Media relations contact: Charles Coleman, (626) 302-7982
Investor relations contact: Scott Cunningham, (626) 302-2540
ROSEMEAD, Calif., August 4, 2011 – Edison International (NYSE: EIX) today reported second quarter 2011 basic earnings of $0.54 per share, compared to $1.05 per share in the same quarter last year. The second quarter of 2010 included a gain of $0.43 per share related to a tax settlement. The impacts of the settlement, including state taxes and related lease terminations, were non-core items in the company’s quarterly and year-to-date results.
Excluding non-core items and discontinued operations, core earnings in the second quarter of 2011 were $0.54 per share compared to $0.62 per share in the second quarter of 2010. Core earnings declined primarily due to lower income at Southern California Edison (SCE) as rate base growth was more than offset by tax benefits recorded in the second quarter of 2010 from a change in tax accounting.
"Our second quarter and year-to-date earnings performance is fully consistent with our 2011 earnings guidance," said Ted Craver, chairman and chief executive officer of Edison International, "and we now see full-year 2011 earnings at the high end of our guidance range."
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 Per Share Guidance to Basic Earnings Per Share Guidance.
Second Quarter Earnings Detail
SCE's second quarter 2011 basic earnings were $0.65 per share compared to $0.92 per share in the second quarter last year. Second quarter 2011 core earnings were $0.65 per share compared to $0.75 per share in the prior-year period. Core earnings decreased as rate base growth was more than offset by a $0.12 per share benefit in the second quarter of 2010 from a change in tax accounting for asset removal costs primarily related to SCE’s infrastructure replacement program.
EMG's second quarter 2011 basic losses were $(0.09) per share compared to basic earnings of $0.08 per share in the second quarter of 2010. Core losses were $(0.09) per share compared to core losses of $(0.10) per share in the second quarter of 2010. Comparisons reflect higher trading revenue and a project distribution, which were largely offset by lower realized energy prices and higher plant maintenance and outage costs.
Edison International parent company and other second quarter 2011 basic losses were $(0.02) per share compared to basic earnings of $0.05 per share in the prior-year period. Core losses were $(0.02) per share in the second quarter of 2011 compared to core losses of $(0.03) per share in the second quarter of 2010. Non-core items in the second quarter of 2010 included tax settlement impacts at Edison International as well as SCE and EMG.
Year-to-Date Earnings Summary
Edison International reported basic earnings of $1.15 per share for the six-month period ending June 30, 2011, compared to $1.77 per share for the same period last year. Core earnings for the first six months of 2011 were $1.16 per share compared to $1.44 per share for the first half of 2010.
Year-to-Date Earnings Detail
SCE's basic earnings were $1.33 per share compared to $1.43 per share for the same period last year. Core earnings were $1.33 per share compared to $1.38 per share in the same period of 2010. Core earnings decreased as rate base growth was more than offset by higher income tax expense reflecting the 2010 change in tax accounting.
EMG's basic losses were $(0.16) per share compared to basic earnings of $0.32 per share in the prior-year period. Core losses were $(0.15) per share compared to core earnings of $0.12 per share in the first half of 2010. The decrease in core earnings reflects Homer City outages, lower realized energy prices, and higher plant maintenance costs.
Edison International parent company and other basic losses in the first half of 2011 were $(0.02) per share compared to basic earnings of $0.02 per share in the first half of 2010. Core losses were $(0.02) per share in the 2011 period compared to core losses of $(0.06) in the 2010 period. Non-core items in the 2010 period included tax settlement impacts at Edison International as well as SCE and EMG.
2011 Earnings Guidance
Edison International reaffirmed its 2011 core earnings guidance of $2.60 to $2.90 per share and its basic earnings per share guidance to reflect year-to-date non-core items. See the risk disclosure statement on page 4 and the financial teleconference presentation accompanying the company’s earnings conference call for further information.
Reconciliation of Core Earnings Guidance to
Basic Earnings Guidance1
|
Core Earnings Per Share1 |
May 2, 2011 |
|
August 4, 2011 | |
|
| ||||
|
EIX core earnings |
$2.60 - $2.90 |
|
$2.60 - $2.90 | |
|
Non-Core Items2 |
(0.01) |
|
(0.01) | |
|
| ||||
|
EIX basic earnings per share |
$2.59 - $2.89 |
|
$2.59 - $2.89 | |
|
| ||||
|
Midpoint of 2011 core guidance by business segment: |
|
|
| |
|
SCE |
$3.08 |
|
$3.08 | |
|
EMG |
(0.19) |
|
(0.19) | |
|
EIX parent company and other |
(0.14) |
|
(0.14) | |
|
| ||||
|
Total |
$2.75 |
|
$2.75 | |
|
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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.
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Appendix and Summary Financial Schedules
Edison International Reports Second Quarter Financial 2011 Results
