8-KOther Events

SOUTHERN CO 8-K Report (Jan 29, 2004)

Filed January 29, 2004For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

This Form 8-K filing by The Southern Company (SO) on January 29, 2004, primarily serves to furnish investors with earnings information for the quarter and year ended December 31, 2003. The report includes a press release and supplementary financial data detailing the company's operational and financial performance. Of particular note is the company's use of non-GAAP (Generally Accepted Accounting Principles) financial measures to present earnings, adjusting for significant one-time items that management believes are not indicative of ongoing operational results. Investors should pay attention to the specific adjustments made to the reported earnings. These include excluding a $37 million after-tax expense related to a Mississippi Power Company regulatory order and an $88 million after-tax gain from the termination of wholesale contracts with Dynegy, Inc. subsidiaries. While the company believes these adjustments provide a clearer view of its core business, it's crucial for investors to also consider the GAAP-reported figures and understand the nature and impact of these one-time events on the reported financial performance.

Key Highlights

  • 1Southern Company filed a Form 8-K on January 29, 2004, to report earnings for the quarter and year ended December 31, 2003.
  • 2The filing includes a press release (Exhibit 99.01) and additional financial information (Exhibits 99.02-99.06).
  • 3Southern Company provided non-GAAP earnings data alongside GAAP figures, excluding specific one-time items.
  • 4A $37 million after-tax expense related to a Mississippi Power Company regulatory order was excluded from non-GAAP earnings.
  • 5An $88 million after-tax gain from the termination of wholesale contracts with Dynegy, Inc. subsidiaries was also excluded from non-GAAP earnings.
  • 6The company asserts that these excluded items are not indicative of its continuing operating results and are used for planning and forecasting.
  • 7The report is filed on behalf of seven registrants within The Southern Company system, providing segment information for each.

Frequently Asked Questions

The main purpose of this Form 8-K filing is to report Southern Company's earnings for the quarter and year ended December 31, 2003. It includes a press release and supplementary financial data to inform investors about the company's financial performance during that period.

Southern Company used non-GAAP financial measures to provide investors with a view of earnings that excludes specific one-time events. The company believes these adjustments, such as a regulatory expense and a contract termination gain, are not indicative of its ongoing operational results and are useful for management's planning and forecasting.

The company excluded a $37 million after-tax expense related to an interim state regulatory order for Mississippi Power Company regarding capacity from Plant Daniel, and an $88 million after-tax gain from the termination of long-term wholesale contracts with Dynegy, Inc. subsidiaries. These are presented as a 5 cents per share expense and an 11 cents per share gain, respectively.

No, investors should not solely rely on the non-GAAP figures. The company itself states that the non-GAAP presentation is not a substitute for GAAP measures. It is important to review both GAAP and non-GAAP figures to understand the full financial picture, including the impact of the excluded one-time events on the reported results.