- Second Quarter 2023 GAAP earnings per share of $0.92; Core EPS
of $1.01
- SCE has completed nearly 5,000 miles of covered conductor; now
estimates it has reduced the probability of losses from
catastrophic wildfires by 85%
- Reaffirmed 2023 EPS guidance of $4.55-$4.85
- Reiterated long-term core EPS growth rate target of 5%-7% for
2021-2025 and introduced core EPS growth rate target of 5%-7% for
2025-2028
Edison International (NYSE: EIX) today reported second-quarter
net income of $354 million, or $0.92 per share, compared to net
income of $241 million, or $0.63 per share, in the second quarter
of last year. As adjusted, second-quarter core earnings were $388
million, or $1.01 per share, compared to core earnings of $357
million, or $0.94 per share, in the second quarter of last
year.
Southern California Edison’s second-quarter core earnings per
share (EPS) increased year over year, primarily due to revenue from
the escalation mechanism set forth in the 2021 General Rate Case
final decision and higher interest income on balancing account
undercollections, partially offset by higher interest expense.
Edison International Parent and Other’s second-quarter core loss
per share increased year over year, primarily due to higher
interest expense.
“SCE is strategically positioned to make substantial investments
in the reliability, resiliency and readiness of the grid,” said
Pedro J. Pizarro, president and CEO of Edison International. “The
utility is also well prepared for the wildfire season and has now
replaced nearly 5,000 circuit miles of bare wire with covered
conductor. SCE will continue to make substantial investments in
wildfire mitigation to address the remaining wildfire risk on the
system.”
Pizarro added, “Driven by Edison International’s impressive
performance through the first half of the year, we are confident in
delivering on our 2023 core EPS guidance. Further, based on the
strength of SCE’s investment opportunities, we are targeting 5% to
7% EPS growth for 2025 through 2028, which provides a path toward
$7 EPS potential for 2028. Underpinning this is the rate base
growth driven by the essential investments to advance California’s
clean energy transition.”
Edison International uses core earnings internally for financial
planning and analysis of performance. Core earnings are also used
when communicating with investors and analysts regarding Edison
International’s earnings results to facilitate comparisons of the
company’s performance from period to period. Please see the
attached tables to reconcile core earnings to basic GAAP
earnings.
Long-Term Core EPS Growth Rate
Guidance
The company reiterated its long-term core EPS growth rate target
of 5%-7% for 2021-2025. In addition, the company introduced a core
EPS growth rate target of 5%-7% for 2025-2028, with a starting
point of the midpoint of Edison International’s 2025 core EPS
guidance of $5.50 to $5.90.
2023 Earnings Guidance
The company reaffirmed its earnings guidance range for 2023 as
summarized in the following chart. See the presentation
accompanying the company’s conference call for further information
and assumptions.
2023 Earnings Guidance
2023 Earnings Guidance
as of May 2, 2023
as of July 27, 2023
Low
High
Low
High
EIX Basic EPS
$
4.27
$
4.57
$
4.18
$
4.48
Less: Non-core Items*
(0.28
)
(0.28
)
(0.37
)
(0.37
)
EIX Core EPS
$
4.55
$
4.85
$
4.55
$
4.85
* There were ($140) million, or ($0.37) per share of non-core
items recorded for the six months ended June 30, 2023. Basic EIX
EPS guidance only incorporates non-core items to June 30, 2023.
Second Quarter 2023 Earnings Conference
Call and Webcast Details
When:
Thursday, July 27, 1:30-2:30 p.m.
(PDT)
Telephone Numbers:
1-888-673-9780 (U.S.) and 1-312-470-0178
(Int'l) — Passcode: Edison
Telephone Replay:
1-800-813-5534 (U.S.) and 1-203-369-3348
(Int’l) — Passcode: 6544
Telephone replay available through Aug. 11
at 6 p.m. (PDT)
Webcast:
www.edisoninvestor.com
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
providing integrated sustainability and energy solutions to
commercial, industrial and institutional customers.
Appendix
Use of Non-GAAP Financial
Measures
Edison International’s earnings are prepared in accordance with
generally accepted accounting principles used in the United States
and represent the company’s earnings as reported to the Securities
and Exchange Commission. Our management uses core earnings and core
earnings per share (EPS) internally for financial planning and for
analysis of performance of Edison International and Southern
California Edison. We also use core earnings and core EPS when
communicating with analysts and investors regarding our earnings
results to facilitate comparisons of the Company’s performance from
period to period. Financial measures referred to as net income,
basic EPS, core earnings, or core EPS also apply to the description
of earnings or earnings per share.
