July 20, 2001
ROSEMEAD, Calif., July 20, 2001 -- Today, Edison International (NYSE:EIX) reported a loss of $102 million, or 31 cents per share, for the second quarter of 2001. These results include an after-tax operating loss of $63 million, or 19 cents per share, reflecting unrecovered generation-related costs at the company's regulated utility, Southern California Edison (SCE), and a one-time adjustment at Edison Enterprises (EE), the company's retail subsidiary.
In the second quarter of 2001, Edison Enterprises incurred a one-time, after-tax adjustment against earnings of $117 million, or 36 cents per share, reflecting the anticipated sales of Edison Select and Edison Source. Edison Enterprises has entered into an agreement to sell Edison Select to ADT Security Services. This transaction is expected to close in August 2001. Edison Source has signed a letter of intent to sell substantially all of its assets to the current management of Edison Source.
On an operating basis, excluding the one-time adjustment against earnings at Edison Enterprises, earnings at Edison International were $16 million, or five cents per share, for the second quarter of 2001.
SECOND QUARTER EARNINGS DETAIL
|
Quarter Ended June 30, | |||
| Earnings ($000) |
2001 |
2000 |
Change |
| Operating Basis | |||
| SCE excluding unrecovered power costs |
$91,287 |
$156,362 |
$(65,075) |
| SCE unrecovered power costs |
(63,111) |
-- |
(63,111) |
| SCE including unrecovered power costs |
28,176 |
156,362 |
(128,186) |
| Edison Mission Energy |
284 |
(18,524) |
18,808 |
| Edison Capital |
23,622 |
39,129 |
(15,507) |
|
52,082 |
176,967 |
(124,885) | |
| Edison Enterprises & parent co. |
(36,449) |
(39,800) |
3,351 |
| Edison International – consolidated |
$15,633 |
$137,167 |
$(121,534) |
|
============================== | |||
| One-time Adjustment |
|
|
|
| EE – discontinued operations |
$(117,176) |
-- |
$(117,176) |
|
============================== | |||
| Reported Basis (after one-time charge) |
$28,176 |
$156,362 |
$(128,186) |
| Edison Mission Energy |
284 |
(18,524) |
18,808 |
| Edison Capital |
23,622 |
39,129 |
(15,507) |
|
52,082 |
176,967 |
(124,885) | |
| Edison Enterprises & parent co. |
(153,625) |
(39,800) |
(113,825) |
| Edison International – consolidated |
$(101,543) |
$137,167 |
$(238,710) |
|
============================== | |||
SCE's earnings in the second quarter decreased by $128 million. The decrease was primarily attributable to $63 million of unrecovered generation-related power costs from SCE-owned generation and qualifying facilities (QF) contracts, an outage at San Onofre Nuclear Generating Station (SONGS) Unit 3 and lower kilowatt-hour sales.
The $19 million increase at Edison Mission Energy reflects higher energy prices for EME's U.S. projects and increased earnings from oil and gas activities, partially offset by lower power pool prices in the United Kingdom and higher interest expense.
Edison Capital's decrease of $16 million was due to lower revenues from leveraged leases and affordable housing and the impact of the termination of the Fiddler's Ferry/Ferrybridge financing. The decrease was partially offset by a net gain on asset sales.
Excluding the one-time adjustment reflecting the anticipated sales of Edison Select and Edison Source, the increase of $3 million at Edison Enterprises and the parent company was primarily the result of improved operating performance at Edison Enterprises, partially offset by higher interest expense at the parent company.
YEAR-TO-DATE EARNINGS SUMMARY
Edison International recorded a loss of $719 million on a reported basis, year-to-date. The loss for the six-month period includes SCE's unrecovered generation-related power costs in the first half of 2001 totaling $724 million, and Edison Enterprises' one-time adjustment of $117 million reflecting the anticipated sales of Edison Select and Edison Source. Excluding the one-time adjustment at Edison Enterprises, Edison International incurred a loss of $602 million for the six-month period ended June 30, 2001, compared with earnings of $247 million for the same period last year.
