8-KEarnings & ResultsExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Aug 7, 2007)

Filed August 7, 2007For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on August 7, 2007, to report on its financial results and condition. The core of this filing is the incorporation by reference of two documents: a press release and a more detailed Consolidated Report to the Financial Community. These reports provide insight into the company's performance, including a discussion of "normalized earnings per share," a non-GAAP financial measure that excludes "special items" deemed not to be routine or related to discontinued businesses. Management's use of this normalized earnings metric is highlighted, with the company asserting its utility in evaluating ongoing business results, facilitating comparisons with peers, and aiding in internal decision-making. Investors are cautioned that this non-GAAP measure should be considered alongside, and not as a substitute for, GAAP-based financial measures, and may not be comparable to similar measures used by other entities. The filing also includes standard forward-looking statements and disclosures about potential risks and uncertainties facing the company.

Key Highlights

  • 1FirstEnergy Corp. issued an 8-K on August 7, 2007, to report financial results and condition.
  • 2The filing incorporates by reference a press release and a Consolidated Report to the Financial Community.
  • 3The company is presenting "normalized earnings per share" as a non-GAAP financial measure.
  • 4Normalized earnings exclude "special items" that are not routine or relate to discontinued businesses.
  • 5Management believes normalized earnings provide a useful view of ongoing operations and facilitate peer comparisons.
  • 6Investors are advised that normalized earnings are a non-GAAP measure and should be used in conjunction with GAAP results.
  • 7The report includes standard forward-looking statements outlining potential risks and uncertainties.

Frequently Asked Questions

The primary purpose of this 8-K filing from FirstEnergy Corp. on August 7, 2007, is to report on the company's financial results and condition by incorporating by reference its earnings press release and a more detailed Consolidated Report to the Financial Community.

'Normalized earnings per share' is a non-GAAP financial measure used by FirstEnergy that excludes 'special items' not considered routine or related to discontinued businesses. The company uses this metric because management believes it offers a clearer view of ongoing operational performance and allows for better comparisons with industry peers and historical results.

Investors should interpret the non-GAAP financial information, such as normalized earnings per share, as supplemental data. It should be considered in addition to, and not as a substitute for, the company's financial measures prepared in accordance with GAAP. Additionally, investors should be aware that this non-GAAP measure may not be directly comparable to similar measures used by other companies.

The company mentions a broad range of potential risks and uncertainties, including but not limited to, increased competition and deregulation, economic and weather conditions, changes in energy markets, commodity prices, replacement power costs, legislative and regulatory changes (including environmental requirements), outcomes of legal and administrative proceedings (like the 2003 power outage litigation), and operational issues related to generating units and regulatory approvals. These are standard disclosures to inform investors about potential challenges.