Edison International Reports Third Quarter 2018 Results

October 30, 2018

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

ROSEMEAD, Calif., October 30, 2018 - Edison International (NYSE: EIX) today reported third quarter 2018 net income of $513 million, or $1.57 per share, compared to net income of $470 million, or $1.44 per share, in the third quarter 2017. As adjusted, third quarter 2018 core earnings were $510 million, or $1.56 per share. There were no non-core items in the third 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 third 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 third quarter 2018 earnings increased by $71 million, or $0.21 per share, from the third quarter 2017, consisting of $64 million, or $0.19 per share, of higher core earnings and $7 million, or $0.02 per share, of higher non-core earnings. The increase in core earnings resulted from lower operation and maintenance expenses due to regulatory deferrals for line clearing and wildfire insurance costs, the favorable impact of Tax Reform on incremental pre-tax earnings and higher revenue due to a reimbursement for spent nuclear fuel storage costs recorded in 2018. The higher non-core earnings for the third quarter 2018 related to the CPUC-mandated elimination of an obligation for SCE to fund a program intended to develop technologies and methodologies to reduce greenhouse gas (GHG) emissions. There were no SCE non-core items in the third quarter 2017 results.

Edison International Parent and Other’s third quarter 2018 losses from continuing operations increased by $28 million, or $0.08 per share, compared to third quarter 2017, consisting of $24 million, or $0.07 per share, of higher core losses and $4 million, or $0.01 per share, of higher non-core losses. The increase in core losses was due to the impact of Tax Reform in 2018 and the absence of tax benefits recorded in 2017. The higher non-core losses for the third quarter 2018 were due to a tax adjustment related to the sale of SoCore Energy. There were no Edison International Parent and Other non-core items in the third quarter 2017 results.

“During the quarter, we proposed additional capital investments with the Charge Ready application that support California’s climate change policies,” said Pedro Pizarro, president and chief executive officer of Edison International. “We will continue to work with the State’s leaders toward a comprehensive wildfire solution that is essential to protecting customers and communities in the future. In our ongoing efforts to incorporate leading mitigation measures, we have also proposed a grid safety and resiliency program that will further harden our infrastructure and enhance operational practices and situational awareness.”

Pizarro added, “Turning to the 2017 Wildfires, we continue to support the communities affected by these events by setting up a dedicated webpage for impacted customers and providing specially trained resources in our contact center. Additionally, our efforts to mitigate future wildfires are critical to the customers we serve. We are committed to helping our customers and communities recover and rebuild from these events, and communicating directly with them is another key element of our support. We have echoed some of the information provided in our SEC disclosures in a separate press release to facilitate this communication with our communities and other stakeholders.”

Year-to-Date Earnings

For the nine months ended September 30, 2018, Edison International reported net income of $1.0 billion, or $3.09 per share, compared to $1.1 billion, or $3.41 per share, during the same period in 2017. As adjusted, Edison International’s core earnings were $1.0 billion, or $3.21 per share, compared to $1.1 billion, or $3.41 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 nine months 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 $2 million, or $0.01 per share, from the same period prior year, consisting of $9 million, or $0.03 per share, of lower core earnings and $7 million, or $0.02 per share, of higher non-core earnings. The decrease in core 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 reimbursement for spent nuclear fuel storage costs recorded in 2018, a refund to customers for prior overcollections recorded in 2017 and higher income tax benefits. The increase in non-core earnings for year-to-date 2018 related to the CPUC-mandated elimination of an obligation for SCE to fund a program intended to develop technologies and methodologies to reduce GHG emissions. There were no SCE non-core items in the year-to-date 2017 results.

Edison International Parent and Other’s year-to-date 2018 losses from continuing operations increased by $101 million, or $0.31 per share, compared to the same period in 2017, consisting of $54 million, or $0.17 per share, of higher core losses and $47 million, or $0.14 per share, of higher non-core losses. The increase in core losses was due to the impact of Tax Reform in 2018 and the absence of tax benefits recorded in 2017, partially offset by lower corporate expenses in 2018 and a goodwill impairment recorded during 2017. 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.

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.

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Appendix and Summary Financial Schedules

Edison International Reports Third Quarter 2018 Results

Topics: Investor Relations