8-KEarnings & Results

SOUTHERN CO 8-K Report, Financial Results (Jan 25, 2007)

Filed January 25, 2007For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

Southern Company (SO) filed an 8-K on January 25, 2007, to report its financial results for the fourth quarter and full year ended December 31, 2006. The filing primarily serves to furnish a press release and related financial exhibits detailing the company's earnings and operational performance. A key aspect of this report is the presentation of financial metrics both on a Generally Accepted Accounting Principles (GAAP) basis and on a non-GAAP basis, specifically excluding the impact of synthetic fuel investments. This exclusion is highlighted due to the partial phase-out and termination of certain tax credits associated with these investments, which significantly reduced their contribution to earnings in 2006. Management utilizes these adjusted figures to assess ongoing business performance and believes they offer valuable insights for investors comparing periods. The company also includes a cautionary statement regarding forward-looking information, outlining various risks and uncertainties that could materially affect actual results, including regulatory changes, litigation, competition, and economic conditions. Investors should note that this filing is primarily informational, providing a look at historical performance and management's perspective on ongoing operations. The emphasis on non-GAAP measures excluding synthetic fuel impacts suggests a strategic effort to present a clearer picture of the core utility business's financial health. The forward-looking statement is extensive, signaling a proactive approach to managing investor expectations by detailing potential headwinds and influencing factors within the utility and broader economic landscape.

Key Highlights

  • 1Southern Company reported its financial results for the fourth quarter and full year ended December 31, 2006.
  • 2The company provided both GAAP and non-GAAP earnings per share figures, with a specific focus on excluding the impact of synthetic fuel investments.
  • 3A significant factor affecting 2006 results was the phase-out and termination of tax credits related to synthetic fuel investments, reducing their contribution to earnings.
  • 4Management uses earnings per share excluding synthetic fuel investments to evaluate ongoing business performance and believes this non-GAAP measure is useful for investors.
  • 5The filing includes a comprehensive cautionary statement detailing numerous risks and uncertainties that could impact future financial results.
  • 6Exhibits provide detailed segment information for subsidiaries Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power.

Frequently Asked Questions

This 8-K filing serves to officially report Southern Company's earnings and financial condition for the fourth quarter and full year ended December 31, 2006, by furnishing the accompanying press release and financial exhibits.

Southern Company is presenting earnings and earnings per share excluding synthetic fuel investments because these investments' tax credits were phased out and a termination occurred in 2006, reducing their contribution to earnings. Management uses these adjusted figures to evaluate ongoing business performance and believes they offer investors a clearer comparison of performance over time.

The filing lists numerous potential risks including regulatory changes (federal and state, deregulation, Energy Policy Act of 2005), litigation and investigations (EPA, FERC, IRS, Mirant-related matters), increased competition, variations in electricity demand (weather, economy, growth), fuel costs, cost control, investment performance of benefit plans, technological advances, rate regulations, performance of non-utility projects, oil price fluctuations, synthetic fuel production levels, restructuring options, counterparty payments, new contracts, terrorist threats, interest rate fluctuations, financial market conditions, credit ratings, securing new generating capacity, and catastrophic events.

No, the information in this Current Report on Form 8-K, including the exhibits, is being 'furnished' and is not considered 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934. It also will not be incorporated by reference into any Securities Act of 1933 filings unless expressly stated.