Business Context and Reporting Period
This Form 8-K is a combined current report filed on October 30, 2019, by The Southern Company and its subsidiaries: Alabama Power Company, Georgia Power Company, Mississippi Power Company, Southern Power Company, and Southern Company Gas. The filing serves to disseminate earnings results for the three-month and nine-month periods ended September 30, 2019.
Key Financial Metrics
The filing text references the issuance of a press release and exhibits containing detailed financial data, including GAAP and non-GAAP earnings, earnings per share (EPS), kilowatt-hour sales, and customer counts. However, the specific numerical values for revenue, profit, cash flow, margins, debt, and liquidity are not contained within the provided text; they are located in the referenced exhibits (99.01 through 99.07).
Material Changes and Non-GAAP Adjustments
The registrants present non-GAAP financial measures to exclude specific items for the evaluation of ongoing business activities. Material adjustments noted in the filing include:
- Exclusion of acquisition, disposition, and integration impacts.
- Exclusion of charges related to plants under construction.
- Exclusion of earnings from the Wholesale Gas Services business of Southern Company Gas.
- For the three-month and nine-month periods ended September 30, 2019: Exclusion of an impairment charge associated with Southern Company Gas' natural gas storage facility in Louisiana.
- For the nine-month period ended September 30, 2018: Exclusion of settlement proceeds from Mississippi Power Company's claim regarding the 2010 Deepwater Horizon oil spill and additional net tax benefits from federal tax reform.
Guidance, Outlook, and Risks
The filing does not contain specific forward-looking guidance, management commentary on future outlook, or a detailed discussion of risks and contingencies within the provided text. The document explicitly states that the information is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into other filings except as expressly set forth. Management utilizes the non-GAAP measures to evaluate ongoing performance, but no specific risk factors are enumerated in this summary text.
Investor Verification Checklist
- Verify the specific GAAP and non-GAAP earnings and EPS figures in Exhibit 99.01 (Press Release) and Exhibit 99.02 (Financial Highlights).
- Review the reconciliation of non-GAAP measures to GAAP measures to understand the impact of the Louisiana storage facility impairment and other excluded items.
- Examine Exhibit 99.06 for detailed kilowatt-hour sales and customer count changes.
- Confirm the impact of the Deepwater Horizon settlement proceeds and tax reform benefits on the prior year's comparative figures.