What is the primary reason for Southern Company providing non-GAAP financial measures in this filing?

Southern Company is providing non-GAAP financial measures, specifically adjusted earnings and earnings per share (EPS), to offer investors a clearer perspective on the performance of its ongoing business activities. These adjusted figures exclude significant, non-recurring charges and recoveries that could otherwise distort the perception of operational performance.

What specific items are being excluded from the reported earnings to arrive at the non-GAAP figures?

The non-GAAP figures exclude charges related to Mississippi Power Company's construction of the Kemper County integrated coal gasification facility, an insurance recovery received in June 2012 related to a prior settlement, and a charge from the restructuring of a leveraged lease investment completed in March 2013.

Does Southern Company expect these types of charges to recur regularly?

No, Southern Company states that these specific charges and insurance recoveries are not expected to occur with any regularity as part of its ongoing business activities, although it acknowledges that similar charges could potentially recur.

What additional financial information is included in the exhibits beyond earnings?

The exhibits include detailed segment information for its key power companies (Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power), consolidated earnings statements, kilowatt-hour sales data, and a general financial overview.

SOUTHERN CO 8-K: Earnings & Results

Summary

Southern Company (SO) filed an 8-K on July 31, 2013, to report its financial results for the periods ending June 30, 2013. The filing primarily consists of a press release and associated financial exhibits. A key focus of the report is the presentation of both GAAP (Generally Accepted Accounting Principles) and non-GAAP financial measures, specifically earnings and earnings per share (EPS). This non-GAAP presentation aims to provide investors with a clearer view of the company's ongoing operational performance by excluding significant, non-recurring charges and recoveries. Notably, the company is providing figures that exclude charges related to Mississippi Power Company's Kemper County integrated coal gasification facility construction, an insurance recovery from a prior settlement, and a restructuring charge for a leveraged lease investment. Southern Company management utilizes these adjusted figures to assess operational performance and believes they are valuable for investors seeking to understand the underlying business trends without the impact of these one-time items. The report also includes detailed segment information for its various power companies and data on kilowatt-hour sales.

Key Highlights

1Southern Company (SO) announced its financial results for the periods ending June 30, 2013, via an 8-K filing.
2The filing emphasizes the use of non-GAAP financial measures, particularly adjusted earnings per share (EPS), to highlight ongoing operational performance.
3Key exclusions from reported EPS include charges related to the Kemper County coal gasification project by Mississippi Power Company.
4The company also provided adjusted EPS by excluding a prior insurance recovery and a charge from a leveraged lease investment restructuring.
5Southern Company management uses these adjusted figures to evaluate business performance and believes they offer valuable insights to investors.
6The report includes detailed segment information for Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company, and Southern Power Company.
7Kilowatt-hour sales data for the relevant periods is also provided as part of the financial overview.

SOUTHERN CO 8-K Report, Financial Results (Jul 31, 2013)

Summary

Key Highlights

Frequently Asked Questions