Edison International Reports Fourth Quarter and Full-Year 2014 Results

February 24, 2015

Media relations contact: Charles Coleman, (626) 302-7982
Investor relations contact: Scott Cunningham, (626) 302-2540

ROSEMEAD, Calif., February 24, 2015 - Edison International (NYSE: EIX) today reported fourth quarter 2014 net income on a GAAP basis of $420 million, or $1.29 per share, compared to $301 million, or $0.92 per share, in the fourth quarter of 2013. On an adjusted basis, Edison International’s fourth quarter 2014 core earnings were $355 million, or $1.08 per share, compared to $264 million, or $0.81 per share, in the fourth quarter of 2013.

Southern California Edison’s (SCE) fourth quarter 2014 core earnings increased $98 million, or $0.30 per share, primarily due to higher authorized revenue from rate base growth, higher income tax benefits, and lower severance costs. In the fourth quarter of 2014, the California Public Utilities Commission (CPUC) authorized an increase in SCE's revenue due to a revised determination of rate base for deferred income taxes that increased earnings by $18 million, or $0.05 per share. Edison International Parent and Other’s fourth quarter 2014 core earnings decreased $7 million, or $0.03 per share, primarily due to lower income tax benefits and higher corporate expenses, partially offset by higher income from Edison Capital’s investments in affordable housing projects.

Edison International's fourth quarter 2014 core earnings exclude income of $24 million, or $0.08 per share, related to a revised estimated impact of the San Onofre Nuclear Generating Station (SONGS) Settlement, and income of $41 million, or $0.13 per share, primarily due to discontinued operations. Edison International's fourth quarter 2013 core earnings exclude income of $37 million, or $0.11 per share, from discontinued operations.

"Edison International delivered strong financial results in 2014," said Ted Craver, chairman and chief executive officer of Edison International. "Southern California Edison’s continued electric grid investments and good cost management are key factors in this performance. Our stock performed well as we resolved key uncertainties and took an important first step to return the dividend to our target payout ratio of 45-55% of SCE’s earnings. Looking ahead, we see sustained high levels of SCE investment to help meet California’s public policy objectives and assure grid reliability for our customers."

Full-Year Earnings

For the year ended December 31, 2014, Edison International reported net income on a GAAP basis of $1,612 million, or $4.95 per share, compared to $915 million, or $2.81 per share, during the same period in 2013. On an adjusted basis, Edison International’s core earnings were $1,497 million, or $4.59 per share, compared to $1,237 million, or $3.80 per share, in 2013.

SCE’s core earnings for 2014 increased $260 million, or $0.80 per share, from 2013 primarily due to higher authorized revenue from rate base growth, higher income tax benefits and lower severance costs. In the fourth quarter of 2014, the CPUC authorized an increase in SCE's revenue due to a revised determination of rate base for deferred income taxes that increased earnings by $18 million, or $0.05 per share. In addition, during 2014, SCE recorded earnings of $11 million, or $0.03 per share, from a change in estimate of revenues under its Federal Energy Regulatory Commission formula rate, and $9 million, or $0.03 per share, of benefits related to generator settlements. Edison International Parent and Other's core losses for 2014 included higher corporate and new business expenses, offset by higher income from Edison Capital's investments in affordable housing projects.

Edison International's full-year 2014 core earnings exclude charges of $72 million, or  $0.22 per share, related to the SONGS Settlement Agreement, and income of $187 million, or $0.58 per share, primarily due to discontinued operations. Edison International' s 2013 core earnings excludes a $365 million charge, or $1.12 per share,  related to the permanent retirement of SONGS Units 2 and 3, and income of $43 million, or $0.13 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 earnings.

2015 Earnings Guidance

Edison International will provide 2015 earnings guidance after a final decision has been issued by the California Public Utilities Commission on the Southern California Edison 2015 General Rate Case. See the presentation accompanying the company’s conference call for further information.

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.

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Appendix and Summary Financial Schedules

Edison International Reports Fourth Quarter and Full-Year 2014 Results

Topics: Investor Relations