ATLANTA, Nov. 1, 2017 /PRNewswire/ -- Southern Company today reported third quarter 2017 earnings of $1.07 billion, or $1.07 per share, compared with earnings of $1.14 billion, or $1.18 per share, in the third quarter of 2016. For the nine months ended September 30, 2017, Southern Company reported earnings of $347 million, or 35 cents per share, compared with earnings of $2.25 billion, or $2.40 per share, for the same period in 2016.
Excluding the items described in the "Net Income – Excluding Items" table below, Southern Company earned $1.13 billion, or $1.12 per share, during the third quarter of 2017, compared with $1.23 billion, or $1.27 per share, during the third quarter of 2016. For the nine months ended September 30, 2017, excluding these items, Southern Company earned $2.51 billion, or $2.51 per share, compared with earnings of $2.46 billion, or $2.62 per share, for the same period in 2016.
|
Non-GAAP Financial Measures |
Three Months Ended September |
Year-to-Date September | |||
|
Net Income - Excluding Items (in millions) |
2017 |
2016 |
2017 |
2016 | |
|
Net Income - As Reported |
$1,069 |
$1,139 |
$347 |
$2,251 | |
|
Estimated Loss on Kemper IGCC |
34 |
88 |
3,155 |
222 | |
|
Tax Impact |
(13) |
(34) |
(951) |
(85) | |
|
Loss on Plant Scherer Unit 3 |
- |
- |
33 |
- | |
|
Tax Impact |
- |
- |
(13) |
- | |
|
Acquisition and Integration Costs |
6 |
43 |
19 |
107 | |
|
Tax Impact |
7 |
(14) |
2 |
(34) | |
|
Wholesale Gas Services |
38 |
18 |
(48) |
18 | |
|
Tax Impact |
(15) |
(7) |
20 |
(7) | |
|
Earnings Guidance Comparability Item: |
|||||
|
Equity Return Related to Kemper IGCC Schedule Extension |
- |
(7) |
(47) |
(7) | |
|
Tax Impact |
- |
(1) |
(9) |
(1) | |
|
Net Income – Excluding Items |
$1,126 |
$1,225 |
$2,508 |
$2,464 | |
|
Average Shares Outstanding – (in millions) |
1,003 |
968 |
998 |
940 | |
|
Basic Earnings Per Share – Excluding Items |
$1.12 |
$1.27 |
$2.51 |
$2.62 | |
NOTE: For more information regarding these non-GAAP adjustments, see the footnotes accompanying the Financial Highlights page of the earnings package.
Earnings drivers year-over-year for the third quarter 2017 were positively influenced by retail revenue effects at Southern Company's traditional electric operating companies and were negatively influenced by mild weather, timing for Southern Power tax credits, increased interest expense and share issuances.
"Our premier, state-regulated electric and gas franchise operations and our competitive generation subsidiary, Southern Power, continued to perform at a high level in the third quarter of 2017, delivering on our commitment to provide clean, safe, reliable and affordable energy to customers," said Chairman, President and CEO Thomas A. Fanning. "This longstanding customer focus, as further manifested by the resiliency demonstrated in our hurricane restoration efforts during the past quarter, is the cornerstone for delivering on our long-term financial objectives as we continue to build America's energy future."
Third quarter 2017 operating revenues were $6.20 billion, compared with $6.26 billion for the third quarter of 2016, a decrease of 1.0 percent. This decrease in quarter-over-quarter revenues is primarily due to the effects of milder weather and electricity outages experienced during Hurricane Irma. For the nine months ended September 30, 2017, operating revenues were $17.4 billion, compared with $14.7 billion during the same period of 2016, an increase of 18.3 percent. Southern Company Gas accounted for $2.3 billion of the increase in operating revenues for the nine months ended September 30, 2017.
