Edison International (EIX) has reported a marginal increase of 0.22 percent in profit for the quarter ended Sep. 30, 2016. The company has earned $450 million, or $1.27 a share, compared with $449 million or $1.28 a share, a year ago.
Revenue during the quarter went up marginally by 0.11 percent to $3,767 million from $3,763 million in the previous year period. Gross margin for the quarter expanded 180 basis points over the previous year period to 54.37 percent. Total expenses were 81.55 percent of quarterly revenues, down from 83.84 percent for the same period last year. This has led to an improvement of 229 basis points in operating margin to 18.45 percent.
Operating income for the quarter was $695 million, compared with $608 million in the previous year period.
"Third quarter results reflect the ongoing strength of SCE's earnings and we’ve reaffirmed our 2016 earnings guidance accordingly," said Pedro Pizarro, president and chief executive officer of Edison International. “We continue to see a long-term opportunity for above-average earnings and dividend growth based on SCE infrastructure replacement and electric grid modernization helping achieve California’s vision for a low-carbon economy."
Operating cash flow declines
Edison International has generated cash of $2,500 million from operating activities during the nine month period, down 11.75 percent or $333 million, when compared with the last year period.
The company has spent $2,477 million cash to meet investing activities during the nine month period as against cash outgo of $2,857 million in the last year period.
The company has spent $100 million cash to carry out financing activities during the nine month period as against cash inflow of $26 million in the last year period.
Cash and cash equivalents stood at $84 million as on Sep. 30, 2016, down 37.31 percent or $50 million from $134 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Edison International was negative $2,737 million on Sep. 30, 2016 compared with negative $1,447 million on Sep. 30, 2015. Current ratio was at 0.49 as on Sep. 30, 2016, down from 0.72 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 36 days for the quarter from 29 days for the last year period. Days sales outstanding went down to 22 days for the quarter compared with 24 days for the same period last year.
Days inventory outstanding has decreased to 8 days for the quarter compared with 14 days for the previous year period. At the same time, days payable outstanding went down to 66 days for the quarter from 68 for the same period last year.
Debt comes down marginally
Edison International has recorded a decline in total debt over the last one year. It stood at $12,045 million as on Sep. 30, 2016, down 2.91 percent or $361 million from $12,406 million on Sep. 30, 2015. Total debt was 23.36 percent of total assets as on Sep. 30, 2016, compared with 24.20 percent on Sep. 30, 2015. Debt to equity ratio was at 0.86 as on Sep. 30, 2016, down from 0.91 as on Sep. 30, 2015. Interest coverage ratio improved to 4.73 for the quarter from 4.41 for the same period last year.
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