News Center Stories

Novemeber 7, 2018

Southern Company reports third-quarter 2018 earnings

Southern Company today reported third-quarter 2018 earnings of $1.16 billion, or $1.14 per share, compared with earnings of $1.07 billion, or $1.07 per share, in the third quarter of 2017.  For the nine months ended September 30, 2018, Southern Company reported earnings of $1.95 billion, or $1.92 per share, compared with earnings of $347 million, or 35 cents per share, for the same period in 2017.

Excluding the items described in the "Net Income – Excluding Items" table below, Southern Company earned $1.16 billion, or $1.14 per share, during the third quarter of 2018, compared with $1.13 billion, or $1.12 per share, during the third quarter of 2017.  For the nine months ended September 30, 2018, excluding these items, Southern Company earned $2.87 billion, or $2.83 per share, compared with earnings of $2.51 billion, or $2.51 per share, for the same period in 2017.

Non-GAAP Financial Measures

Three Months Ended September

 

Year-to-Date September

Net Income - Excluding Items (in millions)

2018

2017

 

2018

2017

Net Income - As Reported

$1,164

$1,069

 

$1,948

$347

Estimated Loss on Plants Under Construction

2

34

 

1,108

3,155

  Tax Impact

(1)

(13)

 

(282)

(951)

Loss on Plant Scherer Unit 3

-

-

 

-

33

  Tax Impact

-

-

 

-

(13)

Acquisition, Disposition, and Integration Impacts

(326)

6

 

(93)

19

       Tax Impact

306

7

 

305

2

Wholesale Gas Services

24

38

 

(83)

(48)

       Tax Impact

(6)

(15)

 

18

20

Litigation Settlement

-

-

 

(24)

-

       Tax Impact

-

-

 

6

-

Earnings Guidance Comparability Items:

         

Equity Return Related to Kemper IGCC

    Schedule Extension

-

-

 

-

(47)

       Tax Impact

-

-

 

-

(9)

Adoption of Tax Reform

-

-

 

(31)

-

Net Income – Excluding Items

$1,163

$1,126

 

$2,872

$2,508

       Average Shares Outstanding – (in millions)

1,023

1,003

 

1,016

998

Basic Earnings Per Share – Excluding Items

$1.14

$1.12

 

$2.83

$2.51

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 of 2018 were positively influenced by effects of constructive regulatory outcomes and weather at our state-regulated utilities. These impacts were partially offset by increases in depreciation and amortization, as well as interest expense.

In addition to its solid performance in the third quarter, the company has also delivered significant benefits to customers as a result of tax reform, while continuing to improve the financial profile of its state-regulated businesses.

"Southern Company executed exceptionally well in the third quarter," said Chairman, President and CEO Thomas A. Fanning. "This was demonstrated not only in the performance of our premier, state-regulated electric franchise operations, but also in the remarkable work of our people to restore power in northwest Florida and in parts of Georgia and Alabama following Hurricane Michael in early October," added Fanning. "While we are always pleased to report solid financial performance, our primary mission is bigger than our bottom line, and I believe this has never been more evident than during our response to this catastrophic weather event. The restoration of power to these areas was achieved in what we believe to be record time for an undertaking of such scope."

Third quarter 2018 operating revenues were $6.16 billion, compared with $6.20 billion for the third quarter of 2017, a decrease of 0.7 percent.  For the nine months ended September 30, 2018, operating revenues were $18.16 billion, compared with $17.40 billion for the corresponding period in 2017, an increase of 4.3 percent.

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 8 a.m. Eastern Time today, during which Fanning and Chief Financial Officer Andrew W. Evans 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, as of December 31, 2017. We operate nearly 200,000 miles of electric transmission and distribution lines and more than 80,000 miles of natural gas pipeline, as of December 31, 2017. The company provides clean, safe, reliable and affordable energy through electric operating companies in four states, natural gas distribution companies in four states, a competitive generation company serving wholesale customers in 11 states 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 creating new products and services for the benefit of customers. We are building the future of energy by developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. 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 and the number one Company for Progress by DiversityInc, and designated as one of America's Best Employers by Forbes magazine. Visit our website at www.southerncompany.com.

