ATLANTA, April 29, 2021 /PRNewswire/ -- Southern
Company today reported first-quarter 2021 earnings of $1.14 billion, or $1.07 per share, compared with $868 million, or 82
cents per share, in the first quarter of 2020.
Excluding the items described under "Net Income – Excluding
Items" in the table below, Southern Company earned $1.04 billion, or 98
cents per share, during the first quarter of 2021, compared
with $825 million, or 78 cents per share, during the first quarter of
2020.
Non-GAAP Financial
Measures
|
|
Three Months Ended
March
|
Net Income -
Excluding Items (in millions)
|
|
2021
|
2020
|
Net Income - As
Reported
|
|
$1,135
|
$868
|
Less:
|
|
|
|
Estimated Loss on Plants Under Construction
|
|
(45)
|
(3)
|
Tax
Impact
|
|
11
|
1
|
Acquisition and Disposition Impacts
|
|
-
|
38
|
Tax
Impact
|
|
-
|
(16)
|
Wholesale Gas Services
|
|
166
|
31
|
Tax
Impact
|
|
(40)
|
(8)
|
Net Income –
Excluding Items
|
|
$1,043
|
$825
|
Average Shares
Outstanding – (in
millions)
|
|
1,060
|
1,057
|
Basic Earnings Per
Share – Excluding Items
|
|
$0.98
|
$0.78
|
|
|
NOTE:
|
For more information
regarding these non-GAAP adjustments, see the footnotes
accompanying the Financial Highlights page of the earnings
package.
|
Earnings drivers for the first quarter of 2021, as compared with
2020, were robust customer growth, higher residential sales and
colder weather, partially offset by lower commercial and industrial
sales.
"Southern Company experienced a strong start to the year," said
Chairman, President and CEO, Thomas A.
Fanning. "The economies in our service territories are
starting to recover from the COVID-19 pandemic," added Fanning.
"Customer demand is improving faster than we anticipated.
Importantly, programs we implemented to keep customers connected
during the pandemic – including alternative payment arrangements --
have helped those in need of assistance as we have continued to
reliably provide for their energy needs. I am extremely proud of
our employees and the ways we have partnered with our communities
during this time."
First-quarter 2021 operating revenues were $5.9 billion, compared with $5.0 billion for the first quarter of 2020, an
increase of 17.8 percent. This increase was primarily due
to colder weather and higher fuel costs.
Southern Company's first-quarter earnings slides with
supplemental financial information are available at
http://investor.southerncompany.com.
Southern Company's financial analyst call will begin at
1 p.m. Eastern Time today, during
which Fanning and Chief Financial Officer Andrew W. Evans will discuss earnings and
provide a general business update, including an update on the
Vogtle units 3 and 4 construction project. 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 a leading energy company serving
9 million customers through its subsidiaries. The company provides
clean, safe, reliable and affordable energy through electric
operating companies in three states, natural gas distribution
companies in four states, a competitive generation company serving
wholesale customers across America, a leading distributed energy
infrastructure company, a fiber optics network and
telecommunications services. Southern Company brands are known for
excellent customer service, high reliability and affordable prices
below the national average. For more than a century, we have been
building the future of energy and developing the full portfolio of
energy resources, including carbon-free nuclear, advanced carbon
capture technologies, natural gas, renewables, energy efficiency
and storage technology. Through an industry-leading commitment to
innovation and a low-carbon future, Southern Company and its
subsidiaries develop the customized energy solutions our customers
and communities require to drive growth and prosperity. Our
uncompromising values ensure we put the needs of those we serve at
the center of everything we do and govern our business to the
benefit of our world. Our corporate culture and hiring practices
have been recognized nationally by the U.S. Department of Defense,
G.I. Jobs magazine, DiversityInc, Black Enterprise, Forbes and the
Women's Choice Award. To learn more, visit
www.southerncompany.com.
