Investor Relations: Sam Ramraj, (626) 302-2540
Media Contact: Jeff Monford, (626) 476-8120
ROSEMEAD, Calif., November 1, 2022 — Edison International (NYSE: EIX) today reported third quarter 2022 net loss of $128 million, or $0.33 per share, compared to net loss of $341 million, or $0.90 per share, in the third quarter of 2021. As adjusted, third quarter 2022 core earnings were $564 million, or $1.48 per share, compared to core earnings of $644 million, or $1.69 per share, in the third quarter of 2021.
Southern California Edison’s (SCE) third quarter 2022 core earnings per share (EPS) decreased year-over-year, primarily due to a 35-cent true-up recorded in the third quarter of 2021 on implementation of the 2021 General Rate Case (GRC) final decision. This true-up recognized the results of the GRC for the first sixth months of 2021. This reduction was partially offset by recognition of return on rate base related to the Customer Service Re-Platform decision and an increase in CPUC-related revenue due to the escalation mechanism set forth in the 2021 GRC final decision.
Edison International Parent and Other's third quarter 2022 core loss per share was in line with same period in the prior year.
“SCE is making excellent progress in executing its wildfire mitigation plan. The utility is rapidly deploying covered conductor and is on pace to complete 4,300 miles, or 43%, of its overhead miles in high fire risk areas by year-end,” said Pedro J. Pizarro, president and CEO of Edison International. “SCE’s diverse portfolio of mitigation activities has substantially decreased the impact of wildfires associated with utility equipment.”
Pizarro added, “We’re pleased to see several recent state and federal clean energy actions in support of electrification, which are consistent with our vision to lead the electric utility industry through the clean energy transition. We are excited about working in partnership with state and federal governments and with other stakeholders, including the communities we serve, to advance policies that rapidly cut GHG emissions.”
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.
Revision to Best Estimate of Losses for 2017/2018 Wildfire/Mudslide Events
Each reporting period, management reviews its loss estimates for remaining alleged and potential claims related to the 2017/2018 Wildfire/Mudslide Events. Management’s third quarter 2022 review included a review of information obtained after the statute of limitations for individual plaintiffs for the Woolsey Fire expired, including information regarding the nature of claims remaining in the Woolsey Fire litigation. Management also reviewed information obtained from settling a substantial portion of the claims in the 2017/2018 Wildfire/Mudslide Events litigations, including higher than expected costs to settle claims. As a result of management’s third quarter 2022 review, SCE recorded an $880 million increase in estimated losses for the 2017/2018 Wildfire/Mudslide Events as of September 30, 2022, which increase is related to the Woolsey Fire. As a result, SCE also recorded expected recoveries through FERC electric rates of $50 million against the charge, and the resulting net charge to earnings was $830 million ($598 million after-tax).
2022 Earnings Guidance
The company narrowed its earnings guidance range for 2022 as summarized in the following chart. See the presentation accompanying the company’s conference call for further information and assumptions.
|2022 Earnings Guidance
as of July 28, 2022
|2022 Earnings Guidance
as of November 1, 2022
|EIX Basic EPS||$3.25||$3.55||$1.51||$1.71|
|Less: Non-core Items*||(1.15)||(1.15)||(2.97)||(2.97)|
|EIX Core EPS||$4.40||$4.70||$4.48||$4.68|
* There were ($1,131) million, or ($2.97) per share of non-core items recorded for the nine months ended September 30, 2022, calculated based on an assumed weighted average share count for 2022. Basic EIX EPS guidance only incorporates non-core items to September 30, 2022.
Third Quarter 2022 Earnings Conference Call and Webcast Details
|When:||Tuesday, November 1, 2022, 1:30 – 2:30 p.m. (Pacific Time)|
|Telephone Numbers:||1-888-673-9780 (US) and 1-312-470-0178 (Int'l) - Passcode: Edison|
|Telephone Replay:||1-800-819-5743 (US) and 1-203-369-3828 (Int’l) - Passcode: 8542|
|Telephone replay available through November 16, 2022 at 5:00 p.m. (Pacific Time)|
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.
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 LLC, a global energy advisory firm engaged in the business of providing integrated decarbonization and energy solutions to commercial, industrial and institutional customers.
Appendix and Summary Financial Schedules