ROSEMEAD, Calif.--(BUSINESS WIRE)-- Edison International (NYSE: EIX) today reported second quarter 2015 net income on a GAAP basis of $379 million, or $1.16 per share, compared to $536 million, or $1.64 per share, in the second quarter of 2014. On an adjusted basis, Edison International’s second quarter 2015 core earnings were $378 million, or $1.16 per share, compared to $352 million, or $1.08 per share, in the second quarter of 2014.

“SCE remains focused on improving its safety and operational performance and continues to invest at high levels to support system reliability, public safety and California’s renewables mandates,” said Ted Craver, chairman and chief executive officer of Edison International. “Earnings improved in the second quarter primarily from federal tax benefits, but until SCE receives a decision in its 2015 General Rate Case, comparative results are not meaningful.”

Southern California Edison’s (SCE) second quarter 2015 core earnings increased by $22 million, or $0.07 per share, from the second quarter 2014 primarily due to a $100 million, or $0.31 per share, tax benefit from revisions to liabilities for uncertain tax positions. In addition, earnings benefited from higher Federal Energy Regulatory Commission (FERC)-related revenue from rate base growth and earnings on funds used during construction. These were partially offset by lower other income and other tax items. SCE continues to recognize revenue from CPUC activities in 2015 largely based on 2014 authorized base revenue requirements included in customer rates. The revenue requirement ultimately adopted by the CPUC will be retroactive to January 1, 2015.

During the second quarter of 2014, SCE recorded $29 million, or $0.09 per share, of income tax benefits from revisions to liabilities for uncertain tax positions and $14 million ($9 million after-tax), or $0.03 per share, of benefits related to generator settlements.

Edison International Parent and Other’s second quarter 2015 core losses decreased by $4 million, or $0.01 per share, compared to second quarter 2014 core losses primarily due to lower corporate expenses.

Edison International’s second quarter 2015 core earnings exclude income of $1 million related to losses allocated to tax equity investors under the hypothetical liquidation at book value accounting method. Edison International’s second quarter 2014 core earnings exclude income of $184 million, or $0.56 per share, from discontinued operations.

Year-to-Date Earnings

For the six months ended June 30, 2015, Edison International reported net income on a GAAP basis of $678 million, or $2.08 per share, compared to $712 million, or $2.18 per share, during the same period in 2014. On an adjusted basis, Edison International’s core earnings were $672 million, or $2.06 per share, compared to $646 million, or $1.98 per share, in the year-to-date period in 2014.

SCE’s core earnings for the six months ended June 30, 2015 increased $23 million, or $0.08 per share, from the same period in 2014, due to higher income tax benefits, FERC-related revenue from rate base growth and earnings on funds used during construction, partially offset by lower other income. Edison International Parent and Other’s year-to-date 2015 core losses were comparable to core losses in the same period of 2014.

Edison International’s year-to-date 2015 core earnings exclude income of $6 million, or $0.02 per share, related to losses allocated to tax equity investors under the hypothetical liquidation at book value accounting method. 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 $162 million, or $0.49 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 earnings.

2015 Earnings Guidance

Edison International will provide 2015 earnings guidance after a final decision has been issued by the CPUC on the Southern California Edison 2015 General Rate Case. See the presentation accompanying the company’s conference call for further information.

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

Use of Non-GAAP Financial Measures

Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core earnings per share (EPS) internally for financial planning and for analysis of performance. We also use core earnings and core EPS when communicating with analysts and investors regarding our earnings results to facilitate comparisons of the Company’s performance from period to period. Financial measures referred to net income, basic EPS, core earnings, or core EPS also applies to the description of earnings or earnings per share.

Core earnings and core EPS are non-GAAP financial measures and may not be comparable to those of other companies. Core earnings and core EPS are defined as basic earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. Basic earnings and losses refer to net income or losses attributable to Edison International shareholders. Core earnings are reconciled to basic earnings in the attached tables. The impact of participating securities (vested awards that earn dividend equivalents that may participate in undistributed earnings with common stock) for the principal operating subsidiary is not material to the principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which is included in Edison International Parent and Other.

Risk Disclosure Statement

Forward-looking statements about the financial outlook for Edison International and its subsidiaries are included in this news release. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Edison International’s Form 10-K, most recent Form 10-Q, and other reports and presentations filed with the Securities and Exchange Commission which are available at: www.edisoninvestor.com. These forward-looking statements represent our expectations only as of the date of this news release, and Edison International assumes no duty to update them to reflect new information, events or circumstances.

