Summary
Southern Company (SO) filed an 8-K on July 30, 2014, to announce its financial results for the periods ending June 30, 2014. The filing primarily consists of press releases and financial data, with a significant focus on providing non-GAAP (Generally Accepted Accounting Principles) financial measures. The company highlighted earnings and earnings per share (EPS) both on a GAAP basis and on an adjusted basis, excluding significant charges related to Mississippi Power Company's Kemper County integrated coal gasification combined cycle (IGCC) facility and a restructuring charge from a leveraged lease investment in 2013. Southern Company emphasizes that these adjusted figures offer investors a clearer view of the performance of its ongoing business operations by removing unusual or infrequent items. Investors should note that the majority of the detailed financial information is contained within the furnished exhibits (99.01 through 99.07), which include segment information for its various power companies. The exclusion of charges related to the Kemper IGCC project is a key point for investors to understand when evaluating the company's profitability and operational performance during this period, as these charges had a substantial impact on reported GAAP figures. The company's management also utilizes these non-GAAP measures for internal performance evaluation.
Key Highlights
- 1Southern Company reported its financial results for the second quarter and first half of 2014.
- 2The company is providing both GAAP and non-GAAP earnings per share (EPS) figures.
- 3Non-GAAP EPS excludes significant charges related to the Kemper County IGCC project by Mississippi Power Company.
- 4Non-GAAP EPS also excludes a 2013 charge related to the restructuring of a leveraged lease investment.
- 5Southern Company believes non-GAAP measures offer a better view of ongoing business performance.
- 6Detailed financial information, including segment data for its operating companies, is available in the furnished exhibits.