Southern Company reports third-quarter 2019 earnings

ATLANTA, Oct. 30, 2019 /PRNewswire/ -- Southern Company today reported third-quarter 2019 earnings of $1.32 billion, or $1.26 per share, compared with $1.16 billion, or $1.14 per share, in the third quarter of 2018.  For the nine months ended September 30, 2019, Southern Company reported earnings of $4.30 billion, or $4.12 per share, compared with earnings of $1.95 billion, or $1.92 per share, for the same period in 2018. 

Southern Company (PRNewsFoto/Southern Company) (PRNewsfoto/Southern Company)

Excluding the items described in the "Net Income – Excluding Items" table below, Southern Company earned $1.40 billion, or $1.34 per share, during the third quarter of 2019, compared with $1.16 billion, or $1.14 per share, during the third quarter of 2018. For the nine months ended September 30, 2019, excluding these items, Southern Company earned $2.97 billion, or $2.84 per share, compared with earnings of $2.87 billion, or $2.83 per share, for the same period in 2018.

 

Non-GAAP Financial Measures

Three Months Ended September



Year-to-Date September

Net Income - Excluding Items (in millions)

2019

2018



2019

2018

Net Income - As Reported

$1,316

$1,164



$4,298

$1,948

Acquisition, Disposition, and Integration Impacts

5

(326)



(2,477)

(93)

  Tax Impact

7

306



1,130

305

Estimated Loss on Plants Under Construction

3

2



16

1,108

  Tax Impact

(1)

(1)



(4)

(282)

Wholesale Gas Services

14

24



(79)

 

(83)

       Tax Impact

(5)

(6)



18

18

Asset Impairment

92

-



92

-

       Tax Impact

(27)

-



(27)

-

Litigation Settlement

-

-



-

(24)

       Tax Impact

-

-



-

6

Earnings Guidance Comparability Items:











Adoption of Tax Reform

-

-



-

(31)

Net Income – Excluding Items

$1,404

$1,163



$2,967

$2,872

       Average Shares Outstanding – (in millions)                     

1,048

1,023



1,043

1,016

Basic Earnings Per Share – Excluding Items

$1.34

$1.14



$2.84

$2.83

 

NOTE: For more information regarding these non-GAAP adjustments, see the footnotes accompanying the Financial Highlights page of the earnings package.

Earnings drivers year-over-year for the third quarter 2019 were positively influenced by higher revenues associated with changes in rates and pricing, net of usage changes, as well as warmer than normal weather at Southern Company's regulated utilities. These impacts were partially offset by the impact of divested entities on earnings.

"We continue to be pleased with our operational performance through the first three quarters of 2019, as our premier, state-regulated electric and gas franchises provided reliable energy to customers despite the challenge of record-breaking temperatures in our service footprint" said Chairman, President and CEO Thomas A. Fanning. "Our electrical system demonstrated great resilience during these conditions with strong generation availability and record year-to-date transmission performance, resulting in exceptional reliability for customers. Even amid these peak loads, a diverse fuel mix enabled the Southern Company system to reduce carbon emissions by 35% compared to the strongest demand of 2007 – our benchmark year for carbon emissions."

Third quarter 2019 operating revenues were $6.0 billion, compared with $6.2 billion for the third quarter of 2018, a decrease of 2.7 percent. For the nine months ended September 30, 2019, operating revenues were $16.5 billion, compared with $18.2 billion for the corresponding period in 2018, a decrease of 9.1 percent. These decreases reflect the sales of Gulf Power and other assets that are no longer affiliated with Southern Company.

Southern Company's third quarter earnings slides with supplemental financial information are available at http://investor.southerncompany.com.

Southern Company's financial analyst call will begin at 8 a.m. Eastern Time today, during which Fanning and Chief Financial Officer Andrew W. Evans will discuss earnings and provide a general business update. Investors, media and the public may listen to a live webcast of the call and view associated slides at http://investor.southerncompany.com/webcasts. A replay of the webcast will be available on the site for 12 months.