 

Southern Company

Financial Highlights

(In Millions of Dollars Except Earnings Per Share)

                 
   

Three Months Ended
September

 

Year-to-Date

September

Net Income–As Reported (See Notes)

 

2018

 

2017

 

2018

 

2017

                 

  Traditional Electric Operating Companies

 

$

1,148

   

$

1,008

   

$

1,711

   

$

 

  Southern Power

 

92

   

124

   

235

   

276

 

Southern Company Gas

 

46

   

15

   

294

   

303

 

  Total

 

1,286

   

1,147

   

2,240

   

579

 

  Parent Company and Other

 

(122)

   

(78)

   

(292)

   

(232)

 

  Net Income–As Reported

 

$

1,164

   

$

1,069

   

$

1,948

   

$

347

 
                 

  Basic Earnings Per Share1

 

$

1.14

   

$

1.07

   

$

1.92

   

$

0.35

 
                 

  Average Shares Outstanding (in millions)

 

1,023

   

1,003

   

1,016

   

998

 

  End of Period Shares Outstanding (in millions)

         

1,029

   

1,004

 
                 

Non-GAAP Financial Measures

 

Three Months Ended
September

 

Year-to-Date

September

Net Income–Excluding Items (See Notes)

 

2018

 

2017

 

2018

 

2017

                 

  Net Income–As Reported

 

$

1,164

   

$

1,069

   

$

1,948

   

$

347

 

Estimated Loss on Plants Under Construction2

 

2

   

34

   

1,108

   

3,155

 

Tax Impact

 

(1)

   

(13)

   

(282)

   

(951)

 

Loss on Plant Scherer Unit 33

 

   

   

   

33

 

Tax Impact

 

   

   

   

(13)

 

Acquisition, Disposition, and Integration Impacts4

 

(326)

   

6

   

(93)

   

19

 

Tax Impact

 

306

   

7

   

305

   

2

 

Wholesale Gas Services5

 

24

   

38

   

(83)

   

(48)

 

Tax Impact

 

(6)

   

(15)

   

18

   

20

 

Litigation Settlement6

 

   

   

(24)

   

 

Tax Impact

 

   

   

6

   

 

Earnings Guidance Comparability Items:

               

Equity Return Related to Kemper IGCC

   Schedule Extension7

 

   

   

   

(47)

 

Tax Impact

 

   

   

   

(9)

 

Adoption of Tax Reform8

 

   

   

(31)

   

 

  Net Income–Excluding Items

 

$

1,163

   

$

1,126

   

$

2,872

   

$

2,508

 
                 

  Basic Earnings Per Share–Excluding Items

 

$

1.14

   

$

1.12

   

$

2.83

   

$

2.51

 
                 

-See Notes on the following page.

 

Southern Company

Financial Highlights

                 

Notes

               
 

(1) For the three and nine months ended September 30, 2018 and 2017, dilution does not change basic earnings per share by more than 1 cent and is not material.

(2) Earnings for the three and nine months ended September 30, 2018 and 2017 include charges and associated legal expenses related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Earnings for the nine months ended September 30, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. These charges significantly impacted the presentation of earnings and earnings per share. Additional pre-tax cancellation costs of up to $30 million for Mississippi Power Company's Kemper IGCC may occur through the first half of 2020. Further charges for Georgia Power Company's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.

(3) 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 its 2017 retail rate case settlement. Further charges are not expected.

