Oct 30, 2019 SOURCE: PR NewsWire
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.
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 (NYSE: SO) is a leading energy company serving 9 million customers through its subsidiaries. The company provides clean, safe, reliable and affordable energy through electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company serving wholesale customers across America, a leading distributed energy infrastructure company, a fiber optics network and telecommunications services. Southern Company brands are known for excellent customer service, high reliability and affordable prices below the national average. For more than a century, we have been building the future of energy and developing the full portfolio of energy resources, including carbon-free nuclear, advanced carbon capture technologies, natural gas, renewables, energy efficiency and storage technology. Through an industry-leading commitment to innovation and a low-carbon future, Southern Company and its subsidiaries develop the customized energy solutions our customers and communities require to drive growth and prosperity. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and govern our business to the benefit of our world. Our corporate culture and hiring practices have been recognized nationally by the U.S. Department of Defense, G.I. Jobs magazine, DiversityInc, Black Enterprise, Forbes and the Women's Choice Award. To learn more, visit www.southerncompany.com.
Southern Company
Financial Highlights
(In Millions of Dollars Except Earnings Per Share)
Three Months Ended Year-to-Date
September 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 Share(1) $
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 Year-to-Date
September 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 Impacts(2) 5 (326) (2,477) (93)
Tax Impact 7 306 1,130 305
Estimated Loss on Plants Under Construction(3) 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
Year-to-Date
September 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
Year-to-Date
September 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 0.03 (1.50)
Impacts(2)
Estimated Loss on Plants Under Construction(3) (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 Year-to-Date
September
2019 vs. 2018 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 Impacts(1) (0.03) 1.50
Estimated Loss on Plants Under Construction(2) 0.80
Wholesale Gas Services(3) 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
Year-to-Date
September 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
Adjusted(1)
2019 2018 Change Weather 2018 Change Weather
Adjusted Adjusted
Change 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
Adjusted(1)
2019 2018 Change Weather 2018 Change Weather
Adjusted Adjusted
Change 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 Electric(1) 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
Year-to-Date
September September
2019 2018 % Change 2019 2018 % Change
Southern Company(1) -
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 Power(1) -
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 Gas(1) -
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.
View original content to download multimedia:http://www.prnewswire.com/news-releases/southern-company-reports-third-quarter-2019-earnings-300947867.html
SOURCE Southern Company
