8-KEarnings & ResultsRegulation FDExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Nov 4, 2014)

Filed November 4, 2014For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on November 4, 2014, to report on its financial condition and results of operations for the third quarter and the first nine months of 2014. The filing primarily consists of attachments: a press release and a consolidated report to the financial community. These documents discuss the company's performance using both GAAP and non-GAAP financial measures, such as "Operating earnings" and "Basic EPS-Operating". Management utilizes these non-GAAP measures to assess performance and facilitate comparisons, providing insights into operational trends excluding "special items". Furthermore, the report highlights the company's use of "Adjusted Equity," "Adjusted Debt," and "Adjusted Capitalization" for monitoring compliance with its credit facility's debt-to-total capitalization financial covenant, which requires a ratio of no more than 65%. Investors should note that these non-GAAP measures are intended to supplement, not replace, GAAP measures and may not be comparable to similar metrics used by other companies. Additionally, the company announced the posting of an updated investor FactBook to its website.

Key Highlights

  • 1FirstEnergy Corp. (FE) reported on its third quarter and nine months ended September 30, 2014, results via an 8-K filing.
  • 2The filing incorporates by reference a press release and a consolidated report to the financial community containing financial results.
  • 3The company utilizes and discusses non-GAAP financial measures such as "Operating earnings" and "Basic EPS-Operating" to evaluate performance.
  • 4These non-GAAP measures exclude "special items" to provide a more consistent view of operational performance.
  • 5Management uses "Adjusted Equity," "Adjusted Debt," and "Adjusted Capitalization" to monitor compliance with a debt-to-total capitalization financial covenant (<= 65%).
  • 6An updated investor FactBook for the period ending September 30, 2014, was made available on the company's website.
  • 7The report includes extensive forward-looking statements detailing risks and uncertainties facing the company.

Frequently Asked Questions

The main purpose of this 8-K filing is to report on FirstEnergy Corp.'s results of operations and financial condition for the third quarter and the nine months ended September 30, 2014, by attaching a press release and a consolidated report to the financial community.

"Operating earnings" are a non-GAAP financial measure used by FirstEnergy that excludes the impact of "special items" from GAAP net income. Management uses this measure, along with "Basic EPS-Operating," to evaluate the company's performance and manage operations, believing it provides a more consistent and comparable measure of performance trends for its businesses.

FirstEnergy uses "Adjusted Equity," "Adjusted Debt," and "Adjusted Capitalization" to calculate and monitor its compliance with the debt-to-total capitalization financial covenant under its credit facility and term loan. This covenant requires the company to maintain a consolidated debt to total capitalization ratio of no more than 65%.

The filing states that non-GAAP financial measures may not be comparable to similarly titled measures used by other entities. Investors should use these non-GAAP measures as a supplement to, not a replacement for, GAAP financial measures and should review the provided reconciliations.