Edison International Reports Second Quarter 2014 Results

Edison International (NYSE: EIX) today reported second quarter 2014 net income on a GAAP basis of $536 million, or $1.64 per share, compared to losses of $94 million, or $0.29 per share, in the second quarter of 2013. On an adjusted basis, Edison International’s second quarter 2014 core earnings were $352 million, or $1.08 per share, compared to $259 million, or $0.79 per share, in the second quarter of 2013.

Southern California Edison’s (SCE) second quarter 2014 core earnings increased $88 million, or $0.27 per share, primarily due to higher authorized revenues from rate base growth, income tax benefits, and other income. Edison International Parent and Other’s second quarter core losses decreased $5 million primarily due to consolidated state income tax benefits.

Second quarter 2014 core earnings exclude income of $184 million, or $0.56 per share, from discontinued operations. Second quarter 2013 core earnings exclude a charge of $365 million, or $1.12 per share, related to the shut down of SCE's San Onofre Nuclear Generating Station (SONGS), and $12 million, or $0.04 per share, of income from discontinued operations.

“Edison International continues to deliver strong earnings growth from investing in our core wires business infrastructure, managing our costs, and benefiting from favorable tax items," said Ted Craver, chairman and chief executive officer of Edison International. "Based on our year-to-date results, we expect full-year earnings to be well above the high end of our core earnings guidance range. We are not providing new earnings guidance at this time, but may consider adjusting guidance when third quarter results are reported."

Year-to-Date Earnings

For the six months ended June 30, 2014, Edison International reported net income on a GAAP basis of $712 million, or $2.18 per share, compared to $176 million, or $0.54 per share, during the same period in 2013. On an adjusted basis, Edison International’s core earnings were $646 million, or $1.98 per share, compared to $510 million, or $1.57 per share, in the year-to-date period in 2013.

SCE’s core earnings for the six months ended June 30, 2014 increased $136 million, or $0.41 per share, from the six months ended June 30, 2013, primarily due to higher authorized revenues from rate base growth, income tax benefits, lower operation and maintenance expenses and other income. Edison International Parent and Other’s core losses for the six month periods ended June 30, 2014, and 2013, were comparable with tax benefits related to consolidated state income taxes offset by higher corporate and new business expenses.

Year-to-date 2014 core earnings exclude charges of $96 million, or $0.29 per share, related to SCE’s settlement agreement for SONGS and $162 million, or $0.49 per share, of income from discontinued operations. Year-to-date 2013 core earnings exclude the $365 million, or $1.12 per share, SONGS charge, $7 million, or $0.02 per share, of earnings from tax benefits related to a sale of a lease investment in 2012, and $24 million, or $0.07 per share, of income from discontinued operations.

Edison International uses core earnings, which is a non-GAAP financial measure that adjusts for significant discrete items that management does not consider representative of ongoing earnings. Edison International management believes that core earnings provide more meaningful comparisons of performance from period to period. Please see the attached tables for a reconciliation of core earnings to basic earnings.

2014 Earnings Guidance

Based on the company’s year-to-date results, full-year earnings are expected to be above the high end of the guidance range due to several items not included in guidance. The company may consider adjusting guidance when third quarter results are reported. See the risk disclosure statement in the Appendix and the presentation accompanying the company’s conference call for further information.

Note: Excludes $0.23 per share in core items recorded year-to-date but not in guidance, and $0.56 per share in non-core discontinued operations earnings recorded in the second quarter 2014 results but not in guidance.

About Edison International

Edison International (NYSE:EIX), through its subsidiaries, is a generator and distributor of electric power and an investor in energy services and technologies, including renewable energy. Headquartered in Rosemead, Calif., Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities.

Appendix

Use of Non-GAAP Financial Measures

Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core earnings per share (EPS) internally for financial planning and for analysis of performance. We also use core earnings and core EPS when communicating with analysts and investors regarding our earnings results to facilitate comparisons of the company’s performance from period to period. Financial measures referred to net income, basic EPS, core earnings, or core EPS also applies to the description of earnings or earnings per share.

Core earnings and core EPS are non-GAAP financial measures and may not be comparable to those of other companies. Core earnings and core EPS are defined as basic earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. Basic earnings and losses refer to net income or losses attributable to Edison International shareholders. Core earnings are reconciled to basic earnings in the attached tables. The impact of participating securities (vested awards that earn dividend equivalents that may participate in undistributed earnings with common stock) for the principal operating subsidiary is not material to the principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which is included in Edison International Parent and Other.

Risk Disclosure Statement

Forward-looking statements about the financial outlook for Edison International and its subsidiaries are included in this news release. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Edison International’s Form 10-K, most recent Form 10-Q, and other reports and presentations filed with the Securities and Exchange Commission which are available at: www.edisoninvestor.com. These forward-looking statements represent our expectations only as of the date of this news release, and Edison International assumes no duty to update them to reflect new information, events or circumstances.

Reminder: Edison International Will Hold a Conference Call Today

Note: Diluted earnings were $1.63 and $(0.29) per share for the three months ended June 30, 2014 and 2013, respectively, and $2.17 and $0.54 per share for the six months ended June 30, 2014 and 2013, respectively.