10-QPeriod: Q1 FY2009

EDISON INTERNATIONAL Quarterly Report for Q1 Ended Mar 31, 2009

Filed May 8, 2009For Securities:EIX

Summary

Edison International reported a decrease in net income to $250 million ($0.76 per diluted share) for the first quarter of 2009, down from $299 million ($0.91 per diluted share) in the same period of 2008. This decline was primarily driven by weaker performance in the competitive power generation segment (EMG), which was impacted by lower commodity prices and reduced generation levels. Southern California Edison (SCE), the regulated utility subsidiary, showed improved earnings, benefiting from its 2009 General Rate Case decision, which allowed for higher revenue requirements. Despite the overall earnings dip, the company maintained a strong liquidity position, with SCE having significant available borrowing capacity. A notable development was the finalization of the Global Settlement with the IRS concerning federal tax disputes, which is expected to result in an after-tax earnings charge but a positive cash impact in the near future.

Financial Highlights

25 data points
Beta

Revenue

$2.81B

Net Income

$250.00M

8.9% Net Margin

EPS (Diluted)

$0.76

Cash & Equivalents

$3.54B

Free Cash Flow

-$99.00M

Financial Statements
Beta
Revenue$2.81B
Operating Expenses$2.26B
Operating Income$553.00M
Interest Expense$187.00M
Net Income$250.00M
EPS (Basic)$0.76
EPS (Diluted)$0.76
Shares Outstanding (Basic)326.00M
Shares Outstanding (Diluted)327.00M

Key Highlights

  • 1Net income decreased to $250 million ($0.76/share) from $299 million ($0.91/share) year-over-year.
  • 2SCE's earnings improved, driven by the 2009 General Rate Case decision which increased revenue requirements.
  • 3EMG's competitive power generation segment experienced a decline in earnings due to lower commodity prices and reduced generation.
  • 4The company finalized its Global Settlement with the IRS, resolving federal tax disputes, with an expected charge and positive cash impact.
  • 5SCE maintained a strong liquidity position with $1.22 billion available under its credit facilities.
  • 6Total operating revenue decreased to $2.81 billion from $3.11 billion, reflecting lower electric utility and competitive power generation revenues.
  • 7The company declared a quarterly dividend of $0.310 per common share, a slight increase from the prior year.

Frequently Asked Questions

The primary driver for the decrease in net income was the weaker performance in Edison Mission Group's (EMG) competitive power generation segment. This was impacted by lower commodity prices and reduced generation levels, which adversely affected EMG's results.

SCE's performance improved, primarily due to the CPUC's final decision in SCE's 2009 General Rate Case. This decision authorized a higher revenue requirement for 2009, which positively impacted SCE's earnings. The revenue requirement was made retroactive to January 1, 2009.

The finalized Global Settlement with the IRS resolves federal tax disputes related to Edison Capital's cross-border leases and other federal tax disputes for tax years 1986-2002. While it is expected to result in an after-tax earnings charge of approximately $225 million to $300 million through the second quarter of 2009, it is also projected to have an overall positive cash impact of approximately $325 million to $400 million.

Edison International maintained a strong liquidity position. Specifically, SCE had $1.22 billion remaining under its credit facilities as of March 31, 2009, in addition to cash and equivalents. EMG also had a significant amount of cash and cash equivalents and available borrowing capacity under its credit facilities.