About Southern Company

Southern Company 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

September



Year-to-Date

September

Net Income–As Reported (See Notes)



2019



2018



2019



2018



















  Traditional Electric Operating Companies



$

1,373





$

1,148





$

2,719





$

1,711



  Southern Power



86





92





316





235



Southern Company Gas



(29)





46





347





294



  Total



1,430





1,286





3,382





2,240



  Parent Company and Other



(114)





(122)





916





(292)



  Net Income–As Reported



$

1,316





$

1,164





$

4,298





$

1,948





















  Basic Earnings Per Share1



$

1.26





$

1.14





$

4.12





$

1.92





















  Average Shares Outstanding (in millions)



1,048





1,023





1,043





1,016



  End of Period Shares Outstanding (in millions)











1,049





1,029





















Non-GAAP Financial Measures



Three Months Ended

September



Year-to-Date

September

Net Income–Excluding Items (See Notes)



2019



2018



2019



2018



















  Net Income–As Reported



$

1,316





$

1,164





$

4,298





$

1,948



Acquisition, Disposition, and Integration Impacts2



5





(326)





(2,477)





(93)



Tax Impact



7





306





1,130





305



Estimated Loss on Plants Under Construction3



3





2





16





1,108



Tax Impact



(1)





(1)





(4)





(282)



Wholesale Gas Services4



14





24





(79)





(83)



Tax Impact



(5)





(6)





18





18



Asset Impairment5



92









92







Tax Impact



(27)









(27)







Litigation Settlement6















(24)



Tax Impact















6



Earnings Guidance Comparability Items:

















Adoption of Tax Reform7















(31)



  Net Income–Excluding Items



$

1,404





$

1,163





$

2,967





$

2,872





















  Basic Earnings Per Share–Excluding Items



$

1.34





$

1.14





$

2.84





$

2.83





















-See Notes on the following page.

 

 



Southern Company



Financial Highlights





Notes





















(1)

For the three and nine months ended September 30, 2019 and 2018, dilutive impacts are immaterial ($0.03 or less per share). Diluted earnings per share was $1.25 and $4.09 in the third quarter and year-to-date 2019, respectively, and $1.13 and $1.91 in the third quarter and year-to-date 2018, respectively.





(2)

Earnings for the three months ended September 30, 2019 include an $18 million pre-tax and after-tax impairment charge in contemplation of the sale of PowerSecure Inc.'s lighting services business, partially offset by $13 million pre tax ($6 million after tax) of other acquisition, disposition, and integration impacts. Earnings for the nine months ended September 30, 2019 include a $2.5 billion pre-tax gain ($1.3 billion after tax) on the sale of Gulf Power Company, a $23 million pre-tax ($88 million after tax) gain on the sale of Southern Power Company's Plant Nacogdoches, and $17 million pre tax ($7 million after tax) of other acquisition, disposition, and integration impacts, partially offset by pre-tax and after-tax impairment charges totaling $50 million related to the sale and contemplated sale of PowerSecure Inc.'s utility infrastructure services and lighting businesses, respectively. Earnings for the three months ended September 30, 2018 primarily include: (i) a combined $351 million pre-tax ($38 million after tax) gain on the sales of Elizabethtown Gas, Elkton Gas, and Florida City Gas and (ii) $25 million pre tax ($18 million after tax) of other acquisition, disposition, and integration costs. Earnings for the nine months ended September 30, 2018 primarily include: (i) a net combined $317 million pre-tax gain ($35 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the Pivotal Home Solutions transaction; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with the sales of Plants Stanton and Oleander; and (iv) $63 million pre tax ($46 million after tax) of other acquisition, disposition, and integration costs. Further impacts are expected to be recorded in 2019 in connection with the sale of Gulf Power Company, as well as the pending sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.





(3)

Earnings for the three and nine months ended September 30, 2019 and 2018 include charges and associated legal expenses related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Earnings for the nine months ended September 30, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Additional pre-tax closure costs, including mine reclamation, of up to $20 million for Mississippi Power Company's Kemper IGCC may occur through 2020. Mississippi Power Company is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power Company's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.





















(4)

Earnings for the three and nine months ended September 30, 2019 and 2018 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.





















(5)

Earnings for the three and nine months ended September 30, 2019 include a pre-tax impairment charge of $92 million ($65 million after tax) associated with Southern Company Gas' natural gas storage facility in Louisiana. Further charges associated with this facility are not expected. Southern Company Gas has two other natural gas storage facilities with a combined net book value of $328 million at September 30, 2019. These facilities could be impacted by ongoing U.S. natural gas storage market changes that may imply impacts to future rates and/or asset values, and, if sustained, could trigger impairment.





















(6)

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





















(7)

Earnings for the nine months ended September 30, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected.

