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

The main purpose of this 8-K filing is to formally report Southern Company's financial results for the three and six-month periods ending June 30, 2018. It includes a press release and detailed financial exhibits, as well as information on how these results are presented using both GAAP and non-GAAP measures.

Why is Southern Company presenting so many non-GAAP financial measures?

Southern Company uses these non-GAAP measures to provide investors with additional insights into the performance of its ongoing business activities. By excluding items like acquisition/integration costs, significant project charges (e.g., Plant Vogtle, Kemper IGCC), and disposition-related costs, the company aims to present a clearer picture of its core operational results, separate from the impact of specific, often significant, events.

What are some of the key items being excluded from the non-GAAP earnings calculations?

Key excluded items include costs associated with the acquisition and integration of Southern Company Gas, charges related to the construction of Plant Vogtle Units 3 and 4, costs from dispositions of various gas utilities and power assets, charges related to the Kemper IGCC project, and adjustments for federal tax reform. The filing provides detailed reconciliations for each of these exclusions.

Are the non-GAAP measures a substitute for GAAP results?

No, Southern Company explicitly states that the presentation of non-GAAP financial measures is not meant to be considered a substitute for financial measures prepared in accordance with GAAP. Investors should always refer to the GAAP figures and carefully review the provided reconciliations to understand the full financial picture.

SOUTHERN CO 8-K: Earnings & Results

Summary

Southern Company (SO) filed an 8-K on August 8, 2018, to report its financial results for the three and six-month periods ending June 30, 2018. The filing primarily consists of a press release and supplemental financial information furnished as exhibits. Investors should note that the company is presenting both GAAP and a significant number of non-GAAP financial measures. These non-GAAP measures exclude various items, including costs and charges related to acquisitions, dispositions, major construction projects like Plant Vogtle and Kemper IGCC, business segment performance, and the impact of tax reform. The use of these adjusted earnings figures aims to provide investors with a clearer view of ongoing business operations by removing the impact of specific, often significant, one-time or non-recurring events. While these non-GAAP metrics can be helpful for understanding underlying trends, investors are strongly advised to review the provided reconciliations to GAAP and consider the full context of the excluded items when evaluating the company's financial health and performance.

Key Highlights

1Southern Company issued its Q2 2018 earnings report on August 8, 2018, via an 8-K filing.
2The filing includes both GAAP and numerous non-GAAP financial measures to present earnings and EPS.
3Non-GAAP adjustments exclude significant items such as acquisition/integration costs (Southern Company Gas), Plant Vogtle construction charges, and dispositions of various gas utilities and power assets.
4Charges related to the Kemper IGCC project and a write-down for Plant Scherer Unit 3 are also excluded in certain periods.
5The company also reports adjustments for net tax benefits from federal tax reform and equity return adjustments for Kemper IGCC construction schedule extensions.
6Exhibits provide detailed segment information for operating utilities and Southern Company Gas, along with customer and kilowatt-hour sales data.
7Southern Company management uses these non-GAAP measures to assess ongoing business performance.

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

Summary

Key Highlights

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