- Third-quarter 2024 GAAP EPS of $1.33; Core EPS of $1.51
- Significant progress in resolving legacy wildfires: Settlement
agreement reached on TKM; cost recovery application on Woolsey Fire
filed with CPUC
- Narrows 2024 core EPS guidance to $4.80-$5.00
- Reiterates long-term core EPS growth rate targets of 5%-7% for
2021-2025 and 5%-7% for 2025-2028
Edison International (NYSE: EIX) today reported third-quarter
net income of $516 million, or $1.33 per share, compared to net
income of $155 million, or $0.40 per share, in the third quarter of
last year. As adjusted, third-quarter core earnings were $582
million, or $1.51 per share, compared to core earnings of $531
million, or $1.38 per share, in the third quarter of last year.
Southern California Edison’s third-quarter 2024 core earnings
per share (EPS) increased year over year, primarily due to higher
revenue authorized in Track 4 of SCE’s 2021 General Rate Case and
an increase in the authorized rate of return resulting from the
cost of capital adjustment mechanism. This was partially offset by
higher interest expense.
Edison International Parent and Other’s third quarter core loss
per share was in line with the same period last year.
“With strong year-to-date performance, we are confident in
narrowing our 2024 core EPS guidance,” said Pedro J. Pizarro,
president and CEO of Edison International. “Our team has achieved
remarkable success over the last several years managing
unprecedented climate challenges, making our operations more
resilient and positioning us strongly for the growth ahead.”
Pizarro added, “SCE continues to demonstrate its ability to
navigate the regulatory landscape and is in the final stages of two
key proceedings, which will solidify our financial outlook through
2028. Capital investment enabled by SCE’s General Rate Case is the
driver for the growth and customer benefits necessary to ensure the
grid is reliable, resilient and ready to achieve the clean energy
transition.”
Edison International uses core earnings internally for financial
planning and analysis of performance. Core earnings are also used
when communicating with investors and analysts regarding Edison
International’s earnings results to facilitate comparisons of the
company’s performance from period to period. Please see the
attached tables to reconcile core earnings to basic GAAP
earnings.
2024 Earnings Guidance
The company narrowed its earnings guidance range for 2024 as
summarized in the following chart. See the presentation
accompanying the company’s conference call for further information
and assumptions.
2024 Earnings Guidance
2024 Earnings Guidance
as of July 25, 2024
as of Oct. 29, 2024
Low
High
Low
High
EIX Basic EPS
$
3.49
$
3.79
$
3.37
$
3.57
Less: Non-core Items*
(1.26
)
(1.26
)
(1.43
)
(1.43
)
EIX Core EPS
$
4.75
$
5.05
$
4.80
$
5.00
* There were ($551) million, or ($1.43) per share, of non-core
items recorded for the nine months ending Sept. 30, 2024. Basic EIX
EPS guidance only incorporates non-core items to Sept. 30,
2024.
Third-Quarter 2024 Earnings Conference
Call and Webcast Details
When:
Tuesday, Oct. 29, 1:30-2:30 p.m. (PDT)
Telephone Numbers:
1-888-673-9780 (U.S.) and 1-312-470-0178
(Int'l) — Passcode: Edison
Telephone Replay:
1-800-685-6667 (U.S.) and 1-203-369-3864
(Int’l) — Passcode: 9413
Telephone replay available through Nov. 11
at 6 p.m. (PST)
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-Q 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, focused on 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 delivering electricity to 15 million people
across Southern, Central and Coastal California. Edison
International is also the parent company of Trio (formerly Edison
Energy), a portfolio of nonregulated competitive businesses
providing integrated sustainability and energy advisory services to
large commercial, industrial and institutional organizations in
North America and Europe.
