ATLANTA, April 29, 2015 /PRNewswire/ -- Southern Company today reported first-quarter 2015 earnings of $508 million, or 56 cents a share, compared with earnings of $351 million, or 39 cents a share, in the first quarter of 2014.
The first-quarter results for 2015 include a $6 million after-tax charge related to an increased construction estimate for Mississippi Power's Kemper integrated gasification combined cycle (IGCC) project. The first-quarter results for 2014 included a $235 million (27 cents per share) after-tax charge for the Kemper IGCC project. Excluding these items, Southern Company earned $514 million, or 56 cents per share, during the first quarter of 2015 compared to $586 million, or 66 cents per share, in the first quarter of 2014.
Earnings for the first quarter of 2015 were positively influenced by retail revenue effects at Southern Company's traditional operating companies, offset by milder winter weather compared to 2014 and increased operating and maintenance expenses.
"We are encouraged by positive customer growth during the first quarter of 2015, along with strong industrial sales and an economic development pipeline that remains robust," said Southern Company Chairman, President and CEO Thomas A. Fanning. "In the meantime, we remain focused on our core business strategy of providing clean, safe, reliable and affordable electricity to customers throughout the Southeast."
First-quarter 2015 operating revenues were $4.18 billion, compared with $4.64 billion for the same period in 2014, a decrease of 9.9 percent quarter over quarter.
Kilowatt-hour sales to retail customers in Southern Company's four-state service area decreased 1.2 percent in the first quarter of 2015 compared with the first quarter of 2014. Due primarily to milder winter weather than in 2014, residential and commercial energy sales decreased 4.2 percent and 1.1 percent, respectively, while industrial energy sales increased 1.9 percent.
Total energy sales to Southern Company's customers in the Southeast, including wholesale sales, decreased 3.3 percent in the first quarter of 2015 compared with the same period in 2014.
Southern Company's financial analyst call will begin at 1 p.m. Eastern time today, during which Fanning and Chief Financial Officer Art P. Beattie will discuss earnings and provide a general business update. Investors, media and the public may listen to a live webcast of the call and view associated slides at http://investor.southerncompany.com/webcasts. A replay of the webcast will be available at the site for 12 months.
Southern Company has also posted on its website detailed financial information on its first-quarter performance. These materials are available at www.southerncompany.com.
With more than 4.5 million customers and approximately 46,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving the Southeast through its subsidiaries. A leading U.S. producer of clean, safe, reliable and affordable electricity, Southern Company owns electric utilities in four states and a growing competitive generation company, as well as fiber optics and wireless communications. Southern Company brands are known for energy innovation, excellent customer service, high reliability and retail electric prices that are below the national average. Southern Company and its subsidiaries are leading the nation's nuclear renaissance through the construction of the first new nuclear units to be built in a generation of Americans and are demonstrating their commitment to energy innovation through the development of a state-of-the-art coal gasification plant. Southern Company has been recognized by the U.S. Department of Defense and G.I. Jobs magazine as a top military employer, listed by DiversityInc as a top company for Blacks and designated a 2014 Top Employer for Hispanics by Hispanic Network. The company received the Edison Award from the Edison Electric Institute for its leadership in new nuclear development, was named Electric Light & Power magazine's Utility of the Year for 2012 and is continually ranked among the top utilities in Fortune's annual World's Most Admired Electric and Gas Utility rankings. Visit our website at www.southerncompany.com.
