- Fourth Quarter 2021 GAAP earnings per share of $1.38; Core EPS
of $1.16
- Full-Year 2021 GAAP EPS of $2.00; Core EPS of $4.59 exceeds
guidance
- Edison International declares quarterly dividend of $0.70 per
share; annualized rate of $2.80 per share
- EIX announces 2022 EPS guidance of $4.40–4.70 and reiterates
long-term EPS growth rate target of 5–7%
Edison International (NYSE: EIX) today reported fourth quarter
2021 net income of $523 million, or $1.38 per share, compared to
net income of $526 million, or $1.39 per share, in the fourth
quarter of 2020. As adjusted, fourth quarter 2021 core earnings
were $440 million, or $1.16 per share, compared to core earnings of
$451 million, or $1.19 per share, in the fourth quarter of
2020.
Southern California Edison’s (SCE) fourth quarter 2021 core
earnings per share (EPS) increased year-over-year primarily due to
higher revenue from the 2021 General Rate Case (GRC) final decision
and income tax benefits from the settlement of 2007 – 2012
California tax audits, partially offset by higher operation and
maintenance expenses and higher net financing costs.
Edison International Parent and Other's fourth quarter 2021 loss
per share increased year-over-year primarily due to higher
preferred dividends as a result of preferred equity issuances in
2021.
“We delivered solid 2021 results with EPS exceeding the guidance
range. Additionally, SCE continues to significantly reduce wildfire
risk and the utility’s ongoing and planned mitigation actions give
us increased confidence of further risk reduction,” said Pedro J.
Pizarro, president and CEO of Edison International.
Pizarro added, “SCE sees substantial investment opportunities
over the next several years to bolster grid safety and resiliency.
Furthermore, with one of the strongest electrification profiles in
the industry, SCE is accelerating economywide electrification with
investments in transportation and building electrification to help
meet California’s climate goals. All these initiatives give us high
confidence in achieving EPS growth of 5 to 7% from 2021 to 2025.
Combined with the 4%+ current dividend yield, we see strong
potential for double-digit total return for EIX shares — before
potential P/E multiple expansion to recognize significant utility
and government risk reduction progress to-date and yet ahead.”
Full-Year Earnings
For 2021, Edison International reported net income of $759
million, or $2.00 per share, compared to $739 million, or $1.98 per
share, for 2020. As adjusted, Edison International's core earnings
were $1,741 million, or $4.59 per share, compared to $1,686
million, or $4.52 per share, in 2020.
SCE's full-year core EPS was higher due to higher revenue from
the 2021 GRC final decision, higher FERC revenue and income tax
benefits from the settlement of 2007 – 2012 California tax audits,
partially offset by lower insurance benefits and higher property
taxes.
Edison International Parent and Other’s full-year loss per share
increased primarily due to higher preferred dividends as a result
of preferred equity issuances in 2021.
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.
2022 Earnings Guidance
The company announced its earnings guidance range for 2022 as
summarized in the following chart. See pages 12 and 13 of the
presentation accompanying the company’s conference call for further
information and assumptions.
2022 Earnings Guidance
as of February 24,
2022
Low
High
EIX Basic EPS
$
4.40
$
4.70
Less: Non-core Items
—
—
EIX Core EPS
$
4.40
$
4.70
Edison International and Southern
California Edison Declare Dividends
Today, the Board of Directors of Edison International declared a
quarterly common stock dividend of $0.70 per share, payable on
April 30, 2022, to shareholders of record on March 31, 2022. They
also declared dividends on preferred stock. Additionally, the Board
of Directors of Southern California Edison Company today declared
dividends on preference stock. For more information, please see the
related news release at www.edisoninvestor.com.
Fourth Quarter and Full-Year 2021
Earnings Conference Call and Webcast Details
When:
Thursday, February 24, 2022, 1:30 p.m.
