8-KEarnings & ResultsExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Feb 28, 2012)

Filed February 28, 2012For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on February 28, 2012, to announce its fourth quarter and full-year 2011 earnings. The filing primarily directs investors to two public documents: a Press Release and a Consolidated Report to the Financial Community, both dated February 28, 2012. These documents contain important financial results and commentary. Notably, FirstEnergy highlights the use of non-GAAP financial measures, such as "basic non-GAAP earnings per share," which exclude "special items" not considered routine or related to discontinued businesses. The company asserts that these non-GAAP measures provide a clearer view of ongoing operational performance and facilitate comparisons with peers, although they should be considered alongside, and not as a substitute for, GAAP measures. The filing also includes a comprehensive section on forward-looking statements, detailing numerous risks and uncertainties that could materially affect the company's future performance. These risks span regulatory matters, competition, economic conditions, environmental regulations, operational challenges with generating units, integration of the Allegheny Energy merger, and capital market conditions. Investors are encouraged to review these risks carefully.

Key Highlights

  • 1FirstEnergy Corp. announced its fourth quarter and full-year 2011 earnings via press release and a consolidated report.
  • 2The company utilizes non-GAAP financial measures, such as basic non-GAAP earnings per share, to present normalized earnings.
  • 3Non-GAAP measures exclude 'special items' deemed non-routine or related to discontinued businesses.
  • 4FirstEnergy believes non-GAAP measures offer useful insights into ongoing business performance and peer comparisons.
  • 5Investors are advised that non-GAAP measures should be considered in addition to, not as a substitute for, GAAP measures.
  • 6The filing details a broad range of risks and uncertainties that could impact future financial results.
  • 7Key risk factors include regulatory changes, competitive pressures, economic conditions, environmental compliance, and integration of the Allegheny Energy merger.

Frequently Asked Questions

The primary purpose of this 8-K filing is to formally announce FirstEnergy Corp.'s fourth quarter and full-year 2011 earnings results and to incorporate by reference two public documents (a press release and a consolidated report to the financial community) that contain these details.

'Special items' are defined as events that are not routine or may be related to discontinued businesses. FirstEnergy excludes these from its non-GAAP earnings per share calculations because management believes this provides investors with a clearer view of the ongoing operational performance of the company and allows for better comparison with other energy sector companies.

The filing emphasizes that non-GAAP financial measures should be considered in addition to, and not as a substitute for, the most directly comparable GAAP financial measures. While management believes they provide useful insights, investors should always review the GAAP figures as well, as non-GAAP measures may not be comparable to similarly titled measures used by other companies.

FirstEnergy outlines a wide array of risks, including increased competition, regulatory impacts on rates and pending matters, project suspensions (like the PATH project), business and regulatory impacts from realignments, economic and weather conditions, changes in energy markets, financial derivative reforms, environmental regulations (e.g., GHG emissions, coal combustion residuals), potential litigation and regulatory initiatives impacting generating units, plans to retire older fossil units, adverse decisions regarding nuclear operations, issues with plant shield building integrity, recovery of transmission costs, generation availability, replacement power costs, energy efficiency mandates, customer demand changes, strategic goal realization, electric commodity margins, growth in the distribution business, asset values in trust funds, changes in accounting policies, access to capital markets, general economic conditions, credit rating agency actions, and the ongoing integration of the Allegheny Energy merger.