Media relations contact: Charles Coleman, (626) 302-7982
Investor relations contact: Scott Cunningham, (626) 302-2540
ROSEMEAD, Calif., July 31, 2014 - Edison International (NYSE: EIX) today reported second quarter 2014 net income on a GAAP basis of $536 million, or $1.64 per share, compared to losses of $94 million, or $0.29 per share, in the second quarter of 2013. On an adjusted basis, Edison International’s second quarter 2014 core earnings were $352 million, or $1.08 per share, compared to $259 million, or $0.79 per share, in the second quarter of 2013.
Southern California Edison’s (SCE) second quarter 2014 core earnings increased $88 million, or $0.27 per share, primarily due to higher authorized revenues from rate base growth, income tax benefits, and other income. Edison International Parent and Other’s second quarter core losses decreased $5 million primarily due to consolidated state income tax benefits.
Second quarter 2014 core earnings exclude income of $184 million, or $0.56 per share, from discontinued operations. Second quarter 2013 core earnings exclude a charge of $365 million, or $1.12 per share, related to the shut down of SCE's San Onofre Nuclear Generating Station (SONGS), and $12 million, or $0.04 per share, of income from discontinued operations.
“Edison International continues to deliver strong earnings growth from investing in our core wires business infrastructure, managing our costs, and benefiting from favorable tax items," said Ted Craver, chairman and chief executive officer of Edison International. "Based on our year-to-date results, we expect full-year earnings to be well above the high end of our core earnings guidance range. We are not providing new earnings guidance at this time, but may consider adjusting guidance when third quarter results are reported."
For the six months ended June 30, 2014, Edison International reported net income on a GAAP basis of $712 million, or $2.18 per share, compared to $176 million, or $0.54 per share, during the same period in 2013. On an adjusted basis, Edison International’s core earnings were $646 million, or $1.98 per share, compared to $510 million, or $1.57 per share, in the year-to-date period in 2013.
SCE’s core earnings for the six months ended June 30, 2014 increased $136 million, or $0.41 per share, from the six months ended June 30, 2013, primarily due to higher authorized revenues from rate base growth, income tax benefits, lower operation and maintenance expenses and other income. Edison International Parent and Other’s core losses for the six month periods ended June 30, 2014, and 2013, were comparable with tax benefits related to consolidated state income taxes offset by higher corporate and new business expenses.
Year-to-date 2014 core earnings exclude charges of $96 million, or $0.29 per share, related to SCE’s settlement agreement for SONGS and $162 million, or $0.49 per share, of income from discontinued operations. Year-to-date 2013 core earnings exclude the $365 million, or $1.12 per share, SONGS charge, $7 million, or $0.02 per share, of earnings from tax benefits related to a sale of a lease investment in 2012, and $24 million, or $0.07 per share, of income from 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.
2014 Earnings Guidance
Based on the company’s year-to-date results, full-year earnings are expected to be above the high end of the guidance range due to several items not included in guidance. The company may consider adjusting guidance when third quarter results are reported. See the risk disclosure statement in the Appendix and the presentation accompanying the company’s conference call for further information.
Reconciliation of 2014 Core Earnings Guidance to Basic Earnings Guidance
|2014 Earnings Guidance
as of 4/29/14
|EIX Parent & Other||(0.15)|
|EIX Core EPS||$3.60||$3.70||$3.80|
|EIX Basic EPS||$3.24||$3.34||$3.44|
Note: Excludes $0.23 per share in core items recorded year-to-date but not in guidance, and $0.56 per share in non-core discontinued operations earnings recorded in the second quarter 2014 results but not in guidance.
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