Summary
This filing is an amendment to Exelon Corporation's (EXC) Form 10-Q for the quarter ended March 31, 2002, primarily to restate previously issued financial statements. The restatement impacts Other Comprehensive Income and Shareholders' Equity due to adjustments related to deferred income taxes associated with unrealized losses on nuclear decommissioning trust fund securities, and the recognition of Exelon Generation's ownership interest in its equity investments. Importantly, the restatements do not affect reported net income, earnings per share, or cash flows for the periods presented. Investors should note that the company experienced a significant decrease in net income and comprehensive income compared to the prior year's quarter, largely driven by a substantial cumulative effect of accounting principle changes. Financial performance in the first quarter of 2002 shows a marked decline in net income to $8 million from $399 million in the same period of 2001. This is heavily influenced by a $230 million cumulative effect of accounting changes, primarily related to goodwill impairment, which significantly reduced net income. Operating revenues remained relatively flat, but operating expenses, particularly fuel and purchased power, increased substantially. Despite the net income decline, operating cash flow remained strong, indicating the core business's continued ability to generate cash. The company also made significant adjustments to its long-term debt during the quarter.
Key Highlights
- 1Restatement of financial statements for the quarter ended March 31, 2002, primarily affecting Other Comprehensive Income and Shareholders' Equity, with no impact on net income, EPS, or cash flows.
- 2Net income for the three months ended March 31, 2002, decreased significantly to $8 million from $399 million in the prior year period.
- 3A substantial negative cumulative effect of $230 million related to accounting principle changes, primarily goodwill impairment, significantly impacted net income in the current quarter.
- 4Operating revenues were relatively stable at $3,870 million for the three months ended March 31, 2002, compared to $3,823 million for the same period in 2001.
- 5Operating cash flows remained robust, with $833 million generated from operating activities in the first quarter of 2002, an increase from $797 million in the prior year.
- 6Total assets remained stable at approximately $34.9 billion, with minor fluctuations in current assets and a slight increase in property, plant, and equipment.
- 7Long-term debt was managed with the issuance of $400 million in bonds and the redemption of $200 million of existing bonds during the quarter.