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 release 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 release, 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,
timely or at all, including uninsured wildfire-related and debris
flow-related costs (including amounts paid for self-insured
retention and co-insurance), costs incurred to mitigate the risk of
utility equipment causing future wildfires, and increased costs due
to supply chain constraints, inflation and rising interest
rates;
- impact of affordability of customer rates on SCE's ability to
execute its strategy, including the impact of affordability on the
regulatory approval of operations and maintenance expenses, and
proposed capital investment projects;
- ability of SCE to implement its operational and strategic
plans, including its Wildfire Mitigation Plan and capital
investment program;
- risks of regulatory or legislative restrictions that would
limit SCE's ability to implement operational measures to mitigate
wildfire risk, including Public Safety Power Shutoff (“PSPS”) and
fast curve settings, when conditions warrant or would otherwise
limit SCE's operational practices relative to wildfire risk
mitigation;
- ability of SCE to obtain safety certifications from the Office
of Energy Infrastructure Safety of the California Natural Resources
Agency (“OEIS”);
- risk 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 California Public Utilities Commission
(“CPUC”) interpretation of and actions under AB 1054, including its
interpretation of the prudency standard clarified by AB 1054;
- 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;
- 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;
- 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 CPUC, the Federal Energy
Regulatory Commission, and the United States Nuclear Regulatory
Commission and other governmental authorities, including decisions
and actions related to nationwide or statewide crisis, approval of
regulatory proceeding settlements, 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;
- potential for penalties or disallowances for non-compliance
with applicable laws and regulations, including fines, penalties
and disallowances related to wildfires where SCE's equipment is
alleged to be associated with ignition;
- extreme weather-related incidents (including events caused, or
exacerbated, by climate change, such as wildfires, debris flows,
flooding, droughts, high wind events and extreme heat events) and
other natural disasters (such as earthquakes), which could cause,
among other things, worker and public safety issues, property
damage, rotating outages and other operational issues (such as
issues due to damaged infrastructure), PSPS activations and
unanticipated costs;
- cost and availability of labor, equipment and materials,
including as a result of supply chain constraints and
inflation;
- 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 and other radioactive material, delays,
contractual disputes, and cost overruns;
- 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, contractor
performance, changes in the California Independent System
Operator’s transmission plans, and governmental approvals; and
- actions by credit rating agencies to downgrade Edison
International or SCE’s credit ratings or to place those ratings on
negative watch or negative outlook.
Additional information about risks and uncertainties is
contained in Edison International and SCE’s most recent combined
Annual Report on Form 10-K for the year ended December 31, 2023,
and subsequent Quarterly Report(s) on Form 10-Q filed with the
Securities and Exchange commission, including the "Risk Factors"
sections. Readers are urged to read this entire release as well as
the most recent Form 10-K and Form 10-Q (including information
incorporated by reference), 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 titled "Presentations
and Updates" 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.
Third Quarter Reconciliation
of Basic Earnings Per Share to Core Earnings Per Share
Three months ended
Nine months ended
September 30,
September 30,
2024
2023
Change
2024
2023
Change
Earnings (loss) per share available to
Edison International
SCE
$
1.56
$
0.62
$
0.94
$
3.09
$
2.69
$
0.40
Edison International Parent and Other
(0.23
)
(0.22
)
(0.01
)
(0.64
)
(0.55
)
(0.09
)
Edison International
1.33
0.40
0.93
2.45
2.14
0.31
Less: Non-core items
SCE
(0.18
)
(0.98
)
0.80
(1.43
)
(1.43
)
-
Edison International Parent and Other
—
—
—
—
0.09
(0.09
)
Total non-core items
(0.18
)
(0.98
)
0.80
(1.43
)
(1.34
)
(0.09
)
Core earnings (loss) per share
SCE
1.74
1.60
0.14
4.52
4.12
0.40
Edison International Parent and Other
(0.23
)
(0.22
)
(0.01
)
(0.64
)
(0.64
)
—
Edison International
$
1.51
$
1.38
$
0.13
$
3.88
$
3.48
$
0.40
Note: Diluted earnings were $1.32 and $0.40 per share for the
three months ended September 30, 2024 and 2023, respectively.
Diluted earnings were $2.44 and $2.13 per share for the nine months
ended September 30, 2024 and 2023, respectively.
Third Quarter Reconciliation
of Basic Earnings Per Share to Core Earnings (in millions)
Three months ended
Nine months ended
September 30,
September 30,
(in millions)
2024
2023
Change
2024
2023
Change
Net income (loss) available to Edison
International
SCE
$
602
$
239
$
363
$
1,190
$
1,029
$
161
Edison International Parent and Other
(86
)
(84
)
(2
)
(246
)
(210
)
(36
)
Edison International
516
155
361
944
819
125
Less: Non-core items
SCE1,2,3,4,5,6,7
(65
)
(374
)
309
(549
)
(549
)
—
Edison International Parent and Other8
(1
)
(2
)
1
(2
)
33
(35
)
Total non-core items
(66
)
(376
)
310
(551
)
(516
)
(35
)
Core earnings (loss)
SCE
667
613
54
1,739
1,578
161
Edison International Parent and Other
(85
)
(82
)
(3
)
(244
)
(243
)
(1
)
Edison International
$
582
$
531
$
51
$
1,495
$
1,335
$
160
1
Includes charges for 2017/2018
Wildfire/Mudslide Events claims and related legal expenses, net of
expected FERC recoveries of $7 million ($5 million after-tax) and
$459 million ($330 million after-tax) for the three months ended
September 30, 2024 and 2023, respectively, and $485 million ($349
million after-tax) and $560 million ($404 million after-tax) for
the nine months ended September 30, 2024 and 2023,
respectively.
