ATLANTA, Feb. 22, 2017 /PRNewswire/ -- Southern
Company today reported fourth-quarter 2016 earnings of $197 million, or 20
cents per share, compared with earnings of $271 million, or 30
cents per share, in the fourth quarter of 2015.
Southern Company also reported full year 2016 earnings of
$2.45 billion, or $2.57 per share, compared with earnings of
$2.37 billion, or $2.60 per share, for the same period in 2015.
Excluding the items described in the "Net Income – Excluding
Items" table below, Southern Company earned $235 million, or 24
cents per share, during the fourth quarter of 2016, compared
with $403 million, or 44 cents per share, during the fourth quarter of
2015. For the full-year 2016, excluding these items, Southern
Company earned $2.7 billion, or
$2.89 per share, compared with
earnings of $2.6 billion, or
$2.89 per share, for the same period
in 2015.
|
Non-GAAP Financial
Measures
|
Three Months Ended
December
|
|
Year-to-Date
December
|
|
Net Income -
Excluding Items (in millions)
|
2016
|
2015
|
|
2016
|
2015
|
|
Net Income - As
Reported
|
$197
|
$271
|
|
$2,448
|
$2,367
|
|
Estimated Loss on
Kemper IGCC
|
206
|
183
|
|
428
|
365
|
|
Tax
Impact
|
(79)
|
(70)
|
|
(164)
|
(139)
|
|
Acquisition and
Integration Costs
|
12
|
25
|
|
120
|
41
|
|
Tax
Impact
|
(4)
|
(6)
|
|
(38)
|
(10)
|
|
Additional MCAR
Settlement Costs
|
-
|
-
|
|
-
|
7
|
|
Tax
Impact
|
-
|
-
|
|
-
|
(3)
|
|
Subtotal
|
$332
|
$403
|
|
$2,794
|
$2,628
|
|
Earnings Guidance
Comparability Items:
|
|
|
|
|
|
|
Equity Return Related
to Kemper IGCC
Schedule Extension
|
(22)
|
-
|
|
(29)
|
-
|
|
Tax
Impact
|
(4)
|
-
|
|
(5)
|
-
|
|
Southern Company Gas
Earnings,
|
(185)
|
-
|
|
(231)
|
-
|
|
net of Acquisition
and Integration Costs
|
|
|
Tax
Impact
|
72
|
-
|
|
90
|
-
|
|
Acquisition Debt
Financing Costs
|
68
|
-
|
|
175
|
-
|
|
Tax
Impact
|
(26)
|
-
|
|
(67)
|
-
|
|
Net Income –
Excluding Items
|
$235
|
$403
|
|
$2,727
|
$2,628
|
|
Adjusted Average
Shares Outstanding –
Acquisition Financing (in millions)
|
964
|
911
|
|
942
|
910
|
|
Basic Earnings Per
Share – Excluding Items
|
$0.24
|
$0.44
|
|
$2.89
|
$2.89
|
NOTE: For more information regarding these non-GAAP adjustments,
see the footnotes accompanying the Financial Highlights page of the
earnings package.
Earnings for the fourth quarter and full year 2016 were
positively influenced by retail revenue effects at Southern
Company's traditional electric operating companies and
weather-related revenue impacts, offset by increased operations and
maintenance costs, increased share issuances and lower customer
usage. Full year 2016 earnings were further positively influenced
by continued success with renewable energy projects at wholesale
subsidiary Southern Power.
"2016 was a year of tremendous accomplishment for Southern
Company," said Chairman, President and CEO Thomas A. Fanning. "The acquisitions of Southern
Company Gas, PowerSecure and a 50 percent equity interest in
Southern Natural Gas have served to lengthen and strengthen our
low-risk, customer-focused business model and are expected to
further support our ability to deliver regular, predictable and
sustainable long-term earnings and dividend growth."
Fourth quarter 2016 operating revenues were $5.18 billion, compared with $3.57 billion for the fourth quarter of 2015, an
increase of 45.2 percent. Southern Company Gas accounted for
$1.11 billion of the increase in
operating revenues for the fourth quarter of 2016. Operating
revenues for the full year 2016 were $19.90
billion, compared with $17.49
billion for the same period in 2015, a 13.8 percent
increase. Southern Company Gas accounted for $1.65 billion of the increase in operating
revenues for the full year 2016.
Southern Company's fourth quarter earnings slides with
supplemental financial information, including its earnings guidance
for 2017, are available at http://investor.southerncompany.com.
