What is the reason for the restatement of the financial statements?

Exelon Corporation restated its financial statements for the period ending September 30, 2001, to record previously unrecorded net realized and unrealized losses on investments held within its nuclear decommissioning trust funds.

How did the merger with Unicom and the subsequent corporate restructuring impact Exelon's financial results?

The merger with Unicom (completed October 20, 2000) and the corporate restructuring (in January 2001) significantly impacted Exelon's financial results. The merger led to a purchase accounting basis, and the restructuring separated regulated utility operations from competitive generation and other businesses. These events explain much of the year-over-year increase in revenues and net income, as well as changes in asset and liability structures across the consolidated entities.

What are the key financial trends observed in the reported period?

The company reported strong growth in operating revenues and net income for the nine-month period, driven by the combined operations post-merger and favorable operating conditions. Cash flow from operations also saw a substantial increase. However, operating expenses, particularly fuel and purchased power, also increased. The company also saw a significant increase in long-term debt and related interest expenses due to financing activities.

What are some of the significant litigation or contingent liabilities facing Exelon?

Exelon faces several significant legal and contingent liabilities. These include a complaint filed by Midwest Generation, LLC alleging anti-competitive practices, ongoing environmental remediation costs for former manufactured gas plant sites, and various other legal proceedings related to service interruptions, regulatory matters, and past operational activities. The company believes adequate reserves have been established for many of these matters, but significant liabilities could still arise.

EXC 10-Q Quarterly Report Q3 FY2001 — Revenue, Net Income, EPS

Summary

This filing for Exelon Corporation (EXC) for the period ending September 30, 2001, is an amendment to its previously filed 10-Q and includes restatements for previously unrecorded nuclear decommissioning trust fund losses. The company reports significant increases in net income and operating revenues for the nine-month period compared to the prior year, largely driven by the merger with Unicom and subsequent corporate restructuring. While overall revenue and income show growth, the company also faces ongoing litigation and regulatory scrutiny, particularly concerning service reliability and environmental matters. Key financial movements include a substantial increase in cash and cash equivalents, driven by strong operating cash flows, and significant debt financing activities. Investors should note the impact of the merger and restructuring on comparative financial results, the adoption of new accounting standards, and the company's ongoing efforts to manage operational costs and mitigate legal and environmental liabilities.

Key Highlights

1Exelon Corporation restated its September 30, 2001 financial statements due to previously unrecorded net realized and unrealized losses on nuclear decommissioning trust funds.
2Net income for the nine months ended September 30, 2001, increased significantly to $1,090 million, up from $540 million in the prior year, largely due to the impact of the merger with Unicom.
3Total operating revenues for the nine months ended September 30, 2001, increased to $11,759 million from $4,366 million in the prior year, reflecting the combined entities.
4The company experienced a substantial increase in cash and cash equivalents, rising from $526 million at December 31, 2000, to $1,377 million at September 30, 2001.
5Significant corporate restructuring occurred in January 2001, separating regulated energy delivery businesses from generation and other competitive businesses.
6The company is involved in various litigation matters, including a significant complaint by Midwest Generation, LLC and ongoing environmental remediation liabilities, particularly related to former manufactured gas plant sites.
7Exelon adopted SFAS No. 133, 'Accounting for Derivative Instruments and Hedging Activities,' effective January 1, 2001, resulting in a non-cash gain and changes in balance sheet reporting.

EXELON CORP Quarterly Report (Amendment) for Q3 Ended Sep 30, 2001

Summary

Key Highlights

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