8-KEarnings & ResultsExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (May 5, 2009)

Filed May 5, 2009For Securities:FE

Summary

This 8-K filing by FirstEnergy Corp. (FE) on May 5, 2009, primarily serves to announce the company's financial results and related information for the period. The company has issued a press release and a consolidated report to the financial community, which are incorporated by reference into this filing. A key aspect of these disclosures is the use of 'normalized earnings per share,' a non-GAAP financial measure. FirstEnergy states that this measure excludes 'special items' deemed not routine or related to discontinued businesses, believing it offers investors a clearer view of ongoing business performance and facilitates comparisons within the energy sector. Investors are advised that while management finds this non-GAAP metric useful for internal decision-making and external comparisons, it should be considered alongside, and not as a substitute for, GAAP-compliant financial measures. The filing also includes a comprehensive list of forward-looking statements, detailing numerous risks and uncertainties that could materially impact future results. These risks span regulatory changes, market conditions, environmental regulations, operational challenges, and economic factors.

Key Highlights

  • 1FirstEnergy Corp. announced financial results via a press release and consolidated report filed on May 5, 2009.
  • 2The company is utilizing a non-GAAP financial measure, 'normalized earnings per share', which excludes 'special items'.
  • 3Normalized earnings per share is presented to provide investors with insight into ongoing operational performance and for peer comparison.
  • 4Management believes normalized earnings are useful for assessing ongoing business results and facilitating historical and peer comparisons.
  • 5Investors are cautioned that non-GAAP measures should be considered in addition to, not as a substitute for, GAAP measures.
  • 6The filing includes an extensive list of forward-looking statements detailing potential risks and uncertainties.
  • 7Key risk areas mentioned include regulatory and legislative changes, market price volatility, operational challenges, and general economic conditions.

Frequently Asked Questions

Normalized earnings per share is a non-GAAP financial measure that excludes 'special items' which are considered non-routine or related to discontinued businesses. FirstEnergy uses this measure to provide investors with a clearer view of the company's ongoing operational performance and to allow for better comparisons with industry peers.

Investors should treat non-GAAP measures as supplemental information. While they can offer insights into management's view of performance, they should always be considered in conjunction with, and not as a replacement for, the company's financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP).

The filing highlights numerous risks including changes in electric utility industry competition and regulations (especially in Ohio and Pennsylvania regarding rate plans), economic and weather conditions affecting sales, energy market price fluctuations, increased maintenance or replacement power costs, environmental regulations (including potential greenhouse gas rules), adverse legal or regulatory decisions, capital expenditure uncertainties, and general economic downturns impacting industrial and commercial customers.