Feb 20, 2019 SOURCE: PR NewsWire
Southern Company reports fourth-quarter and full-year 2018 earnings
ATLANTA, Feb. 20, 2019 /PRNewswire/ -- Southern Company today reported fourth-quarter 2018 earnings of $278 million, or 27 cents per share, compared with earnings of $496 million, or 49 cents per share, in the fourth quarter of 2017. Southern Company also reported full-year 2018 earnings of $2.23 billion, or $2.18 per share, compared with earnings of $842 million, or 84 cents per share, in 2017.
Excluding the items described in the "Net Income - Excluding Items" table below, Southern Company earned $256 million, or 25 cents per share, during the fourth quarter of 2018, compared with $509 million, or 51 cents per share, during the fourth quarter of 2017. For the full-year 2018, excluding these items, Southern Company earned $3.13 billion, or $3.07 per share, compared with earnings of $3.02 billion, or $3.02 per share, in 2017.
Non-GAAP Financial Measures Three Months Ended December Year-to-Date December
---
Net Income - Excluding Items (in millions) 2018 2017 2018 2017
---
Net Income - As Reported $278 $496 $2,226 $842
Estimated Loss on Plants Under Construction (6) 211 1,102 3,366
Tax Impact (94) (25) (376) (975)
Loss on Plant Scherer Unit 3 33
Tax Impact (13)
Acquisition, Disposition, and Integration Impacts 58 16 (35) 35
Tax Impact (11) 10 294 12
Wholesale Gas Services 41 105 (42) 57
Tax Impact (14) (20) 4
Litigation Settlement (24) -
Tax Impact 6 -
Earnings Guidance Comparability Items:
Equity Return Related to Kemper IGCC (47)
Schedule Extension
Tax Impact (9)
Adoption of Tax Reform 4 (284) (27) (284)
---
Net Income - Excluding Items $256 $509 $3,128 $3,017
===
Average Shares Outstanding - (in millions) 1,034 1,007 1,020 1,000
Basic Earnings Per Share - Excluding Items $0.25 $0.51 $3.07 $3.02
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 full year 2018 were positively influenced by effects of constructive regulatory outcomes and weather at the state-regulated utilities. These impacts were partially offset by increases in depreciation and amortization, interest expense and share issuances.
"2018 was a banner year for Southern Company, as we continued to see outstanding operational execution throughout the franchise," said Chairman, President and CEO Thomas A. Fanning. "All of our state-regulated electric and gas companies delivered strong performance. We experienced solid customer growth, and we delivered significant benefits to customers resulting from tax reform while maintaining credit metrics across our businesses. We also saw excellent progress with the construction of the new nuclear units at Georgia Power's Plant Vogtle, achieving our year-end construction targets."
Fourth quarter 2018 operating revenues were $5.34 billion, compared with $5.63 billion for the fourth quarter of 2017, a decrease of 5.2 percent. Operating revenues for the full year 2018 were $23.50 billion, compared with $23.03 billion in 2017, an increase of 2.0 percent.
Southern Company's fourth quarter earnings slides with supplemental financial information, including its earnings guidance for 2019, are available at http://investor.southerncompany.com.
Southern Company's financial analyst call will begin at 8 a.m. Eastern Time today, during which Fanning and Chief Financial Officer Andrew W. Evans will discuss earnings and provide a general business update. Investors, media and the public may listen to a live webcast of the call and view associated slides at http://investor.southerncompany.com/webcasts. A replay of the webcast will be available on the site for 12
months.