2
Includes charges for Other
Wildfires claims and related legal expenses, net of expected
insurance and regulatory recoveries of $3 million ($2 million
after-tax) and $7 million ($5 million after-tax) for the three
months ended September 30, 2024 and 2023, respectively, and $124
million ($90 million after-tax) and $7 million ($5 million
after-tax) for the nine months ended September 30, 2024 and 2023,
respectively.
3
Includes amortization of SCE's
Wildfire Insurance Fund expenses of $36 million ($26 million
after-tax) and $54 million ($39 million after-tax) for the three
months ended September 30, 2024 and 2023, respectively, and $109
million ($78 million after-tax) and $159 million ($114 million
after-tax) for the nine months ended September 30, 2024 and 2023,
respectively.
4
Severance costs of $44 million
($32 million after-tax), net of expected FERC recovery, recorded in
the third quarter of 2024 due to current and probable reductions in
workforce.
5
Includes a charge of $30 million
($21 million after-tax) for a disallowance related to the 2021
NDCTP for the nine months ended September 30, 2023.
6
Includes an insurance recovery of
$10 million ($7 million after-tax) related to settlement of an
employment litigation matter for the nine months ended September
30, 2023.
7
Includes a charge of $17 million
($12 million after-tax) related to customer cancellations of
certain ECS data services for the nine months ended September 30,
2023.
8
Includes expected wildfire claims
of $(1) million ($(1) million after-tax) and $(3) million ($(2)
million after-tax) insured by EIS for the three months ended
September 30, 2024 and 2023, respectively, and expected wildfire
claims of $(2) million ($(2) million after-tax) insured by EIS and
net earnings of $42 million ($33 million after-tax) related to
customer revenues for an EIS insurance contract offset by expected
wildfire claims insured by EIS for the nine months ended September
30, 2024 and 2023, respectively.
Consolidated Statements of
Income
Edison International
Three months ended
Nine months ended
September 30,
September 30,
(in millions, except per-share
amounts)
2024
2023
2024
2023
Operating revenue
$
5,201
$
4,702
$
13,615
$
12,632
Purchased power and fuel
1,898
1,988
4,140
4,453
Operation and maintenance
1,393
882
3,995
3,207
Wildfire-related claims, net of insurance
recoveries
1
482
616
578
Wildfire Insurance Fund expense
36
54
109
159
Depreciation and amortization
710
665
2,138
1,971
Property and other taxes
168
139
477
428
Total operating expenses
4,206
4,210
11,475
10,796
Operating income
995
492
2,140
1,836
Interest expense
(477
)
(433
)
(1,401
)
(1,186
)
Other income, net
127
130
413
377
Income before income taxes
645
189
1,152
1,027
Income tax expense (benefit)
68
(23
)
14
41
Net income
577
212
1,138
986
Less: Net income attributable to
noncontrolling interests - preference stock of SCE
39
30
129
88
Preferred stock dividend requirements of
Edison International
22
27
65
79
Net income available to Edison
International common shareholders
$
516
155
$
944
819
Basic earnings per share:
Weighted average shares of common stock
outstanding
387
383
386
383
Basic earnings per common share
available to Edison International common shareholders
$
1.33
0.40
$
2.45
$
2.14
Diluted earnings per share:
Weighted average shares of common stock
outstanding, including effect of dilutive securities
390
385
388
385
Diluted earnings per common share
available to Edison International common shareholders
$
1.32
0.40
$
2.44
$
2.13
Consolidated Balance Sheets
Edison International
September 30,
December 31,
(in millions)
2024
2023
ASSETS
Cash and cash equivalents
$
200
$
345
Receivables, less allowances of $341 and
$360 for uncollectible accounts at respective dates
2,780
2,016
Accrued unbilled revenue
1,202
742
Inventory
533
527
Prepaid expenses
104
112
Regulatory assets
2,168
2,524
Wildfire Insurance Fund contributions
138
204
Other current assets
319
341
Total current assets
7,444
6,811
Nuclear decommissioning trusts
4,424
4,173
Other investments
50
54
Total investments
4,474
4,227
Utility property, plant and equipment,
less accumulated depreciation and amortization of $13,833 and
$12,910 at respective dates
58,092
55,877
Nonutility property, plant and equipment,
less accumulated depreciation of $122 and $114 at respective
dates
206