(4) Earnings for three months ended September 30, 2018 primarily include: (i) a combined $351 million pre-tax ($38 million after-tax) gain on the sales of Elizabethtown Gas, Elkton Gas and Florida City Gas; and (ii) $25 million pre-tax ($18 million after-tax) of other acquisition, integration and disposition costs. Earnings for the nine months ended September 30, 2018 primarily include: (i) a net combined $317 million pre-tax gain ($35 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas and Pivotal Home Solutions; (ii) a $42 million (pre-tax and after-tax) goodwill impairment charge associated with the sale of Pivotal Home Solutions; (iii) a $119 million pre-tax ($89 million after-tax) impairment charge associated with the disposition of Plants Stanton and Oleander; and (iv) $63 million pre-tax ($46 million after-tax) of other acquisition, integration and disposition costs. The gain/loss calculations for the four Southern Company Gas dispositions are expected to be finalized in the fourth quarter 2018. Further costs are expected to continue to occur prior to the expected closings of pending dispositions in the first quarter of 2019; however, the amount of such expenditures is uncertain. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.

(5) Earnings for the three and nine months ended September 30, 2018 and 2017 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.

(6) Earnings for the nine months ended September 30, 2018 include the settlement proceeds of Mississippi Power Company's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Further proceeds are not expected.

(7) Earnings for the nine months ended September 30, 2017 include allowance for funds used during construction (AFUDC) equity as a result of extending the Kemper IGCC construction schedule beyond November 30, 2016, as assumed when Southern Company issued its 2017 guidance. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's 2017 performance. AFUDC equity ceased in connection with the project's suspension in June 2017.

(8) Earnings for the nine months ended September 30, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation, which was signed into law on December 22, 2017. During this period, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are expected until Southern Company's 2017 federal income tax return is complete and provisional estimates are actualized during the measurement period ending December 31, 2018. Southern Company believes presentation of earnings per share excluding these amounts 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
September

 

Year-to-Date
September

 
   

2018

 

2017

 

Change

 

2018

 

2017

 

Change

 

Earnings Per Share–

                         

As Reported(See Notes)

 

$

1.14

   

$

1.07

   

$

0.07

   

$

1.92

   

$

0.35

   

$

1.57

   
                           

  Significant Factors:

                         

  Traditional Electric Operating Companies

         

$

0.14

           

$

1.71

   

 Southern Power

         

(0.03)

           

(0.04)

   

 Southern Company Gas

         

0.03

           

(0.01)

   

 Parent Company and Other

         

(0.05)

           

(0.06)

   

 Increase in Shares

         

(0.02)

           

(0.03)

   

  Total–As Reported

         

$

0.07

           

$

1.57

   
                           
   

Three Months Ended
September

 

Year-to-Date
September

 

Non-GAAP Financial Measures

 

2018

 

2017

 

Change

 

2018

 

2017

 

Change

 

Earnings Per Share–

                         

Excluding Items (See Notes)

 

$

1.14

   

$

1.12

   

$

0.02

   

$

2.83

   

$

2.51

   

$

0.32

   
                           

  Total–As Reported

         

$

0.07

           

$

1.57

   

 Estimated Loss on Plants Under Construction2

         

(0.02)

           

(1.34)

   

 Loss on Plant Scherer Unit 33

         

           

(0.02)

   

 Acquisition, Disposition, and Integration

    Impacts4

         

(0.03)

           

0.19

   

 Wholesale Gas Services5

         

           

(0.03)

   

 Litigation Settlement6

         

           

(0.02)

   

 Adoption of Tax Reform7

         

           

(0.03)

   

  Total–Excluding Items

         

$

0.02

           

$

0.32

   
                           

- See Notes on the following page.

 
                                                                 

 

Southern Company

 

Significant Factors Impacting EPS

 
                           

Notes

                         
   

(1) For the three and nine months ended September 30, 2018 and 2017, dilution does not change basic earnings per share by more than 1 cent and is not material.

 

(2) Earnings for the three and nine months ended September 30, 2018 and 2017 include charges and associated legal expenses related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Earnings for the nine months ended September 30, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. These charges significantly impacted the presentation of earnings and earnings per share. Additional pre-tax cancellation costs of up to $30 million for Mississippi Power Company's Kemper IGCC may occur through the first half of 2020. Further charges for Georgia Power Company's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.


