Business Context and Reporting Period
This Form 8-K is a combined current report filed on August 2, 2017, 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 and six-month periods ended June 30, 2017.
Key Financial Metrics
The filing references attached exhibits (99.01 through 99.07) containing specific financial data, including GAAP and non-GAAP earnings, earnings per share (EPS), kilowatt-hour sales, and customer counts. The text of this Form 8-K does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes and Non-GAAP Adjustments
Management presents non-GAAP financial measures to exclude specific items impacting earnings for the periods ended June 30, 2017 and 2016. Material exclusions include:
- Charges for estimated losses related to Mississippi Power Company's Kemper County integrated coal gasification combined cycle (IGCC) project.
- A write-down of Gulf Power Company's ownership of Plant Scherer Unit 3 (six-month period only).
- Costs related to the acquisition and integration of Southern Company Gas.
- Earnings from the Wholesale Gas Services business of Southern Company Gas (2017 periods only).
- Earnings related to the equity return on the Kemper IGCC schedule extension from November 30, 2016, through its suspension in June 2017.
Guidance, Outlook, and Risks
The filing states that management uses non-GAAP measures to evaluate ongoing business activities and believes they provide useful information to investors. The text does not contain specific forward-looking guidance, updated outlook figures, or detailed risk factor disclosures beyond the mention of the Kemper IGCC project suspension and associated charges. The report explicitly states 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) and Exhibit 99.02 (Financial Highlights) for specific revenue, net income, and EPS figures.
- Examine Exhibit 99.03 and 99.04 to understand the dollar impact of the Kemper IGCC losses and Plant Scherer write-down on reported earnings.
- Verify the reconciliation of non-GAAP measures to GAAP measures in the attached exhibits.
- Check Exhibit 99.06 for details on kilowatt-hour sales and customer count changes.
- Confirm the status of the Kemper IGCC project suspension and its ongoing financial implications.