EX-99.1 2 exh99-11q2013earningspress.htm EDISON INTERNATIONAL PRESS RELEASE DATED APRIL 30, 2013 Exh99-11Q2013EarningsPressRelease-Draft


 
 
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 2013 Results

ROSEMEAD, Calif., Apr. 30, 2013 – Edison International (NYSE: EIX) today reported first quarter results, as summarized below.

First Quarter Results Summary

 
 
 
Three Months Ended March 31,
Per Share
2013
2012
Basic earnings from continuing operations
$0.79
$0.54
Basic earnings (loss) from discontinued operations
0.04
(0.26)
Basic earnings (loss)
$0.83
$0.28
Core earnings
$0.77
$0.54
Note: See Use of Non-GAAP Financial Measures in Appendix.

Core Earnings Summary

The increase in core earnings in the first quarter was largely driven by the implementation of rates approved in Southern California Edison’s (SCE) 2012 General Rate Case (GRC), which was approved by the California Public Utilities Commission (CPUC) in November 2012.

“We're off to a strong start in the first quarter, with earnings consistent with our full-year guidance,” said Ted Craver, chairman and chief executive officer of Edison International. “Southern California Edison continues to make substantial investments in infrastructure improvements supporting state policy objectives."

First Quarter Earnings Detail

SCE's first quarter 2013 basic and core earnings were $0.78 per share compared to $0.56 per share in the first quarter of 2012. The core earnings increase was primarily due to the delay in receiving SCE's 2012 General Rate Case, lower operating expenses, largely due to timing, and tax benefits from incremental repair deductions.

Edison International parent company and other reported first quarter 2013 basic earnings from continuing operations of $0.01 per share compared to a $(0.02) per share loss from continuing operations in the first quarter of 2012. Core losses were $(0.01) per share compared to ($0.02) per share in the same period last year.



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Edison International Reports First Quarter 2013 Financial Results
Page 2 of 10

2013 Earnings Guidance

The company reaffirmed its 2013 core earnings guidance of $3.45 to $3.65 per share and updated its basic earnings guidance to a range of $3.51 to $3.71 per share based on first quarter results. 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 of 2/26/13
2013 Earnings Guidance as of 4/30/13
SCE
$3.70
$3.70
EIX Parent & Other
(0.15)
(0.15)
EIX Core EPS
$3.45 - $3.65
$3.45 - $3.65
Non-core Items
—
0.06
EIX Basic EPS
$3.45 - $3.65
$3.51 - $3.71
Note: See Use of Non-GAAP Financial Measures in Appendix. Non-core items from first quarter only.

About Edison International

Edison International (NYSE:EIX), 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, Calif., Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities.

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Edison International Reports First Quarter 2013 Financial Results
Page 3 of 10

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, and other reports 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 30, 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:    1-800-925-1773 (US) and 1-402-220-3092 (Int’l) - Passcode: 468529
Telephone replay available through May 9, 2013
Webcast:        www.edisoninvestor.com








Edison International Reports First Quarter 2013 Financial Results
Page 4 of 10

Summary Financial Schedules


First Quarter Basic Earnings Per Share

 
 
 
Three Months Ended March 31,
 
Earnings (Loss) Per Share
Attributable to Edison International

       2013

      2012

    Change
 
SCE
$0.78
$0.56
$0.22
 
EIX parent & other
0.01
(0.02)
0.03
Earnings from continuing operations
0.79
0.54
0.25
Earnings (loss) from discontinued operations1
0.04
(0.26)
0.30
Basic earnings2
$0.83
$0.28
$0.55
Diluted earnings
$0.82
$0.28
$0.54
1
Results for Edison Mission Energy reported as non-core discontinued operations for both periods.
2
The impact of participating securities on the per share amounts is included in EIX parent & other and was zero per share for both quarters.



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

 
 
 
Three Months Ended March 31,
 
Earnings Per Share
Attributable to Edison International

       2013

     2012


    Change
Core earnings (loss)1,2
 
 
 
 
SCE
$0.78
$0.56
$0.22
 
EIX parent & other
(0.01)
(0.02)
0.01
Core earnings
0.77
0.54
0.23
Non-core items
 
 
 
 
EIX parent & other
0.02
—

0.02
Earnings (loss) from discontinued operations
0.04
(0.26)
0.30
Total non-core items
0.06
(0.26)
0.32
Basic earnings1
$0.83
$0.28
$0.55
1
See Use of Non-GAAP Financial Measures in Appendix. The impact of participating securities on the per share amounts is included in EIX parent & other and was zero per share for both periods.
2
Results for Edison Mission Energy reported as non-core discontinued operations for both periods.