Earnings for the nine months ended September 30, 2017 include allowance for funds used during construction (AFUDC) equity as a result of extending the Kemper IGCC construction schedule beyond November 30, 2016, as assumed when Southern Company issued its 2017 guidance. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's 2017 performance. AFUDC equity ceased in connection with the project's suspension in June 2017.

 

(3) 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 its 2017 retail rate case settlement. Further charges are not expected.

 

(4) Earnings for three months ended September 30, 2018 primarily include: (i) a combined $351 million pre-tax ($38 million after-tax) gain on the sales of Elizabethtown Gas, Elkton Gas and Florida City Gas; and (ii) $25 million pre-tax ($18 million after-tax) of other acquisition, integration and disposition costs. Earnings for the nine months ended September 30, 2018 primarily include: (i) a net combined $317 million pre-tax gain ($35 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas and Pivotal Home Solutions; (ii) a $42 million (pre-tax and after-tax) goodwill impairment charge associated with the sale of Pivotal Home Solutions; (iii) a $119 million pre-tax ($89 million after-tax) impairment charge associated with the disposition of Plants Stanton and Oleander; and (iv) $63 million pre-tax ($46 million after-tax) of other acquisition, integration and disposition costs. The gain/loss calculations for the four Southern Company Gas dispositions are expected to be finalized in the fourth quarter 2018. Further costs are expected to continue to occur prior to the expected closings of pending dispositions in the first quarter of 2019; however, the amount of such expenditures is uncertain. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.

 

(5) Earnings for the three and nine months ended September 30, 2018 and 2017 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.

 

(6) Earnings for the nine months ended September 30, 2018 include the settlement proceeds of Mississippi Power Company's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Further proceeds are not expected.

 

(7) Earnings for the nine months ended September 30, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation, which was signed into law on December 22, 2017. During this period, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are expected until Southern Company's 2017 federal income tax return is complete and provisional estimates are actualized during the measurement period ending December 31, 2018. Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also uses such measures to evaluate Southern Company's performance.

 

 

 

 

Southern Company

EPS Earnings Analysis

 
         

Description

 

Three Months Ended 
September
2018 vs. 2017

 

Year-to-Date
September  
2018 vs. 2017

         

Retail Sales

 

$0.02

 

$0.04

         

Retail Revenue Impacts, Excluding Tax Reform Changes

 

0.01

 

0.02

         

Weather

 

0.05

 

0.18

         

Other Operating Revenues

 

0.01

 

         

Purchased Power Capacity Expense

 

 

0.01

         

Depreciation and Amortization

 

(0.02)

 

(0.06)

         

Taxes Other Than Income Taxes

 

(0.01)

 

(0.02)

         

Gain on Dispositions, Net

 

 

(0.01)

         

Interest Expense

 

(0.02)

 

(0.03)

         

Other Income and Deductions

 

0.01

 

0.01

         

Impacts of Tax Reform (Ongoing Basis), Net of Amounts 
to be Returned to Customers

 

0.10

 

0.19

         

Income Taxes, Excluding Tax Reform

 

(0.03)

 

(0.03)

         

Dividends on Preferred and Preference Stock

 

 

0.02

         

Total Traditional Electric Operating Companies

 

$0.12

 

$0.32

         

Southern Power

 

(0.03)

 

0.04

         

Southern Company Gas

 

(0.01)

 

0.06

         

Parent and Other

 

(0.04)

 

(0.05)

         

Increase in Shares

 

(0.02)

 

(0.05)

         

Total Change in EPS (Excluding Items)

 

$0.02

 

$0.32

         

Estimated Loss on Plants Under Construction1

 

0.02

 

1.34

         

Loss on Plant Scherer Unit 32

 

 

0.02

         

Acquisition, Disposition, and Integration Impacts3

 

0.03

 

(0.19)

         

Wholesale Gas Services4

 

 

0.03

         

Litigation Settlement5

 

 

0.02

         

Adoption of Tax Reform6

 

 

0.03

         

Total Change in EPS (As Reported)

 

$0.07

 

$1.57

         

- See Notes on the following page.

