8-KRegulation FDExhibits & Filings

FIRSTENERGY CORP 8-K Report, Regulation FD Disclosure (Mar 31, 2020)

Filed March 31, 2020For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on March 31, 2020, primarily to disclose investor presentation slides that provide an update on the company's position regarding COVID-19. Notably, these slides also update the company's full-year 2020 and Q1 2020 GAAP earnings guidance, while affirming its previously issued operating (non-GAAP) earnings guidance for the same periods. The filing also reaffirms operating (non-GAAP) earnings guidance through 2021 and 2023. The company emphasizes its use of non-GAAP financial measures, such as "Operating earnings" and "Operating earnings per share," which exclude "special items" management believes do not reflect ongoing core activities. These non-GAAP measures are presented to provide a clearer view of performance trends and comparability, though they may not be comparable to similar measures used by other companies.

Key Highlights

  • 1FirstEnergy released investor slides addressing its COVID-19 response and providing updated earnings guidance.
  • 2The company updated its full-year 2020 and Q1 2020 GAAP earnings guidance.
  • 3FirstEnergy affirmed its full-year 2020 and Q1 2020 operating (non-GAAP) earnings guidance.
  • 4Operating (non-GAAP) earnings guidance was also affirmed through 2021 and 2023.
  • 5The filing reiterates the company's reliance on non-GAAP financial measures like 'Operating earnings' for performance evaluation.
  • 6These non-GAAP measures exclude 'special items' to better reflect core business operations.
  • 7Reconciliations between non-GAAP and GAAP measures are provided within the investor slides.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose investor presentation slides that provide an overview of FirstEnergy's COVID-19 response, update its GAAP earnings guidance for Q1 and full-year 2020, and affirm its non-GAAP earnings guidance for 2020, 2021, and 2023.

The filing indicates an update to FirstEnergy's GAAP earnings guidance for Q1 and full-year 2020. However, it affirms the previously issued operating (non-GAAP) earnings guidance for these periods and extends the affirmation through 2021 and 2023. Investors should refer to the investor slides (Exhibit 99.1) for the specific updated guidance figures.

FirstEnergy uses non-GAAP financial measures, such as 'Operating earnings' and 'Operating earnings per share,' to exclude 'special items' that management believes do not represent the company's ongoing core activities. Management uses these measures to evaluate performance, manage operations, and facilitate historical and ongoing performance comparisons, believing they offer more consistent and comparable insights into business performance and trends.

The filing states that while management believes its non-GAAP measures are useful for understanding performance trends and comparing against peers, these measures may not be comparable to similarly titled measures used by other entities. Investors should exercise caution when comparing these non-GAAP figures across different companies.