8-KEarnings & Results

SOUTHERN CO 8-K Report, Financial Results (Feb 21, 2018)

Filed February 21, 2018For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

Southern Company (SO) filed an 8-K on February 21, 2018, to report its fourth-quarter and full-year 2017 financial results. The filing includes a press release and supplementary financial information detailing earnings for the periods ended December 31, 2017. Investors should note that the company is providing both GAAP and non-GAAP financial measures, with the latter excluding significant items that management believes do not reflect ongoing business performance. Key items excluded from the non-GAAP results include charges related to the Kemper IGCC project, costs associated with the acquisition and integration of Southern Company Gas, write-downs at Plant Scherer, and impacts from federal tax reform. The company utilizes these non-GAAP measures to provide a clearer view of its core operations and management's performance evaluation. The filing also furnishes segment information for its various utility subsidiaries and Southern Company Gas, along with data on kilowatt-hour sales and customer counts.

Key Highlights

  • 1Southern Company released its Q4 and Full-Year 2017 financial results on February 21, 2018.
  • 2The report provides both GAAP and non-GAAP earnings and EPS figures for the periods ended December 31, 2017.
  • 3Significant charges, including those related to the Kemper IGCC project and Southern Company Gas acquisition/integration, are excluded from non-GAAP results.
  • 4A write-down of Gulf Power Company's ownership in Plant Scherer Unit 3 is also excluded from the twelve-month non-GAAP results.
  • 5The impact of federal tax reform legislation on net tax benefit is excluded from Q4 2017 non-GAAP results.
  • 6The company is furnishing segment information for its key operating utilities and Southern Company Gas.
  • 7Kilowatt-hour sales and customer data are provided as part of the supplemental information.

Frequently Asked Questions

This 8-K filing is primarily to announce Southern Company's earnings for the three-month and twelve-month periods ended December 31, 2017, and to furnish related financial information and a press release.

Significant items excluded from non-GAAP earnings include charges for estimated losses on the Kemper IGCC project, costs related to the acquisition and integration of Southern Company Gas, earnings from the Wholesale Gas Services business, a write-down of Plant Scherer Unit 3, and the net tax benefit from federal tax reform. The company believes these exclusions provide a better view of ongoing business performance.

Detailed financial results, including GAAP and non-GAAP measures, segment information, and operational data like kilowatt-hour sales and customer counts, are provided in the exhibits attached to this 8-K filing, specifically Exhibits 99.01 through 99.07.

Southern Company believes that presenting earnings and earnings per share excluding certain items is useful to investors as it provides additional information to evaluate the performance of the company's ongoing business activities. Management also uses these non-GAAP measures for performance evaluation.