                                 

 

Southern Company

EPS Earnings Analysis

Three and Nine Months Ended September 2018 vs. September 2017

Notes

 

(1) Earnings for the three and nine months ended September 30, 2018 and 2017 include charges and associated legal expenses related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Earnings for the nine months ended September 30, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. These charges significantly impacted the presentation of earnings and earnings per share. Additional pre-tax cancellation costs of up to $30 million for Mississippi Power Company's Kemper IGCC may occur through the first half of 2020. Further charges for Georgia Power Company's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.


Earnings for the nine months ended September 30, 2017 include allowance for funds used during construction (AFUDC) equity as a result of extending the Kemper IGCC construction schedule beyond November 30, 2016, as assumed when Southern Company issued its 2017 guidance. As a result, Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also used such measures to evaluate Southern Company's 2017 performance. AFUDC equity ceased in connection with the project's suspension in June 2017.

 

(2) 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 its 2017 retail rate case settlement. Further charges are not expected.

 

(3) Earnings for three months ended September 30, 2018 primarily include: (i) a combined $351 million pre-tax ($38 million after-tax) gain on the sales of Elizabethtown Gas, Elkton Gas and Florida City Gas; and (ii) $25 million pre-tax ($18 million after-tax) of other acquisition, integration and disposition costs. Earnings for the nine months ended September 30, 2018 primarily include: (i) a net combined $317 million pre-tax gain ($35 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas and Pivotal Home Solutions; (ii) a $42 million (pre-tax and after-tax) goodwill impairment charge associated with the sale of Pivotal Home Solutions; (iii) a $119 million pre-tax ($89 million after-tax) impairment charge associated with the disposition of Plants Stanton and Oleander; and (iv) $63 million pre-tax ($46 million after-tax) of other acquisition, integration and disposition costs. The gain/loss calculations for the four Southern Company Gas dispositions are expected to be finalized in the fourth quarter 2018. Further costs are expected to continue to occur prior to the expected closings of pending dispositions in the first quarter of 2019; however, the amount of such expenditures is uncertain. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.

 

(4) Earnings for the three and nine months ended September 30, 2018 and 2017 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.

 

(5) Earnings for the nine months ended September 30, 2018 include the settlement proceeds of Mississippi Power Company's claim for lost revenue resulting from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Further proceeds are not expected.

 

(6) Earnings for the nine months ended September 30, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation, which was signed into law on December 22, 2017. During this period, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are expected until Southern Company's 2017 federal income tax return is complete and provisional estimates are actualized during the measurement period ending December 31, 2018. Southern Company believes presentation of earnings per share excluding these amounts provides investors with information comparable to guidance. Management also uses such measures to evaluate Southern Company's performance.

 

 

Southern Company

 

Consolidated Earnings

 

As Reported

 

(In Millions of Dollars)

 
   

Three Months Ended 
September

 

Year-to-Date

 September

 
   

2018

 

2017

 

Change

 

2018

 

2017

 

Change

 

Income Account-

                         

Retail Electric Revenues-

                         

Fuel

 

$

1,222

   

$

1,185

   

$

37

   

$

3,271

   

$

3,130

   

$

141

   

Non-Fuel

 

3,383

   

3,430

   

(47)

   

8,642

   

8,656

   

(14)

   

Wholesale Electric Revenues

 

693

   

718

   

(25)

   

1,923

   

1,867

   

56

   

Other Electric Revenues

 

170

   

168

   

2

   

509

   

510

   

(1)

   

Natural Gas Revenues

 

492

   

532

   

(40)

   

2,806

   

2,746

   

60

   

Other Revenues

 

199

   

168

   

31

   

1,007

   

494

   

513

   

Total Revenues

 

6,159

   

6,201

   

(42)

   

18,158

   

17,403

   

755

   

Fuel and Purchased Power

 

1,567

   

1,541

   

26

   

4,274

   

4,018

   

256

   

Cost of Natural Gas

 

104

   

134

   

