Edison International Reports Financial Results for 2000

Apr 17, 2001, 01:00 ET from Edison International

    ROSEMEAD, Calif., April 17 /PRNewswire/ -- After the effect of a financial
 accounting charge, Edison International (NYSE:   EIX) reported a year 2000 loss
 of $1.9 billion or $5.84 per share.  Excluding the effect of the charge,
 Edison International's year 2000 earnings per share were $1.74, compared with
 $1.79 per share in 1999.
     In compliance with Financial Accounting Standards Board (FASB) rules for
 financial accounting by utilities for "regulatory assets," the company's
 regulated utility, Southern California Edison (SCE), reported an after-tax
 earnings charge of $2.5 billion.  Assuming the Memorandum of Understanding
 announced by Governor Davis and SCE last week is implemented or,
 alternatively, courts uphold Edison's legal claims to recover its
 undercollected costs, this charge against earnings could later be reversed.
     According to John Bryson, chairman and CEO of Edison International,
 "Today's financial charge, painful as it is for the company, only recognizes
 the well-known reality of SCE's large, unreimbursed costs of serving its
 customers.  What is important now, however, is not so much compliance with
 accounting rules but whether Edison ultimately has a path to recover its
 costs.  A practical means to recovery is charted in the Memorandum of
 Understanding reached with Governor Davis last week.  Prompt implementation of
 the MOU can avoid the large costs of an SCE bankruptcy and make it possible
 for the company to restore its financial health and ability to maintain a
 reliable power grid."
 
     2000 EARNINGS SUMMARY
     Excluding the write-off at SCE, Edison International's 2000 reported
 earnings were $578 million, compared with $623 million in 1999, and SCE earned
 $471 million in 2000, compared with $484 million in 1999.  Edison Mission
 Energy (EME) earned $125 million in 2000, compared with $130 million in 1999.
 Edison Capital earned $135 million in 2000, compared with $129 million in
 1999.
     Edison Enterprises and the parent company incurred losses of $154 million
 in 2000, compared with losses of $120 million in 1999.  Edison International's
 1999 earnings included special charges netting to $8 million.
 
 
      2000 EARNINGS DETAIL
 
 
                                           Year Ended December 31,
      Earnings ($000)                2000           1999          Change
      Reported Basis
       SCE excluding write-off       471,420       483,532         (12,112)
       SCE Write-off              (2,521,207)           --      (2,521,207)
      SCE including write-off     (2,049,787)      483,532      (2,533,319)
      Edison Mission Energy          125,252       130,277          (5,025)
      Edison Capital                 135,326       129,366           5,960
                                  (1,789,209)      743,175      (2,532,384)
      Edison Enterprises &
       parent co.                   (153,588)     (120,145)        (33,443)
      Edison International
       - consolidated            $(1,942,797)     $623,030     $(2,565,827)
 
 
     The decrease of $12 million at SCE was primarily attributable to
 adjustments to reflect potential regulatory refunds, lower gains from sales of
 equity investments, and a 1999 one-time gain related to a tax benefit
 partially offset by superior operating performance at the San Onofre Nuclear
 Generating Station (SONGS) and higher kWh sales.
     EME's 2000 earnings of $125 million decreased $5 million from 1999.  The
 decrease reflects higher interest costs and taxes partially offset by a full
 year of operating results from the Illinois plants and a reduction of
 long-term incentive compensation under EME's Phantom Stock Option plan.
     Edison Capital contributed $135 million in 2000 compared with $129 million
 in 1999.  Growth in earnings from new investments in infrastructure and
 leveraged leases, partially offset by declining revenue from existing
 leveraged leases, were primarily responsible for the $6 million increase.
     Edison Enterprises and the parent company's $154 million loss in 2000 was
 mostly the result of higher interest expense at the parent company.
 