YEAR-TO-DATE EARNINGS DETAIL
|
Year-To-Date Ended June 30, | |||
| Earnings ($000) |
2001 |
2000 |
Change |
| Operating Basis | |||
| SCE excluding unrecovered power costs |
$153,754 |
$269,673 |
$(115,919) |
| SCE unrecovered power costs |
(723,752) |
-- |
(723,752) |
| SCE including unrecovered power costs |
(569,998) |
269,673 |
(839,671) |
| Edison Mission Energy |
8,751 |
(30,995) |
39,746 |
| Edison Capital |
35,670 |
77,118 |
(41,448) |
|
(525,577) |
315,796 |
(841,373) | |
| Edison Enterprises & parent co. |
(76,090) |
(69,087) |
(7,003) |
| Edison International - consolidated |
$(601,667) |
$246,709 |
$(848,376) |
|
============================== | |||
| One-time Adjustment | |||
| EE - discontinued operations |
$(117,176) |
-- |
$(117,176) |
|
============================== | |||
| Reported Basis (after one-time charge) | |||
| SCE |
$(569,998) |
$269,673 |
$(839,671) |
| Edison Mission Energy |
8,751 |
(30,995) |
39,746 |
| Edison Capital |
35,670 |
77,118 |
(41,448) |
|
(525,577) |
315,796 |
(841,373) | |
| Edison Enterprises & parent co. |
(193,266) |
(69,087) |
(124,179) |
| Edison International - consolidated |
$(718,843) |
$246,709 |
$(965,552) |
|
============================== | |||
Compared to the same period in the prior year, SCE's earnings in the first half of 2001 decreased by $840 million, including a loss of $724 million for unrecovered generation-related costs, earnings from Edison Mission Energy increased by $40 million and earnings from Edison Capital decreased by $41 million. Explanations for variations in earnings are consistent with the descriptions provided in the quarterly analysis above.
Excluding Edison Enterprises' one-time adjustment, the decrease of $7 million for Edison Enterprises and the parent company was primarily the result of higher interest expense at the parent company and a gain on the sale of marketable securities in the first quarter of 2000, partially offset by improved operating performance at Edison Enterprises.
TWELVE MONTHS ENDED EARNINGS SUMMARY
For the twelve months ended June 30, 2001, Edison International recorded a loss of $2.9 billion on a reported basis. The net loss for the twelve-month period included a write-off at SCE of $2.5 billion of generation-related regulatory assets in the fourth quarter of 2000, the operating losses for SCE's unrecovered generation-related costs totaling $724 million in the first half of 2001, and the one-time adjustment at Edison Enterprises regarding the anticipated sales of Edison Select and Edison Source for $117 million. Excluding these items and the one-time adjustments in the prior period for a tax benefit at SCE and the closing of five Edison Enterprises businesses in 1999, Edison International earned $454 million for the twelve months ended June 30, 2001, compared with earnings of $606 million for the same period last year.
