Edison International Reports Third Quarter 2011 Results; Increases 2011 Earnings Guidance

November 02, 2011

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

  • Company reported third quarter 2011 basic earnings of $1.31 per share, compared to $1.56 in the same quarter last year. 
  • Core earnings reported for the third quarter 2011 were $1.31 per share, compared to $1.46 in the same quarter last year.
  • 2011 core earnings guidance increased to a range of $2.90 to $3.00 per share.

ROSEMEAD, Calif., Nov. 2, 2011 – Edison International (NYSE: EIX) today reported third quarter 2011 basic earnings of $1.31 per share compared to $1.56 per share in the same quarter last year.  Results for the 2010 period included a non-core earnings benefit relating to the California impact of a federal tax settlement.  Excluding the non-core item and discontinued operations, third quarter 2011 core earnings were $1.31 per share compared to $1.46 per share in the third quarter of 2010.  Higher Southern California Edison (SCE) core earnings were more than offset by lower results at Edison Mission Group (EMG).

"We are pleased that our third quarter financial results are consistent with delivering 2011 earnings at the high end of our guidance range," said Ted Craver, chairman and chief executive officer of Edison International.  "Based on our improved outlook across the company, we have increased our 2011 core earnings guidance to a range of $2.90 to $3.00 per share."

Third Quarter Earnings Detail

SCE's third quarter 2011 basic earnings were $1.25 per share compared to $1.21 per share in the third quarter of 2010.  Core earnings were $1.25 per share compared to $1.08 per share in the same quarter last year.  Core earnings increased primarily due to rate base growth and lower income taxes.

Note:  GAAP earnings and losses refer to net income or losses attributable to Edison International throughout this release.  Core earnings are 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.

EMG's third quarter 2011 basic earnings were $0.10 per share compared to $0.34 per share in the third quarter of 2010.  Core earnings were $0.10 per share compared to $0.37 per share in the same quarter last year.  2011 results were due to lower capacity revenues, realized energy prices, merchant coal plant generation, and trading income, as well as lower capacity factors from renewable projects.  Prior period results also included a gain from the sale of bankruptcy claims.

Edison International parent company and other reported third quarter 2011 basic and core losses of $(0.04) per share.  Third quarter 2010 basic and core earnings were $0.01 per share reflecting income tax benefits recorded during this period. 

Year-to-Date Earnings Summary

Edison International reported basic earnings of $2.46 per share for the nine-month period ending September 30, 2011, compared to $3.33 per share for the same period last year.  Core earnings for the first nine months of 2011 were $2.47 per share compared to $2.90 per share for the same period in 2010.  Non-core items included a $(0.01) per share loss in the 2011 period compared to a $0.43 per share benefit in the 2010 period, primarily related to tax settlements and the impact of health care legislation.

Year-to-Date Earnings Detail

SCE's year-to-date basic earnings through September 30, 2011, were $2.57 per share compared to $2.63 per share in the same period last year.  Core earnings for the first nine months of 2011 were $2.57 per share compared to $2.45 per share for the same period in 2010.  The year-to-date increase was due to rate base growth partially offset by higher income tax expense, including 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.  Non-core items in the 2010 period included a $0.30 per share benefit from tax settlements and a $0.12 per share charge related to the tax impact of health care legislation.

EMG's year-to-date basic losses were $(0.05) per share compared to $0.66 per share earnings in the same period last year.  Year-to-date core losses were $(0.04) per share compared to earnings of $0.49 per share in the 2010 period.  The decrease in year-to-date core earnings was due to lower realized energy prices, merchant coal plant generation, and trading income, as well as higher interest expense related to renewable projects.  Non-core items included a $0.16 per share benefit from tax settlements and a $0.01 per share benefit from discontinued operations in the 2010 period.

Edison International parent company and other reported basic losses through September 30, 2011, of $(0.06) per share compared to basic earnings of $0.04 per share in the same period last year.  Core losses were $(0.06) per share in the 2011 period and $(0.04) per share in the 2010 period, with the decline due primarily to consolidated income tax benefits recorded in the 2010 period.

2011 Earnings Guidance

Edison International increased its 2011 core earnings guidance to $2.90 to $3.00 per share, and increased its basic earnings per share guidance to $2.89 to $2.99 per share. The increased guidance is based on an improved outlook across the company.  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

August 4, 2011
2011 Earnings Guidance

 

November 2, 2011
2011 Earnings Guidance

 


EIX core earnings1

$2.60 - $2.90

 

$2.90 - $3.00

 

  Non-Core Items2

(0.01)

 

(0.01)

 


EIX basic earnings per share

$2.59 - $2.89

 

$2.89 - $2.99

 


Midpoint of 2011 core guidance by business element:

 

 

 

 

   SCE

$3.08

 

$3.15

 

   EMG

  (0.19)

 

  (0.10)

 

   EIX parent company and other

  (0.14)

 

  (0.10)

 


Total

$2.75

 

$2.95

 


1 See Use of Non-GAAP Financial Measures on page 4. Basic earnings per share refer to basic earnings per common share attributable to Edison International common shareholders.
2 Represents results of discontinued operations for the first six months and nine months of 2011, respectively.

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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Edison International Reports Third Quarter 2011 Results; Increases 2011 Earnings Guidance