ATLANTA, July 27, 2016 /PRNewswire/ -- Southern
Company today reported second quarter 2016 earnings of $638 million, or 68
cents per share, compared with earnings of $629 million, or 69
cents per share, in the second quarter of 2015. For the six
months ended June 30, 2016, earnings
were $1.12 billion, or $1.21 per share, compared with $1.14 billion, or $1.25 per share, for the same period in 2015.
Excluding the items described in the "Consolidated Earnings –
Excluding Items" table below, Southern Company earned $692 million, or 74
cents per share, during the second quarter of 2016, compared
with $647 million, or 71 cents per share, during the second quarter of
2015. For the six months ended June 30,
2016, excluding these items, Southern Company earned
$1.22 billion, or $1.32 per share, compared with earnings of
$1.16 billion, or $1.28 per share, for the same period in 2015.
|
Three Months Ended
June
|
|
Year-to-Date
June
|
Consolidated
Earnings - Excluding Items
|
2016
|
2015
|
|
2016
|
2015
|
Net Income - As
Reported
|
$638
|
$629
|
|
$1,123
|
$1,138
|
Estimated Loss on
Kemper IGCC
|
38
|
23
|
|
91
|
32
|
Tax Impact
|
(15)
|
(9)
|
|
(35)
|
(12)
|
Acquisition
Costs
|
44
|
0
|
|
65
|
0
|
Tax Impact
|
(13)
|
0
|
|
(20)
|
0
|
Additional MCAR
Settlement Costs
|
0
|
7
|
|
0
|
7
|
Tax Impact
|
0
|
(3)
|
|
0
|
(3)
|
Net Income -
Excluding Items
|
$692
|
$647
|
|
$1,224
|
$1,162
|
Basic Earnings Per
Share - Excluding Items
|
$0.74
|
$0.71
|
|
$1.32
|
$1.28
|
|
NOTE: Except for
earnings per share, the figures in the table above are expressed in
millions of dollars.
|
Earnings for the three and six months ended June 30, 2016, were also impacted by
debt-financing costs related to the acquisition of Southern Company
Gas (formerly known as AGL Resources Inc). These costs were not
included in the 2016 earnings guidance provided previously.
Excluding both these costs and the items described above, Southern
Company earned $716 million, or
77 cents per share, during the second
quarter of 2016, compared with $647
million, or 71 cents per
share, during the second quarter of 2015. For the six months ended
June 30, 2016, excluding all of these
items, Southern Company earned $1.25
billion, or $1.35 per share,
compared with earnings of $1.16
billion, or $1.28 per share,
for the same period in 2015.
|
Three Months Ended
June
|
|
Year-to-Date
June
|
Consolidated
Earnings - Adjusted for Guidance Comparability
|
2016
|
2015
|
|
2016
|
2015
|
Net Income -
Excluding Items
|
$692
|
$647
|
|
$1,224
|
$1,162
|
Acquisition Debt
Financing Costs
|
39
|
0
|
|
39
|
0
|
Tax Impact
|
(15)
|
0
|
|
(15)
|
0
|
Net Income -
Adjusted for Guidance Comparability
|
$716
|
$647
|
|
$1,248
|
$1,162
|
Basic Earnings Per
Share - Adjusted for Guidance Comparability
|
$0.77
|
$0.71
|
|
$1.35
|
$1.28
|
|
NOTE: Except for
earnings per share, the figures in the table above are expressed in
millions of dollars.
|
Earnings drivers for the second quarter of 2016 were positively
influenced by retail revenue effects at Southern Company's
traditional operating companies, stronger-than-expected performance
of its Southern Power subsidiary and lower non-fuel operations and
maintenance expenses across the regulated operating companies.
Earnings were negatively influenced by increased interest expenses
and higher depreciation and amortization expenses.
"We are very pleased with how our electric businesses are
performing this year, including the strong performance of our
wholesale subsidiary, Southern Power," said Southern Company
Chairman, President and CEO Thomas A.
Fanning. "We look forward to the years ahead, when both
Southern Company Gas and – subject to federal approval – our
announced investment in Southern Natural Gas begin to contribute to
our results. We are truly building the future of energy for
the benefit of the customers and communities we are privileged to
serve. That longstanding customer focus has always been the
foundation for delivering on our long-term financial
objectives."