| Southern Company |
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| Financial Highlights |
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| (In Millions of Dollars Except Earnings Per Share) |
||||||||
| Three Months Ended March |
||||||||
| 2015 |
2014 |
|||||||
| Consolidated Earnings–As Reported |
||||||||
| (See Notes) |
||||||||
| Traditional Operating Companies |
$ |
477 |
$ |
318 |
||||
| Southern Power |
33 |
33 |
||||||
| Total |
510 |
351 |
||||||
| Parent Company and Other |
(2) |
— |
||||||
| Net Income–As Reported |
$ |
508 |
$ |
351 |
||||
| Basic Earnings Per Share |
$ |
0.56 |
$ |
0.39 |
||||
| Average Shares Outstanding (in millions) |
910 |
890 |
||||||
| End of Period Shares Outstanding (in millions) |
908 |
891 |
||||||
| Three Months Ended March |
||||||||
| 2015 |
2014 |
|||||||
| Consolidated Earnings–Excluding Items |
||||||||
| (See Notes) |
||||||||
| Net Income–As Reported |
$ |
508 |
$ |
351 |
||||
| Estimated Loss on Kemper IGCC |
6 |
235 |
||||||
| Net Income–Excluding Items |
$ |
514 |
$ |
586 |
||||
| Basic Earnings Per Share–Excluding Items |
$ |
0.56 |
$ |
0.66 |
||||
| Notes |
||||||||
| - For the three months ended March 31, 2015 and 2014, dilution does not change basic earnings per share by more than 1 cent and is not material. |
||||||||
| - The estimated probable losses relating to Mississippi Power Company's construction of the integrated coal gasification combined cycle facility in Kemper County, Mississippi (Kemper IGCC) significantly impacted the presentation of earnings and earnings per share for the three months ended March 31, 2014 and any similar charges may occur with uncertain frequency. |
||||||||
| - All figures in this earnings release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-Q. |
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| Southern Company |
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| Significant Factors Impacting EPS |
|||||||||||||
| Three Months Ended March |
|||||||||||||
| 2015 |
2014 |
Change |
|||||||||||
| Consolidated Earnings Per Share– |
|||||||||||||
| As Reported (See Notes) |
$ |
0.56 |
$ |
0.39 |
$ |
0.17 |
|||||||
| Significant Factors: |
|||||||||||||
| Traditional Operating Companies |
$ |
0.18 |
|||||||||||
| Increase in Shares |
(0.01) |
||||||||||||
| Total–As Reported |
$ |
0.17 |
|||||||||||
| Three Months Ended March |
|||||||||||||
| 2015 |
2014 |
Change |
|||||||||||
| Consolidated Earnings Per Share– |
|||||||||||||
| Excluding Items (See Notes) |
$ |
0.56 |
$ |
0.66 |
$ |
(0.10) |
|||||||
| Total–As Reported |
$ |
0.17 |
|||||||||||
| Estimated Loss on Kemper IGCC |
(0.27) |
||||||||||||
| Total–Excluding Items |
$ |
(0.10) |
|||||||||||
| Notes |
|||||||||||||
| - For the three months ended March 31, 2015 and 2014, dilution does not change basic earnings per share by more than 1 cent and is not material. |
|||||||||||||
| - The estimated probable losses relating to Mississippi Power Company's construction of the integrated coal gasification combined cycle facility in Kemper County, Mississippi (Kemper IGCC) significantly impacted the presentation of earnings and earnings per share for the three months ended March 31, 2014 and any similar charges may occur with uncertain frequency. |
|||||||||||||
| - All figures in this earnings release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-Q. |
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| Southern Company |
|
| EPS Earnings Analysis |
|
| Three Months Ended March 2015 vs. March 2014 |
|
| Cents |
Description |
| 1¢ |
Retail Sales |
| 5 |
Retail Revenue Impacts |
| (3) |
Weather |
| (3) |
Wholesale Operations |
| (10) |
Non-Fuel O&M |
| 1 |
Depreciation and Amortization |
| 1 |
Other Income and Deductions |
| (1) |
Interest Expense |
| (9)¢ |
Total Traditional Operating Companies |
| (1) |
Increase in Shares |
| (10)¢ |
Total Change in EPS (x-Items) |
| 27 |
Estimated Loss on Kemper IGCC |
| 17¢ |
Total Change in EPS (As Reported) |
| Notes |
|
| - The estimated probable losses relating to Mississippi Power Company's construction of the integrated coal gasification combined cycle facility in Kemper County, Mississippi (Kemper IGCC) significantly impacted the presentation of earnings and earnings per share for the three months ended March 31, 2014 and any similar charges may occur with uncertain frequency. |
|
| - All figures in this earnings release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-Q. |
|
| Southern Company |
||||||||||||
| Consolidated Earnings |
||||||||||||
| As Reported |
||||||||||||
| (In Millions of Dollars) |
||||||||||||
| Three Months Ended March |
||||||||||||
| 2015 |
2014 |
