Summary
Southern Company (SO) filed an 8-K on April 27, 2016, to report on its financial and operational results for the three months ended March 31, 2016. The filing primarily serves to furnish the earnings press release and related financial information. A key takeaway for investors is the significant impact of estimated probable losses related to Mississippi Power Company's Kemper IGCC project on the company's reported earnings. The company is also presenting non-GAAP financial measures, excluding these Kemper IGCC losses and costs associated with proposed acquisitions of AGL Resources Inc. and PowerSecure International, Inc., to provide a clearer view of ongoing business performance. Investors should note that the company itself highlights the uncertainty of future charges related to the Kemper project and the ongoing nature of acquisition-related costs. The supplemental non-GAAP information is provided as a means for investors to better evaluate the performance of Southern Company's core operations, though it is not a substitute for GAAP-reported figures. The filing also indicates that detailed segment information for various subsidiaries, including Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power, is available in the provided exhibits.
Key Highlights
- 1Southern Company reported financial results for the first quarter of 2016 via an 8-K filing on April 27, 2016.
- 2Estimated probable losses from Mississippi Power's Kemper IGCC project significantly impacted Q1 2016 earnings.
- 3The company is providing non-GAAP earnings and EPS figures excluding Kemper IGCC losses for better performance evaluation.
- 4Costs related to the proposed acquisitions of AGL Resources Inc. and PowerSecure International, Inc. are also being excluded from non-GAAP measures.
- 5Southern Company acknowledges that future Kemper IGCC charges may occur with uncertain frequency.
- 6Detailed financial information by business segment (Alabama Power, Georgia Power, etc.) is available in the furnished exhibits.
- 7The provided non-GAAP measures are intended to supplement, not replace, GAAP financial statements.