Business Context and Reporting Period
This Form 8-K is a combined current report filed on May 3, 2017, 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 period ended March 31, 2017.
Key Financial Metrics
The filing references attached exhibits containing GAAP earnings, earnings per share (EPS), and segment-specific data. The text itself does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it details the methodology for presenting Non-GAAP financial measures by excluding specific charges and earnings items to evaluate ongoing business performance.
Material Changes and Unusual Items
The filing highlights several significant items excluded from Non-GAAP measures to clarify operational performance:
- Kemper IGCC: Charges for estimated probable losses related to Mississippi Power Company's construction of the integrated coal gasification combined cycle facility in Kemper County, Mississippi.
- Plant Scherer Unit 3: A write-down of Gulf Power Company's ownership interest.
- Southern Company Gas Acquisition: Costs related to the acquisition and integration of Southern Company Gas.
- Wholesale Gas Services: Earnings from the Wholesale Gas Services business of Southern Company Gas.
- Kemper IGCC Schedule Extension: Earnings related to the equity return from the schedule extension beyond November 30, 2016.
Guidance, Outlook, and Management Commentary
Management states that presenting earnings excluding the items listed above is useful for investors to evaluate the performance of ongoing business activities. The filing explicitly notes that these Non-GAAP measures are not a substitute for GAAP financial measures. No specific forward-looking guidance, risk factors, or contingencies are detailed in the text of this Form 8-K; such information is contained within the referenced press release and exhibits.
Investor Verification Checklist
- Review Exhibit 99.01 (Press Release) for specific GAAP revenue, net income, and EPS figures.
- Examine Exhibit 99.03 and 99.04 for the quantitative impact of the Kemper IGCC losses and Plant Scherer write-down on earnings.
- Verify the reconciliation of Non-GAAP measures to GAAP measures in the attached exhibits.
- Check Exhibit 99.06 for kilowatt-hour sales and customer count changes.
- Confirm the specific dollar amounts of the acquisition and integration costs for Southern Company Gas.