Southern Company's financial analyst call will begin at
1 p.m. Eastern Time today, during
which Fanning and Chief Financial Officer Art P. Beattie will discuss earnings and provide
a general business update. Investors, media and the public may
listen to a live webcast of the call and view associated slides at
http://investor.southerncompany.com/webcasts. A replay of the
webcast will be available on the site for 12 months.
About Southern Company
Southern Company (NYSE: SO) is America's premier energy company,
with 44,000 megawatts of generating capacity and 1,500 billion
cubic feet of combined natural gas consumption and throughput
volume serving 9 million electric and gas utility customers through
its subsidiaries. The company provides clean, safe, reliable and
affordable energy through electric utilities in four states,
natural gas distribution utilities in seven states, a competitive
generation company serving wholesale customers across America and a
nationally recognized provider of customized energy solutions, as
well as fiber optics and wireless communications. Southern Company
brands are known for excellent customer service, high reliability
and affordable prices that are below the national average. Through
an industry-leading commitment to innovation, Southern Company and
its subsidiaries are inventing America's energy future by
developing the full portfolio of energy resources, including
carbon-free nuclear, 21st century coal, natural gas,
renewables and energy efficiency, and creating new products and
services for the benefit of customers. Southern Company has
been named by the U.S. Department of Defense and G.I. Jobs magazine as a top military employer,
recognized among the Top 50 Companies for Diversity by
DiversityInc, listed by Black Enterprise magazine as one of the 40
Best Companies for Diversity and designated a Top Employer for
Hispanics by Hispanic Network. The company has earned a National
Award of Nuclear Science and History from the National Atomic
Museum Foundation for its leadership and commitment to nuclear
development and is continually ranked among the top utilities in
Fortune's annual World's Most Admired Electric and Gas
Utility rankings. Visit our website at
www.southerncompany.com.
Cautionary Notes Regarding Forward-Looking
Statements:
Certain information contained in this release is
forward-looking information based on current expectations and plans
that involve risks and uncertainties. Forward-looking information
includes, among other things, statements concerning expected
earnings and dividend 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, 2016, and
subsequent securities filings, could cause actual results to differ
materially from management expectations as suggested by such
forward-looking information: the impact of recent and future
federal and state regulatory changes, including environmental laws
regulating emissions, discharges, and disposal to air, water, and
land, and also changes in tax and other laws and regulations to
which Southern Company and its subsidiaries are subject, including
potential tax reform, as well as changes in application of existing
laws and regulations; current and future litigation, regulatory
investigations, proceedings, or inquiries; the effects, extent, and
timing of the entry of additional competition in the markets in
which Southern Company's subsidiaries operate; variations in demand
for electricity and natural gas, including those relating to
weather, the general economy and recovery from the last recession,
population and business growth (and declines), the effects of
energy conservation and efficiency measures, including from the
development and deployment of alternative energy sources such as
self-generation and distributed generation technologies, and any
potential economic impacts resulting from federal fiscal decisions;
available sources and costs of natural gas and other fuels; limits
on pipeline capacity; effects of inflation; the ability to control
costs and avoid cost overruns during the development, construction,
and operation of facilities, which include the development and
construction of generating facilities with designs that have not
been finalized or previously constructed, including changes in
labor costs and productivity, adverse weather conditions, shortages
and inconsistent quality of equipment, materials, and labor,
sustaining nitrogen supply, contractor or supplier delay,
non-performance under construction, operating, or other agreements,
operational readiness, including specialized operator training and
required site safety programs, unforeseen engineering or design
problems, start-up activities (including major equipment failure
and system integration), and/or operational performance (including
additional costs to satisfy any operational parameters ultimately
adopted by any Public Service Commission (PSC)); the ability to
