Media relations contact: Charles Coleman, (626) 302-7982
Investor relations contact: Scott Cunningham, (626) 302-2540
ROSEMEAD, Calif., October 28, 2014 - Edison International (NYSE: EIX) today reported third quarter 2014 net income on a GAAP basis of $480 million, or $1.47 per share, compared to $438 million, or $1.34 per share, in the third quarter of 2013. On an adjusted basis, Edison International’s third quarter 2014 core earnings were $496 million, or $1.52 per share, compared to $463 million, or $1.42 per share, in the third quarter of 2013.
Southern California Edison’s (SCE) third quarter 2014 core earnings increased $26 million, or $0.08 per share, primarily due to higher authorized revenues from rate base growth partially offset by lower income tax benefits. Edison International Parent and Other’s third quarter core losses decreased $7 million, or $0.02 per share, primarily due to higher income from Edison Capital's investments in affordable housing projects and higher income tax benefits, partially offset by higher corporate and new business expenses.
Edison International's third quarter 2014 core earnings exclude losses of $16 million, or $0.05 per share, from discontinued operations. Edison International's third quarter 2013 core earnings exclude losses of $25 million, or $0.08 per share, from discontinued operations.
“Edison International has delivered another quarter of strong financial results, and we have increased our 2014 core earnings guidance to $4.25-$4.35 per share," said Ted Craver, chairman and chief executive officer of Edison International. "The increased guidance complements our continued efforts to reduce uncertainties and return our dividend to the targeted payout level, in steps over time."
Year-to-Date Earnings
For the nine months period ended September 30, 2014, Edison International reported net income on a GAAP basis of $1,192 million, or $3.66 per share, compared to $614 million, or $1.88 per share, during the same period in 2013. On an adjusted basis, Edison International’s core earnings were $1,142 million, or $3.50 per share, compared to $973 million, or $2.98 per share, in the year-to-date period in 2013.
SCE’s core earnings for the nine months ended September 30, 2014, increased $161 million, or $0.49 per share, from the nine months ended September 30, 2013, primarily due to higher authorized revenues from rate base growth, higher income tax benefits, lower severance costs, and other income. Edison International Parent and Other’s core losses for the nine month period ended September 30, 2014, decreased $8 million, or $0.03 per share, from the nine months ended September 30, 2013, primarily due to higher income tax benefits and higher income from Edison Capital's investments in affordable housing projects, partially offset by new business expenses.
Edison International's year-to-date 2014 core earnings exclude charges of $96 million, or $0.29 per share, related to SCE’s settlement agreement for San Onofre Nuclear Generating Station (SONGS) and $146 million, or $0.45 per share, of income from discontinued operations. Year-to-date 2013 core earnings exclude the $365 million, or $1.12 per share, SONGS charge, and $7 million, or $0.02 per share, of earnings from tax benefits related to the sale of a lease investment in 2012.
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
The company increased its 2014 core earnings guidance to $4.25 to $4.35 per share and its basic earnings guidance to $4.41 to $4.51 per share. 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
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|
2014 Earnings Guidance |
|
2014 Earnings Guidance |
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|
|
Low |
Mid |
High |
Low |
Mid |
High |
|
|
SCE |
|
$3.85 |
|
|
$4.43 |
|
|
|
EIX Parent & Other |
|
(0.15) |
|
|
(0.13) |
|
|
|
EIX Core EPS |
$3.60 |
$3.70 |
$3.80 |
$4.25 |
$4.30 |
$4.35 |
|
|
Non-core Items* |
(0.36) |
(0.36) |
(0.36) |
0.16 |
0.16 |
0.16 |
|
|
EIX Basic EPS |
$3.24 |
$3.34 |
$3.44 |
$4.41 |
$4.46 |
$4.51 |
|
*Represents non-core items recorded for the three months ended March 31, 2014, and nine months ended September 30, 2014, respectively.
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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