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ROSEMEAD, Calif., February 23, 2016 - Edison International (NYSE: EIX) today reported fourth quarter 2015 net loss on a GAAP basis of $79 million, or $0.24 per share, compared to net income of $420 million, or $1.29 per share, in the fourth quarter of 2014. On an adjusted basis, Edison International’s fourth quarter 2015 core earnings were $287 million, or $0.88 per share, compared to $355 million, or $1.08 per share, in the fourth quarter of 2014.
Southern California Edison's (SCE) fourth quarter 2015 core earnings decreased by $66 million, or $0.20 per share, from the fourth quarter 2014 primarily due to lower authorized California Public Utilities Commission (CPUC) revenue from implementation of the 2015 CPUC General Rate Case (GRC) decision and higher income taxes, partially offset by lower operation and maintenance costs. Edison International Parent and Other’s fourth quarter 2015 core loss increased by $2 million compared to fourth quarter 2014 core losses primarily due to income taxes and expenses.
Fourth quarter 2015 core earnings exclude losses of $366 million, or $1.12 per share, primarily related to the $382 million, or $1.18 per share, write-down of SCE regulatory assets previously recorded for recovery of deferred income taxes from 2012-2014 incremental tax repair deductions. Fourth quarter 2014 core earnings exclude SCE income of $24 million, or $0.08 per share, related to a revised estimated impact of the San Onofre Nuclear Generating Station (SONGS) Settlement Agreement, and income of $41 million, or $0.13 per share, primarily due to discontinued operations.
“Our results are well ahead of earnings guidance,” said Ted Craver, chairman and chief executive officer of Edison International, “and reflect SCE’s strong rate base growth and continued focus on operational excellence. With the potential for continued long-term growth and productivity improvements at SCE along with continued development of Edison Energy Group’s businesses, Edison International is well-positioned in a rapidly changing industry.”
For the year ended December 31, 2015, Edison International reported net income on a GAAP basis of $1.02 billion, or $3.13 per share, compared to $1.612 billion, or $4.95 per share, during 2014. On an adjusted basis, Edison International’s core earnings were $1.336 billion, or $4.10 per share, compared to $1.497 billion, or $4.59 per share, in 2014.
SCE’s core earnings for the year ended December 31, 2015 decreased $157 million, or $0.48 per share, from 2014, primarily due to lower CPUC-related revenue from implementation of the 2015 CPUC GRC decision and higher income taxes, partially offset by an increase in Federal Energy Regulatory Commission-related revenue from rate base growth, lower operation and maintenance costs and earnings on funds used during construction. Edison International Parent and Other’s 2015 core losses increased $4 million, or $0.01 per share, compared to 2014 primarily due to income taxes and expenses.
2015 core earnings exclude losses of $316 million, or $0.97 per share, primarily related to the $382 million, or $1.18 per share, write-down of SCE regulatory assets. 2014 core earnings exclude SCE net charges of $72 million, or $0.22 per share, related to the SONGS Settlement, and income of $187 million, or $0.58 per share, primarily due to discontinued operations.
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 announced core and basic earnings guidance of $3.81 to $4.01 per share for 2016. See the presentation accompanying the company’s conference call for further information including key guidance assumptions.
2016 Core and Basic Earnings Guidance as of February 23, 2016
|EIX Parent & Other||(0.18)|
|EIX Core EPS||$3.81||$3.91||$4.01|
|EIX Basic EPS||$3.81||$3.91||$4.01|
About Edison International
Edison International (NYSE: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.