Edison International EIX today reported first quarter 2016 net income on a GAAP basis of $271 million, or $0.83 per share, compared to $299 million, or $0.92 per share, in the first quarter of 2015. On an adjusted basis, Edison International's first quarter 2016 core earnings were $268 million, or $0.82 per share, compared to $294 million, or $0.90 per share, in the first quarter of 2015.
Southern California Edison's (SCE) first quarter 2016 core earnings decreased by $18 million, or $0.05 per share, from the first quarter 2015 primarily due to the timing of revenue recognized in 2015 due to the delay in receiving the 2015 California Public Utilities Commission General Rate Case decision, higher operation and maintenance costs and lower incremental income tax benefits.
Edison International Parent and Other's first quarter 2016 core losses increased by $8 million, or $0.03 per share, compared to first quarter 2015 core losses primarily due to higher development and operating costs at Edison Energy Group and subsidiaries and income in the first quarter of 2015 from Edison Capital's investments in affordable housing projects.
Edison International's first quarter 2016 core earnings exclude income of $3 million, or $0.01 per share, and first quarter 2015 core earnings exclude income of $5 million, or $0.02 per share, both primarily related to losses allocated to tax equity investors under the hypothetical liquidation at book value accounting method.
"First quarter results were consistent with our expectation leading us to reaffirm 2016 core earnings guidance," said Ted Craver, chairman and chief executive officer of Edison International. "At SCE, we continue to see significant rate base growth driven by continued investment in infrastructure reliability and public safety and supporting California's low-carbon policy objectives."
Edison International uses core earnings, which is a non-GAAP financial measure that adjusts for significant discrete items that management does not consider representative of ongoing earnings. Edison International management believes that core earnings provide more meaningful comparisons of performance from period to period. Please see the attached tables for a reconciliation of core earnings to basic GAAP earnings.
2016 Earnings Guidance
The company reaffirmed core earnings guidance of $3.81 to $4.01 per share for 2016 and updated its basic earnings guidance to $3.82 to $4.02 per share for a first quarter non-core item. See the presentation accompanying the company's conference call for further information including key guidance assumptions.
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2016 Core and Basic Earnings Guidance |
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| 2016 Earnings Guidance | 2016 Earnings Guidance | |||||||||||||||||||||||||||||||
| as of February 23, 2016 | as of May 2, 2016 | |||||||||||||||||||||||||||||||
| Low | Mid | High | Low | Mid | High | |||||||||||||||||||||||||||
| SCE | $ | 4.09 | $ | 4.09 | ||||||||||||||||||||||||||||
| EIX Parent & Other | (0.18 | ) | (0.18 | ) | ||||||||||||||||||||||||||||
| EIX Core EPS | $ | 3.81 | $ | 3.91 | $ | 4.01 | $ | 3.81 | $ | 3.91 | $ | 4.01 | ||||||||||||||||||||
| Non-core Items* | - | - | - | 0.01 | 0.01 | 0.01 | ||||||||||||||||||||||||||
| EIX Basic EPS | $ | 3.81 | $ | 3.91 | $ | 4.01 | $ | 3.82 | $ | 3.92 | $ | 4.02 | ||||||||||||||||||||
|
* Non-core items recorded for the three months ended March 31, 2016. |
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About Edison International