Core earnings and core EPS are non-GAAP financial measures and
may not be comparable to those of other companies. Core earnings
and core EPS are defined as basic earnings and basic EPS excluding
income or loss from discontinued operations and income or loss from
significant discrete items that management does not consider
representative of ongoing earnings. Basic earnings and losses refer
to net income or losses attributable to Edison International
shareholders. Core earnings are reconciled to basic earnings in the
attached tables. The impact of participating securities (vested
awards that earn dividend equivalents that may participate in
undistributed earnings with common stock) for the principal
operating subsidiary is not material to the principal operating
subsidiary’s EPS and is therefore reflected in the results of the
Edison International holding company, which is included in Edison
International Parent and Other.
Safe Harbor Statement
Statements contained in this presentation about future
performance, including, without limitation, operating results,
capital expenditures, rate base growth, dividend policy, financial
outlook, and other statements that are not purely historical, are
forward-looking statements. These forward-looking statements
reflect our current expectations; however, such statements involve
risks and uncertainties. Actual results could differ materially
from current expectations. These forward-looking statements
represent our expectations only as of the date of this
presentation, and Edison International assumes no duty to update
them to reflect new information, events or circumstances. Important
factors that could cause different results include, but are not
limited to the:
- ability of SCE to recover its costs through regulated rates,
including uninsured wildfire-related and debris flow-related costs,
costs incurred to mitigate the risk of utility equipment causing
future wildfires, costs incurred as a result of the COVID-19
pandemic, and increased costs due to supply chain constraints,
inflation, and rising interest rates;
- ability of SCE to implement its Wildfire Mitigation Plan and
capital program;
- risks of regulatory or legislative restrictions that would
limit SCE's ability to implement operational measures to mitigate
wildfire risk, including Public Safety Power Shutoff (“PSPS”) and
fast curve settings, when conditions warrant or would otherwise
limit SCE's operational practices relative to wildfire risk
mitigation;
- risks associated with SCE implementing PSPS, including
regulatory fines and penalties, claims for damages and reputational
harm;
- ability of SCE to maintain a valid safety certification, which
is required to benefit from certain provisions of California
Assembly Bill 1054 (“AB 1054”);
- extreme weather-related incidents (including events caused, or
exacerbated, by climate change, such as wildfires, debris flows,
flooding, droughts, high wind events and extreme heat events) and
other natural disasters (such as earthquakes), which could cause,
among other things, public safety issues, property damage, rotating
outages and other operational issues (such as issues due to damaged
infrastructure), PSPS activations and unanticipated costs;
- risk that AB 1054 does not effectively mitigate the significant
exposure faced by California investor-owned utilities related to
liability for damages arising from catastrophic wildfires where
utility facilities are alleged to be a substantial cause, including
the longevity of the Wildfire Insurance Fund and the CPUC's
interpretation of and actions under AB 1054, including its
interpretation of the prudency standard clarified by AB 1054;
- ability of Edison International and SCE to effectively attract,
manage, develop and retain a skilled workforce, including its
contract workers;
- decisions and other actions by the California Public Utilities
Commission, the Office of Energy Infrastructure Safety of the
California Natural Resources Agency, the Federal Energy Regulatory
Commission, the Nuclear Regulatory Commission and other
governmental authorities, including decisions and actions related
to nationwide or statewide crisis, determinations of authorized
rates of return or return on equity, issuance of SCE's wildfire
safety certification, wildfire mitigation efforts, approval and
implementation of electrification programs, and delays in
executive, regulatory and legislative actions;
- cost and availability of labor, equipment and materials,
including as a result of supply chain constraints and
inflation;
- ability of Edison International or SCE to borrow funds and
access bank and capital markets on reasonable terms;
- risks associated with the decommissioning of San Onofre,
including those related to worker and public safety, public
opposition, permitting, governmental approvals, on-site storage of
spent nuclear fuel and other radioactive material, delays,
contractual disputes, contractor performance, and cost
overruns;
- ability of Edison International and SCE to obtain sufficient
insurance at a reasonable cost or to maintain its customer funded
self-insurance program, and to recover the costs of such insurance
or, in the event liabilities exceed insured amounts, the ability to
recover uninsured losses (including amounts paid for self-insured
retention and co-insurance) from customers or other parties;
- pandemics, such as COVID-19, and other events that cause
regional, statewide, national or global disruption, which could
impact, among other things, Edison International's and SCE's
business, operations, cash flows, liquidity and/or financial
results and cause Edison International and SCE to incur
unanticipated costs;
- physical security of Edison International's and SCE's critical
assets and personnel and the cybersecurity of Edison
International's and SCE's critical information technology systems
for grid control, and business, employee and customer data;
- risks associated with cost allocation resulting in higher rates
for utility bundled service customers because of possible customer
bypass or departure for other electricity providers such as
Community Choice Aggregators (“CCA,” which are cities, counties,
and certain other public agencies with the authority to generate
and/or purchase electricity for their local residents and
businesses) and Electric Service Providers (entities that offer
electric power and ancillary services to retail customers, other
than electrical corporations (like SCE) and CCAs);
- risks inherent in SCE’s capital investment program, including
those related to project site identification, public opposition,
environmental mitigation, construction, permitting, contractor
performance, availability of labor, equipment and materials,
weather, changes in the California Independent System Operator’s
transmission plans, and governmental approvals; and
- risks associated with the operation of electrical facilities,
including worker and public safety issues, the risk of utility
assets causing or contributing to wildfires, failure, availability,
efficiency, and output of equipment and facilities, and
availability and cost of spare parts.