(Pacific Time)
Telephone Numbers:
1-888-673-9780 (US) and 1-312-470-0178
(Int'l) - Passcode: Edison
Telephone Replay:
1-800-835-8067 (US) and 1-203-369-3354
(Int’l) - Passcode: 3482
Telephone replay available through March
10, 2022
Webcast:
www.edisoninvestor.com
Edison International has posted its earnings conference call
prepared remarks by the CEO and CFO, the teleconference
presentation, and Form 10-K to the company's investor relations
website. These materials are available at
www.edisoninvestor.com.
About Edison
International
Edison International (NYSE: EIX) is one of the nation’s largest
electric utility holding companies, providing clean and reliable
energy and energy services through its independent companies.
Headquartered in Rosemead, California, Edison International is the
parent company of Southern California Edison Company, a utility
that delivers electricity to 15 million people across Southern,
Central and Coastal California. Edison International is also the
parent company of Edison Energy, a global energy advisory company
delivering comprehensive, data-driven energy solutions to
commercial and industrial users to meet their cost, sustainability
and risk goals.
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 income or losses attributable to Edison International
shareholders. Core earnings are reconciled to basic earnings in the
attached tables. The impact of participating securities (vested
awards that earn dividend equivalents that may participate in
undistributed earnings with common stock) for the principal
operating subsidiary is not material to the principal operating
subsidiary’s EPS and is therefore reflected in the results of the
Edison International holding company, which is included in Edison
International Parent and Other.
Safe Harbor Statement
Statements contained in this presentation about future
performance, including, without limitation, operating results,
capital expenditures, rate base growth, dividend policy, financial
outlook, and other statements that are not purely historical, are
forward-looking statements. These forward-looking statements
reflect our current expectations; however, such statements involve
risks and uncertainties. Actual results could differ materially
from current expectations. These forward-looking statements
represent our expectations only as of the date of this
presentation, and Edison International assumes no duty to update
them to reflect new information, events or circumstances. Important
factors that could cause different results include, but are not
limited to the:
- ability of SCE to recover its costs through regulated rates,
including uninsured wildfire-related and debris flow-related costs,
costs incurred to mitigate the risk of utility equipment causing
future wildfires, costs incurred to implement SCE's new customer
service system, costs incurred as a result of the COVID-19
pandemic, and increased labor and materials costs due to supply
chain constraints and inflation;
- ability of SCE to implement its Wildfire Mitigation Plan and
capital program;
- risks of regulatory or legislative restrictions that would
limit SCE's ability to implement Public Safety Power Shutoff
(“PSPS”) when conditions warrant or would otherwise limit SCE's
operational PSPS practices;
- risks associated with implementing PSPS, including regulatory
fines and penalties, claims for damages and reputational harm;
- ability of SCE to maintain a valid safety certification;
- ability to obtain sufficient insurance at a reasonable cost,
including insurance relating to SCE's nuclear facilities and
wildfire-related claims, and to recover the costs of such insurance
or, in the event liabilities exceed insured amounts, the ability to
recover uninsured losses from customers or other parties;
- extreme weather-related incidents (including events caused, or
exacerbated, by climate change, such as wildfires, debris flows,
droughts, high wind events and extreme heat events) and other
natural disasters (such as earthquakes), which could cause, among
other things, public safety issues, property damage, operational
issues (such as rotating outages and issues due to damaged
infrastructure), PSPS activations and unanticipated costs;
- risks that California Assembly Bill 1054 (“AB 1054”) does not
effectively mitigate the significant exposure faced by California
investor-owned utilities related to liability for damages arising
from catastrophic wildfires where utility facilities are alleged to
be a substantial cause, including the longevity of the Wildfire
Insurance Fund and the CPUC's interpretation of and actions under
AB 1054, including its interpretation of the prudency standard
established under AB 1054;
- ability of Edison International and SCE to effectively attract,
manage, develop and retain a skilled workforce, including its
contract workers;
- decisions and other actions by the California Public Utilities
Commission, the Federal Energy Regulatory Commission, the Nuclear
