8-KEarnings & ResultsExhibits & Filings

FIRSTENERGY CORP 8-K Report, Financial Results (Apr 23, 2020)

Filed April 23, 2020For Securities:FE

Summary

FirstEnergy Corp. (FE) filed an 8-K on April 23, 2020, to report its first-quarter 2020 financial results and provide updated and affirmed guidance for the full year 2020 and beyond. The filing emphasizes the company's use of non-GAAP financial measures, specifically "Operating earnings" and "Operating earnings per share," which exclude "special items" to better reflect ongoing core operational trends. Management believes these non-GAAP measures offer a more consistent and comparable view of performance for investors and the market compared to GAAP figures, particularly when assessing trends and peer comparisons. The report also includes forecasts for the second quarter of 2020 and reaffirms full-year 2020 operating earnings guidance. While not detailing specific financial figures for the quarter, the 8-K serves as a communication channel for these updates. Investors are advised to review the attached Press Release and 1Q 2020 Strategic and Financial Highlights for detailed financial information and reconciliations between GAAP and non-GAAP measures. The filing also contains standard forward-looking statements and risk factors, including potential impacts from the COVID-19 pandemic.

Key Highlights

  • 1FirstEnergy Corp. filed an 8-K on April 23, 2020, to disclose Q1 2020 financial results and updated/affirmed guidance.
  • 2The company heavily utilizes non-GAAP financial measures, primarily 'Operating earnings' and 'Operating earnings per share'.
  • 3These non-GAAP measures exclude 'special items' which management believes obscure core operational trends.
  • 4Management asserts these non-GAAP figures provide better comparability for investors and for peer analysis.
  • 5Full-year 2020 GAAP guidance was updated, while full-year 2020 and multi-year operating (non-GAAP) guidance was affirmed.
  • 6A forecast for second-quarter 2020 GAAP and operating earnings was also provided.
  • 7The filing includes standard forward-looking statements and acknowledges potential risks from COVID-19.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report FirstEnergy Corp.'s financial results for the three months ended March 31, 2020, and to provide updated full-year 2020 GAAP guidance, while affirming its operating (non-GAAP) earnings guidance for 2020 and beyond. It also includes a forecast for the second quarter of 2020.

FirstEnergy emphasizes non-GAAP financial measures, such as 'Operating earnings' and 'Operating earnings per share', because management believes they exclude 'special items' (charges or benefits not indicative of ongoing operations) and provide a more consistent and comparable view of the company's performance over time and against its peers. They are intended to complement, not replace, GAAP measures.

Detailed financial results and the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures can be found in the documents attached to this 8-K filing as Exhibits 99.1 (Press Release) and 99.2 (1Q 2020 Strategic and Financial Highlights).

The filing highlights several risks, including the extent and impact of the COVID-19 pandemic on operations and financial condition, potential disruptions to business and capital markets, legislative and regulatory developments, economic and weather conditions, changes in customer demand for power, cyber-attacks, and changes in environmental laws and regulations.