0000092122-13-000047.txt : 20130731 0000092122-13-000047.hdr.sgml : 20130731 20130731082931 ACCESSION NUMBER: 0000092122-13-000047 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20130731 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20130731 DATE AS OF CHANGE: 20130731 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN CO CENTRAL INDEX KEY: 0000092122 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 580690070 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03526 FILM NUMBER: 13997550 BUSINESS ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD., N.W. CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045065000 MAIL ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD., N.W. CITY: ATLANTA STATE: GA ZIP: 30308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN POWER CO CENTRAL INDEX KEY: 0001160661 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 582598670 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-98553 FILM NUMBER: 13997551 BUSINESS ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045065000 MAIL ADDRESS: STREET 1: 30 IVAN ALLEN JR. BLVD CITY: ATLANTA STATE: GA ZIP: 30308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MISSISSIPPI POWER CO CENTRAL INDEX KEY: 0000066904 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 640205820 STATE OF INCORPORATION: MS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11229 FILM NUMBER: 13997552 BUSINESS ADDRESS: STREET 1: 2992 WEST BEACH CITY: GULFPORT STATE: MS ZIP: 39501 BUSINESS PHONE: 2288641211 MAIL ADDRESS: STREET 1: 2992 WEST BEACH CITY: GULFPORT STATE: MS ZIP: 39501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GULF POWER CO CENTRAL INDEX KEY: 0000044545 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 590276810 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31737 FILM NUMBER: 13997553 BUSINESS ADDRESS: STREET 1: ONE ENERGY PLACE CITY: PENSACOLA STATE: FL ZIP: 32520 BUSINESS PHONE: 8504446111 MAIL ADDRESS: STREET 1: ONE ENERGY PLACE CITY: PENSACOLA STATE: FL ZIP: 32520 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GEORGIA POWER CO CENTRAL INDEX KEY: 0000041091 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 580257110 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06468 FILM NUMBER: 13997554 BUSINESS ADDRESS: STREET 1: 241 RALPH MCGILL BOULEVARD CITY: ATLANTA STATE: GA ZIP: 30308 BUSINESS PHONE: 4045066526 MAIL ADDRESS: STREET 1: 241 RALPH MCGILL BOULEVARD CITY: ATLANTA STATE: GA ZIP: 30308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALABAMA POWER CO CENTRAL INDEX KEY: 0000003153 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 630004250 STATE OF INCORPORATION: AL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03164 FILM NUMBER: 13997555 BUSINESS ADDRESS: STREET 1: 600 N 18TH ST STREET 2: P O BOX 2641 CITY: BIRMINGHAM STATE: AL ZIP: 35291 BUSINESS PHONE: 2052571000 MAIL ADDRESS: STREET 1: 600 N 18TH ST CITY: BIRMINGHAM STATE: AL ZIP: 35291 8-K 1 a8-kearningsreleaseq22013.htm 8-K 8-K Earnings Release Q2 2013


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)    July 31, 2013    

Commission
File Number
Registrant, State of Incorporation,
Address and Telephone Number
I.R.S. Employer
Identification No.
 
 
 
1-3526
The Southern Company
(A Delaware Corporation)
30 Ivan Allen Jr. Blvd., N.W.
Atlanta, Georgia 30308
(404) 506-5000
58-0690070
1-3164
Alabama Power Company
(An Alabama Corporation)
600 North 18th Street
Birmingham, Alabama 35203
(205) 257-1000
63-0004250
1-6468
Georgia Power Company
(A Georgia Corporation)
241 Ralph McGill Boulevard, N.E.
Atlanta, Georgia 30308
(404) 506-6526
58-0257110
001-31737
Gulf Power Company
(A Florida Corporation)
One Energy Place
Pensacola, Florida 32520
(850) 444-6111
59-0276810
001-11229
Mississippi Power Company
(A Mississippi Corporation)
2992 West Beach Boulevard
Gulfport, Mississippi 39501
(228) 864-1211
64-0205820
333-98553
Southern Power Company
(A Delaware Corporation)
30 Ivan Allen Jr. Blvd., N.W.
Atlanta, Georgia 30308
(404) 506-5000
58-2598670

The names and addresses of the registrants have not changed since the last report.






