Business Context and Reporting Period
This Form 8-K is a combined current report filed on May 2, 2018, by The Southern Company and its six 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, 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 figures.
- Reporting Basis: Results are presented under Generally Accepted Accounting Principles (GAAP) and Non-GAAP measures.
- Non-GAAP Adjustments: Management excludes specific items to evaluate ongoing business performance, including charges related to the Kemper IGCC project, costs for the Southern Company Gas acquisition, and earnings from Wholesale Gas Services.
Material Changes and Unusual Items
The filing details several significant items excluded from Non-GAAP earnings to highlight operational performance:
- Kemper IGCC Project: Charges related to Mississippi Power Company's integrated coal gasification combined cycle project in Kemper County, Mississippi.
- Acquisition Costs: Costs associated with the acquisition and integration of Southern Company Gas.
- Dispositions: Costs relating to the pending dispositions of Elizabethtown Gas, Elkton Gas, and Pivotal Home Solutions.
- Tax Reform: Additional net tax benefits resulting from the implementation of federal tax reform legislation.
- Prior Period Items (2017): A charge for the write-down of Gulf Power Company's ownership of Plant Scherer Unit 3 and earnings associated with extending the Kemper IGCC construction schedule.
Guidance, Outlook, and Risks
The filing text does not provide specific forward-looking guidance, outlook figures, or a detailed risk assessment. It notes that the information is furnished to help investors evaluate ongoing business activities but explicitly states it is not a substitute for GAAP measures. The document includes standard disclaimers that the information is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934.
Investor Verification Checklist
- Review Exhibit 99.01 (Press Release) for specific GAAP and Non-GAAP earnings per share figures.
- Examine Exhibit 99.02 (Financial Highlights) for revenue, profit, and cash flow data.
- Verify the reconciliation of Non-GAAP measures to GAAP in Exhibit 99.03 and Exhibit 99.04 to understand the magnitude of excluded items like the Kemper IGCC charges.
- Check 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.