Cash flows from financing activities:
Long-term debt issued 398 395
Long-term debt issuance costs (4 ) (4 )
Long-term debt repaid (5 ) (4 )
Bonds remarketed, net 195
Bonds purchased (196 )
Preference stock issued, net 387 804
Preference stock redeemed (400 ) (75 )
Short-term debt financing, net 1,352 (31 )
Settlements of stock-based compensation, net (40 ) (34 )
Dividends to noncontrolling interests (82 ) (63 )
Dividends paid (330 )       (318 )
Financing cash flows from continuing operations 1,275 670
Financing cash flows from discontinued operations, net         354  
Net cash provided by financing activities       $ 1,275         $ 1,024  
 
 
 
Consolidated Statements of Cash Flows       Edison International
 
Nine months ended
September 30,
(in millions, unaudited)       2013         2012  
Cash flows from investing activities:      
Capital expenditures $ (2,761 ) $ (3,105 )
Proceeds from sale of nuclear decommissioning trust investments 4,574 1,525
Purchases of nuclear decommissioning trust investments and other (4,857 ) (1,689 )
Proceeds from sale of interest in project, net 107
Investments in new businesses (18 )
Customer advances for construction and other investments (26 )       7  
Investing cash flows from continuing operations (3,088 ) (3,155 )
Investing cash flows from discontinued operations, net         (361 )
Net cash used by investing activities (3,088 )       (3,516 )
Net increase (decrease) in cash and cash equivalents 440 (334 )
Cash and cash equivalents at beginning of period 170         1,469  
Cash and cash equivalents at end of period 610 1,135
Cash and cash equivalents from discontinued operations         753  
Cash and cash equivalents from continuing operations       $ 610         $ 382  

Copyright Business Wire 2010

If you liked this article you might like

25 Stocks That Could Have a Terrible Start to 2018

25 Stocks That Could Have a Terrible Start to 2018

Cara Therapeutics, Thomson Reuters, Wynn Resorts: 'Mad Money' Lightning Round

Cara Therapeutics, Thomson Reuters, Wynn Resorts: 'Mad Money' Lightning Round

What's Holding Up This Market?: Cramer's 'Mad Money' Recap (Monday 12/11/17)

What's Holding Up This Market?: Cramer's 'Mad Money' Recap (Monday 12/11/17)

Wells Fargo Board Adds Three New Members In Latest Phase of Shakeup

Wells Fargo Board Adds Three New Members In Latest Phase of Shakeup

Green Energy Is Threatening to Cripple Many Utilities

Green Energy Is Threatening to Cripple Many Utilities