Southern Company's third quarter earnings slides with supplemental financial information 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 46,000 megawatts of generating capacity and 1,500 billion cubic feet of combined natural gas consumption and throughput volume serving 9 million customers through its subsidiaries. The company provides clean, safe, reliable and affordable energy through electric operating companies in four states, natural gas distribution companies 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 energy companies 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) |
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Traditional Electric Operating Companies |
$ |
1,008 |
$ |
1,022 |
$ |
— |
$ |
2,086 |
||||||||
|
Southern Power |
124 |
176 |
276 |
315 |
||||||||||||
|
Southern Company Gas1 |
15 |
4 |
303 |
4 |
||||||||||||
|
Total |
1,147 |
1,202 |
579 |
2,405 |
||||||||||||
|
Parent Company and Other |
(78) |
(63) |
(232) |
(154) |
||||||||||||
|
Net Income–As Reported |
$ |
1,069 |
$ |
1,139 |
$ |
347 |
$ |
2,251 |
||||||||
|
Basic Earnings Per Share2 |
$ |
1.07 |
$ |
1.18 |
$ |
0.35 |
$ |
2.40 |
||||||||
|
Average Shares Outstanding (in millions) |
1,003 |
968 |
998 |
940 |
||||||||||||
|
End of Period Shares Outstanding (in millions) |
1,004 |
980 |
||||||||||||||
|
Non-GAAP Financial Measures |
Three Months Ended |
Year-to-Date | ||||||||||||||
|
Net Income–Excluding Items (See Notes) |
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Net Income–As Reported |
$ |
1,069 |
$ |
1,139 |
$ |
347 |
$ |
2,251 |
||||||||
|
Estimated Loss on Kemper IGCC3 |
34 |
88 |
3,155 |
222 |
||||||||||||
|
Tax Impact |
(13) |
(34) |
(951) |
(85) |
||||||||||||
|
Loss on Plant Scherer Unit 34 |
— |
— |
33 |
— |
||||||||||||
|
Tax Impact |
— |
— |
(13) |
— |
||||||||||||
|
Acquisition and Integration Costs5 |
6 |
43 |
19 |
107 |
||||||||||||
|
Tax Impact |
7 |
(14) |
2 |
(34) |
||||||||||||
|
Wholesale Gas Services6 |
38 |
18 |
(48) |
18 |
||||||||||||
|
Tax Impact |
(15) |
(7) |
20 |
(7) |
||||||||||||
|
Earnings Guidance Comparability Item: |
||||||||||||||||
|
Equity Return Related to Kemper IGCC Schedule Extension7 |
— |
(7) |
(47) |
(7) |
||||||||||||
|
Tax Impact |
— |
(1) |
(9) |
(1) |
||||||||||||
|
Net Income–Excluding Items |
$ |
1,126 |
$ |
1,225 |
$ |
2,508 |
$ |
2,464 |
||||||||
|
Basic Earnings Per Share–Excluding Items |
$ |
1.12 |
$ |
1.27 |
$ |
2.51 |
$ |
2.62 |
||||||||
|
-See Notes on the following page. | ||||||||||||||||
|
Southern Company | ||||||||
|
Financial Highlights | ||||||||
|
Notes |
||||||||
|
- In connection with the adoption in the fourth quarter 2016 of a new accounting standard for stock compensation, previously reported amounts for income tax expense were reduced by a total of $9 million and $25 million for the three and nine months ended September 30, 2016, respectively. | ||||||||
|
- For comparative purposes, Net Income - Excluding Items and Basic Earnings Per Share - Excluding Items in prior year periods do not reflect any adjustments to exclude (1) Southern Company Gas earnings, net of acquisition and integration costs and Wholesale Gas Services ($0.04 per share for the three and nine months ended September 30, 2016), (2) acquisition debt financing costs related to the acquisition of Southern Company Gas ($0.05 and $0.07 per share for the three and nine months ended September 30, 2016, respectively), and (3) the impact of additional shares of common stock issued to finance a portion of the purchase price for the 50% interest in Southern Natural Gas Company, L.L.C. (SNG) ($0.02 and $0.01 per share for the three and nine months ended September 30, 2016, respectively). These items were not contemplated in Southern Company's February 2016 guidance and, therefore, were previously excluded in the periods through December 31, 2016.