This combined Form 8-K is furnished separately by six registrants: The Southern Company, Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company and Southern Power Company. Information contained herein relating to each registrant is furnished by each registrant solely on its own behalf. Each registrant makes no representation as to information relating to the other registrants.

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))







Item 2.02
Results of Operations and Financial Condition

The information in this Current Report on Form 8-K, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibits attached hereto, shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

On July 31, 2013, The Southern Company (“Southern Company”) issued a press release regarding its earnings for the periods ended June 30, 2013. A copy of this release is being furnished as Exhibit 99.01 to this Current Report on Form 8-K. In addition, certain additional information regarding the financial results for the three month and six month periods ended June 30, 2013 is being furnished as Exhibits 99.02 through 99.07 to this Current Report on Form 8-K.

Use of Non-GAAP Financial Measures

Exhibits 99.01, 99.02, 99.03 and 99.04 to this Current Report on Form 8-K, in addition to including earnings and earnings per share in accordance with generally accepted accounting principles (“GAAP”) for the three month and six month periods ended June 30, 2013, also include earnings and earnings per share (1) for the three month and six month periods ended June 30, 2013 excluding charges for estimated probable losses relating to Mississippi Power Company's construction of the integrated coal gasification combined cycle facility in Kemper County, Mississippi, (2) for the three month and six month periods ended June 30, 2012 excluding an insurance recovery received in June 2012 that related to the March 2009 settlement agreement with MC Asset Recovery, LLC, and (3) for the six month period ended June 30, 2013 excluding a charge related to the restructuring of a leveraged lease investment that was completed in March 2013. These charges and the insurance recovery significantly impacted the presentation of earnings and earnings per share for the respective periods. Similar charges and insurance recoveries are not expected to occur with any regularity as part of Southern Company's ongoing business activities, although it is possible such charges could recur. Southern Company believes the presentation of earnings and earnings per share, excluding these charges and the insurance recovery, is useful to investors because it provides investors with additional information to evaluate the performance of Southern Company's ongoing business activities.  Southern Company management also uses earnings and earnings per share, excluding the effect of these charges and the insurance recovery, to evaluate the performance of Southern Company's ongoing business activities.  The presentation of this additional information is not meant to be considered a substitute for financial measures prepared in accordance with GAAP.

Exhibits

The exhibits hereto contain business segment information for Alabama Power Company, Georgia Power Company, Gulf Power Company, Mississippi Power Company and Southern Power Company. Accordingly, this report is also being furnished on behalf of each such registrant.


- 1 -






The following exhibits relate to the periods ended June 30, 2013:

 
Exhibit 99.01
Press Release.
 
Exhibit 99.02
Financial Highlights.
 
Exhibit 99.03
Significant Factors Impacting EPS.
 
Exhibit 99.04
EPS Earnings Analysis.
 
Exhibit 99.05
Consolidated Earnings.
 
Exhibit 99.06
Kilowatt-Hour Sales.
 
Exhibit 99.07
Financial Overview.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 31, 2013
THE SOUTHERN COMPANY



By /s/Ann P. Daiss
      Ann P. Daiss
     Comptroller
 
 
 
ALABAMA POWER COMPANY
GEORGIA POWER COMPANY
GULF POWER COMPANY
MISSISSIPPI POWER COMPANY
SOUTHERN POWER COMPANY



By /s/Melissa K. Caen
      Melissa K. Caen
      Assistant Secretary




- 2 -



EX-99.01 2 ex9901-pressreleaseq22013.htm EXHIBIT Ex. 99.01 - Press Release Q2 2013


 
 
Exhibit 99.01
 
News
 
 
 
 
Media Contact:
Southern Company Media Relations
 
 
404-506-5333 or 1-866-506-5333
 
 
www.southerncompany.com
 
 
 
 
Investor Relations Contact:
 
 
Dan Tucker
 
 
404-506-5310
 
 
dstucker@southernco.com
 
 
 
 

July 31, 2013
Southern Company reports second quarter earnings

ATLANTA -- Southern Company today reported second quarter 2013 earnings of $297 million, or 34 cents per share, compared with earnings of $623 million, or 71 cents per share, in the second quarter of 2012.