Edison International 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 of Edison International and Southern California Edison. 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 as net income, basic EPS, core earnings, or core EPS also apply 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 awards 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 Edison International Parent and 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 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: | Monday, May 2, 2016, 1:30 p.m. (Pacific Time) | |||
| Telephone Numbers: | 1-800-369-2198 (US) and 1-773-756-4618 (Int'l) - Passcode: Edison | |||
| Telephone Replay: | 1-866-378-7479 (US) and 1-203-369-0329 (Int'l) - Passcode: 50216 | |||
| Telephone replay available through May 13, 2016 | ||||
| Webcast: | ||||
|
First Quarter Reconciliation of Core Earnings Per Share to Basic Earnings Per Share |
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|
Three months ended |
||||||||||||||||||
| 2016 | 2015 | Change | ||||||||||||||||
| Earnings (loss) per share attributable to Edison International | ||||||||||||||||||
| Continuing operations | ||||||||||||||||||
| SCE | $ | 0.88 | $ | 0.93 | $ | (0.05 | ) | |||||||||||
| Edison International Parent and Other | (0.05 | ) | (0.01 | ) | (0.04 | ) | ||||||||||||
| Discontinued operations | — | — | — | |||||||||||||||
| Edison International | 0.83 | 0.92 | (0.09 | ) | ||||||||||||||
| Less: Non-core items | ||||||||||||||||||
| SCE | — | — | — | |||||||||||||||
| Edison International Parent and Other | 0.01 | 0.02 | (0.01 | ) | ||||||||||||||
| Discontinued operations | — | — | — | |||||||||||||||
| Total non-core items | 0.01 | 0.02 | (0.01 | ) | ||||||||||||||
| Core earnings (losses) | ||||||||||||||||||
| SCE | 0.88 | 0.93 | (0.05 | ) | ||||||||||||||
| Edison International Parent and Other | (0.06 | ) | (0.03 | ) | (0.03 | ) | ||||||||||||
| Edison International | $ | 0.82 | $ | 0.90 | $ | (0.08 | ) | |||||||||||
|
Note: Diluted earnings were $0.82 and $0.91 per share for the three months ended March 31, 2016 and 2015, respectively. |
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|
First Quarter Reconciliation of Core Earnings to Basic Earnings (in millions) |
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|
Three months ended |
||||||||||||||||||
| (in millions) | 2016 | 2015 | Change | |||||||||||||||
| Net income (loss) attributable to Edison International | ||||||||||||||||||
| Continuing operations | ||||||||||||||||||
| SCE | $ | 287 | $ | 305 | $ | (18 | ) | |||||||||||
| Edison International Parent and Other | (17 | ) | (6 | ) | (11 | ) | ||||||||||||
| Discontinued operations | 1 | — | 1 | |||||||||||||||
| Edison International | 271 | 299 | (28 | ) | ||||||||||||||
| Less: Non-core items | ||||||||||||||||||
| SCE | — | — | — | |||||||||||||||
| Edison International Parent and Other | 2 | 5 | (3 | ) | ||||||||||||||
| Discontinued operations | 1 | — | 1 | |||||||||||||||
| Total non-core items | 3 | 5 | (2 | ) | ||||||||||||||
| Core earnings (losses) | ||||||||||||||||||
| SCE | 287 | 305 | (18 | ) | ||||||||||||||
| Edison International Parent and Other | (19 | ) | (11 | ) | (8 | ) | ||||||||||||
| Edison International | $ | 268 | $ | 294 | $ | (26 | ) | |||||||||||
| Consolidated Statements of Income | Edison International | ||||||||||||
|
Three months ended March 31, |
|||||||||||||
| (in millions, except per-share amounts, unaudited) | 2016 | 2015 | |||||||||||
| Total operating revenue | $ | 2,440 | $ | 2,512 | |||||||||
| Purchased power and fuel | 794 | 786 | |||||||||||
| Operation and maintenance | 629 | 636 | |||||||||||
| Depreciation, decommissioning and amortization | 477 | 463 | |||||||||||
| Property and other taxes | 92 | 89 | |||||||||||
| Total operating expenses | 1,992 | 1,974 | |||||||||||
| Operating income | 448 | 538 | |||||||||||
| Interest and other income | 31 | 39 | |||||||||||
| Interest expense | (140 | ) | (143 | ) | |||||||||
