10-QPeriod: Q3 FY2008

EDISON INTERNATIONAL Quarterly Report for Q3 Ended Sep 30, 2008

Filed November 7, 2008For Securities:EIX

Summary

Edison International's third quarter 2008 report shows a solid performance, with earnings per share of $1.33, up slightly from $1.33 in the prior year's quarter. Total operating revenue for the quarter increased to $4.11 billion, up from $3.94 billion in the same period last year, driven by growth in both electric utility and nonutility power generation segments. The company also highlighted continued investment in transmission and distribution infrastructure by its subsidiary Southern California Edison (SCE), alongside ongoing development in renewable energy projects by Edison Mission Group (EMG). A significant factor impacting the quarter was the ongoing global financial market instability, which led Edison International and its subsidiaries to draw down on credit facilities to ensure liquidity. The company also reported substantial progress in its negotiations for a Global Settlement with the IRS regarding complex tax issues, including cross-border leveraged leases. While the financial markets presented challenges, Edison International maintained its focus on operational efficiency and strategic growth initiatives.

Financial Highlights

25 data points
Beta

Revenue

$4.29B

Net Income

$439.00M

10.2% Net Margin

EPS (Diluted)

$1.33

Cash & Equivalents

$3.46B

Free Cash Flow

$403.00M

Financial Statements
Beta
Revenue$4.29B
Operating Expenses$3.33B
Operating Income$965.00M
Interest Expense$176.00M
Net Income$439.00M
EPS (Basic)$1.33
EPS (Diluted)$1.33
Shares Outstanding (Basic)326.00M
Shares Outstanding (Diluted)328.00M

Key Highlights

  • 1Total operating revenue for the third quarter of 2008 increased to $4.11 billion from $3.94 billion in the prior year's quarter.
  • 2Net income for the third quarter of 2008 was $439 million, or $1.33 per diluted share, compared to $461 million, or $1.39 per diluted share, in the same quarter of 2007.
  • 3Southern California Edison (SCE) recorded a charge of $49 million after-tax related to a CPUC decision on performance incentive rewards.
  • 4Edison Mission Group (EMG) experienced higher gross margins at its Homer City and Illinois plants, partially offset by a charge related to Lehman Brothers Commodity Services contracts.
  • 5The company drew down $2.1 billion from its credit facilities in September 2008 as a precautionary measure due to financial market volatility.
  • 6Edison International reported substantial progress in negotiations for a Global Settlement with the IRS concerning tax disputes, including cross-border leveraged leases.
  • 7SCE continued to invest in transmission and distribution infrastructure, with capital expenditures of $1.55 billion for the first nine months of 2008.

Frequently Asked Questions

Edison International reported net income of $439 million, or $1.33 per diluted share, for the third quarter of 2008. This compares to net income of $461 million, or $1.39 per diluted share, for the same period in 2007. Total operating revenue increased to $4.11 billion from $3.94 billion.

The global financial market instability led Edison International and its subsidiaries to borrow $2.1 billion under their credit facilities in September 2008 as a precautionary measure to ensure liquidity. The proceeds were invested in U.S. treasury securities and money market funds. While the company has significant liquidity, long-term disruption in capital markets could adversely affect business plans.

Yes, SCE recorded a $49 million after-tax charge related to a CPUC decision concerning performance incentives. Additionally, Edison International is actively involved in settlement negotiations with the IRS regarding significant tax disputes, including cross-border leveraged leases, with preliminary understandings reached. The company also faces potential environmental proceedings and regulatory matters related to emissions standards and other compliance issues.

Southern California Edison (SCE) saw a decrease in earnings primarily due to a regulatory charge. Edison Mission Group (EMG) reported higher gross margins at its plants, but this was partially offset by losses related to Lehman Brothers contracts and lower income from certain projects. The parent company and other segments experienced a net loss.