Edison International · NYSE:EIX
Edison International — Q3 2015 Earnings Presentation
16 slides from Edison International's earnings presentation, Oct 27, 2015
Slide 1: Third Quarter 2015 Financial Results
October 27, 2015 Third Quarter 2015 Financial Results
Slide 2: Forward-Looking Statements
October 27, 2015 1 Forward-Looking Statements Statements contained in this presentation about future performance, including, without limitation, operating results, asset and rate base growth, capital expenditures, financial outlook, and other statements that are not purely historical, are forward-lo
Slide 3: Third Quarter Earnings Summary
October 27, 2015 2 Q3 2015 Q3 2014 Variance Core Earnings Per Share (EPS)1 SCE $1.19 $1.54 ($0.35) EIX Parent & Other (0.03) (0.02) (0.01) Core EPS1 $1.16 $1.52 ($0.36) Non-Core Items2 SCE $ – $ – $ – EIX Parent & Other – – – Discontinued Operations 0.13 (0.05) 0.18 Total Non-Core $0.13 ($0.05) $0.1
Slide 4: Key Drivers of Q3 2015 Core EPS
October 27, 2015 3 $1.16 (0.20) (0.03) (0.02) (0.12) (0.01) 0.02 $1.52 Q3 2014 Core EPS Lower Revenue Higher O&M Higher Depreciation Lower Net Financing Costs Higher Income Taxes EIX Parent & Other Q3 2015 Core EPS Key Drivers of Q3 2015 Core EPS Lower revenues reflect 2015 GRC Proposed Decision 1 1
Slide 5: YTD 2015 Earnings Summary
October 27, 2015 4 YTD 2015 YTD 2014 Variance Core Earnings Per Share (EPS)1 SCE $3.31 $3.58 ($0.27) EIX Parent & Other (0.09) (0.08) ($0.01) Core EPS1 $3.22 $3.50 ($0.28) Non-Core Items2 SCE $ – ($0.29) $0.29 EIX Parent & Other 0.02 – 0.02 Discontinued Operations 0.13 0.45 (0.32) Total Non-Core $0.
Slide 6: Key Drivers of YTD 2015 Core EPS
October 27, 2015 5 Key Drivers of YTD 2015 Core EPS $3.22 (0.07) (0.02) (0.11) (0.08) (0.04) (0.03) (0.01) 0.08 $3.50 YTD 2014 Core EPS Lower Revenue Higher O&M Higher Depreciation Lower Net Financing Costs Higher Income Taxes Property Taxes and Other Generator Settlements EIX Parent & Other YTD 201
Slide 7: CPUC proposed decision in 2015 General Rate Case
October 27, 2015 6 On September 18, 2015, the CPUC issued a proposed decision which is supportive of SCE strategy to increase infrastructure investment consistent with capital plan while mitigating customer rate impacts through productivity and lower operating costs • 2015 revenue requirement propos
Slide 8: 2015 General Rate Case Proposed Decision (cont.)
October 27, 2015 7 $80 million compensation expense reduction • Reductions in short-term incentives even though total compensation is 5% below market $10 million commercial solar program disallowance • Contract early termination payment resulted in over $200 million in customer savings 2015 General
Slide 9: SCE 2015-2017 Capital Expenditures
October 27, 2015 8 SCE 2015-2017 Capital Expenditures • Incorporates CPUC 2015 GRC proposed decision • Outlook adjusted for delays in FERC spending of approximately $50 million in 2015 and $350 million in 2016 related to shift in project schedules out in time Note: Forecasted capital spending subjec
Slide 10: SCE 2015-2017 Rate Base
October 27, 2015 9 SCE 2015-2017 Rate Base • Includes updated FERC capital spending forecast (rate base reductions of $0.1, $0.3 and $0.6 billion in 2015, 2016 and 2017 respectively) and GRC proposed decision rate base adjustments, except for $344 million rate base reduction for repair deduction tax
Slide 11: CPUC and FERC Cost of Capital
October 27, 2015 10 CPUC and FERC Cost of Capital 3 4 5 6 7 10/1/12 10/1/13 10/1/14 10/1/15 10/1/16 R a t e ( % ) CPUC Adjustment Mechanism Moody’s Baa Utility Index Spot Rate Moving Average (10/1/14 – 9/30/15) = 4.82% 100 basis point +/- Deadband Starting Value – 5.00% CPUC – 48% common equity and
Slide 12: Other Financial Topics
October 27, 2015 11 Other Financial Topics Topic Update Comments SCE EIX Holding Company Shelf registration refiled • Flexibility to term-out commercial paper borrowings ($738 million outstanding at Sept. 30 (vs. $545 million at June 30) • Second EME settlement payment of $204 million made on Septem
Slide 13: 2015 Core and Basic Earnings Guidance
October 27, 2015 12 $3.56 3.56 3.82 $3.82 (0.15) 0.41 SCE 2015 EPS from Rate Base Forecast 2015 SCE Variances EIX Parent & Other 2015 Core EIX EPS Midpoint Guidance 2015 Core and Basic Earnings Guidance 1. See Earnings Non-GAAP Reconciliations and Use of Non-GAAP Financial Measures in Appendix 2. No
Slide 14: Appendix
October 27, 2015 13 Appendix
Slide 15: Earnings Non-GAAP Reconciliations
October 27, 2015 14 Earnings Non-GAAP Reconciliations Reconciliation of EIX Core Earnings to EIX GAAP Earnings Earnings Attributable to Edison International Core Earnings SCE EIX Parent & Other Core Earnings Non-Core Items SCE EIX Parent & Other Discontinued operations Total Non-Core Basic Earnings
Slide 16: Use of Non-GAAP Financial Measures
October 27, 2015 15 Use of Non-GAAP Financial Measures Edison International's earnings are prepared in accordance with generally accepted accounting principles used in the United States. Management uses core earnings internally for financial planning and for analysis of performance. Core earnings ar