- Second-quarter 2024 GAAP EPS of $1.14; Core EPS of $1.23
- SCE reaches another milestone in hardening distribution lines
in high fire risk areas: 84% of planned hardening complete
- 2025 GRC proceeding on track. Additionally, SCE has reached
partial settlements with intervenors
- Reaffirms 2024 core EPS guidance of $4.75-$5.05
- Reiterates long-term core EPS growth rate targets of 5%-7% for
2021-2025 and 5%-7% for 2025-2028
Edison International (NYSE: EIX) today reported second-quarter
net income of $439 million, or $1.14 per share, compared to net
income of $354 million, or $0.92 per share, in the second quarter
of last year. As adjusted, second-quarter core earnings were $475
million, or $1.23 per share, compared to core earnings of $388
million, or $1.01 per share, in the second quarter of last
year.
Southern California Edison’s second-quarter 2024 core earnings
per share (EPS) increased year over year, primarily due to higher
revenue authorized in Track 4 of SCE’s 2021 General Rate Case, an
increase in the authorized rate of return resulting from the cost
of capital adjustment mechanism, and recognition of previously
unrecognized return on rate base related to wildfire restoration
efforts. This was partially offset by higher interest expense.
Edison International Parent and Other’s second-quarter 2024 core
loss per share was in line with the same period in the prior
year.
"With a strong start to the first half of the year, we are
confident in reaffirming our 2024 core EPS guidance of $4.75 to
$5.05,” said Pedro J. Pizarro, president and CEO of Edison
International. “Based on the progress in SCE’s 2025 General Rate
Case, including many partial settlements, we are also confident in
getting a strong outcome for customers. The funding authorized in
the GRC to continue making investments in SCE’s grid is the
linchpin for achieving our 2025 EPS guidance and delivering a 5% to
7% EPS CAGR through 2028.”
Pizarro added, “SCE’s latest 10-year load growth forecast calls
for 35% higher load growth, far exceeding all prior internal and
external forecasts. To prepare for this growth, SCE will need to
significantly expand the electric system to ensure a reliable,
resilient and ready grid. These substantial investments will
provide us with opportunities for continued rate base growth.”
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.
Share Repurchase Program
On June 26, 2024, the Edison International Board of Directors
authorized a stock repurchase program effective July 29, 2024, for
repurchase of up to $200 million of its common stock until Dec. 31,
2025. The repurchase program will be used to offset dilution from
common stock issued under the company’s long-term incentive
compensation programs and will be funded using the company's
working capital.
The timing and the amount of any repurchased common stock will
be determined by Edison International's management based on their
evaluation of market conditions and other factors. The repurchase
program may be executed through various methods, including open
market purchases, privately negotiated transactions, and other
transactions in accordance with applicable securities laws. Any
repurchased shares of common stock will be retired. The repurchase
program does not obligate the company to acquire any particular
amount of common stock, and it may be suspended or discontinued at
any time in its discretion.
2024 Earnings Guidance
The company reaffirmed its earnings guidance range for 2024 as
summarized in the following chart. See the presentation
accompanying the company’s conference call for further information
and assumptions.
2024 Earnings Guidance
2024 Earnings Guidance
as of Apr. 30, 2024
as of July 25, 2024
Low
High
Low
High
EIX Basic EPS
$
3.59
$
3.89
$
3.49
$
3.79
Less: Non-core Items*
(1.16
)
(1.16
)
(1.26
)
(1.26
)
EIX Core EPS
$
4.75
$
5.05
$
4.75
$
5.05
* There were ($485) million, or ($1.26)
per share, of non-core items recorded for the six months ended June
30, 2024. Basic EIX EPS guidance only incorporates non-core items
to June 30, 2024.
Second-Quarter 2024 Earnings Conference
Call and Webcast Details
When:
Thursday, July 25, 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:
1-866-405-7293 (U.S.) and 1-203-369-0605
(Int’l) — Passcode: 8852
Telephone replay available through Aug. 7
at 6 p.m. (PDT)
Webcast:
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 edisoninvestor.com.