| ||||||||
|
(1) On July 1, 2016, Southern Company completed the acquisition of Southern Company Gas. | ||||||||
|
(2) For the three and nine months ended September 30, 2017 and 2016, dilution does not change basic earnings per share by more than 2 cents and is not material. | ||||||||
|
(3) Earnings for the three and nine months ended September 30, 2017 and 2016 include the estimated losses relating to Mississippi Power Company's integrated coal gasification combined cycle facility construction project in Kemper County, Mississippi (Kemper IGCC) which significantly impacted the presentation of earnings and earnings per share. Further charges of uncertain amounts may occur in future periods in connection with the resolution of the Mississippi Public Service Commission's Kemper Settlement Docket. | ||||||||
|
(4) Earnings for the nine months ended September 30, 2017 include a $32.5 million write-down ($20 million after tax) of Gulf Power Company's ownership of Plant Scherer Unit 3 as a result of the retail rate case settlement approved by the Florida Public Service Commission on April 4, 2017. Further charges are not expected to occur. | ||||||||
|
(5) Earnings for the three and nine months ended September 30, 2017 and 2016 include costs related to the acquisition and integration of Southern Company Gas. 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. | ||||||||
|
(6) Earnings for the three and nine months ended September 30, 2017 and 2016 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments. | ||||||||
|
(7) Earnings for the nine months ended September 30, 2017 and 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. AFUDC equity ceased in connection with the project's suspension in June 2017. Southern Company's 2017 earnings guidance, initially presented in October 2016, assumed construction would be complete and AFUDC equity would cease by November 30, 2016. Southern Company's 2016 earnings guidance, initially presented in February 2016, 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 AFUDC equity subsequent to August 31, 2016 provides investors with information comparable to guidance. Management also uses such measures to evaluate Southern Company's performance. | ||||||||
|
Southern Company | ||||||||||||||||||||||||
|
Significant Factors Impacting EPS | ||||||||||||||||||||||||
|
Three Months Ended |
Year-to-Date | |||||||||||||||||||||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |||||||||||||||||||
|
Earnings Per Share– |
||||||||||||||||||||||||
|
As Reported1 (See Notes) |
$ |
1.07 |
$ |
1.18 |
$ |
(0.11) |
$ |
0.35 |
$ |
2.40 |
$ |
(2.05) |
||||||||||||
|
Significant Factors: |
||||||||||||||||||||||||
|
Traditional Electric Operating Companies |
$ |
(0.01) |
$ |
(2.22) |
||||||||||||||||||||
|
Southern Power |
(0.05) |
(0.04) |
||||||||||||||||||||||
|
Southern Company Gas2 |
0.01 |
0.32 |
||||||||||||||||||||||
|
Parent Company and Other |
(0.02) |
(0.09) |
||||||||||||||||||||||
|
Increase in Shares |
(0.04) |
(0.02) |
||||||||||||||||||||||
|
Total–As Reported |
$ |
(0.11) |
$ |
(2.05) |
||||||||||||||||||||
|
Three Months Ended |
Year-to-Date | |||||||||||||||||||||||
|
Non-GAAP Financial Measures |
2017 |
2016 |
Change |
2017 |
2016 |
Change | ||||||||||||||||||
|
Earnings Per Share– |
||||||||||||||||||||||||
|
Excluding Items (See Notes) |
$ |
1.12 |
$ |
1.27 |
$ |
(0.15) |
$ |
2.51 |
$ |
2.62 |
$ |
(0.11) |
||||||||||||
|
Total–As Reported |
$ |
(0.11) |
$ |
(2.05) |
||||||||||||||||||||
|
Kemper IGCC Impacts3 |
(0.03) |
2.02 |
||||||||||||||||||||||
|
Loss on Plant Scherer Unit 34 |
— |
0.02 |
||||||||||||||||||||||
|
Acquisition and Integration Costs5 |
(0.02) |
(0.06) |
||||||||||||||||||||||
|
Wholesale Gas Services6 |
0.01 |
(0.04) |
||||||||||||||||||||||
|
Total–Excluding Items |
$ |
(0.15) |
$ |
(0.11) |
||||||||||||||||||||
|