Second quarter 2016 operating revenues were $4.45 billion, compared with $4.34 billion for the second quarter of 2015, an
increase of 2.7 percent. For the six months ended June 30, 2016, operating revenues were
$8.43 billion, compared with
$8.52 billion for the same period in
2015, a decrease of 1.0 percent. This decrease was primarily
due to lower fuel costs.
Kilowatt-hour sales to retail customers in Southern Company's
four-state service area decreased 1.6 percent in the second quarter
of 2016, compared with the second quarter of 2015. Residential
energy sales decreased 0.8 percent, commercial energy sales
decreased 2.0 percent and industrial energy sales decreased 1.9
percent. For the first six months of 2016, retail sales decreased
2.3 percent, compared with the same period in 2015. Residential
energy sales decreased 4.1 percent, commercial energy sales
decreased 1.4 percent and industrial energy sales decreased 1.4
percent.
Weather-adjusted kilowatt-hour sales to retail customers in
Southern Company's four-state service area decreased 1.4 percent in
the second quarter of 2016, compared with the second quarter of
2015. Weather-adjusted residential energy sales decreased 0.2
percent and weather-adjusted commercial energy sales decreased 1.9
percent. For the first six months of 2016, weather-adjusted retail
sales decreased 0.5 percent, compared with the same period in 2015.
Weather-adjusted residential energy sales increased 0.6 percent and
weather-adjusted commercial energy sales decreased 0.6 percent.
Total energy sales to Southern Company's customers, including
wholesale sales, decreased 0.6 percent in the second quarter of
2016, compared with the second quarter of 2015. For the first six
months of 2016, total energy sales decreased 1.1 percent, compared
with the same period in 2015.
Southern Company's second quarter earnings slides with
supplemental financial information including its earnings estimate
for the third quarter of 2016 are available at
http://investor.southerncompany.com.
Southern Company's financial analyst call will begin at
1 p.m. Eastern time today, during
which Fanning and Chief Financial Officer Art P. Beattie will discuss earnings and provide
a general business update. Investors, media and the public may
listen to a live webcast of the call and view associated slides at
http://investor.southerncompany.com/webcasts. A replay of the
webcast will be available on the site for 12 months.
About Southern Company
Southern Company (NYSE: SO) is America's premier energy company,
with 44,000 megawatts of generating capacity and 1,500 billion
cubic feet of combined natural gas consumption and throughput
volume serving 9 million electric and gas utility customers through
its subsidiaries. The company provides clean, safe, reliable and
affordable energy through electric utilities in four states,
natural gas distribution utilities in seven states, a competitive
generation company serving wholesale customers across America and a
nationally recognized provider of customized energy solutions, as
well as fiber optics and wireless communications. Southern Company
brands are known for excellent customer service, high reliability
and affordable prices that are below the national average. Through
an industry-leading commitment to innovation, Southern Company and
its subsidiaries are inventing America's energy future by
developing the full portfolio of energy resources, including
carbon-free nuclear, 21st century coal, natural gas,
renewables and energy efficiency, and creating new products and
services for the benefit of customers. Southern Company has
been named by the U.S. Department of Defense and G.I. Jobs magazine as a top military employer,
recognized among the Top 50 Companies for Diversity by
DiversityInc, listed by Black Enterprise magazine as one of the 40
Best Companies for Diversity and designated a Top Employer for
Hispanics by Hispanic Network. The company has earned a National
Award of Nuclear Science and History from the National Atomic
Museum Foundation for its leadership and commitment to nuclear
development and is continually ranked among the top utilities in
Fortune's annual World's Most Admired Electric and Gas
Utility rankings. Visit our website at
www.southerncompany.com.