 

 

Southern Company

Significant Factors Impacting EPS































Three Months Ended

September



Year-to-Date

September





2019



2018



Change



2019



2018



Change

Earnings Per Share–

























As Reported1 (See Notes)



$

1.26





$

1.14





$

0.12





$

4.12





$

1.92





$

2.20





























  Significant Factors:

























  Traditional Electric Operating Companies











$

0.22













$

0.99



Southern Power











(0.01)













0.08



Southern Company Gas











(0.07)













0.05



Parent Company and Other











0.01













1.19



Increase in Shares











(0.03)













(0.11)



  Total–As Reported











$

0.12













$

2.20

































Three Months Ended

September



Year-to-Date

September

Non-GAAP Financial Measures



2019



2018



Change



2019



2018



Change

Earnings Per Share–

























Excluding Items (See Notes)



$

1.34





$

1.14





$

0.20





$

2.84





$

2.83





$

0.01





























  Total–As Reported











$

0.12













$

2.20



Acquisition, Disposition, and Integration

    Impacts2











0.03













(1.50)



Estimated Loss on Plants Under Construction3























(0.80)



Wholesale Gas Services4











(0.01)















Asset Impairment5











0.06













0.06



Litigation Settlement6























0.02



Adoption of Tax Reform7























0.03



  Total–Excluding Items











$

0.20













$

0.01





























- See Notes on the following page.

 

 



Southern Company



Significant Factors Impacting EPS





















Notes





















(1)

For the three and nine months ended September 30, 2019 and 2018, dilutive impacts are immaterial ($0.03 or less per share). Diluted earnings per share was $1.25 and $4.09 in the third quarter and year-to-date 2019, respectively, and $1.13 and $1.91 in the third quarter and year-to-date 2018, respectively.





(2)

Earnings for the three months ended September 30, 2019 include an $18 million pre-tax and after-tax impairment charge in contemplation of the sale of PowerSecure Inc.'s lighting services business, partially offset by $13 million pre tax ($6 million after tax) of other acquisition, disposition, and integration impacts. Earnings for the nine months ended September 30, 2019 include a $2.5 billion pre-tax gain ($1.3 billion after tax) on the sale of Gulf Power Company, a $23 million pre-tax ($88 million after tax) gain on the sale of Southern Power Company's Plant Nacogdoches, and $17 million pre tax ($7 million after tax) of other acquisition, disposition, and integration impacts, partially offset by pre-tax and after-tax impairment charges totaling $50 million related to the sale and contemplated sale of PowerSecure Inc.'s utility infrastructure services and lighting businesses, respectively. Earnings for the three months ended September 30, 2018 primarily include: (i) a combined $351 million pre-tax ($38 million after tax) gain on the sales of Elizabethtown Gas, Elkton Gas, and Florida City Gas and (ii) $25 million pre tax ($18 million after tax) of other acquisition, disposition, and integration costs. Earnings for the nine months ended September 30, 2018 primarily include: (i) a net combined $317 million pre-tax gain ($35 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the Pivotal Home Solutions transaction; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with the sales of Plants Stanton and Oleander; and (iv) $63 million pre tax ($46 million after tax) of other acquisition, disposition, and integration costs. Further impacts are expected to be recorded in 2019 in connection with the sale of Gulf Power Company, as well as the pending sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.





(3)

Earnings for the three and nine months ended September 30, 2019 and 2018 include charges and associated legal expenses related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Earnings for the nine months ended September 30, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Additional pre-tax closure costs, including mine reclamation, of up to $20 million for Mississippi Power Company's Kemper IGCC may occur through 2020. Mississippi Power Company is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power Company's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.





(4)

Earnings for the three and nine months ended September 30, 2019 and 2018 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.





















(5)

Earnings for the three and nine months ended September 30, 2019 include a pre-tax impairment charge of $92 million ($65 million after tax) associated with Southern Company Gas' natural gas storage facility in Louisiana. Further charges associated with this facility are not expected. Southern Company Gas has two other natural gas storage facilities with a combined net book value of $328 million at September 30, 2019. These facilities could be impacted by ongoing U.S. natural gas storage market changes that may imply impacts to future rates and/or asset values, and, if sustained, could trigger impairment.





















(6)

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





















(7)

Earnings for the nine months ended September 30, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected.

