Investor relations contact: Sam Ramraj, (626) 302-2540
Media relations contact: Charles Coleman, (626) 302-7982
ROSEMEAD, Calif., May 1, 2018 - Edison International (NYSE: EIX) today reported first quarter 2018 net income of $218 million, or $0.67 per share, compared to net income of $362 million, or $1.11 per share, in the first quarter 2017. As adjusted, first quarter 2018 core earnings were $262 million, or $0.80 per share. There were no non-core items in the first quarter 2017.
Southern California Edison (SCE) is awaiting a proposed decision from the California Public Utilities Commission (CPUC) on its 2018 General Rate Case (GRC). Consequently, during the first quarter of 2018, SCE recognized revenue from CPUC activities largely based on 2017 authorized base revenue requirements included in customer rates with reserves taken for known items including the July 2017 cost of capital decision and the Tax Cuts and Jobs Act (Tax Reform). The revenue requirement ultimately adopted by the CPUC will be retroactive to January 1, 2018. SCE's first quarter 2018 earnings decreased by $63 million, or $0.19 per share, from the first quarter 2017. The decrease in earnings resulted from the impact of the July 2017 cost of capital decision on the GRC revenue, higher operation and maintenance expenses and higher net financing costs.
Edison International Parent and Other’s first quarter 2018 losses from continuing operations increased by $81 million, or $0.25 per share, compared to first quarter 2017, consisting of $37 million, or $0.12 per share, of higher core losses and $44 million, or $0.13 per share, of higher non-core losses. The increase in core losses was due to lower income tax benefits related to stock option exercises and the impact of Tax Reform on pre-tax losses. Higher non-core losses of $44 million, or $0.13 per share, were primarily related to a $66 million ($48 million after-tax), or $0.15 per share, impairment and other charges resulting from Edison International's agreement to sell SoCore Energy to a third party. The net assets of SoCore Energy were recorded at fair value, less expected transaction costs. There were no Edison International Parent and Other non-core items in the first quarter 2017 results.
"We continue to make long-term investments to operate a safe and reliable grid and to support the State’s clean energy policies,” said Pedro Pizarro, president and chief executive officer of Edison International. “Furthermore, we continue to focus our efforts on addressing the issue of climate change impacts, including the risk of wildfires. We are awaiting a decision on our 2018 General Rate Case and, until then, our comparative results are not meaningful.”
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.
2018 Earnings Guidance
Edison International will provide 2018 earnings guidance after a final decision has been issued by the CPUC on the Southern California Edison 2018 GRC. This is consistent with the company's past communication and its practice of not providing earnings guidance prior to a decision on its GRC. See the presentation accompanying the company’s conference call for further information.
About Edison International
Edison International (NYSE:EIX), through its subsidiaries, is a generator and distributor of electric power, as well as a provider of energy services and technologies, including renewable energy. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities. Edison International is also the parent company of Edison Energy, a portfolio of competitive businesses that provide commercial and industrial customers with energy management and procurement services. Edison Energy is independent from Southern California Edison.