|
|
Southern
Company
|
Financial
Highlights
|
(In Millions of
Dollars Except Earnings Per Share)
|
|
|
|
|
|
Three Months Ended
March
|
Net Income–As
Reported (See Notes)
|
2021
|
|
2020
|
Traditional
Electric Operating Companies
|
$
|
756
|
|
|
$
|
642
|
|
Southern
Power
|
97
|
|
|
75
|
|
Southern Company
Gas
|
398
|
|
|
275
|
|
Total
|
1,251
|
|
|
992
|
|
Parent Company
and Other
|
(116)
|
|
|
(124)
|
|
Net
Income–As Reported
|
$
|
1,135
|
|
|
$
|
868
|
|
|
|
|
|
Basic Earnings
Per Share1
|
$
|
1.07
|
|
|
$
|
0.82
|
|
Average Shares
Outstanding (in millions)
|
1,060
|
|
|
1,057
|
|
End of Period
Shares Outstanding (in millions)
|
1,059
|
|
|
1,056
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
Three Months Ended
March
|
Net
Income–Excluding Items (See Notes)
|
2021
|
|
2020
|
Net Income–As
Reported
|
$
|
1,135
|
|
|
$
|
868
|
|
Less:
|
|
|
|
Estimated Loss on
Plants Under Construction2
|
(45)
|
|
|
(3)
|
|
Tax Impact
|
11
|
|
|
1
|
|
Acquisition and
Disposition Impacts3
|
—
|
|
|
38
|
|
Tax Impact
|
—
|
|
|
(16)
|
|
Wholesale Gas
Services4
|
166
|
|
|
31
|
|
Tax Impact
|
(40)
|
|
|
(8)
|
|
Net
Income–Excluding Items
|
$
|
1,043
|
|
|
$
|
825
|
|
|
|
|
|
Basic Earnings
Per Share–Excluding Items
|
$
|
0.98
|
|
|
$
|
0.78
|
|
-See Notes on the
following page.
|
|
Southern
Company Financial Highlights
|
Notes
|
|
(1)
|
Dilution is not
material in any period presented. Diluted earnings per share was
$1.06 and $0.81 for the three months ended March 31, 2021 and 2020,
respectively.
|
(2)
|
Earnings for the
three months ended March 31, 2021 include a charge of $48 million
pre tax ($36 million after tax) for an estimated probable loss on
Georgia Power Company's construction of Plant Vogtle Units 3 and
4. Further charges may occur; however, the amount and timing
of any such charges are uncertain. Earnings for the three
months ended March 31, 2021 and 2020 include charges (net of
salvage proceeds), associated legal expenses (net of insurance
recoveries), and tax impacts related to Mississippi Power Company's
integrated coal gasification combined cycle facility project in
Kemper County, Mississippi. Mississippi Power Company expects
to incur additional pre-tax period costs to complete dismantlement
of the abandoned gasifier-related assets and site restoration
activities, including related costs for compliance and safety,
asset retirement obligation accretion, and property taxes, totaling
$10 million to $20 million annually through 2025.
|
(3)
|
Earnings for the
three months ended March 31, 2020 primarily include a $39 million
pre-tax ($23 million after-tax) gain on the sale of Southern Power
Company's Plant Mankato. Further impacts may be recorded in future
periods in connection with acquisition and disposition
activity.
|
(4)
|
Earnings for
the three months ended March 31, 2021 and 2020 include Wholesale
Gas Services business results. Presenting earnings and earnings per
share excluding Wholesale Gas Services provides an additional
measure of operating performance that excludes the volatility
resulting from mark-to-market and lower of weighted average cost or
current market price accounting adjustments.
