ATLANTA, Oct. 31, 2016 /PRNewswire/ -- Southern Company today reported third quarter 2016 earnings of $1.1 billion, or $1.18 per share, compared with earnings of $1.0 billion, or $1.05 per share, in the third quarter of 2015. For the nine months ended September 30, 2016, earnings were $2.2 billion, or $2.39 per share, compared with $2.1 billion, or $2.30 per share, for the same period in 2015.
Excluding the items described in the "Net Income – Excluding Items" table below, Southern Company earned $1.2 billion, or $1.28 per share, during the third quarter of 2016, compared with $1.1 billion, or $1.17 per share, during the third quarter of 2015. For the nine months ended September 30, 2016, excluding these items, Southern Company earned $2.5 billion, or $2.64 per share, compared with earnings of $2.2 billion, or $2.45 per share, for the same period in 2015.
|
Non-GAAP Financial Measures |
Three Months Ended September |
Year-to-Date September | |||
|
Net Income - Excluding Items (in millions) |
2016 |
2015 |
2016 |
2015 | |
|
Net Income - As Reported |
$1,145 |
$959 |
$2,242 |
$2,096 | |
|
Estimated Loss on Kemper IGCC |
63 |
150 |
197 |
182 | |
|
Tax Impact |
(24) |
(57) |
(76) |
(70) | |
|
Acquisition and Integration Costs |
43 |
16 |
107 |
16 | |
|
Tax Impact |
(14) |
(4) |
(34) |
(4) | |
|
Additional MCAR Settlement Costs |
- |
- |
- |
7 | |
|
Tax Impact |
- |
- |
- |
(3) | |
|
Subtotal |
$1,213 |
$1,064 |
$2,436 |
$2,224 | |
|
Earnings Guidance Comparability Items: |
|||||
|
Equity Return Related to Kemper IGCC Schedule Extension
|
(7) |
- |
(7) |
- | |
|
Tax Impact |
(1) |
- |
(1) |
- | |
|
Southern Company Gas Earnings, |
(46) |
- |
(46) |
- | |
|
net of Acquisition and Integration Costs |
|||||
|
Tax Impact |
18 |
- |
18 |
- | |
|
Acquisition Debt Financing Costs |
68 |
- |
107 |
- | |
|
Tax Impact |
(26) |
- |
(41) |
- | |
|
Net Income – Excluding Items |
$1,219 |
$1,064 |
$2,466 |
$2,224 | |
|
Adjusted Average Shares Outstanding – Acquisition Financing (in millions) |
954 |
910 |
935 |
910 | |
|
Basic Earnings Per Share – Excluding Items |
$1.28 |
$1.17 |
$2.64 |
$2.45 | |
NOTE: For more information regarding these non-GAAP adjustments, see the footnotes accompanying the Financial Highlights page of the earnings package.
Earnings drivers for the third quarter of 2016 were positively influenced by warmer than normal weather, retail revenue effects at Southern Company's traditional electric operating companies and stronger-than-expected performance of its Southern Power subsidiary. Earnings were negatively influenced by increased shares outstanding.
"We are pleased with the performance of our electric and gas businesses so far this year, including the strong performance of our wholesale generation subsidiary, Southern Power," said Southern Company Chairman, President and CEO Thomas A. Fanning. "For the first time, our reported earnings include results from Southern Company Gas, including the recent investment in the Southern Natural Gas pipeline. With these investments and the recently announced strategic alliance between our PowerSecure subsidiary and Bloom Energy, Southern Company continues to build the future of energy for the benefit of the customers and communities we are privileged to serve."
Third quarter 2016 operating revenues were $6.3 billion, compared with $5.4 billion for the third quarter of 2015, an increase of 16.0 percent. Southern Company Gas accounted for $0.5 billion of the increase in operating revenues for the third quarter of 2016. For the nine months ended September 30, 2016, operating revenues were $14.7 billion, compared with $13.9 billion for the same period in 2015, an increase of 5.7 percent.
Southern Company's third quarter earnings slides with supplemental financial information, including its earnings estimate for the fourth quarter of 2016, earnings guidance for 2017 and the company's financial outlook for the next five years, are included in the October 31, 2016 Analyst Day materials available at http://investor.southerncompany.com.
