U.S. Markets open in 9 hrs 19 mins

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