|
|
|
Southern
Company
|
Significant
Factors Impacting EPS
|
|
|
|
|
|
|
|
Three Months Ended
March
|
|
2021
|
|
2020
|
|
Change
|
Earnings Per
Share–
|
|
|
|
|
|
As
Reported1 (See Notes)
|
$
|
1.07
|
|
|
$
|
0.82
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
Significant
Factors:
|
|
|
|
|
|
Traditional
Electric Operating Companies
|
|
|
|
|
$
|
0.11
|
|
Southern
Power
|
|
|
|
|
0.02
|
|
Southern Company
Gas
|
|
|
|
|
0.12
|
|
Parent Company and
Other
|
|
|
|
|
—
|
|
Increase in
Shares
|
|
|
|
|
—
|
|
Total–As
Reported
|
|
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
Three Months Ended
March
|
Non-GAAP Financial
Measures
|
2021
|
|
2020
|
|
Change
|
Earnings Per
Share–
|
|
|
|
|
|
Excluding Items
(See Notes)
|
$
|
0.98
|
|
|
$
|
0.78
|
|
|
$
|
0.20
|
|
|
|
|
|
|
|
Total–As
Reported
|
|
|
|
|
$
|
0.25
|
|
Less:
|
|
|
|
|
|
Estimated Loss on
Plants Under Construction2
|
|
|
|
|
(0.03)
|
|
Acquisition and
Disposition Impacts3
|
|
|
|
|
(0.02)
|
|
Wholesale Gas
Services4
|
|
|
|
|
0.10
|
|
Total–Excluding Items
|
|
|
|
|
$
|
0.20
|
|
- See Notes on the
following page.
|
|
Southern
Company Significant Factors Impacting EPS
|
Notes
|
|
(1)
|
Dilution is not
material in any period presented. Diluted earnings per share was
$1.06 and $0.81 for the three months ended March 31, 2021 and 2020,
respectively.
|
(2)
|
Earnings for the
three months ended March 31, 2021 include a charge of $48 million
pre tax ($36 million after tax) for an estimated probable loss on
Georgia Power Company's construction of Plant Vogtle Units 3 and
4. Further charges may occur; however, the amount and timing
of any such charges are uncertain. Earnings for the three
months ended March 31, 2021 and 2020 include charges (net of
salvage proceeds), associated legal expenses (net of insurance
recoveries), and tax impacts related to Mississippi Power Company's
integrated coal gasification combined cycle facility project in
Kemper County, Mississippi. Mississippi Power Company expects
to incur additional pre-tax period costs to complete dismantlement
of the abandoned gasifier-related assets and site restoration
activities, including related costs for compliance and safety,
asset retirement obligation accretion, and property taxes, totaling
$10 million to $20 million annually through 2025.
|
(3)
|
Earnings for the
three months ended March 31, 2020 primarily include a $39 million
pre-tax ($23 million after-tax) gain on the sale of Southern Power
Company's Plant Mankato. Further impacts may be recorded in future
periods in connection with acquisition and disposition
activity.
|
(4)
|
Earnings for the
three months ended March 31, 2021 and 2020 include Wholesale Gas
Services business results. Presenting earnings and earnings per
share excluding Wholesale Gas Services provides an additional
measure of operating performance that excludes the volatility
resulting from mark-to-market and lower of weighted average cost or
current market price accounting adjustments.
|
|
|
|
|
|
Southern
Company
|
|
EPS Earnings
Analysis
|
|
Three Months Ended
March 2021 vs. March 2020
|
|
|
Description
|
Cents
|
|
|
|
|
Retail
Sales
|
(1)¢
|
|
|
|
|
Retail Revenue
Impacts
|
2
|
|
|
|
|
Weather
|
6
|
|
|
|
|
Wholesale & Other
Operating Revenues
|
4
|
|
|
|
|
Depreciation and
Amortization, Interest Expense, Other
|
3
|
|
|
|
|
Total Traditional
Electric Operating Companies
|
14¢
|
|
|
|
|
Southern
Power
|
4
|
|
|
|
|
Southern Company
Gas
|
2
|
|
|
|
|
Total Change in
EPS (Excluding Items)
|
20¢
|
|
|
|
|
Estimated Loss on
Plants Under Construction1
|
(3)
|
|
|
|
|
Acquisition and
Disposition Impacts2
|
(2)
|
|
|
|
|
Wholesale Gas
Services3
|
10
|
|
|
|
|
Total Change in
EPS (As Reported)
|
25¢
|
|
- See Notes on the
following page.
