|
Southern Company Reports First Quarter Earnings
PRNewswire
ATLANTA
(NYSE:SO)
ATLANTA, April 29 /PRNewswire-FirstCall/ -- Southern Company today reported first quarter earnings of $125.7 million, or 16 cents a share, compared with $359.2 million, or 47 cents a share, in the same period a year ago. (Logo: http://www.newscom.com/cgi-bin/prnh/20080801/SOCOLOGO ) Earnings for the first quarter included a charge of 26 cents a share related to a settlement agreement with MC Asset Recovery (MCAR) LLC to resolve a lawsuit arising out of the 2003 bankruptcy of Mirant Corp., a Southern Company subsidiary until its 2001 spin-off. Excluding the impact of the MCAR settlement, Southern Company earned 42 cents a share for the first quarter of 2009, compared with 47 cents a share for the same period in 2008. As a result of the recession, electricity sales were negatively impacted, especially industrial sales. Other negative drivers included lower revenues from market-response rates offered to commercial and industrial customers and higher asset depreciation primarily associated with increased investment in environmental, transmission and distribution equipment. These investments help the company produce cleaner energy and maintain reliability. The negative drivers were partially offset by lower operations and maintenance expenses, increased retail rates and revenues associated with the recovery of investments in environmental equipment. "We continue to provide reliable service at competitive prices, and in this struggling economy we are working to drive even greater efficiency while controlling our costs," said CEO David M. Ratcliffe. "We are confident that the long-term viability of the Southeast remains strong. We continue to execute our strategy and maintain our focus on the fundamentals that have made us successful." Revenues for the first quarter of 2009 were $3.67 billion, compared with $3.68 billion in the same period a year ago, a decrease of 0.5 percent. Kilowatt-hour sales to retail customers in Southern Company's four-state service area decreased 6.6 percent in the first quarter, compared with the first quarter of 2008. Residential electricity sales decreased 1.3 percent. Electricity sales to commercial customers decreased 1.3 percent, and industrial sales decreased 16.9 percent. Total energy sales to Southern Company's customers in the Southeast, including wholesale sales, decreased 8.8 percent in the first quarter of 2009 compared with the same period of 2008. In conjunction with this earnings announcement, Southern Company has posted on its Web site detailed financial information on its first quarter 2009 performance. These materials are available at http://investor.southerncompany.com/events.cfm. Southern Company's financial analyst call will be at 1 p.m. Eastern time April 29, at which time Ratcliffe and Chief Financial Officer Paul Bowers will discuss earnings and earnings guidance as well as a general business update. Investors, media and the public may listen to a live Webcast of the call at http://investor.southerncompany.com/events.cfm. A replay of the Webcast will be available at the site for 12 months. With 4.4 million customers and more than 42,000 megawatts of generating capacity, Atlanta-based Southern Company is the premier energy company serving the Southeast. A leading U.S. producer of electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for excellent customer service, high reliability and retail electric prices that are below the national average. Southern Company has been listed the top ranking U.S. electric service provider in customer satisfaction for nine consecutive years by the American Customer Satisfaction Index (ACSI). Visit our Web site at www.southerncompany.com. Cautionary Note 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 economic growth. 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, 2008, and subsequent securities filings, could cause results to differ materially from management expectations as suggested by such forward-looking information: the impact of recent and future federal and state regulatory change, including legislative and regulatory initiatives regarding deregulation and restructuring of the electric utility industry, implementation of the Energy Policy Act of 2005, environmental laws including regulation of water quality and emissions of sulfur, nitrogen, mercury, carbon, soot, or particulate matter and other substances, 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 the pending Environmental Protection Agency civil actions against certain Southern Company subsidiaries, Federal Energy Regulatory Commission matters, Internal Revenue Service audits, and Mirant matters; 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, including those relating to weather, the general economy, population and business growth (and declines), and the effects of energy conservation measures; available sources and costs of fuels; effects of inflation; ability to control costs and avoid cost overruns during the development and construction of facilities; investment performance of Southern Company's employee benefit plans; 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 storm restoration cost recovery; regulatory approvals related to the potential Plant Vogtle expansion, including Georgia Public Service Commission and Nuclear Regulatory Commission approvals; 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; 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 neighboring utilities and other wholesale customers; the direct or indirect effect on Southern Company's business resulting from terrorist incidents and the threat of terrorist incidents; interest rate fluctuations and financial market conditions and the results of financing efforts, including Southern Company's and its subsidiaries' credit ratings; the ability of Southern Company and its subsidiaries to obtain additional generating capacity at competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, hurricanes, droughts, pandemic health events such as an avian influenza, or other similar occurrences; the direct or indirect effects on Southern Company's business resulting from incidents similar to the August 2003 power outage in the Northeast; and the effect of accounting pronouncements issued periodically by standard setting bodies. Southern Company and its subsidiaries expressly disclaim any obligation to update any forward-looking information.
