Business Context and Reporting Period
This Form 8-K is a combined current report filed on July 31, 2019, by The Southern Company and its five subsidiaries: Alabama Power Company, Georgia Power Company, Mississippi Power Company, Southern Power Company, and Southern Company Gas. The filing serves to disseminate the press release and financial data regarding earnings for the three-month and six-month periods ended June 30, 2019.
Key Financial Metrics
The filing text itself does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These metrics are contained within the attached exhibits (Exhibits 99.01 through 99.07), which are referenced but not included in the provided text. The report confirms the presentation of both GAAP and non-GAAP earnings and earnings per share (EPS) for the periods ended June 30, 2019, and 2018.
Material Changes and Non-GAAP Adjustments
The filing details specific exclusions used to calculate non-GAAP financial measures to better reflect ongoing business activities. For the periods ended June 30, 2019 and 2018, the following items are excluded from non-GAAP EPS:
- Acquisition, disposition, and integration impacts.
- Charges related to plants under construction.
- Earnings from the Wholesale Gas Services business of Southern Company Gas.
Additionally, for the periods ended June 30, 2018, the following items are excluded:
- Settlement proceeds from Mississippi Power Company's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill.
- Additional net tax benefits resulting from the implementation of federal tax reform legislation (six-month period only).
Guidance, Outlook, and Risks
The filing text does not contain specific forward-looking guidance, management commentary on future outlook, or a detailed discussion of risks and contingencies beyond the standard legal disclaimers. The report explicitly states that the information, including exhibits, 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. Management utilizes the non-GAAP measures to evaluate ongoing business performance.
Investor Verification Checklist
- Verify the specific GAAP and non-GAAP EPS figures in Exhibit 99.01 (Press Release) and Exhibit 99.04 (EPS Earnings Analysis).
- Review Exhibit 99.02 (Financial Highlights) for consolidated revenue, net income, and cash flow data.
- Examine Exhibit 99.03 to understand the quantitative impact of the excluded items (e.g., Deepwater Horizon settlement, tax reform benefits) on prior year comparisons.
- Check Exhibit 99.06 for kilowatt-hour sales and customer count changes across the utility segments.
- Confirm the reconciliation of non-GAAP measures to GAAP measures as required by SEC regulations, found in the referenced exhibits.