For the six months ended June 30, 2013, earnings were $378 million, or 43 cents per share, compared with $991 million, or $1.14 per share, for the same period in 2012.

Earnings for the three and six months ended June 30, 2013, include after-tax charges of $278 million (32 cents per share) and $611 million (70 cents per share), respectively, related to increased cost estimates for the construction of Mississippi Power's Kemper County project. Earnings for the six months ended June 30, 2013, also include a $16 million (2 cents per share) after-tax charge related to the restructuring of a leveraged lease investment. Earnings for the three and six months ended June 30, 2012, include $21 million (2 cents per share) of insurance recovery related to the March 2009 litigation settlement agreement with MC Asset Recovery, LLC.

Excluding these items, Southern Company earned $575 million, or 66 cents per share, in the second quarter of 2013 compared with earnings of $602 million, or 69 cents per share, during the second quarter of 2012. For the first six months of 2013, excluding these items, Southern Company earned $1.01 billion, or $1.15 per share, compared with earnings of $970 million, or $1.12 per share, for the same period in 2012.

“Despite recent cost challenges, we are making great progress in the construction of the Kemper County energy facility,” said Thomas A. Fanning, Southern Company chairman, president and CEO. “The company's investment in this innovative technology will help provide decades of clean, safe, reliable and affordable electricity to Mississippi Power customers.”

The revised construction cost estimate reflects Mississippi Power's current analysis of the cost to complete the Kemper project. Mississippi Power's analysis will be ongoing throughout the project's construction.

Earnings were negatively influenced by milder weather in the second quarter of 2013 compared with the second quarter of 2012.






“Georgia experienced the second-most rainfall in 50 years during the second quarter,” said Fanning. “The wet weather and unseasonably mild temperatures appear to have slowed economic activity, reduced energy demand and lowered margins due to increases in hydroelectric generation.”

Second quarter 2013 operating revenues were $4.25 billion, compared with $4.18 billion for the same period in 2012, an increase of 1.6 percent. Year-to-date 2013 revenues were $8.14 billion, compared with $7.79 billion for the same period in 2012, a 4.6 percent increase.

Kilowatt-hour sales to retail customers in Southern Company's four-state service area decreased 2.9 percent in the second quarter of 2013 compared with the second quarter of 2012. Residential and commercial energy sales decreased 5.3 percent and 4.2 percent, respectively, while industrial energy sales increased 0.6 percent.

For the year to date, retail sales decreased 0.4 percent compared with the same period in 2012. Residential energy sales increased 1.2 percent, commercial energy sales decreased 1.7 percent and industrial energy sales decreased 0.7 percent.

Total energy sales to Southern Company's customers in the Southeast, including wholesale sales, decreased 4.6 percent in the second quarter of 2013 compared with the same period in 2012. For the year to date, total energy sales decreased 0.1 percent compared with the same period in 2012.

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/events.cfm. A replay of the webcast only will be available at the site for 12 months.

Southern Company has also posted on its website detailed financial information on its second quarter performance. These materials are available at www.southerncompany.com.

With 4.4 million customers and nearly 46,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving the Southeast through its subsidiaries. A leading U.S. producer of clean, safe, reliable and affordable electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for energy innovation, excellent customer service, high reliability and retail electric prices that are below the national average. Southern Company and its subsidiaries are leading the nation's nuclear renaissance through the construction of the first new nuclear units to be built in a generation of Americans and are demonstrating their commitment to energy innovation through the development of a state-of-the-art coal gasification plant. Southern Company has been recognized by the U.S. Department of Defense and G.I. Jobs magazine as a top military employer and listed by DiversityInc as a top company for Blacks. The company received the 2012 Edison Award from the Edison Electric Institute for its leadership in new nuclear development, was named Electric Light & Power magazine's Utility of the Year for 2012 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 Note Regarding Forward-Looking Statements:
Certain information contained in this release is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning the economy





