Edison International Reports Second Quarter 2013 Results

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Edison International Reports Second Quarter 2013 Results

ROSEMEAD, Calif.--(BUSINESS WIRE)-- Edison International (NYS: EIX) today reported second quarter results, as summarized below.

       

Second Quarter and Year-to-Date Results Summary

 
Three Months Ended

June 30,

Six Months Ended

June 30,

Per Share   2013   2012   2013   2012
Basic earnings (loss) from continuing operations$(0.33)   $0.56$0.47   $1.10
Basic earnings (loss) from discontinued operations    0.04    (0.33)    0.07    (0.59)
Basic earnings (loss)   $(0.29)   $0.23    $0.54   $0.51 
Core earnings   $0.79    $0.56    $1.57   $1.10 

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


"As in the first quarter, strong operating results from Southern California Edison reflect higher authorized investment in our electric grid infrastructure, good cost management, and favorable tax benefits," said Ted Craver, chairman and chief executive officer of Edison International. "These results are consistent with the updated Edison International earnings guidance that we provided in June and that we reaffirmed today."

Second Quarter Earnings Detail

Southern California Edison's (SCE) second quarter 2013 basic losses were $(0.28) per share compared to earnings of $0.59 per share in the second quarter of 2012, and includes an impairment charge of $1.12 per share related to the early retirement of San Onofre Nuclear Generating Station (SONGS) Units 2 and 3.

SCE's second quarter 2013 core earnings, excluding the SONGS impairment charge, were $0.84 per share compared to $0.59 per share in the second quarter of 2012. The core earnings increase was primarily due to the timing of the 2012 General Rate Case (GRC) which was approved by the California Public Utilities Commission (CPUC) in November 2012, lower operating expenses, and tax benefits, offset by severance costs.

Edison International parent company and other reported second quarter 2013 basic and core losses from continuing operations of $(0.05) per share compared to $(0.03) per share in the second quarter of 2012. The decrease in core earnings was mainly due to consolidated taxes.

Year-to-Date Earnings Summary

Edison International reported basic earnings of $0.54 per share for the year-to-date period ending June 30, 2013, compared to $0.51 per share for the same period last year. Core earnings for the first six months of 2013 were $1.57 per share compared to $1.10 per share for the first half of 2012.

Year-to-Date Earnings Detail

SCE's year-to-date 2013 basic earnings were $0.51 per share, including the second quarter SONGS impairment charge of $1.12 per share, compared to $1.14 per share for the same period last year.

SCE's year-to-date core earnings were $1.63 per share compared to $1.14 per share for the same period last year. The core earnings increase was primarily due to the timing of finalizing SCE's 2012 General Rate Case, lower operating expenses, and tax benefits from incremental repair deductions, partially offset by severance costs. The increased return on rate base growth was offset by the lower authorized return on equity.

Edison International parent company and other reported year-to-date 2013 basic losses from continuing operations of $(0.04) per share compared to $(0.04) per share in the same period in 2012. Core losses from continuing operations in the year-to-date period of 2013 were $(0.06) per share compared to $(0.04) per share in the same period in 2012. The decrease in core earnings for the year-to-date period in 2013 was mainly due to consolidated taxes.

2013 Earnings Guidance

The company reaffirmed its 2013 core earnings guidance of $3.25 to $3.45 per share and updated its basic earnings guidance to $2.22 to $2.42 per share. 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 6/7/13

        

2013 Earnings Guidance

as of 8/1/13

SCE   $3.50        $3.50
EIX Parent & Other   (0.15)        (0.15)
EIX Core EPS   $3.25 - $3.45        $3.25 - $3.45
Non-core Items   (1.24) - (0.86)        (1.03)
EIX Basic EPS   $2.01 - $2.59        $2.22 - $2.42

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

About Edison International

Edison International (NYS: 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.

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:   Thursday, August 1, 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 August 12, 2013
Webcast:

www.edisoninvestor.com

 

Summary Financial Schedules

          

Second Quarter Basic Earnings (Loss) Per Share

 
Three Months Ended June 30,

Earnings (Loss) Per Share

Attributable to Edison International

   

2013

     

2012

     

Change

SCE$(0.28)     $0.59$(0.87)
 EIX parent & other    (0.05)      (0.03)      (0.02)
Earnings from continuing operations    (0.33)      0.56      $(0.89)
Earnings (loss) from discontinued operations    0.04       (0.33)     $0.37 
Basic earnings   $(0.29)     $0.23      $(0.52)
Diluted earnings   $(0.29)     $0.22      $(0.51)

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

          

Second Quarter Reconciliation of Core Earnings (Loss) Per Share

to Basic Earnings (Loss) Per Share

 
Three Months Ended June 30,

Earnings Per Share

Attributable to Edison International

   

2013

     

2012

     

Change

Core earnings (loss)     
SCE$0.84$0.59$0.25
 EIX parent & other   (0.05)     (0.03)     (0.02)
Core earnings   0.79      0.56      0.23 
Non-core items
SCE - SONGS impairment(1.12)(1.12)
EIX parent & other
Earnings (loss) from discontinued operations   0.04      (0.33)     0.37 
Total non-core items   (1.08)     (0.33)     (0.75)
Basic earnings   $(0.29)     $0.23      $(0.52)

Note: See Use of Non-GAAP Financial Measures in Appendix. Results for Edison Mission Energy reported as non-core discontinued operations for both periods.

          

Second Quarter Basic Earnings (Loss)

 
Three Months Ended June 30,

Earnings (Loss) (in millions)

Attributable to Edison International

   

2013

     

2012

     

Change

SCE$(91)     $191$(282)
 EIX parent & other    (15)      (8)      (7)
Earnings from continuing operations    (106)      183       (289)
Earnings (loss) from discontinued operations    12       (109)      121 
Basic earnings   $(94)     $74      $(168)

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

           
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