SOUTHERN CALIFORNIA EDISON 8K Edison International Reports Second Quarter 2022 Results | SCE-PN 28 Jul 22

Exhibit 99.1


		NEWS


FOR IMMEDIATE RELEASE	Investor Relations: Sam Ramraj, (626) 302-2540
	Media Contact: Jeff Monford, (626) 476-8120

Edison International Reports Second Quarter 2022 Results

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Second Quarter 2022 GAAP earnings per share of $0.63; Core EPS of $0.94

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Installed more than 3,500 circuit miles of covered conductor to-date, just 3.5 years after initiating program

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Reaffirms 2022 EPS guidance of $4.40–4.70. Also reiterates long-term EPS growth rate target of 5–7%

ROSEMEAD, Calif., July 28, 2022 — Edison International (NYSE: EIX) today reported second quarter 2022 net income of $241 million, or $0.63 per share, compared to net income of $318 million, or $0.84 per share, in the second quarter of 2021. As adjusted, second quarter 2022 core earnings were $357 million, or $0.94 per share, compared to core earnings of $356 million, or $0.94 per share, in the second quarter of 2021.

Southern California Edison’s (SCE) second quarter 2022 core earnings per share (EPS) increased year-over-year, primarily due to the adoption of the 2021 General Rate Case final decision in the third quarter of 2021, partially offset by higher operation and maintenance expenses.

Edison International Parent and Other's second quarter 2022 loss per share increased year-over-year primarily due to higher preferred dividends and unrealized losses on investment in 2022 compared to unrealized gains in 2021.

“SCE has made tremendous progress in wildfire mitigation, achieving a significant grid hardening milestone of replacing over 3,500 circuit miles of bare wire with covered conductor in just over three and a half years,” said Pedro J. Pizarro, president and CEO of Edison International. “Further, the utility plans to continue its current pace of installing about 1,200 miles per year of covered conductor for the next couple of years. I am confident that SCE’s covered conductor program has and will continue to substantially improve safety for customers.”

Pizarro added, “Investing in wildfire risk mitigation is a core component in adapting to climate change. We also have a continuing focus on sustainability, since this underlies the company’s strategy. I’m proud of the meaningful progress we make every year to advance our clean energy strategy and provide value to our stakeholders. One highlight is that SCE has the lowest system average rate among the large California IOUs, primarily due to more than a decade of committed focus on operational excellence and cost management.”

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. Please see the attached tables for a reconciliation of core earnings to basic GAAP earnings.

Edison International Reports Second Quarter 2022 Financial Results

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2022 Earnings Guidance

The company reaffirmed its earnings guidance range for 2022 as summarized in the following chart. See the presentation accompanying the company’s conference call for further information and assumptions.

2022 Earnings Guidance

as of May 3, 2022

as of July 28, 2022

Low

High

Low

High

EIX Basic EPS

3.55

3.85

3.25

3.55

Less: Non-core Items*

(0.85)

(1.15)

EIX Core EPS

4.40

4.70

4.40

4.70

* There were ($439) million, or ($1.15) per share of non-core items recorded for the six months ended June 30, 2022, calculated based on an assumed weighted average share count for 2022. Basic EIX EPS guidance only incorporates non-core items to June 30, 2022.

Second Quarter 2022 Earnings Conference Call and Webcast Details


When:		Thursday, July 28, 2022, 1:30 – 2:30 p.m. (Pacific Time)
Telephone Numbers:		1-888-673-9780 (US) and 1-312-470-0178 (Int'l) - Passcode: Edison
Telephone Replay:		1-866-430-4723 (US) and 1-203-369-0925 (Int’l) - Passcode: 4276
		Telephone replay available through August 12, 2022 at 6:00 p.m. (Pacific Time)
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-Q 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 engaged in the business of providing integrated decarbonization and energy solutions to commercial, industrial and institutional customers.