- See Notes on the following page. | ||||||||||||||||||||||||
|
Southern Company | ||||||||||||
|
Significant Factors Impacting EPS | ||||||||||||
|
Notes |
||||||||||||
|
- In connection with the adoption in the fourth quarter 2016 of a new accounting standard for stock compensation, previously reported amounts for income tax expense were reduced by a total of $9 million and $25 million for the three and nine months ended September 30, 2016, respectively. | ||||||||||||
|
- For comparative purposes, Net Income - Excluding Items and Basic Earnings Per Share - Excluding Items in prior year periods do not reflect any adjustments to exclude (1) Southern Company Gas earnings, net of acquisition and integration costs and Wholesale Gas Services ($0.04 per share for the three and nine months ended September 30, 2016), (2) acquisition debt financing costs related to the acquisition of Southern Company Gas ($0.05 and $0.07 per share for the three and nine months ended September 30, 2016, respectively), and (3) the impact of additional shares of common stock issued to finance a portion of the purchase price for the 50% interest in Southern Natural Gas Company, L.L.C. (SNG) ($0.02 and $0.01 per share for the three and nine months ended September 30, 2016, respectively). These items were not contemplated in Southern Company's February 2016 guidance and, therefore, were previously excluded in the periods through December 31, 2016. | ||||||||||||
|
(1) For the three and nine months ended September 30, 2017 and 2016, dilution does not change basic earnings per share by more than 2 cents and is not material. | ||||||||||||
|
(2) On July 1, 2016, Southern Company completed the acquisition of Southern Company Gas. | ||||||||||||
|
(3) Earnings for the three and nine months ended September 30, 2017 and 2016 include the estimated losses relating to Mississippi Power Company's integrated coal gasification combined cycle facility construction project in Kemper County, Mississippi (Kemper IGCC) which significantly impacted the presentation of earnings and earnings per share. Further charges of uncertain amounts may occur in future periods in connection with the resolution of the Mississippi Public Service Commission's Kemper Settlement Docket. | ||||||||||||
|
(4) Earnings for the nine months ended September 30, 2017 include a $32.5 million write-down ($20 million after tax) of Gulf Power Company's ownership of Plant Scherer Unit 3 as a result of the retail rate case settlement approved by the Florida Public Service Commission on April 4, 2017. Further charges are not expected to occur. | ||||||||||||
|
(5) Earnings for the three and nine months ended September 30, 2017 and 2016 include costs related to the acquisition and integration of Southern Company Gas. 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. | ||||||||||||
|
(6) Earnings for the three and nine months ended September 30, 2017 and 2016 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments. | ||||||||||||
|
Southern Company | |
|
EPS Earnings Analysis | |
|
Three Months Ended September 2017 vs. September 2016 | |
|
Cents |
Description |
|
(4)¢ |
Retail Sales |
|
9¢ |
Retail Revenue Impacts |
|
(10)¢ |
Weather |
|
(1)¢ |
Wholesale Operations |
|
4¢ |
Non-Fuel O&M |
|
(1)¢ |
Depreciation and Amortization |
|
1¢ |
Taxes Other Than Income Taxes |
|
(2)¢ |
Other Income and Deductions |
|
1¢ |
Interest Expense |
|
(1)¢ |
Income Taxes |
|
(4)¢ |
Total Traditional Electric Operating Companies |
|
(5)¢ |
Southern Power |
|
1¢ |
Southern Company Gas1 |
|
(3)¢ |
Parent and Other |
|
(4)¢ |
Increase in Shares |
|
(15)¢ |
Total Change in QTD EPS (Excluding Items) |
|
3¢ |
Kemper IGCC Impacts2 |
|
2¢ |
Acquisition and Integration Costs3 |
|
(1)¢ |
Wholesale Gas Services4 |
|
(11)¢ |
Total Change in QTD EPS (As Reported) |
|
- See Notes on the following page. | |