Cautionary Notes Regarding Forward-Looking
Statements:
Certain information contained in this release is
forward-looking information based on current expectations and plans
that involve risks and uncertainties. Forward-looking information
includes, among other things, statements concerning the expected
completion of the Southern Natural Gas investment and the future
results of Southern Company Gas and Southern Natural Gas. Southern
Company cautions that there are certain factors that can cause
actual results to differ materially from the forward-looking
information that has been provided. The reader is cautioned not to
put undue reliance on this forward-looking information, which is
not a guarantee of future performance and is subject to a number of
uncertainties and other factors, many of which are outside
the control of Southern Company; accordingly, there can be no
assurance that such suggested results will be realized. The
following factors, in addition to those discussed in Southern
Company's Annual Report on Form 10-K for the year ended
December 31, 2015, and subsequent
securities filings, could cause actual results to differ materially
from management expectations as suggested by such forward-looking
information: the impact of recent and future federal and
state regulatory changes, including legislative and regulatory
initiatives regarding deregulation and restructuring of the
electric utility industry, environmental laws regulating emissions,
discharges, and disposal to air, water, and land, and also changes
in tax and other laws and regulations to which Southern Company and
its subsidiaries are subject, as well as changes in application of
existing laws and regulations; current and future litigation,
regulatory investigations, proceedings, or inquiries, including,
without limitation, Internal Revenue Service and state tax audits;
the effects, extent, and timing of the entry of additional
competition in the markets in which Southern Company's subsidiaries
operate; variations in demand for electricity and natural gas,
including those relating to weather, the general economy and
recovery from the last recession, population and business growth
(and declines), the effects of energy conservation and efficiency
measures, including from the development and deployment of
alternative energy sources such as self-generation and distributed
generation technologies, and any potential economic impacts
resulting from federal fiscal decisions; available sources and
costs of natural gas and other fuels; effects of inflation; the
ability to control costs and avoid cost overruns during the
development and construction of facilities, which include the
development and construction of generating facilities with designs
that have not been finalized or previously constructed, including
changes in labor costs and productivity, adverse weather
conditions, shortages and inconsistent quality of equipment,
materials, and labor, contractor or supplier delay, non-performance
under construction, operating, or other agreements, operational
readiness, including specialized operator training and required
site safety programs, unforeseen engineering or design problems,
start-up activities (including major equipment failure and system
integration), and/or operational performance (including additional
costs to satisfy any operational parameters ultimately adopted by
any Public Service Commission (PSC)); the ability to construct
facilities in accordance with the requirements of permits and
licenses, to satisfy any environmental performance standards and
the requirements of tax credits and other incentives, and to
integrate facilities into the Southern Company system upon
completion of construction; investment performance of Southern
Company's employee and retiree benefit plans and the Southern
Company system's nuclear decommissioning trust funds; advances in
technology; state and federal rate regulations and the impact of
pending and future rate cases and negotiations, including rate
actions relating to fuel and other cost recovery mechanisms; legal
proceedings and regulatory approvals and actions related to Plant
Vogtle Units 3 and 4, including Georgia PSC approvals and Nuclear
Regulatory Commission actions; actions related to cost recovery for
the integrated coal gasification combined cycle facility under
construction in Kemper County
Mississippi (the Kemper IGCC), including the ultimate impact
of the 2015 decision of the Mississippi Supreme Court, the
Mississippi PSC's December 2015 rate
order, and related legal or regulatory proceedings, Mississippi PSC
review of the prudence of Kemper IGCC costs and approval of further
permanent rate recovery plans, actions relating to proposed
securitization, satisfaction of requirements to utilize grants, and
the ultimate impact of the termination of the proposed sale of an
interest in the Kemper IGCC to South Mississippi Electric Power
Association; the ability to successfully operate the electric
utilities' generating, transmission, and distribution facilities
and Southern Company Gas' natural gas distribution and storage
facilities and the successful performance of necessary corporate
functions; the inherent risks involved in operating and
constructing nuclear generating facilities, including
environmental, health, regulatory, natural disaster, terrorism, and
financial risks; the inherent risks involved in transporting and
storing natural gas; the performance of projects undertaken by the
non-utility businesses and the success of efforts to invest in and
develop new opportunities; internal restructuring or other
restructuring options that may be pursued; potential business
strategies, including acquisitions or dispositions of assets or
businesses, which cannot be assured to be completed or beneficial
to Southern Company or its subsidiaries; the possibility that the
anticipated benefits from the acquisition of Southern Company Gas
cannot be fully realized or may take longer to realize than
expected, the possibility that costs related to the integration of
Southern Company and Southern Company Gas will be greater than
expected, the ability to retain and hire key personnel and maintain
relationships with customers, suppliers, or other business
partners, and the diversion of management time on
integration-related issues; the ability of counterparties of
Southern Company and its subsidiaries to make payments as and when
due and to perform as required; the ability to obtain new short-
and long-term contracts with wholesale customers; the direct or
indirect effect on the Southern Company system's business or
Southern Company Gas' business resulting from cyber intrusion or
terrorist incidents and the threat of terrorist incidents; interest
rate fluctuations and financial market conditions and the results
of financing efforts; changes in Southern Company's and any of its
subsidiaries' credit ratings, including impacts on interest rates,
access to capital markets, and collateral requirements; the impacts
of any sovereign financial issues, including impacts on interest
rates, access to capital markets, impacts on currency exchange
rates, counterparty performance, and the economy in general, as
well as potential impacts on the benefits of the Department of
Energy loan guarantees; the ability of Southern Company's
subsidiaries to obtain additional generating capacity (or sell
excess generating capacity) at competitive prices; catastrophic
events such as fires, earthquakes, explosions, floods, hurricanes
and other storms, droughts, pandemic health events such as
influenzas, or other similar occurrences; the direct or indirect
effects on the Southern Company system's business or Southern
Company Gas' business resulting from incidents affecting the U.S.
