Business Context and Reporting Period
This Form 8-K is a current report filed by American Electric Power Company, Inc. on December 1, 2009. The filing serves as a Regulation FD disclosure regarding investor meetings scheduled between December 1, 2009, and December 3, 2009.
Key Financial Metrics
The filing does not provide specific historical financial data such as revenue, profit, cash flow, margins, debt, or liquidity for the reporting period. The document focuses exclusively on forward-looking earnings guidance.
Material Changes and Guidance
During the investor meetings, management reaffirmed the following earnings guidance:
- 2009 Fiscal Year: Ongoing earnings of $2.90 to $3.05 per share (previously stated in an October 29, 2009, Form 8-K).
- 2010 Fiscal Year: Ongoing earnings of $2.80 to $3.20 per share (previously stated in a November 1, 2009, Press Release).
Management defines "ongoing earnings" as GAAP earnings adjusted for certain items, which they consider a more meaningful representation of performance for internal budgeting and external communication.
Risks and Contingencies
The filing includes extensive forward-looking statements and disclaims any obligation to update them. Material factors that could cause actual results to differ from projections include:
- Electric load, customer growth, and weather conditions.
- Fuel availability, costs, and supplier creditworthiness.
- Regulatory decisions, rate cases, and environmental compliance (e.g., emissions of sulfur, nitrogen, mercury, carbon).
- Resolution of litigation, including Clean Air Act enforcement and Enron Corp. bankruptcy disputes.
- Changes in financial markets affecting capital availability and debt refinancing.
- Volatility in electricity and natural gas markets.
- Performance of pension and postretirement benefit plans.
- Unforeseen events such as wars, terrorism, and catastrophic events.
Investor Verification Checklist
- Verify the specific non-GAAP adjustments used to calculate "ongoing earnings" by reviewing the November 1, 2009, Press Release and the October 29, 2009, Form 8-K.
- Monitor pending rate cases and regulatory decisions that could impact cost recovery.
- Track the status of litigation regarding Clean Air Act enforcement and Enron Corp. disputes.
- Assess current fuel costs and creditworthiness of suppliers against the guidance assumptions.
- Review the company's ability to refinance existing debt given current financial market conditions.