About Southern Company
Southern Company (NYSE: SO) is a leading energy company serving 9 million customers through its subsidiaries as of Jan. 1, 2019. 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 Year-to-Date
December
December
Net Income-As Reported (See Notes) 2018 2017 2018 2017
Traditional Electric Operating Companies $
407 $
(191) $
2,117 $
(193)
Southern Power (48) 795 187 1,071
Southern Company Gas 78 (60) 372 243
Total 437 544 2,676 1,121
Parent Company and Other (159) (48) (450) (279)
Net Income-As Reported $
278 $
496 $
2,226 $
842
Basic Earnings Per Share(1) $
0.27 $
0.49 $
2.18 $
0.84
Average Shares Outstanding (in millions) 1,034 1,007 1,020 1,000
End of Period Shares Outstanding (in millions) 1,034 1,008
Non-GAAP Financial Measures Three Months Ended Year-to-Date
December
December
Net Income-Excluding Items (See Notes) 2018 2017 2018 2017
Net Income-As Reported $
278 $
496 $
2,226 $
842
Estimated Loss on Plants Under Construction(2) (6) 211 1,102 3,366
Tax Impact (94) (25) (376) (975)
Loss on Plant Scherer Unit 3(3) 33
Tax Impact (13)
Acquisition, Disposition, and Integration Impacts4 58 16 (35) 35
Tax Impact (11) 10 294 12
Wholesale Gas Services5 41 105 (42) 57
Tax Impact (14) (20) 4
Litigation Settlement6 (24)
Tax Impact 6
Earnings Guidance Comparability Items:
Equity Return Related to Kemper IGCC (47)
Schedule Extension7
Tax Impact (9)
Adoption of Tax Reform8 4 (284) (27) (284)
Net Income-Excluding Items $
256 $
509 $
3,128 $
3,017
Basic Earnings Per Share-Excluding Items $
0.25 $
0.51 $
3.07 $
3.02
-See Notes on the following page.
Southern Company
Financial Highlights
Notes
---
(1) For the three and twelve months ended December 31, 2018 and
2017, dilution does not change basic earnings per share by more
than 1 cent and is not material.
(2) Earnings for the three and twelve months ended December 31,
2018 and 2017 include charges and associated legal expenses
related to Mississippi Power's integrated coal gasification
combined cycle facility project in Kemper County, Mississippi
(Kemper IGCC). Additionally, the three and twelve months ended
December 31, 2018 include a $95 million credit to earnings
primarily resulting from the reduction of a state income tax
valuation allowance recorded in the twelve months ended December
31, 2017 related to a net operating loss carryforward associated
with the Kemper IGCC. Earnings for the twelve months ended
December 31, 2018 also include a $1.1 billion charge ($0.8
(3) Earnings for the twelve months ended December 31, 2017
include a $32.5 million write-down ($20 million after tax) of
Gulf Power's ownership of Plant Scherer Unit 3 as a result of
its 2017 retail rate case settlement.
(4) Earnings for the three months ended December 31, 2018
include: (i) a net combined $27 million pre-tax loss (net
combined $15 million after-tax loss) in connection with the
finalization of the gain and loss calculations for the sales of
Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal
Home Solutions by Southern Company Gas and (ii) other
acquisition, disposition, and integration costs of $31 million
pre tax ($32 million after tax, which includes $10 million
related to reapportioning state income taxes as a result of the
dispositions). Earnings for the twelve months ended December 31,
2018 include: (i) a net combined $291 million pre-tax gain ($51
(5) Earnings for the three and twelve months ended December 31,
2018 and 2017 include the Wholesale Gas Services business of
Southern Company Gas. Presenting earnings and earnings per share
excluding Wholesale Gas Services provides investors with an
additional measure of operating performance that excludes the
volatility resulting from mark-to-market and lower of weighted
average cost or current market price accounting adjustments.
(6) Earnings for the twelve months ended December 31, 2018
include the settlement proceeds of Mississippi Power'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 twelve months ended December 31, 2017
include allowance for funds used during construction (AFUDC)
equity as a result of extending the Kemper IGCC construction
schedule beyond November 30, 2016, as assumed when Southern
Company issued its 2017 guidance. As a result, Southern Company
believes presentation of earnings per share excluding these
amounts provides investors with information comparable to
guidance. Management also used such measures to evaluate
Southern Company's 2017 performance. AFUDC equity ceased in
connection with the project's suspension in June 2017.
(8) Earnings for the three and twelve months ended December 31,
2018 and 2017 include net tax impacts 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 believes presentation of earnings per share
excluding these amounts provides investors with information
comparable to guidance. Management also used such measures to
evaluate Southern Company's performance.