and completion of the Kemper County integrated coal gasification combined cycle facility (“Kemper IGCC”). 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, 2012, 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 legislative and regulatory initiatives regarding deregulation and restructuring of the electric utility industry, environmental laws including regulation of water, coal combustion byproducts, and emissions of sulfur, nitrogen, carbon, soot, particulate matter, hazardous air pollutants, including mercury, and other substances, and also changes in tax and other laws and regulations to which Southern Company and its subsidiaries are subject, as well as changes in application of existing laws and regulations; current and future litigation, regulatory investigations, proceedings, or inquiries, including the pending Environmental Protection Agency civil actions against certain Southern Company subsidiaries, Federal Energy Regulatory Commission matters, and Internal Revenue Service and state tax audits; the effects, extent, and timing of the entry of additional competition in the markets in which Southern Company's subsidiaries operate; variations in demand for electricity, including those relating to weather, the general economy and recovery from the recent recession, population and business growth (and declines), the effects of energy conservation measures, and any potential economic impacts resulting from federal fiscal decisions; available sources and costs of fuels; effects of inflation; ability to control costs and avoid cost overruns during the development and construction of facilities, which include the development and construction of facilities with designs that have not been finalized or previously constructed, including the impact of factors such as labor costs and productivity, adverse weather conditions, shortages and inconsistent quality of equipment, materials, and labor or contractor or supplier delay or non-performance under construction or other agreements, delays associated with start-up activities, including major equipment failure, system integration and operations and/or unforeseen engineering problems; ability to construct facilities in accordance with the requirements of permits and licenses and to satisfy any operational and environmental performance standards, including the requirements of tax credits and other incentives; investment performance of Southern Company's employee benefit plans and the Southern Company system's nuclear decommissioning trust funds; advances in technology; state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to fuel and other cost recovery mechanisms; regulatory approvals and actions related to the Plant Vogtle expansion, including Georgia Public Service Commission (“PSC”) approvals, Nuclear Regulatory Commission actions, and potential U.S. Department of Energy loan guarantees; regulatory approvals and actions related to cost recovery for the Kemper IGCC, including Mississippi PSC review of Mississippi Power Company's proposed rate recovery plan and the prudence of Kemper IGCC costs, and actions relating to proposed securitization; the ability to complete the proposed sale of an interest in the Kemper IGCC to the South Mississippi Electric Power Association as contemplated by Mississippi Power Company's proposed rate recovery plan; satisfaction of requirements to utilize investment tax credits and grants; and the outcome of any legal or regulatory proceedings regarding the Mississippi PSC's issuance of the certificate of public convenience and necessity for the Kemper IGCC, the settlement agreement between Mississippi Power Company and the Mississippi PSC, or the State of Mississippi legislation designed to enhance the Mississippi PSC's authority to facilitate development and construction of baseload generation in the State of Mississippi; the inherent risks involved in operating and constructing nuclear generating facilities, including environmental, health, regulatory, natural disaster, terrorism, and financial risks; 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 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 terrorist incidents and the threat of terrorist incidents, including cyber intrusion; interest rate fluctuations and financial market conditions and the results of financing efforts, including Southern Company's and its subsidiaries' credit ratings; the impacts of any potential U.S. credit rating downgrade or other sovereign financial issues, including impacts on interest rates, access to capital markets, impacts on currency exchange rates, counterparty performance, and the economy in general, as well as potential impacts on the availability or benefits of proposed U.S. Department of Energy loan guarantees; the ability of Southern Company and its subsidiaries to obtain additional generating capacity at competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, hurricanes, droughts, pandemic health events such as 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 or operation of generating 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.