Southern Company's Analyst Day presentation will begin at 8:45 a.m. Eastern Time today, during which Fanning, Chief Financial Officer Art P. Beattie and other members of the company's executive management team will discuss earnings, provide a general business update and discuss the company's long-term outlook. 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.
|
Southern Company | ||||||||||||||||
|
Financial Highlights | ||||||||||||||||
|
(In Millions of Dollars Except Earnings Per Share) | ||||||||||||||||
|
Three Months Ended |
Year-to-Date September | |||||||||||||||
|
Net Income–As Reported (See Notes) |
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
Traditional Electric Operating Companies |
$ |
1,033 |
$ |
874 |
$ |
2,092 |
$ |
1,912 |
||||||||
|
Southern Power |
176 |
102 |
315 |
181 |
||||||||||||
|
Southern Company Gas |
4 |
— |
4 |
— |
||||||||||||
|
Total |
1,213 |
976 |
2,411 |
2,093 |
||||||||||||
|
Parent Company and Other |
(68) |
(17) |
(169) |
3 |
||||||||||||
|
Net Income–As Reported |
$ |
1,145 |
$ |
959 |
$ |
2,242 |
$ |
2,096 |
||||||||
|
Basic Earnings Per Share1 |
$ |
1.18 |
$ |
1.05 |
$ |
2.39 |
$ |
2.30 |
||||||||
|
Average Shares Outstanding (in millions) |
968 |
910 |
940 |
910 |
||||||||||||
|
End of Period Shares Outstanding (in millions) |
980 |
909 | ||||||||||||||
|
Non-GAAP Financial Measures |
Three Months Ended |
Year-to-Date | ||||||||||||||
|
Net Income–Excluding Items (See Notes) |
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
Net Income–As Reported |
$ |
1,145 |
$ |
959 |
$ |
2,242 |
$ |
2,096 |
||||||||
|
Estimated Loss on Kemper IGCC2 |
63 |
150 |
197 |
182 |
||||||||||||
|
Tax Impact |
(24) |
(57) |
(76) |
(70) |
||||||||||||
|
Acquisition and Integration Costs3 |
43 |
16 |
107 |
16 |
||||||||||||
|
Tax Impact |
(14) |
(4) |
(34) |
(4) |
||||||||||||
|
Additional MCAR Settlement Costs4 |
— |
— |
— |
7 |
||||||||||||
|
Tax Impact |
— |
— |
— |
(3) |
||||||||||||
|
Subtotal |
$ |
1,213 |
$ |
1,064 |
$ |
2,436 |
$ |
2,224 |
||||||||
|
Earnings Guidance Comparability Items: |
||||||||||||||||
|
Equity Return Related to Kemper IGCC |
(7) |
— |
(7) |
— |
||||||||||||
|
Tax Impact |
(1) |
— |
(1) |
— |
||||||||||||
|
Southern Company Gas Earnings, net of Acquisition and Integration Costs6 |
(46) |
— |
(46) |
— |
||||||||||||
|
Tax Impact |
18 |
— |
18 |
— |
||||||||||||
|
Acquisition Debt Financing Costs6 |
68 |
— |
107 |
— |
||||||||||||
|
Tax Impact |
(26) |
— |
(41) |
— |
||||||||||||
|
Net Income–Excluding Items |
$ |
1,219 |
$ |
1,064 |
$ |
2,466 |
$ |
2,224 |
||||||||
|
Adjusted Average Shares Outstanding - Acquisition Financing6(in millions) |
954 |
910 |
935 |
910 |
||||||||||||
|
Basic Earnings Per Share–Excluding Items |
$ |
1.28 |
$ |
1.17 |
$ |
2.64 |
$ |
2.45 |
||||||||
|
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. | ||||||||||||||||
|
-See Notes on the following page. | ||||||||||||||||
|
Southern Company | ||||||||||||
|
Financial Highlights | ||||||||||||
|
Notes |
||||||||||||
|
(1) For the three and nine months ended September 30, 2016 and 2015, dilution does not change basic earnings per share by more than 2 cents and is not material. | ||||||||||||
|
(2) 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 nine months ended September 30, 2016 and 2015. Similar charges of uncertain amounts may occur with uncertain frequency in future periods. | ||||||||||||
|
(3) Earnings for the three and nine months ended September 30, 2016 and 2015 include costs related to the acquisition of Southern Company Gas and earnings for the three and nine months ended September 30, 2016 include costs related to the acquisitions of PowerSecure International, Inc. and the 50% interest in Southern Natural Gas Company, L.L.C. (SNG). Further costs are expected to continue to occur in connection with the related integration activities; however, the amount and duration of such expenditures is uncertain. | ||||||||||||
|
(4) Earnings for the nine months ended September 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. | ||||||||||||
|
(5) Earnings for the three and nine months ended September 30, 2016 include additional allowance for funds used during construction (AFUDC) equity as a result of extending the schedule for the Kemper IGCC construction project. Southern Company's February 2016 earnings guidance assumed construction would be complete and AFUDC equity would cease by August 31, 2016. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to the February guidance. Management also uses such measures to evaluate Southern Company's performance in 2016. | ||||||||||||
|
(6) Earnings for the three and nine months ended September 30, 2016 include the earnings of Southern Company Gas since July 1, 2016 (the date of acquisition), as well as debt financing costs related to the acquisition. Earnings of Southern Company Gas since September 1, 2016 include amounts related to its acquisition of a 50% ownership interest in SNG. In addition, earnings per share for the three and nine months ended September 30, 2016 include the impact of 22,312,373 shares ($1.1 billion) of common stock issued in August 2016 to finance a portion of the purchase price for the SNG acquisition.
