What are the main financial results being reported by Southern Company?

Southern Company is reporting its financial results for the three and six months ended June 30, 2009. The report includes earnings and earnings per share (EPS) figures.

Why is Southern Company providing non-GAAP financial measures?

Southern Company is providing non-GAAP measures to offer investors a clearer view of its ongoing business operations. These measures exclude significant, one-time charges related to a Mirant bankruptcy settlement and charges from leveraged lease tax treatments, which they believe distort the performance of regular business activities.

What specific one-time charges are being excluded in the non-GAAP figures?

The non-GAAP figures exclude a charge from a settlement agreement with MC Asset Recovery, LLC (MCAR) to resolve litigation related to the 2003 bankruptcy of Mirant Corporation. They also exclude charges related to the company's tax treatment of investments in leveraged leases, as per FASB Interpretation No. 48 and related guidance.

Are the excluded charges expected to impact future financial results?

Southern Company indicates that significant charges related to the Mirant spin-off and the leveraged lease tax treatments are not expected to occur in the future or on a regular basis, suggesting these exclusions are for understanding the current period's performance without these specific, non-recurring items.

SOUTHERN CO 8-K: Earnings & Results

Summary

Southern Company (SO) filed an 8-K on July 29, 2009, to report its financial results for the periods ended June 30, 2009. The filing primarily includes a press release and financial highlights that detail earnings and earnings per share (EPS). A key aspect of this report is the presentation of non-GAAP financial measures, which exclude significant one-time charges. These exclusions relate to a settlement with MC Asset Recovery, LLC (MCAR) concerning litigation from the Mirant Corporation bankruptcy and charges associated with the tax treatment of leveraged lease transactions under FASB Interpretation No. 48 and related guidance. Southern Company asserts that these adjusted figures provide a more useful view of ongoing business performance for investors and management. The report also indicates that the exhibits will contain business segment information for its various operating subsidiaries, including Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power. Investors should note that while GAAP figures are provided, the company emphasizes the importance of the non-GAAP measures for understanding operational performance, aiming to offer clarity beyond the impact of these specific, non-recurring charges.

Key Highlights

1Southern Company (SO) released its second quarter and year-to-date financial results for 2009.
2The company is providing both GAAP and non-GAAP financial measures to investors.
3Key non-GAAP adjustments exclude a significant charge related to the settlement of litigation stemming from the Mirant Corporation bankruptcy.
4Another significant non-GAAP adjustment excludes charges related to the tax treatment of leveraged lease transactions under FASB Interpretation No. 48.
5Southern Company states these adjustments are useful for evaluating ongoing business performance and are not expected to recur regularly.
6The filing includes exhibits with detailed financial information for the three and six months ended June 30, 2009 and 2008.
7Business segment information for Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power is also included in the exhibits.

SOUTHERN CO 8-K Report, Financial Results (Jul 29, 2009)

Summary

Key Highlights

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