Exelon 2004 Annual Report Download - page 5

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3
To our shareholders
Exelon continued to build its financial record in 2004. Thanks to operating
improvements, load growth, and higher wholesale prices, 2004 adjusted
(non-GAAP) operating earnings were $1,859 million, or $2.78 per diluted
share. This constitutes an increase of 6.5 percent over comparable per
share earnings in 2003.* In the four years of its existence, Exelon’s
operating earnings have grown by an average of 7.8 percent per year.
I am especially pleased that our 2004 GAAP earnings were also $2.78 per
diluted share, an increase of more than 100 percent over 2003 GAAP
earnings. Our consolidated GAAP earnings reflect several events, including
earnings from investments in synthetic fuel-producing facilities, losses
associated with debt retirements, severance and severance-related
charges, accounting changes, charges associated with our investments
in Boston Generating and Sithe, and costs associated with the proposed
merger with PSEG. In 2004, we had none of the large write-offs that
marred 2003 performance.
*For a reconciliation of adjusted (non GAAP) operating earnings to GAAP (accounting principles generally accepted in the United States) earnings, see Exelon’s fourth quarter
earnings release, issued January 25, 2005, posted on the Investor Relations page at www.exeloncorp.com and included in the 8-K filed with the SEC on that date.