10-QPeriod: Q1 FY2024

EDISON INTERNATIONAL Quarterly Report for Q1 Ended Mar 31, 2024

Filed April 30, 2024For Securities:EIX

Summary

Edison International (EIX) reported a net loss of $11 million, 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 million, 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.

Financial Highlights

48 data points
Beta

Revenue

$4.08B

Net Income

$52.00M

1.3% Net Margin

EPS (Diluted)

$-0.03

Total Assets

$83.60B

Cash & Equivalents

$992.00M

Free Cash Flow

-$236.00M

Financial Statements
Beta
Revenue$4.08B
Operating Expenses$3.83B
Operating Income$245.00M
Interest Expense$444.00M
Net Income$52.00M
EPS (Basic)$-0.03
EPS (Diluted)$-0.03
Shares Outstanding (Basic)385.00M
Shares Outstanding (Diluted)385.00M

Key Highlights

  • 1EIX 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.
  • 2Core earnings, a non-GAAP measure, increased to $438 million in Q1 2024 from $416 million in Q1 2023, driven by SCE's improved revenue.
  • 3Wildfire 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.
  • 4SCE's revenue saw a boost due to higher authorized rates and cost of capital adjustments, reflecting regulatory approvals for operational and capital investments.
  • 5Capital expenditures for SCE totaled $1.2 billion in the first quarter of 2024, supporting ongoing infrastructure investments.
  • 6The company provided an update on its 2025 General Rate Case, with ongoing discussions regarding revenue requirements proposed by SCE and intervenors.
  • 7SCE 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.

Frequently Asked Questions

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.

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.

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.

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.