Business Context and Reporting Period
This Form 8-K is a combined current report filed on August 8, 2018, by The Southern Company and six of its subsidiaries: Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company, Southern Power Company, and Southern Company Gas. The filing reports earnings results for the three-month and six-month periods ended June 30, 2018.
Key Financial Metrics
The filing text references the issuance of a press release and exhibits containing specific financial data but does not explicitly state the numerical values for revenue, profit, cash flow, margins, debt, or liquidity within the body of this document. Investors must refer to the attached exhibits (99.01 through 99.07) for specific GAAP and non-GAAP figures.
Material Changes and Non-GAAP Adjustments
The filing details several significant items excluded from non-GAAP earnings measures to evaluate ongoing business performance. These adjustments include:
- Acquisition and Integration: Costs related to the acquisition and integration of Southern Company Gas and earnings from its Wholesale Gas Services business.
- Construction Charges: A charge related to Georgia Power Company's construction of Plant Vogtle Units 3 and 4.
- Disposition Costs: Costs relating to the dispositions of Elizabethtown Gas, Elkton Gas, Pivotal Home Solutions, and Florida City Gas, as well as pending dispositions of ownership interests in Plants Oleander and Stanton.
- Settlement Proceeds: Settlement proceeds from Mississippi Power Company's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill.
- Kemper IGCC Project: Charges related to Mississippi Power Company's integrated coal gasification combined cycle project in Kemper County, Mississippi, and equity return adjustments from extending the construction schedule.
- Asset Write-downs: A charge for the write-down of Gulf Power Company's ownership of Plant Scherer Unit 3 (2017 period).
- Tax Reform: Additional net tax benefits resulting from implementing federal tax reform legislation.
Guidance, Outlook, and Risks
The filing does not contain explicit forward-looking guidance or updated outlook statements within the text provided. Management commentary indicates that non-GAAP measures are used internally to evaluate ongoing business activities. The filing notes 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 unless expressly stated.
Investor Verification Checklist
- Verify specific GAAP and non-GAAP earnings per share (EPS) figures in Exhibit 99.01 (Press Release) and Exhibit 99.04 (EPS Earnings Analysis).
- Review the reconciliation of non-GAAP measures to GAAP measures to understand the magnitude of excluded items like the Kemper IGCC charges and Plant Vogtle costs.
- Examine Exhibit 99.06 for kilowatt-hour sales and customer count changes.
- Confirm the impact of federal tax reform legislation on net tax benefits as detailed in the exhibits.
- Check the status of pending dispositions for Gulf Power Company and Southern Power Company's ownership interests in Plants Oleander and Stanton.