Media relations contact: Charles Coleman, (626) 302-7982
Investor relations contact: Scott Cunningham, (626) 302-2540
ROSEMEAD, Calif., October 27, 2015 - Edison International (NYSE: EIX) today reported third quarter 2015 net income on a GAAP basis of $421 million, or $1.29 per share, compared to $480 million, or $1.47 per share, in the third quarter of 2014. On an adjusted basis, Edison International’s third quarter 2015 core earnings were $377 million, or $1.16 per share, compared to $496 million, or $1.52 per share, in the third quarter of 2014.
Southern California Edison's (SCE) third quarter 2015 core earnings decreased by $114 million, or $0.35 per share, from the third quarter 2014 primarily due to an estimated revenue refund of $233 million, or $0.42 per share, based on the proposed decision in SCE's 2015 General Rate Case (GRC) and lower income tax benefits, partially offset by higher Federal Energy Regulatory Commission (FERC)-related revenue from rate base growth. The revenue requirement ultimately adopted by the California Public Utilities Commission (CPUC) will be retroactive to January 1, 2015.
Edison International Parent and Other’s third quarter 2015 core losses increased by $5 million, or $0.01 per share, compared to third quarter 2014 core losses primarily due to lower income from Edison Capital's investments in affordable housing projects.
Edison International's third quarter 2015 core earnings exclude income of $1 million related to losses allocated to tax equity investors under the hypothetical liquidation at book value (HLBV) accounting method and $43 million, or $0.13 per share, from discontinued operations. Edison International's third quarter 2014 core earnings exclude losses of $16 million, or $0.05 per share, from discontinued operations.
“Third quarter earnings comparisons were impacted by the proposed decision on SCE’s 2015 General Rate Case,” said Ted Craver, chairman and chief executive officer of Edison International. “While the case is generally constructive overall, SCE has identified several important items that the CPUC should correct.”
For the nine months ended September 30, 2015, Edison International reported net income on a GAAP basis of $1,099 million, or $3.37 per share, compared to $1,192 million, or $3.66 per share, during the same period in 2014. On an adjusted basis, Edison International’s core earnings were $1,049 million, or $3.22 per share, compared to $1,142 million, or $3.50 per share, in the year-to-date period in 2014.
SCE’s core earnings for the nine months ended September 30, 2015 decreased $89 million, or $0.27 per share, from the same period in 2014, primarily due to lower revenue related to the 2015 GRC proposed decision and lower other income, partially offset by higher FERC-related revenue from rate base growth and earnings on funds used during construction. In addition, income tax benefits were lower in 2015.
Edison International Parent and Other’s year-to-date 2015 core losses increased $4 million, or $0.01 per share, compared to the same period in 2014 primarily due to income taxes and expenses.
Edison International's year-to-date 2015 core earnings exclude income of $7 million, or $0.02 per share, related to losses allocated to tax equity investors under the HLBV accounting method and $43 million, or $0.13 per share, from discontinued operations. Edison International's year-to-date 2014 core earnings exclude a charge of $96 million, or $0.29 per share, related to the SCE San Onofre Settlement Agreement and $146 million, or $0.45 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 GAAP earnings.
2015 Earnings Guidance
The company announced core earnings guidance of $3.77 to $3.87 per share and basic earnings guidance of $3.92 to $4.02 per share for 2015. See the presentation accompanying the company’s conference call for further information including key guidance assumptions.
Reconciliation of 2015 Core Earnings Guidance to Basic Earnings Guidance
|2015 Earnings Guidance
as of October 27, 2015
|EIX Parent & Other||(0.15)|
|EIX Core EPS||$3.77||$3.82||$3.87|
|EIX Basic EPS||$3.92||$3.97||$4.02|
1 Represents non-core items recorded for the nine months ended September 30, 2015.
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.
Appendix and Summary Financial Schedules
Edison International Reports Third Quarter 2015 Results; Provides 2015 Earnings Guidance