8-KOther Events

FIRSTENERGY CORP 8-K Report (Feb 19, 2004)

Filed February 19, 2004For Securities:FE

Summary

This Form 8-K filing by FirstEnergy Corp. on February 19, 2004, primarily serves to announce the issuance of a press release and a consolidated report to the financial community. These documents, attached as exhibits, contain important financial information including non-GAAP financial measures such as normalized earnings per share. The company utilizes these non-GAAP measures to provide investors with a clearer view of ongoing operational performance and to facilitate comparisons with industry peers, asserting that these measures exclude "unusual items" not reflective of routine business operations. Investors are advised that these non-GAAP figures are supplementary to, and not a replacement for, standard GAAP-reported earnings.

Key Highlights

  • 1FirstEnergy Corp. filed an 8-K on February 19, 2004, announcing the release of financial information to the public.
  • 2The filing includes a press release (Exhibit 99.1) and a Consolidated Report to the Financial Community (Exhibit 99.2).
  • 3These reports present non-GAAP financial measures, specifically highlighting normalized earnings per share.
  • 4Normalized earnings per share exclude "unusual items" such as impacts from discontinued businesses or accounting changes.
  • 5Management believes normalized earnings provide a better measure of ongoing business performance and aid in peer comparison.
  • 6The company explicitly states that non-GAAP measures should be considered in addition to, not as a substitute for, GAAP results.
  • 7The filing includes a forward-looking statement section outlining various risks and uncertainties that could affect actual results.

Frequently Asked Questions

This 8-K filing includes two exhibits: a press release issued by FirstEnergy Corp. on February 19, 2004 (Exhibit 99.1) and a Consolidated Report to the Financial Community dated the same day (Exhibit 99.2).

Normalized earnings per share is a non-GAAP financial measure that excludes the impact of "unusual items," which are defined as events that are not routine, relate to discontinued businesses, or are the cumulative effect of an accounting change. FirstEnergy uses this measure because management believes it provides useful information to investors for evaluating the ongoing results of the company's businesses and for comparing its operating performance to that of other companies in the energy sector.

FirstEnergy's filing states that non-GAAP financial measures, such as normalized earnings per share, should be considered in addition to, and not as a substitute for, earnings per share prepared in accordance with Generally Accepted Accounting Principles (GAAP). The company also notes that quantitative reconciliations between non-GAAP and GAAP measures are provided within the referenced press release and consolidated report.

The filing lists several potential risks, including increased competition and deregulation in the electric utility industry, economic or weather conditions, changes in energy markets and commodity prices, higher-than-anticipated maintenance or replacement power costs, legislative and regulatory changes, adverse legal or regulatory decisions, the operational status of the Davis-Besse Nuclear Power Station, and the outcome of investigations and legal proceedings, particularly those related to the August 14, 2003 regional power outage.