electric grid, natural gas pipeline infrastructure, or operation of
generating or storage resources; and the effect of accounting
pronouncements issued periodically by standard-setting bodies.
Southern Company expressly disclaims any obligation to update any
forward-looking information.
Southern
Company
|
Financial
Highlights
|
(In Millions of
Dollars Except Earnings Per Share)
|
|
|
|
|
|
|
|
Three Months
Ended
June
|
|
Year-to-Date June
|
Consolidated
Earnings–As Reported (See Notes)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Traditional
Electric Operating Companies
|
|
$
|
621
|
|
|
$
|
561
|
|
|
$
|
1,085
|
|
|
$
|
1,038
|
|
Southern
Power
|
|
89
|
|
|
46
|
|
|
139
|
|
|
79
|
|
Total
|
|
710
|
|
|
607
|
|
|
1,224
|
|
|
1,117
|
|
Parent Company
and Other
|
|
(72)
|
|
|
22
|
|
|
(101)
|
|
|
21
|
|
Net
Income–As Reported
|
|
$
|
638
|
|
|
$
|
629
|
|
|
$
|
1,123
|
|
|
$
|
1,138
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share
|
|
$
|
0.68
|
|
|
$
|
0.69
|
|
|
$
|
1.21
|
|
|
$
|
1.25
|
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding (in millions)
|
|
934
|
|
|
909
|
|
|
925
|
|
|
910
|
|
End of Period
Shares Outstanding (in millions)
|
|
|
|
|
|
942
|
|
|
908
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
|
|
Year-to-Date
June
|
Consolidated
Earnings–Excluding Items (See Notes)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Net Income–As
Reported
|
|
$
|
638
|
|
|
$
|
629
|
|
|
$
|
1,123
|
|
|
$
|
1,138
|
|
Estimated Loss on
Kemper IGCC1
|
|
38
|
|
|
23
|
|
|
91
|
|
|
32
|
|
Tax Impact
|
|
(15)
|
|
|
(9)
|
|
|
(35)
|
|
|
(12)
|
|
Acquisition
Costs2
|
|
44
|
|
|
—
|
|
|
65
|
|
|
—
|
|
Tax Impact
|
|
(13)
|
|
|
—
|
|
|
(20)
|
|
|
—
|
|
Additional MCAR
settlement costs3
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
Tax Impact
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
Net
Income–Excluding Items
|
|
$
|
692
|
|
|
$
|
647
|
|
|
$
|
1,224
|
|
|
$
|
1,162
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share–Excluding Items
|
|
$
|
0.74
|
|
|
$
|
0.71
|
|
|
$
|
1.32
|
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
- For the three and
six months ended June 30, 2016 and 2015, dilution does not change
basic earnings per share by more than 1 cent and is not
material.
|
|
- All figures in this
earnings release are preliminary and remain subject to the
completion of normal quarter-end accounting procedures and
adjustments, which could result in changes to these preliminary
results. In addition, certain classifications and rounding may be
different from final results published in the Form 10-Q.
|
|
(1) The estimated
probable losses relating to Mississippi Power Company's
construction of the integrated coal gasification combined cycle
facility in Kemper County, Mississippi (Kemper IGCC) significantly
impacted the presentation of earnings and earnings per share for
the three and six months ended June 30, 2016 and 2015. Similar
charges may occur with uncertain frequency.
|
|
(2) Earnings for the
three and six months ended June 30, 2016 include costs related to
the acquisitions of Southern Company Gas (formerly known as AGL
Resources Inc.) and PowerSecure International, Inc. Further costs
are expected to continue to occur in connection with the related
integrations.
|
|
(3) Earnings for the
three and six months ended June 30, 2015 include additional costs
related to the discontinued operations of Mirant Corporation and
the March 2009 litigation settlement with MC Asset Recovery, LLC.
