Summary
This 10-Q filing for Southern Co. (SO) for the period ending September 29, 2015, primarily details the financial performance of its subsidiary, Alabama Power Company. Alabama Power reported an increase in net income for the third quarter and year-to-date periods compared to the previous year, largely driven by rate increases and a decrease in depreciation expenses. Retail revenues saw a modest increase, supported by rate adjustments, though sales growth remained flat to slightly positive. Key operational aspects for Alabama Power include a reduction in fuel and purchased power expenses, driven by lower fuel costs. However, the company also experienced an increase in other operations and maintenance expenses, particularly employee benefit costs. Significant balance sheet changes involved increases in property, plant, and equipment, cash, and long-term debt, alongside decreases in redeemable preferred and preference stock due to redemptions. The company's financial condition remained stable, with a focus on managing capital and liquidity needs through various market access avenues and credit arrangements.
Financial Highlights
31 data points| Revenue | $5.40B |
| Operating Expenses | $3.75B |
| Operating Income | $1.65B |
| Net Income | $970.00M |
| EPS (Basic) | $1.05 |
| EPS (Diluted) | $1.05 |
| Shares Outstanding (Basic) | 910.00M |
| Shares Outstanding (Diluted) | 912.00M |
Key Highlights
- 1Alabama Power's net income increased by 4.6% in Q3 2015 and 3.6% year-to-date, primarily due to rate increases and lower depreciation.
- 2Retail revenues for Alabama Power increased by 3.0% in Q3 2015 and 2.3% year-to-date, driven by rate and pricing adjustments.
- 3Fuel and purchased power expenses decreased for Alabama Power in both Q3 and year-to-date periods due to lower fuel costs.
- 4Other operations and maintenance expenses increased for Alabama Power, notably employee benefit costs, and nuclear generation costs.
- 5Alabama Power saw significant balance sheet changes, including a $829 million increase in property, plant, and equipment and a $523 million increase in long-term debt.
- 6The company's financial condition remained stable, with $609 million in cash and cash equivalents at quarter-end.
- 7Market risk disclosures indicated no material changes from the prior year's 10-K.