|
Southern Company | |
|
EPS Earnings Analysis | |
|
Three Months Ended September 2017 vs. September 2016 | |
|
Notes | |
|
- In connection with the adoption in the fourth quarter 2016 of a new accounting standard for stock compensation, previously reported amounts for income tax expense were reduced by a total of $9 million for the three months ended September 30, 2016. | |
|
- For comparative purposes, Net Income - Excluding Items and Basic Earnings Per Share - Excluding Items in prior year periods do not reflect any adjustments to exclude (1) Southern Company Gas earnings, net of acquisition and integration costs and Wholesale Gas Services ($0.04 per share for the three months ended September 30, 2016), (2) acquisition debt financing costs related to the acquisition of Southern Company Gas ($0.05 per share for the three months ended September 30, 2016), and (3) the impact of additional shares of common stock issued to finance a portion of the purchase price for the 50% interest in Southern Natural Gas Company, L.L.C. (SNG) ($0.02 per share for the three months ended September 30, 2016). These items were not contemplated in Southern Company's February 2016 guidance and, therefore, were previously excluded in the periods through December 31, 2016. | |
|
(1) On July 1, 2016, Southern Company completed the acquisition of Southern Company Gas. | |
|
(2) Earnings for the three months ended September 30, 2017 and 2016 include the estimated losses relating to Mississippi Power Company's integrated coal gasification combined cycle facility construction project in Kemper County, Mississippi (Kemper IGCC) which significantly impacted the presentation of earnings and earnings per share. Further charges of uncertain amounts may occur in future periods in connection with the resolution of the Mississippi Public Service Commission's Kemper Settlement Docket. | |
|
(3) Earnings for the three months ended September 30, 2017 and 2016 include costs related to the acquisition and integration of Southern Company Gas. 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 three months ended September 30, 2017 and 2016 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments. | |
|
Southern Company | |||||||||||||||||||||||||||||||||||||||||||||||||
|
Consolidated Earnings | |||||||||||||||||||||||||||||||||||||||||||||||||
|
As Reported | |||||||||||||||||||||||||||||||||||||||||||||||||
|
(In Millions of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
Year-to-Date September | ||||||||||||||||||||||||||||||||||||||||||||||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | ||||||||||||||||||||||||||||||||||||||||||||
|
Income Account- |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Retail Electric Revenues- |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Fuel |
$ |
1,185 |
$ |
1,296 |
$ |
(111) |
$ |
3,130 |
$ |
3,169 |
$ |
(39) |
|||||||||||||||||||||||||||||||||||||
|
Non-Fuel |
3,430 |
3,512 |
(82) |
8,656 |
8,763 |
(107) |
|||||||||||||||||||||||||||||||||||||||||||
|
Wholesale Electric Revenues |
718 |
613 |
105 |
1,867 |
1,455 |
412 |
|||||||||||||||||||||||||||||||||||||||||||
|
Other Electric Revenues |
168 |
181 |
(13) |
510 |
529 |
(19) |
|||||||||||||||||||||||||||||||||||||||||||
|
Natural Gas Revenues |
532 |
518 |
14 |
2,746 |
518 |
2,228 |
|||||||||||||||||||||||||||||||||||||||||||
|
Other Revenues |
168 |
144 |
24 |
494 |
281 |
213 |
|||||||||||||||||||||||||||||||||||||||||||
|
Total Revenues |
6,201 |
6,264 |
(63) |
17,403 |
14,715 |
2,688 |
|||||||||||||||||||||||||||||||||||||||||||
|
Fuel and Purchased Power |
1,541 |
1,627 |
(86) |
4,018 |
3,915 |
103 |
|||||||||||||||||||||||||||||||||||||||||||
|
Cost of Natural Gas |
134 |
133 |
1 |
1,085 |
133 |
952 |
|||||||||||||||||||||||||||||||||||||||||||
|
Cost of Other Sales |
90 |
84 |
6 |
293 |
161 |
132 |