About Edison
International
Edison International (NYSE: EIX) is one of the nation’s largest
electric utility holding companies, focused on 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 delivering electricity to 15 million people
across Southern, Central and Coastal California. Edison
International is also the parent company of Trio (formerly Edison
Energy), a portfolio of nonregulated competitive businesses
providing integrated sustainability and energy advisory services to
large commercial, industrial and institutional organizations in
North America and Europe.
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,
timely or at all, including uninsured wildfire-related and debris
flow-related costs (including amounts paid for self-insured
retention and co-insurance), costs incurred to mitigate the risk of
utility equipment causing future wildfires, and increased costs due
to supply chain constraints, inflation and rising interest
rates;
- impact of affordability of customer rates on SCE's ability to
execute its strategy, including the impact of affordability on the
regulatory approval of operations and maintenance expenses, and
proposed capital investment projects;
- ability of SCE to implement its operational and strategic
plans, including 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;
- ability of SCE to obtain safety certifications from the Office
of Energy Infrastructure Safety of the California Natural Resources
Agency (“OEIS”);
- risk that California Assembly Bill 1054 (“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 California Public Utilities Commission
(“CPUC”) interpretation of and actions under AB 1054, including its
interpretation of the prudency standard clarified by AB 1054;
- 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;
- 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;
- 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 CPUC, the Federal Energy
Regulatory Commission, and the United States 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,
the recoverability of wildfire-related and debris flow-related
costs, issuance of SCE's wildfire safety certification, wildfire
mitigation efforts, approval and implementation of electrification
programs, and delays in executive, regulatory and legislative
actions;
- potential for penalties or disallowances for non-compliance
with applicable laws and regulations, including fines, penalties
and disallowances related to wildfires where SCE's equipment is
alleged to be associated with ignition;
- 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;
- 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, and cost overruns;
- 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, changes in the California Independent System
Operator’s transmission plans, and governmental approvals; and
- actions by credit rating agencies to downgrade Edison
International or SCE’s credit ratings or to place those ratings on
negative watch or negative outlook.
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, 2023,
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,
2024
2023
Change
2024
2023
Change
Earnings (loss) per share available to
Edison International
SCE
$
1.36
$
1.09
$
0.27
$
1.52
$
2.06
$
(0.54
)
Edison International Parent and Other
(0.22
)
(0.17
)
(0.05
)
(0.41
)
(0.33
)
(0.08
)
Edison International
1.14
0.92
0.22
1.11
1.73
(0.62
)
Less: Non-core items
SCE
(0.09
)
(0.14
)
0.05
(1.26
)
(0.46
)
(0.80
)
Edison International Parent and Other
—
0.05
(0.05
)
—
0.09
(0.09
)
Total non-core items
(0.09
)
(0.09
)
—
(1.26
)
(0.37
)
(0.89
)
Core earnings (loss) per share
SCE
1.45
1.23
0.22
2.78
2.52
0.26
Edison International Parent and Other
(0.22
)
(0.22
)
0.00
(0.41
)
(0.42
)
0.01
Edison International
$
1.23
$
1.01
$
0.22
$
2.37
$
2.10
$
0.27
Note: Diluted earnings were $1.13 and
$0.92 per share for the three months ended June 30, 2024 and 2023,
respectively. Diluted earnings were $1.11 and $1.73 per share for
the six months ended June 30, 2024 and 2023, 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)
2024
2023
Change
2024
2023
Change
Net income (loss) available to Edison
International
SCE
$
523
$
420
$
103
$
588
$
790
$
(202
)
Edison International Parent and Other
(84
)
(66
)
(18
)
(160
)
(126
)
(34
)
Edison International
439
354
85
428
664
(236
)
Less: Non-core items
SCE1,2,3,4,5,6
(36
)
(51
)
15
(484
)
(175
)
(309
)
Edison International Parent and Other7
—
17
(17
)
(1
)
35
(36
)
Total non-core items
(36
)
(34
)
(2
)
(485
)
(140
)
(345
)
Core earnings (loss)
SCE
559
471
88
1,072
965
107
Edison International Parent and Other
(84
)
(83
)
(1
)
(159
)
(161
)
2
Edison International
$
475
$
388
$
87
$
913
$
804
$
109
1
Includes charges for 2017/2018
Wildfire/Mudslide Events claims and expenses, net of recoveries of
$11 million ($8 million after-tax) and $12 million ($8 million
after-tax) for the three months ended June 30, 2024 and 2023,
respectively, and $478 million ($344 million after-tax) and $102
million ($73 million after-tax) for the six months ended June 30,
2024 and 2023, respectively.
