Summary
Exelon Corporation reported a net income attributable to common shareholders of $585 million for the first quarter of 2018, down from $990 million in the prior year's first quarter. This decrease was primarily driven by higher depreciation and amortization expenses related to early plant retirements and a significant bargain purchase gain in the prior year from the FitzPatrick acquisition. While total operating revenues increased to $9,693 million from $8,747 million year-over-year, primarily due to favorable weather conditions, regulatory initiatives in New York and Illinois supporting nuclear plants, and increased capital expenditures across its utility segments, the company's net income was impacted by various factors. Notably, Generation's results were affected by mark-to-market losses on economic hedging activities and by the pass-through of Tax Cuts and Jobs Act (TCJA) savings to customers by the utility subsidiaries, which were largely offset by lower revenue. Despite the year-over-year decline in net income, the company's adjusted operating earnings saw a significant increase, signaling strong performance in core ongoing operations.
Financial Highlights
52 data points| Revenue | $9.69B |
| Operating Expenses | $8.65B |
| Operating Income | $1.10B |
| Interest Expense | $365.00M |
| Net Income | $583.00M |
| EPS (Basic) | $0.60 |
| EPS (Diluted) | $0.60 |
| Shares Outstanding (Basic) | 966.00M |
| Shares Outstanding (Diluted) | 968.00M |
Key Highlights
- 1Net income attributable to common shareholders decreased to $585 million in Q1 2018 from $990 million in Q1 2017, primarily due to higher depreciation and amortization expenses related to plant retirements and a prior-year bargain purchase gain.
- 2Total operating revenues increased to $9,693 million from $8,747 million, driven by favorable weather, regulatory support for nuclear plants (NY CES and IL ZES), increased capital expenditures, and the FitzPatrick acquisition.
- 3Adjusted (non-GAAP) operating earnings increased significantly to $925 million ($0.96 per diluted share) in Q1 2018 from $600 million ($0.64 per diluted share) in Q1 2017, indicating strong underlying operational performance.
- 4Exelon's utility subsidiaries are passing back over $500 million in ongoing annual tax savings to customers due to the Tax Cuts and Jobs Act (TCJA), impacting revenue recognition.
- 5The company announced the planned early retirement of the Oyster Creek nuclear facility by October 2018, and the Three Mile Island nuclear facility around September 2019, leading to increased depreciation and amortization expenses.
- 6Generation's results were impacted by mark-to-market losses on economic hedging activities in Q1 2018, contrasting with gains in the prior year's period.
- 7The company declared a first quarter 2018 dividend of $0.345 per share, an increase of 5% year-over-year, reflecting a commitment to returning value to shareholders.