|
|
|
Southern
Company EPS Earnings Analysis
|
Notes
|
|
(1)
|
Earnings for the
three months ended March 31, 2021 include a charge of $48 million
pre tax ($36 million after tax) for an estimated probable loss on
Georgia Power Company's construction of Plant Vogtle Units 3 and
4. Further charges may occur; however, the amount and timing
of any such charges are uncertain. Earnings for the three
months ended March 31, 2021 and 2020 include charges (net of
salvage proceeds), associated legal expenses (net of insurance
recoveries), and tax impacts related to Mississippi Power Company's
integrated coal gasification combined cycle facility project in
Kemper County, Mississippi. Mississippi Power Company expects
to incur additional pre-tax period costs to complete dismantlement
of the abandoned gasifier-related assets and site restoration
activities, including related costs for compliance and safety,
asset retirement obligation accretion, and property taxes, totaling
$10 million to $20 million annually through 2025.
|
(2)
|
Earnings for the
three months ended March 31, 2020 primarily include a $39 million
pre-tax ($23 million after-tax) gain on the sale of Southern Power
Company's Plant Mankato. Further impacts may be recorded in future
periods in connection with acquisition and disposition
activity.
|
(3)
|
Earnings for the
three months ended March 31, 2021 and 2020 include Wholesale Gas
Services business results. Presenting earnings and earnings per
share excluding Wholesale Gas Services provides an additional
measure of operating performance that excludes the volatility
resulting from mark-to-market and lower of weighted average cost or
current market price accounting adjustments.
|
|
|
Southern
Company
|
Consolidated
Earnings
|
As
Reported
|
(In Millions of
Dollars)
|
|
Three Months Ended
March
|
|
2021
|
|
2020
|
|
Change
|
Income
Account-
|
|
|
|
|
|
Retail Electric
Revenues-
|
|
|
|
|
|
Fuel
|
$
|
838
|
|
|
$
|
677
|
|
|
$
|
161
|
|
Non-Fuel
|
2,504
|
|
|
2,401
|
|
|
103
|
|
Wholesale Electric
Revenues
|
545
|
|
|
418
|
|
|
127
|
|
Other Electric
Revenues
|
170
|
|
|
151
|
|
|
19
|
|
Natural Gas
Revenues
|
1,694
|
|
|
1,249
|
|
|
445
|
|
Other
Revenues
|
159
|
|
|
122
|
|
|
37
|
|
Total
Revenues
|
5,910
|
|
|
5,018
|
|
|
892
|
|
Fuel and Purchased
Power
|
1,055
|
|
|
817
|
|
|
238
|
|
Cost of Natural
Gas
|
583
|
|
|
439
|
|
|
144
|
|
Cost of Other
Sales
|
82
|
|
|
55
|
|
|
27
|
|
Non-Fuel
O&M
|
1,372
|
|
|
1,296
|
|
|
76
|
|
Depreciation and
Amortization
|
871
|
|
|
857
|
|
|
14
|
|
Taxes Other Than
Income Taxes
|
345
|
|
|
330
|
|
|
15
|
|
Estimated Loss on
Plant Vogtle Units 3 and 4
|
48
|
|
|
—
|
|
|
48
|
|
(Gain) Loss on
Dispositions, net
|
(44)
|
|
|
(39)
|
|
|
(5)
|
|
Total Operating
Expenses
|
4,312
|
|
|
3,755
|
|
|
557
|
|
Operating
Income
|
1,598
|
|
|
1,263
|
|
|
335
|
|
Allowance for Equity
Funds Used During Construction
|
46
|
|
|
34
|
|
|
12
|
|
Earnings from Equity
Method Investments
|
45
|
|
|
42
|
|
|
3
|
|
Interest Expense, Net
of Amounts Capitalized
|
450
|
|
|
456
|
|
|
(6)
|
|
Other Income
(Expense), net
|
58
|
|
|
103
|
|
|
(45)
|
|
Income
Taxes
|
190
|
|
|
145
|
|
|
45
|
|
Net
Income
|
1,107
|
|
|
841
|
|
|
266
|
|
Less:
|
|
|
|
|
|
