10-QPeriod: Q1 FY2021

EXELON CORP Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 5, 2021For Securities:EXC

Summary

Exelon Corporation reported a net loss of $289 million for the first quarter of 2021, a significant decrease from a net income of $582 million in the same period of the previous year. This decline was primarily driven by the severe weather event in Texas in February 2021, which impacted Generation's Texas-based assets and resulted in substantial operating expenses. Additionally, accelerated depreciation and amortization related to planned nuclear plant retirements and the absence of a prior year's one-time tax settlement also contributed to the loss. The utility segments showed more stable performance, with increased operating revenues driven by higher rate base and allowed returns on equity. Despite the net loss, Exelon's adjusted operating earnings (non-GAAP) were $0.06 per diluted share, excluding the impact of the Texas weather event, plant retirements, and other non-recurring items. The company is actively managing its operations and has implemented cost-saving measures, including deferral of select maintenance and one-time cost savings to offset the impact of the weather event. Exelon also announced its plan to separate its utility and generation businesses into two publicly traded companies, a move anticipated to be completed in the first quarter of 2022, subject to regulatory approvals.

Financial Highlights

49 data points
Beta

Revenue

$4.63B

Net Income

-$289.00M

-6.2% Net Margin

EPS (Diluted)

$-0.30

Total Assets

$130.00B

Cash & Equivalents

$1.91B

Free Cash Flow

-$3.40B

Financial Statements
Beta
Revenue$4.63B
Operating Expenses$3.81B
Operating Income$824.00M
Interest Expense$380.00M
Net Income-$289.00M
EPS (Basic)$-0.30
EPS (Diluted)$-0.30
Shares Outstanding (Basic)977.00M
Shares Outstanding (Diluted)978.00M

Key Highlights

  • 1Net loss of $289 million for Q1 2021, compared to a net income of $582 million in Q1 2020.
  • 2The extreme cold weather event in Texas significantly impacted Generation's results, leading to an estimated $880 million reduction in net income for the quarter.
  • 3Accelerated depreciation and amortization charges were recognized due to planned early retirements of nuclear facilities.
  • 4Utility segments (ComEd, PECO, BGE, Pepco, DPL, ACE) generally showed stable or improved performance, driven by rate increases and customer growth.
  • 5Exelon announced plans to separate its utility and generation businesses into two public companies, targeting completion in Q1 2022.
  • 6Adjusted operating earnings (non-GAAP) were $0.06 per diluted share, excluding significant one-time items.
  • 7Despite the net loss, Exelon expects to offset a substantial portion of the Texas weather event impact through operational efficiencies and cost savings.

Frequently Asked Questions

The primary reason for the significant drop in net income was the severe winter storm event in Texas in February 2021, which negatively impacted Exelon Generation's Texas-based assets. This event led to substantial operating expenses and a reduction in net income. Additionally, accelerated depreciation charges related to planned plant retirements and the absence of a prior year tax settlement also contributed to the decline.

Exelon expects to offset a significant portion of the financial impact from the Texas winter storm through a combination of enhanced revenue opportunities, deferral of select non-essential maintenance, and one-time cost savings primarily within its Generation segment. The company is also monitoring potential regulatory and legislative solutions for cost recovery.

The planned separation is intended to create two distinct, publicly traded companies: one focused on utility operations and the other on competitive energy generation. This move is expected to provide each entity with greater strategic and financial flexibility to focus on its respective business needs, potentially unlocking shareholder value and improving operational focus.

Exelon's utility segments generally performed well, with most experiencing increased operating revenues. This growth was driven by factors such as higher rate base, customer growth, and favorable rate adjustments, including the impact of higher treasury rates on allowed returns on equity. ComEd, PECO, BGE, Pepco, DPL, and ACE all reported increases in net income or stable performance.