- Fourth-quarter 2023 GAAP earnings per share of $0.99; Core EPS
of $1.28
- Full-year 2023 GAAP EPS of $3.12; Core EPS of $4.76
- SCE exceeds WMP covered conductor target of 1,100 miles; total
deployment of more than 5,580 miles
- EIX introduces 2024 EPS guidance of $4.75-$5.05
- EIX 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 fourth-quarter
net income of $378 million, or $0.99 per share, compared to net
income of $415 million, or $1.09 per share, in the fourth quarter
of last year. As adjusted, fourth-quarter core earnings were $490
million, or $1.28 per share, compared to core earnings of $437
million, or $1.15 per share, in the fourth quarter of last
year.
Southern California Edison’s fourth-quarter 2023 core earnings
per share (EPS) increased year over year, primarily due to higher
revenue from the escalation mechanism set forth in the 2021 General
Rate Case (GRC) final decision and lower operation and maintenance
expenses, partially offset by higher interest expense.
Edison International Parent and Other’s fourth-quarter 2023 core
loss per share decreased year over year, primarily due to gains on
preferred stock repurchases.
“Delivering core EPS above the midpoint of our guidance range
demonstrates our ability to successfully manage variability in the
business,” said Pedro J. Pizarro, president and CEO of Edison
International. “Our 2023 annual dividend increase of 5.8% reflects
the board and management’s continued commitment to delivering on
our EPS growth targets. Looking ahead, we reiterate the strong
confidence we have in our long-term EPS growth targets of 5% to 7%
for 2021 through 2025 and 2025 through 2028.”
Pizarro added, “SCE’s industry-leading covered conductor program
continues to make tremendous progress. In just five years, SCE has
installed more than 5,580 circuit miles of covered conductor. When
combined with enhanced vegetation management, asset inspections and
other programs, this has significantly reduced the need for Public
Safety Power Shutoffs.”
Full-Year Earnings
For 2023, Edison International reported net income of $1,197
million, or $3.12 per share, compared to $612 million, or $1.61 per
share, for 2022. As adjusted, Edison International’s core earnings
were $1,825 million, or $4.76 per share, compared to $1,765
million, or $4.63 per share, in 2022.
SCE’s full-year core EPS was higher, primarily due to higher
revenue from the escalation mechanism set forth in the 2021 GRC
final decision and higher interest income on balancing account
undercollections, partially offset by higher interest expense.
Edison International Parent and Other’s full-year loss per share
increased primarily due to higher interest expense, partially
offset by gains on preferred stock repurchases.
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.
2024 Earnings Guidance
The company announced 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
as of Feb. 22, 2024
Low
High
EIX Basic EPS
$
4.75
$
5.05
Less: Non-core Items
–
–
EIX Core EPS
$
4.75
$
5.05
Edison International and Southern
California Edison Declare Dividends
Today, the board of directors of Edison International declared a
quarterly common stock dividend of $0.78 per share, payable on
April 30, 2024, to shareholders of record on March 28, 2024. It
also declared dividends on preferred stock. Additionally, the board
of directors of Southern California Edison Company today declared
dividends on preference stock. For more information, please see the
related news release at www.edisoninvestor.com.
Fourth-Quarter
and Full-Year 2023 Earnings Conference Call and Webcast
Details
When:
Thursday, Feb. 22, 1:30-2:30 p.m.
(PST)
Telephone Numbers:
1-888-673-9780 (U.S.) and 1-312-470-0178
(Int'l) — Passcode: Edison
Telephone Replay:
1-866-363-4001 (U.S.) and 1-203-369-0204
(Int’l) — Passcode: 5730
Telephone replay available through March 6
at 6 p.m. (PST)
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-K 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,
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, costs incurred as a
result of the COVID-19 pandemic, 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
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, including
more detail about the factors described in this release, is
contained in Edison International and SCE’s 2023 Form 10-K,
including the "Risk Factors" sections. Readers are urged to read
this entire release including information incorporated by
reference, as well as the 2023 Form 10-K, 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.