Dividends on Preferred
Stock of Subsidiaries
|
4
|
|
|
4
|
|
|
—
|
|
Net Loss Attributable
to Noncontrolling Interests
|
(32)
|
|
|
(31)
|
|
|
(1)
|
|
NET INCOME
ATTRIBUTABLE TO SOUTHERN COMPANY
|
$
|
1,135
|
|
|
$
|
868
|
|
|
$
|
267
|
|
|
|
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
March
|
|
2021
|
|
2020
|
|
Change
|
|
Weather
Adjusted
Change
|
Kilowatt-Hour
Sales-
|
|
|
|
|
|
|
|
Total
Sales
|
46,422
|
|
|
44,263
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Total Retail
Sales-
|
34,651
|
|
|
34,045
|
|
|
1.8
|
%
|
|
(1.6)
|
%
|
Residential
|
12,040
|
|
|
10,866
|
|
|
10.8
|
%
|
|
1.1
|
%
|
Commercial
|
10,743
|
|
|
10,939
|
|
|
(1.8)
|
%
|
|
(3.1)
|
%
|
Industrial
|
11,708
|
|
|
12,066
|
|
|
(3.0)
|
%
|
|
(3.0)
|
%
|
Other
|
160
|
|
|
174
|
|
|
(7.7)
|
%
|
|
(8.2)
|
%
|
|
|
|
|
|
|
|
|
Total Wholesale
Sales
|
11,771
|
|
|
10,218
|
|
|
15.2
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands
of Customers)
|
|
|
|
|
|
|
|
|
|
Period Ended
March
|
|
|
|
2021
|
|
2020
|
|
Change
|
|
|
Regulated Utility
Customers-
|
|
|
|
|
|
|
|
Total Utility
Customers-
|
8,673
|
|
8,578
|
|
1.1%
|
|
|
Total Traditional
Electric
|
4,338
|
|
4,280
|
|
1.4%
|
|
|
Southern Company
Gas
|
4,335
|
|
4,298
|
|
0.9%
|
|
|
|
|
|
|
Southern
Company
|
|
Financial
Overview
|
|
As
Reported
|
|
(In Millions of
Dollars)
|
|
|
Three Months Ended
March
|
|
|
2021
|
|
2020
|
|
% Change
|
|
Southern Company
–
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
5,910
|
|
|
$
|
5,018
|
|
|
17.8
|
%
|
|
Earnings Before
Income Taxes
|
1,297
|
|
|
986
|
|
|
31.5
|
%
|
|
Net Income Available
to Common
|
1,135
|
|
|
868
|
|
|
30.8
|
%
|
|
|
|
|
|
|
|
|
Alabama Power
–
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
1,559
|
|
|
$
|
1,351
|
|
|
15.4
|
%
|
|
Earnings Before
Income Taxes
|
473
|
|
|
368
|
|
|
28.5
|
%
|
|
Net Income Available
to Common
|
359
|
|
|
280
|
|
|
28.2
|
%
|
|
|
|
|
|
|
|
|
Georgia Power
–
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
1,970
|
|
|
$
|
1,825
|
|
|
7.9
|
%
|
|
Earnings Before
Income Taxes
|
369
|
|
|
347
|
|
|
6.3
|
%
|
|
Net Income Available
to Common
|
351
|
|
|
331
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
Mississippi Power
–
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
307
|
|
|
$
|
277
|
|
|
10.8
|
%
|
|
Earnings Before
Income Taxes
|
49
|
|
|
38
|
|
|
28.9
|
%
|
|
Net Income Available
to Common
|
45
|
|
|
32
|
|
|
40.6
|
%
|
|
|
|
|
|
|
|
|
Southern Power
–
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
440
|
|
|
$
|
375
|
|
|
17.3
|
%
|
|
Earnings Before
Income Taxes
|
55
|
|
|
51
|
|
|
7.8
|
%
|
|
Net Income Available
to Common
|
97
|
|
|
75
|
|
|
29.3
|
%
|
|
|
|
|
|
|
|
|
Southern Company
Gas –
|
|
|
|
|
|
|
Operating
Revenues
|
$
|
1,694
|
|
|
$
|
1,249
|
|
|
35.6
|
%
|
|
Earnings Before
Income Taxes
|
519
|
|
|
354
|
|
|
46.6
|
%
|
|
Net Income Available
to Common
|
398
|
|
|
275
|
|
|
44.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
- See Financial
Highlights pages for discussion of certain significant items
occurring during the periods
|
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/southern-company-reports-first-quarter-2021-earnings-301279885.html
SOURCE Southern Company