 

 

Southern Company

EPS Earnings Analysis













Description



Three Months Ended

September

2019 vs. 2018



Year-to-Date

September

2019 vs. 2018











Retail Sales



$(0.05)



$(0.10)











Retail Revenue Impacts



0.18



0.33











Weather



0.09



0.05











Wholesale and Other Operating Revenues



0.02



0.05











Non-Fuel O&M





(0.03)











Interest Expense, Depreciation and Amortization, Other



(0.02)



(0.02)











Income Taxes



0.06



0.09











Gulf Power Earnings



(0.06)



(0.14)











Total Traditional Electric Operating Companies



$0.22



$0.23











Southern Power



(0.01)



(0.10)











Southern Company Gas



0.01



0.01











Parent and Other



0.01



(0.05)











Increase in Shares



(0.03)



(0.08)











Total Change in EPS (Excluding Items)



$0.20



$0.01











Acquisition, Disposition, and Integration Impacts1



(0.03)



1.50











Estimated Loss on Plants Under Construction2





0.80











Wholesale Gas Services3



0.01













Asset Impairment4



(0.06)



(0.06)











Litigation Settlement5





(0.02)











Adoption of Tax Reform6





(0.03)











Total Change in EPS (As Reported)



$0.12



$2.20











- See Notes on the following page.

 

 



Southern Company



EPS Earnings Analysis



Three and Nine Months Ended September 2019 vs. September 2018

Notes

































(1)

Earnings for the three months ended September 30, 2019 include an $18 million pre-tax and after-tax impairment charge in contemplation of the sale of PowerSecure Inc.'s lighting services business, partially offset by $13 million pre tax ($6 million after tax) of other acquisition, disposition, and integration impacts. Earnings for the nine months ended September 30, 2019 include a $2.5 billion pre-tax gain ($1.3 billion after tax) on the sale of Gulf Power Company, a $23 million pre-tax ($88 million after tax) gain on the sale of Southern Power Company's Plant Nacogdoches, and $17 million pre tax ($7 million after tax) of other acquisition, disposition, and integration impacts, partially offset by pre-tax and after-tax impairment charges totaling $50 million related to the sale and contemplated sale of PowerSecure Inc.'s utility infrastructure services and lighting businesses, respectively. Earnings for the three months ended September 30, 2018 primarily include: (i) a combined $351 million pre-tax ($38 million after tax) gain on the sales of Elizabethtown Gas, Elkton Gas, and Florida City Gas and (ii) $25 million pre tax ($18 million after tax) of other acquisition, disposition, and integration costs. Earnings for the nine months ended September 30, 2018 primarily include: (i) a net combined $317 million pre-tax gain ($35 million after-tax loss) on the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions; (ii) a $42 million (pre tax and after tax) goodwill impairment charge associated with the Pivotal Home Solutions transaction; (iii) a $119 million pre-tax ($89 million after tax) impairment charge associated with the sales of Plants Stanton and Oleander; and (iv) $63 million pre tax ($46 million after tax) of other acquisition, disposition, and integration costs. Further impacts are expected to be recorded in 2019 in connection with the sale of Gulf Power Company, as well as the pending sale of Plant Mankato. Further costs are also expected to continue to occur in connection with the integration of Southern Company Gas; however, the amount and duration of such expenditures is uncertain.



















(2)

Earnings for the three and nine months ended September 30, 2019 and 2018 include charges and associated legal expenses related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi (Kemper IGCC). Earnings for the nine months ended September 30, 2018 also include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Additional pre-tax closure costs, including mine reclamation, of up to $20 million for Mississippi Power Company's Kemper IGCC may occur through 2020. Mississippi Power Company is also currently evaluating its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the Department of Energy regarding property closeout and disposition, for which the related costs could be material. Further charges for Georgia Power Company's Plant Vogtle Units 3 and 4 may occur; however, the amount and timing of any such charges is uncertain.



















(3)

Earnings for the three and nine months ended September 30, 2019 and 2018 include the Wholesale Gas Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale Gas Services provides investors with an additional measure of operating performance that excludes the volatility resulting from mark-to-market and lower of weighted average cost or current market price accounting adjustments.



















(4)

Earnings for the three and nine months ended September 30, 2019 include a pre-tax impairment charge of $92 million ($65 million after tax) associated with Southern Company Gas' natural gas storage facility in Louisiana. Further charges associated with this facility are not expected. Southern Company Gas has two other natural gas storage facilities with a combined net book value of $328 million at September 30, 2019. These facilities could be impacted by ongoing U.S. natural gas storage market changes that may imply impacts to future rates and/or asset values, and, if sustained, could trigger impairment.





