Exelon 2006 Annual Report Download - page 6

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As evidence of that commitment, Exelon has again reported improved
operating earnings for 2006. Thanks primarily to higher generation margins
and continued strong operating performance, our 2006 adjusted (non-GAAP)
operating earnings were nearly $2.2 billion, or $3.22 per diluted share,
a 4 percent increase over comparable earnings in 2005. Over the past six years,
our operating earnings have increased by almost 9 percent a year. Exelon’s
2006 GAAP earnings were $1.6 billion, or $2.35 per diluted share, reflecting
a further impairment charge to ComEd’s goodwill, this time arising from an
initial unfavorable ruling in last year’s delivery service case.*
Our continuing success has again made us the most highly valued company
in the industry, with a year-end market capitalization exceeding $41 billion.
Our overall stock price rose by 16 percent over the course of the year, from
$53.14 on December 30, 2005 to $61.89 on December 29, 2006. And our total
return, measured by stock appreciation plus dividend reinvestment, was
approximately 20 percent. All in all, our total return over the past five years
has been 204 percent, far outstripping the performance of the Philadelphia
Utility Index, the S&P 500 Utility Index, and the S&P 500.
And we continue to earn favorable recognition in the media and from
industry and civic groups. Fortune magazine named Exelon one of America’s
“Most Admired Companies,” and ranked Exelon number one on the electric
and gas utilities industry list, for both 2004 and 2005. We were also recently
named to the Dow Jones Sustainability North America Index and the Carbon
Disclosure Project’s Climate Leadership Index. And due to our diversity efforts,
the Minority Supplier Development Council of Pennsylvania, New Jersey and
Delaware recently named Exelon as the 2006 Corporation of the Year.
Thus, we have kept our commitment to deliver superior value to you, our
shareholders, despite our many challenges. I am very proud of all that we have
accomplished. And I am very grateful to both the Exelon management team,
and our employees, for their dedication and tireless efforts on your behalf.
And I am very grateful
to both the Exelon
management team,
and our employees,
for their dedication
and tireless efforts on
your behalf.
*The ICC initially granted only $8.3 million of a requested $317 million increase. On rehearing, the ICC increased the grant
to nearly $83 million, still well short of our original request. For a complete 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 24, 2007, posted on the Investor Relations page at www.exeloncorp.com and included
in the 8-K filing with the SEC on that date.