Why is Southern Company providing adjusted kilowatt-hour sales data?

Southern Company is providing adjusted kilowatt-hour sales data for 2005 and 2006 to offer investors a more consistent basis for comparison. This adjustment accounts for a reclassification of certain industrial customers to commercial customers by Georgia Power Company in 2005, aligning the presentation for both years.

What are synthetic fuel investments and why are their results being excluded from some earnings figures?

Southern Company's synthetic fuel investments generated significant earnings and EPS in 2005 primarily due to tax credits. However, these tax credits were expected to be phased out or significantly reduced in 2006 due to higher oil prices. By excluding these results, Southern Company aims to provide investors with a clearer view of the company's core operational performance, separate from the volatile benefits of these tax credits.

What is the purpose of the cautionary statement in the filing?

The cautionary statement is a standard disclosure that warns investors that the forward-looking information presented in the filing is based on current expectations and is subject to various risks and uncertainties. It lists factors such as regulatory changes, litigation, competition, and economic conditions that could cause actual results to differ materially from those projected. Investors are encouraged to consider these risks carefully.

Does this filing include detailed financial statements for the third quarter of 2006?

This 8-K filing primarily announces the earnings release and provides highlights and supplementary information related to the third quarter and first nine months of 2006. The detailed financial statements are referenced as being included in the attached exhibits (such as press releases and financial highlights), and investors would need to review those specific exhibits for comprehensive financial data.

SOUTHERN CO 8-K: Earnings & Results

Summary

This 8-K filing by The Southern Company (SO) on October 26, 2006, primarily serves to furnish earnings information for the third quarter and the first nine months of 2006. The report highlights the company's financial performance and provides supplementary data to aid investor understanding. Notably, the company is presenting adjusted kilowatt-hour sales figures to provide a more consistent comparison between 2005 and 2006, particularly due to a reclassification of industrial customers to commercial customers in Georgia Power Company's rate structure during 2005. Additionally, Southern Company is providing earnings and earnings per share (EPS) figures that exclude the impact of its synthetic fuel investments. This exclusion is significant as these investments had a substantial positive impact on 2005 earnings due to tax credits, which were expected to be phased out or significantly reduced in 2006 due to higher oil prices. The company believes these adjusted figures offer investors a clearer view of the underlying operational performance beyond the synthetic fuel venture's fluctuating benefits. The filing also includes a cautionary statement regarding forward-looking information, emphasizing that actual results could differ materially from projections due to various risks and uncertainties. These include regulatory changes, litigation, competition, demand fluctuations, fuel costs, technological advancements, rate regulations, and general economic and market conditions. Investors are advised to review the full cautionary statement for a comprehensive understanding of potential risks.

Key Highlights

1The Southern Company released its earnings for the third quarter and first nine months ended September 30, 2006.
2Adjusted kilowatt-hour sales data is provided for 2005 and 2006 to ensure consistent comparison, addressing a customer reclassification in Georgia Power.
3Earnings and EPS figures are presented both on a GAAP basis and excluding the impact of synthetic fuel investments.
4The exclusion of synthetic fuel investments is due to expected phase-outs of tax credits in 2006, which had boosted 2005 results.
5The company believes adjusted figures offer investors a better comparison of ongoing operational performance.
6A comprehensive cautionary statement details numerous risks and uncertainties that could impact future financial results.
7The filing is furnished on behalf of Southern Company and its subsidiaries: Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company, and Southern Power Company.

SOUTHERN CO 8-K Report, Financial Results (Oct 26, 2006)

Summary

Key Highlights

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