8-KEarnings & Results

SOUTHERN CO 8-K Report, Financial Results (May 3, 2017)

Filed May 3, 2017For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

Southern Company (SO) filed an 8-K on May 3, 2017, to report its first-quarter 2017 financial results. The filing primarily consists of a press release and supplementary financial information, highlighting the company's earnings performance for the three months ended March 31, 2017. A significant focus of the report is the presentation of both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures, with the latter providing adjusted earnings per share to exclude specific charges and costs that management believes are not indicative of ongoing business operations. Key items impacting the non-GAAP figures include charges related to Mississippi Power Company's Kemper IGCC project, a write-down on Gulf Power Company's Plant Scherer Unit 3 ownership, and costs associated with the acquisition and integration of Southern Company Gas. Investors are encouraged to review the provided reconciliations to understand the adjustments made to GAAP figures. The report also includes segment-specific financial information and operational data such as kilowatt-hour sales and customer counts.

Key Highlights

  • 1Southern Company announced its Q1 2017 financial results via an 8-K filing on May 3, 2017.
  • 2The company presented both GAAP and non-GAAP earnings per share for the three months ended March 31, 2017.
  • 3Adjusted earnings exclude charges related to the Kemper IGCC project (Mississippi Power) and a write-down for Plant Scherer Unit 3 (Gulf Power).
  • 4Costs related to the acquisition and integration of Southern Company Gas were also excluded from non-GAAP measures.
  • 5Specific earnings impacts from the Wholesale Gas Services business of Southern Company Gas were also detailed in adjusted figures.
  • 6The filing includes detailed segment information for Alabama Power, Georgia Power, Gulf Power, Mississippi Power, Southern Power, and Southern Company Gas.
  • 7Operational data such as Kilowatt-Hour Sales and Customer counts are provided in the supplemental exhibits.

Frequently Asked Questions

This 8-K filing serves to report Southern Company's financial results for the first quarter ended March 31, 2017, primarily through a press release and associated financial exhibits. It provides investors with an update on the company's performance and operational metrics.

Southern Company presents non-GAAP financial measures to provide investors with a clearer view of its ongoing business operations. These adjusted figures exclude certain significant charges and costs, such as those related to the Kemper IGCC project, a Plant Scherer write-down, and acquisition integration costs, which management believes are not representative of the company's core performance.

The key items excluded from Southern Company's non-GAAP earnings include estimated probable losses related to the Kemper IGCC facility, a write-down of Gulf Power's ownership in Plant Scherer Unit 3, costs associated with the acquisition and integration of Southern Company Gas, and specific earnings from the Wholesale Gas Services business.

The 8-K filing refers to several exhibits (99.01 through 99.07) which contain the press release, financial highlights, earnings analysis, consolidated earnings, business segment information, and operational data like kilowatt-hour sales and customer numbers. Investors should consult these exhibits for a comprehensive understanding of the financial results.