Summary
Southern Company (SO) filed an 8-K on July 29, 2015, to report its financial results for the three- and six-month periods ended June 30, 2015. A key takeaway for investors is the company's presentation of both GAAP and non-GAAP financial measures, particularly earnings and EPS. The non-GAAP figures exclude significant charges related to Mississippi Power Company's Kemper IGCC project and discontinued operations of Mirant Corporation. The company believes these adjusted measures provide a clearer view of ongoing business performance. The Kemper IGCC project's estimated probable losses have notably impacted reported earnings. While charges related to the Mirant settlement are not expected to recur, the Kemper IGCC charges are identified as potential future events. Investors should pay close attention to these adjustments when evaluating Southern Company's operational and financial health, as they aim to isolate the performance of core, continuing operations.
Key Highlights
- 1Southern Company reported its financial results for the periods ending June 30, 2015, via an 8-K filing.
- 2The filing includes both GAAP and non-GAAP financial measures, providing adjusted earnings and EPS.
- 3Key adjustments to non-GAAP measures include excluding charges for estimated probable losses related to the Kemper IGCC project.
- 4Additional adjustments exclude costs from discontinued operations of Mirant Corporation and a March 2009 settlement.
- 5The Kemper IGCC charges have significantly impacted reported earnings for the periods presented.
- 6Southern Company states its use of non-GAAP measures is to offer investors insight into ongoing business performance.
- 7Exhibits to the filing include segment information for its various power companies and detailed financial overviews.