|||||||||||||||||||||||||||||||||||||||||||
|
Non-Fuel O & M |
1,287 |
1,411 |
(124) |
3,918 |
3,616 |
302 |
|||||||||||||||||||||||||||||||||||||||||||
|
Depreciation and Amortization |
767 |
695 |
72 |
2,236 |
1,805 |
431 |
|||||||||||||||||||||||||||||||||||||||||||
|
Taxes Other Than Income Taxes |
303 |
309 |
(6) |
941 |
821 |
120 |
|||||||||||||||||||||||||||||||||||||||||||
|
Estimated Loss on Kemper IGCC |
34 |
88 |
(54) |
3,155 |
222 |
2,933 |
|||||||||||||||||||||||||||||||||||||||||||
|
Total Operating Expenses |
4,156 |
4,347 |
(191) |
15,646 |
10,673 |
4,973 |
|||||||||||||||||||||||||||||||||||||||||||
|
Operating Income |
2,045 |
1,917 |
128 |
1,757 |
4,042 |
(2,285) |
|||||||||||||||||||||||||||||||||||||||||||
|
Allowance for Equity Funds Used During Construction |
18 |
52 |
(34) |
133 |
150 |
(17) |
|||||||||||||||||||||||||||||||||||||||||||
|
Earnings from Equity Method Investments |
32 |
29 |
3 |
100 |
28 |
72 |
|||||||||||||||||||||||||||||||||||||||||||
|
Interest Expense, Net of Amounts Capitalized |
407 |
374 |
33 |
1,248 |
913 |
335 |
|||||||||||||||||||||||||||||||||||||||||||
|
Other Income (Expense), net |
11 |
(8) |
19 |
2 |
(66) |
68 |
|||||||||||||||||||||||||||||||||||||||||||
|
Income Taxes |
590 |
439 |
151 |
317 |
917 |
(600) |
|||||||||||||||||||||||||||||||||||||||||||
|
Net Income |
1,109 |
1,177 |
(68) |
427 |
2,324 |
(1,897) |
|||||||||||||||||||||||||||||||||||||||||||
|
Less: |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Dividends on Preferred and Preference |
10 |
11 |
(1) |
32 |
34 |
(2) |
|||||||||||||||||||||||||||||||||||||||||||
|
Net Income Attributable to Noncontrolling |
30 |
27 |
3 |
48 |
39 |
9 |
|||||||||||||||||||||||||||||||||||||||||||
|
NET INCOME ATTRIBUTABLE TO SOUTHERN COMPANY |
$ |
1,069 |
$ |
1,139 |
$ |
(70) |
$ |
347 |
$ |
2,251 |
$ |
(1,904) |
|||||||||||||||||||||||||||||||||||||
|
Notes |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
- Certain prior year data may have been reclassified to conform with current year presentation. | |||||||||||||||||||||||||||||||||||||||||||||||||
|
- In connection with the adoption in the fourth quarter 2016 of a new accounting standard for stock compensation, previously reported amounts for income tax expense were reduced by a total of $9 million and $25 million for the three and nine months ended September 30, 2016, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||
|
Southern Company |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Kilowatt-Hour Sales and Customers |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
(In Millions of KWHs) |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended September |
Year-to-Date September |
||||||||||||||||||||||||||||||||||||||||||||||||
|
As Reported |
2017 |
2016 |
Change |
Weather |
2017 |
2016 |
Change |
Weather |
|||||||||||||||||||||||||||||||||||||||||
|
Kilowatt-Hour Sales- |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Total Sales |
58,276 |
58,648 |
(0.6) |
% |
155,626 |
152,625 |
2.0 |
% |
|||||||||||||||||||||||||||||||||||||||||
|
Total Retail Sales- |
44,449 |
47,071 |
(5.6) |
% |
(1.3) |
% |
118,802 |
124,535 |
(4.6) |
% |
(1.0) |
% |
|||||||||||||||||||||||||||||||||||||
|
Residential |
15,499 |
17,213 |
(10.0) |
% |
(2.0) |
% |
38,502 |
42,257 |
(8.9) |
% |
(0.6) |
% |
|||||||||||||||||||||||||||||||||||||
|
Commercial |
14,969 |
15,805 |
(5.3) |
% |
(1.4) |
% |
40,007 |
41,509 |
(3.6) |
% |
(1.1) |
% |
|||||||||||||||||||||||||||||||||||||
|
Industrial |
13,770 |
13,833 |
(0.5) |
% |
(0.5) |
% |
39,656 |
40,102 |
(1.1) |
% |
(1.1) |
% |
|||||||||||||||||||||||||||||||||||||
|
Other |
211 |
220 |
(4.1) |
% |
(3.8) |
% |
637 |
667 |
(4.4) |
% |
(4.2) |
% |
|||||||||||||||||||||||||||||||||||||
|
Total Wholesale Sales |
13,827 |
11,577 |
19.4 |
% |
N/A |
36,824 |
28,090 |
31.1 |
% |
N/A |