# # #


EX-99.02 3 ex9902-financialhighlights.htm EXHIBIT Ex. 99.02 - Financial Highlights Q2 2013


Exhibit 99.02
 
Southern Company
Financial Highlights
(In Millions of Dollars Except Earnings Per Share)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
June
 
Year-to-Date
June
 
 
2013
 
2012
 
2013
 
2012
Consolidated Earnings–As Reported
 
 
 
 
 
 
 
 
(See Notes)
 
 
 
 
 
 
 
 
  Traditional Operating Companies
 
$
268

 
$
549

 
$
334

 
$
889

  Southern Power
 
28

 
47

 
57

 
76

  Total
 
296

 
596

 
391

 
965

  Parent Company and Other
 
1

 
27

 
(13
)
 
26

  Net Income–As Reported
 
$
297

 
$
623

 
$
378

 
$
991

 
 
 
 
 
 
 
 
 
  Basic Earnings Per Share
 
$
0.34

 
$
0.71

 
$
0.43

 
$
1.14

 
 
 
 
 
 
 
 
 
  Average Shares Outstanding (in millions)
 
874

 
872

 
872

 
870

  End of Period Shares Outstanding (in millions)
 


 
 
 
874

 
875

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
June
 
Year-to-Date
June
 
 
2013
 
2012
 
2013
 
2012
Consolidated Earnings–Excluding Items
 
 
 
 
 
 
 
 
(See Notes)
 
 
 
 
 
 
 
 
  Net Income–As Reported
 
$
297

 
$
623

 
$
378

 
$
991

  Estimated Loss on Kemper IGCC
 
278

 

 
611

 

  Leveraged Lease Restructure
 

 

 
16

 

  MC Asset Recovery Insurance Settlement, net
 

 
(21
)
 

 
(21
)
  Net Income–Excluding Items
 
$
575

 
$
602

 
$
1,005

 
$
970

 
 
 
 
 
 
 
 
 
  Basic Earnings Per Share–Excluding Items
 
$
0.66

 
$
0.69

 
$
1.15

 
$
1.12

 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
- For the three and six months ended June 30, 2013 and 2012, dilution does not change basic earnings per share by more than 1 cent and is not material.
 
 
 
 
 
 
 
 
 
- The estimated probable losses relating to Mississippi Power Company's construction 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 six months ended June 30, 2013 and similar charges are not expected to occur with any regularity in the future, although it is possible such charges could recur.
 
 
 
 
 
 
 
 
 
-The charge related to the restructuring of a leveraged lease investment that was completed on March 1, 2013 impacted the presentation of earnings and earnings per share for the six months ended June 30, 2013 and similar charges are not expected to occur with any regularity in the future, although it is possible such charges could recur.
 
 
 
 
 
 
 
 
 
- Earnings for the three and six months ended June 30, 2012 include an insurance settlement related to the March 2009 litigation settlement with MC Asset Recovery, LLC and similar insurance recoveries are not expected to occur with any regularity in the future.
 
 
 
 
 
 
 
 
 
- Certain prior year data has been reclassified to conform with current year presentation.
 
 
 
 
 
 
 
 
 
- All figures in this earnings release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-Q.
 


EX-99.03 4 ex9903-significantfactorsi.htm EXHIBIT Ex. 99.03 - Significant Factors Impacting EPS Q2 2013


Exhibit 99.03
 
Southern Company
Significant Factors Impacting EPS
 
 
 
 
 
 
 
Three Months Ended
June
 
Year-to-Date
June
 
 
2013
 
2012
 
Change
 
2013
 
2012
 
Change
Consolidated Earnings Per Share–
 
 
 
 
 
 
 
 
 
 
 
 
As Reported (See Notes)
 
$
0.34

 
$
0.71

 
$
(0.37
)
 
$
0.43

 
$
1.14

 
$
(0.71
)
 
 
 
 
 
 
 
 
 
 
 
 
 
  Significant Factors:
 
 
 
 
 
 
 
 
 
 
 
 
  Traditional Operating Companies
 
 
 
 
 
(0.32
)
 
 
 
 
 
(0.64
)
  Southern Power
 
 
 
 
 
(0.02
)
 
 
 
 
 
(0.02
)
  Parent Company and Other
 
 
 
 
 
(0.03
)
 
 
 
 
 
(0.05
)
  Total–As Reported
 
 
 
 
 
$
(0.37
)
 
 
 
 
 
$
(0.71
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
June
 
Year-to-Date
June
 
 
2013
 
2012
 
Change
 
2013
 
2012
 
Change
Consolidated Earnings Per Share–
 
 
 