| Other expenses | (6 | ) | (10 | ) | |||||||||
| Income from continuing operations before income taxes | 333 | 424 | |||||||||||
| Income tax expense | 38 | 106 | |||||||||||
| Income from continuing operations | 295 | 318 | |||||||||||
| Income from discontinued operations, net of tax | 1 | — | |||||||||||
| Net income | 296 | 318 | |||||||||||
| Preferred and preference stock dividend requirements of SCE | 30 | 28 | |||||||||||
| Other noncontrolling interests | (5 | ) | (9 | ) | |||||||||
| Net income attributable to Edison International common shareholders | $ | 271 | $ | 299 | |||||||||
| Amounts attributable to Edison International common shareholders: | |||||||||||||
| Income from continuing operations, net of tax | $ | 270 | $ | 299 | |||||||||
| Income from discontinued operations, net of tax | 1 | — | |||||||||||
| Net income attributable to Edison International common shareholders | $ | 271 | $ | 299 | |||||||||
| Basic earnings per common share attributable to Edison International common shareholders: | |||||||||||||
| Weighted-average shares of common stock outstanding | 326 | 326 | |||||||||||
| Continuing operations | $ | 0.83 | $ | 0.92 | |||||||||
| Total | $ | 0.83 | $ | 0.92 | |||||||||
| Diluted earnings per common share attributable to Edison International common shareholders: | |||||||||||||
| Weighted-average shares of common stock outstanding, including effect of dilutive securities | 328 | 329 | |||||||||||
| Continuing operations | $ | 0.82 | $ | 0.91 | |||||||||
| Total | $ | 0.82 | $ | 0.91 | |||||||||
| Dividends declared per common share | $ | 0.4800 | $ | 0.4175 | |||||||||
| Consolidated Balance Sheets | Edison International | |||||||||
| (in millions, unaudited) |
March 31, |
December 31, |
||||||||
| ASSETS | ||||||||||
| Cash and cash equivalents | $ | 137 | $ | 161 | ||||||
| Receivables, less allowances of $59 and $62 for uncollectible accounts at respective dates | 649 | 771 | ||||||||
| Accrued unbilled revenue | 512 | 565 | ||||||||
| Inventory | 268 | 267 | ||||||||
| Derivative assets | 65 | 79 | ||||||||
| Regulatory assets | 538 | 560 | ||||||||
| Other current assets | 258 | 251 | ||||||||
| Total current assets | 2,427 | 2,654 | ||||||||
| Nuclear decommissioning trusts | 4,290 | 4,331 | ||||||||
| Other investments | 208 | 203 | ||||||||
| Total investments | 4,498 | 4,534 | ||||||||
| Utility property, plant and equipment, less accumulated depreciation and amortization of $8,751 and $8,548 at respective dates | 35,323 | 34,945 | ||||||||
| Nonutility property, plant and equipment, less accumulated depreciation of $88 and $85 at respective dates | 141 | 140 | ||||||||
| Total property, plant and equipment | 35,464 | 35,085 | ||||||||
| Derivative assets | 78 | 84 | ||||||||
| Regulatory assets | 7,628 | 7,512 | ||||||||
| Other long-term assets | 364 | 360 | ||||||||
| Total long-term assets | 8,070 | 7,956 | ||||||||
| Total assets | $ | 50,459 | $ | 50,229 | ||||||
| Consolidated Balance Sheets | Edison International | ||||||||||
| (in millions, except share amounts, unaudited) |
March 31, |
December 31, |
|||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Short-term debt | $ | 363 | $ | 695 | |||||||
| Current portion of long-term debt | 295 | 295 | |||||||||
| Accounts payable | 938 | 1,310 | |||||||||
| Accrued taxes | 139 | 72 | |||||||||
| Customer deposits | 253 | 242 | |||||||||
| Derivative liabilities | 232 | 218 | |||||||||
| Regulatory liabilities | 1,157 | 1,128 | |||||||||
| Other current liabilities | 856 | 967 | |||||||||
| Total current liabilities | 4,233 | 4,927 | |||||||||
| Long-term debt | 11,243 | 10,883 | |||||||||
| Deferred income taxes and credits | 7,699 | 7,480 | |||||||||
| Derivative liabilities | 1,136 | 1,100 | |||||||||