Edison International Reports Second Quarter 2022 Financial Results

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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 release 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 release, 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, including uninsured wildfire-related and debris flow-related costs, costs incurred to mitigate the risk of utility equipment causing future wildfires, costs incurred as a result of the COVID-19 pandemic, and increased labor and materials costs due to supply chain constraints and inflation;

•

ability of SCE to implement its Wildfire Mitigation Plan and capital program;

•

risks of regulatory or legislative restrictions that would limit SCE's ability to implement Public Safety Power Shutoff ("PSPS") when conditions warrant or would otherwise limit SCE's operational PSPS practices;

•

risks associated with implementing PSPS, including regulatory fines and penalties, claims for damages and reputational harm;

•

ability of SCE to maintain a valid safety certification;

•

ability to obtain sufficient insurance at a reasonable cost, including insurance relating to wildfire-related claims, and to recover the costs of such insurance or, in the event liabilities exceed insured amounts, the ability to recover uninsured losses from customers or other parties;

•

extreme weather-related incidents (including events caused, or exacerbated, by climate change, such as wildfires, debris flows, 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, operational issues (such as rotating outages and issues due to damaged infrastructure), PSPS activations and unanticipated costs;

•

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

Edison International Reports Second Quarter 2022 Financial Results

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the CPUC's interpretation of and actions under AB 1054, including its interpretation of the prudency standard established under AB 1054;

•

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 California Public Utilities Commission, the Federal Energy Regulatory Commission, the 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;

•

cost and availability of labor, equipment and materials, including as a result of supply chain constraints;

•

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;

•

pandemics, such as COVID-19, and other events that cause regional, statewide, national or global disruption, which could impact, among other things, Edison International's and SCE's business, operations, cash flows, liquidity and/or financial results and cause Edison International and SCE to incur unanticipated costs;

•

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;

•

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, changes in the California Independent System Operator's transmission plans, and governmental approvals; and

•

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.

Additional information about risks and uncertainties is contained in Edison International and SCE’s most recent combined Form 10-Q and Form 10-K filed with the Securities and Exchange Commission, including the "Risk Factors" sections. Readers are urged to read this entire release as well as the most recent Form 10-Q and Form 10-K (including information incorporated by reference), 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.

Edison International Reports Second Quarter 2022 Financial Results

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Second Quarter Reconciliation of Basic Earnings Per Share to Core Earnings Per Share


	Three months ended						Six months ended
	June 30,						June 30,
	2022		2021		Change		2022		2021		Change
Earnings (loss) per share attributable to Edison International
SCE	$	0.79	$	0.95	$	(0.16)	$	1.18	$	1.73	$	(0.55)
Edison International Parent and Other		(0.16)		(0.11)		(0.05)		(0.33)		(0.21)		(0.12)
Edison International		0.63		0.84		(0.21)		0.85		1.52		(0.67)
Less: Non-core items
SCE		(0.31)		(0.10)		(0.21)		(1.15)		(0.21)		(0.94)
Edison International Parent and Other		—		—		—		—		—		—
Total non-core items		(0.31)		(0.10)		(0.21)		(1.15)		(0.21)		(0.94)
Core earnings (losses)
SCE		1.10		1.05		0.05		2.33		1.94		0.39
Edison International Parent and Other		(0.16)		(0.11)		(0.05)		(0.33)		(0.21)		(0.12)
Edison International	$	0.94	$	0.94	$	—	$	2.00	$	1.73	$	0.27

Note: Diluted earnings were $0.63 and $0.84 per share for the three months ended June 30, 2022 and 2021, respectively. Diluted earnings were $0.85 and $1.52 per share for the six months ended June 30, 2022 and 2021, respectively.

Second Quarter Reconciliation of Basic Earnings Per Share to Core Earnings (in millions)


	Three months ended						Six months ended
	June 30,						June 30,
(in millions)	2022		2021		Change		2022		2021		Change
Net income (loss) attributable to Edison International
SCE	$	302	$	359	$	(57)	$	449	$	655	$	(206)
Edison International Parent and Other		(61)		(41)		(20)		(124)		(78)		(46)
Edison International		241		318		(77)		325		577		(252)
Less: Non-core items
SCE^{1,2,3,4,5,6,7}		(116)		(38)		(78)		(439)		(80)		(359)
Edison International Parent and Other		—		—		—		—		—		—
Total non-core items		(116)		(38)		(78)		(439)		(80)		(359)
Core earnings (losses)
SCE		418		397		21		888		735		153
Edison International Parent and Other		(61)		(41)		(20)		(124)		(78)		(46)
Edison International	$	357	$	356	$	1	$	764	$	657	$	107

Includes amortization of SCE’s Wildfire Insurance Fund expenses of $53 million ($38 million after tax) and $54 million ($39 million after tax) for the three months ended June 30, 2022 and 2021, respectively. It also includes $106 million ($76 million after tax) and $107 million ($77 million after tax) for the six months ended June 30, 2022 and 2021, respectively.