Further charges are not expected to occur.
|
Southern
Company
|
Financial
Highlights
|
(In Millions of
Dollars Except Earnings Per Share)
|
|
|
|
|
|
|
|
Three Months
Ended
June
|
|
Year-to-Date
June
|
Consolidated
Earnings–Adjusted for Guidance Comparability (See
Notes)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Net
Income–Excluding Items
|
|
$
|
692
|
|
|
$
|
647
|
|
|
$
|
1,224
|
|
|
$
|
1,162
|
|
Acquisition Debt
Financing Costs1
|
|
39
|
|
|
—
|
|
|
39
|
|
|
—
|
|
Tax Impact
|
|
(15)
|
|
|
—
|
|
|
(15)
|
|
|
—
|
|
Net
Income–Adjusted for Guidance Comparability
|
|
$
|
716
|
|
|
$
|
647
|
|
|
$
|
1,248
|
|
|
$
|
1,162
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share–Adjusted for Guidance Comparability
|
|
$
|
0.77
|
|
|
$
|
0.71
|
|
|
$
|
1.35
|
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
- All figures in this
earnings release are preliminary and remain subject to the
completion of normal quarter-end accounting procedures and
adjustments, which could result in changes to these preliminary
results. In addition, certain classifications and rounding may be
different from final results published in the Form 10-Q.
|
|
|
|
|
|
|
|
|
|
(1) Earnings for the
three and six months ended June 30, 2016 include debt financing
costs related to the acquisition of Southern Company Gas (formerly
known as AGL Resources Inc.). For comparison purposes, these costs
have been removed from the actual results to be consistent with the
2016 earnings guidance as presented in the first quarter of 2016,
which excluded such costs.
|
Southern
Company
|
Significant
Factors Impacting EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
|
|
Year-to-Date
June
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
Consolidated
Earnings Per Share–
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported (See
Notes)
|
|
$
|
0.68
|
|
|
$
|
0.69
|
|
|
$
|
(0.01)
|
|
|
$
|
1.21
|
|
|
$
|
1.25
|
|
|
$
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant
Factors:
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional
Electric Operating Companies
|
|
|
|
|
|
$
|
0.06
|
|
|
|
|
|
|
$
|
0.05
|
|
Southern
Power
|
|
|
|
|
|
0.05
|
|
|
|
|
|
|
0.06
|
|
Parent Company and
Other
|
|
|
|
|
|
(0.10)
|
|
|
|
|
|
|
(0.13)
|
|
Increase in
Shares
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
|
(0.02)
|
|
Total–As
Reported
|
|
|
|
|
|
$
|
(0.01)
|
|
|
|
|
|
|
$
|
(0.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
|
|
Year-to-Date
June
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
Consolidated
Earnings Per Share–
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Items
(See Notes)
|
|
$
|
0.74
|
|
|
$
|
0.71
|
|
|
$
|
0.03
|
|
|
$
|
1.32
|
|
|
$
|
1.28
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total–As
Reported
|
|
|
|
|
|
$
|
(0.01)
|
|
|
|
|
|
|
$
|
(0.04)
|
|
Estimated Loss on
Kemper IGCC1
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
0.04
|
|
Acquisition
Costs2
|
|
|
|
|
|
0.03
|
|
|
|
|
|
|
0.05
|
|
Additional MCAR
settlement costs3
|
|
|
|
|
|
—
|
|
|
|
|
|
|
(0.01)
|
|
Total–Excluding Items
|
|
|
|
|
|
$
|
0.03
|
|
|
|
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
- For the three and
six months ended June 30, 2016 and 2015, dilution does not change
basic earnings per share by more than 1 cent and is not
material.
|
|
- All figures in this
earnings release are preliminary and remain subject to the
completion of normal quarter-end accounting procedures and
adjustments, which could result in changes to these preliminary
results. In addition, certain classifications and rounding may be
different from final results published in the Form 10-Q.
|
|
(1) The estimated
probable losses relating to Mississippi Power Company's
construction of the integrated coal gasification combined cycle
facility in Kemper County, Mississippi (Kemper IGCC) significantly
impacted the presentation of earnings and earnings per share for
the three and six months ended June 30, 2016 and 2015. Similar
charges may occur with uncertain frequency.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Earnings for the
three and six months ended June 30, 2016 include costs related to
the acquisitions of Southern Company Gas (formerly known as AGL
Resources Inc.) and PowerSecure International, Inc. Further costs
are expected to continue to occur in connection with the related
integrations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Earnings for the
three and six months ended June 30, 2015 include additional costs
related to the discontinued operations of Mirant Corporation and
the March 2009 litigation settlement with MC Asset Recovery, LLC.
