What types of information are excluded from Southern Company's non-GAAP financial measures?

The non-GAAP financial measures exclude various items such as charges and credits (net of salvage) related to plants under construction, associated legal expenses (net of insurance recoveries), tax impacts, accelerated depreciation at the Kay Wind facility, impairment losses from discontinued developments, acquisition and disposition impacts, disallowances, and costs associated with debt extinguishment.

Why does Southern Company provide non-GAAP financial measures?

Southern Company provides non-GAAP financial measures because it believes they offer investors additional information that is useful for evaluating the performance of its ongoing business activities. Management also uses these measures for performance evaluation.

Where can I find the detailed financial results and segment information?

The detailed financial results, including segment information for Alabama Power Company, Georgia Power Company, Mississippi Power Company, Southern Power Company, and Southern Company Gas, are available in Exhibit 99 attached to this 8-K filing.

SOUTHERN CO 8-K: Earnings & Results

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

The main purpose of this 8-K filing is to report Southern Company's financial results for the three-month and twelve-month periods ended December 31, 2024, as detailed in the accompanying press release (Exhibit 99).

Summary

Southern Company (SO) filed an 8-K on February 20, 2025, to report its financial results for the three-month and twelve-month periods ended December 31, 2024. The filing includes a press release (Exhibit 99) containing both GAAP and non-GAAP financial measures. The company emphasizes that the non-GAAP figures, which exclude various charges, credits, and other specific items, are provided to offer investors a clearer view of the performance of its ongoing business operations and are also used by management for evaluation purposes. Investors should note the specific items excluded from the non-GAAP earnings calculations, which include significant adjustments related to plants under construction, wind facility repowering, discontinued development projects, and prior-year impacts from acquisitions, disallowances, and debt extinguishment. The press release also contains segment information for Southern Company's key subsidiaries. While these non-GAAP measures offer a potentially useful perspective, they should not be considered a substitute for the standard GAAP financial reporting.

Key Highlights

1Southern Company (SO) has released its financial results for the fourth quarter and full year ended December 31, 2024, via an 8-K filing.
2The filing includes both Generally Accepted Accounting Principles (GAAP) and non-GAAP financial measures.
3Non-GAAP earnings exclude various items, including charges related to plants under construction, legal expenses, and tax impacts.
4Specific adjustments for the twelve-month period of 2024 include accelerated depreciation at Kay Wind facility and an impairment loss for a discontinued commercial facility development.
52023 non-GAAP adjustments encompass acquisition/disposition impacts, disallowances at Northern Illinois Gas, and debt extinguishment costs.
6Southern Company believes these non-GAAP measures provide useful insights into ongoing business performance.
7Exhibit 99 of the filing contains the detailed press release and segment information for major subsidiaries such as Alabama Power, Georgia Power, Mississippi Power, Southern Power, and Southern Company Gas.

SOUTHERN CO 8-K Report, Financial Results (Feb 20, 2025)

Summary

Key Highlights

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