Includes charges for 2017/2018 Wildfire/Mudslide Events claims and expenses, net of recoveries of $8 million ($6 million after tax) and $9 million ($6 million after tax) recorded for the three months ended June 30, 2022 and 2021, respectively. Includes charges of $404 million ($291 million after tax) and $14 million ($10 million after tax) for the six months ended June 30, 2022 and 2021, respectively.

³	Includes GRC track 3 impairment of $17 million ($12 million after tax) for both the three months ended and the six months ended June 30, 2022.

⁴	Includes CSRP impairment of $47 million ($34 million after tax) for both the three months ended and the six months ended June 30, 2022.

⁵	Includes charge for employment litigation matter, net of recoveries, of $23 million ($16 million after tax) for both the three months ended and the six months ended June 30, 2022.

Edison International Reports Second Quarter 2022 Financial Results

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⁶	Includes organizational realignment charge of $14 million ($10 million after tax) for both the three months ended and the six months ended June 30, 2022.

⁷	Includes gain from sale of San Onofre nuclear fuel of $10 million ($7 million after tax) for both the three months ended and the six months ended June 30, 2021.

Edison International Reports Second Quarter 2022 Financial Results

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Consolidated Statements of Income	Edison International

	Three months ended				Six months ended
	June 30,				June 30,
(in millions, except per-share amounts)	2022		2021		2022		2021
Total operating revenue	$	4,008	$	3,315	$	7,976	$	6,275
Purchased power and fuel		1,304		1,283		2,341		2,296
Operation and maintenance		1,361		754		2,848		1,595
Wildfire-related claims, net of insurance recoveries		2		—		427		3
Wildfire Insurance Fund expense		53		54		106		107
Depreciation and amortization		601		533		1,184		1,058
Property and other taxes		120		117		246		243
Impairment, net of other operating income		63		(11)		61		(11)
Total operating expenses		3,504		2,730		7,213		5,291
Operating income		504		585		763		984
Interest expense		(271)		(232)		(517)		(449)
Other income		66		76		134		148
Income before income taxes		299		429		380		683
Income tax expense (benefit)		7		68		(48)		32
Net income		292		361		428		651
Preference stock dividend requirements of SCE		25		26		51		53
Preferred stock dividend requirement of Edison International		26		17		52		21
Net income attributable to Edison International common shareholders	$	241	$	318	$	325	$	577
Basic earnings per share:
Weighted average shares of common stock outstanding		381		380		381		379
Basic earnings per common share attributable to Edison International common shareholders	$	0.63	$	0.84	$	0.85	$	1.52
Diluted earnings per share:
Weighted average shares of common stock outstanding, including effect of dilutive securities		383		380		382		380
Diluted earnings per common share attributable to Edison International common shareholders	$	0.63	$	0.84	$	0.85	$	1.52

Edison International Reports Second Quarter 2022 Financial Results

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Consolidated Balance Sheets	Edison International

	June 30,		December 31,
(in millions)	2022		2021
ASSETS
Cash and cash equivalents	$	122	$	390
Receivables, less allowances of $347 and $193 for uncollectible accounts at respective dates		1,547		1,398
Accrued unbilled revenue		1,096		794
Inventory		438		420
Prepaid expenses		50		258
Regulatory assets		2,030		1,778
Wildfire Insurance Fund contributions		204		204
Other current assets		166		249
Total current assets		5,653		5,491
Nuclear decommissioning trusts		4,039		4,870
Marketable securities		6		12
Other investments		52		39
Total investments		4,097		4,921
Utility property, plant and equipment, less accumulated depreciation and amortization of $11,926 and $11,407 at respective dates		51,485		50,497
Nonutility property, plant and equipment, less accumulated depreciation of $106 and $98 at respective dates		210		203
Total property, plant and equipment		51,695		50,700
Receivables, less allowances of $34 and $116 uncollectible accounts at respective dates		21		122
Regulatory assets (includes $845 and $325 related to Variable Interest Entities "VIEs" at respective dates)		7,854		7,660
Wildfire Insurance Fund contributions		2,258		2,359
Operating lease right-of-use assets		1,751		1,932
Long-term insurance receivable		214		75
Other long-term assets		1,502		1,485
Total long-term assets		13,600		13,633

