8-KEarnings & ResultsExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Jul 23, 2019)

Filed July 23, 2019For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on July 23, 2019, to announce its financial results for the second quarter and first half of 2019. The filing primarily focuses on the company's updated GAAP earnings forecast, affirmation of its 2019 operating (non-GAAP) earnings guidance, and new operating earnings guidance for the third quarter of 2019. Investors should note that the company utilizes non-GAAP financial measures, such as "Operating earnings," to provide a clearer view of ongoing core business trends by excluding "special items." These special items can include charges or benefits that management believes do not represent the company's core operational performance. The company also detailed its approach to calculating "Operating earnings per share," which accounts for the full impact of share dilution from a significant equity issuance in January 2018. Management uses these non-GAAP metrics to evaluate performance and manage operations, believing they offer consistent and comparable insights for investors assessing trends and peer comparisons. The filing includes standard forward-looking statements, cautioning investors about potential risks and uncertainties that could materially affect actual results, including matters related to commodity-based generation exit, FES bankruptcy proceedings, strategic goals, regulatory developments, and economic conditions.

Key Highlights

  • 1FirstEnergy Corp. (FE) announced its Q2 and H1 2019 financial results via an 8-K filing on July 23, 2019.
  • 2The company updated its 2019 GAAP earnings forecast range.
  • 3FE affirmed its previously issued 2019 operating (non-GAAP) earnings guidance.
  • 4New operating (non-GAAP) earnings guidance for the third quarter of 2019 was provided.
  • 5The filing emphasizes the use of non-GAAP financial measures like 'Operating earnings' to reflect core business performance, excluding 'special items'.
  • 6Operating earnings per share calculations incorporate the full impact of share dilution from the January 2018 equity issuance.
  • 7Standard forward-looking statements are included, highlighting various risks and uncertainties that could impact future results.

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, 2019, and to provide updated earnings guidance for 2019, including guidance for the third quarter.

Operating earnings are a non-GAAP financial measure that FirstEnergy uses to present its financial performance. This measure excludes 'special items' (charges or benefits that management believes are not indicative of ongoing core activities) to provide a clearer view of the company's recurring operational trends. Management believes these non-GAAP measures are useful for investors to understand performance trends and compare the company against its peers.

FirstEnergy's calculation of Operating earnings per share (OEPS) accounts for the full impact of share dilution resulting from a significant equity issuance in January 2018. The number of shares used in the OEPS calculation reflects this dilution.

The forward-looking statements highlight several risks, including the ability to successfully exit commodity-based generation, risks associated with the FES bankruptcy proceedings, achieving strategic and financial goals, regulatory developments, economic and weather conditions, changes in customer demand, cybersecurity threats, environmental regulations, and changes in tax laws.