construct facilities in accordance with the requirements of permits
and licenses, to satisfy any environmental performance standards
and the requirements of tax credits and other incentives, and to
integrate facilities into the Southern Company system upon
completion of construction; investment performance of the Southern
Company system's employee and retiree benefit plans and nuclear
decommissioning trust funds; advances in technology; ongoing
renewable energy partnerships and development agreements; state and
federal rate regulations and the impact of pending and future rate
cases and negotiations, including rate actions relating to fuel and
other cost recovery mechanisms; legal proceedings and regulatory
approvals and actions related to Plant Vogtle Units 3 and 4,
including Georgia PSC approvals and Nuclear Regulatory Commission
actions; actions related to cost recovery for the integrated coal
gasification combined cycle facility under construction in
Kemper County Mississippi (the
Kemper IGCC), including the ultimate impact of the 2015 decision of
the Mississippi Supreme Court, the Mississippi PSC's December 2015 rate order, and related legal or
regulatory proceedings, Mississippi PSC review of the prudence of
Kemper IGCC costs and approval of further permanent rate recovery
plans, actions relating to proposed securitization, satisfaction of
requirements to utilize grants, and the ultimate impact of the
termination of the proposed sale of an interest in the Kemper IGCC
to South Mississippi Electric Power Association; the ability to
successfully operate the electric utilities' generating,
transmission, and distribution facilities and Southern Company Gas'
natural gas distribution and storage facilities and the successful
performance of necessary corporate functions; the inherent risks
involved in operating and constructing nuclear generating
facilities, including environmental, health, regulatory, natural
disaster, terrorism, and financial risks; the inherent risks
involved in transporting and storing natural gas; the performance
of projects undertaken by the non-utility businesses and the
success of efforts to invest in and develop new opportunities;
internal restructuring or other restructuring options that may be
pursued; potential business strategies, including acquisitions or
dispositions of assets or businesses, which cannot be assured to be
completed or beneficial to Southern Company or its subsidiaries;
the possibility that the anticipated benefits from the acquisition
of Southern Company Gas cannot be fully realized or may take longer
to realize than expected, the possibility that costs related to the
integration of Southern Company and Southern Company Gas will be
greater than expected, the ability to retain and hire key personnel
and maintain relationships with customers, suppliers, or other
business partners, and the diversion of management time on
integration-related issues; the ability of counterparties of
Southern Company and its subsidiaries to make payments as and when
due and to perform as required; the ability to obtain new short-
and long-term contracts with wholesale customers; the direct or
indirect effect on the Southern Company system's business resulting
from cyber intrusion or terrorist incidents and the threat of
terrorist incidents; interest rate fluctuations and financial
market conditions and the results of financing efforts; changes in
Southern Company's and any of its subsidiaries' credit ratings,
including impacts on interest rates, access to capital markets, and
collateral requirements; the impacts of any sovereign financial
issues, including impacts on interest rates, access to capital
markets, impacts on foreign currency exchange rates, counterparty
performance, and the economy in general, as well as potential
impacts on the benefits of the Department of Energy loan
guarantees; the ability of Southern Company's electric utilities to
obtain additional generating capacity (or sell excess generating
capacity) at competitive prices; catastrophic events such as fires,
earthquakes, explosions, floods, tornadoes, hurricanes and other
storms, droughts, pandemic health events such as influenzas, or
other similar occurrences; the direct or indirect effects on the
Southern Company system's business resulting from incidents
affecting the U.S. electric grid, natural gas pipeline
infrastructure, or operation of generating or storage resources;
and the effect of accounting pronouncements issued periodically by
standard-setting bodies. Southern Company expressly disclaims any
obligation to update any forward-looking information.
|
Southern
Company
|
|
Financial
Highlights
|
|
(In Millions of
Dollars Except Earnings Per Share)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
|
|
Year-to-Date
December
|
|
Net Income–As
