8-KEarnings & ResultsExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Feb 16, 2011)

Filed February 16, 2011For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on February 16, 2011, reporting on its financial condition and results of operations. The filing primarily concerns the company's use of non-GAAP financial measures, specifically "normalized earnings per share," in its press release and consolidated report to the financial community, both dated February 16, 2011. FirstEnergy explains that these normalized earnings exclude "special items" which are defined as events that are not routine or related to discontinued businesses. Management believes that presenting normalized earnings provides investors with a clearer view of the ongoing operational performance of the company and facilitates comparisons with industry peers. The company emphasizes that these non-GAAP measures should be considered alongside, and not as a substitute for, GAAP-based financial measures. The filing also includes standard forward-looking statements, outlining various risks and uncertainties that could materially affect actual results, including competition, regulatory impacts, economic conditions, and the pending merger with Allegheny Energy, Inc.

Key Highlights

  • 1FirstEnergy Corp. issued an 8-K on February 16, 2011, to report on financial results.
  • 2The company utilized non-GAAP financial measures, specifically 'normalized earnings per share,' in its investor communications.
  • 3Normalized earnings per share exclude 'special items,' which are non-routine events or impacts from discontinued businesses.
  • 4FirstEnergy asserts that normalized earnings provide useful information for evaluating ongoing business results and for peer comparisons.
  • 5The company cautions that non-GAAP measures should supplement, not replace, GAAP measures and may not be comparable to similar measures used by other companies.
  • 6The filing incorporates by reference a press release and a consolidated report to the financial community.
  • 7The 8-K contains forward-looking statements detailing potential risks and uncertainties affecting future performance.

Frequently Asked Questions

The main purpose of this 8-K filing is to report FirstEnergy Corp.'s financial results and to inform investors about the company's use of non-GAAP financial measures, specifically 'normalized earnings per share,' in its communications.

Special items are defined by FirstEnergy as events that are not routine or that may be related to discontinued businesses. These items are excluded from the calculation of normalized earnings per share.

FirstEnergy presents normalized earnings per share because management believes it provides useful information to investors in evaluating the ongoing results of the company's businesses and helps in comparing its operating performance to that of other companies in the energy sector.

No, FirstEnergy explicitly states that the non-GAAP information, such as normalized earnings, should be considered in addition to, and not as a substitute for, the most directly comparable financial measures prepared in accordance with GAAP (Generally Accepted Accounting Principles). Investors should review both GAAP and non-GAAP measures.