Further charges are not expected to occur. These costs were the
same for the three and six months ended June 30, 2015; however,
these costs on a per share basis differ between the periods due to
the effects of rounding.
|
|
Southern
Company
|
|
|
EPS Earnings
Analysis
|
|
|
Three Months Ended
June 2016 vs. June 2015
|
|
|
|
|
Cents
|
Description
|
|
|
|
|
(2)¢
|
Retail
Sales
|
|
|
|
|
13
|
Retail Revenue
Impacts
|
|
|
|
|
—
|
Weather
|
|
|
|
|
(1)
|
Wholesale
Operations
|
|
|
|
|
4
|
Non-Fuel
O&M
|
|
|
|
|
(3)
|
Depreciation and
Amortization
|
|
|
|
|
(1)
|
Taxes Other Than
Income Taxes
|
|
|
|
|
1
|
Other Income and
Deductions
|
|
|
|
|
(4)
|
Interest
Expense
|
|
|
|
|
7¢
|
Total Traditional
Electric Operating Companies
|
|
|
|
|
5¢
|
Southern
Power
|
|
|
|
|
(3)
|
Acquisition Debt
Financing Costs
|
|
|
|
|
(4)
|
Other Parent and
Non-Utility Subsidiaries
|
|
|
|
|
(7)¢
|
Parent and
Other
|
|
|
|
|
(2)¢
|
Increase in
Shares
|
|
|
|
|
3¢
|
Total Change in
QTD EPS (Excluding Items)
|
|
|
|
|
(1)
|
Estimated Loss on
Kemper IGCC1
|
|
|
|
|
(3)
|
Acquisition
Costs2
|
|
|
|
|
(1)¢
|
Total Change in
QTD EPS (As Reported)
|
|
|
|
|
Notes
|
|
- All figures in this
earnings release are preliminary and remain subject to the
completion of normal quarter-end accounting procedures and
adjustments, which could result in changes to these preliminary
results. In addition, certain classifications and rounding may be
different from final results published in the Form 10-Q.
|
|
|
|
(1) The estimated
probable losses relating to Mississippi Power Company's
construction of the integrated coal gasification combined cycle
facility in Kemper County, Mississippi (Kemper IGCC) significantly
impacted the presentation of earnings and earnings per share for
the three months ended June 30, 2016 and 2015. Similar charges may
occur with uncertain frequency.
|
|
|
|
(2) Earnings for the
three months ended June 30, 2016 include costs related to the
acquisitions of Southern Company Gas (formerly known as AGL
Resources Inc.) and PowerSecure International, Inc. Further costs
are expected to continue to occur in connection with the related
integrations.
|
|
Southern
Company
|
Consolidated
Earnings
|
As
Reported
|
(In Millions of
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June
|
|
Year-to-Date
June
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
Income
Account-
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Revenues-
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
$
|
998
|
|
|
$
|
1,130
|
|
|
$
|
(132)
|
|
|
$
|
1,873
|
|
|
$
|
2,218
|
|
|
$
|
(345)
|
|
Non-Fuel
|
|
2,750
|
|
|
2,584
|
|
|
166
|
|
|
5,251
|
|
|
5,038
|
|
|
213
|
|
Wholesale
Revenues
|
|
446
|
|
|
448
|
|
|
(2)
|
|
|
842
|
|
|
915
|
|
|
(73)
|
|
Other Electric
Revenues
|
|
166
|
|
|
162
|
|
|
4
|
|
|
348
|
|
|
325
|
|
|
23
|
|
Other
Revenues
|
|
93
|
|
|
13
|
|
|
80
|
|
|
117
|
|
|
24
|
|
|
93
|
|
Total
Revenues
|
|
4,453
|
|
|
4,337
|
|
|
116
|
|
|
8,431
|
|
|
8,520
|
|
|
(89)
|
|
Fuel and Purchased
Power
|
|
1,212
|
|
|
1,371
|
|
|
(159)
|
|
|
2,288
|
|
|
2,727
|
|
|
(439)
|
|
Cost of
Sales
|
|
54
|
|
|
—
|
|
|
54
|
|
|
62
|
|
|
—
|
|
|
62
|
|
Non-fuel O &
M
|
|
1,099
|
|
|
1,100
|
|
|
(1)
|
|
|
2,205
|
|
|
2,222
|
|
|
(17)
|
|
Depreciation and
Amortization
|
|
569
|
|
|
500
|
|
|
69
|
