Media relations contact: Charles Coleman, (626) 302-7982
Investor relations contact: Scott Cunningham, (626) 302-2540
ROSEMEAD, Calif., May 7, 2010 – Edison International (NYSE: EIX) today reported first quarter 2010 results.
First quarter 2010 basic earnings per share were $0.72 compared to $0.76 per share in the same quarter last year. Core earnings in the first quarter of 2010 were $0.82 per share compared to $0.79 per share in the same quarter last year, mainly due to higher operating results at Edison Mission Group (EMG), partially offset by expense timing differences at Southern California Edison (SCE). Core earnings exclude discontinued operations and other non-core items as discussed below.
"During the first quarter, we achieved solid earnings in a difficult power market,” said Theodore F. Craver, Jr., chairman and chief executive officer of Edison International.
Note: Basic earnings or losses per share refer to basic earnings or losses per common share attributable to Edison International throughout this release. Core earnings is a non-GAAP financial measure. See Reconciliation of Core Earnings to Basic Earnings and Reconciliation of Core Earnings Per Share Guidance to Revised Basic Earnings Per Share Guidance.
First Quarter Earnings Detail
SCE’s first quarter 2010 basic earnings were $0.50 per share compared to $0.64 per share in the first quarter of 2009. This decrease included a non-core charge of $0.12 per share to reverse previously recognized tax benefits eliminated by the federal health care legislation enacted in March 2010. Core earnings were $0.62 per share for the first quarter of 2010 compared to $0.64 per share in the same quarter last year. The two-cent decrease is primarily due to higher operating expense, including the impact of curtailed spending in the first quarter of last year until the 2009 CPUC General Rate Case decision was received in March 2009. This decrease was almost entirely offset by rate base growth and higher capitalized financing costs.
EMG’s first quarter 2010 basic earnings were $0.24 per share compared to $0.14 per share in the first quarter of 2009. Core earnings were $0.22 per share compared to $0.17 per share in the same quarter last year. EMG’s 2010 core earnings increased from 2009 primarily due to higher distributions from EMG’s Doga and March Point natural gas facilities and higher trading income. Mainly offsetting this increase were lower results from EMG’s merchant coal plants driven primarily by lower energy prices and higher 2009 unrealized gains, partially offset by lower emission costs and higher capacity prices. Renewable project income was lower mainly due to less wind. First quarter 2010 non-core items include $0.02 per share of earnings from discontinued operations. First quarter 2009 per share non-core items include a $0.04 charge related to Edison Capital’s lease terminations, partially offset by $0.01 in earnings from discontinued operations.
2010 Earnings Guidance
Previously announced annual core earnings guidance of $3.15 - $3.45 per share is reaffirmed. The company has revised its 2010 GAAP earnings guidance by ($0.10) per share to reflect a $0.12 per share charge at SCE related to a change in the tax deductibility of a portion of retiree health care expenses, partially offset by earnings from discontinued operations of $0.02 per share at EMG. See the risk disclosure statement on page 3 and the financial teleconference presentation accompanying the company’s earnings conference call for further information.
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Reconciliation of Core Earnings Per Share Guidance to Revised | ||||
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Core Earnings Per Share1 |
March 1, 2010 |
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Revised as of May 7, 2010 |
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EIX core earnings |
$3.15 – $3.45 |
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$3.15 – $3.45 |
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Non-Core Items : |
-- |
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$(0.12) |
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EIX basic earnings |
$3.15 – $3.45 |
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$3.05 – $3.35 |
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Midpoint of 2010 core guidance by business element: |
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SCE |
$2.80 |
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$2.80 |
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EMG |
0.62 |
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0.62 |
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EIX parent company and other |
(0.12) |
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(0.12) |
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Total |
$3.30 |
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$3.30 |
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1 See Use of Non-GAAP Financial Measures. Basic earnings per share refer to basic earnings per common share attributable to Edison International common shareholders. The expected impact of participating securities is $(0.01) per share and is included in EIX parent company and other.
About Edison International
Edison International, 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, California, Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities, and Edison Mission Group, a competitive power generation business and parent company to Edison Mission Energy and Edison Capital.
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Edison International Reports First Quarter 2010 Financial Results
