8-KEarnings & ResultsRegulation FDExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Feb 16, 2016)

Filed February 16, 2016For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on February 16, 2016, to report on its financial results for the quarter and year ended December 31, 2015, and to provide guidance for the first quarter of 2016. The filing includes press releases and consolidated reports containing non-GAAP financial measures, such as Operating Earnings, Adjusted Equity, Adjusted Debt, and Adjusted Capitalization. Management uses these non-GAAP measures to evaluate performance and monitor compliance with debt covenants, specifically the requirement to maintain a consolidated debt to total capitalization ratio of no more than 65% under their credit facility. While the filing does not detail specific financial results, it emphasizes the company's use of these alternative metrics to provide a clearer view of operational performance and financial health to investors. Investors should note that these non-GAAP measures may not be comparable to those of other companies and are intended to supplement, not replace, GAAP-based reporting. The company also announced the upcoming posting of an updated investor FactBook to its website.

Key Highlights

  • 1FirstEnergy Corp. (FE) filed an 8-K on February 16, 2016, concerning Q4 and full-year 2015 results and Q1 2016 guidance.
  • 2The report references non-GAAP financial measures including Operating Earnings, Adjusted Equity, Adjusted Debt, and Adjusted Capitalization.
  • 3These non-GAAP measures are used by management for performance evaluation and operational management.
  • 4Management uses non-GAAP measures to monitor compliance with a debt-to-capitalization ratio of no more than 65% under its credit facility.
  • 5The company provided quantitative reconciliations of non-GAAP to GAAP measures as required by Regulation G.
  • 6An updated investor FactBook for Q4 and year-end 2015 will be posted on the company's website.
  • 7The filing incorporates by reference an issued Press Release (Exhibit 99.1) and Consolidated Report to the Financial Community (Exhibit 99.2).

Frequently Asked Questions

This filing emphasizes the use of non-GAAP financial measures such as Operating Earnings, Adjusted Equity, Adjusted Debt, and Adjusted Capitalization. These are used by management to assess performance and manage the business, supplementing the standard GAAP financial reporting.

Management believes these non-GAAP measures, particularly 'Operating Earnings,' provide a more consistent and comparable view of performance trends by excluding 'special items.' They are also used to track compliance with financial covenants, such as maintaining a consolidated debt to total capitalization ratio below 65%, which is important for understanding the company's financial health and borrowing capacity.

The detailed financial results for the period ended December 31, 2015, and operating earnings guidance for Q1 2016 are contained within the Press Release (Exhibit 99.1) and the Consolidated Report to the Financial Community (Exhibit 99.2) that are attached to this 8-K filing. An updated investor FactBook will also be posted to the company's website.

FirstEnergy states that these non-GAAP financial measures may not be comparable to similarly titled measures used by other entities. They are intended to complement, not replace, the most directly comparable GAAP financial measures.