| Pensions and benefits | 1,771 | 1,759 | |||||||||
| Asset retirement obligations | 2,597 | 2,764 | |||||||||
| Regulatory liabilities | 5,920 | 5,676 | |||||||||
| Other deferred credits and other long-term liabilities | 2,225 | 2,246 | |||||||||
| Total deferred credits and other liabilities | 21,348 | 21,025 | |||||||||
| Total liabilities | 36,824 | 36,835 | |||||||||
| Commitments and contingencies | |||||||||||
| Redeemable noncontrolling interest | 4 | 6 | |||||||||
| Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at respective dates) | 2,491 | 2,484 | |||||||||
| Accumulated other comprehensive loss | (54 | ) | (56 | ) | |||||||
| Retained earnings | 9,002 | 8,940 | |||||||||
| Total Edison International's common shareholders' equity | 11,439 | 11,368 | |||||||||
| Noncontrolling interests – preferred and preference stock of SCE | 2,192 | 2,020 | |||||||||
| Total equity | 13,631 | 13,388 | |||||||||
| Total liabilities and equity | $ | 50,459 | $ | 50,229 | |||||||
| Consolidated Statements of Cash Flows | Edison International | ||||||||||
|
Three months ended March 31, |
|||||||||||
| (in millions, unaudited) | 2016 | 2015 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 296 | $ | 318 | |||||||
| Less: Income from discontinued operations | 1 | — | |||||||||
| Income from continuing operations | 295 | 318 | |||||||||
| Adjustments to reconcile to net cash provided by operating activities: | |||||||||||
| Depreciation, decommissioning and amortization | 499 | 485 | |||||||||
| Allowance for equity during construction | (22 | ) | (21 | ) | |||||||
| Deferred income taxes and investment tax credits | 35 | 72 | |||||||||
| Other | 5 | 5 | |||||||||
| Nuclear decommissioning trusts | (106 | ) | 29 | ||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables | 117 | 31 | |||||||||
| Inventory | (1 | ) | (10 | ) | |||||||
| Accounts payable | (184 | ) | 63 | ||||||||
| Prepaid and accrued taxes | 66 | 38 | |||||||||
| Other current assets and liabilities | (43 | ) | (229 | ) | |||||||
| Derivative assets and liabilities, net | 5 | (10 | ) | ||||||||
| Regulatory assets and liabilities, net | 119 | 193 | |||||||||
| Other noncurrent assets and liabilities | 68 | — | |||||||||
| Net cash provided by operating activities | 853 | 964 | |||||||||
| Cash flows from financing activities: | |||||||||||
|
Long-term debt issued, net of discount and issuance costs of $3 and $13 for respective periods |
397 | 1,287 | |||||||||
| Long-term debt matured | (40 | ) | (419 | ) | |||||||
| Preference stock issued, net | 294 | — | |||||||||
| Preference stock redeemed | (125 | ) | — | ||||||||
| Short-term debt financing, net | (332 | ) | (355 | ) | |||||||
| Dividends to noncontrolling interests | (35 | ) | (34 | ) | |||||||
| Dividends paid | (156 | ) | (136 | ) | |||||||
| Other | (46 | ) | (30 | ) | |||||||
| Net cash (used in) provided by financing activities | (43 | ) | 313 | ||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (951 | ) | (1,268 | ) | |||||||
| Proceeds from sale of nuclear decommissioning trust investments | 793 | 1,026 | |||||||||
| Purchases of nuclear decommissioning trust investments | (687 | ) | (1,062 | ) | |||||||
| Other | 11 | 10 | |||||||||
| Net cash used in investing activities | (834 | ) | (1,294 | ) | |||||||
| Net decrease in cash and cash equivalents | (24 | ) | (17 | ) | |||||||
| Cash and cash equivalents at beginning of period | 161 | 132 | |||||||||
| Cash and cash equivalents at end of period | $ | 137 | $ | 115 | |||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160502005941/en/
Edison International
Media relations contact:
Charles
Coleman, (626) 302-7982
or
Investor relations contact:
Scott
Cunningham, (626) 302-2540
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