http://www.morningstar.com/earnings/32049720-edison-international-eix-q3-2011.aspx

Edison International EIX
Q3 2011 Earnings Call Transcript

Transcript Call Date 11/02/2011

Operator: Good morning. My name is Elaine and I will be your conference operator today. At this time, I would like to welcome everyone to the Edison International Third Quarter 2011 Financial Teleconference. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Today's call is being recorded.

I would now like to turn the call over to Mr. Scott Cunningham, Vice President of Investor Relations. Thank you, Mr. Cunningham. You may begin your conference.

Scott S. Cunningham - VP, IR: Thanks, Elaine, and good morning, everyone. Our principal speakers today will be Chairman and CEO, Ted Craver; and Chief Financial Officer, Jim Scilacci. Also with us are other members of the management team. The presentation that accompanies Jim's comments, together with the earnings press release and our 10-Q filings are available on our website at www.edisoninvestor.com. This afternoon, we'll be posting on the website our regular quarterly business update presentation that will use these and other slides for our ongoing investor discussions.

During this call, we will make forward-looking statements about the financial outlook for Edison International and its subsidiaries, and about other future events. Actual results could differ materially from current expectations. Important factors that could cause different results are set forth in our SEC filings. We encourage you to read these carefully.

The presentation includes certain outlook assumptions, as well as reconciliation of non-GAAP measures to the nearest GAAP measure.

When we get to Q&A, please limit yourself to one question and one follow-up. If you have further questions, please return to the queue.

With that, I'll turn the call over to Ted Craver.

Theodore F. Craver Jr. - Chairman, President and CEO: Thanks, Scott, and good morning, everyone. Today, Edison International reported third quarter earnings of $1.31 per share. Core earnings for the quarter were down $0.15 from a year ago due to lower earnings from EMG. Earnings at southern California Edison increased 16%. Year-to-date earnings were $2.46 per share, core earnings were down $0.43 per share compared to a year ago again on lower EMG results.

SCE core earnings increased 5%. While we work to uncover the option value for EMG we believe a good proxy for the investment thesis in our stock is core earnings at SCE net of corporate costs. Our third quarter financial results are consistent with the high end of our earnings guidance range for 2011 and have given us even greater confidence and an improved outlook across the Company at SCE, EMG and the Parent. Therefore, we are raising our 2011 core earnings guidance to a range of $2.90 to $3 per share. Jim will provide more information on our higher earnings outlook in his remarks.

I'd like to focus my comments today in two areas, reaffirming the growth opportunity for SCE and the path to unlocking the potential option value in EMG. Southern California Edison continues to implement its capital investment program which is expected to result in 8% to 11% average annual rate base growth through 2014. This growth is largely driven by California policy mandates such as transmission investments needed to meet California's 33% renewable requirement.

Read our Earnings Call Transcript disclaimer.
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