2
Includes charges for Other Wildfires
claims and related legal expenses, net of expected insurance and
regulatory recoveries of $2 million ($2 million after-tax) and $121
million ($87 million after-tax) for the three and six months ended
June 30, 2024, respectively.
3
Includes amortization of SCE's Wildfire
Insurance Fund expenses of $37 million ($26 million after-tax) and
$53 million ($38 million after-tax) for the three months ended June
30, 2024 and 2023, respectively, and $73 million ($52 million
after-tax) and $105 million ($76 million after-tax) for the six
months ended June 30, 2024 and 2023, respectively.
4
Includes a charge $30 million ($21 million
after-tax) for a probable disallowance related to the
reasonableness review of recorded San Onofre Units 2 and 3
decommissioning costs in the 2021 NDCTP for the six months ended
June 30, 2023.
5
Includes an insurance recovery of $10
million ($7 million after-tax) related to settlement of an
employment litigation matter for the three and six months ended
June 30, 2023.
6
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.
7
Includes expected wildfire claims of $1
million ($1 million after-tax) insured by EIS for the six months
ended June 30, 2024, and customer revenues of $22 million ($18
million after-tax) and $44 million ($35 million after-tax) related
to an EIS insurance contract for the six months ended June 30, 2024
and 2023, respectively.
Consolidated Statements of
Income
Edison International
Three months ended
Six months ended
June 30,
June 30,
(in millions, except per-share
amounts)
2024
2023
2024
2023
Operating revenue
$
4,336
$
3,964
$
8,414
$
7,930
Purchased power and fuel
1,234
1,147
2,242
2,465
Operation and maintenance
1,285
1,241
2,602
2,325
Wildfire-related claims, net of insurance
recoveries
—
—
615
96
Wildfire Insurance Fund expense
37
53
73
105
Depreciation and amortization
726
650
1,428
1,306
Property and other taxes
154
149
309
289
Total operating expenses
3,436
3,240
7,269
6,586
Operating income
900
724
1,145
1,344
Interest expense
(480
)
(392
)
(924
)
(753
)
Other income, net
148
128
286
247
Income before income taxes
568
460
507
838
Income tax expense (benefit)
59
51
(54
)
64
Net income
509
409
561
774
Less: Net income attributable to
noncontrolling interests - preference stock of SCE
49
29
90
58
Preferred stock dividend requirements of
Edison International
21
26
43
52
Net income available to Edison
International common shareholders
$
439
354
$
428
664
Basic earnings per share:
Weighted average shares of common stock
outstanding
385
383
385
383
Basic earnings per common share
available to Edison International common shareholders
$
1.14
0.92
$
1.11
$
1.73
Diluted earnings per share:
Weighted average shares of common stock
outstanding, including effect of dilutive securities
388
385
387
385
Diluted earnings per common share
available to Edison International common shareholders
$
1.13
0.92
$
1.11
$
1.73
Consolidated Balance Sheets
Edison International
June 30,
December 31,
(in millions)
2024
2023
ASSETS
Cash and cash equivalents
$
465
$
345
Receivables, less allowances of $335 and
$360 for uncollectible accounts at respective dates
2,020
2,016
Accrued unbilled revenue
1,007
742
Inventory
534
527
Prepaid expenses
103
112
Regulatory assets
3,910
2,524
Wildfire Insurance Fund contributions
138
204
Other current assets
335
341
Total current assets
8,512
6,811
Nuclear decommissioning trusts
4,292
4,173
Other investments
71
54
Total investments
4,363
4,227
Utility property, plant and equipment,
less accumulated depreciation and amortization of $13,587 and
$12,910 at respective dates
57,144
55,877
Nonutility property, plant and equipment,
less accumulated depreciation of $119 and $114 at respective
dates
205
207
Total property, plant and
equipment
57,349
56,084
Regulatory assets (include $1,535 and
$1,558 related to Variable Interest Entities "VIEs" at respective
dates)
8,658
8,897
Wildfire Insurance Fund contributions
1,948
1,951
Operating lease right-of-use assets
