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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
October 18, 2002
(Date of earliest
event reported)
Exhibit 99.1
EXELON [LOGO]
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News Release
From: Exelon Corporation FOR IMMEDIATE RELEASE
Corporate Communications October 18, 2002
P.O. Box 805379
Chicago, IL 60680-5379
Contact: Linda Marsicano, Media Relations
312.394.3099 or 312.497.0001
Kathryn Houtsma, Finance
312.394.2942 or 312.636.2512
Linda Byus, CFA, Investor Relations
312.394.7696
Exelon Corporation Sees Strong Third Quarter; Announces Restatement of
Other Comprehensive Income
Chicago (October 18, 2002) - Exelon Corporation (NYSE: EXC) announces that its
third quarter 2002 operating earnings are expected to be at least $1.65 per
diluted share compared to the consensus estimate of $1.55 per share. The
company's prior guidance for the third quarter was 30% of the full year 2002
operating earnings range of $4.55 per share to $4.85 per share, which suggested
operating earnings for the quarter between $1.37 per share and $1.46 per share.
Exelon's third quarter 2001 earnings were $1.16 per share and included $0.16 per
share of charges related to unusual items. Given the strong third quarter
earnings, Exelon now expects full year 2002 operating earnings between $4.65 and
$4.80 per share. Operating earnings guidance for the full year 2002 excludes the
gain on the sale of the AT&T investment in the second quarter and the goodwill
impairment and severance charge booked in the first quarter.
Separately, Exelon and its subsidiary Exelon Generation Company, LLC
(Generation) announced that the amount of Other Comprehensive Income reported in
Shareholders' Equity for the year ended December 31, 2001 and for the first and
second quarters of 2002 will be restated as a result of an error in the amount
of deferred income taxes recorded associated with unrealized losses on
Generation's nuclear decommissioning trust fund securities. Additionally, Exelon
and Generation determined that Other Comprehensive Income should be revised to
reflect Generation's ownership interest in the Other Comprehensive Income of its
equity investments in AmerGen Energy Company, LLC and Sithe Energies Inc.
Earnings per share, net income and cash flow for the periods are not affected by
the restatement. However, Other Comprehensive Income, which is a component of
Shareholders' Equity, will be reduced by approximately $128 million as of
December 31, 2001, and by similar amounts in the first and second quarters of
2002 as a result of the revisions. Exelon will file an amended Form 10-K for the
year 2001 and Exelon and Generation will file amended Form 10-Q for the first
and second quarters of 2002 in the near future to reflect the revisions to Other
Comprehensive Income.
Page 2
Exelon Corporation will report third quarter results on October 30, 2002. A
conference call is scheduled for 11 a.m. EST (10 a.m. CST) on October 30, to
discuss the third quarter results and the company's outlook for the balance of
2002 and 2003. The call-in number in the U.S. is 800/370-0869, and the
international call-in number is 973/582-2720. The call will be web-cast and
archived on Exelon's web site: www.exeloncorp.com. (Please select the Investor
Relations page.)
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This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may vary materially
from the expectations contained herein. The forward-looking statements herein
include statements about future financial and operating results of Exelon.
Economic, business, competitive and/or regulatory factors affecting Exelon's
businesses generally could cause actual results to differ materially from those
described herein. For a discussion of the factors that could cause actual
results to differ materially, please see Exelon's filings with the Securities
and Exchange Commission, particularly those factors discussed in "Management's
Discussion and Analysis of Financial Condition and Results of Operations -
Outlook" in Exelon's 2001 Annual Report and "Risk Factors" in Exelon Generation
Company's Registration Statement on Form S-4, file number 333-85496. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Exelon does not undertake any
obligation to publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date of this press release.
###
Exelon Corporation is one of the nation's largest electric utilities with
approximately 5 million customers and more than $15 billion in annual revenues.
The company has one of the industry's largest portfolios of electricity
generation capacity, with a nationwide reach and strong positions in the Midwest
and Mid-Atlantic. Exelon distributes electricity to approximately 5 million
customers in Illinois and Pennsylvania and gas to more than 440,000 customers in
the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE
under the ticker EXC.