8-KEarnings & ResultsExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Nov 4, 2008)

Filed November 4, 2008For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on November 4, 2008, to report its financial results and condition. The primary focus of this filing is the announcement of financial results, which are presented using both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures, specifically "normalized earnings per share." The company emphasizes that normalized earnings are presented to provide investors with a clearer view of ongoing operational performance by excluding "special items" that are not routine or may relate to discontinued businesses. Management believes this non-GAAP measure is valuable for assessing ongoing business performance and for comparing FirstEnergy's results with those of its peers in the energy sector. Investors are cautioned, however, that these non-GAAP measures should be considered supplementary to, and not a substitute for, GAAP-based financial measures, and may not be comparable to similar measures used by other companies. The filing also includes a standard forward-looking statements disclaimer, outlining various risks and uncertainties that could materially affect the company's future results.

Key Highlights

  • 1FirstEnergy Corp. announced its financial results on November 4, 2008, via an 8-K filing.
  • 2The company presented financial information using both GAAP and non-GAAP measures, including "normalized earnings per share."
  • 3Normalized earnings per share exclude "special items" deemed non-routine or related to discontinued businesses.
  • 4Management believes the non-GAAP normalized earnings provide a useful measure of ongoing operational performance and facilitate peer comparisons.
  • 5Investors are advised that non-GAAP measures are supplemental and should not replace GAAP measures.
  • 6The filing incorporates by reference a press release and a consolidated report to the financial community.
  • 7A detailed forward-looking statements section outlines numerous risks and uncertainties impacting future performance.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report FirstEnergy Corp.'s financial results and condition as of November 4, 2008, including the release of earnings information.

Normalized earnings per share is a non-GAAP financial measure that excludes 'special items'—events that are not routine or may relate to discontinued businesses. FirstEnergy uses this measure to provide investors with a view of ongoing operational performance and to facilitate comparisons with other energy companies.

The company states that non-GAAP measures, such as normalized earnings per share, are intended to be considered in addition to, and not as a substitute for, the most directly comparable GAAP financial measures. Investors should use them cautiously and be aware they may not be comparable to similar measures used by other entities.

The filing lists numerous risks including legislative and regulatory changes (especially regarding generation rates in Ohio and Pennsylvania), economic or weather conditions, changes in energy markets, higher replacement power costs, environmental regulations (including potential greenhouse gas emission rules), litigation outcomes, operational reliability, capital expenditure needs, and access to capital markets.