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

ROSEMEAD, Calif., July 25, 2019 - Edison International (NYSE: EIX) today reported second quarter 2019 net income of $392 million, or $1.20 per share, compared to net income of $276 million, or $0.85 per share, in the second quarter 2018. As adjusted, second quarter 2019 core earnings were $515 million, or $1.58 per share, compared to core earnings of $274 million, or $0.85 per share, in the second quarter 2018.

SCE's second quarter 2019 earnings increased by $122 million, or $0.37 per share, from the second quarter 2018, consisting of $245 million, or $0.75 per share, of higher core earnings and $123 million, or $0.38 per share, of higher non-core losses. The increase in core earnings was primarily due to adoption of the 2018 General Rate Case (GRC) final decision in the second quarter 2019, the timing of regulatory deferrals related to wildfire insurance and wildfire mitigation costs and higher revenue due to a change in estimate under the FERC formula rate mechanism. The higher non-core losses for the second quarter 2019 were mainly related to the $170 million ($123 million after-tax), or $0.38 per share, impairment charge resulting from the disallowance of certain historical capital expenditures in SCE's 2018 GRC final decision.

Edison International Parent and Other’s second quarter 2019 loss from continuing operations increased by $6 million, or $0.02 per share, compared to second quarter 2018, consisting of $4 million, or $0.02 per share, of higher core losses and $2 million of higher non-core losses. The higher core losses were primarily due to higher interest expense as a result of increased borrowings.

“The increase in core earnings in the second quarter 2019 was primarily due to the adoption of the 2018 GRC final decision, the timing of regulatory deferrals related to wildfire insurance and mitigation costs,” said Pedro J. Pizarro, president and chief executive officer of Edison International. “We remain committed to improving our wildfire risk profile through enhanced operational capabilities, while continuing to make significant investments in grid hardening and resiliency, as well as other capital programs that support California’s energy goals.”

Pizarro added, “On the legislative front, SCE appreciates the significant leadership that Governor Newsom and the legislature have shown and their willingness to act with urgency to address this wildfire crisis through the passage of Assembly Bill 1054 and companion measures. We supported passage of these bills, which improve the current regulatory framework. The state must ensure careful implementation and make some refinements in the future to ensure their success; we will work hard to see those changes made.”

Year-to-Date Earnings

For the six months ended June 30, 2019, Edison International reported net income of $670 million, or $2.05 per share, compared to $494 million, or $1.52 per share, during the same period in 2018. As adjusted, Edison International’s core earnings were $721 million, or $2.21 per share, compared to $536 million, or $1.65 per share, in the year-to-date period in 2018.

SCE's year-to-date 2019 earnings increased by $129 million, or $0.39 per share, from the same period prior year, consisting of $180 million, or $0.55 per share, of higher core earnings and $51 million, or $0.16 per share, of higher non-core losses. The increase in core earnings was primarily due to the adoption of the 2018 GRC final decision in the second quarter 2019, the timing of regulatory deferrals and cost recovery of wildfire insurance costs and higher revenue due to a change in estimate under the FERC formula rate mechanism, partially offset by higher wildfire mitigation costs in 2019. Higher non-core losses were mainly related to the $170 million ($123 million after-tax), or $0.38 per share, impairment charge resulting from the disallowance of certain historical capital expenditures in SCE's 2018 GRC final decision recorded in the second quarter 2019, offset by $69 million, or $0.21 per share, of income tax benefits related to changes in the allocation of deferred tax re-measurement between customers and shareholders as a result of a CPUC resolution issued in February 2019.

Edison International Parent and Other’s year-to-date 2019 losses from continuing operations decreased by $47 million, or $0.14 per share, compared to the same period in 2018, consisting of $5 million, or $0.01 per share, of lower core losses and $42 million, or $0.13 per share, of lower non-core losses. The lower core losses were primarily due to lower corporate and operating expenses and lower losses at the competitive business under Edison Energy Group, partially offset by higher interest expense. The decrease in non-core losses primarily related to the absence of the loss recorded in connection with the sale of SoCore Energy in April 2018.

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.

Wildfire Insurance Fund

Today, SCE notified the California Public Utilities Commission (CPUC) of its commitment to make its initial and annual contributions to the wildfire insurance fund. SCE will make its initial contribution of approximately $2.4 billion to the wildfire insurance fund by September 10, 2019 and its annual contributions of approximately $95 million on each January 1 for the subsequent 10 years. Edison International has evaluated a range of potential funding options to efficiently finance this contribution. See the presentation accompanying the company’s conference call for further information including key financing assumptions.

2019 Earnings Guidance

The company lowered its earnings guidance for 2019 as summarized in the following chart due to the increased financing needs at both Edison International and SCE related to the initial contribution to the wildfire insurance fund. See the presentation accompanying the company’s conference call for further information including key guidance assumptions.

 

2019 Earnings Guidance
  2019 Earnings Guidance
as of May 28, 2019		 2019 Earnings Guidance
as of July 25, 2019
  Low Mid High Low Mid High
EIX Basic EPS $4.57 $4.67 $4.77 $4.46 $4.56 $4.66
Less: Non-core Items* (0.15) (0.15) (0.15) (0.15) (0.15) (0.15)
EIX Core EPS $4.72 $4.82 $4.92 $4.61 $4.71 $4.81

* There were ($51) million, or ($0.15) per share of non-core items recorded for the six months ended June 30, 2019, calculated based on an assumed weighted average share count for 2019.

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 Second Quarter and Year-to-Date 2019 Results