Summary
This 8-K filing is an amendment to a previous filing and primarily serves to clarify the presentation of Exelon Corporation's (EXC) non-GAAP financial measure, 'adjusted operating earnings'. While the reported GAAP and pro forma earnings remain unchanged, the company has revised how these non-GAAP figures are presented in its earnings release and accompanying reconciliations. The filing details these presentation changes, including the explicit labeling of 'adjusted (non-GAAP) operating earnings' and improved formatting for excluded items and reconciliations. It also provides updated financial performance for the third quarter of 2003, highlighting the impact of various operational and strategic events on both GAAP and adjusted operating earnings. For the third quarter of 2003, Exelon reported adjusted operating earnings of $535 million ($1.63 per share), a slight decrease from $551 million ($1.70 per share) in the prior year. This decrease was primarily attributed to weather-related impacts on kilowatt-hour (kWh) sales and reduced competitive transition charge (CTC) revenue at Commonwealth Edison (ComEd), partially offset by stronger margins at Exelon Generation Company and lower interest expenses. On a GAAP basis, Exelon reported a net loss of $102 million ($0.31 per share) for the quarter, significantly impacted by asset impairments and restructuring charges. The company also revised its full-year 2003 adjusted operating earnings guidance to a range of $5.05 to $5.20 per share and provided an initial outlook for 2004, expecting earnings between $5.25 to $5.55 per share.
Key Highlights
- 1Exelon is clarifying the presentation of its non-GAAP financial measure, 'adjusted operating earnings,' in its Q3 2003 earnings release and related documentation.
- 2No changes were made to the reported GAAP or pro forma earnings figures in this amendment.
- 3Q3 2003 adjusted operating earnings were $535 million ($1.63/share), down 3% from $551 million ($1.70/share) in Q3 2002, due to weather impacts and reduced CTC revenue at ComEd.
- 4Q3 2003 GAAP net loss was $102 million ($0.31/share), largely due to a $573 million after-tax charge for the impairment of Exelon Boston Generating (EBG) assets and other charges.
- 5Exelon revised its full-year 2003 adjusted operating earnings guidance to $5.05-$5.20 per share.
- 6The company provided an initial 2004 adjusted operating earnings outlook of $5.25-$5.55 per share.
- 7Key strategic events mentioned include the sale of certain InfraSource businesses and the agreement to purchase British Energy's stake in AmerGen.