|||||||||||||||||||||||||||||||||||||||
|
(In Thousands of Customers) |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Period Ended September |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
2017 |
2016 |
Change |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Regulated Utility Customers- |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Total Utility Customers- |
9,187 |
9,106 |
0.9 |
% |
|||||||||||||||||||||||||||||||||||||||||||||
|
Total Traditional Electric |
4,632 |
4,584 |
1.0 |
% |
|||||||||||||||||||||||||||||||||||||||||||||
|
Southern Company Gas |
4,555 |
4,522 |
0.7 |
% |
|||||||||||||||||||||||||||||||||||||||||||||
|
Southern Company | ||||||||||||||||||||||
|
Financial Overview | ||||||||||||||||||||||
|
As Reported | ||||||||||||||||||||||
|
(In Millions of Dollars) | ||||||||||||||||||||||
|
Three Months Ended September |
Year-to-Date September | |||||||||||||||||||||
|
2017 |
2016 |
% Change |
2017 |
2016 |
% Change | |||||||||||||||||
|
Southern Company – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
6,201 |
$ |
6,264 |
(1.0) |
% |
$ |
17,403 |
$ |
14,715 |
18.3 |
% | ||||||||||
|
Earnings Before Income Taxes |
1,699 |
1,616 |
5.1 |
% |
744 |
3,241 |
(77.0) |
% | ||||||||||||||
|
Net Income Available to Common |
1,069 |
1,139 |
(6.1) |
% |
347 |
2,251 |
(84.6) |
% | ||||||||||||||
|
Alabama Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
1,740 |
$ |
1,785 |
(2.5) |
% |
$ |
4,606 |
$ |
4,561 |
1.0 |
% | ||||||||||
|
Earnings Before Income Taxes |
546 |
575 |
(5.0) |
% |
1,236 |
1,196 |
3.3 |
% | ||||||||||||||
|
Net Income Available to Common |
325 |
352 |
(7.7) |
% |
729 |
721 |
1.1 |
% | ||||||||||||||
|
Georgia Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
2,546 |
$ |
2,698 |
(5.6) |
% |
$ |
6,426 |
$ |
6,621 |
(2.9) |
% | ||||||||||
|
Earnings Before Income Taxes |
934 |
967 |
(3.4) |
% |
1,906 |
1,964 |
(3.0) |
% | ||||||||||||||
|
Net Income Available to Common |
580 |
600 |
(3.3) |
% |
1,188 |
1,217 |
(2.4) |
% | ||||||||||||||
|
Gulf Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
437 |
$ |
436 |
0.2 |
% |
$ |
1,144 |
$ |
1,136 |
0.7 |
% | ||||||||||
|
Earnings Before Income Taxes |
103 |
77 |
33.8 |
% |
199 |
189 |
5.3 |
% | ||||||||||||||
|
Net Income Available to Common |
63 |
45 |
40.0 |
% |
117 |
108 |
8.3 |
% | ||||||||||||||
|
Mississippi Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
341 |
$ |
352 |
(3.1) |
% |
$ |
915 |
$ |
885 |
3.4 |
% | ||||||||||
|
Earnings (Loss) Before Income Taxes |
64 |
24 |
166.7 |
% |
(2,918) |
11 |
N/M |
|||||||||||||||
|
Net Income (Loss) Available to Common |
40 |
26 |
53.8 |
% |
(2,034) |
39 |
N/M |
|||||||||||||||
|
Southern Power – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
618 |
$ |
500 |
23.6 |
% |
$ |
1,597 |
$ |
1,189 |
34.3 |
% | ||||||||||
|
Earnings Before Income Taxes |
115 |
101 |
13.9 |
% |
195 |
187 |
4.3 |
% | ||||||||||||||
|
Net Income Available to Common |
124 |
176 |
(29.5) |
% |
276 |
315 |
(12.4) |
% | ||||||||||||||
|
Southern Company Gas1 – |
||||||||||||||||||||||
|
Operating Revenues |
$ |
565 |
$ |
543 |
4.1 |
% |
$ |
2,841 |
$ |
543 |
N/M |
|||||||||||
|
Earnings Before Income Taxes |
67 |
11 |
N/M |
536 |
11 |
N/M |
||||||||||||||||
|
Net Income Available to Common |
15 |
4 |
N/M |
303 |
4 |
N/M |
||||||||||||||||
|
N/M - not meaningful |
||||||||||||||||||||||
|
Notes |
||||||||||||||||||||||
|
- In connection with the adoption in the fourth quarter 2016 of a new accounting standard for stock compensation, previously reported amounts for income tax expense were reduced by a total of $9 million and $25 million for the three and nine months ended September 30, 2016, respectively. | ||||||||||||||||||||||
|
(1) On July 1, 2016, Southern Company completed the acquisition of Southern Company Gas. | ||||||||||||||||||||||
SOURCE Southern Company