Fourth Quarter Reconciliation
of Basic Earnings Per Share to Core Earnings Per Share
Three months ended
Year ended
December 31,
December 31,
2023
2022
Change
2023
2022
Change
Earnings (loss) per share attributable to
Edison International
SCE
$
1.16
$
1.26
$
(0.10
)
$
3.84
$
2.23
$
1.61
Edison International Parent and Other
(0.17
)
(0.17
)
—
(0.72
)
(0.62
)
(0.10
)
Edison International
0.99
1.09
(0.10
)
3.12
1.61
1.51
Less: Non-core items
SCE
(0.29
)
(0.10
)
(0.19
)
(1.73
)
(3.10
)
1.37
Edison International Parent and Other
—
0.04
(0.04
)
0.09
0.08
0.01
Total non-core items
(0.29
)
(0.06
)
(0.23
)
(1.64
)
(3.02
)
1.38
Core earnings (loss) per share
SCE
1.45
1.36
0.09
5.57
5.33
0.24
Edison International Parent and Other
(0.17
)
(0.21
)
0.04
(0.81
)
(0.70
)
(0.11
)
Edison International
$
1.28
$
1.15
$
0.13
$
4.76
$
4.63
$
0.13
Note: Diluted earnings were $0.98 and $1.08 per share for the
three months ended December 31, 2023 and 2022, respectively.
Diluted earnings were $3.11 and $1.60 per share for the twelve
months ended December 31, 2023 and 2022, respectively.
Fourth Quarter Reconciliation
of Basic Earnings Per Share to Core Earnings (in millions)
Three months ended
Year ended
December 31,
December 31,
(in millions)
2023
2022
Change
2023
2022
Change
Net income (loss) attributable to Edison
International
SCE
$
445
$
478
$
(33
)
$
1,474
$
847
$
627
Edison International Parent and Other
(67
)
(63
)
(4
)
(277
)
(235
)
(42
)
Edison International
378
415
(37
)
1,197
612
585
Less: Non-core items
SCE1,2,3,4,5,6,7,8,9,10
(112
)
(40
)
(72
)
(661
)
(1,182
)
521
Edison International Parent and
Other11
—
18
(18
)
33
29
4
Total non-core items
(112
)
(22
)
(90
)
(628
)
(1,153
)
525
Core earnings (losses)
SCE
557
518
39
2,135
2,029
106
Edison International Parent and Other
(67
)
(81
)
14
(310
)
(264
)
(46
)
Edison International
$
490
$
437
$
53
$
1,825
$
1,765
$
60
- Includes charges for 2017/2018 Wildfire/Mudslide Events claims
and expenses, net of recoveries of $74 million ($53 million
after-tax) and $11 million ($8 million after-tax) for the three
months ended December 31, 2023 and 2022, and $634 million ($457
million after-tax) and $1.2 billion ($899 million after-tax) for
the twelve months ended December 31, 2023 and 2022,
respectively.
- Includes amortization of SCE's Wildfire Insurance Fund expenses
of $54 million ($39 million after-tax) for both the three months
ended December 2023 and 2022, and $213 million ($153 million
after-tax) and $214 million ($154 million after-tax) for the twelve
months ended December 31, 2023 and 2022, respectively.
- Includes charges for wildfire claims and expenses, net of
expected recoveries from FERC customers, related to the Post-2018
Wildfires of $27 million ($19 million after-tax) and $34 million
($25 million after-tax) for the three months and the twelve months
ended December 31, 2023, respectively.
- 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 twelve months ended December 31, 2023.
- Includes a charge related to customer cancellations of certain
ECS data services of $17 million ($12 million after-tax) for the
twelve months ended December 31, 2023.
- 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 twelve months ended
December 31, 2023 and 2022, respectively.
- Includes a charge of $81 million ($64 million after-tax)
related to the Presiding Officer's Decision ("POD") in September
2022 related to SCE's Upstream Lighting Program for the twelve
months ended December 31, 2022.
