8-KEarnings & Results

SOUTHERN CO 8-K Report, Financial Results (Nov 5, 2012)

Filed November 5, 2012For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

This 8-K filing from Southern Company (SO) on November 5, 2012, primarily serves to report the company's financial results for the periods ending September 30, 2012. The core of the report is a press release and accompanying financial exhibits detailing earnings and operational performance. A key point for investors is the company's presentation of both GAAP and non-GAAP financial measures, specifically highlighting earnings per share (EPS) both with and without an insurance recovery received in June 2012 related to a past lawsuit settlement. Southern Company emphasizes that this insurance recovery is a non-recurring item and is not expected to be a regular part of their business activities. By providing an "adjusted" view of EPS, the company aims to offer investors a clearer perspective on the underlying performance of its ongoing operations. The filing also indicates that detailed segment information for its various power companies, such as Alabama Power and Georgia Power, is included in the furnished exhibits, providing a granular view of the company's diverse operations.

Key Highlights

  • 1Southern Company filed an 8-K on November 5, 2012, reporting financial results for the quarter and nine months ended September 30, 2012.
  • 2The filing includes a press release and financial exhibits detailing earnings and operational performance.
  • 3The company is providing both GAAP and non-GAAP financial measures, with a focus on EPS.
  • 4A significant non-recurring item, an insurance recovery from a June 2012 settlement, is being excluded from certain EPS calculations.
  • 5Southern Company believes this exclusion provides investors with a better view of ongoing business performance.
  • 6Detailed segment information for its subsidiary power companies (Alabama Power, Georgia Power, etc.) is provided in the exhibits.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce and provide the financial results of Southern Company for the fiscal periods ending September 30, 2012, including the third quarter and the year-to-date nine months. It also furnishes related financial information through various exhibits.

Southern Company is presenting adjusted EPS to exclude the impact of a one-time insurance recovery received in June 2012 related to a lawsuit settlement. They believe this non-GAAP measure provides investors with a more accurate representation of the company's ongoing business performance, as the recovery is not expected to recur regularly.

The insurance recovery originated from a June 2012 settlement related to a March 2009 settlement with MC Asset Recovery, LLC (MCAR). This lawsuit stemmed from the 2003 bankruptcy of Mirant Corporation, which was a subsidiary of Southern Company until 2001.

Detailed financial information, including business segment data for Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company, and Southern Power Company, is available in the exhibits (99.01 through 99.07) furnished with this 8-K filing.