Total assets	$	75,045	$	74,745

Edison International Reports Second Quarter 2022 Financial Results

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Consolidated Balance Sheets	Edison International

	June 30,		December 31,
(in millions, except share amounts)	2022		2021
LIABILITIES AND EQUITY
Short-term debt	$	1,985	$	2,354
Current portion of long-term debt		2,175		1,077
Accounts payable		2,080		2,002
Wildfire-related claims		86		131
Customer deposits		165		193
Regulatory liabilities		523		603
Current portion of operating lease liabilities		607		582
Other current liabilities		1,641		1,667
Total current liabilities		9,262		8,609
Long-term debt (Includes $823 and $314 related to VIEs at respective dates)		25,143		24,170
Deferred income taxes and credits		5,889		5,740
Pensions and benefits		471		496
Asset retirement obligations		2,837		2,772
Regulatory liabilities		8,376		8,981
Operating lease liabilities		1,144		1,350
Wildfire-related claims		1,169		1,733
Other deferred credits and other long-term liabilities		3,079		3,105
Total deferred credits and other liabilities		22,965		24,177
Total liabilities		57,370		56,956
Commitments and contingencies
Preferred stock (50,000,000 shares authorized; 1,250,000 shares of Series A and 750,000 shares of Series B issued and outstanding at respective dates)		1,977		1,977
Common stock, no par value (800,000,000 shares authorized; 381,397,456 and 380,378,145 shares issued and outstanding at respective dates)		6,129		6,071
Accumulated other comprehensive loss		(48)		(54)
Retained earnings		7,716		7,894
Total Edison International's shareholders' equity		15,774		15,888
Noncontrolling interests – preference stock of SCE		1,901		1,901
Total equity		17,675		17,789

Total liabilities and equity	$	75,045	$	74,745

Edison International Reports Second Quarter 2022 Financial Results

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Consolidated Statements of Cash Flows	Edison International

	Six months ended June 30,
(in millions)	2022		2021
Cash flows from operating activities:
Net income	$	428	$	651
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization		1,216		1,090
Allowance for equity during construction		(61)		(60)
Impairment and other expense (income)		64		(11)
Deferred income taxes		(48)		30
Wildfire Insurance Fund amortization expense		106		107
Other		40		11
Nuclear decommissioning trusts		(65)		(127)
Changes in operating assets and liabilities:
Receivables		(81)		(293)
Inventory		(19)		(3)
Accounts payable		143		128
Tax receivables and payables		58		91
Other current assets and liabilities		(229)		(244)
Regulatory assets and liabilities, net		372		(574)
Wildfire-related insurance receivable		(139)		708
Wildfire-related claims		(609)		(2,852)
Other noncurrent assets and liabilities		62		(26)
Net cash provided by (used in) operating activities		1,238		(1,374)
Cash flows from financing activities:
Long-term debt issued, plus premium and net of discount and issuance costs of $34 and $36 for the respective periods		2,949		3,953
Long-term debt repaid		(372)		(991)
Short-term debt issued		600		2,106
Short-term debt repaid		(993)		(1,355)
Common stock issued		6		25
Preferred stock issued, net		—		1,235
Commercial paper repayments, net of borrowing		(497)		(656)
Dividends and distribution to noncontrolling interests		(57)		(53)
Common stock dividends paid		(524)		(494)
Preferred stock dividends paid		(46)		—
Other		53		12
Net cash provided by financing activities		1,119		3,782
Cash flows from investing activities:
Capital expenditures		(2,708)		(2,593)
Proceeds from sale of nuclear decommissioning trust investments		2,106		2,542
Purchases of nuclear decommissioning trust investments		(2,041)		(2,415)
Other		15		54
Net cash used in investing activities		(2,628)		(2,412)
Net decrease in cash, cash equivalents and restricted cash		(271)		(4)
Cash, cash equivalents and restricted cash at beginning of period		394		89
Cash, cash equivalents and restricted cash at end of period	$	123	$	85

SOUTHERN CALIFORNIA EDISON (SCE-PN) 8-KEdison International Reports Second Quarter 2022 Results