- Includes impairment charges of $64 million ($46 million
after-tax) for the twelve months ended December 31, 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.
- Includes a charge related to organizational realignment
services of $14 million ($10 million after-tax) for the twelve
months ended December 31, 2022.
- Includes a gain of $10 million ($7 million after-tax) from
SCE's sale of San Onofre nuclear fuel for both the three months and
the twelve months ended December 31, 2022.
- Includes net earnings related to customer revenues for an EIS
insurance contract offset by expected wildfire claims insured by
EIS of $23 million ($18 million after-tax) for the three months
ended December 31, 2022, and $42 million ($33 million after-tax)
and $36 million ($29 million after-tax) for the twelve months ended
December 31, 2023 and 2022, respectively.
Consolidated Statements of
Income
Edison International
Year ended
December 31,
(in millions, except per-share
amounts)
2023
2022
Operating revenue
$
16,338
$
17,220
Purchased power and fuel
5,486
6,375
Operation and maintenance
4,138
4,724
Wildfire-related claims, net of insurance
recoveries
667
1,313
Wildfire Insurance Fund expense
213
214
Depreciation and amortization
2,635
2,561
Property and other taxes
571
501
Impairment, net of other operating
income
1
49
Total operating expenses
13,711
15,737
Operating income
2,627
1,483
Interest expense
(1,612
)
(1,169
)
Other income, net
500
348
Income before income taxes
1,515
662
Income tax expense (benefit)
108
(162
)
Net income
1,407
824
Less: Preference stock dividend
requirements of SCE
123
107
Preferred stock dividend requirements of
Edison International
87
105
Net income attributable to Edison
International common shareholders
$
1,197
612
Basic earnings per share:
Weighted average shares of common stock
outstanding
383
381
Basic earnings per common share
attributable to Edison International common shareholders
$
3.12
$
1.61
Diluted earnings per share:
Weighted average shares of common stock
outstanding, including effect of dilutive securities
385
383
Diluted earnings per common share
attributable to Edison International common shareholders
$
3.11
$
1.60
Consolidated Balance Sheets
Edison International
December 31,
(in millions)
2023
2022
ASSETS
Cash and cash equivalents
$
345
$
914
Receivables, less allowances of $360 and
$347 for uncollectible accounts at respective dates
2,016
1,695
Accrued unbilled revenue
742
641
Inventory
527
474
Prepaid expenses
112
248
Regulatory assets
2,524
2,497
Wildfire Insurance Fund contributions
204
204
Other current assets
341
397
Total current assets
6,811
7,070
Nuclear decommissioning trusts
4,173
3,948
Other investments
54
55
Total investments
4,227
4,003
Utility property, plant and equipment,
less accumulated depreciation and amortization of $12,910 and
$12,260 at respective dates
55,877
53,274
Nonutility property, plant and equipment,
less accumulated depreciation of $114 and $106 at respective
dates
207
212
Total property, plant and
equipment
56,084
53,486
Regulatory assets (include $1,558 and $834
related to Variable Interest Entities "VIEs" at respective
dates)
8,897
8,181
Wildfire Insurance Fund contributions
1,951
2,155
Operating lease right-of-use assets
1,221
1,442
Long-term insurance receivables
501
465
Other long-term assets
2,066
1,239
Total long-term assets
14,636
13,482
Total assets
$
81,758
$
78,041
Consolidated Balance Sheets
Edison International
December 31,
(in millions, except share amounts)
2023
2022
LIABILITIES AND EQUITY
Short-term debt
$
1,077
$
2,015
Current portion of long-term debt
2,697
2,614
Accounts payable
1,983
2,359
Wildfire-related claims
30
121
Customer deposits
177
167
Regulatory liabilities
763
964
Current portion of operating lease
liabilities
