Exhibit 99.01
NEWS
Media Contact: Marc Rice
404-506-5333 or 1-866-506-5333
MEDIA@SOUTHERNCOMPANY.COM
WWW.SOUTHERNCOMPANY.COM
Investor Relations Contact:
Glen Kundert
404-506-5135
GAKUNDER2@SOUTHERNCO.COM
April 30, 2003
Southern Company announces first quarter earnings
ATLANTA - Southern Company today reported earnings of $298 million, or 41 cents
per share, in the first quarter. Cold weather and continued customer growth in
the Southeast helped boost demand for electricity, and the company also had a
solid performance from its competitive generation business.
The results compared with earnings of $224 million, or 32 cents per share, in
the same period a year ago.
"By continuing to focus on the fundamentals that have made us successful, we are
off to a good start in 2003," said Allen Franklin, chairman, president and chief
executive officer. "Our commitment is to execute our strategy to meet our
financial, operational and customer satisfaction goals for the full year."
As of March 31, Southern Company had 64,000 more customers than at the end of
the first quarter a year earlier, as people and businesses continued to move
into the region. Lower than normal temperatures in January and February also
contributed to increased electricity sales. In addition, the first quarter
results included a continued positive overall impact from rate proceedings in
Alabama and Florida. These factors helped offset the negative effect of higher
operating costs related to new generating units that were placed in service last
year.
First quarter revenues were $2.55 billion, compared with $2.21 billion in the
first quarter of 2002.
Southern Company also said it expects to realize a one-time after-tax gain of
about $88 million, or 12 cents per share, in the second quarter upon the closing
of the previously announced early termination of all long-term wholesale power
contracts between the company and Dynegy, Inc.
Reviewing operations, Franklin said electricity use by retail customers in
Southern Company's four-state service area increased 3.2 percent in the first
quarter, compared with the same period in 2002. In-home electricity needs were
up 4.3 percent. Electricity use by commercial customers -- offices, stores and
other non-manufacturing firms - increased 1.1 percent. Industrial energy use
increased 4.0 percent.
Total sales of electricity to Southern Company's customers in the Southeast,
including sales to other utilities, increased 9.1 percent.
In conjunction with this earnings announcement, Southern Company has posted on
its Web site a package of detailed financial information on its first quarter
performance. These materials are available at 7:30 a.m. EDT April 30 at
www.southerncompany.com.
Southern Company's financial analyst call will be at 1 p.m. EDT April 30, at
which time Franklin and Chief Financial Officer Tom Fanning will discuss
earnings and earnings guidance and provide a general business update. Investors,
media and the public may listen to a live Webcast of the call at
www.southerncompany.com. A replay of the Webcast will be available at the site
for 12 months.
With 4 million customers and nearly 37,000 megawatts of generating capacity,
Atlanta-based Southern Company (NYSE: SO) is the premier super-regional energy
company in the Southeast and a leading U.S. producer of electricity. Southern
Company owns electric utilities in four states, a growing competitive generation
company, an energy services business and a competitive retail natural gas
business, as well as fiber optics and wireless communications. Southern Company
brands are known for excellent customer service, high reliability and retail
electric prices that are 15 percent below the national average. Southern Company
has been named two consecutive years No. 1 on Fortune magazine's "America's Most
Admired Companies" list in the Electric and Gas Utility industry. Southern
Company has more than 500,000 shareholders, making its common stock one of the
most widely held in the United States. Visit the Southern Company Web site at
www.southerncompany.com.
Forward Looking Statements Note:
Certain information contained in this release is forward-looking information
based on current expectations and plans that involve risks and uncertainties.
Forward-looking information includes, among other things, statements concerning
Southern Company's commitment to execute its strategy to meet its financial,
operational and customer satisfaction goals for the full year 2003. Southern
Company cautions that there are certain factors that can cause actual results to
differ materially from the forward-looking information that has been provided.
The reader is cautioned not to put undue reliance on this forward-looking
information, which is not a guarantee of future performance and is subject to a
number of uncertainties and other factors, many of which are outside the control
of Southern Company; accordingly, there can be no assurance that such indicated
results will be realized.
The following factors, in addition to those discussed in Southern Company's
Annual Report on Form 10-K for the year ended Dec. 31, 2002, and subsequent
securities filings, could cause results to differ materially from management
expectations as suggested by such forward-looking information: the impact of
recent and future federal and state regulatory change, including legislative and
regulatory initiatives regarding deregulation and restructuring of the electric
utility industry and also changes in environmental and other laws and
regulations to which Southern Company and its subsidiaries are subject, as well
as changes in application of existing laws and regulations; current and future
litigation, including the EPA civil action against certain subsidiaries of
Southern Company; the effects, extent and timing of additional competition in
the markets in which Southern Company's subsidiaries operate; the impact of
fluctuations in commodity prices, interest rates and customer demand; state and
federal rate regulation; political and legal conditions and developments in the
United States; the performance of projects undertaken by the non-traditional
business and the success of efforts to invest in and develop new opportunities;
internal restructuring or other restructuring options that may be pursued;
potential business strategies, including acquisitions or dispositions of assets
or businesses, which cannot be assured to be completed or beneficial to Southern
Company or its subsidiaries; the ability of counterparties of Southern Company
and its subsidiaries to make payments as and when due; the effects of, and
changes in, economic conditions in the areas in which Southern Company's
subsidiaries operate, including the current soft economy; the direct or indirect
effects on Southern Company's business resulting from the terrorist incidents on
Sept. 11, 2001, or any similar such incidents or responses to such incidents;
financial market conditions and the results of financing efforts; the timing and
acceptance of Southern Company's new product and service offerings; the ability
of Southern Company to obtain additional generating capacity at competitive
prices; and weather and other natural phenomena.
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