(30)

   

1,053

   

1,085

   

(32)

   

Cost of Other Sales

 

120

   

90

   

30

   

688

   

293

   

395

   

Non-Fuel O & M

 

1,404

   

1,341

   

63

   

4,217

   

4,100

   

117

   

Depreciation and Amortization

 

787

   

767

   

20

   

2,338

   

2,236

   

102

   

Taxes Other Than Income Taxes

 

319

   

303

   

16

   

990

   

941

   

49

   

Estimated Loss on Plants Under Construction

 

1

   

34

   

(33)

   

1,105

   

3,155

   

(2,050)

   

Gain on Dispositions, net

 

(353)

   

   

(353)

   

(317)

   

(19)

   

(298)

   

Impairment Charges

 

36

   

   

36

   

197

   

   

197

   

Total Operating Expenses

 

3,985

   

4,210

   

(225)

   

14,545

   

15,809

   

(1,264)

   

Operating Income

 

2,174

   

1,991

   

183

   

3,613

   

1,594

   

2,019

   

Allowance for Equity Funds Used During 
Construction

 

36

   

18

   

18

   

99

   

133

   

(34)

   

Earnings from Equity Method Investments

 

36

   

32

   

4

   

108

   

100

   

8

   

Interest Expense, Net of Amounts Capitalized

 

458

   

407

   

51

   

1,386

   

1,248

   

138

   

Other Income (Expense), net

 

57

   

65

   

(8)

   

195

   

165

   

30

   

Income Taxes

 

623

   

590

   

33

   

598

   

317

   

281

   

Net Income

 

1,222

   

1,109

   

113

   

2,031

   

427

   

1,604

   

Less:

                         

Dividends on Preferred and Preference Stock 
of Subsidiaries

 

4

   

10

   

(6)

   

12

   

32

   

(20)

   

Net Income Attributable to Noncontrolling 
Interests

 

54

   

30

   

24

   

71

   

48

   

23

   

NET INCOME ATTRIBUTABLE TO 
SOUTHERN COMPANY

 

$

1,164

   

$

1,069

   

$

95

   

$

1,948

   

$

347

   

$

1,601

   

Notes

                         

- Certain prior year data may have been reclassified to conform with current year presentation.

 

 

 

 

 

Southern Company

 
   

Kilowatt-Hour Sales and Customers

 

(In Millions of KWHs)

 
                                   
   

Three Months Ended September

 

Year-to-Date September

 

As Reported

 

2018

 

2017

 

Change

 

Weather 
Adjusted 
Change

 

2018

 

2017

 

Change

 

Weather 
Adjusted 
Change

 

Kilowatt-Hour Sales-

                                 

Total Sales

 

59,501

   

58,276

   

2.1

%

     

162,605

   

155,626

   

4.5

%

     
                                   

Total Retail Sales-

 

46,195

   

44,449

   

3.9

%

 

1.4

%

 

124,209

   

118,802

   

4.6

%

 

1.1

%

 

Residential

 

16,458

   

15,499

   

6.2

%

 

1.2

%

 

42,115

   

38,502

   

9.4

%

 

0.8

%

 

Commercial

 

15,445

   

14,969

   

3.2

%

 

0.8

%

 

41,105

   

40,007

   

2.7

%

 

0.6

%

 

Industrial

 

14,097

   

13,770

   

2.4

%

 

2.4

%

 

40,392

   

39,656

   

1.9

%

 

1.9

%

 

Other

 

195

   

211

   

(7.7)

%

 

(7.9)

%

 

597

   

637

   

(6.3)

%

 

(6.5)

%

 
                                   

Total Wholesale Sales

 

13,306

   

13,827

   

(3.8)

%

 

N/A

 

38,396

   

36,824

   

4.3

%

 

N/A

 
                                   
                                   
                                   

(In Thousands of Customers)

 
                                   
                   

Period Ended September

     
                   

2018

 

2017

 

Change

     

Regulated Utility Customers-

                         

Total Utility Customers-

         

8,856

   

9,187

   

(3.6)

%

     

Total Traditional Electric

         

4,679

   

4,632

   

1.0

%

     

Southern Company Gas1

         

4,177

   

4,555

   

(8.3)

%

     
                                   
                                   
                                   
                                   

Notes

                                 
                                   

(1) Includes total customers of approximately 404,000 at September 30, 2017 related to Elizabethtown Gas, Elkton Gas, and Florida City Gas, which were sold in July 2018.

