Summary
This 8-K filing from Southern Company (SO) on October 27, 2010, primarily serves to furnish important financial information related to the company's earnings for the periods ended September 30, 2010. Investors should note that the company is providing both GAAP (Generally Accepted Accounting Principles) and non-GAAP financial measures. The non-GAAP measures exclude a charge related to a settlement agreement with MC Asset Recovery, LLC (MCAR) concerning litigation from the 2003 bankruptcy of Mirant Corporation. Southern Company highlights this exclusion as useful for investors to assess the performance of its ongoing business activities, as the MCAR settlement charge significantly impacted prior period results and is not expected to recur. The filing also indicates that detailed financial data for the third quarter and the first nine months of 2010, along with segment information for its key operating subsidiaries (Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power), is available through various attached exhibits. This comprehensive disclosure aims to provide a clearer picture of the company's operational performance, especially when accounting for one-time charges.
Key Highlights
- 1Southern Company filed an 8-K on October 27, 2010, to report financial results for the period ending September 30, 2010.
- 2The company is providing both GAAP and non-GAAP earnings per share (EPS) figures.
- 3Non-GAAP EPS excludes a significant charge from a settlement with MC Asset Recovery, LLC (MCAR) related to Mirant Corporation's 2003 bankruptcy.
- 4Management believes excluding the MCAR settlement charge provides a better view of ongoing business performance.
- 5The MCAR settlement charge was a material item impacting prior periods and is not expected to reoccur.
- 6Various exhibits are attached, offering detailed financial highlights, EPS analysis, consolidated earnings, kilowatt-hour sales, and financial overviews for Southern Company and its subsidiaries.
- 7Information is provided for Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company, and Southern Power Company.