 
                                             Year Ended December 31,
                                       2000          1999           Change
      Reported Earnings Per Share
      Southern California Edison      $(6.16)        $1.39          $(7.55)
      Edison Mission Energy             0.38          0.37            0.01
      Edison Capital                    0.41          0.37            0.04
      Edison Enterprises &
       parent company                  (0.47)        (0.34)          (0.13)
      Edison International
       - consolidated                 $(5.84)        $1.79          $(7.63)
 
 
     2000 FOURTH QUARTER EARNINGS SUMMARY
     For the fourth quarter of 2000, Edison International recorded a loss of
 $2.5 billion.  The net loss in the fourth quarter included the December
 write-off at SCE of generation-related regulatory assets of $2.5 billion
 (after tax), or $7.74 per share, based on the quarter's weighted average
 shares outstanding of 325,811,206.  Excluding the write-off at SCE, Edison
 International's fourth quarter 2000 loss was $28 million, compared with
 earnings of $96 million in 1999.
 
 
      2000 FOURTH QUARTER EARNINGS DETAIL
 
 
                                         Quarter Ended December 31,
      Earnings ($000)                2000           1999          Change
      Reported Basis
       SCE excluding write-off        30,065       140,694        (110,629)
       SCE write-off              (2,521,207)           --      (2,521,207)
      SCE including write-off     (2,491,142)      140,694      (2,631,836)
      Edison Mission Energy          (35,035)       (5,899)        (29,136)
      Edison Capital                  22,322        20,568           1,754
                                  (2,503,855)      155,363      (2,659,218)
      Edison Enterprises &
       parent co.                    (45,802)      (59,302)         13,500
      Edison International
       - consolidated            $(2,549,657)      $96,061     $(2,645,718)
 
 
     Excluding the write-off, SCE earned $30 million in the fourth quarter of
 2000, compared with $141 million in 1999.  The decrease of $111 million
 primarily reflects the scheduled refueling outage of SONGS Unit 2, adjustments
 to reflect potential regulatory refunds and higher interest expense.
     EME reported a loss of $35 million for the quarter compared to a loss of
 $6 million for the same period last year.  The decrease was primarily due to
 an after-tax gain during the fourth quarter of last year from the sale of a
 portion of EME's interest in Four Star Oil & Gas.
     Edison Capital contributed $22 million for the fourth quarter up
 $2 million from the same period last year.  The increase in earnings per share
 was mainly a result of growth in earnings from new investments in
 infrastructure, leveraged leases and affordable housing syndications, and
 lower operating expenses.  This increase was partially offset by declining
 revenue from existing leveraged leases.
     Edison Enterprises and the parent company recorded a $46 million loss in
 fourth quarter of 2000 compared to a $59 million loss in fourth quarter of
 1999.  Increased interest expense at the parent company offset by a 1999
 charge to refocus Edison Enterprises businesses accounted for most of the 2000
 increase.
 
 
                                            Quarter Ended December 31,
                                       2000          1999           Change
      Reported Earnings Per Share
      Southern California Edison      $(7.65)        $0.41          $(8.06)
      Edison Mission Energy            (0.11)        (0.02)          (0.09)
      Edison Capital                    0.07          0.06            0.01
      Edison Enterprises &
       parent company                  (0.14)        (0.17)           0.03
      Edison International
       - consolidated                 $(7.83)        $0.28          $(8.11)
 
 
     This release contains forward-looking statements about the impact of the
 recently signed Memorandum of Understanding (MOU) on the assets, earnings, and
 financial condition of SCE.  These statements involve risks and uncertainties.
 Actual results could differ materially as a result of factors such as failure
 by the California Public Utilities Commission, California legislature, or
 other governmental entities to implement the MOU; other regulatory,
 legislative and governmental actions; actions by creditors, including possible
 filing of involuntary bankruptcy petitions; possible initiatives or referendum
 challenging the actions contemplated by the MOU; and other factors described
 in Edison International's Annual Report on form 10-K for the year ended
 December 31, 2000.
 
     Based in Rosemead, Calif., Edison International is the parent company of
 Southern California Edison, Edison Mission Energy, Edison Capital, Edison O&M
 Services, and Edison Enterprises.
 
