ATLANTA, July 29, 2021 /PRNewswire/ -- Southern Company today reported second-quarter 2021 earnings of $372 million, or 35 cents per share, compared with $612 million, or 58 cents per share, in the second quarter of 2020. For the six months ended June 30, 2021, Southern Company reported earnings of $1.51 billion, or $1.42 per share, compared with earnings of $1.48 billion, or $1.40 per share, for the same period in 2020.

Excluding the items described under "Net Income – Excluding Items" in the table below, Southern Company earned $891 million, or 84 cents per share, during the second quarter of 2021, compared with $822 million, or 78 cents per share, during the second quarter of 2020. For the six months ended June 30, 2021, excluding these items, Southern Company earned $1.93 billion, or $1.82 per share, compared with $1.65 billion, or $1.56 per share, for the same period in 2020.

Non-GAAP Financial Measures	Three Months Ended June		Year-to-Date June
Net Income - Excluding Items (in millions)	2021	2020	2021	2020
Net Income - As Reported	$372	$612	$1,508	$1,480
Less:
Estimated Loss on Plants Under Construction	(462)	(152)	(507)	(155)
Tax Impact	118	39	130	40
Acquisition and Disposition Impacts	1	-	1	38
Tax Impact	-	-	-	(16)
Wholesale Gas Services	(147)	(31)	19	-
Tax Impact	35	8	(5)	-
Asset Impairments	(89)	(154)	(89)	(154)
Tax Impact	25	80	25	80
Net Income – Excluding Items	$891	$822	$1,934	$1,647
Average Shares Outstanding – (in millions)	1,061	1,058	1,060	1,057
Basic Earnings Per Share – Excluding Items	$0.84	$0.78	$1.82	$1.56

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 second quarter of 2021, as compared with 2020, were strong customer usage, as well as robust customer growth and constructive state regulatory actions. These impacts were partially offset by higher non-fuel operations and maintenance costs as the emerging economic recovery resulted in a return to more normal business operations. Earnings for the second quarter of 2021 were also significantly impacted by a $343 million after-tax charge related to Georgia Power's construction of Plant Vogtle units 3 and 4.

"The Southern Company system achieved solid operational performance in the second quarter of 2021," said Chairman, President and CEO, Thomas A. Fanning. "We saw a year-over-year increase in retail electric sales, as the economies in our service territories continue to recover from the effects of the COVID-19 pandemic, and we experienced strong customer growth in our Southeastern footprint".

"We're also pleased to report that the integrated operation of Plant Vogtle Unit 3 has now been demonstrated with the successful completion of hot functional testing, our most significant project milestone to date," added Fanning.

Second-quarter 2021 operating revenues were $5.2 billion, compared with $4.6 billion for the second quarter of 2020, an increase of 12.5 percent. For the six months ended June 30, 2021, operating revenues were $11.11 billion, compared with $9.64 billion for the corresponding period in 2020, an increase of 15.3 percent. These increases were primarily due to higher fuel costs. Colder weather in the first quarter 2021 also contributed to the increase for the six months ended June 30, 2021.

Southern Company's second-quarter earnings slides with supplemental financial information, including long-term earnings guidance, are available at http://investor.southerncompany.com.

Southern Company's financial analyst call will begin at 1 p.m. Eastern Time today, during which Fanning and Chief Financial Officer Andrew W. Evans will discuss earnings and provide a general business update, including an update on the Vogtle units 3 and 4 construction project and earnings guidance. Investors, media and the public may listen to a live webcast of the call and view associated slides at https://investor.southerncompany.com/events-and-presentations/default.aspx. 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 June				Year-to-Date June
Net Income–As Reported (See Notes)	2021		2020		2021		2020
Traditional Electric Operating Companies	$	511	$	645	$	1,267	$	1,287
Southern Power	36		63		133		138
Southern Company Gas	(65)		71		333		346
Total	482		779		1,733		1,771
Parent Company and Other	(110)		(167)		(225)		(291)
Net Income–As Reported	$	372	$	612	$	1,508	$	1,480

Basic Earnings Per Share¹	$	0.35	$	0.58	$	1.42	$	1.40
Average Shares Outstanding (in millions)	1,061		1,058		1,060		1,057
End of Period Shares Outstanding (in millions)					1,059		1,056

Non-GAAP Financial Measures	Three Months Ended June				Year-to-Date June
Net Income–Excluding Items (See Notes)	2021		2020		2021		2020
Net Income–As Reported	$	372	$	612	$	1,508	$	1,480
Less:
Estimated Loss on Plants Under Construction²	(462)		(152)		(507)		(155)
Tax Impact	118		39		130		40
Acquisition and Disposition Impacts³	1		—		1		38
Tax Impact	—		—		—		(16)
Wholesale Gas Services⁴	(147)		(31)		19		—
Tax Impact	35		8		(5)		—
Asset Impairments⁵	(89)		(154)		(89)		(154)
Tax Impact	25		80		25		80
Net Income–Excluding Items	$	891	$	822	$	1,934	$	1,647

Basic Earnings Per Share–Excluding Items	$	0.84	$	0.78	$	1.82	$	1.56
-See Notes on the following page.