|
|
1,110
|
|
|
987
|
|
|
123
|
|
Taxes Other Than
Income Taxes
|
|
255
|
|
|
245
|
|
|
10
|
|
|
511
|
|
|
497
|
|
|
14
|
|
Estimated Loss on
Kemper IGCC
|
|
38
|
|
|
23
|
|
|
15
|
|
|
91
|
|
|
32
|
|
|
59
|
|
Total Operating
Expenses
|
|
3,227
|
|
|
3,239
|
|
|
(12)
|
|
|
6,267
|
|
|
6,465
|
|
|
(198)
|
|
Operating
Income
|
|
1,226
|
|
|
1,098
|
|
|
128
|
|
|
2,164
|
|
|
2,055
|
|
|
109
|
|
Allowance for Equity
Funds Used During Construction
|
|
45
|
|
|
39
|
|
|
6
|
|
|
98
|
|
|
102
|
|
|
(4)
|
|
Interest Expense, Net
of Amounts Capitalized
|
|
293
|
|
|
180
|
|
|
113
|
|
|
539
|
|
|
393
|
|
|
146
|
|
Other Income
(Expense), net
|
|
(28)
|
|
|
(12)
|
|
|
(16)
|
|
|
(54)
|
|
|
(19)
|
|
|
(35)
|
|
Income
Taxes
|
|
288
|
|
|
302
|
|
|
(14)
|
|
|
510
|
|
|
576
|
|
|
(66)
|
|
Consolidated Net
Income
|
|
662
|
|
|
643
|
|
|
19
|
|
|
1,159
|
|
|
1,169
|
|
|
(10)
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on
Preferred and Preference Stock of Subsidiaries
|
|
12
|
|
|
14
|
|
|
(2)
|
|
|
23
|
|
|
31
|
|
|
(8)
|
|
Net Income
Attributable to Noncontrolling Interests
|
|
12
|
|
|
—
|
|
|
12
|
|
|
13
|
|
|
—
|
|
|
13
|
|
CONSOLIDATED NET
INCOME ATTRIBUTABLE TO SOUTHERN COMPANY
|
|
$
|
638
|
|
|
$
|
629
|
|
|
$
|
9
|
|
|
$
|
1,123
|
|
|
$
|
1,138
|
|
|
$
|
(15)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
- Certain prior year
data may have been reclassified to conform with current year
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- All figures in this
earnings release are preliminary and remain subject to the
completion of normal quarter-end accounting procedures and
adjustments, which could result in changes to these preliminary
results. In addition, certain classifications and rounding may be
different from final results published in the Form 10-Q.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern
Company
|
|
Kilowatt-Hour
Sales
|
(In Millions of
KWHs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June
|
|
Year-to-Date
June
|
As
Reported
|
|
2016
|
|
2015
|
|
Change
|
|
Weather Adjusted
Change
|
|
2016
|
|
2015
|
|
Change
|
|
Weather Adjusted
Change*
|
Kilowatt-Hour
Sales-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
47,572
|
|
|
47,878
|
|
|
(0.6)
|
%
|
|
|
|
93,048
|
|
|
94,123
|
|
|
(1.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Retail
Sales-
|
|
39,426
|
|
|
40,072
|
|
|
(1.6)
|
%
|
|
(1.4)
|
%
|
|
77,465
|
|
|
79,281
|
|
|
(2.3)
|
%
|
|
(0.5)
|
%
|
Residential
|
|
12,443
|
|
|
12,548
|
|
|
(0.8)
|
%
|
|
(0.2)
|
%
|
|
25,045
|
|
|
26,125
|
|
|
(4.1)
|
%
|
|
0.6
|
%
|
Commercial
|
|
13,381
|
|
|
13,654
|
|
|
(2.0)
|
%
|
|
(1.9)
|
%
|
|
25,704
|
|
|
26,069
|
|
|
(1.4)
|
%
|
|
(0.6)
|
%
|
Industrial
|
|
13,382
|
|
|
13,645
|
|
|
(1.9)
|
%
|
|
(1.9)
|
%
|
|
26,270
|
|
|
26,633
|
|
|
(1.4)
|
%
|
|
(1.5)
|
%
|
Other
|
|
220
|
|
|
225
|
|
|
(1.9)
|
%
|
|
(1.9)
|
%
|
|
446
|
|
|
454
|
|
|
(1.8)
|
%
|
|
(1.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Wholesale
Sales
|
|
8,146
|
|
|
7,806
|
|
|
4.4
|
%
|
|
N/A
|
|
15,583
|
|
|
14,842
|
|
|
5.0
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Also reflects
adjustment of 2015 KWH sales consistent with Mississippi Power's
updated methodology to estimate the unbilled revenue allocation
among customer classes implemented in the first quarter
2015.