1,201
1,221
Long-term insurance receivables
496
501
Other long-term assets
2,291
2,066
Total long-term assets
14,594
14,636
Total assets
$
84,818
$
81,758
Consolidated Balance Sheets
Edison International
June 30,
December 31,
(in millions, except share amounts)
2024
2023
LIABILITIES AND EQUITY
Short-term debt
$
1,505
$
1,077
Current portion of long-term debt
1,698
2,697
Accounts payable
1,892
1,983
Wildfire-related claims
31
30
Customer deposits
443
390
Regulatory liabilities
1,193
763
Current portion of operating lease
liabilities
125
120
Other current liabilities
1,387
1,538
Total current liabilities
8,274
8,598
Long-term debt (include $1,492 and
$1,515 related to VIEs at respective dates)
33,099
30,316
Deferred income taxes and credits
6,863
6,672
Pensions and benefits
406
415
Asset retirement obligations
2,668
2,666
Regulatory liabilities
9,900
9,420
Operating lease liabilities
1,076
1,101
Wildfire-related claims
1,219
1,368
Other deferred credits and other long-term
liabilities
3,445
3,258
Total deferred credits and other
liabilities
25,577
24,900
Total liabilities
66,950
63,814
Preferred stock (50,000,000 shares
authorized; 1,159,317 and 1,159,317 shares of Series A and 503,454
and 532,454 shares of Series B issued and outstanding at respective
dates)
1,645
1,673
Common stock, no par value (800,000,000
shares authorized; 386,099,652 and 383,924,912 shares issued and
outstanding at respective dates)
6,461
6,338
Accumulated other comprehensive loss
(8
)
(9
)
Retained earnings
7,326
7,499
Total Edison International's
shareholders' equity
15,424
15,501
Noncontrolling interests – preference
stock of SCE
2,444
2,443
Total equity
17,868
17,944
Total liabilities and equity
$
84,818
$
81,758
Consolidated Statements of Cash
Flows
Edison International
Six months ended June 30,
(in millions)
2024
2023
Cash flows from operating
activities:
Net income
$
561
$
774
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation and amortization
1,454
1,371
Allowance for equity during
construction
(96
)
(75
)
Deferred income taxes
(52
)
63
Wildfire Insurance Fund amortization
expense
73
105
Other
21
30
Nuclear decommissioning trusts
(41
)
(60
)
Changes in operating assets and
liabilities:
Receivables
(66
)
(46
)
Inventory
(10
)
(44
)
Accounts payable
101
(415
)
Other current assets and liabilities
(444
)
(107
)
Derivative assets and liabilities, net
(25
)
(151
)
Regulatory assets and liabilities, net
(106
)
(366
)
Wildfire-related claims
(148
)
(428
)
Other noncurrent assets and
liabilities
150
61
Net cash provided by operating
activities
1,372
712
Cash flows from financing
activities:
Long-term debt issued, net of discount and
issuance costs of $34 and $43 for the respective periods
4,216
4,133
Long-term debt repaid
(1,725
)
(1,466
)
Short-term debt issued
—
675
Short-term debt repaid
(396
)
(1,730
)
Common stock issued
12
13
Preferred and preference stock issued, net
of issuance cost
345
—
Preferred or preference stock repurchased
or redeemed
(378
)
—
Commercial paper borrowing, net of
repayments
114
198
Dividends and distribution to
noncontrolling interests
(88
)
(58
)
Common stock dividends paid
(595
)
(555
)
Preferred stock dividends paid
(45
)
(52
)
Other
105
61
Net cash provided by financing
activities
1,565
1,219
Cash flows from investing
activities:
Capital expenditures
(2,700
)
(2,711
)
Proceeds from sale of nuclear
decommissioning trust investments
2,477
1,967
Purchases of nuclear decommissioning trust
investments
(2,455
)
(1,907
)
Other
8
1
Net cash used in investing
activities
(2,670
)
(2,650
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
267
(719
)
Cash, cash equivalents and restricted cash
at beginning of period
532
917
Cash, cash equivalents and restricted
cash at end of period
$
799
$
198
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725152018/en/
Investor Relations: Sam Ramraj, (626) 302-2540 Media Relations:
(626) 302-2255 News@sce.com
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