207
Total property, plant and
equipment
58,298
56,084
Regulatory assets (include $1,524 and
$1,558 related to a Variable Interest Entity "VIE" at respective
dates)
8,660
8,897
Wildfire Insurance Fund contributions
1,913
1,951
Operating lease right-of-use assets
1,180
1,221
Long-term insurance receivables
386
501
Other long-term assets
2,394
2,066
Total long-term assets
14,533
14,636
Total assets
$
84,749
$
81,758
Consolidated Balance Sheets
Edison International
September 30,
December 31,
(in millions, except share amounts)
2024
2023
LIABILITIES AND EQUITY
Short-term debt
$
568
$
1,077
Current portion of long-term debt
2,548
2,697
Accounts payable
2,185
1,983
Wildfire-related claims
39
30
Customer deposits
452
390
Regulatory liabilities
874
763
Current portion of operating lease
liabilities
124
120
Other current liabilities
1,717
1,538
Total current liabilities
8,507
8,598
Long-term debt (include $1,492 and
$1,515 related to VIEs at respective dates)
32,303
30,316
Deferred income taxes and credits
6,967
6,672
Pensions and benefits
403
415
Asset retirement obligations
2,531
2,666
Regulatory liabilities
10,310
9,420
Operating lease liabilities
1,056
1,101
Wildfire-related claims
1,055
1,368
Other deferred credits and other long-term
liabilities
3,510
3,258
Total deferred credits and other
liabilities
25,832
24,900
Total liabilities
66,642
63,814
Preferred stock (50,000,000 shares
authorized; 1,159,317 and 1,159,317 shares of Series A and 503,454
and 532,454 shares of Series B issued and outstanding at respective
dates)
1,645
1,673
Common stock, no par value (800,000,000
shares authorized; 387,148,995 and 383,924,912 shares issued and
outstanding at respective dates)
6,538
6,338
Accumulated other comprehensive loss
(6
)
(9
)
Retained earnings
7,486
7,499
Total Edison International's
shareholders' equity
15,663
15,501
Noncontrolling interests – preference
stock of SCE
2,444
2,443
Total equity
18,107
17,944
Total liabilities and equity
$
84,749
$
81,758
Consolidated Statements of Cash
Flows
Edison International
Nine months ended September
30,
(in millions)
2024
2023
Cash flows from operating
activities:
Net income
$
1,138
$
986
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation and amortization
2,183
2,034
Allowance for equity during
construction
(143
)
(116
)
Deferred income taxes
53
Wildfire Insurance Fund amortization
expense
109
159
Other
43
32
Nuclear decommissioning trusts
(118
)
(94
)
Changes in operating assets and
liabilities:
Receivables
(847
)
(692
)
Inventory
(9
)
(40
)
Accounts payable
336
(186
)
Tax receivables and payables
198
127
Other current assets and liabilities
(492
)
(214
)
Derivative assets and liabilities, net
(2
)
(139
)
Regulatory assets and liabilities, net
1,557
705
Wildfire-related insurance receivable
115
(84
)
Wildfire-related claims
(304
)
(75
)
Other noncurrent assets and
liabilities
122
90
Net cash provided by operating
activities
3,844
2,546
Cash flows from financing
activities:
Long-term debt issued, net of discount and
issuance costs of $37 and $48 for the respective periods
4,713
4,678
Long-term debt repaid
(2,176
)
(1,867
)
Short-term debt issued
—
851
Short-term debt repaid
(401
)
(1,944
)
Common stock issued
12
16
Preferred and preference stock issued, net
of issuance cost
345
—
Preferred and preference stock repurchased
or redeemed
(378
)
—
Commercial paper (repyaments), borrowing,
net
(817
)
74
Dividends and distribution to
noncontrolling interests
(130
)
(87
)
Common stock dividends paid
(896
)
(833
)
Preferred stock dividends paid
(88
)
(105
)
Other
180
97
Net cash provided by financing
activities
364
880
Cash flows from investing
activities:
Capital expenditures
(4,211
)
(3,991
)
Proceeds from sale of nuclear
decommissioning trust investments
3,558
3,223
Purchases of nuclear decommissioning trust
investments
(3,488
)
(3,129
)
Other
44
3
Net cash used in investing
activities
(4,097
)
(3,894
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
111
(468
)
Cash, cash equivalents and restricted cash
at beginning of period
532
917
Cash, cash equivalents and restricted
cash at end of period
$
643
$
449
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241029141311/en/
Investor Relations: Sam Ramraj, (626) 302-2540 Media Relations:
(626) 302-2255 News@sce.com
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