Southern Company
Significant Factors Impacting EPS
Three Months Ended
Year-to-Date
December December
2018 2017 Change 2018 2017 Change
Earnings Per Share-
As Reported1 (See Notes) $
0.27 $
0.49 $
(0.22) $
2.18 $
0.84 $
1.34
Significant Factors:
Traditional Electric Operating Companies $
0.59 $
2.31
Southern Power (0.84) (0.88)
Southern Company Gas 0.14 0.13
Parent Company and Other (0.10) (0.18)
Increase in Shares (0.01) (0.04)
Total-As Reported $
(0.22) $
1.34
Three Months Ended
Year-to-Date
December December
Non-GAAP Financial Measures 2018 2017 Change 2018 2017 Change
Earnings Per Share-
Excluding Items (See Notes) $
0.25 $
0.51 $
(0.26) $
3.07 $
3.02 $
0.05
Total-As Reported $
(0.22) $
1.34
Estimated Loss on Plants Under Construction(2) (0.29) (1.62)
Loss on Plant Scherer Unit 3(3) (0.02)
Acquisition, Disposition, and Integration 0.02 0.21
Impacts4
Wholesale Gas Services5 (0.05) (0.09)
Litigation Settlement6 (0.02)
Adoption of Tax Reform7 0.28 0.25
Total-Excluding Items $
(0.26) $
0.05
- See Notes on the following page.
Southern Company
Significant Factors Impacting EPS
Notes
---
(1) For the three and twelve months ended December 31, 2018 and 2017, dilution does not change basic
earnings per share by more than 1 cent and is not material.
(2) Earnings for the three and twelve months ended December 31, 2018 and 2017 include charges and associated
legal expenses related to Mississippi Power's integrated coal gasification combined cycle facility project
in Kemper County, Mississippi (Kemper IGCC). Additionally, the three and twelve months ended December 31,
2018 include a $95 million credit to earnings primarily resulting from the reduction of a state income tax
valuation allowance recorded in the twelve months ended December 31, 2017 related to a net operating loss
carryforward associated with the Kemper IGCC. Earnings for the twelve months ended December 31, 2018 also
include a $1.1 billion charge ($0.8 billion after tax) for an estimated probable loss on Georgia Power's
construction of Plant Vogtle Units 3 and 4. These items significantly impacted the presentation of earnings
and earnings per share. Additional pre-tax closure costs, including mine reclamation, of up to $25 million
for Mississippi Power's Kemper IGCC may occur through 2020. Mississippi Power is also currently evaluating
its options regarding the final disposition of the carbon dioxide pipeline and is in discussions with the
Earnings for the twelve months ended December 31, 2017 include allowance for funds used during construction
(AFUDC) equity as a result of extending the Kemper IGCC construction schedule beyond November 30, 2016, as
assumed when Southern Company issued its 2017 guidance. As a result, Southern Company believes presentation
of earnings per share excluding these amounts provides investors with information comparable to guidance.
Management also used such measures to evaluate Southern Company's 2017 performance. AFUDC equity ceased in
connection with the project's suspension in June 2017.
(3) Earnings for the twelve months ended December 31, 2017 include a $32.5 million write-down ($20 million
after tax) of Gulf Power's ownership of Plant Scherer Unit 3 as a result of its 2017 retail rate case
settlement.
(4) Earnings for the three months ended December 31, 2018 include: (i) a net combined $27 million pre-tax
loss (net combined $15 million after-tax loss) in connection with the finalization of the gain and loss
calculations for the sales of Elizabethtown Gas, Elkton Gas, Florida City Gas, and Pivotal Home Solutions
by Southern Company Gas and (ii) other acquisition, disposition, and integration costs of $31 million pre
tax ($32 million after tax, which includes $10 million related to reapportioning state income taxes as a
result of the dispositions). Earnings for the twelve months ended December 31, 2018 include: (i) a net
combined $291 million pre-tax gain ($51 million after-tax loss) on the sales of Elizabethtown Gas, Elkton
Gas, Florida City Gas, and Pivotal Home Solutions by Southern Company Gas; (ii) a $42 million (pre tax and
after tax) goodwill impairment charge associated with the sale of Pivotal Home Solutions; (iii) a $119
million pre-tax ($89 million after tax) impairment charge associated with Southern Power's disposition of
Plants Stanton and Oleander; and (iv) $95 million pre tax ($77 million after tax) of other acquisition,
(5) Earnings for the three and twelve months ended December 31, 2018 and 2017 include the Wholesale Gas
Services business of Southern Company Gas. Presenting earnings and earnings per share excluding Wholesale
Gas Services provides investors with an additional measure of operating performance that excludes the
volatility resulting from mark-to-market and lower of weighted average cost or current market price
accounting adjustments.
