Edison International Reports Fourth Quarter and Full Year 2012 Results

Edison International Reports Fourth Quarter and Full Year 2012 Results

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

Core Earnings Summary

The increase in core earnings in the fourth quarter and full-year was driven by the implementation of Southern California Edison's (SCE) 2012 General Rate Case, which was approved by the California Public Utilities Commission in November 2012.

"These strong results demonstrate Southern California Edison's ongoing ability to deliver rate base growth and cost management during an extended period of rate case uncertainty," said Ted Craver, chairman and chief executive officer of Edison International. "Looking ahead, success in providing our customers with safe, reliable and affordable electricity provides the foundation for sustainable growth in earnings and dividends."

Note: Basic earnings and losses refer to net income or losses attributable to Edison International common shareholders throughout this release. Core earnings is a non-GAAP financial measure. See Reconciliation of Core Earnings to Basic Earnings.

Fourth Quarter Earnings Detail

Southern California Edison's (SCE) fourth quarter 2012 basic earnings were $2.56 per share compared to $0.76 per share in the fourth quarter of 2011. Core earnings were $1.85 per share compared to fourth quarter 2011 core earnings of $0.76 per share. The core earnings increase was primarily due to implementation of SCE's 2012 General Rate Case which allowed SCE to recover its revenue requirement retroactive to January 1, 2012, and record certain tax benefits. The fourth quarter 2012 results also include rate base growth and solid operating results, offset by severance costs as SCE continues to optimize its cost structure and minimize impacts on customer rates. Non-core items included a benefit from regulatory treatment of repair deductions for tax purposes during 2009 - 2011 as adopted in the 2012 General Rate Case.

Effective December 17, 2012, Edison International no longer consolidates the earnings and losses of Edison Mission Energy (EME) or its subsidiaries due to EME and certain of its subsidiaries filing voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. EME and those subsidiaries in Chapter 11 proceedings retain control of their assets and are authorized to operate their businesses as debtors-in-possession under the jurisdiction of the Bankruptcy Court. Edison International has recorded a full impairment of the investment in EME as a result of the deconsolidation of EME, recognition of losses previously deferred in accumulated other comprehensive income, a provision for losses from the EME bankruptcy, and estimated tax impacts related to the expected future tax deconsolidation and separation of EME from Edison International. The aggregate impact of these matters resulted in an after tax charge of $3.86 per share during the fourth quarter of 2012. Including EME quarterly earnings through the date of bankruptcy filing, the fourth quarter loss was $4.07 per share.

Edison International parent company and other reported a fourth quarter 2012 basic loss from continuing operations of $(0.14) per share compared to a $(0.08) per share loss from continuing operations in the fourth quarter of 2011. Core losses were $(0.06) per share compared to core earnings of $0.03 per in the same period last year. The decrease in core earnings was primarily due to changes in income taxes and higher operating expenses.

Full-Year Earnings Detail

SCE's basic earnings in 2012 were $4.81 per share compared to $3.33 per share in 2011. Core earnings were $4.10 per share compared to $3.33 per share in 2011. The increase in core earnings was primarily due to rate base growth, solid operating results and lower income taxes, offset by inspection and repair costs related to outages at the San Onofre Nuclear Generating Station and severance costs, as SCE continues to optimize its cost structure and minimize impacts on customer rates.

Edison International parent company and other reported 2012 basic losses from continuing operations of $(0.20) per share compared to basic losses from continuing operations of $(0.13) per share in 2011. Core losses were $(0.18) per share compared to ($0.02) per share last year. The increase in core losses was due to changes in income taxes and higher operating expenses in 2012.

2013 Earnings Guidance

The company announced 2013 basic and core earnings guidance of $3.45 to $3.65 per share. It has assumed no non-core items in its guidance. There is no expected impact of participating securities. See the risk disclosure statement in the Appendix and the presentation accompanying the company's conference call for further information.

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, 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

The prepared remarks made on the conference call by Ted Craver, chairman and chief executive officer of Edison International will be available at www.edisoninvestor.com.

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.

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.

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