8-KEarnings & ResultsRegulation FDExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Feb 7, 2020)

Filed February 7, 2020For Securities:FE

Summary

FirstEnergy Corp. (FE) has filed an 8-K on February 7, 2020, detailing its financial results for the fourth quarter and full year ended December 31, 2019, along with updated financial guidance for 2020. The filing emphasizes the use of non-GAAP financial measures, specifically 'Operating earnings' and 'Operating earnings per share,' which exclude 'special items' that management believes do not reflect ongoing core business trends. Management utilizes these non-GAAP measures for performance evaluation and believes they offer a more consistent and comparable view for investors when assessing operational trends and benchmarking against peers. The company also announced the availability of an updated Investor FactBook on its website, providing additional information as of the fourth quarter and full year 2019. Investors should pay close attention to the reconciliations provided within the referenced press release and financial highlights document to understand the differences between GAAP and non-GAAP figures, as these distinctions are crucial for a comprehensive understanding of FirstEnergy's financial performance and outlook.

Key Highlights

  • 1FirstEnergy announced results for the three months and year ended December 31, 2019.
  • 2The company updated its 2020 GAAP earnings forecast range.
  • 3FirstEnergy affirmed its operating (non-GAAP) earnings guidance for 2020.
  • 4The filing provides a GAAP forecast and operating (non-GAAP) earnings guidance for the first quarter of 2020.
  • 5The report extensively discusses the use of non-GAAP financial measures, primarily 'Operating earnings' and 'Operating earnings per share,' which exclude 'special items.'
  • 6Management utilizes these non-GAAP measures to evaluate performance and believes they provide better comparability.
  • 7An updated investor FactBook as of year-end 2019 was made available on the company's website.

Frequently Asked Questions

'Special items' are charges or benefits that management believes are not indicative of the company's ongoing core activities and results of operations, or otherwise warrant separate classification. FirstEnergy excludes these items to present 'Operating earnings' and 'Operating earnings per share,' which they believe offer a more consistent and comparable measure of performance for investors to evaluate trends and compare against peers.

The reconciliation between GAAP and non-GAAP financial measures, such as Operating earnings, can be found within the referenced Press Release (Exhibit 99.1) and the 4Q 2019 Strategic and Financial Highlights document (Exhibit 99.2) attached to this 8-K filing. These documents are incorporated by reference.

The filing mentions numerous forward-looking risks, including the ability to execute an exit from commodity-based generation, regulatory and legislative developments, economic and weather conditions, changes in customer demand, cyber-attacks, the impact of the FES Bankruptcy proceedings, and changes in environmental laws and regulations.

In addition to this 8-K filing, FirstEnergy stated they would post an updated investor FactBook on their website (www.firstenergycorp.com/ir) as of the fourth quarter and year ended December 31, 2019. For a comprehensive view, investors should also refer to FirstEnergy's SEC filings, including their most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.