(5)

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



















(6)

Earnings for the nine months ended September 30, 2018 include additional net tax benefits as a result of implementing federal tax reform legislation, which was signed into law in December 2017. During 2018, Southern Company obtained and analyzed additional information that was not initially available or reported as provisional amounts at December 31, 2017. Additional adjustments are not expected.

 

 

Southern Company

Consolidated Earnings

As Reported

(In Millions of Dollars)































Three Months Ended

September



Year-to-Date

September





2019



2018



Change



2019



2018



Change

Income Account-

























Retail Electric Revenues-

























Fuel



$

1,083





$

1,222





$

(139)





$

2,807





$

3,271





$

(464)



Non-Fuel



3,429





3,383





46





8,329





8,642





(313)



Wholesale Electric Revenues



625





698





(73)





1,667





1,937





(270)



Other Electric Revenues



163





165





(2)





492





495





(3)



Natural Gas Revenues



498





492





6





2,661





2,806





(145)



Other Revenues



197





199





(2)





549





1,007





(458)



Total Revenues



5,995





6,159





(164)





16,505





18,158





(1,653)



Fuel and Purchased Power



1,326





1,567





(241)





3,461





4,274





(813)



Cost of Natural Gas



79





104





(25)





956





1,053





(97)



Cost of Other Sales



114





120





(6)





316





688





(372)



Non-Fuel O & M



1,292





1,404





(112)





3,888





4,217





(329)



Depreciation and Amortization



760





787





(27)





2,267





2,338





(71)



Taxes Other Than Income Taxes



303





319





(16)





931





990





(59)



Estimated Loss on Plants Under Construction



4





1





3





10





1,105





(1,095)



Impairment Charges



110





36





74





142





197





(55)



(Gain) Loss on Dispositions, net



(6)





(353)





347





(2,512)





(317)





(2,195)



Total Operating Expenses



3,982





3,985





(3)





9,459





14,545





(5,086)



Operating Income



2,013





2,174





(161)





7,046





3,613





3,433



Allowance for Equity Funds Used During Construction



33





36





(3)





96





99





(3)



Earnings from Equity Method Investments



39





36





3





120





108





12



Interest Expense, Net of Amounts Capitalized



434





458





(24)





1,294





1,386





(92)



Other Income (Expense), net



61





57





4





239





195





44



Income Taxes



367





623





(256)





1,872





598





1,274



Net Income



1,345





1,222





123





4,335





2,031





2,304



Less:

























Dividends on Preferred Stock of Subsidiaries



4





4









11





12





(1)



Net Income Attributable to Noncontrolling Interests



25





54





(29)





26





71





(45)



NET INCOME ATTRIBUTABLE TO SOUTHERN COMPANY



$

1,316





$

1,164





$

152





$

4,298





$

1,948





$

2,350





























Notes



















































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



 

 

Southern Company

Kilowatt-Hour Sales

(In Millions of KWHs)



































Three Months Ended September





As Reported



Adjusted1





2019



2018



Change



Weather

Adjusted

Change



2018



Change



Weather

Adjusted

Change

Kilowatt-Hour Sales-





























Total Sales



56,703





59,501





(4.7)

%







55,898





1.4

%



































Total Retail Sales-



43,090





46,195





(6.7)

%



(9.6)

%



42,789





0.7

%



(2.4)

%

Residential



15,368





16,458





(6.6)

%



(12.4)

%



14,717





4.4

%



(1.9)

%

Commercial



14,404





15,445





(6.7)

%



(9.4)

%



14,298





0.7

%



(2.1)

%

Industrial



13,133





14,097





(6.8)

%



(6.8)

%



13,585





(3.3)

%



(3.3)

%

Other



185





195





(5.4)

%



(5.7)

%



189





(2.2)

%



(2.4)

%































Total Wholesale Sales



13,613





13,306





2.3

%



N/A





13,109





3.8

%



N/A





































Year-to-Date September





As Reported



Adjusted1





2019



2018



Change



Weather

Adjusted

Change



2018



Change



Weather

Adjusted

Change

Kilowatt-Hour Sales-





























Total Sales



150,303





162,605





(7.6)

%







153,409





(2.0)