Regulatory Commission and other governmental authorities, including
decisions and actions related to nationwide or statewide crisis,
determinations of authorized rates of return or return on equity,
the recoverability of wildfire-related and debris flow-related
costs, issuance of SCE's wildfire safety certification, wildfire
mitigation efforts, approval and implementation of electrification
programs, and delays in executive, regulatory and legislative
actions;
- ability of Edison International or SCE to borrow funds and
access bank and capital markets on reasonable terms;
- risks associated with the decommissioning of San Onofre,
including those related to worker and public safety, public
opposition, permitting, governmental approvals, on-site storage of
spent nuclear fuel, delays, contractual disputes, and cost
overruns;
- pandemics, such as COVID-19, and other events that cause
regional, statewide, national or global disruption, which could
impact, among other things, Edison International's and SCE's
business, operations, cash flows, liquidity and/or financial
results and cause Edison International and SCE to incur
unanticipated costs;
- physical security of Edison International's and SCE's critical
assets and personnel and the cybersecurity of Edison
International's and SCE's critical information technology systems
for grid control, and business, employee and customer data;
- risks associated with cost allocation resulting in higher rates
for utility bundled service customers because of possible customer
bypass or departure for other electricity providers such as
Community Choice Aggregators (“CCA,” which are cities, counties,
and certain other public agencies with the authority to generate
and/or purchase electricity for their local residents and
businesses) and Electric Service Providers (entities that offer
electric power and ancillary services to retail customers, other
than electrical corporations (like SCE) and CCAs);
- risks inherent in SCE's capital investment program, including
those related to project site identification, public opposition,
environmental mitigation, construction, permitting, changes in the
California Independent System Operator’s transmission plans, and
governmental approvals; and
- risks associated with the operation of electrical facilities,
including worker and public safety issues, the risk of utility
assets causing or contributing to wildfires, failure, availability,
efficiency, and output of equipment and facilities, and
availability and cost of spare parts.
Additional information about risks and uncertainties, including
more detail about the factors described in this report, is
contained throughout this report and in the 2021 Form 10-K,
including the "Risk Factors" section. Readers are urged to read
this entire report, including information incorporated by
reference, as well as the 2021 Form 10-K, and carefully consider
the risks, uncertainties, and other factors that affect Edison
International's and SCE's businesses. Edison International and SCE
post or provide direct links (i) to certain SCE and other parties'
regulatory filings and documents with the CPUC and the FERC and
certain agency rulings and notices in open proceedings in a section
titled "SCE Regulatory Highlights," (ii) to certain documents and
information related to Southern California wildfires which may be
of interest to investors in a section titled "Southern California
Wildfires," and (iii) to presentations, documents and other
information that may be of interest to investors in a section title
"Presentations" at www.edisoninvestor.com in order to publicly
disseminate such information.
These forward-looking statements represent our expectations only
as of the date of this news release, and Edison International
assumes no duty to update them to reflect new information, events
or circumstances. Readers should review future reports filed by
Edison International and SCE with the SEC.
Fourth Quarter and Full-Year
Reconciliation of Basic Earnings Per Share to Core Earnings Per
Share
Three months ended
Twelve months ended
December 31,
December 31,
2021
2020
Change
2021
2020
Change
Earnings (loss) per share attributable to
Edison International
SCE
$
1.21
$
1.25
$
(0.04
)
$
2.18
$
2.17
$
0.01
Edison International Parent and Other
0.17
0.14
0.03
(0.18
)
(0.19
)
0.01
Edison International
1.38
1.39
(0.01
)
2.00
1.98
0.02
Less: Non-core items
SCE
(0.13
)
(0.05
)
(0.08
)
(2.94
)
(2.72
)
(0.22
)
Edison International Parent and Other
0.35
0.25
0.10
0.35
0.18
0.17
Total non-core items
0.22
0.20
0.02
(2.59
)
(2.54
)
(0.05
)
Core earnings (losses)
SCE
1.34
1.30
0.04
5.12
4.89
0.23
Edison International Parent and Other
(0.18
)
(0.11
)
(0.07
)
(0.53
)
(0.37
)
(0.16
)
Edison International
$
1.16
$
1.19
$
(0.03
)
$
4.59
$
4.52
$
0.07
Note: Diluted earnings were $1.37 and
$1.39 per share for the three months ended December 31, 2021 and
2020, respectively, and $2.00 and $1.98 per share for the twelve
months ended December 31, 2021 and 2020, respectively.