 
                                                                                                 

 

 

Southern Company

Financial Overview

As Reported

(In Millions of Dollars)

                         
   

Three Months Ended 
September

 

Year-to-Date

September

   

2018

 

2017

 

% Change

 

2018

 

2017

 

% Change

Southern Company –

                       

Operating Revenues

 

$

6,159

   

$

6,201

   

(0.7)

%

 

$

18,158

   

$

17,403

   

4.3

%

Earnings Before Income Taxes

 

1,845

   

1,699

   

8.6

%

 

2,629

   

744

   

N/M

Net Income Available to Common

 

1,164

   

1,069

   

8.9

%

 

1,948

   

347

   

N/M

                         

Alabama Power –

                       

Operating Revenues

 

$

1,740

   

$

1,740

   

%

 

$

4,716

   

$

4,606

   

2.4

%

Earnings Before Income Taxes

 

504

   

546

   

(7.7)

%

 

1,140

   

1,236

   

(7.8)

%

Net Income Available to Common

 

373

   

325

   

14.8

%

 

857

   

729

   

17.6

%

                         

Georgia Power –

                       

Operating Revenues

 

$

2,593

   

$

2,546

   

1.8

%

 

$

6,601

   

$

6,426

   

2.7

%

Earnings Before Income Taxes

 

926

   

934

   

(0.9)

%

 

833

   

1,906

   

(56.3)

%

Net Income Available to Common

 

664

   

580

   

14.5

%

 

621

   

1,188

   

(47.7)

%

                         

Gulf Power –

                       

Operating Revenues

 

$

414

   

$

437

   

(5.3)

%

 

$

1,106

   

$

1,144

   

(3.3)

%

Earnings Before Income Taxes

 

59

   

103

   

(42.7)

%

 

146

   

199

   

(26.6)

%

Net Income Available to Common

 

63

   

63

   

%

 

147

   

117

   

25.6

%

                         

Mississippi Power –

                       

Operating Revenues

 

$

358

   

$

341

   

5.0

%

 

$

956

   

$

915

   

4.5

%

Earnings (Loss) Before Income Taxes

 

61

   

64

   

(4.7)

%

 

110

   

(2,918)

   

N/M

Net Income (Loss) Available to Common

 

47

   

40

   

17.5

%

 

86

   

(2,034)

   

N/M

                         

Southern Power –

                       

Operating Revenues

 

$

635

   

$

618

   

2.8

%

 

$

1,699

   

$

1,597

   

6.4

%

Earnings Before Income Taxes

 

108

   

115

   

(6.1)

%

 

96

   

195

   

(50.8)

%

Net Income Available to Common

 

92

   

124

   

(25.8)

%

 

235

   

276

   

(14.9)

%

                         

Southern Company Gas –

                       

Operating Revenues

 

$

492

   

$

565

   

(12.9)

%

 

$

2,861

   

$

2,841

   

0.7

%

Earnings Before Income Taxes

 

362

   

67

   

N/M

 

769

   

536

   

43.5

%

Net Income Available to Common

 

46

   

15

   

N/M

 

294

   

303

   

(3.0)

%

                         

N/M - not meaningful

                       
                         

Notes

                       
                         

- See Financial Highlights pages for discussion of certain significant items occurring during the periods presented.

 

 

 

 

SOURCE Southern Company

For further information: Media Contact: Schuyler Baehman, 404-506-5333 or 1-866-506-5333, www.southerncompany.com; Investor Relations Contact: Scott Gammill, 404-506-0901, sagammil@southernco.com