8-KEarnings & Results

SOUTHERN CO 8-K Report, Financial Results (Nov 1, 2017)

Filed November 1, 2017For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

Southern Company (SO) filed an 8-K on November 1, 2017, to report its financial results for the three-month and nine-month periods ended September 30, 2017. The filing includes a press release and additional financial information, with a focus on both GAAP and non-GAAP earnings per share. Investors should note that the company is presenting results that exclude significant one-time items, such as charges related to the Kemper IGCC project, acquisition and integration costs for Southern Company Gas, and a write-down at Plant Scherer Unit 3.

Key Highlights

  • 1Southern Company reported financial results for the periods ended September 30, 2017.
  • 2The filing provides both GAAP and non-GAAP (adjusted) earnings per share.
  • 3Significant charges related to the Kemper IGCC project are a key factor impacting reported earnings.
  • 4Costs associated with the acquisition and integration of Southern Company Gas are also excluded in non-GAAP measures.
  • 5A write-down for Gulf Power Company's ownership of Plant Scherer Unit 3 is another item excluded from adjusted earnings for the nine-month period.
  • 6The company believes its non-GAAP presentation offers a clearer view of ongoing business performance.
  • 7Detailed segment information for various subsidiaries including Alabama Power, Georgia Power, and Southern Company Gas is included in the exhibits.

Frequently Asked Questions

The primary reasons for the differences are charges related to the Kemper IGCC project, costs associated with the acquisition and integration of Southern Company Gas, and a write-down of Plant Scherer Unit 3 for Gulf Power Company. Southern Company provides these non-GAAP measures to offer investors a view of ongoing business performance.

The filing indicates that charges for estimated losses relating to Mississippi Power Company's Kemper IGCC construction project are a significant item excluded from the company's non-GAAP earnings. Investors should review the detailed reconciliations in the exhibits for the exact financial impact.

Southern Company states that it believes presenting earnings and earnings per share excluding these specific items is useful to investors. It provides additional information to evaluate the performance of the company's ongoing business activities, and management also uses these measures for performance evaluation.

The detailed financial information, including reconciliations of non-GAAP measures to GAAP, is provided in the exhibits to this 8-K filing, specifically Exhibits 99.01 through 99.07.