8-KEarnings & ResultsExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Oct 27, 2009)

Filed October 27, 2009For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on October 27, 2009, primarily to disclose operational and financial results through press releases and a consolidated report. A key focus of this filing is the company's use of non-GAAP (Generally Accepted Accounting Principles) financial measures, specifically 'normalized earnings per share.' FirstEnergy emphasizes that this normalized figure excludes 'special items' not considered routine or related to discontinued businesses, arguing it provides a clearer view of ongoing operational performance and allows for better comparisons with peers. Investors should note that while management believes normalized earnings are useful for assessing performance, these figures are not a substitute for GAAP-compliant measures. The company has provided reconciliations to GAAP in the attached documents (Exhibits 99.1 and 99.2). The filing also includes extensive forward-looking statements detailing various risks and uncertainties that could impact future results, ranging from regulatory changes and environmental regulations to economic conditions and capital market access.

Key Highlights

  • 1FirstEnergy Corp. issued an 8-K on October 27, 2009, reporting operational and financial information.
  • 2The filing details the company's use of non-GAAP financial measures, particularly 'normalized earnings per share.'
  • 3Normalized earnings exclude 'special items' considered non-routine or related to discontinued operations.
  • 4Management believes normalized earnings offer a better view of ongoing performance and facilitate peer comparisons.
  • 5The company has provided reconciliations from non-GAAP to GAAP measures within the attached press release and report.
  • 6The 8-K includes significant forward-looking statements outlining potential risks and uncertainties impacting future financial results.

Frequently Asked Questions

The main purpose of this 8-K filing is to publicly disclose FirstEnergy Corp.'s operational and financial results, as detailed in their press release and consolidated report to the financial community, both dated October 27, 2009.

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 because management believes it provides investors with a more useful view of the company's ongoing operational performance and allows for better comparisons with peer companies.

The non-GAAP measures, such as normalized earnings, should be considered in addition to, and not as a substitute for, the most directly comparable GAAP financial measures. FirstEnergy has provided reconciliations to GAAP in the attached documents. However, investors should be aware that these non-GAAP measures may not be comparable to similarly titled measures used by other companies.

The forward-looking statements highlight a broad range of risks including legislative and regulatory changes affecting rates, environmental regulations (like greenhouse gas emissions), economic conditions, energy market price volatility, competition, operational risks with generating units, capital expenditure needs, access to capital markets, and potential impacts from changes in financial institutions and the overall economy.