TWELVE MONTHS ENDED EARNINGS DETAIL
|
Twelve Months Ended June 30, | |||
| Earnings ($000) |
2001 |
2000 |
Change |
| Operating Basis (before one-time charges) | |||
| SCE excluding power costs |
$355,500 |
$555,560 |
$(200,060) |
| SCE unrecovered costs* |
(3,244,958) |
-- |
(3,244,958) |
| SCE including unrecovered power costs |
(2,889,458) |
555,560 |
(3,445,018) |
| Edison Mission Energy |
164,998 |
49,711 |
115,287 |
| Edison Capital |
93,878 |
132,344 |
(38,466) |
|
(2,630,582) |
737,615 |
(3,368,197) | |
| Edison Enterprises & parent co. |
(160,591) |
(131,402) |
(29,189) |
| Edison International - consolidated |
$(2,791,173) |
$606,213 |
$(3,397,386) |
|
============================== | |||
| One-time Adjustments | |||
| SCE - tax benefit |
-- |
$14,913 |
$(14,913) |
| EE - re-focus the business |
-- |
(23,020) |
23,020 |
| EE - discontinued operations |
(117,176) |
-- |
(117,176) |
|
$(117,176) |
$(8,107) |
$(109,069) | |
|
============================== | |||
| Reported Basis (after one-time charge) |
| ||
| SCE |
$(2,889,458) |
$570,473 |
$(3,459,931) |
| Edison Mission Energy |
164,998 |
49,711 |
115,287 |
| Edison Capital |
93,878 |
132,344 |
(38,466) |
|
(2,630,582) |
752,528 |
(3,383,110) | |
| Edison Enterprises & parent co. |
(277,767) |
(154,422) |
(123,345) |
| Edison International - consolidated |
$(2,908,349) |
$598,106 |
$(3,506,455) |
|
============================== | |||
Excluding the one-time tax benefit in December 1999, SCE incurred a loss of $2.9 billion for the twelve months ended June 30, 2001, compared with $556 million for the same period ended June 30, 2000. The decrease of $3.4 billion primarily reflects a write-off of $2.5 of generation- related regulatory assets in the fourth quarter of 2000, unrecovered generation-related costs of $724 million, higher interest expense and the outage at SONGS 3, partially offset by lower operating and maintenance costs.
EME reported earnings of $165 million for the twelve-month period, up $115 million from the same period last year. The increase was primarily due to higher energy prices from U.S. projects and phantom stock option plan adjustments. The increase was partially offset by lower power pool prices in the United Kingdom, certain tax benefits related to the sale of a portion of EME's interest in Four Star Oil & Gas and higher interest expense.
Edison Capital contributed $94 million for the twelve-month period compared to $132 million from the same period last year. The decrease was mainly the result of lower earnings from leveraged leases and affordable housing, combined with the impact of the termination of the Fiddler's Ferry/Ferrybridge financing and higher net interest expense, partially offset by the net gain on asset sales.
Excluding the one-time adjustments at Edison Enterprises for the anticipated sales of Edison Select and Edison Source in 2001 and the closing of five businesses in December 1999, Edison Enterprises and the parent company recorded a $161 million loss for the twelve months ended June 30, 2001, compared to a $131 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 were partially offset by improved operating performance at Edison Enterprises.
|
Quarter Ended June 30, | |||
| Reported Earnings Per Share |
2001 |
2000 |
Change |
| Southern California Edison |
$0.09 |
$0.47 |
$(0.38) |
| Edison Mission Energy |
-- |
(0.06) |
0.06 |
| Edison Capital |
0.08 |
0.12 |
(0.04) |
| Edison Enterprises & parent company |
(0.48) |
(0.12) |
(0.36) |
| Edison International - consolidated |
$(0.31) |
$0.41 |
$(0.72) |
|
============================== | |||
|
Year-to-Date Ended June 30, | |||
| Reported Earnings Per Share |
2001 |
2000 |
Change |
| Southern California Edison |
$(1.75) |
$0.80 |
$(2.55) |
| Edison Mission Energy |
0.03 |
(0.09) |
0.12 |
| Edison Capital |
0.11 |
0.23 |
(0.12) |
| Edison Enterprises & parent company |
(0.60) |
(0.21) |
(0.39) |
| Edison International - consolidated |
$(2.21) |
$0.73 |
$(2.94) |
|
============================== | |||
|
Twelve Months Ended June 30, | |||
| Reported Earnings Per Share |
2001 |
2000 |
Change |
| Southern California Edison |
$(8.87) |
$1.67 |
$(10.54) |
| Edison Mission Energy |
0.50 |
0.14 |
0.36 |
| Edison Capital |
0.29 |
0.39 |
(0.10) |
| Edison Enterprises & parent company |
(0.85) |
(0.45) |
(0.40) |
| Edison International - consolidated |
$(8.93) |
$1.75 |
$(10.68) |
|
============================== | |||
# # #
Additional Attachments:
