November 7, 2008
- Third quarter 2008 GAAP earnings were $1.33 per share compared to $1.40 per share in the same quarter last year.
- Core earnings per share were $1.46 in the third quarter of 2008 compared to $1.41 a year ago. The core earnings increase was primarily due to higher operating income at Southern California Edison (SCE). Core earnings exclude non-core items and discontinued operations.
- Edison International’s 2008 core EPS guidance range of $3.61 to $4.01 per share is reaffirmed, with results now expected to be near the middle of the range versus the high-end of the range.
| ******* | Note: GAAP earnings refer to net income and GAAP earnings per share refer to basic earnings per share 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. |
ROSEMEAD, Calif., Nov. 7, 2008 – Edison International (NYSE: EIX) today reported third quarter 2008 results.
“The financial markets have experienced new and unprecedented levels of stress,” said Theodore F. Craver, Jr., chairman and chief executive officer of Edison International. “We’re focused on running our businesses in a prudent manner to ensure we meet our customer commitments as well as maintaining our financial strength.”
Third Quarter Earnings Detail
SCE’s third-quarter 2008 reported earnings were $0.72 per share, compared to $0.80 per share in the same quarter of 2007. This decrease was primarily due to a $0.15 per share charge associated with a decision adopted by the California Public Utilities Commission (CPUC) which required SCE to refund or forego incentives and imposed a penalty related to previously earned customer satisfaction and employee safety incentives. Excluding this non-core item, SCE’s core earnings in the third quarter increased $0.07 per share compared to the same quarter last year reflecting higher operating income and lower financing costs.
Edison Mission Group’s (EMG) reported earnings were $0.66 per share for the third quarter of 2008 compared to $0.63 per share for the third quarter of 2007. EMG earnings from continuing operations and core earnings for the third quarter of 2008 remained flat compared to 2007 at $0.64 per share. Higher gross margins at Homer City and Midwest Generation were offset by a $0.05 per share charge related to hedge contracts with Lehman Brothers, lower income from the Big 4 projects and Edison Capital, lower interest income and other items.
Year-to-Date Earnings Summary
Edison International reported earnings were $3.03 per share for the nine-month period ending September 30, 2008, compared to $2.69 per share for the same period last year. Excluding non-core items, Edison International’s core earnings for the nine-month period in 2008 were $3.18 per share compared to $3.04 per share in the same period in 2007.
Year-to-Date Earnings Detail
SCE’s reported earnings through September 30, 2008 were $1.66 per share, a decrease of $0.14 per share compared to the same period last year. SCE’s 2008 results include a $0.15 per share charge associated with the CPUC’s performance-based ratemaking decision, and its 2007 results include income tax benefits of $0.10 per share related to an IRS settlement for the tax treatment of certain environmental remediation costs. Excluding these non-core items, SCE’s 2008 year-to-date core earnings were $1.81 per share, compared to $1.70 per share for the same period last year. This increase reflects higher operating income, lower financing costs and lower income taxes.
EMG’s reported earnings for the first nine months of 2008 were $1.47 per share compared to $0.96 per share for the same period last year. EMG’s 2007 results include a $0.45 per share charge for early debt extinguishment costs. Excluding non-core items, EMG’s year-to-date 2008 core earnings were $1.47 per share compared to $1.41 per share during the first nine months of 2007, an increase of $0.06 per share. This increase primarily reflects higher gross margin at Midwest Generation from increased generation and higher average realized prices, and higher energy trading income at EMMT. These increases were partially offset by lower income from the Big 4 projects and Homer City, lower interest income, and higher project development costs associated with EME’s growth activities.
2008 Earnings Guidance
The company’s 2008 core EPS guidance range of $3.61 - $4.01 is reaffirmed, although management now expects results to be near the middle of the range instead of the high end of the range. See the risk disclosure statement on page 4 in the appendix and the presentation accompanying the company’s conference call for further information. GAAP guidance has been updated to reflect year-to-date non-core items.
Reconciliation of Core Earnings Guidance to GAAP Earnings Guidance
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Core Earnings1(Loss) Per Share (Unaudited) |
|
2008 Guidance Effective as of 8/8/08 |
2008 Core Guidance Reaffirmed and GAAP Guidance Updated as of 11/7/08 | ||
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SCE |
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$2.18 – 2.28 |
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$2.18 – 2.28 | |
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EMG |
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1.57 – 1.87 |
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1.57 – 1.87 | |
|
EIX parent company and other |
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(0.14) |
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(0.14) | |
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| |||||
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EIX core earnings |
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$3.61 – 4.01 |
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$3.61 – 4.01 | |
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|
|
|
|
| |
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Non-Core Items |
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|
|
| |
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SCE – PBR decision |
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-- |
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(0.15) | |
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EMG |
|
-- |
|
-- | |
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Total Non-Core Items |
|
|
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(0.15) | |
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|
|
|
|
| |
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Total GAAP earnings |
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$3.61 – 4.01 |
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$3.46 – 3.86 | |
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1 Core earnings guidance excludes discontinued operations and non-core items. The expected impact of participating securities is ($0.05) per share and is included in EIX parent company and other.
Note: Earnings guidance also excludes the potential impact of issues being addressed in ongoing IRS settlement discussions, and the possible impairment of up to $48 million for NOx allowances purchased by EMG for the CAIR compliance program.
Click here for full appendix tables
Media relations contact: Charles Coleman, (626) 302-7982
Investor relations contact: Scott Cunningham, (626) 302-2540
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, the largest electric utility in California, and Edison Mission Group, a competitive power generation business and parent company to Edison Mission Energy and Edison Capital.
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