The timing of completion of the acquisition of Southern Company Gas was uncertain at the time Southern Company issued earnings per share guidance in February 2016, and Southern Company's agreement to acquire a 50% interest in SNG did not occur until July 2016. Accordingly, Southern Company's February 2016 guidance did not reflect any earnings contribution from these acquisitions or the financing costs related to the acquisitions. As a result, Southern Company believes presentation of earnings per share excluding these items provides investors with information comparable to the February guidance. Management also uses such measures to evaluate Southern Company's performance in 2016.
In addition to earnings and earnings per share calculated in accordance with U.S. generally accepted accounting principles (GAAP), Southern Company intends to continue to present earnings and earnings per share excluding the impact of the Wholesale Gas Services business of Southern Company Gas in future periods. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes volatility that results from mark-to-market and lower of weighted average cost or current market price accounting adjustments. Management also expects to use earnings and earnings per share excluding Wholesale Gas Services to evaluate Southern Company's performance. For the three and nine months ended September 30, 2016, the loss from Wholesale Gas Services and the related tax benefit were $18 million and $7 million, respectively.
| ||||||||||||
|
Southern Company | ||||||||||||||||||||||||
|
Significant Factors Impacting EPS | ||||||||||||||||||||||||
|
Three Months Ended |
Year-to-Date | |||||||||||||||||||||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |||||||||||||||||||
|
Earnings Per Share– |
||||||||||||||||||||||||
|
As Reported1 (See Notes) |
$ |
1.18 |
$ |
1.05 |
$ |
0.13 |
$ |
2.39 |
$ |
2.30 |
$ |
0.09 |
||||||||||||
|
Significant Factors: |
||||||||||||||||||||||||
|
Traditional Electric Operating Companies |
$ |
0.18 |
$ |
0.20 |
||||||||||||||||||||
|
Southern Power |
0.08 |
0.15 |
||||||||||||||||||||||
|
Southern Company Gas |
0.01 |
0.01 |
||||||||||||||||||||||
|
Parent Company and Other |
(0.06) |
(0.19) |
||||||||||||||||||||||
|
Increase in Shares |
(0.08) |
(0.08) |
||||||||||||||||||||||
|
Total–As Reported |
$ |
0.13 |
$ |
0.09 |
||||||||||||||||||||
|
Three Months Ended |
Year-to-Date | |||||||||||||||||||||||
|
Non-GAAP Financial Measures |
2016 |
2015 |
Change |
2016 |
2015 |
Change | ||||||||||||||||||
|
Earnings Per Share– |
||||||||||||||||||||||||
|
Excluding Items (See Notes) |
$ |
1.28 |
$ |
1.17 |
$ |
0.11 |
$ |
2.64 |
$ |
2.45 |
$ |
0.19 |
||||||||||||
|
Total–As Reported |
$ |
0.13 |
$ |
0.09 |
||||||||||||||||||||
|
Estimated Loss on Kemper IGCC2 |
(0.07) |
— |
||||||||||||||||||||||
|
Acquisition and Integration Costs3 |
0.02 |
0.07 |
||||||||||||||||||||||
|
Additional MCAR Settlement Costs4 |
— |
(0.01) |
||||||||||||||||||||||
|
Equity Return Related to Kemper IGCC |
(0.01) |
(0.01) |
||||||||||||||||||||||
|
Southern Company Gas Earnings, net of Acquisition and Integration Costs6 |
(0.03) |
(0.03) |
||||||||||||||||||||||
|
Acquisition Debt Financing Costs6 |
0.05 |
0.07 |
||||||||||||||||||||||
|
Additional Shares Issued for SNG Acquisition6 |
0.02 |
0.01 |
||||||||||||||||||||||
|
Total–Excluding Items |
$ |
0.11 |
$ |
0.19 |
||||||||||||||||||||
|
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. | ||||||||||||||||||||||||
|
- See Notes on the following page. | ||||||||||||||||||||||||
|
Southern Company | ||||||||||||
|
Significant Factors Impacting EPS | ||||||||||||
|
Notes |
||||||||||||
|