Additional information about risks and uncertainties is
contained in Edison International and SCE’s most recent combined
Annual Report on Form 10-K for the year ended December 31, 2022,
and subsequent Quarterly Report(s) on Form 10-Q filed with the
Securities and Exchange commission, including the "Risk Factors"
sections. Readers are urged to read this entire release as well as
the most recent Form 10-K and Form 10-Q (including information
incorporated by reference), and carefully consider the risks,
uncertainties, and other factors that affect Edison International's
and SCE's businesses. Edison International and SCE post or provide
direct links (i) to certain SCE and other parties' regulatory
filings and documents with the CPUC and the FERC and certain agency
rulings and notices in open proceedings in a section titled "SCE
Regulatory Highlights," (ii) to certain documents and information
related to Southern California wildfires which may be of interest
to investors in a section titled "Southern California Wildfires,"
and (iii) to presentations, documents and other information that
may be of interest to investors in a section titled "Presentations
and Updates" at www.edisoninvestor.com in order to publicly
disseminate such information.
These forward-looking statements represent our expectations only
as of the date of this news release, and Edison International
assumes no duty to update them to reflect new information, events
or circumstances. Readers should review future reports filed by
Edison International and SCE with the SEC.
Second Quarter Reconciliation
of Basic Earnings Per Share to Core Earnings Per Share
Three months ended
Six months ended
June 30,
June 30,
2023
2022
Change
2023
2022
Change
Earnings (loss) per share attributable to
Edison International
SCE
$
1.09
$
0.79
$
0.30
$
2.06
$
1.18
$
0.88
Edison International Parent and Other
(0.17
)
(0.16
)
(0.01
)
(0.33
)
(0.33
)
—
Edison International
0.92
0.63
0.29
1.73
0.85
0.88
Less: Non-core items
SCE
(0.14
)
(0.31
)
0.17
(0.46
)
(1.15
)
0.69
Edison International Parent and Other
0.05
—
0.05
0.09
—
0.09
Total non-core items
(0.09
)
(0.31
)
0.22
(0.37
)
(1.15
)
0.78
Core earnings (loss) per share
SCE
1.23
1.10
0.13
2.52
2.33
0.19
Edison International Parent and Other
(0.22
)
(0.16
)
(0.06
)
(0.42
)
(0.33
)
(0.09
)
Edison International
$
1.01
$
0.94
$
0.07
$
2.10
$
2.00
$
0.10
Note: Diluted earnings were $0.92 and $0.63 per share for the
three months ended June 30, 2023 and 2022, respectively. Diluted
earnings were $1.73 and $0.85 per share for the six months ended
June 30, 2023 and 2022, respectively.
Second Quarter Reconciliation
of Basic Earnings Per Share to Core Earnings (in millions)
Three months ended
Six months ended
June 30,
June 30,
(in millions)
2023
2022
Change
2023
2022
Change
Net income (loss) attributable to Edison
International
SCE
$
420
$
302
$
118
$
790
$
449
$
341
Edison International Parent and Other
(66)
(61
)
(5
)
(126
)
(124
)
(2
)
Edison International
354
241
113
664
325
339
Less: Non-core items
SCE1,2,3,4,5,6,7
(51)
(116
)
65
(175
)
(439
)
264
Edison International Parent and Other8
17
—
17
35
—
35
Total non-core items
(34)
(116
)
82
(140
)
(439
)
299
Core earnings (losses)
SCE
471
418
53
965
888
77
Edison International Parent and Other
(83)
(61
)
(22
)
(161
)
(124
)
(37
)
Edison International
$
388
$
357
$
31
$
804
$
764
$
40
1
Includes amortization of SCE's Wildfire
Insurance Fund expenses of $53 million ($38 million after-tax) for
the three months ended June 30, 2023 and 2022 and $105 million ($76
million after-tax) and $106 million ($76 million after-tax) for the
six months ended June 30, 2023 and 2022, respectively.