Fourth Quarter and Full-Year
Reconciliation of Basic Earnings Per Share to Core Earnings (in
millions)
Three months ended
Twelve months ended
December 31,
December 31,
(in millions)
2021
2020
Change
2021
2020
Change
Net income (loss) attributable to Edison
International
SCE
$
458
$
474
$
(16
)
$
829
$
810
$
19
Edison International Parent and Other
65
52
13
(70
)
(71
)
1
Edison International
523
526
(3
)
759
739
20
Less: Non-core items
SCE1,2,3,4,6
(49
)
(21
)
(28
)
(1,114
)
(1,015
)
(99
)
Edison International Parent and
Other3,5,7,8,9
132
96
36
132
68
64
Total non-core items
83
75
8
(982
)
(947
)
(35
)
Core earnings (losses)
SCE
507
495
12
1,943
1,825
118
Edison International Parent and Other
(67
)
(44
)
(23
)
(202
)
(139
)
(63
)
Edison International
$
440
$
451
$
(11
)
$
1,741
$
1,686
$
55
1
Includes amortization of SCE’s Wildfire
Insurance Fund expenses of $54 million ($39 million after-tax) and
$215 million ($155 million after-tax) for the quarter and
year-ended December 31, 2021, respectively and $84 million ($61
million after-tax) and $336 million ($242 million after-tax) for
the quarter and year-ended December 31, 2020, respectively.
2
Includes charges of $14 million ($10
million after-tax) and $1.2 billion ($919 million after-tax) for
the quarter and year-ended December 31, 2021, respectively and $13
million ($10 million after-tax) and $1.2 billion ($899 million
after-tax) for the quarter and year-ended December 31, 2020,
respectively for SCE's 2017/2018 Wildfire/Mudslide Events claims
and expenses, net of recoveries.
3
Includes an income tax benefit of $18
million and an income tax expense of $3 million recorded in the
first quarter of 2020 for SCE and Edison International Parent and
Other, respectively, due to re-measurement of uncertain tax
positions related to the 2010 – 2012 California state tax filings
currently under audit.
4
Includes gains of $10 million ($7 million
after-tax) recorded in the second quarter of 2021 and $70 million
($50 million after-tax) and $150 million ($108 million after-tax)
for the quarter and year-ended December 31, 2020, respectively for
SCE's sale of San Onofre nuclear fuel.
5
Includes an impairment charge of $34
million ($25 million after-tax) recorded in the second quarter of
2020 for Edison International Parent and Other related to Edison
Energy's goodwill.
6
Includes an impairment charge of $79
million ($47 million after-tax) recorded in the third quarter of
2021 related to disallowed historical capital expenditures in SCE's
2021 GRC final decision.
7
Includes an income tax benefit of $115
million for Edison International Parent and Other recorded in the
fourth quarter of 2021 related to the settlement of the 2007 – 2012
California tax audits with the California Franchise Tax Board.
8
Includes a gain of $132 million ($96
million after-tax) recorded in the fourth quarter of 2020 for
Edison International Parent and Other's sale of an investment in a
lease of a hydroelectric power plant in Vidalia, Louisiana.
9
Includes earnings of $24 million ($17
million after-tax) for Edison International Parent and Other
recorded in the fourth quarter of 2021 related to customer revenues
for EIS insurance contract.