|
Southern
Company
|
Financial
Overview
|
As
Reported
|
(In Millions of
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June
|
|
Year-to-Date
June
|
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
Consolidated
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
4,453
|
|
|
$
|
4,337
|
|
|
2.7
|
%
|
|
$
|
8,431
|
|
|
$
|
8,520
|
|
|
(1.0)
|
%
|
Earnings Before
Income Taxes
|
|
950
|
|
|
945
|
|
|
0.5
|
%
|
|
1,669
|
|
|
1,745
|
|
|
(4.4)
|
%
|
Net Income Available
to Common
|
|
638
|
|
|
629
|
|
|
1.4
|
%
|
|
1,123
|
|
|
1,138
|
|
|
(1.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,444
|
|
|
$
|
1,455
|
|
|
(0.8)
|
%
|
|
$
|
2,776
|
|
|
$
|
2,856
|
|
|
(2.8)
|
%
|
Earnings Before
Income Taxes
|
|
358
|
|
|
329
|
|
|
8.8
|
%
|
|
621
|
|
|
621
|
|
|
—
|
%
|
Net Income Available
to Common
|
|
211
|
|
|
200
|
|
|
5.5
|
%
|
|
367
|
|
|
369
|
|
|
(0.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Georgia Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
2,051
|
|
|
$
|
2,016
|
|
|
1.7
|
%
|
|
$
|
3,923
|
|
|
$
|
3,994
|
|
|
(1.8)
|
%
|
Earnings Before
Income Taxes
|
|
565
|
|
|
462
|
|
|
22.3
|
%
|
|
998
|
|
|
842
|
|
|
18.5
|
%
|
Net Income Available
to Common
|
|
347
|
|
|
277
|
|
|
25.3
|
%
|
|
616
|
|
|
513
|
|
|
20.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gulf Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
365
|
|
|
$
|
384
|
|
|
(4.9)
|
%
|
|
$
|
700
|
|
|
$
|
741
|
|
|
(5.5)
|
%
|
Earnings Before
Income Taxes
|
|
61
|
|
|
59
|
|
|
3.4
|
%
|
|
112
|
|
|
121
|
|
|
(7.4)
|
%
|
Net Income Available
to Common
|
|
34
|
|
|
35
|
|
|
(2.9)
|
%
|
|
63
|
|
|
72
|
|
|
(12.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mississippi Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
277
|
|
|
$
|
275
|
|
|
0.7
|
%
|
|
$
|
533
|
|
|
$
|
552
|
|
|
(3.4)
|
%
|
Earnings Before
Income Taxes
|
|
29
|
|
|
66
|
|
|
(56.1)
|
%
|
|
30
|
|
|
105
|
|
|
(71.4)
|
%
|
Net Income Available
to Common
|
|
28
|
|
|
49
|
|
|
(42.9)
|
%
|
|
39
|
|
|
84
|
|
|
(53.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
373
|
|
|
$
|
337
|
|
|
10.7
|
%
|
|
$
|
688
|
|
|
$
|
684
|
|
|
0.6
|
%
|
Earnings Before
Income Taxes
|
|
60
|
|
|
53
|
|
|
13.2
|
%
|
|
87
|
|
|
98
|
|
|
(11.2)
|
%
|
Net Income Available
to Common
|
|
89
|
|
|
46
|
|
|
93.5
|
%
|
|
139
|
|
|
79
|
|
|
75.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
|
|
|
|
|
|
|
|
|
|
|
|
- All figures in this
earnings release are preliminary and remain subject to the
completion of normal quarter-end accounting procedures and
adjustments, which could result in changes to these preliminary
results. In addition, certain classifications and rounding may be
different from final results published in the Form 10-Q.
|
Logo - http://photos.prnewswire.com/prnh/20080801/SOCOLOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/southern-company-reports-second-quarter-earnings-300304576.html
SOURCE Southern Company