Edison International Reports Third Quarter 2012 Re Edison International Reports Third Quarter 2012 Results
ROSEMEAD, Calif., November 1, 2012 – Edison International (NYSE: EIX) today reported third quarter 2012 basic earnings of $0.58 per share, compared to basic earnings of $1.31 per share in the same quarter last year. Third quarter 2012 core earnings were $0.72 per share, compared to core earnings of $1.26 per share in the third quarter of 2011.
The decrease in earnings was primarily related to losses at Edison Mission Group (EMG) and to a delay in the California Public Utilities Commission (CPUC) final decision on Southern California Edison's (SCE) 2012 General Rate Case. SCE incurred higher costs in the quarter to support its ongoing infrastructure investment programs, while the increased revenues to support these investment programs are pending the rate case decision from California regulators.
“SCE's third quarter results reflect the delay in receiving a final rate case decision from California regulators, as well as severance and continued inspection and repair costs related to the San Onofre Nuclear Generating Station,” said Ted Craver, chairman and chief executive officer of Edison International. "A final rate case decision is an important part of moving forward with SCE’s capital program to invest in California’s electric infrastructure and provide safe, reliable, and affordable power."
Third Quarter Earnings Detail
SCE's third quarter 2012 basic and core earnings were $1.11 per share compared to $1.25 per share in the third quarter of 2011. The core earnings decrease was primarily due to a delay in the 2012 General Rate Case decision as higher depreciation and interest expenses are not being recovered in currently authorized revenue, and to higher costs at San Onofre Nuclear Generating Station. These include $(0.09) per share of incremental steam generator inspection and repair costs and $(0.06) per share in severance costs, which are both included in core earnings. These costs were partially offset by other operating and maintenance cost reductions. The General Rate Case revenue requirement ultimately adopted by the CPUC will be retroactive to January 1, 2012.
EMG's third quarter 2012 basic losses were $(0.42) per share compared to earnings of $0.10 per share in the third quarter of 2011. Core losses were $(0.28) per share compared to earnings of $0.05 per share in the same quarter last year. Third quarter losses increased primarily due to lower average realized energy and capacity prices, reduced generation, and higher fuel prices partially offset by lower planned maintenance costs and depreciation at Midwest Generation, decreased earnings from natural gas-fired projects, and lower income tax benefits. Non-core items for both quarters included the results for Homer City, which were classified as discontinued operations beginning in the third quarter of 2012. Homer City losses from discontinued operations during the third quarter of 2012 were $(0.24) per share, including an impairment charge of $(0.21) per share, compared to earnings of $0.05 per share in the prior-year period. Non-core items also included a gain of $0.09 per share on the sale of an Edison Capital lease interest in a power plant.
Edison International parent company and other reported a third quarter 2012 basic and core losses of $(0.11) per share compared to $(0.04) per share in the same period last year. Losses increased primarily due to higher consolidated state income taxes of $(0.09) per share.
Year-to-Date Earnings Summary
Edison International reported basic earnings of $1.09 per share for the nine-month period ending September 30, 2012, compared to $2.46 per share for the same period last year. Core earnings for the first nine months of 2012 were $1.40 per share compared to $2.47 per share in the same period last year.
Year-to-Date Earnings Detail
SCE's year-to-date 2012 basic and core earnings were $2.26 per share compared to $2.57 per share for the same period last year. The core earnings decrease was primarily due to the delay in the 2012 General Rate Case decision and the higher costs at the San Onofre Nuclear Generating Station. The higher costs include $(0.17) per share of incremental steam generator inspection and repair costs and the $(0.06) per share in severance costs. These costs were partially offset by other operation and maintenance cost reductions. The General Rate Case revenue requirement ultimately adopted by the CPUC will be retroactive to January 1, 2012.
EMG's year-to-date 2012 basic losses were $(1.02) per share compared to basic losses of $(0.05) per share in the prior-year period. Core losses were $(0.71) per share compared to core losses of $(0.04) per share in the same period last year. Year-to-date core losses increased primarily due to lower average realized energy and capacity prices, reduced generation, and higher fuel prices partially offset by lower planned maintenance costs and depreciation at Midwest Generation, decreased earnings from natural gas-fired projects, and higher income taxes. Non-core items for both periods included the results for Homer City, which were classified as discontinued operations beginning in the third quarter of 2012. Year-to-date losses from discontinued operations were $(0.40) per share, including the third quarter impairment charge of $(0.21) per share. Non-core items for this period also included the $0.09 per share gain on the sale of an Edison Capital lease interest in a power plant.
Edison International parent company and other basic and core losses in the first nine months of 2012 were $(0.15) per share compared to basic and core losses of $(0.06) per share in the first nine months of 2011. Losses increased primarily due higher consolidated state income taxes of $(0.09) per share.
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