%



































Total Retail Sales-



114,207





124,209





(8.1)

%



(8.5)

%



115,520





(1.1)

%



(1.7)

%

Residential



37,790





42,115





(10.3)

%



(11.0)

%



37,789





%



(0.9)

%

Commercial



37,776





41,105





(8.1)

%



(8.8)

%



38,112





(0.9)

%



(1.7)

%

Industrial



38,084





40,392





(5.7)

%



(5.7)

%



39,043





(2.5)

%



(2.5)

%

Other



557





597





(6.7)

%



(6.6)

%



576





(3.3)

%



(3.2)

%































Total Wholesale Sales



36,096





38,396





(6.0)

%



N/A





37,889





(4.7)

%



N/A

































Notes



























































(1) Kilowatt-hour sales comparisons to the prior year were significantly impacted by the disposition of Gulf Power

Company on January 1, 2019. These 2018 kilowatt-hour sales and changes exclude Gulf Power Company.

 

 

Southern Company

Customers

(In Thousands of Customers)











































Period Ended September





















2019



2018



Change

Regulated Utility Customers-

























Total Utility Customers-















8,462



8,856



(4.4)%

Total Traditional Electric1















4,254



4,679



(9.1)%

Southern Company Gas















4,208



4,177



0.7%





























































Notes



























































(1) Includes approximately 467,000 customers at September 30, 2018 related to Gulf Power Company, which was

sold on January 1, 2019.

 

 

Southern Company

Financial Overview

As Reported

(In Millions of Dollars)































Three Months Ended

September



Year-to-Date

September





2019



2018



% Change



2019



2018



% Change

Southern Company1

























Operating Revenues



$

5,995





$

6,159





(2.7)

%



$

16,505





$

18,158





(9.1)

%

Earnings Before Income Taxes



1,712





1,845





(7.2)

%



6,207





2,629





136.1

%

Net Income Available to Common



1,316





1,164





13.1

%



4,298





1,948





120.6

%



























Alabama Power –

























Operating Revenues



$

1,841





$

1,740





5.8

%



$

4,762





$

4,716





1.0

%

Earnings Before Income Taxes



617





504





22.4

%



1,288





1,140





13.0

%

Net Income Available to Common



469





373





25.7

%



982





857





14.6

%



























Georgia Power –

























Operating Revenues



$

2,755





$

2,593





6.2

%



$

6,706





$

6,601





1.6

%

Earnings Before Income Taxes



1,094





926





18.1

%



2,064





833





147.8

%

Net Income Available to Common



839





664





26.4

%



1,598





621





157.3

%



























Mississippi Power –

























Operating Revenues



$

370





$

358





3.4

%



$

970





$

956





1.5

%

Earnings Before Income Taxes



80





61





31.1

%



166





110





50.9

%

Net Income Available to Common



65





47





38.3

%



139





86





61.6

%



























Southern Power1

























Operating Revenues



$

574





$

635





(9.6)

%



$

1,527





$

1,699





(10.1)

%

Earnings Before Income Taxes



130





108





20.4

%



301





96





213.5

%

Net Income Available to Common



86





92





(6.5)

%



316





235





34.5

%



























Southern Company Gas1

























Operating Revenues



$

498





$

492





1.2

%



$

2,661





$

2,861





(7.0)

%

Earnings (Loss) Before Income Taxes



(51)





362





(114.1)

%



408





769





(46.9)

%

Net Income (Loss) Available to Common



(29)





46





(163.0)

%



347





294





18.0

%



























Notes



















































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

















(1)

Financial comparisons to the prior year were impacted by (i) Southern Company Gas' disposition of: (a) Pivotal Home Solutions on June 4, 2018, (b) Elizabethtown Gas and Elkton Gas on July 1, 2018, and (c) Florida City Gas on July 29, 2018; (ii) the disposition of Southern Power Company's ownership interest in (a) Plants Oleander and Stanton on December 4, 2018 and (b) Plant Nacogdoches on June 13, 2019; (iii) Southern Power Company's sale of (a) a 33% equity interest in a limited partnership indirectly owning substantially all of its solar facilities on May 22, 2018 and (b) a noncontrolling interest in its subsidiary owning eight operating wind facilities on December 11, 2018; and (iv) Southern Company's disposition of Gulf Power Company on January 1, 2019.

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/southern-company-reports-third-quarter-2019-earnings-300947867.html

SOURCE Southern Company

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