Reported (See Notes)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Traditional
Electric Operating Companies
|
|
$
|
147
|
|
|
$
|
274
|
|
|
$
|
2,233
|
|
|
$
|
2,186
|
|
|
Southern
Power
|
|
23
|
|
|
34
|
|
|
338
|
|
|
215
|
|
|
Southern Company
Gas
|
|
110
|
|
|
—
|
|
|
114
|
|
|
—
|
|
|
Total
|
|
280
|
|
|
308
|
|
|
2,685
|
|
|
2,401
|
|
|
Parent Company
and Other
|
|
(83)
|
|
|
(37)
|
|
|
(237)
|
|
|
(34)
|
|
|
Net
Income–As Reported
|
|
$
|
197
|
|
|
$
|
271
|
|
|
$
|
2,448
|
|
|
$
|
2,367
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share1
|
|
$
|
0.20
|
|
|
$
|
0.30
|
|
|
$
|
2.57
|
|
|
$
|
2.60
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding (in millions)
|
|
986
|
|
|
911
|
|
|
951
|
|
|
910
|
|
|
End of Period
Shares Outstanding (in millions)
|
|
|
|
|
|
990
|
|
|
912
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
Three Months
Ended
December
|
|
Year-to-Date
December
|
|
Net
Income–Excluding Items (See Notes)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Net Income–As
Reported
|
|
$
|
197
|
|
|
$
|
271
|
|
|
$
|
2,448
|
|
|
$
|
2,367
|
|
|
Estimated Loss on
Kemper IGCC2
|
|
206
|
|
|
183
|
|
|
428
|
|
|
365
|
|
|
Tax Impact
|
|
(79)
|
|
|
(70)
|
|
|
(164)
|
|
|
(139)
|
|
|
Acquisition and
Integration Costs3
|
|
12
|
|
|
25
|
|
|
120
|
|
|
41
|
|
|
Tax Impact
|
|
(4)
|
|
|
(6)
|
|
|
(38)
|
|
|
(10)
|
|
|
Additional MCAR
Settlement Costs4
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
Tax Impact
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
Subtotal
|
|
$
|
332
|
|
|
$
|
403
|
|
|
$
|
2,794
|
|
|
$
|
2,628
|
|
|
Earnings Guidance
Comparability Items:
|
|
|
|
|
|
|
|
|
|
Equity Return Related
to Kemper IGCC
Schedule
Extension5
|
|
(22)
|
|
|
—
|
|
|
(29)
|
|
|
—
|
|
|
Tax Impact
|
|
(4)
|
|
|
—
|
|
|
(5)
|
|
|
—
|
|
|
Southern Company Gas
Earnings,
net of
Acquisition and Integration Costs6
|
|
(185)
|
|
|
—
|
|
|
(231)
|
|
|
—
|
|
|
Tax Impact
|
|
72
|
|
|
—
|
|
|
90
|
|
|
—
|
|
|
Acquisition Debt
Financing Costs6
|
|
68
|
|
|
—
|
|
|
175
|
|
|
—
|
|
|
Tax Impact
|
|
(26)
|
|
|
—
|
|
|
(67)
|
|
|
—
|
|
|
Net
Income–Excluding Items
|
|
$
|
235
|
|
|
$
|
403
|
|
|
$
|
2,727
|
|
|
$
|
2,628
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Average
Shares Outstanding - Acquisition
Financing6(in millions)
|
|
964
|
|
|
911
|
|
|
942
|
|
|
910
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings
Per Share–Excluding Items
|
|
$
|
0.24
|
|
|
$
|
0.44
|
|
|
$
|
2.89
|
|
|
$
|
2.89
|
|
|
|
|
|
|
|
|
|
|
|
- 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 $25 million for
January 1, 2016 through September 30, 2016.
|
|
|
|
|
|
|
|
|
|
|
(1) For the three and
twelve months ended December 31, 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 and associated rate recovery 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 twelve months ended
December 31, 2016 and 2015. Similar charges of uncertain amounts
may occur with uncertain frequency in future periods.
|
|
|
|
|
|
|
|
|
|
|
(3) Earnings for the
three and twelve months ended December 31, 2016 and 2015 include
costs related to the acquisition of Southern Company Gas and
earnings for the three and twelve months ended December 31, 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
twelve months ended December 31, 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 twelve months ended December 31, 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 used such measures to evaluate Southern Company's
performance in 2016.
|
|
|
|
|
|
|
|
|
|
|
(6) Earnings for the
three and twelve months ended December 31, 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
twelve months ended December 31, 2016 include the impact of 22.3
million 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 used 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 December 31,
2016, pre-tax earnings from Wholesale Gas Services and the related
tax impact were $15.1 million and $3.8 million, respectively. For
the six months ended December 31, 2016, the pre-tax loss from
Wholesale Gas Services and the related tax benefit were $3.7
million and $3.5 million, respectively.
|
|
Southern
Company
|
|
Significant
Factors Impacting EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
|
|
Year-to-Date
December
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
|
Earnings Per
Share–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported1 (See Notes)
|
|
$
|
0.20
|
|
|
$
|
0.30
|
|
|
$
|
(0.10)
|
|
|
$
|
2.57
|
|
|
$
|
2.60
|
|
|
$
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant
Factors:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Traditional
Electric Operating Companies
|
|
|
|
|
|
$
|
(0.14)
|
|
|
|
|
|
|
$
|
0.06
|
|
|
Southern
Power
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
0.13
|
|
|
Southern Company
Gas
|
|
|
|
|
|
0.12
|
|
|
|
|
|
|
0.12
|
|
|
Parent Company and
Other
|
|
|
|
|
|
(0.05)
|
|
|
|
|
|
|
(0.22)
|
|
|
