Summary
Edison International's third quarter 2009 filing shows a mixed financial performance, with its electric utility segment (Southern California Edison - SCE) demonstrating increased earnings driven by regulatory rate adjustments and a significant one-time benefit from a global tax settlement. Conversely, the competitive power generation segment (Edison Mission Group - EME) experienced a substantial decline in earnings, primarily due to lower energy prices and trading income. The company's overall net income attributable to common shareholders saw a decrease compared to the prior year, mainly impacted by the weak performance of the EME segment. Liquidity remains a focus, with SCE maintaining significant available borrowing capacity. However, EME continues to face challenges in accessing capital markets due to its below-investment-grade credit ratings, though it is managing its operations through existing cash flows and selective growth strategies. The company highlights ongoing capital expenditures for infrastructure improvements at SCE and a focus on renewable projects for EME, alongside significant ongoing environmental and regulatory matters that could impact future financial performance.
Financial Highlights
44 data points| Revenue | $3.66B |
| Operating Expenses | $2.90B |
| Operating Income | $768.00M |
| Interest Expense | $187.00M |
| Net Income | $403.00M |
| EPS (Basic) | $1.23 |
| EPS (Diluted) | $1.22 |
| Shares Outstanding (Basic) | 326.00M |
| Shares Outstanding (Diluted) | 329.00M |
Key Highlights
- 1SCE's earnings from continuing operations increased significantly due to a $300 million after-tax benefit from the Global Settlement and a $46 million non-cash accounting benefit related to the transfer of the Mountainview power plant.
- 2EME's earnings from continuing operations saw a substantial year-over-year decline, impacted by lower energy prices and trading income, resulting in a net loss from continuing operations for the nine-month period.
- 3Consolidated net income attributable to Edison International common shareholders decreased to $403 million from $439 million in the prior year's quarter, and to $637 million from $999 million year-to-date.
- 4SCE's liquidity remained strong, with approximately $3.5 billion in available liquidity, including cash and short-term investments and $2.8 billion available under credit facilities.
- 5EME's credit ratings remain below investment grade, posing challenges for accessing capital markets, although the company is managing its business through existing cash flows and selective growth strategies.
- 6The company has significant ongoing capital expenditure plans, with SCE projecting $16.8 billion to $19.8 billion for 2009-2013, primarily for infrastructure improvements, and EME focusing on renewable energy projects.
- 7Edison International finalized a Global Settlement with the IRS, resolving federal tax disputes and resulting in a significant after-tax earnings charge of $274 million recognized through the second quarter of 2009, but with expected positive cash impacts over time.