Southern Company
Financial Highlights
(In Millions of Dollars Except Earnings Per Share)
Three Months Ended March
------------------------
2009 2008
---- ----
Consolidated Earnings-As Reported
(See Notes)
Traditional Operating Companies $ 303 $ 342
Southern Power 28 29
---- ----
Total 331 371
Parent Company and Other (205) (12)
---- ----
Net Income-As Reported $ 126 $ 359
==== ====
Basic Earnings Per Share - $ 0.16 $ 0.47
Average Shares Outstanding (in millions) 780 766
End of Period Shares Outstanding (in
millions) 783 768
Three Months Ended March
------------------------
2009 2008
---- ----
Consolidated Earnings-Excluding Items
(See Notes)
Net Income-As Reported $ 126 $ 359
MC Asset Recovery Litigation Settlement 202 -
---- ----
Net Income-Excluding Items $ 328 $ 359
==== ====
Basic Earnings Per Share-Excluding Items $ 0.42 $ 0.47
Significant Factors Impacting EPS
Three Months Ended March
------------------------------
2009 2008 Change
---- ---- ------
Consolidated Earnings Per Share-
As Reported (See Notes) $0.16 $0.47 $(0.31)
Significant Factors:
--------------------
Traditional Operating Companies (0.06)
Southern Power -
Parent Company and Other (0.25)
Additional Shares -
Total-As Reported $(0.31)
Three Months Ended March
------------------------------
2009 2008 Change
---- ---- ------
Consolidated Earnings Per Share-
Excluding Items (See Notes) $0.42 $0.47 $(0.05)
Total-As Reported (0.31)
MC Asset Recovery Litigation
Settlement 0.26
Total-Excluding Items $(0.05)
Notes
-----
- For the three months ended March 31, 2009 and 2008, diluted earnings per
share are not more than 1 cent per share and are not material.
- The charge related to Southern Company's MC Asset Recovery litigation
settlement significantly impacted the presentation of earnings and
earnings per share for the three months ended March 31, 2009, and
significant charges related to the Mirant spin-off are not expected to
occur in the future.
- Certain prior year data has been reclassified to conform with current
year presentation.
- Information contained in this report is subject to audit and
adjustments. Certain classifications may be different from final results
published in the Form 10-Q.
Southern Company
EPS Earnings Analysis
Three Months Ended March 2009
Cents Description
(0.01) Other Operating Revenues
0.01 Non-Fuel O&M
(0.03) Depreciation & Amortization
(0.01) Interest Expense
(0.02) Taxes
($0.06) Total Traditional Operating Companies
0.00 Southern Power
0.01 Parent and Other (excluding the MC Asset Recovery
Litigation Settlement)
($0.05) Total Change in YTD EPS (x-Items)
(0.26) MC Asset Recovery Litigation Settlement
($0.31) Total Change in YTD EPS (As Reported)
Notes
-----
- The charge related to Southern Company's MC Asset Recovery litigation
Settlement significantly impacted the presentation of earnings and
earnings per share for the three months ended March 31, 2009, and
significant charges related to the Mirant spin-off are not expected to
occur in the future.
