8-KEarnings & Results

SOUTHERN CO 8-K Report, Financial Results (Apr 30, 2014)

Filed April 30, 2014For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

Southern Company (SO) filed an 8-K on April 30, 2014, to report on its financial and operational results for the first quarter ended March 31, 2014. The filing primarily consists of a press release and supplementary financial information, which are furnished as exhibits. A key focus of the report is the impact of significant charges on reported earnings, specifically related to the Kemper County integrated gasification combined cycle (IGCC) facility construction by Mississippi Power Company and a restructuring charge from a leveraged lease investment in the prior year. The company provides both GAAP and non-GAAP (adjusted) earnings per share figures to offer investors a clearer view of ongoing operational performance by excluding these material, non-recurring items. Investors should pay close attention to the adjusted earnings metrics as they aim to represent the core business performance. The inclusion of detailed segment information for its operating companies (Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power) is also provided, along with data on kilowatt-hour sales. The company's management utilizes these adjusted figures to assess the performance of its core operations, underscoring their importance for understanding underlying business trends beyond the reported GAAP net income, which was significantly affected by the aforementioned charges.

Key Highlights

  • 1Southern Company (SO) filed an 8-K on April 30, 2014, to report Q1 2014 earnings.
  • 2The report includes both GAAP and non-GAAP (adjusted) earnings per share (EPS) for the three months ended March 31, 2014, and 2013.
  • 3Significant charges related to Mississippi Power's Kemper IGCC facility construction and a 2013 leveraged lease restructuring impacted reported earnings.
  • 4Southern Company provided adjusted EPS to offer investors a view of ongoing business performance, excluding these non-recurring charges.
  • 5The filing includes detailed segment information for its primary operating utilities: Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power.
  • 6Kilowatt-hour sales data for the period is also furnished.
  • 7The company's management uses adjusted earnings to evaluate the performance of its ongoing business activities.

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