2
Includes charges for 2017/2018
Wildfire/Mudslide Events claims and expenses, net of recoveries of
$12 million ($8 million after-tax) and $8 million ($6 million
after-tax) for the three months ended June 30, 2023 and 2022 and
$102 million ($73 million after-tax) and $404 million ($291 million
after-tax) for the six months ended June 30, 2023 and 2022,
respectively.
3
Includes a charge of probable disallowance
related to the reasonableness review of recorded San Onofre Units 2
and 3 decommissioning costs in the 2021 NDCTP of $30 million ($21
million after-tax) for the six months ended June 30, 2023.
4
Includes a charge related to customer
cancellations of certain ECS data services of $17 million ($12
million after-tax) for the three and six months ended June 30,
2023.
5
Includes an insurance recovery of $10
million ($7 million after-tax) and a charge of $23 million ($16
million after-tax) after net of estimated insurance recoveries
related to settlement of an employment litigation matter for the
three and six months ended June 30, 2023 and 2022,
respectively.
6
Includes impairment charges of $64 million
($46 million after-tax) for the three and six months ended June 30,
2022, including $47 million ($34 million after-tax) related to
SCE's CSRP settlement agreement and $17 million ($12 million
after-tax) related to historical capital expenditures disallowed in
SCE's track 3 of the 2021 GRC final decision.
7
Includes a charge related to
organizational realignment services of $14 million ($10 million
after-tax) for the three and six months ended June 30, 2022.
8
Includes customer revenues of $22 million
($17 million after-tax) and $44 million ($35 million after-tax)
related to an EIS insurance contract for the three and six months
ended June 30, 2023, respectively.
Consolidated Statements of
Income
Edison International
Three months ended
Six months ended
June 30,
June 30,
(in millions, except per-share
amounts)
2023
2022
2023
2022
Operating revenue
$
3,964
$
4,008
$
7,930
$
7,976
Purchased power and fuel
1,147
1,304
2,465
2,341
Operation and maintenance
1,241
1,361
2,325
2,848
Wildfire-related claims, net of insurance
recoveries
—
2
96
427
Wildfire Insurance Fund expense
53
53
105
106
Depreciation and amortization
650
601
1,306
1,184
Property and other taxes
149
120
289
246
Impairment, net of other operating
income
—
63
—
61
Total operating expenses
3,240
3,504
6,586
7,213
Operating income
724
504
1,344
763
Interest expense
(392
)
(271
)
(753
)
(517
)
Other income
128
66
247
134
Income before income taxes
460
299
838
380
Income tax expense (benefit)
51
7
64
(48
)
Net income
409
292
774
428
Preference stock dividend requirements of
SCE
$
29
$
25
$
58
$
51
Preferred stock dividend requirement of
Edison International
26
26
52
52
Net income attributable to Edison
International common shareholders
$
354
$
241
$
664
$
325
Basic earnings per share:
Weighted average shares of common stock
outstanding
383
381
383
381
Basic earnings per common share
attributable to Edison International common shareholders
$
0.92
$
0.63
$
1.73
$
0.85
Diluted earnings per share:
Weighted average shares of common stock
outstanding, including effect of dilutive securities
385
383
385
382
Diluted earnings per common share
attributable to Edison International common shareholders
$
0.92
$
0.63
$
1.73
$
0.85
Consolidated Balance Sheets
Edison International
June 30,
December 31,
(in millions)
2023
2022
ASSETS
Cash and cash equivalents
$
195
$
914
Receivables, less allowances of $335 and
$347 for uncollectible accounts at respective dates
1,717
1,695
Accrued unbilled revenue
756
641
Inventory
511
474
Prepaid expenses
88
248
Regulatory assets
3,656
2,497
Wildfire Insurance Fund contributions
204
204
Other current assets
289
397
Total current assets
7,416
7,070
Nuclear decommissioning trusts
4,126
3,948
Other investments
72
55
Total investments
4,198
4,003
Utility property, plant and equipment,
less accumulated depreciation and amortization of $12,662 and
$12,260 at respective dates
54,123
53,274
Nonutility property, plant and equipment,
less accumulated depreciation of $111 and $106 at respective
dates
203
212
Total property, plant and
equipment
54,326
53,486
Regulatory assets (include $1,585 and $834