Increase in
Shares
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
|
(0.12)
|
|
|
Total–As
Reported
|
|
|
|
|
|
$
|
(0.10)
|
|
|
|
|
|
|
$
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
|
|
Year-to-Date
December
|
|
Non-GAAP Financial
Measures
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
|
Earnings Per
Share–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding Items
(See Notes)
|
|
$
|
0.24
|
|
|
$
|
0.44
|
|
|
$
|
(0.20)
|
|
|
$
|
2.89
|
|
|
$
|
2.89
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total–As
Reported
|
|
|
|
|
|
$
|
(0.10)
|
|
|
|
|
|
|
$
|
(0.03)
|
|
|
Estimated Loss on
Kemper IGCC2
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
0.03
|
|
|
Acquisition and
Integration Costs3
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
|
0.06
|
|
|
Additional MCAR
Settlement Costs4
|
|
|
|
|
|
—
|
|
|
|
|
|
|
(0.01)
|
|
|
Equity Return Related
to Kemper IGCC
Schedule
Extension5
|
|
|
|
|
|
(0.03)
|
|
|
|
|
|
|
(0.04)
|
|
|
Southern Company Gas
Earnings,
net of
Acquisition and Integration Costs6
|
|
|
|
|
|
(0.11)
|
|
|
|
|
|
|
(0.15)
|
|
|
Acquisition Debt
Financing Costs6
|
|
|
|
|
|
0.04
|
|
|
|
|
|
|
0.11
|
|
|
Additional Shares
Issued for SNG Acquisition6
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
0.03
|
|
|
Total–Excluding Items
|
|
|
|
|
|
$
|
(0.20)
|
|
|
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 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 $25 million for
January 1, 2016 through September 30, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For the three and
twelve months ended December 31, 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 and associated rate recovery 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 twelve months ended
December 31, 2016 and 2015. Similar charges of uncertain amounts
may occur with uncertain frequency in future periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Earnings for the
three and twelve months ended December 31, 2016 and 2015 include
costs related to the acquisition of Southern Company Gas and
earnings for the three and twelve months ended December 31, 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
twelve months ended December 31, 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 twelve months ended December 31, 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 used such measures to evaluate Southern Company's
performance in 2016.
|
|
|
(6) Earnings for the
three and twelve months ended December 31, 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
twelve months ended December 31, 2016 include the impact of 22.3
million 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 used 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 months ended December 31,
2016, pre-tax earnings from Wholesale Gas Services and the related
tax impact were $15.1 million and $3.8 million, respectively. For
the six months ended December 31, 2016, the pre-tax loss from
Wholesale Gas Services and the related tax benefit were $3.7
million and $3.5 million, respectively.
|
|
Southern
Company
|
|
|
EPS Earnings
Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description
|
|
Three Months
Ended
December
2016 vs.
2015
|
|
Year-to-Date
December
2016 vs.
2015
|
|
|
|
|
|
|
|
|
Retail
Sales
|
|
(2)¢
|
|
(5)¢
|
|
|
|
|
|
|
|
|
Retail Revenue
Impacts
|
|
4
|
|
33
|
|
|
|
|
|
|
|
|
Weather
|
|
5
|
|
10
|
|
|
|
|
|
|
|
|
Wholesale
Operations
|
|
(1)
|
|
(4)
|
|
|
|
|
|
|
|
|
Other Operating
Revenues
|
|
—
|
|
3
|
|
|
|
|
|
|
|
|
Non-Fuel
O&M
|
|
(15)
|
|
(9)
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
(1)
|
|
(7)
|
|
|
|
|
|
|
|
|
Taxes Other Than
Income Taxes
|
|
(1)
|
|
(3)
|
|
|
|
|
|
|
|
|
Other Income and
Deductions
|
|
(5)
|
|
(8)
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
(2)
|
|
(8)
|
|
|
|
|
|
|
|
|
Income
Taxes
|
|
3
|
|
4
|
|
|
|
|
|
|
|
|
Total Traditional
Electric Operating Companies
|
|
(15)¢
|
|
6¢
|
|
|
|
|
|
|
|
|
Southern
Power
|
|
(1)¢
|
|
13¢
|
|
|
|
|
|
|
|
|
Parent and Other
(Excluding Items)1
|
|
(2)¢
|
|
(9)¢
|
|
|
|
|
|
|
|
|
Increase in Shares
(Excluding Items)2
|
|
(2)¢
|
|
(10)¢
|
|
|
|
|
|
|
|
|
Total Change in
EPS (Excluding Items)
|
|
(20)¢
|
|
—¢
|
|
|
|
|
|
|
|
|
Estimated Loss on
Kemper IGCC3
|
|
(1)
|
|
(3)
|
|
|
|
|
|
|
|
|
Acquisition and
Integration Costs4
|
|
2
|
|
(6)
|
|
|
|
|
|
|
|
|
Additional MCAR
Settlement Costs5
|
|
—
|
|
1
|
|
|
|
|
|
|
|
|
Equity Return Related
to Kemper IGCC
Schedule Extension6
|
|
3
|
|
4
|
|
|
|
|
|
|
|
|
Southern Company Gas
Earnings, net of
Acquisition and Integration Costs7
|
|
11
|
|
15
|
|
|
|
|
|
|
|
|
Acquisition Debt
Financing Costs7
|
|
(4)
|
|
(11)
|
|
|
|
|
|
|
|
|
Increase in Shares
Issued for the Acquisition
of
a 50% Interest in SNG7
|
|
(1)
|
|
(3)
|
|
|
|
|
|
|
|
|
Total Change in
EPS (As Reported)
|
|
(10)¢
|
|
(3)¢
|
|
|
|
|
|
|
|
|
- See Notes on the
following page.
