8-KEarnings & Results

SOUTHERN CO 8-K Report, Financial Results (Jul 27, 2016)

Filed July 27, 2016For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

Southern Company (SO) filed an 8-K on July 26, 2016, to report its financial results for the three and six-month periods ending June 30, 2016. The filing primarily highlights the company's earnings and financial condition, emphasizing the impact of significant charges on reported GAAP earnings. Key financial details, including both GAAP and non-GAAP measures, are presented in accompanying exhibits. Investors should pay close attention to the reconciliation of these non-GAAP figures, particularly those excluding charges related to the Kemper IGCC project, acquisition costs for Southern Company Gas and PowerSecure International, and historical costs related to Mirant Corporation and MCAR. Management uses these adjusted figures to assess ongoing business performance.

Key Highlights

  • 1Southern Company announced its financial results for the period ending June 30, 2016, via an 8-K filing.
  • 2The report includes both GAAP and non-GAAP financial measures, offering a detailed view of earnings and EPS.
  • 3Significant charges related to Mississippi Power Company's Kemper IGCC project materially impacted reported earnings.
  • 4Costs associated with the acquisitions of Southern Company Gas and PowerSecure International are detailed.
  • 5The company also addresses historical costs from discontinued operations of Mirant Corporation and a settlement with MCAR.
  • 6Management utilizes non-GAAP measures to evaluate the performance of ongoing business activities, providing insights beyond GAAP reporting.
  • 7Additional exhibits provide segment information for various subsidiaries, including Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Southern Power.

Frequently Asked Questions

This 8-K filing primarily reports Southern Company's earnings and financial condition for the three and six-month periods ending June 30, 2016. It includes detailed financial results, both under GAAP and adjusted non-GAAP measures, to provide a comprehensive view of the company's performance.

The Kemper IGCC (integrated coal gasification combined cycle) project is a facility being constructed by Mississippi Power Company. The filing indicates that estimated probable losses related to this project have significantly impacted Southern Company's reported earnings and EPS for the periods presented, and similar charges may occur in the future.

Southern Company presents non-GAAP financial measures, such as earnings and EPS excluding certain charges, to provide investors with additional information that management believes is useful for evaluating the performance of the company's ongoing business activities. These adjusted figures help to isolate the operational performance from specific, often one-time or integration-related, costs.

The filing notes that costs related to the acquisitions of Southern Company Gas and PowerSecure International, Inc. are ongoing and impact the reported financial results. These costs are excluded from the non-GAAP measures to provide a clearer view of the ongoing operational performance.