Consolidated Statements of
Income
Edison International
Three months ended
Twelve months ended
December 31,
December 31,
(in millions, except per-share
amounts)
2021
2020
2021
2020
Total operating revenue
$
3,331
$
3,157
$
14,905
$
13,578
Purchased power and fuel
1,156
1,119
5,540
4,932
Operation and maintenance
828
724
3,645
3,609
Wildfire-related claims, net of insurance
recoveries
—
25
1,276
1,328
Wildfire Insurance Fund expense
54
84
215
336
Depreciation and amortization
561
504
2,218
1,967
Property and other taxes
109
110
465
438
Impairment and other expense (income)
2
(70
)
71
(116
)
Gain on sale of lease interest and other
operating income
—
(133
)
(2
)
(133
)
Total operating expenses
2,710
2,363
13,428
12,361
Operating income
621
794
1,477
1,217
Interest expense
(231
)
(226
)
(925
)
(902
)
Other income
42
34
237
251
Income before income taxes
432
602
789
566
Income tax (benefit) expense
(139
)
50
(136
)
(305
)
Net income
571
552
925
871
Preferred and preference stock dividend
requirements of SCE
26
26
106
132
Preferred stock dividend requirement of
Edison International
22
—
60
—
Net income attributable to Edison
International common shareholders
$
523
$
526
$
759
$
739
Basic earnings per share:
Weighted average shares of common stock
outstanding
380
378
380
373
Basic earnings per common share
attributable to Edison International common shareholders
$
1.38
$
1.39
$
2.00
$
1.98
Diluted earnings per share:
Weighted average shares of common stock
outstanding, including effect of dilutive securities
381
379
380
374
Diluted earnings per common share
attributable to Edison International common shareholders
$
1.37
$
1.39
$
2.00
$
1.98
Consolidated Balance Sheets
Edison International
December 31,
December 31,
(in millions)
2021
2020
ASSETS
Cash and cash equivalents
$
390
$
87
Receivables, less allowances of $193 and
$188 for uncollectible accounts at respective dates
1,398
1,130
Accrued unbilled revenue
794
521
Insurance receivable
—
708
Inventory
420
405
Prepaid expenses
258
281
Regulatory assets
1,778
1,314
Wildfire Insurance Fund contributions
204
323
Other current assets
249
292
Total current assets
5,491
5,061
Nuclear decommissioning trusts
4,870
4,833
Marketable securities
12
—
Other investments
39
53
Total investments
4,921
4,886
Utility property, plant and equipment,
less accumulated depreciation and amortization of $11,407 and
$10,681 at respective dates
50,497
47,653
Nonutility property, plant and equipment,
less accumulated depreciation of $98 and $94 at respective
dates
203
186
Total property, plant and
equipment
50,700
47,839
Receivables, less allowances of $116
uncollectible accounts at December 31, 2021
122
—
Regulatory assets (includes $325 at
December 31, 2021 related to Variable Interest Entities "VIEs")
7,660
7,120
Wildfire Insurance Fund contributions
2,359
2,443
Operating lease right-of-use assets
1,932
1,088
Long-term insurance receivable
75
75
Other long-term assets
1,485
860
Total long-term assets
13,633
11,586
Total assets
$
74,745
$
69,372
Consolidated Balance Sheets
Edison International
December 31,
December 31,
(in millions, except share amounts)
2021
2020
LIABILITIES AND EQUITY
Short-term debt
$
2,354
$
2,398
Current portion of long-term debt
1,077
1,029
Accounts payable
2,002
1,980
Wildfire-related claims
131
2,231
Customer deposits
193
243
Regulatory liabilities
603
569
Current portion of operating lease
liabilities
582
215
Other current liabilities
1,667
1,612
Total current liabilities
8,609
10,277
Long-term debt (Includes $314 at
December 31, 2021 related to VIEs)
24,170
19,632
Deferred income taxes and credits