(1) For the three and nine months ended September 30, 2016 and 2015, dilution does not change basic earnings per share by more than 2 cents and is not material. | ||||||||||||
|
(2) 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 nine months ended September 30, 2016 and 2015. Similar charges of uncertain amounts may occur with uncertain frequency in future periods. | ||||||||||||
|
(3) Earnings for the three and nine months ended September 30, 2016 and 2015 include costs related to the acquisition of Southern Company Gas and earnings for the three and nine months ended September 30, 2016 include costs related to the acquisitions of PowerSecure International, Inc. and the 50% interest in Southern Natural Gas Company, L.L.C. (SNG). Further costs are expected to continue to occur in connection with the related integration activities; however, the amount and duration of such expenditures is uncertain. | ||||||||||||
|
(4) Earnings for the nine months ended September 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. | ||||||||||||
|
(5) Earnings for the three and nine months ended September 30, 2016 include additional allowance for funds used during construction (AFUDC) equity as a result of extending the schedule for the Kemper IGCC construction project. Southern Company's February 2016 earnings guidance assumed construction would be complete and AFUDC equity would cease by August 31, 2016. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to the February guidance. Management also uses such measures to evaluate Southern Company's performance in 2016. | ||||||||||||
|
(6) Earnings for the three and nine months ended September 30, 2016 include the earnings of Southern Company Gas since July 1, 2016 (the date of acquisition), as well as debt financing costs related to the acquisition. Earnings of Southern Company Gas since September 1, 2016 include amounts related to its acquisition of a 50% ownership interest in SNG. In addition, earnings per share for the three and nine months ended September 30, 2016 include the impact of 22,312,373 shares ($1.1 billion) of common stock issued in August 2016 to finance a portion of the purchase price for the SNG acquisition.
The timing of completion of the acquisition of Southern Company Gas was uncertain at the time Southern Company issued earnings per share guidance in February 2016, and Southern Company's agreement to acquire a 50% interest in SNG did not occur until July 2016. Accordingly, Southern Company's February 2016 guidance did not reflect any earnings contribution from these acquisitions or the financing costs related to the acquisitions. As a result, Southern Company believes presentation of earnings per share excluding these items provides investors with information comparable to the February guidance. Management also uses such measures to evaluate Southern Company's performance in 2016.
In addition to earnings and earnings per share calculated in accordance with U.S. generally accepted accounting principles (GAAP), Southern Company intends to continue to present earnings and earnings per share excluding the impact of the Wholesale Gas Services business of Southern Company Gas in future periods. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes volatility that results from mark-to-market and lower of weighted average cost or current market price accounting adjustments. Management also expects to use earnings and earnings per share excluding Wholesale Gas Services to evaluate Southern Company's performance. For the three and nine months ended September 30, 2016, the loss from Wholesale Gas Services and the related tax benefit were $18 million and $7 million, respectively.