(6) Earnings for the twelve months ended December 31, 2018 include the settlement proceeds of Mississippi
Power'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 three and twelve months ended December 31, 2018 and 2017 include net tax impacts 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 believes presentation of earnings per share excluding these amounts provides investors with
information comparable to guidance. Management also used such measures to evaluate Southern Company's
performance.
Southern Company
EPS Earnings Analysis
Description Three Months Ended Year-to-Date
December December
2018 vs. 2017 2018 vs. 2017
---
Retail Sales $0.01 $0.05
Retail Revenue Impacts, Excluding Tax Reform Changes (0.10) (0.08)
Weather 0.18
Other Operating Revenues (0.01)
Purchased Power Capacity Expense 0.01
Non-Fuel O&M 0.01 0.02
Depreciation and Amortization (0.01) (0.07)
Taxes Other Than Income Taxes (0.02)
Gain on Dispositions, Net (0.02) (0.02)
Interest Expense 0.01 (0.02)
Other Income and Deductions 0.01
Impacts of Tax Reform (Ongoing Basis), Net of Amounts (0.04) 0.15
to be Returned to Customers
Income Taxes, Excluding Tax Reform (0.04)
Dividends on Preferred and Preference Stock 0.02
Total Traditional Electric Operating Companies $(0.14) $0.18
---
Southern Power (0.03) 0.02
Southern Company Gas (0.01) 0.04
Parent and Other (0.07) (0.13)
Increase in Shares (0.01) (0.06)
Total Change in EPS (Excluding Items) $(0.26) $0.05
---
Estimated Loss on Plants Under Construction(1) 0.29 1.62
Loss on Plant Scherer Unit 3(2) 0.02
Acquisition, Disposition, and Integration Impacts(3) (0.02) (0.21)
Wholesale Gas Services4 0.05 0.09
Litigation Settlement5 0.02
Adoption of Tax Reform6 (0.28) (0.25)
Total Change in EPS (As Reported) $(0.22) $1.34
---
- See Notes on the following page.
Southern Company
EPS Earnings Analysis
Three and Twelve Months Ended
December 2018 vs. December 2017
Notes
---
(1) Earnings for the three and
twelve months ended December 31,
2018 and 2017 include charges and
associated legal expenses related
to Mississippi Power's integrated
coal gasification combined cycle
facility project in Kemper County,
Mississippi (Kemper IGCC).
Additionally, the three and twelve
months ended December 31, 2018
include a $95 million credit to
earnings primarily resulting from
the reduction of a state income
tax valuation allowance recorded
in the twelve months ended
December 31, 2017 related to a net
operating loss carryforward
associated with the Kemper IGCC.
Earnings for the twelve months
ended December 31, 2018 also
include a $1.1 billion charge
($0.8 billion after tax) for an
estimated probable loss on Georgia
Power's construction of Plant
Vogtle Units 3 and 4. These items
significantly impacted the
presentation of earnings and
earnings per share. Additional
pre-tax closure costs, including
mine reclamation, of up to $25
million for Mississippi Power's
Kemper IGCC may occur through
2020. Mississippi Power 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's Plant Vogtle Units
3 and 4 may occur; however, the
amount and timing of any such
charges is uncertain.
Earnings for the twelve months
ended December 31, 2017 include
allowance for funds used during
construction (AFUDC) equity as a
result of extending the Kemper
IGCC construction schedule beyond
November 30, 2016, as assumed when
Southern Company issued its 2017
guidance. As a result, Southern
Company believes presentation of
earnings per share excluding these
amounts provides investors with
information comparable to
guidance. Management also used
such measures to evaluate Southern
Company's 2017 performance. AFUDC
equity ceased in connection with
the project's suspension in June
2017.
(2) Earnings for the twelve months
ended December 31, 2017 include a
$32.5 million write-down ($20
million after tax) of Gulf Power's
ownership of Plant Scherer Unit 3
as a result of its 2017 retail
rate case settlement.