 
 
 
 
 
 
 
 
 
Excluding Items (See Notes)
 
$
0.66

 
$
0.69

 
$
(0.03
)
 
$
1.15

 
$
1.12

 
$
0.03

 
 
 
 
 
 
 
 
 
 
 
 
 
  Total–As Reported
 
 
 
 
 
(0.37
)
 
 
 
 
 
(0.71
)
  Estimated Loss on Kemper IGCC
 
 
 
 
 
0.32

 
 
 
 
 
0.70

  Leveraged Lease Restructure
 
 
 
 
 

 
 
 
 
 
0.02

  MC Asset Recovery Insurance Settlement
 
 
 
 
 
0.02

 
 
 
 
 
0.02

  Total–Excluding Items
 


 


 
$
(0.03
)
 
 
 
 
 
$
0.03

 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
- For the three and six months ended June 30, 2013 and 2012, dilution does not change basic earnings per share by more than 1 cent and is not material.
 
 
 
 
 
 
 
 
 
 
 
 
 
- The estimated probable losses relating to Mississippi Power Company's construction 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 six months ended June 30, 2013 and similar charges are not expected to occur with any regularity in the future, although it is possible such charges could recur.
 
 
 
 
 
 
 
 
 
 
 
 
 
-The charge related to the restructuring of a leveraged lease investment that was completed on March 1, 2013 impacted the presentation of earnings and earnings per share for the six months ended June 30, 2013 and similar charges are not expected to occur with any regularity in the future, although it is possible such charges could recur.
 
 
 
 
 
 
 
 
 
 
 
 
 
- Earnings for the three and six months ended June 30, 2012 include an insurance settlement related to the March 2009 litigation settlement with MC Asset Recovery, LLC and similar insurance recoveries are not expected to occur with any regularity in the future.
 
 
 
 
 
 
 
 
 
 
 
 
 
- Certain prior year data has been reclassified to conform with current year presentation.
 
 
 
 
 
 
 
 
 
 
 
 
 
- All figures in this earnings release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-Q.


EX-99.04 5 ex9904-epsearningsanalysis.htm EXHIBIT Ex. 99.04 - EPS Earnings Analysis Q2 2013


Exhibit 99.04
Southern Company
EPS Earnings Analysis
Three Months Ended June 2013
 
 
 
Cents
 
Description
 
 
 
(1)¢
 
Retail Sales
 
 
 
5
 
Retail Revenue Impacts
 
 
 
(4)
 
Weather
 
 
 
(1)
 
Wholesale Revenues
 
 
 
1
 
Non-Fuel O&M
 
 
 
1
 
Purchased Power Capacity Expense
 
 
 
(1)
 
Depreciation and Amortization
 
 
 
2
 
Other Income and Deductions
 
 
 
(2)
 
Income Taxes
 
 
 
—¢
 
Total Traditional Operating Companies
 
 
 
(2)
 
Southern Power
 
 
 
(1)
 
Parent and Other
 
 
 
(3)¢
 
Total Change in QTD EPS (x-Items)
 
 
 
(32)
 
Estimated Loss on Kemper IGCC
 
 
 
(2)
 
MC Asset Recovery Insurance Settlement
 
 
 
(37)¢
 
Total Change in QTD EPS (As Reported)
 
 
 
Notes
 

- The estimated probable loss relating to Mississippi Power Company's construction 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 months ended June 30, 2013 and similar charges are not expected to occur with any regularity in the future, although it is possible such charges could recur.
 
 
 
- Earnings for the three months ended June 30, 2012 include an insurance settlement related to the March 2009 litigation settlement with MC Asset Recovery, LLC and similar insurance recoveries are not expected to occur with any regularity in the future.
 
 
 
- All figures in this earnings release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-Q.
 