Reminder: Edison International Will Hold a Conference Call Today

When:				Thursday, July 30, 2015, 1:30 p.m. (Pacific Time)
Telephone Numbers:				1-800-369-2198 (US) and 1-773-756-4618 (Int’l) - Passcode: Edison
Telephone Replay:				1-888-567-0459 (US) and 1-402-998-1812 (Int’l) - Passcode: 85749
				Telephone replay available through August 10, 2015
Webcast:				www.edisoninvestor.com

Second Quarter and Year-to-Date Reconciliation of
Core Earnings Per Share to Basic Earnings Per Share
				Three months ended June 30,																		Six months ended June 30,
				2015						2014						Change						2015						2014						Change
Earnings (loss) per share attributable to Edison International
Continuing operations
SCE				$	1.18					$	1.11					$	0.07					$	2.12					$	1.75					$	0.37
Edison International Parent and Other					(0.02	)					(0.03	)					0.01						(0.04	)					(0.06	)					0.02
Discontinued operations					—						0.56						(0.56	)					—						0.49						(0.49	)
Edison International					1.16						1.64						(0.48	)					2.08						2.18						(0.10	)
Less: Non-core items
SCE					—						—						—						—						(0.29	)					0.29
Edison International Parent and Other					—						—						—						0.02						—						0.02
Discontinued operations					—						0.56						(0.56	)					—						0.49						(0.49	)
Total non-core items					—						0.56						(0.56	)					0.02						0.20						(0.18	)
Core earnings (losses)
SCE					1.18						1.11						0.07						2.12						2.04						0.08
Edison International Parent and Other					(0.02	)					(0.03	)					0.01						(0.06	)					(0.06	)					—
Edison International				$	1.16					$	1.08					$	0.08					$	2.06					$	1.98					$	0.08

Note: Diluted earnings were $1.15 and $1.63 per share for the three months ended June 30, 2015 and 2014, respectively, and $2.06 and $2.17 per share for the six months ended June 30, 2015 and 2014, respectively.

Second Quarter and Year-to-Date Reconciliation of
Core Earnings to Basic Earnings (in millions)
		Three months ended June 30,																		Six months ended June 30,
(in millions)		2015						2014						Change						2015						2014						Change
Net income (loss) attributable to Edison International
Continuing operations
SCE		$	384					$	362					$	22					$	689					$	570					$	119
Edison International Parent and Other			(5	)					(10	)					5						(11	)					(20	)					9
Discontinued operations			—						184						(184	)					—						162						(162	)
Edison International			379						536						(157	)					678						712						(34	)
Less: Non-core items
SCE			—						—						—						—						(96	)					96
Edison International Parent and Other			1						—						1						6						—						6
Discontinued operations			—						184						(184	)					—						162						(162	)
Total non-core items			1						184						(183	)					6						66						(60	)
Core earnings (losses)
SCE			384						362						22						689						666						23
Edison International Parent and Other			(6	)					(10	)					4						(17	)					(20	)					3
Edison International		$	378					$	352					$	26					$	672					$	646					$	26

Consolidated Statements of Income				Edison International
				Three months ended June 30,												Six months ended June 30,
(in millions, except per-share amounts, unaudited)				2015						2014						2015						2014
Total operating revenue				$	2,908					$	3,016					$	5,420					$	5,943
Purchased power and fuel					1,078						1,239						1,864						2,382
Operation and maintenance					743						715						1,380						1,442
Depreciation, decommissioning and amortization					481						414						945						824
Property and other taxes					82						73						171						158
Impairment and other charges					—						—						—						231
Total operating expenses					2,384						2,441						4,360						5,037
Operating income					524						575						1,060						906
Interest and other income					43						46						82						69
Interest expense					(138	)					(139	)					(281	)					(281	)
Other expenses					(17	)					(16	)					(24	)					(23	)
Income from continuing operations before income taxes					412						466						837						671
Income tax expense					6						84						113						65
Income from continuing operations					406						382						724						606
Gain from discontinued operations, net of tax					—						184						—						162
Net income					406						566						724						768
Preferred and preference stock dividend requirements of utility					28						30						56						56
Other noncontrolling interests					(1	)					—						(10	)					—
Net income attributable to Edison International common shareholders				$	379					$	536					$	678					$	712
Amounts attributable to Edison International common shareholders:
Income from continuing operations, net of tax				$	379					$	352					$	678					$	550
Gain from discontinued operations, net of tax					—						184						—						162
Net income attributable to Edison International common shareholders				$	379					$	536					$	678					$	712
Basic earnings per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding					326						326						326						326
Continuing operations				$	1.16					$	1.08					$	2.08					$	1.69
Discontinued operations					—						0.56						—						0.49
Total				$	1.16					$	1.64					$	2.08					$	2.18
Diluted earnings per common share attributable to Edison International common shareholders:
Weighted-average shares of common stock outstanding, including effect of dilutive securities					328						329						329						329
Continuing operations				$	1.15					$	1.07					$	2.06					$	1.68
Discontinued operations					—						0.56						—						0.49
Total				$	1.15					$	1.63					$	2.06					$	2.17
Dividends declared per common share				$	0.4175					$	0.3550					$	0.8350					$	0.7100