(3) Earnings for the three months
ended December 31, 2018 include:
(i) a net combined $27 million
pre-tax loss (net combined $15
million after-tax loss) in
connection with the finalization
of the gain and loss calculations
for the sales of Elizabethtown
Gas, Elkton Gas, Florida City Gas,
and Pivotal Home Solutions by
Southern Company Gas and (ii)
other acquisition, disposition,
and integration costs of $31
million pre tax ($32 million after
tax, which includes $10 million
related to reapportioning state
income taxes as a result of the
dispositions). Earnings for the
twelve months ended December 31,
2018 include: (i) a net combined
$291 million pre-tax gain ($51
million after-tax loss) on the
sales of Elizabethtown Gas, Elkton
Gas, Florida City Gas, and Pivotal
Home Solutions by Southern Company
Gas; (ii) a $42 million (pre tax
and after tax) goodwill impairment
charge associated with the sale of
Pivotal Home Solutions; (iii) a
$119 million pre-tax ($89 million
after tax) impairment charge
associated with Southern Power's
disposition of Plants Stanton and
Oleander; and (iv) $95 million pre
tax ($77 million after tax) of
other acquisition, disposition,
and integration costs. Earnings
for the three and twelve months
ended December 31, 2017 include
other acquisition, disposition,
and integration costs related to
the acquisition of Southern
Company Gas and the dispositions
of Elizabethtown Gas and Elkton
Gas. Further impacts are expected
to be recorded in 2019 including a
preliminary gain of $2.5 billion
pre tax ($1.3 billion after tax)
in connection with the sale of
Gulf Power, as well as impacts
related to Southern Power's
announced 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.
(4) Earnings for the three and
twelve months ended December 31,
2018 and 2017 include the
Wholesale Gas Services business of
Southern Company Gas. Presenting
earnings and earnings per share
excluding Wholesale Gas Services
provides investors with an
additional measure of operating
performance that excludes the
volatility resulting from mark-
to-market and lower of weighted
average cost or current market
price accounting adjustments.
(5) Earnings for the twelve months
ended December 31, 2018 include
the settlement proceeds of
Mississippi Power'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 three and
twelve months ended December 31,
2018 and 2017 include net tax
impacts 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 believes
presentation of earnings per share
excluding these amounts provides
investors with information
comparable to guidance. Management
also used such measures to
evaluate Southern Company's
performance.
Southern Company
Consolidated Earnings
As Reported
(In Millions of Dollars)
Three Months Ended
Year-to-Date
December
December
2018 2017
Change 2018 2017 Change
Income Account-
Retail Electric Revenues-
Fuel $
1,012 $
966 $
46 $
4,283 $
4,095 $
188
Non-Fuel 2,297 2,578 (281) 10,939 11,235 (296)
Wholesale Electric Revenues 579 559 20 2,516 2,426 90
Other Electric Revenues 166 171 (5) 664 681 (17)
Natural Gas Revenues 1,048 1,045 3 3,854 3,791 63
Other Revenues 235 310 (75) 1,239 803 436
Total Revenues 5,337 5,629 (292) 23,495 23,031 464
Fuel and Purchased Power 1,334 1,245 89 5,608 5,263 345
Cost of Natural Gas 486 515 (29) 1,539 1,601 (62)
Cost of Other Sales 118 220 (102) 806 513 293
Non-Fuel O & M 1,672 1,640 32 5,889 5,739 150
Depreciation and Amortization 793 774 19 3,131 3,010 121
Taxes Other Than Income Taxes 325 309 16 1,315 1,250 65
Estimated Loss on Plants Under Construction (8) 207 (215) 1,097 3,362 (2,265)
Impairment Charges 13 13 210 210
Gain on Dispositions, net 26 (20) 46 (291) (40) (251)