Southern Company
Financial Highlights

Notes
(1)	Dilution is not material in any period presented. Diluted earnings per share was $0.35 and $1.41 for the three and six months ended June 30, 2021 and was $0.58 and $1.39 for the three and six months ended June 30, 2020, respectively.
(2)	Earnings for the three months ended June 30, 2021 include a charge of $460 million pre tax ($343 million after tax), earnings for the six months ended June 30, 2021 include charges totaling $508 million pre tax ($379 million after tax), and earnings for the three and six months ended June 30, 2020 include a charge of $149 million pre tax ($111 million after tax) for estimated probable losses on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Further charges may occur; however, the amount and timing of any such charges are uncertain. Earnings for the three and six months ended June 30, 2021 and 2020 also include charges (net of salvage proceeds), associated legal expenses (net of insurance recoveries), and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Mississippi Power Company expects to incur additional pre-tax period costs to complete dismantlement of the abandoned gasifier-related assets and site restoration activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, totaling $10 million to $20 million annually through 2025.
(3)	Earnings for the six months ended June 30, 2020 primarily include a $39 million pre-tax ($23 million after-tax) gain on the sale of Southern Power Company's Plant Mankato. Further impacts may be recorded in future periods in connection with acquisition and disposition activity.
(4)	Earnings for the three and six months ended June 30, 2021 and 2020 include Wholesale Gas Services business results. Presenting earnings and earnings per share excluding Wholesale Gas Services provides 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. This business was sold on July 1, 2021.
(5)	Earnings for the three and six months ended June 30, 2021 includes pre-tax impairment charges of $82 million ($58 million after tax) related to Southern Company Gas' investment in the PennEast Pipeline project and $7 million ($6 million after tax) related to a leveraged lease investment. Earnings for the three and six months ended June 30, 2020 include a pre-tax impairment charge of $154 million ($74 million after tax) related to another leveraged lease investment. Impairment charges may occur in the future; however, the amount and timing of any such charges are uncertain.

Southern Company

Significant Factors Impacting EPS

Three Months Ended June

Year-to-Date

June

2021

2020

Change

2021

2020

Change

Earnings Per Share–

As Reported¹(See Notes)

0.35

0.58

(0.23)

1.42

1.40

0.02

Significant Factors:

Traditional Electric Operating Companies

(0.13)

(0.02)

Southern Power

(0.03)

—

Southern Company Gas

(0.13)

(0.01)

Parent Company and Other

0.06

Increase in Shares

—

(0.01)

Total–As Reported

(0.23)

0.02

Three Months Ended June

Year-to-Date

June

Non-GAAP Financial Measures

2021

2020

Change

2021

2020

Change

Earnings Per Share–

Excluding Items (See Notes)

0.84

0.78

0.06

1.82

1.56

0.26

Total–As Reported

(0.23)

0.02

Less:

Estimated Loss on Plants Under Construction²

(0.21)

(0.24)

Acquisition and Disposition Impacts³

—

(0.02)

Wholesale Gas Services⁴

(0.09)

0.01

Asset Impairments⁵

0.01

Total–Excluding Items

0.06

0.26

- See Notes on the following page.

Southern Company
Significant Factors Impacting EPS
Notes
(1)	Dilution is not material in any period presented. Diluted earnings per share was $0.35 and $1.41 for the three and six months ended June 30, 2021 and was $0.58 and $1.39 for the three and six months ended June 30, 2020, respectively.
(2)	Earnings for the three months ended June 30, 2021 include a charge of $460 million pre tax ($343 million after tax), earnings for the six months ended June 30, 2021 include charges totaling $508 million pre tax ($379 million after tax), and earnings for the three and six months ended June 30, 2020 include a charge of $149 million pre tax ($111 million after tax) for estimated probable losses on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Further charges may occur; however, the amount and timing of any such charges are uncertain. Earnings for the three and six months ended June 30, 2021 and 2020 also include charges (net of salvage proceeds), associated legal expenses (net of insurance recoveries), and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Mississippi Power Company expects to incur additional pre-tax period costs to complete dismantlement of the abandoned gasifier-related assets and site restoration activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, totaling $10 million to $20 million annually through 2025.
(3)	Earnings for the six months ended June 30, 2020 primarily include a $39 million pre-tax ($23 million after-tax) gain on the sale of Southern Power Company's Plant Mankato. Further impacts may be recorded in future periods in connection with acquisition and disposition activity.
(4)	Earnings for the three and six months ended June 30, 2021 and 2020 include Wholesale Gas Services business results. Presenting earnings and earnings per share excluding Wholesale Gas Services provides 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. This business was sold on July 1, 2021.
(5)	Earnings for the three and six months ended June 30, 2021 includes pre-tax impairment charges of $82 million ($58 million after tax) related to Southern Company Gas' investment in the PennEast Pipeline project and $7 million ($6 million after tax) related to a leveraged lease investment. Earnings for the three and six months ended June 30, 2020 include a pre-tax impairment charge of $154 million ($74 million after tax) related to another leveraged lease investment. Impairment charges may occur in the future; however, the amount and timing of any such charges are uncertain.