Edison International Reports First Quarter 2013 Financial Results
Page 5 of 10

First Quarter Basic Earnings

 
 
 
Three Months Ended March 31,
 
Earnings (Loss) (in millions)
Attributable to Edison International

    2013

        2012

 Change
 
SCE
$256
$182
$74
 
EIX parent & other
3
(5)
8
Earnings from continuing operations
259
177
82
Earnings (loss) from discontinued operations
12
(84)
96
Basic earnings
$271
$93
$178
Note: Results for Edison Mission Energy reported as non-core discontinued operations for both periods.



First Quarter Reconciliation of Core Earnings to Basic Earnings

 
 
 
Three Months Ended March 31,
 
Earnings (in millions)
Attributable to Edison International

      2013

        2012

    Change
Core earnings (loss)
 
 
 
 
SCE
$256
$182
$74
 
EIX parent & other
(4)
(5)
1
Core earnings
252
177
75
Non-core items
 
 
 
 
EIX parent & other
7
—

7
Earnings (loss) from discontinued operations
 
 

 
EIX parent & other
12
(84)
96
Total non-core items
19
(84)
103
Basic earnings
$271
$93
$178
Note: See Use of Non-GAAP Financial Measures in Appendix. Results for Edison Mission Energy reported as non-core discontinued operations for both periods.










Edison International Reports First Quarter 2013 Financial Results
Page 6 of 10

Consolidated Statements of Income
Edison International
 


 
Three months ended March 31,
(in millions, except per-share amounts, unaudited)
2013

2012
Operating revenue
2,632


2,415

Fuel
73


77

Purchased power
780


615

Operation and maintenance
873


946

Depreciation, decommissioning and amortization
414


388

Total operating expenses
2,140


2,026

Operating income
492


389

Interest and other income
34


34

Interest expense
(131
)

(126
)
Other expenses
(11
)

(10
)
Income from continuing operations before income taxes
384


287

Income tax expense
98


91

Income from continuing operations
286


196

Income (loss) from discontinued operations, net of tax
12


(84
)
Net income
298


112

Dividends on preferred and preference stock of utility
27


19

Net income attributable to Edison International common shareholders
$
271


$
93

Amounts attributable to Edison International common shareholders:



Income from continuing operations, net of tax
$
259


$
177

Income (loss) from discontinued operations, net of tax
12


(84
)
Net income attributable to Edison International common shareholders
$
271


$
93

Basic earnings (loss) per common share attributable to Edison International
common shareholders:



Weighted-average shares of common stock outstanding
326


326

Continuing operations
$
0.79


$
0.54

Discontinued operations
0.04


(0.26
)
Total
$
0.83


$
0.28

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
$
0.78


$
0.54

Discontinued operations
0.04


(0.26
)
Total
$
0.82


$
0.28

Dividends declared per common share
$
0.3375


$
0.325



Edison International Reports First Quarter 2013 Financial Results
Page 7 of 10

Consolidated Balance Sheets

Edison International
 









March 31,

December 31,
(in millions, unaudited)

2013

2012
ASSETS

 

 
Cash and cash equivalents

$
115


$
170

Receivables, less allowances of $67 and $75 for uncollectible accounts at respective dates

797


762

Accrued unbilled revenue

403


550

Inventory

351


340

Prepaid taxes

26


22

Derivative assets

111


129

Margin and collateral deposits

10


8

Regulatory assets

672


572

Other current assets

185


119

Total current assets

2,670


2,672

Nuclear decommissioning trusts

4,246


4,048

Investments in unconsolidated affiliates

2


2

Other investments

199


184

Total investments

4,447


4,234

Utility property, plant and equipment, less accumulated depreciation of $7,662 and $7,424 at respective dates

30,673


30,200

Nonutility property, plant and equipment, less accumulated depreciation of $126 and $123 at respective dates

72


73

Total property, plant and equipment

30,745


30,273

Derivative assets

81


85

Restricted deposits

4


4

Regulatory assets

6,518


6,422

Other long-term assets

690


704

Total long-term assets

7,293


7,215








Total assets

$
45,155


$
44,394



Edison International Reports First Quarter 2013 Financial Results
Page 8 of 10

Consolidated Balance Sheets

Edison International
 


 

