(Source: Business Wire)
Edison International (NYSE: EIX) today reported third quarter 2009 GAAP
earnings of $1.23 per share, compared to $1.33 per share in the same
quarter last year. Third quarter 2009 core earnings were $1.09 per share
compared to $1.46 per share in the third quarter 2008. The decline is
largely attributable to lower earnings at Edison Mission Group (EMG),
partially offset by higher operating results at Southern California
Edison (SCE). Core earnings exclude discontinued operations and other
non-core items as discussed below.
"Edison International is on track to meet its financial objectives laid
out for investors at the beginning of the year. Our strong focus on
execution in managing our operations helped us to achieve a good
quarter," said Theodore F. Craver, Jr., chairman and chief executive
officer of Edison International.
Third Quarter Earnings Detail
SCE's third quarter 2009 GAAP earnings were $1.06 per share compared to
$0.72 per share in the third quarter 2008. Core earnings were $0.92 per
share compared to $0.87 per share in the same quarter last year. This
increase was primarily due to higher operating income associated with
the utility's 2009 General Rate Case (GRC) and lower nonoperating
expenses, partially offset by higher income tax expense. SCE also
recorded a non-core benefit in the third quarter 2009 of $0.14 per share
to reflect the non-cash accounting benefit from the final regulatory
approval to transfer its Mountainview power plant to utility rate base.
SCE recorded a $0.15 per share non-core charge in the third quarter 2008
resulting from the California Public Utilities Commission (CPUC)
performance-based ratemaking decision.
EMG's third quarter 2009 GAAP earnings were $0.19 per share compared to
$0.66 per share in the third quarter 2008. Core earnings were $0.19 per
share compared to $0.64 per share in the same quarter last year. Core
earnings declined primarily from lower income at its coal- and gas-fired
projects driven by lower energy prices and from lower trading income.
Core results for the 2008 period included a $0.05 per share charge
related to power contracts with Lehman Brothers and excluded $0.02 per
share from discontinued operations.
Edison International parent company and other reported a third quarter
2009 loss of $0.02 per share compared to a $0.05 per share loss in the
third quarter 2008.
Note: GAAP earnings and losses refer to net income or losses
attributable to Edison International and GAAP earnings or losses per
share refer to basic earnings or losses per common share attributable to
Edison International throughout this release. Core earnings is a
non-GAAP financial measure. See Reconciliation of Core Earnings to GAAP
Earnings and Reconciliation of Core Earnings Guidance to GAAP Earnings
Guidance.
Year-to-Date Earnings Summary
Edison International reported GAAP earnings of $1.94 per share for the
nine-month period ending September 30, 2009, compared to $3.03 per share
for the same period last year. Core earnings for the first nine months
of 2009 were $2.66 per share compared to $3.18 per share for the same
period in 2008. Non-core items included an $0.85 per share charge from
the global tax settlement with the Internal Revenue Service and the
associated termination of Edison Capital's cross-border, leveraged
leases, SCE's third quarter non-core items discussed above and
discontinued operations at EMG.
Year-to-Date Earnings Detail
SCE's GAAP earnings through September 30, 2009 were $3.23 per share
compared to $1.66 per share in the same period last year. Core earnings
for the first nine months of 2009 were $2.17 per share compared to $1.81
per share for the same period in 2008. The increase in core earnings
reflects higher operating income related to the GRC decision and lower
nonoperating expenses, partially offset by higher income tax expense.
SCE's year-to-date core earnings exclude the impact of the global tax
settlement, the impact from the transfer of the Mountainview power plant
to utility rate base in 2009 and the CPUC's performance-based ratemaking
decision in 2008.
EMG's GAAP loss through September 30, 2009 was $1.38 per share compared
to GAAP earnings of $1.47 per share in the same period last year.
Year-to-date core earnings for EMG were $0.55 per share compared to
$1.47 per share in the same period last year. This decrease reflects
lower income at its coal- and gas-fired projects driven by lower energy
prices as well as lower trading income, lower earnings at Edison Capital
and the favorable buy-out of a coal contract in 2008. EMG's year-to-date
core earnings exclude the impacts of the global tax settlement together
with discontinued operations.