Consolidated Balance Sheets				Edison International
				June 30,					December 31,
(in millions, unaudited)				2015					2014
ASSETS
Cash and cash equivalents				$	139				$	132
Receivables, less allowances of $68 for uncollectible accounts at both dates					768					790
Accrued unbilled revenue					853					632
Inventory					276					281
Derivative assets					79					102
Regulatory assets					1,066					1,254
Deferred income taxes					288					452
Other current assets					437					376
Total current assets					3,906					4,019
Nuclear decommissioning trusts					4,836					4,799
Other investments					210					207
Total investments					5,046					5,006
Utility property, plant and equipment, less accumulated depreciation and amortization of $8,141 and $8,132 at respective dates					33,594					32,859
Nonutility property, plant and equipment, less accumulated depreciation of $79 and $76 at respective dates					132					122
Total property, plant and equipment					33,726					32,981
Derivative assets					194					219
Regulatory assets					8,009					7,612
Other long-term assets					358					349
Total long-term assets					8,561					8,180
Total assets				$	51,239				$	50,186

Consolidated Balance Sheets				Edison International
				June 30,						December 31,
(in millions, except share amounts, unaudited)				2015						2014
LIABILITIES AND EQUITY
Short-term debt				$	1,415					$	1,291
Current portion of long-term debt					204						504
Accounts payable					1,294						1,580
Accrued taxes					36						81
Customer deposits					234						221
Derivative liabilities					162						196
Regulatory liabilities					454						401
Other current liabilities					1,037						1,205
Total current liabilities					4,836						5,479
Long-term debt					11,265						10,234
Deferred income taxes and credits					7,599						7,313
Derivative liabilities					1,155						1,052
Pensions and benefits					2,176						2,155
Asset retirement obligations					2,825						2,821
Regulatory liabilities					5,813						5,889
Other deferred credits and other long-term liabilities					2,220						2,255
Total deferred credits and other liabilities					21,788						21,485
Total liabilities					37,889						37,198
Commitments and contingencies
Redeemable noncontrolling interest					3						6
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at respective dates)					2,472						2,445
Accumulated other comprehensive loss					(56	)					(58	)
Retained earnings					8,909						8,573
Total Edison International's common shareholders' equity					11,325						10,960
Noncontrolling interests – preferred and preference stock of utility					2,022						2,022
Total equity					13,347						12,982
Total liabilities and equity				$	51,239					$	50,186

Consolidated Statements of Cash Flows				Edison International
				Six months ended June 30,
(in millions, unaudited)				2015						2014
Cash flows from operating activities:
Net income				$	724					$	768
Less: Income from discontinued operations					—						162
Income from continuing operations					724						606
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, decommissioning and amortization					987						864
Allowance for equity during construction					(42	)					(28	)
Impairment and other charges					—						231
Deferred income taxes and investment tax credits					101						110
Other					11						11
EME settlement payments					—						(225	)
Changes in operating assets and liabilities:
Receivables					32						(185	)
Inventory					5						(21	)
Accounts payable					130						116
Prepaid and accrued taxes					(50	)					79
Other current assets and liabilities					(411	)					(471	)
Derivative assets and liabilities, net					33						64
Regulatory assets and liabilities, net					241						(317	)
Nuclear decommissioning trusts					41						83
Other noncurrent assets and liabilities					(34	)					(309	)
Net cash provided by operating activities					1,768						608
Cash flows from financing activities:
Long-term debt issued or remarketed, net of discount and issuance costs of $16 and $4 at respective periods					1,415						396
Long-term debt matured or repurchased					(721	)					(4	)
Preference stock issued, net					—						269
Short-term debt financing, net					125						1,043
Cash contribution from redeemable noncontrolling interest					7						—
Dividends to noncontrolling interests					(56	)					(54	)
Dividends paid					(272	)					(231	)
Other					(25	)					(51	)
Net cash provided by financing activities					473						1,368
Cash flows from investing activities:
Capital expenditures					(2,197	)					(1,856	)
Proceeds from sale of nuclear decommissioning trust investments					7,253						3,750
Purchases of nuclear decommissioning trust investments					(7,301	)					(3,838	)
Other					11						12
Net cash used in investing activities					(2,234	)					(1,932	)
Net increase in cash and cash equivalents					7						44
Cash and cash equivalents at beginning of period					132						146
Cash and cash equivalents at end of period				$	139					$	190

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Edison International

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Source: Edison International

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