What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to officially report Southern Company's earnings and financial condition for the first quarter of 2018. It includes a press release and additional financial data, offering both GAAP and adjusted (non-GAAP) financial metrics.

Why is Southern Company presenting non-GAAP financial measures?

Southern Company presents non-GAAP measures to provide investors with additional information that management believes better reflects the performance of the company's ongoing business activities. These adjustments exclude items like the Kemper IGCC project charges, acquisition and integration costs, asset dispositions, and the impact of tax reform, which are considered significant but not indicative of recurring operational results.

What specific items are excluded in the non-GAAP EPS calculation?

The non-GAAP EPS calculation excludes several key items. For the first quarter of 2018, these include costs related to the Kemper IGCC project, integration costs for Southern Company Gas, earnings from the Wholesale Gas Services business, costs from pending dispositions of Elizabethtown Gas, Elkton Gas, and Pivotal Home Solutions, and net tax benefits from federal tax reform. For the prior year's comparable quarter, it excluded a write-down of Plant Scherer Unit 3 and earnings related to the extended Kemper IGCC construction schedule.

Where can I find a reconciliation of GAAP to non-GAAP figures?

The filing states that the attached exhibits (specifically Exhibits 99.01, 99.02, 99.03, and 99.04) include reconciliations of each non-GAAP financial measure to the most comparable financial measure prepared in accordance with GAAP. Investors should refer to these exhibits for detailed breakdowns.

SOUTHERN CO 8-K: Earnings & Results

Summary

Southern Company (SO) filed an 8-K on May 2, 2018, to furnish earnings information for the three months ended March 31, 2018. The filing primarily includes a press release and additional financial data, with a significant focus on providing both Generally Accepted Accounting Principles (GAAP) and non-GAAP earnings per share (EPS) figures. This approach allows investors to view the company's performance excluding certain significant, non-recurring, or strategically important items that management believes do not reflect the ongoing operational performance. Key adjustments to GAAP EPS include items related to the Kemper County IGCC project, integration costs for Southern Company Gas, dispositions of certain gas distribution businesses, and the impact of federal tax reform. The company asserts that these non-GAAP measures offer a more useful perspective for evaluating the performance of its core business activities. Investors should pay close attention to the reconciliations provided in the exhibits to understand the impact of these adjustments on reported earnings.

Key Highlights

1Southern Company issued an 8-K filing on May 2, 2018, reporting financial results for the quarter ended March 31, 2018.
2The filing includes a press release and supplementary financial information (Exhibits 99.01-99.07).
3The company provided both GAAP and non-GAAP earnings per share (EPS) figures.
4Non-GAAP EPS excludes significant items such as charges related to the Kemper IGCC project and Southern Company Gas integration costs.
5Adjustments also include impacts from pending dispositions of certain gas businesses and federal tax reform.
6Southern Company states that non-GAAP measures are used by management and are useful to investors for evaluating ongoing business performance.
7The filing details segment information for its various operating companies, including Alabama Power, Georgia Power, and Southern Company Gas.

SOUTHERN CO 8-K Report, Financial Results (May 2, 2018)

Summary

Key Highlights

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