|
|
|
Southern
Company
|
|
|
EPS Earnings
Analysis
|
|
|
Three and Twelve
Months Ended December 2016 vs. December 2015
|
|
|
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 $25 million for
January 1, 2016 through September 30, 2016.
|
|
|
|
|
(1) Excludes
Acquisition Debt Financing Costs, which are identified separately
in the table.
|
|
|
|
|
(2) Excludes the
impact of 22.3 million 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 and associated rate recovery 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 twelve months ended
December 31, 2016 and 2015. Similar charges of uncertain amounts
may occur with uncertain frequency in future periods.
|
|
|
|
|
(4) Earnings for the
three and twelve months ended December 31, 2016 and 2015 include
costs related to the acquisition of Southern Company Gas and
earnings for the three and twelve months ended December 31, 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
twelve months ended December 31, 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.
|
|
|
|
|
(6) Earnings for the
three and twelve months ended December 31, 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 used such measures to evaluate Southern Company's
performance in 2016.
|
|
|
|
|
(7) Earnings for the
three and twelve months ended December 31, 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
twelve months ended December 31, 2016 include the impact of 22.3
million 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 used 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 December 31,
2016, pre-tax earnings from Wholesale Gas Services and the related
tax impact were $15.1 million and $3.8 million, respectively. For
the six months ended December 31, 2016, the pre-tax loss from
Wholesale Gas Services and the related tax benefit were $3.7
million and $3.5 million, respectively.
|
|
|
Southern
Company
|
|
Consolidated
Earnings As Reported
|
|
(In Millions of
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
|
|
Year-to-Date
December
|
|
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
|
Income
Account-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Electric
Revenues-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
$
|
952
|
|
|
$
|
786
|
|
|
$
|
166
|
|
|
$
|
4,121
|
|
|
$
|
4,437
|
|
|
$
|
(316)
|
|
|
Non-Fuel
|
|
2,350
|
|
|
2,243
|
|
|
107
|
|
|
11,113
|
|
|
10,550
|
|
|
563
|
|
|
Wholesale Electric
Revenues
|
|
471
|
|
|
363
|
|
|
108
|
|
|
1,926
|
|
|
1,798
|
|
|
128
|
|
|
Other Electric
Revenues
|
|
169
|
|
|
163
|
|
|
6
|
|
|
698
|
|
|
657
|
|
|
41
|
|
|
Natural Gas
Revenues
|
|
1,078
|
|
|
—
|
|
|
1,078
|
|
|
1,596
|
|
|
—
|
|
|
1,596
|
|
|
Other
Revenues
|
|
161
|
|
|
13
|
|
|
148
|
|
|
442
|
|
|
47
|
|
|
395
|
|
|
Total
Revenues
|
|
5,181
|
|
|
3,568
|
|
|
1,613
|
|
|
19,896
|
|
|
17,489
|
|
|
2,407
|
|
|
Fuel and Purchased
Power
|
|
1,196
|
|
|
956
|
|
|
240
|
|
|
5,111
|
|
|
5,395
|
|
|
(284)
|
|
|
Cost of Natural
Gas
|
|
480
|
|
|
—
|
|
|
480
|
|
|
613
|
|
|
—
|
|
|
613
|
|
|
Cost of Other
Sales
|
|
99
|
|
|
—
|
|
|
99
|
|
|
260
|
|
|
—
|
|
|
260
|
|
|
Non-Fuel O &
M
|
|
1,624
|
|
|
1,096
|
|
|
528
|
|
|
5,240
|
|
|
4,416
|
|
|
824
|
|
|
Depreciation and
Amortization
|
|
697
|
|
|
519
|
|
|
178
|
|
|
2,502
|
|
|
2,034
|
|
|
468
|
|
|
Taxes Other Than
Income Taxes
|
|
292
|
|
|
236
|
|
|
56
|
|
|
1,113
|
|
|