120
506
Other current liabilities
1,751
1,601
Total current liabilities
8,598
10,347
Long-term debt (include $1,515 and
$809 related to VIEs at respective dates)
30,316
27,025
Deferred income taxes and credits
6,672
6,149
Pensions and benefits
415
422
Asset retirement obligations
2,666
2,754
Regulatory liabilities
9,420
8,211
Operating lease liabilities
1,101
936
Wildfire-related claims
1,368
1,687
Other deferred credits and other long-term
liabilities
3,258
2,988
Total deferred credits and other
liabilities
24,900
23,147
Total liabilities
63,814
60,519
Preferred stock (50,000,000 shares
authorized; 1,159,317 and 1,250,000 shares of Series A and 532,454
and 750,000 shares of Series B issued and outstanding at respective
dates)
1,673
1,978
Common stock, no par value (800,000,000
shares authorized; 383,924,912 and 382,208,498 shares issued and
outstanding at respective dates)
6,338
6,200
Accumulated other comprehensive loss
(9
)
(11
)
Retained earnings
7,499
7,454
Total Edison International's
shareholders' equity
15,501
15,621
Noncontrolling interests – preference
stock of SCE
2,443
1,901
Total equity
17,944
17,522
Total liabilities and equity
$
81,758
$
78,041
Consolidated Statements of Cash
Flows
Edison International
Years ended December 31,
(in millions)
2023
2022
2021
Cash flows from operating
activities:
Net income
$
1,407
$
824
$
925
Adjustments to reconcile to net cash
provided by operating activities:
Depreciation and amortization
2,721
2,633
2,288
Allowance for equity during
construction
(157
)
(137
)
(118
)
Impairment and other expense
1
54
71
Deferred income taxes
108
(177
)
43
Wildfire Insurance Fund amortization
expense
213
214
215
Other
57
75
40
Nuclear decommissioning trusts
(180
)
(123
)
(256
)
Proceeds from Morongo Transmission LLC
—
—
400
Contributions to Wildfire Insurance
Fund
(95
)
(95
)
(95
)
Changes in operating assets and
liabilities:
Receivables
(349
)
(252
)
(514
)
Inventory
(63
)
(58
)
(21
)
Accounts payable
(408
)
367
138
Tax receivables and payables
9
18
13
Other current assets and liabilities
185
207
(321
)
Derivative assets and liabilities, net
(174
)
115
(12
)
Regulatory assets and liabilities, net
576
(51
)
(720
)
Wildfire-related insurance receivable
(36
)
(390
)
708
Wildfire-related claims
(410
)
(56
)
(2,648
)
Other noncurrent assets and
liabilities
(4
)
48
(123
)
Net cash provided by operating
activities
3,401
3,216
11
Cash flows from financing
activities:
Long-term debt issued, net of discount and
issuance costs of $54, $62 and $43 for the respective years
5,121
5,971
5,412
Long-term debt repaid
(2,498
)
(1,085
)
(1,037
)
Short-term debt issued
1,076
1,000
2,654
Short-term debt repaid
(2,407
)
(1,543
)
(2,255
)
Common stock issued
20
13
32
Preferred and preference stock issued, net
of issuance cost
542
—
1,977
Preferred stock repurchased
(289
)
—
—
Commercial paper borrowing (repayments),
net
1,102
(317
)
(254
)
Dividends and distribution to
noncontrolling interests
(117
)
(110
)
(106
)
Common stock dividends paid
(1,112
)
(1,050
)
(988
)
Preferred stock dividends paid
(108
)
(99
)
(35
)
Other
117
101
45
Net cash provided by financing
activities
1,447
2,881
5,445
Cash flows from investing
activities:
Capital expenditures
(5,448
)
(5,778
)
(5,505
)
Proceeds from sale of nuclear
decommissioning trust investments
4,597
4,177
3,961
Purchases of nuclear decommissioning trust
investments
(4,417
)
(4,054
)
(3,705
)
Other
35
81
98
Net cash used in investing
activities
(5,233
)
(5,574
)
(5,151
)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(385
)
523
305
Cash, cash equivalents and restricted cash
at beginning of year
917
394
89
Cash, cash equivalents and restricted
cash at end of year
$
532
$
917
$
394
View source
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