Change |
||||||||||
| Income Account- |
||||||||||||
| Retail Revenues- |
||||||||||||
| Fuel |
$ |
1,088 |
$ |
1,476 |
$ |
(388) |
||||||
| Non-Fuel |
2,454 |
2,382 |
72 |
|||||||||
| Wholesale Revenues |
467 |
604 |
(137) |
|||||||||
| Other Electric Revenues |
163 |
165 |
(2) |
|||||||||
| Other Revenues |
11 |
17 |
(6) |
|||||||||
| Total Revenues |
4,183 |
4,644 |
(461) |
|||||||||
| Fuel and Purchased Power |
1,356 |
1,834 |
(478) |
|||||||||
| Non-Fuel O & M |
1,122 |
986 |
136 |
|||||||||
| Depreciation and Amortization |
487 |
497 |
(10) |
|||||||||
| Taxes Other Than Income Taxes |
252 |
247 |
5 |
|||||||||
| Estimated Loss on Kemper IGCC |
9 |
380 |
(371) |
|||||||||
| Total Operating Expenses |
3,226 |
3,944 |
(718) |
|||||||||
| Operating Income |
957 |
700 |
257 |
|||||||||
| Allowance for Equity Funds Used During Construction |
63 |
57 |
6 |
|||||||||
| Interest Expense, Net of Amounts Capitalized |
213 |
206 |
7 |
|||||||||
| Other Income (Expense), net |
(8) |
(7) |
(1) |
|||||||||
| Income Taxes |
274 |
176 |
98 |
|||||||||
| Net Income |
525 |
368 |
157 |
|||||||||
| Dividends on Preferred and Preference Stock of Subsidiaries |
17 |
17 |
— |
|||||||||
| NET INCOME AFTER DIVIDENDS ON PREFERRED AND PREFERENCE STOCK |
$ |
508 |
$ |
351 |
$ |
157 |
||||||
| Notes |
||||||||||||
| - Certain prior year data may have been reclassified to conform with current year presentation. |
||||||||||||
| - All figures in this earnings release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-Q. |
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| Southern Company |
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| Kilowatt-Hour Sales |
||||||||||||
| (In Millions of KWHs) |
||||||||||||
| Three Months Ended March |
||||||||||||
| As Reported |
2015 |
2014 |
Change |
Weather |
||||||||
| Kilowatt-Hour Sales- |
||||||||||||
| Total Sales |
46,244 |
47,802 |
(3.3) |
% |
||||||||
| Total Retail Sales- |
39,209 |
39,699 |
(1.2) |
% |
1.0 |
% |
||||||
| Residential |
13,577 |
14,174 |
(4.2) |
% |
0.2 |
% |
||||||
| Commercial |
12,415 |
12,548 |
(1.1) |
% |
0.7 |
% |
||||||
| Industrial |
12,988 |
12,749 |
1.9 |
% |
2.0 |
% |
||||||
| Other |
229 |
228 |
0.6 |
% |
0.8 |
% |
||||||
| Total Wholesale Sales |
7,035 |
8,103 |
(13.2) |
% |
N/A |
|||||||
| Note |
||||||||||||
| *Also reflects adjustment of first quarter 2014 KWH sales consistent with Mississippi Power's updated methodology to estimate the unbilled revenue allocation among customer classes implemented in the first quarter 2015. |
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| Southern Company |
|||||||||||
| Financial Overview |
|||||||||||
| As Reported |
|||||||||||
| (In Millions of Dollars) |
|||||||||||
| Three Months Ended March |
|||||||||||
| 2015 |
2014 |
% Change |
|||||||||
| Consolidated – |
|||||||||||
| Operating Revenues |
$ |
4,183 |
$ |
4,644 |
(9.9) |
% |
|||||
| Earnings Before Income Taxes |
799 |
544 |
46.9 |
% |
|||||||
| Net Income Available to Common |
508 |
351 |
44.7 |
% |
|||||||
| Alabama Power – |
|||||||||||
| Operating Revenues |
$ |
1,401 |
$ |
1,508 |
(7.1) |
% |
|||||
| Earnings Before Income Taxes |
292 |
324 |
(9.9) |
% |
|||||||
| Net Income Available to Common |
169 |
187 |
(9.6) |
% |
|||||||
| Georgia Power – |
|||||||||||
| Operating Revenues |
$ |
1,978 |
$ |
2,269 |
(12.8) |
% |
|||||
| Earnings Before Income Taxes |
380 |
436 |
(12.8) |
% |
|||||||
| Net Income Available to Common |
236 |
266 |
(11.3) |
% |
|||||||
| Gulf Power – |
|||||||||||
| Operating Revenues |
$ |
357 |
$ |
407 |
(12.3) |
% |
|||||
| Earnings Before Income Taxes |
62 |
62 |
— |
% |
|||||||
| Net Income Available to Common |
37 |
37 |
— |
% |
|||||||
| Mississippi Power – |
|||||||||||
| Operating Revenues |
$ |
276 |
$ |
331 |
(16.6) |
% |
|||||
| Earnings (Loss) Before Income Taxes |
39 |
(302) |
N/M |
||||||||
| Net Income (Loss) Available to Common |
35 |
(172) |
N/M |
||||||||
| Southern Power – |
|||||||||||
| Operating Revenues |
$ |
348 |
$ |
351 |
(0.9) |
% |
|||||
| Earnings Before Income Taxes |
45 |
37 |
21.6 |
% |
|||||||
| Net Income Available to Common |
33 |
33 |
— |
% |
|||||||
| N/M - not meaningful |
|||||||||||
| Note |
|||||||||||
| - All figures in this earnings release are preliminary and remain subject to the completion of normal quarter-end accounting procedures and adjustments, which could result in changes to these preliminary results. In addition, certain classifications and rounding may be different from final results published in the Form 10-Q. |
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SOURCE Southern Company
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