997
|
|
|
116
|
|
|
Estimated Loss on
Kemper IGCC
|
|
206
|
|
|
183
|
|
|
23
|
|
|
428
|
|
|
365
|
|
|
63
|
|
|
Total Operating
Expenses
|
|
4,594
|
|
|
2,990
|
|
|
1,604
|
|
|
15,267
|
|
|
13,207
|
|
|
2,060
|
|
|
Operating
Income
|
|
587
|
|
|
578
|
|
|
9
|
|
|
4,629
|
|
|
4,282
|
|
|
347
|
|
|
Allowance for Equity
Funds Used During Construction
|
|
52
|
|
|
63
|
|
|
(11)
|
|
|
202
|
|
|
226
|
|
|
(24)
|
|
|
Earnings from equity
method investments
|
|
31
|
|
|
—
|
|
|
31
|
|
|
59
|
|
|
—
|
|
|
59
|
|
|
Interest Expense, Net
of Amounts Capitalized
|
|
404
|
|
|
228
|
|
|
176
|
|
|
1,317
|
|
|
840
|
|
|
477
|
|
|
Other Income
(Expense), net
|
|
(27)
|
|
|
(12)
|
|
|
(15)
|
|
|
(93)
|
|
|
(39)
|
|
|
(54)
|
|
|
Income
Taxes
|
|
34
|
|
|
118
|
|
|
(84)
|
|
|
951
|
|
|
1,194
|
|
|
(243)
|
|
|
Net
Income
|
|
205
|
|
|
283
|
|
|
(78)
|
|
|
2,529
|
|
|
2,435
|
|
|
94
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends on
Preferred and Preference Stock of Subsidiaries
|
|
11
|
|
|
12
|
|
|
(1)
|
|
|
45
|
|
|
54
|
|
|
(9)
|
|
|
Net Income
Attributable to Noncontrolling Interests
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
|
36
|
|
|
14
|
|
|
22
|
|
|
NET INCOME
ATTRIBUTABLE TO SOUTHERN COMPANY
|
|
$
|
197
|
|
|
$
|
271
|
|
|
$
|
(74)
|
|
|
$
|
2,448
|
|
|
$
|
2,367
|
|
|
$
|
81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $25 million for
January 1, 2016 through September 30, 2016.
|
|
Southern
Company
|
|
Kilowatt-Hour
Sales and Customers
|
|
|
|
(In Millions of
KWHs)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December
|
|
Year-to-Date
December
|
|
|
2016
|
|
2015
|
|
Change
|
|
Weather Adjusted
Change
|
|
2016
|
|
2015
|
|
Change
|
|
Weather Adjusted
Change1
|
|
Kilowatt-Hour
Sales-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
44,542
|
|
|
41,945
|
|
|
6.2
|
%
|
|
|
|
195,641
|
|
|
190,989
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Retail
Sales-
|
|
36,209
|
|
|
35,589
|
|
|
1.7
|
%
|
|
(1.5)
|
%
|
|
160,745
|
|
|
160,484
|
|
|
0.2
|
%
|
|
(1.0)
|
%
|
|
Residential
|
|
11,080
|
|
|
10,196
|
|
|
8.7
|
%
|
|
0.2
|
%
|
|
53,337
|
|
|
52,121
|
|
|
2.3
|
%
|
|
0.2
|
%
|
|
Commercial
|
|
12,224
|
|
|
12,166
|
|
|
0.5
|
%
|
|
(2.2)
|
%
|
|
53,733
|
|
|
53,525
|
|
|
0.4
|
%
|
|
(1.0)
|
%
|
|
Industrial
|
|
12,690
|
|
|
13,003
|
|
|
(2.4)
|
%
|
|
(2.4)
|
%
|
|
52,792
|
|
|
53,941
|
|
|
(2.1)
|
%
|
|
(2.2)
|
%
|
|
Other
|
|
215
|
|
|
224
|
|
|
(3.9)
|
%
|
|
(4.1)
|
%
|
|
883
|
|
|
897
|
|
|
(1.7)
|
%
|
|
(1.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Wholesale
Sales
|
|
8,333
|
|
|
6,356
|
|
|
31.1
|
%
|
|
N/A
|
|
|
34,896
|
|
|
30,505
|
|
|
14.4
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands
of Customers)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-End
December
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
20152
|
|
Change
|
|
|
|
Regulated Utility
Customers-
|
|
|
|
|
|
|
|
|
|
Total Utility
Customers-
|
|
|
|
|
|
9,179
|
|
|
9,104
|
|
|
0.8
|
%
|
|
|
|
Total Traditional
Electric
|
|
|
|
|
|
4,593
|
|
|
4,546
|
|
|
1.0
|
%
|
|
|
|
Southern Company
Gas
|
|
|
|
|
|
4,586
|
|
|
4,558
|
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Southern
Company's acquisition of Southern Company Gas was completed on July
1, 2016. Year-end December 2015 customers are shown on a pro forma
basis for comparative purposes.
