8-KEarnings & ResultsRegulation FDExhibits & Filings

AMERICAN ELECTRIC POWER CO INC 8-K Report, Financial Results (Apr 20, 2006)

Filed April 20, 2006For Securities:AEP

Summary

American Electric Power Company, Inc. (AEP) filed an 8-K on April 20, 2006, primarily to disclose information regarding its financial results and provide context through non-GAAP financial measures. The company announced its use of "ongoing earnings," which adjusts GAAP earnings for certain items, as a key metric for assessing operational performance and communicating with investors. This approach aims to offer a more consistent and forward-looking view of the company's financial health beyond standard accounting practices. Investors should note that AEP explicitly states its "ongoing earnings" are used as the primary performance measurement for its earnings outlook and results. While not a substitute for GAAP, this non-GAAP measure is highlighted as integral to how AEP's management views and presents the company's performance to stakeholders, including analysts and the board of directors. The filing includes a press release as an exhibit, detailing these non-GAAP measures and their reconciliation to GAAP figures.

Key Highlights

  • 1AEP is filing an 8-K on April 20, 2006, to report on results of operations and financial condition, and for Regulation FD disclosure.
  • 2The company is emphasizing its use of 'ongoing earnings' as a key performance metric, which is a non-GAAP financial measure.
  • 3Ongoing earnings are defined as GAAP earnings adjusted for certain items, as detailed in an accompanying press release.
  • 4AEP's management uses ongoing earnings to provide a more meaningful representation of the company's performance.
  • 5Ongoing earnings are used internally for performance measurement against budget and reporting to the board of directors.
  • 6The press release attached as Exhibit 99.1 provides further details on these non-GAAP financial measures and their reconciliation.

Frequently Asked Questions

Ongoing earnings are AEP's GAAP (Generally Accepted Accounting Principles) earnings adjusted for certain items. AEP management believes this adjusted figure provides a more meaningful and consistent representation of the company's ongoing operational performance compared to standard GAAP earnings. It is used by AEP as a primary metric when discussing financial results and outlook with investors and analysts.

No, 'ongoing earnings' is a non-GAAP financial measure. While AEP uses it for performance assessment and investor communication, it is not a substitute for reported GAAP earnings. The company's filings will still include and report GAAP results, and the press release typically provides a reconciliation between ongoing earnings and GAAP earnings.

The press release filed as Exhibit 99.1 to this 8-K report contains the detailed information regarding AEP's 'ongoing earnings,' including how they are calculated and reconciled to GAAP figures. Investors should refer to this exhibit for a complete understanding.