May 14, 2001
Edison International today reported a loss of $617 million or $1.89 per share for the first quarter of 2001 – reflecting the effect of a charge against earnings. The company’s regulated utility, Southern California Edison (SCE), reported an after-tax earnings charge of $661 million, or $2.03 per share, in the first quarter of 2001, reflecting the amount of purchased power costs which exceeded the company’s revenues. Assuming the Memorandum of Understanding (MOU) announced by Governor Davis and SCE is implemented or, alternatively, courts uphold Edison’s legal claims to recover its undercollected costs, this charge against earnings could later be reversed.
“Today’s financial charge simply recognizes the threatening reality of SCE’s continuing buildup of unreimbursed costs for procuring power on behalf of its customers,” said John Bryson, chairman and chief executive officer of Edison International. “We are committed to recovering those costs, restoring our financial health and serving well the 11 million people and 550,000 businesses who depend on us.”
FIRST QUARTER EARNINGS SUMMARY
Excluding the unreimbursed purchased power costs at SCE, for the quarter ending March 31, Edison International reported 2001 earnings of $43 million, compared with $110 million in 2000, and SCE earned $62 million in 2001, compared with $113 million in the same quarter last year. Edison Mission Energy (EME) earned $8 million in the first quarter of 2001, compared with a loss of $12 million in 2000. Edison Capital earned $12 million in the first three months of 2001, compared with $38 million in the same period of 2000.
Edison Enterprises and the parent company incurred losses of $40 million in the first quarter of 2001, compared with losses of $29 million in the same quarter last year.
FIRST QUARTER EARNINGS DETAIL
Quarter Ended March 31,
| Earnings ($000) |
2001 |
2000 |
Change |
| Reported Basis | |||
| SCE excluding charge* |
62,466 |
113,311 |
(50,845) |
| SCE charge* |
(660,641) |
-- |
(660,641) |
| SCE including charge* |
(598,175) |
113,311 |
(711,486) |
| Edison Mission Energy |
8,467 |
(12,471) |
20,938 |
| Edison Capital |
12,048 |
37,989 |
(25,941) |
|
(577,660) |
138,829 |
(716,489) | |
| Edison Enterprises & parent co. |
(39,641) |
(29,288) |
(10,353) |
| Edison International - consolidated |
$(617,301) |
$109,541 |
$(726,842) |
|
|
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|
2001 |
2000 |
Change | |||
| Reported Earnings Per Share | |||||
| Southern California Edison |
$(1.84) |
$0.33 |
$(2.17) | ||
| Edison Mission Energy |
0.03 |
(0.03) |
0.06 | ||
| Edison Capital |
0.04 |
0.11 |
(0.07) | ||
| Edison Enterprises & parent company |
(0.12) |
(0.09) |
(0.03) | ||
| Edison International - consolidated |
$(1.89) |
$0.32 |
$(2.21) | ||
| ========================== | |||||
TWELVE MONTHS ENDED EARNINGS SUMMARY
For the twelve months ended March 31, 2001, Edison International recorded a loss of $2.7 billion. The net loss for the twelve-month period included charges totaling $3.2 billion (after tax), or $9.71 per share, which are comprised of the write-off at SCE of generation-related regulatory assets in the fourth quarter of 2000 and the charge for SCE’s unreimbursed purchase power costs in the first quarter of 2001. Excluding the charges at SCE, Edison International earned $512 million for the twelve months ended March 31, 2001, compared with earnings of $589 million for the same period last year.
TWELVE MONTHS ENDED EARNINGS DETAIL
Twelve Months Ended
March 31,
| Earnings ($000) |
2001 |
2000 |
Change |
| Reported Basis | |||
| SCE excluding charges |
420,575 |
520,348 |
(99,773) |
| SCE charges |
(3,181,847) |
-- |
(3,181,847) |
| SCE including charges |
(2,761,272) |
520,348 |
(3,281,620) |
| Edison Mission Energy |
146,190 |
73,710 |
72,480 |
| Edison Capital |
109,385 |
127,161 |
(17,776) |
|
(2,505,697) |
721,219 |
(3,226,916) | |
| Edison Enterprises & parent co. |
(163,942) |
(131,858) |
(32,084) |
| Edison International - consolidated |
$(2,669,639) |
$589,361 |
$(3,259,000) |
|
|
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EME reported earnings of $146 million for the twelve-month period, up $72 million from the same period last year. The increase was primarily due to increased generation and higher energy prices from U.S. projects and stock plan expense adjustments. In addition, the increase includes earnings from projects acquired in July and December of 1999. The increase was partially offset by higher interest expense, lower power pool prices for FFF, and certain tax benefits including an after-tax gain during the fourth quarter of 1999 from the sale of a portion of EME's interest in Four Star Oil & Gas.
Edison Capital contributed $109 million for the twelve-month period compared to $127 million from the same period last year. The decrease was mainly the result of declining revenue from leveraged leases and higher interest expense. The decrease was partially offset by lower operating expenses, higher earnings from affordable housing projects and earnings from the FFF mezzanine financing transaction.
Edison Enterprises and the parent company recorded a $164 million loss for the twelve months ended March 31, 2001, compared to a $132 million loss in the same period last year. Increased interest expense at the parent company and a first quarter 2000 gain on sale of marketable securities was partially offset by improved operating performance at Edison Enterprises.
Twelve Months Ended
March 31,
|
2001 |
2000 |
Change | |
| Reported Earnings Per Share | |||
| Southern California Edison |
$(8.43) |
$1.50 |
$(9.93) |
| Edison Mission Energy |
0.45 |
0.21 |
0.24 |
| Edison Capital |
0.33 |
0.37 |
(0.04) |
| Edison Enterprises & parent company |
(0.50) |
(0.38) |
(0.12) |
| Edison International - consolidated |
$(8.15) |
$1.70 |
$(9.85) |
|
|
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