Southern Company
EPS Earnings Analysis

Description	Three Months Ended June 2021 vs. 2020	Year-To-Date June 2021 vs. 2020

Retail Sales	7¢	5¢

Retail Revenue Impacts	7	9

Weather	1	8

Wholesale & Other Operating Revenues	4	8

Non-Fuel O&M	(11)	(11)

Depreciation and Amortization, Interest Expense, Other	1	4

Total Traditional Electric Operating Companies	9¢	23¢

Southern Power	(3)	2

Southern Company Gas	1	3

Parent and Other	(1)	(1)

Increase in Shares	—	(1)

Total Change in EPS (Excluding Items)	6¢	26¢

Estimated Loss on Plants Under Construction¹	(21)	(24)

Acquisition and Disposition Impacts²	—	(2)

Wholesale Gas Services³	(9)	1

Asset Impairments⁴	1	1

Total Change in EPS (As Reported)	(23)¢	2¢
- See Notes on the following page.

Southern Company
EPS Earnings Analysis

Notes
(1)	Earnings for the three months ended June 30, 2021 include a charge of $460 million pre tax ($343 million after tax), earnings for the six months ended June 30, 2021 include charges totaling $508 million pre tax ($379 million after tax), and earnings for the three and six months ended June 30, 2020 include a charge of $149 million pre tax ($111 million after tax) for estimated probable losses on Georgia Power Company's construction of Plant Vogtle Units 3 and 4. Further charges may occur; however, the amount and timing of any such charges are uncertain. Earnings for the three and six months ended June 30, 2021 and 2020 also include charges (net of salvage proceeds), associated legal expenses (net of insurance recoveries), and tax impacts related to Mississippi Power Company's integrated coal gasification combined cycle facility project in Kemper County, Mississippi. Mississippi Power Company expects to incur additional pre-tax period costs to complete dismantlement of the abandoned gasifier-related assets and site restoration activities, including related costs for compliance and safety, asset retirement obligation accretion, and property taxes, totaling $10 million to $20 million annually through 2025.
(2)	Earnings for the six months ended June 30, 2020 primarily include a $39 million pre-tax ($23 million after-tax) gain on the sale of Southern Power Company's Plant Mankato. Further impacts may be recorded in future periods in connection with acquisition and disposition activity.
(3)	Earnings for the three and six months ended June 30, 2021 and 2020 include Wholesale Gas Services business results. Presenting earnings and earnings per share excluding Wholesale Gas Services provides 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. This business was sold on July 1, 2021.
(4)	Earnings for the three and six months ended June 30, 2021 includes pre-tax impairment charges of $82 million ($58 million after tax) related to Southern Company Gas' investment in the PennEast Pipeline project and $7 million ($6 million after tax) related to a leveraged lease investment. Earnings for the three and six months ended June 30, 2020 include a pre-tax impairment charge of $154 million ($74 million after tax) related to another leveraged lease investment. Impairment charges may occur in the future; however, the amount and timing of any such charges are uncertain.



