8-KEarnings & ResultsRegulation FDExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Aug 1, 2006)

Filed August 1, 2006For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on August 1, 2006, primarily to disclose updated financial guidance and the issuance of non-GAAP financial measures. The company raised its 2006 annual earnings per share (EPS) guidance, excluding unusual items, to a range of $3.65 to $3.85. Additionally, FirstEnergy affirmed its previously issued non-GAAP cash generation guidance of $460 million for 2006. The filing also detailed the company's use of normalized earnings per share and free cash flow/cash generation metrics. Management believes these non-GAAP measures provide valuable insights into the ongoing operational performance and cash-generating capabilities of the business, aiding investors in comparing performance against peers and historical results. These non-GAAP figures were presented alongside reconciliations to their GAAP equivalents.

Key Highlights

  • 1FirstEnergy Corp. raised its 2006 annual earnings per share (EPS) guidance (excluding unusual items) to $3.65 - $3.85.
  • 2The company affirmed its 2006 non-GAAP cash generation guidance of $460 million.
  • 3The 8-K announces the issuance of public announcements on August 1, 2006, containing financial information.
  • 4FirstEnergy is utilizing and disclosing non-GAAP financial measures, including normalized EPS and cash generation, in its investor communications.
  • 5Management asserts that these non-GAAP measures offer valuable insights into ongoing business performance and assist in comparative analysis.
  • 6The company provided reconciliations from non-GAAP measures to their most directly comparable GAAP financial measures as required by Regulation G.

Frequently Asked Questions

FirstEnergy raised its 2006 annual earnings per share guidance, excluding unusual items, to a range of $3.65 to $3.85 per share of common stock.

The company affirmed its original non-GAAP cash generation guidance for 2006 to be $460 million.

FirstEnergy uses non-GAAP financial measures, such as normalized earnings per share and cash generation, because management believes they provide useful information to investors for evaluating the ongoing results of the company's businesses, assessing operating performance from a cash perspective, and facilitating comparisons with historical performance and that of peer companies.

No, FirstEnergy states that the non-GAAP information should be considered in addition to, and not as a substitute for, their most directly comparable financial measures prepared in accordance with GAAP. Reconciliations to GAAP are provided.