related to Variable Interest Entities "VIEs" at respective
dates)
8,621
8,181
Wildfire Insurance Fund contributions
2,053
2,155
Operating lease right-of-use assets
1,231
1,442
Long-term insurance receivables
458
465
Other long-term assets
1,248
1,239
Total long-term assets
13,611
13,482
Total assets
$
79,551
$
78,041
Consolidated Balance Sheets
Edison International
June 30,
December 31,
(in millions, except share amounts)
2023
2022
LIABILITIES AND EQUITY
Short-term debt
$
1,161
$
2,015
Current portion of long-term debt
2,889
2,614
Accounts payable
1,790
2,359
Wildfire-related claims
71
121
Customer deposits
173
167
Regulatory liabilities
797
964
Current portion of operating lease
liabilities
315
506
Other current liabilities
1,631
1,601
Total current liabilities
8,827
10,347
Long-term debt (include $1,539 and $809
related to VIEs at respective dates)
29,430
27,025
Deferred income taxes and credits
6,429
6,149
Pensions and benefits
409
422
Asset retirement obligations
2,709
2,754
Regulatory liabilities
8,735
8,211
Operating lease liabilities
916
936
Wildfire-related claims
1,309
1,687
Other deferred credits and other long-term
liabilities
3,093
2,988
Total deferred credits and other
liabilities
23,600
23,147
Total liabilities
61,857
60,519
Commitments and contingencies
Preferred stock (50,000,000 shares
authorized; 1,250,000 shares of Series A and 750,000 shares of
Series B issued and outstanding at respective dates)
1,978
1,978
Common stock, no par value (800,000,000
shares authorized; 383,248,837 and 382,208,498 shares issued and
outstanding at respective dates)
6,270
6,200
Accumulated other comprehensive loss
(8
)
(11
)
Retained earnings
7,553
7,454
Total Edison International's
shareholders' equity
15,793
15,621
Noncontrolling interests – preference
stock of SCE
1,901
1,901
Total equity
17,694
17,522
Total liabilities and equity
$
79,551
$
78,041
Consolidated Statements of Cash
Flows
Edison International
Six months ended
June 30,
(in millions)
2023
2022
Cash flows from operating
activities:
Net income
$
774
$
428
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation and amortization
1,371
1,216
Allowance for equity during
construction
(75
)
(61
)
Impairment
—
64
Deferred income taxes
63
(48
)
Wildfire Insurance Fund amortization
expense
105
106
Other
30
40
Nuclear decommissioning trusts
(60
)
(65
)
Changes in operating assets and
liabilities:
Receivables
(46
)
(81
)
Inventory
(44
)
(19
)
Accounts payable
(415
)
143
Tax receivables and payables
(7
)
58
Other current assets and liabilities
(100
)
(207
)
Derivative assets and liabilities, net
(151
)
(22
)
Regulatory assets and liabilities, net
(366
)
372
Wildfire-related insurance receivable
6
(139
)
Wildfire-related claims
(428
)
(609
)
Other noncurrent assets and
liabilities
55
62
Net cash provided by operating
activities
712
1,238
Cash flows from financing
activities:
Long-term debt issued, net of discount and
issuance costs of $43 and $34 for the respective periods
4,133
2,949
Long-term debt repaid
(1,466
)
(372
)
Short-term debt issued
675
600
Short-term debt repaid
(1,730
)
(993
)
Common stock issued
13
6
Commercial paper borrowing (repayments),
net
198
(497
)
Dividends and distribution to
noncontrolling interests
(58
)
(57
)
Common stock dividends paid
(555
)
(524
)
Preferred stock dividends paid
(52
)
(46
)
Other
61
53
Net cash provided by financing
activities
1,219
1,119
Cash flows from investing
activities:
Capital expenditures
(2,711
)
(2,708
)
Proceeds from sale of nuclear
decommissioning trust investments
1,967
2,106
Purchases of nuclear decommissioning trust
investments
(1,907
)
(2,041
)
Other
1
15
Net cash used in investing
activities
(2,650
)
(2,628
)
Net decrease in cash, cash equivalents
and restricted cash
(719
)
(271
)
Cash, cash equivalents and restricted cash
at beginning of period
917
394
Cash, cash equivalents and restricted
cash at end of period
$
198
$
123
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230727531714/en/
Investor Relations: Sam Ramraj, (626) 302-2540 Media Contact:
Jeff Monford, (626) 302-2255
Edison (NYSE:EIX)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Edison (NYSE:EIX)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024