Media relations contact: Charles Coleman, (626) 302-7982
Investor relations contact: Scott Cunningham, (626) 302-2540
ROSEMEAD, Calif., Feb. 28, 2011 – Edison International (NYSE: EIX) today reported fourth quarter 2010 basic earnings of $0.51 per share, compared to $0.65 per share in the same quarter last year. Fourth quarter 2010 core earnings were $0.58 per share, compared to core earnings of $0.59 per share in the fourth quarter of 2009. Higher fourth quarter earnings at Southern California Edison (SCE) were more than offset by lower results at Edison Mission Group (EMG) and higher parent company costs.
For 2010, the company reported basic earnings of $3.84 per share compared to $2.59 per share in 2009, while core earnings for 2010 increased 7 percent to $3.48 per share compared to $3.25 per share in 2009. The improvement in core earnings was driven by higher earnings at SCE, offset by a decline in earnings at EMG and a slight increase in parent company costs.
“Edison International had a solid year, led by SCE’s strong earnings growth,” said Theodore F. Craver, Jr., chairman and chief executive officer of Edison International. “Looking ahead to 2011, we expect continued earnings growth at SCE. EMG faces weak power market fundamentals in the year ahead, but we see positive value in the business as power market fundamentals improve.”
Note: GAAP earnings and losses refer to net income or losses attributable to Edison International throughout this release. Core earnings is a non-GAAP financial measure. See Reconciliation of Core Earnings to GAAP Earnings and Reconciliation of Core Earnings Guidance to GAAP Earnings Guidance.
Fourth Quarter Earnings Detail
SCE’s fourth quarter 2010 basic earnings were $0.56 per share compared to $0.53 per share in the fourth quarter of 2009. Core earnings were also $0.56 per share while fourth quarter 2009 earnings were $0.51 per share. The core earnings increase was primarily driven by rate base growth. Fourth quarter 2009 results included a non-core benefit related to tax settlements.
EMG’s fourth quarter 2010 basic earnings were $0.03 per share compared to $0.17 per share in the fourth quarter of 2009. Core earnings were $0.10 per share compared to $0.13 per share in the same quarter last year. Core earnings declined largely from higher income tax expense and lower trading revenues. Fourth quarter 2010 results included a non-core charge related to write-offs of capitalized costs at its Powerton plant in Illinois. Fourth quarter 2009 results included a non-core benefit from tax settlements.
Edison International parent company and other reported a fourth quarter 2010 loss of $0.08 per share compared to a $0.05 per share loss in the fourth quarter of 2009 due to higher income tax expense.
Full-Year Earnings Detail
SCE’s basic earnings in 2010 were $3.19 per share compared to $3.76 per share in 2009. Core earnings in 2010 were $3.01 per share compared to $2.68 per share in 2009. The increase in core earnings was primarily due to rate base growth, lower income tax expense and earnings from construction activities. The lower tax expense in 2010 includes a change in the method of tax accounting for asset removal costs primarily related to SCE’s infrastructure replacement program. Non-core items in 2010 included benefits from tax settlements and a charge related to health care legislation, and in 2009 included benefits from the tax settlements and transferring a power plant to utility rate base.
EMG’s basic earnings in 2010 were $0.69 per share compared to a 2009 loss of $1.21 per share. Core earnings were $0.59 per share compared to $0.68 per share in 2009. EMG’s core earnings were lower primarily from higher plant maintenance costs in 2010 due to scheduled merchant power plant outages, unrealized hedge-related accounting losses in 2010 compared to unrealized gains in 2009, and higher income tax expense. The decline was partially offset by higher energy trading revenues. Non-core items included the impacts of discontinued operations in both periods, a benefit from tax settlements and the charge from the write-off of capitalized costs in 2010, and a charge related to the tax settlements and related termination of leases in 2009.
Edison International parent company and other reported a 2010 basic loss of $0.04 per share compared to basic earnings of $0.04 per share in the prior year. Core losses were $0.12 per share in 2010 and $0.11 per share in 2009. Core losses exclude non-core benefits associated with the global settlement in both years.
2011 Earnings Guidance
The company announced 2011 core earnings guidance of $2.60 to $2.90 per share. See the risk disclosure statement in the appendix and the presentation accompanying the company’s conference call for further information.
Per Share |
2011 Earnings Guidance |
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EIX core earnings1 |
$2.60 - $2.90 |
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Non-Core Items |
-- |
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EIX basic earnings |
$2.60 - $2.90 |
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Midpoint of 2011 core guidance by business element: |
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SCE |
$3.08 |
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EMG |
(0.19) |
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EIX parent company and other |
(0.14) |
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Total |
$2.75 |
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1 See Use of Non-GAAP Financial Measures in the appendix. Basic earnings per share refer to basic earnings per common share attributable to Edison International common shareholders. There is no expected impact of participating securities.
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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APPENDIX AND SUMMARY FINANCIAL SCHEDULES
Edison International Reports Fourth Quarter 2010 Results; Announces 2011 Earnings Guidance