8-KEarnings & ResultsRegulation FDExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Jul 28, 2016)

Filed July 28, 2016For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on July 28, 2016, to disclose information regarding its financial results for the three and six months ended June 30, 2016. The filing primarily consisted of press releases and reports containing financial information, including non-GAAP financial measures. The company utilizes these non-GAAP measures, such as "Operating Earnings," "Adjusted Equity," "Adjusted Debt," and "Adjusted Capitalization," to provide investors with a clearer view of its performance trends and financial health. Management uses these measures internally for performance evaluation and decision-making, and they are intended to supplement, not replace, GAAP measures. The filing also noted the company's intention to post supplemental 2016 guidance and earnings call presentation materials on its investor relations website.

Key Highlights

  • 1Disclosure of financial results for Q2 2016 and the first half of 2016.
  • 2Emphasis on the use of non-GAAP financial measures like 'Operating Earnings' to present performance.
  • 3Explanation of how 'Adjusted Equity,' 'Adjusted Debt,' and 'Adjusted Capitalization' are used to monitor debt covenants (debt to total capitalization ratio not to exceed 65%).
  • 4Management uses non-GAAP measures to facilitate historical and ongoing performance comparisons.
  • 5Company plans to release supplemental 2016 guidance and earnings call presentation on its investor website.
  • 6Information provided is intended to complement, not be a substitute for, GAAP measures.
  • 7The filing includes standard forward-looking statements and risk factors relevant to the company's operations and industry.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report FirstEnergy Corp.'s financial results for the three and six months ended June 30, 2016, by attaching press releases and reports that contain this information. It also serves to disclose the company's use of non-GAAP financial measures and provide details on upcoming investor communications.

Operating Earnings are a non-GAAP financial measure that excludes the impact of 'special items' from net income. FirstEnergy uses Operating Earnings to provide a clearer view of its ongoing operational performance and to enable better historical and ongoing performance comparisons for management and investors, as these earnings are not influenced by one-time or unusual events.

FirstEnergy uses non-GAAP financial measures such as 'Adjusted Equity,' 'Adjusted Debt,' and 'Adjusted Capitalization' to monitor its compliance with a 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%.

Investors can find supplemental 2016 guidance information and the presentation for the company's earnings call on FirstEnergy's Investor Information website at www.firstenergycorp.com/ir. The earnings call was scheduled for July 29, 2016.