Total Operating Expenses 4,759 4,890 (131) 19,304 20,698 (1,394)
Operating Income 578 739 (161) 4,191 2,333 1,858
Allowance for Equity Funds Used During 39 27 12 138 160 (22)
Construction
Earnings from Equity Method Investments 40 6 34 148 106 42
Interest Expense, Net of Amounts Capitalized 456 446 10 1,842 1,694 148
Other Income (Expense), net (81) (1) (80) 114 163 (49)
Income Taxes (149) (175) 26 449 142 307
Net Income 269 500 (231) 2,300 926 1,374
Less:
Dividends on Preferred and Preference Stock 4 6 (2) 16 38 (22)
of Subsidiaries
Net Income Attributable to Noncontrolling (13) (2) (11) 58 46 12
Interests
NET INCOME ATTRIBUTABLE TO $
278 $
496 $
(218) $
2,226 $
842 $
1,384
SOUTHERN COMPANY
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 December
Year-to-Date December
As Reported 2018 2017
Change
Weather 2018 2017 Change
Weather
Adjusted Adjusted
Change Change
Kilowatt-Hour Sales-
Total Sales 49,539 49,915 (0.8) 212,144 205,541 3.2
% %
Total Retail Sales- 37,973 37,705 0.7 0.3
% 162,182 156,507 3.6 0.9
% % %
Residential 12,475 12,034 3.7 2.2
% 54,590 50,536 8.0 1.2
% % %
Commercial 12,346 12,333 0.1 0.3
% 53,451 52,340 2.1 0.5
% % %
Industrial 12,949 13,130 (1.4) (1.4)
% 53,341 52,785 1.1 1.1
% % %
Other 203 208 (3.1) (3.2)
% 800 846 (5.5) (5.7)
% % %
Total Wholesale Sales 11,566 12,210 (5.3) N/A 49,962 49,034 1.9
% % N/A
(In Thousands of Customers)
Period Ended December
2018 2017 Change
Regulated Utility Customers-
Total Utility Customers(1)- 8,933 9,263 (3.6)
%
Total Traditional Electric 4,685 4,640 1.0
%
Southern Company Gas(1) 4,248 4,623 (8.1)
%
Notes
---
(1) Includes total customers of approximately 407,000 at December 31, 2017 related to Elizabethtown Gas, Elkton Gas, and Florida City Gas,
which were sold in July 2018.
Southern Company
Financial Overview
As Reported
(In Millions of Dollars)
Three Months Ended
Year-to-Date
December
December
2018 2017 % Change 2018 2017 % Change
Southern Company(1) -
Operating Revenues $
5,337 $
5,629 (5.2) $
23,495 $
23,031 2.0
% %
Earnings Before Income Taxes 120 325 (63.1) 2,749 1,068 157.4
%
%
Net Income Available to Common 278 496 (44.0) 2,226 842 164.4
%
%
Alabama Power -
Operating Revenues $
1,316 $
1,433 (8.2) $
6,032 $
6,039 (0.1)
%
%
Earnings Before Income Taxes 96 198 (51.5) 1,236 1,434 (13.8)
% %
Net Income Available to Common 73 119 (38.7) 930 848 9.7
% %
Georgia Power -
Operating Revenues $
1,818 $
1,884 (3.5) $
8,420 $
8,310 1.3
% %
Earnings Before Income Taxes 175 352 (50.3) 1,007 2,258 (55.4)
% %
Net Income Available to Common 173 227 (23.8) 793 1,414 (43.9)
% %
Gulf Power -
Operating Revenues $
359 $
372 (3.5) $
1,465 $
1,516 (3.4)
%
%
Earnings Before Income Taxes (6) 30 (120.0) 140 229 (38.9)
% %
Net Income Available to Common 13 19 (31.6) 160 135 18.5
% %
Mississippi Power -
Operating Revenues $
308 $
271 13.7 $
1,265 $
1,187 6.6
% %
Earnings (Loss) Before Income Taxes 24 (202) N/M 134 (3,120) N/M
Net Income (Loss) Available to Common 149 (556) N/M 235 (2,590) N/M
Southern Power(1) -
Operating Revenues $
506 $
478 5.9 $
2,205 $
2,075 6.3
% %
Earnings Before Income Taxes (14) (17) N/M 82 178 (53.9)
%
Net Income Available to Common (48) 795 N/M 187 1,071 (82.5)
%
Southern Company Gas1 -
Operating Revenues $
1,048 $
1,079 (2.9) $
3,909 $
3,920 (0.3)
%
%
Earnings Before Income Taxes 67 74 (9.5) 836 610 37.0
% %
Net Income Available to Common 78 (60) N/M 372 243 53.1
%
N/M - not meaningful
Notes
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- 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 Plants Oleander and Stanton on
December 4, 2018; and (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.
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SOURCE Southern Company