 


March 31,

December 31,
(in millions, except share amounts, unaudited)

2013

2012
LIABILITIES AND EQUITY

 

 
Short-term debt

$
420


$
175

Current portion of long-term debt

800


—

Accounts payable

1,100


1,423

Accrued taxes

134


61

Accrued interest

126


176

Customer deposits

196


193

Derivative liabilities

107


126

Regulatory liabilities

443


536

Deferred income taxes

174


64

Other current liabilities

779


990

Total current liabilities

4,279


3,744

Long-term debt

8,829


9,231

Deferred income taxes

6,289


6,127

Deferred investment tax credits

103


104

Customer advances

150


149

Derivative liabilities

1,014


939

Pensions and benefits

2,610


2,614

Asset retirement obligations

2,824


2,782

Regulatory liabilities

5,470


5,214

Other deferred credits and other long-term liabilities

2,278


2,299

Total deferred credits and other liabilities

20,738


20,228

Total liabilities

33,846


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)

2,380


2,373

Accumulated other comprehensive loss

(87
)

(87
)
Retained earnings

7,262


7,146

Total Edison International's common shareholders' equity

9,555


9,432

Preferred and preference stock of utility

1,754


1,759

Total noncontrolling interests

1,754


1,759

Total equity

11,309


11,191

Total liabilities and equity

$
45,155


$
44,394



Edison International Reports First Quarter 2013 Financial Results
Page 9 of 10

Consolidated Statements of Cash Flows

Edison International
 



 

Three months ended March 31,
(in millions, unaudited)

2013

2012
Cash flows from operating activities:

 

 
Net income

$
298


$
112

Less: Income (loss) from discontinued operations

12


(84
)
Income from continuing operations

286


196

Adjustments to reconcile to net cash provided by operating activities:



 
Depreciation, decommissioning and amortization

414


388

Regulatory impacts of net nuclear decommissioning trust earnings

25


77

Other amortization and other

17


19

Stock-based compensation

6


8

Deferred income taxes and investment tax credits

174


30

Proceeds from U.S. treasury grants

—


29

Changes in operating assets and liabilities:



 
Receivables

(38
)

88

Inventory

(11
)

10

Margin and collateral deposits, net of collateral received

(2
)

(1
)
Prepaid taxes

(5
)

11

Other current assets

82


17

Accounts payable

(65
)

(47
)
Accrued taxes

60


170

Other current liabilities

(255
)

(302
)
Derivative assets and liabilities, net

79


273

Regulatory assets and liabilities, net

(199
)

(254
)
Other assets

(13
)

(9
)
Other liabilities

(49
)

72

Operating cash flows from continuing operations

506


775

Operating cash flows from discontinued operations, net

—


(98
)
Net cash provided by operating activities

506


677

Cash flows from financing activities:

 

 
Long-term debt issued

398


395

Long-term debt issuance costs

(4
)

(4
)
Long-term debt repaid

(1
)

(2
)
Preference stock issued, net

387


345

Preference stock redeemed

(400
)

—

Short-term debt financing, net

245


(86
)
Settlements of stock-based compensation, net

(32
)

(22
)
Dividends to noncontrolling interests

(30
)

(14
)
Dividends paid

(110
)

(106
)
Financing cash flows from continuing operations

453


506

Financing cash flows from discontinued operations, net

—


279

Net cash provided by financing activities

$
453


$
785



Edison International Reports First Quarter 2013 Financial Results
Page 10 of 10

Consolidated Statements of Cash Flows

Edison International
 



 

Three months ended March 31,
(in millions, unaudited)

2013

2012
Cash flows from investing activities:

 

 
Capital expenditures

$
(979
)

$
(1,189
)
Proceeds from sale of nuclear decommissioning trust investments

435


602

Purchases of nuclear decommissioning trust investments and other

(466
)

(684
)
Other investments and customer advances for construction

(4
)

(3
)
Investing cash flows from continuing operations

(1,014
)

(1,274
)
Investing cash flows from discontinued operations, net

—


(174
)
Net cash used by investing activities

(1,014
)

(1,448
)
Net (decrease) increase in cash and cash equivalents

(55
)

14

Cash and cash equivalents at beginning of period

170


1,469

Cash and cash equivalents at end of period

115


1,483

Cash and cash equivalents from discontinued operations

—


1,300

Cash and cash equivalents from continuing operations

$
115


$
183