ROSEMEAD, Calif. - Edison International (NYSE: EIX) today reported third quarter 2017 net income of $470 million, or $1.44 per share, compared to $421 million, or $1.29 per share, in the third quarter of 2016.
There was no impact from non-core items in the third quarter 2017 and third quarter 2016 results.
Southern California Edison's (SCE) third quarter 2017 net income increased by $30 million, or $0.09 per share, from the third quarter 2016 primarily due to the escalation mechanism set forth in the 2015 General Rate Case (GRC) decision.
Edison International Parent and Other's third quarter 2017 earnings from continuing operations increased by $19 million, or $0.06 per share, compared to third quarter 2016. The increase was primarily related to higher income tax benefits resulting from net operating loss carrybacks from the filing of the 2016 tax returns in 2017.
'Based on the continued strong performance at SCE and tax benefits we have received throughout the year, we have increased Edison International's 2017 earnings per share guidance range to $4.27-$4.37,' said Pedro Pizarro, president and chief executive officer of Edison International. 'Edison International will strengthen and grow our business and lead the transformation of the industry by focusing on opportunities in clean energy, efficient electrification, a modernized and more reliable grid, and enabling customers' technology choices.'
For the nine months ended September 30, 2017, Edison International reported net income of $1.1 billion, or $3.41 per share, compared to $982 million, or $3.01 per share, during the same period in 2016. Edison International's core earnings were $1.1 billion, or $3.41 per share, compared to $978 million, or $3.00 per share, in the year-to-date period in 2016.
SCE's net income for the nine months ended September 30, 2017 increased $73 million, or $0.23 per share, from the same period in 2016, primarily related to an increase in revenue from the escalation mechanism set forth in the 2015 GRC decision and lower operation and maintenance expenses, partially offset by a reduction in CPUC revenue related to prior overcollections and higher net financing costs.
Edison International Parent and Other's losses from continuing operations for the nine months ended September 30, 2017 decreased by $54 million, or $0.17 per share, compared to the same period in 2016. Total core losses for the year-to-date period in 2017 decreased by $58 million, or $0.18 per share, compared to the same period in 2016. The decrease in core losses is primarily related to higher income tax benefits resulting from: stock option exercises, net operating loss carrybacks from the filing of the 2016 tax returns in 2017, and the 2017 settlement of federal income tax audits for 2007 - 2012.
Edison International's non-core items for the nine months ended September 30, 2017 included income of $1 million compared to income of $5 million, or $0.01 per share, for the same period in 2016 primarily related to losses (net of distributions) allocated to tax equity investors under the HLBV accounting method. Additionally, during the nine months ended September 30, 2016, Edison International recorded $1 million of losses from discontinued operations.
Edison International uses core earnings, which is a non-GAAP financial measure that adjusts for significant discrete items that management does not consider representative of ongoing earnings. Edison International management believes that core earnings provide more meaningful comparisons of performance from period to period.
2017 Earnings Guidance Increased
The company increased its earnings guidance for 2017 as summarized in the following chart.
A Note on 2016 Results
In March 2016, the Financial Accounting Standards Board issued a new accounting standard for employee share-based payments. Edison International adopted this accounting standard during the fourth quarter of 2016, effective January 1, 2016. Under this new standard, share-based payments may create a permanent difference between the amount of compensation expense recognized for book and tax purposes. The tax impact of this permanent difference is recognized in earnings in the period it is created. 2016 earnings were updated to reflect the implementation of the accounting standard for share-based payments effective January 1, 2016.
About Edison International
Edison International (NYSE: EIX), through its subsidiaries, is a generator and distributor of electric power, as well as a provider of energy services and technologies, including renewable energy. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison, one of the nation's largest electric utilities. Edison International is also the parent company of Edison Energy Group, a portfolio of competitive businesses that provide commercial and industrial customers with energy management and procurement services and distributed solar generation. Edison Energy Group companies are independent from Southern California Edison.
Tel: (626) 302-2540