| ||||||||||||
|
Southern Company | |
|
EPS Earnings Analysis | |
|
Three Months Ended September 2016 vs. September 2015 | |
|
Cents |
Description |
|
(2)¢ |
Retail Sales |
|
8 |
Retail Revenue Impacts |
|
11 |
Weather |
|
(1) |
Wholesale Operations |
|
1 |
Other Operating Revenues |
|
(1) |
Non-Fuel O&M |
|
(1) |
Depreciation and Amortization |
|
(1) |
Taxes Other Than Income Taxes |
|
(2) |
Other Income and Deductions |
|
(1) |
Interest Expense |
|
11¢ |
Total Traditional Electric Operating Companies |
|
8¢ |
Southern Power |
|
(2)¢ |
Parent and Other (Excluding Items)1 |
|
(6)¢ |
Increase in Shares (Excluding Items)2 |
|
11¢ |
Total Change in QTD EPS (Excluding Items) |
|
7 |
Estimated Loss on Kemper IGCC3 |
|
(2) |
Acquisition and Integration Costs4 |
|
1 |
Equity Return Related to Kemper IGCC Schedule Extension5 |
|
3 |
Southern Company Gas Earnings, net of Acquisition and Integration Costs6 |
|
(5) |
Acquisition Debt Financing Costs6 |
|
(2) |
Increase in Shares Issued for the Acquisition of a 50% Interest in SNG6 |
|
13¢ |
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. | |
|
- See Notes on the following page. | |
|
Southern Company | |
|
EPS Earnings Analysis | |
|
Three Months Ended September 2016 vs. September 2015 | |
|
Notes | |
|
(1) Excludes Acquisition Debt Financing Costs, which are identified separately in the table. | |
|
(2) Excludes the impact of 22,312,373 shares ($1.1 billion) of common stock issued in August 2016 to finance a portion of the purchase price for the Southern Natural Gas Company, L.L.C. (SNG) acquisition which is identified separately in the table. | |
|
(3) 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 September 30, 2016 and 2015. Similar charges of uncertain amounts may occur with uncertain frequency in future periods. | |
|
(4) Earnings for the three months ended September 30, 2016 and 2015 include costs related to the acquisition of Southern Company Gas and earnings for the three months ended September 30, 2016 include costs related to the acquisitions of PowerSecure International, Inc. and the 50% interest in SNG. Further costs are expected to continue to occur in connection with the related integration activities; however, the amount and duration of such expenditures is uncertain. | |
|
(5) Earnings for the three and nine months ended September 30, 2016 include additional allowance for funds used during construction (AFUDC) equity as a result of extending the schedule for the Kemper IGCC construction project. Southern Company's February 2016 earnings guidance assumed construction would be complete and AFUDC equity would cease by August 31, 2016. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to the February guidance. Management also uses such measures to evaluate Southern Company's performance in 2016. | |
|
(6) Earnings for the three months ended September 30, 2016 include the earnings of Southern Company Gas since July 1, 2016 (the date of acquisition), as well as debt financing costs related to the acquisition. Earnings of Southern Company Gas since September 1, 2016 include amounts related to its acquisition of a 50% ownership interest in SNG. In addition, earnings per share for the three months ended September 30, 2016 include the impact of 22,312,373 shares ($1.1 billion) of common stock issued in August 2016 to finance a portion of the purchase price for the SNG acquisition.
The timing of completion of the acquisition of Southern Company Gas was uncertain at the time Southern Company issued earnings per share guidance in February 2016, and Southern Company's agreement to acquire a 50% interest in SNG did not occur until July 2016. Accordingly, Southern Company's February 2016 guidance did not reflect any earnings contribution from these acquisitions or the financing costs related to the acquisitions. As a result, Southern Company believes presentation of earnings per share excluding these items provides investors with information comparable to the February guidance. Management also uses such measures to evaluate Southern Company's performance in 2016.
