01—Abstract
Summary
Summary of the 10-Q filed April 30, 2024. Cited figures are marked; the original filing is the authoritative source.
Edison International (EIX) reported a net loss of $11 milliona, or $(0.03) per share, for the first quarter of 2024, a significant decrease from a net income of $310 million, or $0.81 per share, in the same period last year.
This decline was primarily driven by substantial non-core charges related to wildfire claims and expenses, particularly from the 2017/2018 Wildfire/Mudslide Events, which increased significantly quarter-over-quarter. Despite the net loss, the company's core earnings were $438 millionb, a slight increase from $416 million in the prior year, driven by higher revenues authorized for Southern California Edison (SCE) due to rate increases and cost of capital adjustments. SCE continues to manage its capital program, with expenditures of $1.2 billion in the quarter.
The company is also progressing with its 2025 General Rate Case, with updated revenue requirement proposals being considered. Investors should monitor the ongoing wildfire litigation and the company's ability to recover related costs through regulated rates, as this remains a significant factor impacting financial results.
02—Key points
Key Highlights
- EIX reported a net loss of $11 million for Q1 2024, down from a net income of $310 million in Q1 2023, largely due to increased wildfire-related charges.
- Core earnings, a non-GAAP measure, increased to $438 million in Q1 2024 from $416 million in Q1 2023, driven by SCE's improved revenue.
- Wildfire claims and expenses, particularly for the 2017/2018 events, significantly increased, contributing $467 million in non-core charges in Q1 2024 compared to $90 million in Q1 2023.
- SCE's revenue saw a boost due to higher authorized rates and cost of capital adjustments, reflecting regulatory approvals for operational and capital investments.
- Capital expenditures for SCE totaled $1.2 billion in the first quarter of 2024, supporting ongoing infrastructure investments.
- The company provided an update on its 2025 General Rate Case, with ongoing discussions regarding revenue requirements proposed by SCE and intervenors.
- SCE continues to face significant liabilities from past wildfires, with estimated losses for the 2017/2018 events increasing by $490 million in the quarter, though regulatory recovery is being pursued.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed April 30, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $4.08B$3.97B | +2.8% |
| Operating Expenses | $3.83B$3.35B | +14.6% |
| Operating Income | $245.00M$620.00M | −60.5% |
| Interest Expense | $444.00M$361.00M | +23.0% |
| Net Income | $52.00M$365.00M | −85.8% |
| EPS (Basic) | $-0.03$0.81 | −103.7% |
| EPS (Diluted) | $-0.03$0.81 | −103.7% |
| Shares Outstanding (Basic) | 385.00M383.00M | +0.5% |
| Shares Outstanding (Diluted) | 385.00M384.00M | +0.3% |
05—Questions
Frequently Asked Questions
What was the primary driver of the decrease in net income compared to the prior year's first quarter?
The primary driver of the decrease in net income was a significant increase in non-core charges, particularly those related to wildfire claims and expenses stemming from the 2017/2018 Wildfire/Mudslide Events. These charges amounted to $467 million in the first quarter of 2024, compared to $90 million in the same period of 2023.
How did Edison International's core earnings perform, and what contributed to this performance?
Edison International's core earnings (a non-GAAP measure) increased to $438 million in the first quarter of 2024, up from $416 million in the first quarter of 2023. This improvement was primarily driven by higher revenues authorized for Southern California Edison (SCE) due to rate increases implemented under Track 4 and adjustments from the cost of capital mechanism.
What is the current status of Edison International's wildfire-related liabilities and potential recoveries?
Edison International and SCE continue to manage significant liabilities from past wildfires. For the 2017/2018 Wildfire/Mudslide Events, estimated losses increased by $490 million in the quarter, reaching $1.03 billion in accrued losses as of March 31, 2024. SCE is seeking regulatory approval for cost recovery through electric rates, but substantial uncertainty remains regarding CPUC-jurisdictional recovery for fires predating AB 1054. Recoveries are also sought through FERC rates.
What are the key capital expenditure and rate case developments mentioned in the report?
SCE invested $1.2 billion in capital expenditures during the first quarter of 2024, supporting its ongoing capital program. The company also provided an update on its 2025 General Rate Case, noting that SCE has updated its test year 2025 revenue requirement request to approximately $10.1 billion, following intervenor testimony. The proceedings are ongoing.
06—Continue