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Edison International Reports First Quarter 2016 Results; Reaffirms 2016 Earnings Guidance

EIX, +1.03% today reported first quarter 2016 net income on a GAAP basis of $271 million, or $0.83 per share, compared to $299 million, or $0.92 per share, in the first quarter of 2015. On an adjusted basis, Edison International’s first quarter 2016 core earnings were $268 million, or $0.82 per share, compared to $294 million, or $0.90 per share, in the first quarter of 2015.

Southern California Edison's (SCE) first quarter 2016 core earnings decreased by $18 million, or $0.05 per share, from the first quarter 2015 primarily due to the timing of revenue recognized in 2015 due to the delay in receiving the 2015 California Public Utilities Commission General Rate Case decision, higher operation and maintenance costs and lower incremental income tax benefits.

Edison International Parent and Other’s first quarter 2016 core losses increased by $8 million, or $0.03 per share, compared to first quarter 2015 core losses primarily due to higher development and operating costs at Edison Energy Group and subsidiaries and income in the first quarter of 2015 from Edison Capital's investments in affordable housing projects.

Edison International's first quarter 2016 core earnings exclude income of $3 million, or $0.01 per share, and first quarter 2015 core earnings exclude income of $5 million, or $0.02 per share, both primarily related to losses allocated to tax equity investors under the hypothetical liquidation at book value accounting method.

“First quarter results were consistent with our expectation leading us to reaffirm 2016 core earnings guidance,” said Ted Craver, chairman and chief executive officer of Edison International. “At SCE, we continue to see significant rate base growth driven by continued investment in infrastructure reliability and public safety and supporting California’s low-carbon policy objectives.”

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 GAAP earnings.

2016 Earnings Guidance

The company reaffirmed core earnings guidance of $3.81 to $4.01 per share for 2016 and updated its basic earnings guidance to $3.82 to $4.02 per share for a first quarter non-core item. See the presentation accompanying the company’s conference call for further information including key guidance assumptions.

2016 Core and Basic Earnings Guidance

2016 Earnings Guidance 2016 Earnings Guidance
as of February 23, 2016 as of May 2, 2016
Low Mid High Low Mid High
SCE $ 4.09 $ 4.09
EIX Parent & Other (0.18 ) (0.18 )
EIX Core EPS $ 3.81 $ 3.91 $ 4.01 $ 3.81 $ 3.91 $ 4.01
Non-core Items* - - - 0.01 0.01 0.01
EIX Basic EPS $ 3.81 $ 3.91 $ 4.01 $ 3.82 $ 3.92 $ 4.02

* Non-core items recorded for the three months ended March 31, 2016.

About Edison International

Edison International EIX, +1.03% 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 of Edison International and Southern California Edison. 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 as net income, basic EPS, core earnings, or core EPS also apply 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...


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