Edison International parent company and other reported GAAP earnings
through September 30, 2009 of $0.09 per share, compared to a loss of
$0.10 per share in the same period last year. GAAP earnings include a
$0.15 per share benefit in the first half of 2009 related to the global
tax settlement.
2009 Earnings Guidance
The company narrowed its 2009 earnings guidance range to $2.23 to $2.43
per share on a GAAP basis and $2.95 to $3.15 per share on a core basis.
See the risk disclosure statement in Appendix below and the presentation
accompanying the company's conference call for further information.
Reconciliation of Core Earnings Guidance to GAAP Earnings Guidance1
Core Earnings Per Share1 2009 Earnings Guidance as of August 7, 2009 2009 Earnings Guidance as of November 6, 2009
EIX core earnings $2.90 -- $3.20 $2.95 -- $3.15
Non-core items:
Global tax settlement: (0.85)
SCE $0.92
EMG (1.92)
EIX parent company and other 0.15
SCE -- regulatory item 0.14
EMG -- Discontinued Operations (0.01)
Total Non-Core Items (0.72) (0.72)
EIX GAAP earnings $2.18 -- $2.48 $2.23 -- $2.43
Midpoint of 2009 core guidance by business element:
SCE $2.49 $2.55
EMG 0.70 0.60
EIX parent company and other (0.14) (0.10)
Total $3.05 $3.05
(1) See Use of Non-GAAP Financial Measures in Appendix below. GAAP earnings per share refer to basic earnings per common share attributable to Edison International common shareholders. The expected impact of participating securities is $(0.02) per share and is included in EIX parent company and other.
-------------------------------------------------------------------------------
About Edison International
Edison International, 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,
California, Edison International is the parent company of Southern
California Edison, one of the nation's largest electric utilities, and
Edison Mission Group, a competitive power generation business and parent
company to Edison Mission Energy and Edison Capital.
Appendix
Use of Non-GAAP Financial Measures, Conference Call Information, Risk
Disclosure Statement and Financial Schedules
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 EPS by
principal operating subsidiary internally for financial planning and for
analysis of performance. We also use core earnings and EPS by principal
operating subsidiary as primary performance measurements when
communicating with analysts and investors regarding our earnings results
and outlook, as it allows us to more accurately compare the company's
ongoing performance across periods.
Core earnings exclude discontinued operations and other non-core items
and are reconciled to GAAP earnings. Earnings per share (EPS) by
principal operating subsidiary is based on the principal operating
subsidiary net income attributable to the common shareholders of each
operating subsidiary, respectively, and Edison International's weighted
average outstanding common shares. The impact of participating
securities (vested stock options that earn dividend equivalents that may
participate in undistributed earnings with common stock) for each
principal operating subsidiary is not material to each principal
operating subsidiary's EPS and is therefore reflected in the results of
the Edison International holding company, which we refer to as EIX
parent company and other. EIX core EPS and core EPS by principal
operating subsidiary are reconciled to GAAP EPS.
Reminder: Edison International Will Hold
a Conference Call Today
Today, Edison International will hold a conference call to discuss its
third quarter 2009 financial results at 8 a.m. (Pacific Standard Time).
Two-way participation in the telephone call is limited to financial
analysts and investors, while all other interested parties are invited
to participate in a simultaneous webcast at www.edisoninvestor.com.
A presentation accompanying management's comments on the conference call
will be available on the web site as well at www.edisoninvestor.com.
The domestic call-in number is (888) 889-2168 and the number for
international callers is (773) 681-5951. The ID is "Edison." In addition
to the live simulcast, the webcast will remain posted at www.edisoninvestor.com
and telephone replays will be available through Nov. 13, 2009 at the
following numbers: (800) 283-6499 for callers in the United States and
(402) 220-9734 for international callers. The replay passcode is 80709.
Risk Disclosure Statement
Statements contained in this news release about future performance,
including, without limitation, earnings guidance, asset and rate base
growth, load growth, capital investments and other statements that are
not purely historical, are forward-looking statements. 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" in Edison
International's 2008 Form 10-K and other reports filed with the
Securities and Exchange Commission and are available on our Web site at www.edisoninvestor.com.