EX-99.05 6 ex9905-consolidatedearning.htm EXHIBIT Ex. 99.05 - Consolidated Earnings Q2 2013


Exhibit 99.05
 
Southern Company
Consolidated Earnings
As Reported
(In Millions of Dollars)
 
 
 
 
 
 
 
Three Months Ended June
 
Year-to-Date June
 
 
2013
 
2012
 
Change
 
2013
 
2012
 
Change
Income Account-
 
 
 
 
 
 
 
 
 
 
 
 
Retail Revenues-
 
 
 
 
 
 
 
 
 
 
 
 
Fuel
 
$
1,257

 
$
1,230

 
$
27

 
$
2,395

 
$
2,265

 
$
130

Non-Fuel
 
2,363

 
2,367

 
(4
)
 
4,523

 
4,424

 
99

Wholesale Revenues
 
454

 
415

 
39

 
886

 
764

 
122

Other Electric Revenues
 
156

 
154

 
2

 
311

 
302

 
9

Non-regulated Operating Revenues
 
16

 
15

 
1

 
28

 
30

 
(2
)
Total Revenues
 
4,246

 
4,181

 
65

 
8,143

 
7,785

 
358

Fuel and Purchased Power
 
1,501

 
1,440

 
61

 
2,858

 
2,645

 
213

Non-fuel O & M
 
947

 
944

 
3

 
1,921

 
1,911

 
10

MC Asset Recovery Insurance Settlement
 

 
(19
)
 
19

 

 
(19
)
 
19

Depreciation and Amortization
 
476

 
445

 
31

 
942

 
886

 
56

Taxes Other Than Income Taxes
 
232

 
228

 
4

 
467

 
453

 
14

Estimated Loss on Kemper IGCC
 
450

 

 
450

 
990

 

 
990

Total Operating Expenses
 
3,606

 
3,038

 
568

 
7,178

 
5,876

 
1,302

Operating Income
 
640

 
1,143

 
(503
)
 
965

 
1,909

 
(944
)
Allowance for Equity Funds Used During Construction
 
45

 
32

 
13

 
86

 
63

 
23

Leveraged Lease Income (Loss)
 
5

 
5

 

 
(16
)
 
11

 
(27
)
Interest Expense, Net of Amounts Capitalized
 
215

 
220

 
(5
)
 
426

 
431

 
(5
)
Other Income (Expense), net
 
(4
)
 
8

 
(12
)
 
(10
)
 

 
(10
)
Income Taxes
 
158

 
329

 
(171
)
 
189

 
529

 
(340
)
Net Income
 
313

 
639

 
(326
)
 
410

 
1,023

 
(613
)
Dividends on Preferred and Preference Stock of Subsidiaries
 
16

 
16

 

 
32

 
32

 

NET INCOME AFTER DIVIDENDS ON PREFERRED AND PREFERENCE STOCK
 
$
297

 
$
623

 
$
(326
)
 
$
378

 
$
991

 
$
(613
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
- Certain prior year data has been reclassified to conform with current year presentation.
 
 
 
 
 
 
 
 
 
 
 
 
 
- All figures in this earnings release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-Q.
 
 
 
 
 
 
 
 
 
 
 
 
 
 


EX-99.06 7 ex9906-kilowattxhoursalesq.htm EXHIBIT Ex. 99.06 - Kilowatt-Hour Sales Q2 2013


Exhibit 99.06
 
Southern Company
Kilowatt-Hour Sales
(In Millions of KWHs)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June
 
Year-to-Date June
As Reported
(See Notes)
 
2013
 
2012
 
Change
 
Weather Adjusted Change
 
2013
 
2012
 
Change
 
Weather Adjusted Change*
Kilowatt-Hour Sales-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Sales
 
44,808

 
46,964

 
(4.6
)%
 
 
 