|
|
Southern
Company
|
|
Financial Overview
As Reported
|
|
(In Millions of
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December
|
|
Year-to-Date
December
|
|
|
2016
|
|
2015
|
|
% Change
|
|
20161
|
|
2015
|
|
% Change
|
|
Southern Company
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
5,181
|
|
|
$
|
3,568
|
|
|
45.2
|
%
|
|
$
|
19,896
|
|
|
$
|
17,489
|
|
|
13.8
|
%
|
|
Earnings Before
Income Taxes
|
|
239
|
|
|
401
|
|
|
(40.4)
|
%
|
|
3,480
|
|
|
3,629
|
|
|
(4.1)
|
%
|
|
Net Income Available
to Common
|
|
197
|
|
|
271
|
|
|
(27.3)
|
%
|
|
2,448
|
|
|
2,367
|
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alabama Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,329
|
|
|
$
|
1,217
|
|
|
9.2
|
%
|
|
$
|
5,889
|
|
|
$
|
5,768
|
|
|
2.1
|
%
|
|
Earnings Before
Income Taxes
|
|
174
|
|
|
204
|
|
|
(14.7)
|
%
|
|
1,370
|
|
|
1,317
|
|
|
4.0
|
%
|
|
Net Income Available
to Common
|
|
102
|
|
|
121
|
|
|
(15.7)
|
%
|
|
822
|
|
|
785
|
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Georgia Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,762
|
|
|
$
|
1,641
|
|
|
7.4
|
%
|
|
$
|
8,383
|
|
|
$
|
8,326
|
|
|
0.7
|
%
|
|
Earnings Before
Income Taxes
|
|
163
|
|
|
312
|
|
|
(47.8)
|
%
|
|
2,127
|
|
|
2,046
|
|
|
4.0
|
%
|
|
Net Income Available
to Common
|
|
113
|
|
|
196
|
|
|
(42.3)
|
%
|
|
1,330
|
|
|
1,260
|
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gulf Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
349
|
|
|
$
|
313
|
|
|
11.5
|
%
|
|
$
|
1,485
|
|
|
$
|
1,483
|
|
|
0.1
|
%
|
|
Earnings Before
Income Taxes
|
|
42
|
|
|
47
|
|
|
(10.6)
|
%
|
|
231
|
|
|
249
|
|
|
(7.2)
|
%
|
|
Net Income Available
to Common
|
|
23
|
|
|
28
|
|
|
(17.9)
|
%
|
|
131
|
|
|
148
|
|
|
(11.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mississippi Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
277
|
|
|
$
|
246
|
|
|
12.6
|
%
|
|
$
|
1,163
|
|
|
$
|
1,138
|
|
|
2.2
|
%
|
|
Earnings (Loss)
Before Income Taxes
|
|
(162)
|
|
|
(130)
|
|
|
N/M
|
|
|
(152)
|
|
|
(78)
|
|
|
N/M
|
|
|
Net Income (Loss)
Available to Common
|
|
(89)
|
|
|
(71)
|
|
|
N/M
|
|
|
(50)
|
|
|
(8)
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern Power
–
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
389
|
|
|
$
|
304
|
|
|
28.0
|
%
|
|
$
|
1,577
|
|
|
$
|
1,390
|
|
|
13.5
|
%
|
|
Earnings Before
Income Taxes
|
|
(8)
|
|
|
41
|
|
|
N/M
|
|
|
179
|
|
|
250
|
|
|
(28.4)
|
%
|
|
Net Income Available
to Common
|
|
23
|
|
|
34
|
|
|
(32.4)
|
%
|
|
338
|
|
|
215
|
|
|
57.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Southern Company
Gas –
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,109
|
|
|
$
|
—
|
|
|
N/A
|
|
|
$
|
1,652
|
|
|
$
|
—
|
|
|
N/A
|
|
|
Earnings Before
Income Taxes
|
|
178
|
|
|
—
|
|
|
N/A
|
|
|
190
|
|
|
—
|
|
|
N/A
|
|
|
Net Income Available
to Common
|
|
110
|
|
|
—
|
|
|
N/A
|
|
|
114
|
|
|
—
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A - not
applicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $25 million for
January 1, 2016 through September 30, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Southern
Company's acquisition of Southern Company Gas was completed on July
1, 2016. Year-to-Date December reflects financial results for
Southern Company Gas for the period July 1, 2016 through December
31, 2016.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/southern-company-reports-fourth-quarter-and-full-year-2016-earnings-300411526.html
SOURCE Southern Company