Edison International Reports Second Quarter 2018 Results

July 26, 2018

Investor relations contact: Sam Ramraj, (626) 302-2540
Media relations contact:  Charles Coleman, (626) 302-7982

ROSEMEAD, Calif., July 26, 2018 - Edison International (NYSE: EIX) today reported second quarter 2018 net income of $276 million, or $0.85 per share, compared to net income of $278 million, or $0.85 per share, in the second quarter 2017. As adjusted, second quarter 2018 core earnings were $274 million, or $0.85 per share. There were no non-core items in the second 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 second 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 second quarter 2018 earnings decreased by $10 million, or $0.03 per share, from the second quarter 2017. The decrease in earnings resulted from higher operation and maintenance expenses related to wildfire insurance and higher net financing costs, partially offset by higher revenue.  Revenue increased in 2018 due to a refund to customers for prior overcollections recorded in the second quarter 2017.

Edison International Parent and Other’s second quarter 2018 losses from continuing operations decreased by $8 million, or $0.03 per share, compared to second quarter 2017, consisting of $6 million, or $0.03 per share, of lower core losses and $2 million of higher non-core income. The decrease in core losses was due to the absence of a goodwill impairment recorded during 2017 and lower corporate expenses, partially offset by the impact of Tax Reform on pre-tax losses and tax benefits recorded in 2017 related to the settlement of 2007-2012 federal income tax audits. The higher non-core income for the second quarter 2018 primarily related to the sale of SoCore Energy. There were no Edison International Parent and Other non-core items in the second quarter 2017 results.

"We continue our efforts along multiple paths to resolve wildfire-related issues," said Pedro Pizarro, president and chief executive officer of Edison International. "Additionally, we are successfully moving forward on regulatory initiatives that we believe are necessary to meet the 2030 climate goals set forth by California. Our company remains focused on improving our safety culture and broader operational excellence, and on delivering solutions to be a key enabler of our State’s long-term policy vision. We are awaiting a decision on our 2018 General Rate Case and, until then, our comparative results are not meaningful."

Year-to-Date Earnings

For the six months ended June 30, 2018, Edison International reported net income of $494 million, or $1.52 per share, compared to $640 million, or $1.96 per share, during the same period in 2017. Edison International’s core earnings were $536 million, or $1.65 per share, compared to $639 million, or $1.96 per share, in the year-to-date period in 2017.

SCE is awaiting a proposed decision from the CPUC on its 2018 GRC. Consequently, during the first half 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 Tax Reform. SCE's year-to-date 2018 earnings decreased by $73 million, or $0.22 per share, from the same period prior year. The decrease in earnings resulted from higher operation and maintenance expenses related to wildfire insurance and increased line clearing activity, and higher net financing costs, partially offset by higher revenue. Revenue increased in 2018 due to a refund to customers for prior overcollections recorded in the second quarter of 2017.

Edison International Parent and Other’s year-to-date 2018 losses from continuing operations increased by $73 million, or $0.22 per share, compared to the same period in 2017, consisting of $30 million, or $0.09 per share, of higher core losses and $43 million, or $0.13 per share, of higher non-core losses. The increase in core losses was due to tax benefits recorded in 2017 related to stock option exercises and the settlement of 2007-2012 federal income tax audits along with the impact of Tax Reform on pre-tax losses, partially offset by a goodwill impairment recorded during 2017 and lower corporate expenses in 2018. The increase in non-core losses primarily consisted of the impact of the sale of SoCore Energy.

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.
 

Edison International Reports Second Quarter 2018 Results

Appendix and Summary Financial Schedules

Topics: Investor Relations