88,378

 
88,488

 
(0.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Retail Sales-
 
38,392

 
39,550

 
(2.9
)%
 
(0.5
)%
 
75,467

 
75,808

 
(0.4
)%
 
(0.7
)%
Residential
 
11,770

 
12,431

 
(5.3
)%
 
(0.5
)%
 
24,117

 
23,835

 
1.2
 %
 
(0.7
)%
Commercial
 
13,171

 
13,744

 
(4.2
)%
 
(1.6
)%
 
25,272

 
25,702

 
(1.7
)%
 
(0.7
)%
Industrial
 
13,226

 
13,146

 
0.6
 %
 
0.6
 %
 
25,625

 
25,812

 
(0.7
)%
 
(0.7
)%
Other
 
225

 
229

 
(1.9
)%
 
(1.9
)%
 
453

 
459

 
(1.1
)%
 
(1.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Wholesale Sales
 
6,416

 
7,414

 
(13.5
)%
 
N/A

 
12,911

 
12,680

 
1.8
 %
 
N/A

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* Also reflects reclassification of January 2012 KWH sales among customer classes consistent with actual advanced meter data. Use of actual advanced meter data was implemented during the first quarter of 2012.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- Certain prior year data has been reclassified to conform with current year presentation.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- All figures in this earnings release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-Q.


EX-99.07 8 ex9907-financialoverviewq2.htm EXHIBIT Ex. 99.07 - Financial Overview Q2 2013


Exhibit 99.07
 
Southern Company
Financial Overview
As Reported
(In Millions of Dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June
 
Year-to-Date June
 
 
2013
 
2012
 
% Change
 
2013
 
2012
 
% Change
Consolidated –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
4,246

 
$
4,181

 
1.6
 %
 
$
8,143

 
$
7,785

 
4.6
 %
Earnings Before Income Taxes
 
471

 
968

 
(51.3
)%
 
599

 
1,552

 
(61.4
)%
Net Income Available to Common
 
297

 
623

 
(52.3
)%
 
378

 
991

 
(61.9
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Alabama Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
1,392

 
$
1,377

 
1.1
 %
 
$
2,700

 
$
2,593

 
4.1
 %
Earnings Before Income Taxes
 
302

 
321

 
(5.9
)%
 
550

 
541

 
1.7
 %
Net Income Available to Common
 
173

 
185

 
(6.5
)%
 
314

 
311

 
1.0
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Georgia Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
2,042

 
$
2,020

 
1.1
 %
 
$
3,924

 
$
3,765

 
4.2
 %
Earnings Before Income Taxes
 
464

 
452

 
2.7
 %
 
789

 
715

 
10.3
 %
Net Income Available to Common
 
282

 
295

 
(4.4
)%
 
479

 
462

 
3.7
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Gulf Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
371

 
$
370

 
0.3
 %
 
$
697

 
$
686

 
1.6
 %
Earnings Before Income Taxes
 
55

 
59

 
(6.2
)%
 
92

 
93

 
(0.2
)%
Net Income Available to Common
 
33

 
35

 
(6.8
)%
 
54

 
56

 
(2.3
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
Mississippi Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
306

 
$
266

 
15.2
 %
 
$
552

 
$
495

 
11.6
 %
Earnings Before Income Taxes
 
(372
)
 
48

 
N/M

 
(787
)
 
82

 
N/M

Net Income Available to Common
 
(219
)
 
35

 
N/M

 
(465
)
 
60

 
N/M

 
 
 
 
 
 
 
 
 
 
 
 
 
Southern Power –
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues
 
$
307

 
$
286

 
7.5
 %
 
$
610

 
$
539

 
13.1
 %
Earnings Before Income Taxes
 
33

 
76

 
(56.8
)%
 
77

 
119

 
(35.3
)%
Net Income Available to Common
 
28

 
47

 
(40.1
)%
 
57

 
76

 
(24.8
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
N/M - not meaningful
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes
 
 
 
 
 
 
 
 
 
 
 
 
- Mississippi Power Company restated its 2012 financial statements to reflect a pre-tax charge to income for the estimated probable loss on Kemper IGCC of $78 million ($48 million after tax) in 2012. Southern Company evaluated the portion of the estimated probable loss related to 2012 and concluded it was not material to Southern Company. Therefore, Southern Company reflected the pre-tax charge to income for this portion of the estimated probable loss related to 2012 in the first quarter 2013.
 
 
 
 
 
 
 
 
 
 
 
 
 
- Certain prior year data has been reclassified to conform with current year presentation.
 
 
 
 
 
 
 
 
 
 
 
 
 
- All figures in this earnings release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-Q.
 


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