Southern Company
Consolidated Earnings
As Reported
*(In Millions of Dollars)*
	Three Months Ended June						Year-to-Date June
	2021		2020		Change		2021		2020		Change
Income Account-
Retail Electric Revenues-
Fuel	$	875	$	676	$	199	$	1,712	$	1,353	$	359
Non-Fuel	2,724		2,506		218		5,229		4,907		322
Wholesale Electric Revenues	546		472		74		1,091		889		202
Other Electric Revenues	175		168		7		346		320		26
Natural Gas Revenues	677		636		41		2,371		1,885		486
Other Revenues	201		162		39		359		284		75
Total Revenues	5,198		4,620		578		11,108		9,638		1,470
Fuel and Purchased Power	1,065		821		244		2,120		1,638		482
Cost of Natural Gas	231		144		87		814		583		231
Cost of Other Sales	103		74		29		185		129		56
Non-Fuel O&M	1,438		1,203		235		2,810		2,498		312
Depreciation and Amortization	891		873		18		1,762		1,730		32
Taxes Other Than Income Taxes	313		298		15		657		629		28
Estimated Loss on Plant Vogtle Units 3 and 4	460		149		311		508		149		359
(Gain) Loss on Dispositions, net	(11)		—		(11)		(54)		(39)		(15)
Total Operating Expenses	4,490		3,562		928		8,802		7,317		1,485
Operating Income	708		1,058		(350)		2,306		2,321		(15)
Allowance for Equity Funds Used During Construction	45		35		10		90		68		22
Earnings (Loss) from Equity Method Investments	(40)		30		(70)		5		72		(67)
Interest Expense, Net of Amounts Capitalized	450		444		6		901		900		1
Impairment of Leveraged Leases	7		154		(147)		7		154		(147)
Other Income (Expense), net	108		101		7		167		204		(37)
Income Taxes (Benefit)	(12)		5		(17)		178		150		28
Net Income	376		621		(392)		1,482		1,461		(126)
Less:
Dividends on Preferred Stock of Subsidiaries	4		4		—		7		7		—
Net Income (Loss) Attributable to Noncontrolling Interests	—		5		(5)		(33)		(26)		(7)
NET INCOME ATTRIBUTABLE TO SOUTHERN COMPANY	$	372	$	612	$	(240)	$	1,508	$	1,480	$	28
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 June											Year-to-Date June
	2021	2020			Change				Weather Adjusted Change			2021				2020			Change			Weather Adjusted Change
Kilowatt-Hour Sales-
Total Sales	46,020	43,547			5.7			%				92,442				87,811			5.3		%

Total Retail Sales-	34,655	32,460			6.8			%	6.0		%	69,306				66,505			4.2		%	2.0		%
Residential	10,838	10,879			(0.4)			%	(2.0)		%	22,878				21,745			5.2		%	(0.4)		%
Commercial	11,500	10,531			9.2			%	8.7		%	22,243				21,470			3.6		%	2.7		%
Industrial	12,162	10,886			11.7			%	11.7		%	23,870				22,952			4.0		%	4.0		%
Other	155	164			(5.4)			%	(5.3)		%	315				338			(6.6)		%	(6.8)		%

Total Wholesale Sales	11,365	11,087			2.5			%	N/A			23,136				21,306			8.6		%	N/A


*(In Thousands of Customers)*

												Period Ended June
												2021				2020			Change
Regulated Utility Customers-
Total Utility Customers-												8,659				8,580			0.9%
Total Traditional Electric												4,359				4,305			1.3%
Southern Company Gas												4,300				4,275			0.6%


Southern Company
Financial Overview
As Reported
*(In Millions of Dollars)*
			Three Months Ended June											Year-to-Date June
			2021			2020				% Change				2021			2020			% Change
Southern Company –
Operating Revenues			$	5,198		$	4,620			12.5			%	$	11,108		$	9,638		15.3			%
Earnings Before Income Taxes			364			626				(41.9)			%	1,660			1,611			3.0			%
Net Income Available to Common			372			612				(39.2)			%	1,508			1,480			1.9			%

Alabama Power –
Operating Revenues			$	1,556		$	1,365			14.0			%	$	3,115		$	2,716		14.7			%
Earnings Before Income Taxes			439			395				11.1			%	910			762			19.4			%
Net Income Available to Common			331			298				11.1			%	690			578			19.4			%

Georgia Power –
Operating Revenues			$	2,225		$	1,928			15.4			%	$	4,195		$	3,754		11.7			%
Earnings Before Income Taxes			93			319				(70.8)			%	462			665			(30.5)			%
Net Income Available to Common			143			308				(53.6)			%	494			638			(22.6)			%

Mississippi Power –
Operating Revenues			$	303		$	283			7.1			%	$	610		$	559		9.1			%
Earnings Before Income Taxes			46			41				12.2			%	95			79			20.3			%
Net Income Available to Common			38			39				(2.6)			%	83			71			16.9			%

Southern Power –
Operating Revenues			$	490		$	439			11.6			%	$	930		$	814		14.3			%
Earnings Before Income Taxes			34			74				(54.1)			%	89			125			(28.8)			%
Net Income Available to Common			36			63				(42.9)			%	133			138			(3.6)			%

Southern Company Gas –
Operating Revenues			$	677		$	636			6.4			%	$	2,371		$	1,885		25.8			%
Earnings (Loss) Before Income Taxes			(94)			87				N/M				425			441			(3.6)			%
Net Income (Loss) Available to Common			(65)			71				N/M				333			346			(3.8)			%

N/M - Not Meaningful Notes - See Financial Highlights pages for discussion of certain significant items occurring during the periods

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SOURCE Southern Company

Southern Company reports second-quarter 2021 earnings