) reported adjusted earnings of $1.79 per share for the fourth
quarter of 2012, beating the Zacks Consensus Estimate of $1.06
and year-ago quarterly earnings of 79 cents per share.
On a reported basis, including one-time items, loss came in at
$1.64 per share for the fourth quarter versus a loss of $2.56 per
share in the year-ago quarter.
Full year 2012 adjusted earnings came in at $3.92 per share,
beating both the Zacks Consensus Estimate of $3.12 and full-year
2011 earnings of $3.31.
On a reported basis, the company reported full-year 2012 loss of
56 cents per share compared with a loss of 11 cents per share in
Edison International's revenue rose $543 million year over year
to $3.06 billion in the reported quarter. Revenues also were
higher than the Zacks Consensus Estimate of $2.18 billion.
Full year 2012 revenue of $11.86 billion was more than the Zacks
Consensus Estimate of $11.41 billion. Revenue was also greater
than full-year 2011 revenue of $10.59 billion.
Fourth-Quarter Segment Results
Southern California Edison (SCE) segment's fourth quarter 2012
earnings were $1.85 per share compared with 76 cents in the
fourth quarter of 2011. In the reported quarter, earnings rose
primarily due to implementation of SCE's 2012 General Rate Case
which allowed SCE to recover its revenue requirement retroactive
to January 1, 2012, and record certain tax benefits.
The fourth quarter 2012 results also include rate base growth
and solid operating results, offset by severance costs as SCE
continues to optimize its cost structure and minimize impacts on
Effective Dec 17, 2012, Edison International no longer
consolidates the earnings and losses of Edison Mission Energy
(EME) due to EME filing voluntary petitions for relief under
Chapter 11 of the Bankruptcy Code. EME and those subsidiaries in
Chapter 11 proceedings retain control of their assets and are
authorized to operate their businesses as debtors-in-possession
under the jurisdiction of the Bankruptcy Court.
Edison International has recorded a full impairment of the
investment in EME as a result of the deconsolidation of EME,
recognition of losses previously deferred in accumulated other
comprehensive income, a provision for losses from the EME
bankruptcy, and estimated tax impacts related to the expected
future tax deconsolidation and separation of EME from Edison
The aggregate impact of these matters resulted in an after-tax
charge of $3.86 per share during the fourth quarter of 2012.
Including EME quarterly earnings through the date of bankruptcy
filing, the fourth quarter loss was $4.07 per share.
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Edison International's parent company and other segment on a
reported basis digested a fourth quarter 2012 loss of 14 cents
per share compared with a loss of 8 cents per share in the same
quarter last year. Core losses were 6 cents per share in the
fourth quarter of 2012 compared with core earnings of 3 cents per
share in the fourth quarter of 2011. The decrease in core
earnings was primarily due to changes in income taxes and higher
Edison International in full year 2012 generated $3.33 billion
from operating activities compared with $3.91 billion in full
year 2011. Cash and cash equivalents at the end of the reported
period were $170 million versus $169 million at full year-end
2011. Long-term debt increased to $9.23 billion compared with
$8.83 billion at full year-end 2011.
Based in Rosemead, California, Edison International engages in
the supply of electric energy in central, coastal and southern
Edison International's consistent performance through its solid
base of stable utility operations, ongoing alternative energy
projects, balance sheet strength, and a relatively cheap
earnings-based valuation is partially offset by the pending
regulatory decisions from the California Public Utilities
Commission, and risks regarding recovery of capital expansion
Edison International currently retains a short-term Zacks Rank #3
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