In addition to earnings and earnings per share calculated in accordance with U.S. generally accepted accounting principles (GAAP), Southern Company intends to continue to present earnings and earnings per share excluding the impact of the Wholesale Gas Services business of Southern Company Gas in future periods. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility that results from mark-to-market and lower of weighted average cost or current market price accounting adjustments. Management also expects to use earnings and earnings per share excluding Wholesale Gas Services to evaluate Southern Company's performance. For the three months ended September 30, 2016, the loss from Wholesale Gas Services and the related tax benefit were $18 million and $7 million, respectively. | |
|
Southern Company | ||||||||||||||||||||||||
|
Consolidated Earnings | ||||||||||||||||||||||||
|
As Reported | ||||||||||||||||||||||||
|
(In Millions of Dollars) | ||||||||||||||||||||||||
|
Three Months Ended September |
Year-to-Date September | |||||||||||||||||||||||
|
2016 |
2015 |
Change |
2016 |
2015 |
Change | |||||||||||||||||||
|
Income Account- |
||||||||||||||||||||||||
|
Retail Electric Revenues- |
||||||||||||||||||||||||
|
Fuel |
$ |
1,296 |
$ |
1,432 |
$ |
(136) |
$ |
3,169 |
$ |
3,651 |
$ |
(482) |
||||||||||||
|
Non-Fuel |
3,512 |
3,269 |
243 |
8,763 |
8,307 |
456 |
||||||||||||||||||
|
Wholesale Electric Revenues |
613 |
520 |
93 |
1,455 |
1,435 |
20 |
||||||||||||||||||
|
Other Electric Revenues |
181 |
169 |
12 |
529 |
494 |
35 |
||||||||||||||||||
|
Natural Gas Revenues |
518 |
— |
518 |
518 |
— |
518 |
||||||||||||||||||
|
Other Revenues |
144 |
11 |
133 |
281 |
34 |
247 |
||||||||||||||||||
|
Total Revenues |
6,264 |
5,401 |
863 |
14,715 |
13,921 |
794 |
||||||||||||||||||
|
Fuel and Purchased Power |
1,627 |
1,713 |
(86) |
3,915 |
4,439 |
(524) |
||||||||||||||||||
|
Cost of Natural Gas |
133 |
— |
133 |
133 |
— |
133 |
||||||||||||||||||
|
Cost of Other Sales |
84 |
— |
84 |
161 |
— |
161 |
||||||||||||||||||
|
Non-Fuel O & M |
1,411 |
1,097 |
314 |
3,616 |
3,320 |
296 |
||||||||||||||||||
|
Depreciation and Amortization |
695 |
528 |
167 |
1,805 |
1,515 |
290 |
||||||||||||||||||
|
Taxes Other Than Income Taxes |
309 |
264 |
45 |
821 |
761 |
60 |
||||||||||||||||||
|
Estimated Loss on Kemper IGCC |
63 |
150 |
(87) |
197 |
182 |
15 |
||||||||||||||||||
|
Total Operating Expenses |
4,322 |
3,752 |
570 |
10,648 |
10,217 |
431 |
||||||||||||||||||
|
Operating Income |
1,942 |
1,649 |
293 |
4,067 |
3,704 |
363 |
||||||||||||||||||
|
Allowance for Equity Funds Used During Construction |
52 |
60 |
(8) |
150 |
163 |
(13) |
||||||||||||||||||
|
Interest Expense, Net of Amounts Capitalized |
374 |
218 |
156 |
913 |
612 |
301 |
||||||||||||||||||
|
Other Income (Expense), net |
21 |
(21) |
42 |
(38) |
(41) |
3 |
||||||||||||||||||
|
Income Taxes |
458 |
500 |
(42) |
951 |
1,076 |
(125) |
||||||||||||||||||
|
Net Income |
1,183 |
970 |
213 |
2,315 |
2,138 |
177 |
||||||||||||||||||
|
Less: |
||||||||||||||||||||||||
|
Dividends on Preferred and Preference Stock of Subsidiaries |
11 |
11 |
— |
34 |
42 |
(8) |
||||||||||||||||||
|
Net Income Attributable to Noncontrolling Interests |
27 |
— |
27 |
39 |
— |
39 |
||||||||||||||||||
|
NET INCOME ATTRIBUTABLE TO SOUTHERN COMPANY |
$ |
1,145 |
$ |
959 |
$ |
186 |
$ |
2,242 |
$ |
2,096 |
$ |
146 |
||||||||||||
|
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 September |
Year-to-Date September | |||||||||||||||||||||||
|
As Reported |
2016 |
2015 |
Change |
Weather Adjusted Change |
