FOR IMMEDIATE RELEASE
Investor relations contact:
Sam Ramraj, (626) 302-2540
Media relations contact:
Charles Coleman, (626) 302-7982
Edison International Reports Fourth Quarter and Full-Year 2018 Results
ROSEMEAD, Calif., February 28, 2019 - Edison International (NYSE: EIX) today reported fourth quarter 2018 net loss of $1.4 billion, or $4.39 loss per share, compared to net loss of $545 million, or $1.67 loss per share, in the fourth quarter 2017. As adjusted, fourth quarter 2018 core earnings were $305 million, or $0.94 per share, compared to core earnings of $357 million, or $1.10 per share, in the fourth quarter 2017.
Southern California Edison (SCE) is awaiting a proposed decision from the California Public Utilities Commission (CPUC) on its 2018 General Rate Case (GRC). Consequently, during the fourth quarter 2018, SCE recognized revenue from CPUC activities largely based on 2017 authorized base revenue requirements included in customer rates with reserves taken for known items, including the July 2017 cost of capital decision and the Tax Cuts and Jobs Act (Tax Reform). The revenue requirement ultimately adopted by the CPUC will be retroactive to January 1, 2018.
SCE's fourth quarter 2018 earnings decreased by $1.3 billion, or $4.05 per share, from the fourth quarter 2017, consisting of $44 million, or $0.14 per share, of lower core earnings and $1.3 billion, or $3.91 per share, of higher non-core losses. The reduction in core earnings was due to the impact of the July 2017 cost of capital decision on GRC revenue, higher operation and maintenance expenses related to vegetation management and higher net financing costs. The higher non-core losses for the fourth quarter 2018 were mainly related to the $1.8 billion, or $5.60 per share, after-tax charge recorded at SCE related to wildfire-related claims, net of recoveries, partially offset by the absence of the $448 million, or $1.38 per share, after-tax impairment and other charges related to the Revised San Onofre Settlement Agreement recorded in the fourth quarter 2017.
Edison International Parent and Other’s fourth quarter 2018 losses from continuing operations decreased by $401 million, or $1.23 per share, compared to fourth quarter 2017, consisting of $8 million, or $0.02 per share, of higher core losses and $409 million, or $1.25 per share, of lower non-core losses. The increase in core losses was primarily due to a $13 million, or $0.04 per share, after-tax goodwill impairment charge on the Edison Energy reporting unit, partially offset by income of $11 million, or $0.03 per share, related to a California tax audit settlement. The lower non-core losses for the fourth quarter 2018 were primarily related to the absence of a $433 million, or $1.33 per share, write-down from the re-measurement of deferred taxes as a result of Tax Reform recorded in 2017.
Additionally, Edison International recorded $34 million of income, or $0.10 per share, from discontinued operations in the fourth quarter 2018.
“Edison International’s performance in 2018 was negatively impacted by wildfires in our service territory and a charge for liabilities related to the Southern California wildfires and mudslides,” said Pedro Pizarro, president and chief executive officer of Edison International. “Devastating wildfires have become a regular occurrence in California and mitigating this threat continues to be our top priority. We are working closely with State, county and municipal leaders, as well as the business community, to develop responsible, regional and statewide solutions to address the ongoing wildfire risk.”
The following information was filed by Edison International (EIX) on Thursday, February 28, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.