 

SOURCE Edison International
    ROSEMEAD, Calif., April 17 /PRNewswire/ -- After the effect of a financial
 accounting charge, Edison International (NYSE:   EIX) reported a year 2000 loss
 of $1.9 billion or $5.84 per share.  Excluding the effect of the charge,
 Edison International's year 2000 earnings per share were $1.74, compared with
 $1.79 per share in 1999.
     In compliance with Financial Accounting Standards Board (FASB) rules for
 financial accounting by utilities for "regulatory assets," the company's
 regulated utility, Southern California Edison (SCE), reported an after-tax
 earnings charge of $2.5 billion.  Assuming the Memorandum of Understanding
 announced by Governor Davis and SCE last week is implemented or,
 alternatively, courts uphold Edison's legal claims to recover its
 undercollected costs, this charge against earnings could later be reversed.
     According to John Bryson, chairman and CEO of Edison International,
 "Today's financial charge, painful as it is for the company, only recognizes
 the well-known reality of SCE's large, unreimbursed costs of serving its
 customers.  What is important now, however, is not so much compliance with
 accounting rules but whether Edison ultimately has a path to recover its
 costs.  A practical means to recovery is charted in the Memorandum of
 Understanding reached with Governor Davis last week.  Prompt implementation of
 the MOU can avoid the large costs of an SCE bankruptcy and make it possible
 for the company to restore its financial health and ability to maintain a
 reliable power grid."
 
     2000 EARNINGS SUMMARY
     Excluding the write-off at SCE, Edison International's 2000 reported
 earnings were $578 million, compared with $623 million in 1999, and SCE earned
 $471 million in 2000, compared with $484 million in 1999.  Edison Mission
 Energy (EME) earned $125 million in 2000, compared with $130 million in 1999.
 Edison Capital earned $135 million in 2000, compared with $129 million in
 1999.
     Edison Enterprises and the parent company incurred losses of $154 million
 in 2000, compared with losses of $120 million in 1999.  Edison International's
 1999 earnings included special charges netting to $8 million.
 
 
      2000 EARNINGS DETAIL
 
 
                                           Year Ended December 31,
      Earnings ($000)                2000           1999          Change
      Reported Basis
       SCE excluding write-off       471,420       483,532         (12,112)
       SCE Write-off              (2,521,207)           --      (2,521,207)
      SCE including write-off     (2,049,787)      483,532      (2,533,319)
      Edison Mission Energy          125,252       130,277          (5,025)
      Edison Capital                 135,326       129,366           5,960
                                  (1,789,209)      743,175      (2,532,384)
      Edison Enterprises &
       parent co.                   (153,588)     (120,145)        (33,443)
      Edison International
       - consolidated            $(1,942,797)     $623,030     $(2,565,827)
 
 
     The decrease of $12 million at SCE was primarily attributable to
 adjustments to reflect potential regulatory refunds, lower gains from sales of
 equity investments, and a 1999 one-time gain related to a tax benefit
 partially offset by superior operating performance at the San Onofre Nuclear
 Generating Station (SONGS) and higher kWh sales.
     EME's 2000 earnings of $125 million decreased $5 million from 1999.  The
 decrease reflects higher interest costs and taxes partially offset by a full
 year of operating results from the Illinois plants and a reduction of
 long-term incentive compensation under EME's Phantom Stock Option plan.
     Edison Capital contributed $135 million in 2000 compared with $129 million
 in 1999.  Growth in earnings from new investments in infrastructure and
 leveraged leases, partially offset by declining revenue from existing
 leveraged leases, were primarily responsible for the $6 million increase.
     Edison Enterprises and the parent company's $154 million loss in 2000 was
 mostly the result of higher interest expense at the parent company.
 