2016 |
2015 |
Change |
Weather Adjusted Change* | ||||||||||||||||
|
Kilowatt-Hour Sales- |
||||||||||||||||||||||||
|
Total Sales |
58,051 |
54,921 |
5.7 |
% |
151,099 |
149,044 |
1.4 |
% |
||||||||||||||||
|
Total Retail Sales- |
47,071 |
45,614 |
3.2 |
% |
(1.4) |
% |
124,535 |
124,895 |
(0.3) |
% |
(0.8) |
% | ||||||||||||
|
Residential |
17,213 |
15,801 |
8.9 |
% |
(0.4) |
% |
42,257 |
41,925 |
0.8 |
% |
0.2 |
% | ||||||||||||
|
Commercial |
15,805 |
15,289 |
3.4 |
% |
(0.7) |
% |
41,509 |
41,359 |
0.4 |
% |
(0.6) |
% | ||||||||||||
|
Industrial |
13,833 |
14,305 |
(3.3) |
% |
(3.3) |
% |
40,102 |
40,938 |
(2.0) |
% |
(2.1) |
% | ||||||||||||
|
Other |
220 |
219 |
0.7 |
% |
0.7 |
% |
667 |
673 |
(1.0) |
% |
(0.9) |
% | ||||||||||||
|
Total Wholesale Sales |
10,980 |
9,307 |
18.0 |
% |
N/A |
26,564 |
24,149 |
10.0 |
% |
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 September |
Year-to-Date September | |||||||||||||||||||||
|
2016 |
2015 |
% Change |
2016 |
2015 |
% Change | |||||||||||||||||
|
Southern Company – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
6,264 |
$ |
5,401 |
16.0 |
% |
$ |
14,715 |
$ |
13,921 |
5.7 |
% | ||||||||||
|
Earnings Before Income Taxes |
1,641 |
1,470 |
11.6 |
% |
3,266 |
3,214 |
1.6 |
% | ||||||||||||||
|
Net Income Available to Common |
1,145 |
959 |
19.4 |
% |
2,242 |
2,096 |
7.0 |
% | ||||||||||||||
|
Alabama Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
1,785 |
$ |
1,695 |
5.3 |
% |
$ |
4,561 |
$ |
4,551 |
0.2 |
% | ||||||||||
|
Earnings Before Income Taxes |
575 |
491 |
17.1 |
% |
1,196 |
1,113 |
7.5 |
% | ||||||||||||||
|
Net Income Available to Common |
350 |
295 |
18.6 |
% |
717 |
665 |
7.8 |
% | ||||||||||||||
|
Georgia Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
2,698 |
$ |
2,691 |
0.3 |
% |
$ |
6,621 |
$ |
6,685 |
(1.0) |
% | ||||||||||
|
Earnings Before Income Taxes |
967 |
892 |
8.4 |
% |
1,964 |
1,734 |
13.3 |
% | ||||||||||||||
|
Net Income Available to Common |
598 |
551 |
8.5 |
% |
1,214 |
1,064 |
14.1 |
% | ||||||||||||||
|
Gulf Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
436 |
$ |
429 |
1.6 |
% |
$ |
1,136 |
$ |
1,170 |
(2.9) |
% | ||||||||||
|
Earnings Before Income Taxes |
77 |
81 |
(4.9) |
% |
189 |
202 |
(6.4) |
% | ||||||||||||||
|
Net Income Available to Common |
45 |
48 |
(6.3) |
% |
108 |
120 |
(10.0) |
% | ||||||||||||||
|
Mississippi Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
352 |
$ |
341 |
3.2 |
% |
$ |
885 |
$ |
893 |
(0.9) |
% | ||||||||||
|
Earnings (Loss) Before Income Taxes |
48 |
(52) |
N/M |
35 |
52 |
(32.7) |
% | |||||||||||||||
|
Net Income (Loss) Available to Common |
41 |
(21) |
N/M |
54 |
62 |
(12.9) |
% | |||||||||||||||
|
Southern Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
500 |
$ |
401 |
24.7 |
% |
$ |
1,189 |
$ |
1,086 |
9.5 |
% | ||||||||||
|
Earnings Before Income Taxes |
101 |
112 |
(9.8) |
% |
187 |
210 |
(11.0) |
% | ||||||||||||||
|
Net Income Available to Common |
176 |
102 |
72.5 |
% |
315 |
181 |
74.0 |
% | ||||||||||||||
|
Southern Company Gas – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
543 |
$ |
— |
N/A |
$ |
543 |
$ |
— |
N/A |
||||||||||||
|
Earnings Before Income Taxes |
11 |
— |
N/A |
11 |
— |
N/A |
||||||||||||||||
|
Net Income Available to Common |
4 |
— |
N/A |
4 |
— |
N/A |
||||||||||||||||
|
N/M - not meaningful |
||||||||||||||||||||||
|
N/A - not applicable |
||||||||||||||||||||||
|
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. | ||||||||||||||||||||||
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SOURCE Southern Company