8-KEarnings & ResultsExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Feb 15, 2006)

Filed February 15, 2006For Securities:FE

Summary

This Form 8-K filing from FirstEnergy Corp. dated February 15, 2006, primarily serves to report the issuance of public announcements regarding the company's results of operations and financial condition. The company has provided its earnings information through a press release and a consolidated report to the financial community, which are incorporated by reference. A key takeaway for investors is that these reports include non-GAAP (Generally Accepted Accounting Principles) financial measures, specifically "normalized earnings per share," which excludes "unusual items." Management asserts that these non-GAAP measures, including "free cash flow" and "cash generation" also referenced, offer valuable insights for investors to assess the company's ongoing operational performance and compare it with peers. This approach is used by management internally for decision-making and performance comparisons. Investors should pay close attention to the reconciliations provided in the referenced exhibits to understand how these non-GAAP figures differ from standard GAAP reporting, as potential risks and uncertainties are also noted.

Key Highlights

  • 1FirstEnergy Corp. reported its results of operations and financial condition on February 15, 2006.
  • 2The company issued a press release and a consolidated report to the financial community on this date.
  • 3These reports contain non-GAAP financial measures, including "normalized earnings per share."
  • 4"Normalized earnings per share" excludes "unusual items" that are not routine or may relate to discontinued businesses.
  • 5The company also referenced non-GAAP measures like "free cash flow" and "cash generation."
  • 6Management believes these non-GAAP measures provide useful information for assessing ongoing operational performance and peer comparisons.
  • 7Reconciliations between non-GAAP and GAAP financial measures are provided in the referenced exhibits.

Frequently Asked Questions

This filing primarily announces that FirstEnergy Corp. has released its results of operations and financial condition through a press release and a consolidated report to the financial community, both dated February 15, 2006. These documents are incorporated by reference into the 8-K.

FirstEnergy is using non-GAAP financial measures, such as "normalized earnings per share," "free cash flow," and "cash generation," because management believes they provide a more useful view of the company's ongoing operational performance. They exclude items deemed "unusual" and help in comparing performance over time and against other companies in the energy sector. The company states these measures are also used internally for decision-making.

Yes, the filing includes a "Forward-Looking Statements" section that details numerous risks and uncertainties. These range from competition and deregulation in the electric utility industry, economic and weather conditions, energy market prices, and replacement power costs, to regulatory and legal changes, environmental requirements, and operational issues at its nuclear power plants (Davis-Besse and Perry).

The detailed financial information and the reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are located within the Press Release (Exhibit 99.1) and the Consolidated Report to the Financial Community (Exhibit 99.2) that are attached to this Form 8-K filing.