5,740
5,368
Pensions and benefits
496
563
Asset retirement obligations
2,772
2,930
Regulatory liabilities
8,981
8,589
Operating lease liabilities
1,350
873
Wildfire-related claims
1,733
2,281
Other deferred credits and other long-term
liabilities
3,105
2,910
Total deferred credits and other
liabilities
24,177
23,514
Total liabilities
56,956
53,423
Commitments and contingencies
Preferred stock (50,000,000 shares
authorized; 1,250,000 shares of Series A and 750,000 shares of
Series B issued and outstanding at December 31, 2021)
1,977
—
Common stock, no par value (800,000,000
shares authorized; 380,378,145 and 378,907,147 shares issued and
outstanding at respective dates)
6,071
5,962
Accumulated other comprehensive loss
(54
)
(69
)
Retained earnings
7,894
8,155
Total Edison International's
shareholders' equity
15,888
14,048
Noncontrolling interests – preference
stock of SCE
1,901
1,901
Total equity
17,789
15,949
Total liabilities and equity
$
74,745
$
69,372
Consolidated Statements of Cash
Flows
Edison International
Year ended December 31,
(in millions)
2021
2020
2019
Cash flows from operating
activities:
Net income
$
925
$
871
$
1,405
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation and amortization
2,288
2,029
1,803
Allowance for equity during
construction
(118
)
(121
)
(101
)
Impairment and other expense (income)
71
(116
)
184
Gain on sale of lease interest and other
operating income
(2
)
(133
)
(5
)
Deferred income taxes
43
(296
)
(284
)
Wildfire Insurance Fund amortization
expense
215
336
152
Other
40
36
34
Nuclear decommissioning trusts
(256
)
(197
)
(106
)
Proceeds from Morongo Transmission LLC
400
—
—
Contributions to Wildfire Insurance
Fund
(95
)
(95
)
(2,457
)
Changes in operating assets and
liabilities:
Receivables
(514
)
(283
)
(76
)
Inventory
(21
)
(43
)
(83
)
Accounts payable
138
87
288
Tax receivables and payables
13
113
88
Other current assets and liabilities
(333
)
4
(13
)
Regulatory assets and liabilities, net
(720
)
(1,799
)
(1,278
)
Wildfire-related insurance receivable
708
932
285
Wildfire-related claims
(2,648
)
(56
)
(101
)
Other noncurrent assets and
liabilities
(123
)
(6
)
(42
)
Net cash provided by (used in)
operating activities
11
1,263
(307
)
Cash flows from financing
activities:
Long-term debt issued or remarketed, plus
premium and net of discount and issuance costs of $(43), $23 and
$(4) for the respective years
5,412
3,073
3,696
Long-term debt repaid or repurchased
(1,037
)
(1,099
)
(82
)
Short-term debt issued
2,654
2,994
1,750
Short-term debt repaid
(2,255
)
(1,126
)
(1,750
)
Common stock issued
32
912
2,391
Preferred stock issued, net
1,977
—
—
Preferred and preference stock
redeemed
—
(308
)
—
Commercial paper (repayments) borrowing,
net
(254
)
304
(172
)
Dividends and distribution to
noncontrolling interests
(106
)
(118
)
(121
)
Common stock dividends paid
(988
)
(928
)
(810
)
Preferred stock dividends paid
(35
)
—
—
Other
45
23
1
Net cash provided by financing
activities
5,445
3,727
4,903
Cash flows from investing
activities:
Capital expenditures
(5,505
)
(5,484
)
(4,877
)
Proceeds from sale of nuclear
decommissioning trust investments
3,961
5,927
4,389
Purchases of nuclear decommissioning trust
investments
(3,705
)
(5,730
)
(4,283
)
Other
98
316
93
Net cash used in investing
activities
(5,151
)
(4,971
)
(4,678
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
305
19
(82
)
Cash, cash equivalents and restricted cash
at beginning of year
89
70
152
Cash, cash equivalents and restricted
cash at end of year
$
394
$
89
$
70
View source
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