 
                                             Year Ended December 31,
                                       2000          1999           Change
      Reported Earnings Per Share
      Southern California Edison      $(6.16)        $1.39          $(7.55)
      Edison Mission Energy             0.38          0.37            0.01
      Edison Capital                    0.41          0.37            0.04
      Edison Enterprises &
       parent company                  (0.47)        (0.34)          (0.13)
      Edison International
       - consolidated                 $(5.84)        $1.79          $(7.63)
 
 
     2000 FOURTH QUARTER EARNINGS SUMMARY
     For the fourth quarter of 2000, Edison International recorded a loss of
 $2.5 billion.  The net loss in the fourth quarter included the December
 write-off at SCE of generation-related regulatory assets of $2.5 billion
 (after tax), or $7.74 per share, based on the quarter's weighted average
 shares outstanding of 325,811,206.  Excluding the write-off at SCE, Edison
 International's fourth quarter 2000 loss was $28 million, compared with
 earnings of $96 million in 1999.
 
 
      2000 FOURTH QUARTER EARNINGS DETAIL
 
 
                                         Quarter Ended December 31,
      Earnings ($000)                2000           1999          Change
      Reported Basis
       SCE excluding write-off        30,065       140,694        (110,629)
       SCE write-off              (2,521,207)           --      (2,521,207)
      SCE including write-off     (2,491,142)      140,694      (2,631,836)
      Edison Mission Energy          (35,035)       (5,899)        (29,136)
      Edison Capital                  22,322        20,568           1,754
                                  (2,503,855)      155,363      (2,659,218)
      Edison Enterprises &
       parent co.                    (45,802)      (59,302)         13,500
      Edison International
       - consolidated            $(2,549,657)      $96,061     $(2,645,718)
 
 
     Excluding the write-off, SCE earned $30 million in the fourth quarter of
 2000, compared with $141 million in 1999.  The decrease of $111 million
 primarily reflects the scheduled refueling outage of SONGS Unit 2, adjustments
 to reflect potential regulatory refunds and higher interest expense.
     EME reported a loss of $35 million for the quarter compared to a loss of
 $6 million for the same period last year.  The decrease was primarily due to
 an after-tax gain during the fourth quarter of last year from the sale of a
 portion of EME's interest in Four Star Oil & Gas.
     Edison Capital contributed $22 million for the fourth quarter up
 $2 million from the same period last year.  The increase in earnings per share
 was mainly a result of growth in earnings from new investments in
 infrastructure, leveraged leases and affordable housing syndications, and
 lower operating expenses.  This increase was partially offset by declining
 revenue from existing leveraged leases.
     Edison Enterprises and the parent company recorded a $46 million loss in
 fourth quarter of 2000 compared to a $59 million loss in fourth quarter of
 1999.  Increased interest expense at the parent company offset by a 1999
 charge to refocus Edison Enterprises businesses accounted for most of the 2000
 increase.
 
 
                                            Quarter Ended December 31,
                                       2000          1999           Change
      Reported Earnings Per Share
      Southern California Edison      $(7.65)        $0.41          $(8.06)
      Edison Mission Energy            (0.11)        (0.02)          (0.09)
      Edison Capital                    0.07          0.06            0.01
      Edison Enterprises &
       parent company                  (0.14)        (0.17)           0.03
      Edison International
       - consolidated                 $(7.83)        $0.28          $(8.11)
 
 
     This release contains forward-looking statements about the impact of the
 recently signed Memorandum of Understanding (MOU) on the assets, earnings, and
 financial condition of SCE.  These statements involve risks and uncertainties.
 Actual results could differ materially as a result of factors such as failure
 by the California Public Utilities Commission, California legislature, or
 other governmental entities to implement the MOU; other regulatory,
 legislative and governmental actions; actions by creditors, including possible
 filing of involuntary bankruptcy petitions; possible initiatives or referendum
 challenging the actions contemplated by the MOU; and other factors described
 in Edison International's Annual Report on form 10-K for the year ended
 December 31, 2000.
 
     Based in Rosemead, Calif., Edison International is the parent company of
 Southern California Edison, Edison Mission Energy, Edison Capital, Edison O&M
 Services, and Edison Enterprises.
 
 SOURCE  Edison International