- Information contained in this report is subject to audit and
adjustments. Certain classifications may be different from final results
published in the Form 10-Q.
Southern Company
Consolidated Earnings
(In Millions of Dollars)
Three Months Ended March
--------------------------------
2009 2008 Change
---- ---- ------
Income Account-
Retail Revenue-
Fuel $1,252 $1,203 $49
Non-Fuel 1,813 1,803 10
Wholesale Revenues 451 514 (63)
Other Electric Revenues 123 130 (7)
Non-regulated Operating Revenues 27 33 (6)
----- ----- -----
Total Revenues 3,666 3,683 (17)
----- ----- -----
Fuel and Purchased Power 1,514 1,545 (31)
Non-fuel O & M 870 897 (27)
MCAR Litigation Settlement 202 - 202
Depreciation and Amortization 390 344 46
Taxes Other Than Income Taxes 200 189 11
----- ----- -----
Total Operating Expenses 3,176 2,975 201
----- ----- -----
Operating Income 490 708 (218)
Other Income, net 45 62 (17)
Interest Charges 226 217 9
Income Taxes 167 178 (11)
----- ----- -----
Net Income 142 375 (233)
Dividends on Preferred and
Preference Stock of 16 16 -
Subsidiaries
NET INCOME AFTER DIVIDENDS ON
PREFERRED ----- ----- -----
AND PREFERENCE STOCK (See Notes) $126 $359 $(233)
===== ===== =====
Kilowatt-Hour Sales
(In Millions of KWHs)
Three Months Ended March
--------------------------------
Weather
Adjusted
As Reported (See Notes) 2009 2008 Change Change
---- ---- ------ ------
Kilowatt-Hour Sales-
Total Sales 43,935 48,166 -8.8%
Total Retail Sales- 36,043 38,576 -6.6% -6.3%
Residential 12,544 12,703 -1.3% -0.4%
Commercial 12,337 12,505 -1.3% -1.3%
Industrial 10,921 13,135 -16.9% -16.9%
Other 241 233 3.6% 3.8%
Total Wholesale Sales 7,892 9,590 -17.7% N/A
Notes
-----
- Certain prior year data has been reclassified to conform with current
year presentation.
- Information contained in this report is subject to audit and
adjustments. Certain classifications may be different from final results
published in the Form 10-Q.
Southern Company
Financial Overview
(In Millions of Dollars)
Three Months Ended March
--------------------------------
2009 2008 % Change
---- ---- --------
Consolidated -
Operating Revenues $3,666 $3,683 -0.5%
Earnings Before Income Taxes 309 553 -44.2%
Net Income Available to Common 126 359 -65.0%
Alabama Power -
Operating Revenues $1,340 $1,337 0.2%
Earnings Before Income Taxes 241 213 13.0%
Net Income Available to Common 146 130 12.4%
Georgia Power -
Operating Revenues $1,766 $1,865 -5.3%
Earnings Before Income Taxes 189 264 -28.4%
Net Income Available to Common 122 176 -30.6%
Gulf Power -
Operating Revenues $284 $312 -8.7%
Earnings Before Income Taxes 26 31 -18.4%
Net Income Available to Common 17 20 -15.3%
Mississippi Power -
Operating Revenues $269 $285 -5.8%
Earnings Before Income Taxes 29 26 10.0%
Net Income Available to Common 18 16 11.1%
Southern Power -
Operating Revenues $232 $216 7.4%
Earnings Before Income Taxes 45 46 -1.5%
Net Income Available to Common 28 29 -3.7%
Notes
-----
- Certain prior year data has been reclassified to conform with current
year presentation.
- Information contained in this report is subject to audit and
adjustments. Certain classifications may be different from final results
published in the Form 10-Q.
Photo: http://www.newscom.com/cgi-bin/prnh/20080801/SOCOLOGOhttp://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com SOURCE: Southern Company Web site: http://www.southerncompany.com/ |