Investor relations contact:
Sam Ramraj, (626) 302-2540
Media relations contact:
Jeff Monford, (626) 476-8120
ROSEMEAD, Calif., July 28, 2020 — Edison International (NYSE: EIX) today reported second quarter 2020 net income of $318 million, or $0.85 per share, compared to net income of $392 million, or $1.20 per share, in the second quarter 2019. As adjusted, second quarter 2020 core earnings were $375 million, or $1.00 per share, compared to core earnings of $515 million, or $1.58 per share, in the second quarter 2019.
Southern California Edison's (SCE) second quarter 2020 earnings per share (EPS) decreased by $0.26 from the prior year period, consisting of lower core EPS of $0.56 and lower non-core loss per share of $0.30. Lower core EPS was primarily due to the increase in shares outstanding related to the equity offerings in July 2019 and May 2020, the adoption of the 2018 GRC decision in the second quarter of 2019, and the timing of O&M expenses, partially offset by higher CPUC-related revenue due to the escalation mechanism as set forth in the 2018 GRC decision.
SCE's lower non-core loss per share was mainly attributable to the absence of $0.38 of disallowed historical capital expenditures in SCE's 2018 GRC decision recorded in the second quarter 2019, and a charge recorded in 2020 of $0.16 from the amortization of SCE's contributions to the Wildfire Insurance Fund. These were partially offset by a gain of $0.10 recorded in 2020 for SCE's sale of San Onofre nuclear fuel.
Edison International Parent and Other's second quarter 2020 loss per share increased by $0.09 compared to second quarter 2019, consisting of higher core loss per share of $0.02 and higher non-core loss per share of $0.07. The 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 a goodwill impairment charge recorded in 2020 related to Edison Energy stemming from the economic impact of COVID-19.
“We are confident in our 2020 earnings guidance, although the timing of operations and maintenance expenses and deferrals of certain wildfire-related costs negatively impacted our core earnings per share for the quarter. These comparisons should improve in the second half of the year,” said Pedro J. Pizarro, president and chief executive officer of Edison International. “I am proud of our team’s steadfast performance during this COVID-19 pandemic, focusing on practices to ensure the safety and health of employees and critical operations for customers’ benefit, including those laid out in SCE’s 2020–2022 Wildfire Mitigation Plan.”
Pizarro added, “While we anticipate another active fire season, SCE is entering this period better prepared than ever. In addition to advancing wildfire mitigation measures, the company has made improvements to Public Safety Power Shutoff, or PSPS, protocols since last year which we expect will reduce the number of customers affected by 30% under the same conditions as last year.”
Year-to-Date Earnings
For the six months ended June 30, 2020, Edison International reported net income of $501 million, or $1.37 per share, compared to $670 million, or $2.05 per share, during the same period in 2019. As adjusted, Edison International's core earnings were $603 million, or $1.65 per share, compared to $721 million, or $2.21 per share, in the year-to-date period in 2019.
SCE's year-to-date 2020 EPS decreased $0.54 from the same period prior year, consisting of lower core EPS of $0.50 per share and higher non-core loss per share of $0.04. The decrease in SCE's core EPS was primarily due to the increase in shares outstanding related to the equity offerings in July 2019 and May 2020, the adoption of the 2018 GRC decision in the second quarter of 2019, and the timing of O&M expenses, partially offset by higher CPUC-related revenue due to the escalation mechanism as set forth in the 2018 GRC decision. SCE's higher non-core loss per share was mainly related to a charge of $0.32 recorded in 2020 from the amortization of SCE's contributions to the Wildfire Insurance Fund and the absence of $0.21 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. These were partially offset by a $0.09 higher gain for SCE's sale of San Onofre nuclear fuel and the absence of the $0.38 impairment charge resulting from the disallowance of certain historical capital expenditures in SCE's 2018 GRC final decision recorded in the second quarter 2019.
Edison International Parent and Other’s year-to-date 2020 loss per share increased by $0.14 compared to the same period in 2019, consisting of higher core loss per share of $0.06 and higher non-core loss per share of $0.08. The increase in 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 a goodwill impairment charge recorded in 2020 related to Edison Energy stemming from the economic impact of COVID-19.
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 narrowed its earnings guidance range for 2020 as summarized in the following chart. See the presentation accompanying the company’s conference call for further information.
2020 Earnings Guidance
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2020 Earnings Guidance |
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2020 Earnings Guidance |
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as of April 30, 2020 |
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as of July 28, 2020 |
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Low |
High |
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Low |
High |
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EIX Basic EPS |
$4.19 |
$4.49 |
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$4.09 |
$4.34 |
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Less: Non-core Items* |
(0.13) |
(0.13) |
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(0.28) |
(0.28) |
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EIX Core EPS |
$4.32 |
$4.62 |
|
$4.37 |
$4.62 |
* There were ($102) million, or ($0.28) per share of non-core items recorded for the six months ended June 30, 2020, calculated based on an assumed weighted average share count for 2020.
Second 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:
Tuesday, July 28, 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:
1-866-441-1051 (US) and 1-203-369-1058 (Int’l) - Passcode: 2548
Telephone replay available through August 11, 2020
Webcast:
www.edisoninvestor.com
About Edison International
Edison International (NYSE: EIX) is one of the nation’s largest electric utility holding companies, 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 that delivers electricity to 15 million people across Southern, Central and Coastal California. Edison International is also the parent company of Edison Energy, a global energy advisory company delivering comprehensive, data-driven energy solutions to commercial and industrial users to meet their cost, sustainability and risk goals.
