Summary
Edison International (EIX) reported a net loss of $70 million, or $0.29 per diluted share, for the three months ended June 30, 2013, a significant decline from a net income of $98 million, or $0.22 per diluted share, in the same period of the prior year. For the six months ended June 30, 2013, net income was $227 million, or $0.54 per diluted share, compared to $208 million, or $0.50 per diluted share, in the prior year. The primary driver of the quarterly loss was a substantial asset impairment charge of $575 million related to the permanent retirement of the San Onofre Nuclear Generating Station. Despite this significant impairment, core earnings remained positive, reflecting the operational resilience of the utility business. Southern California Edison (SCE), the primary subsidiary, experienced a decline in net income for the quarter due to the San Onofre impairment and timing of regulatory rate adjustments. However, operating revenue for both Edison International and SCE saw an increase year-over-year for both the quarter and the six-month period, driven by higher sales volumes and, for SCE, rate increases implemented following the 2012 General Rate Case. The company is managing its liquidity through revolving credit facilities and has a substantial capital investment plan focused on infrastructure upgrades. The permanent retirement of San Onofre introduces significant regulatory and financial considerations, including potential cost recovery from customers and third parties, which will be closely watched by investors.
Financial Highlights
43 data points| Revenue | $3.05B |
| Operating Expenses | $3.12B |
| Operating Income | -$71.00M |
| Interest Expense | $133.00M |
| Net Income | -$70.00M |
| EPS (Basic) | $-0.29 |
| EPS (Diluted) | $-0.29 |
| Shares Outstanding (Basic) | 326.00M |
| Shares Outstanding (Diluted) | 326.00M |
Key Highlights
- 1Edison International reported a net loss of $70 million for the three months ended June 30, 2013, primarily due to a $575 million asset impairment charge related to the permanent retirement of the San Onofre Nuclear Generating Station.
- 2Despite the quarterly net loss, core earnings remained positive at $259 million for the quarter, indicating the underlying stability of the utility operations.
- 3Operating revenue increased year-over-year for both the quarter ($3,046 million vs. $2,653 million) and the six-month period ($5,678 million vs. $5,068 million), driven by higher sales volumes and rate adjustments.
- 4Southern California Edison (SCE) experienced a significant increase in operating expenses, including a $575 million asset impairment charge for San Onofre, and also incurred severance costs associated with workforce reductions.
- 5The company has a substantial capital investment plan with projected expenditures of $17.8 billion to $20.3 billion for 2013-2017, focusing on transmission, distribution, and generation infrastructure.
- 6The permanent retirement of San Onofre has resulted in reclassification of $1.521 billion of investment to a regulatory asset, subject to CPUC review for customer rate recovery.
- 7Edison International's liquidity remains adequate, supported by revolving credit facilities, with SCE's facility amended to extend maturity to July 2018.