Edison International Reports First Quarter 2020 Results

April 30, 2020

Investor relations contact:
Sam Ramraj, (626) 302-2540

Media relations contact:
Ron Gales, (626) 302-7927

ROSEMEAD, Calif., April 30, 2020 - Edison International (NYSE: EIX) today reported first quarter 2020 net income of $183 million, or $0.50 per share, compared to net income of $278 million, or $0.85 per share, in the first quarter 2019. As adjusted, first quarter 2020 core earnings were $228 million, or $0.63 per share, compared to core earnings of $206 million, or $0.63 per share, in the first quarter 2019.

Southern California Edison's (SCE) first quarter 2020 net income of $219 million, or $0.60 per share, was lower compared to net income of $293 million, or $0.90 per share, in the first quarter 2019. SCE's first quarter 2020 earnings per share (EPS) decreased by $0.30 from the prior year period, consisting of $0.04 of higher core EPS and $0.34 of higher non-core loss per share. Higher core EPS was primarily due to timing of the receipt of the 2018 General Rate Case (GRC) final decision in the second quarter of 2019 and higher Federal Energy Regulatory Commission (FERC) revenue, partially offset by the increase in shares outstanding and higher operation and maintenance expenses, primarily from higher vegetation management expenses.

SCE's higher non-core loss per share was mainly attributable to the absence of $69 million, or $0.21 per share, of income tax benefits recorded in the first quarter 2019 related to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution, and an after-tax expense recorded in 2020 of $60 million, or $0.17 per share, from the amortization of SCE's contributions to the Wildfire Insurance Fund. These were partially offset by an income tax benefit of $18 million, or $0.05 per share, recorded in 2020 due to re-measurement of uncertain tax positions related to the 2010-2012 California state tax filings currently under audit.

Edison International Parent and Other's first quarter 2020 net loss of $36 million, or $0.10 loss per share, was higher than a net loss of $15 million, or $0.05 loss per share, reported in the first quarter 2019. Edison International Parent and Other’s first quarter 2020 loss per share increased by $0.05 compared to first quarter 2019, consisting of $0.04 of higher core loss per share and $0.01 of higher non-core loss per share. Higher core loss per share was primarily due to higher interest expense, partially offset by the increase in shares outstanding. The higher non-core loss per share was mainly related to income tax expense of $3 million, or $0.01 loss per share, recorded in 2020 due to re-measurement of uncertain tax positions related to the 2010-2012 California state tax filings currently under audit.

“Edison International remains focused on supporting our customers and our communities impacted by COVID-19. We also are focused on ensuring the safety and health of our employees and providing them with the resources necessary to maintain critical operations,” said Pedro J. Pizarro, president and chief executive officer of Edison International. “We continue to perform critical work related to public safety and reliability, while deferring non-critical outages when our communities are staying at home.”

Pizarro added, “Additionally, SCE continues to make significant progress to mitigate wildfire risk through hardening infrastructure, bolstering situational awareness capabilities and enhancing operational practices, while implementing enhanced data analytics and technology. We are executing these programs as expeditiously as possible as they are critical to ensuring the safety of our communities and are viewed as essential by the State.”

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.

2020 Earnings Guidance

The company reaffirmed its earnings guidance range for 2020 as summarized in the following chart. See the presentation accompanying the company’s conference call for further information including key guidance assumptions.

2020 Earnings Guidance

 

2020 Earnings Guidance
as of February 27, 2020

 

2020 Earnings Guidance
as of April 30, 2020

 

Low

Mid

High

 

Low

High

EIX Basic EPS

$4.32

$4.47

$4.62

 

$4.19

$4.49

Less: Non-core Items*

-

-

-

 

(0.13)

(0.13)

EIX Core EPS

$4.32

$4.47

$4.62

 

$4.32

$4.62

 

* There were ($45) million, or ($0.13) per share of non-core items recorded for the three months ended March 31, 2020, calculated based on an assumed weighted average share count for 2020 which was originally provided on February 27, 2020.

First Quarter 2020 Earnings Conference Call Materials

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.

Reminder:  Edison International Will Hold a Conference Call Today

When:  
Thursday, April 30, 2020, 1:30 p.m. (Pacific Time)

Telephone Numbers:     
1-888-673-9780 (US) and 1-312-470-0178 (Int'l) - Passcode: Edison

Telephone Replay:         
1-866-397-8265 (US) and 1-203-369-0540 (Int’l) - Passcode: 5284
Telephone replay available through May 15, 2020

Webcast:
www.edisoninvestor.com

About Edison International

Edison International (NYSE: EIX), through its subsidiaries, is a distributor and generator 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.

Appendix and Summary Financial Schedules

Edison International Reports First Quarter 2020 Results

Topics: Investor Relations