What is the main purpose of this 8-K filing?

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.

Why did Southern Company use non-GAAP financial measures?

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.

What were the specific one-time items excluded from the non-GAAP earnings?

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.

Should investors only look at the non-GAAP numbers?

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.

SOUTHERN CO 8-K SEC Disclosure

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.

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

Summary

Key Highlights

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