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
Jan. 29, 2004
Southern Company reports earnings for fourth quarter,
full-year 2003
ATLANTA - Southern Company today reported fourth quarter earnings of $125
million, or 17 cents a share, compared with $167 million, or 23 cents a share,
in the fourth quarter of 2002.
The fourth quarter results included a one-time after-tax expense of $37 million,
or 5 cents a share, associated with an interim state regulatory order in
December related to Mississippi Power's request to place additional capacity
from Plant Daniel into retail rates. This one-time expense substantially offsets
a one-time gain realized earlier in the year by Mississippi Power in connection
with Southern Company's settlement of a power sales contract with Dynegy, Inc.
Excluding the one-time expense, the adjusted earnings for the fourth quarter of
2003 were $162 million, or 22 cents a share.
Mild weather in the fourth quarter, compared with unusually cold weather in the
same period a year earlier, reduced electricity sales to residential customers.
However, continued customer growth during the quarter partially offset the
weather's impact on earnings.
Reported full-year earnings for 2003 were $1.47 billion, or $2.03 per share,
compared with earnings of $1.32 billion, or $1.86 per share, in 2002.
As previously reported, Southern Company's results for the second quarter of
2003 included a one-time after-tax gain of 11 cents per share from the
termination of all long-term wholesale power contracts between Southern Company
and Dynegy, Inc. The net impact of both this one-time gain and the one-time
expense in the fourth quarter related to the Mississippi regulatory order was
positive 6 cents per share for the year. Excluding these one-time items,
earnings for 2003 were $1.43 billion, or $1.97 per share.
The Southeast remained a draw for people and businesses throughout the year, and
the number of customers served by Southern Company increased by 68,000, or 1.7
percent, during 2003.
CEO Allen Franklin said Southern Company's business units performed well overall
in 2003, operating at historically high levels of reliability, achieving
industry-leading customer satisfaction levels and continuing to offer retail
prices below the national average.
"Southern Company people did an outstanding job in 2003 to meet or exceed our
financial, operational and customer service goals," Franklin said. "Our
commitment to deliver good results for customers and shareholders remains strong
in 2004."
Revenues for the fourth quarter were $2.56 billion, compared with $2.46 billion
in the same period a year ago, an increase of 4.4 percent. Revenues for the full
year were $11.28 billion, compared with $10.55 billion in 2002, up 6.9 percent.
Kilowatt-hour sales to retail customers in Southern Company's four-state service
area decreased 0.2 percent in 2003, compared with 2002. Residential electricity
use decreased 1.9 percent. Electricity use by commercial customers -- offices,
stores and other non-manufacturing firms - increased 0.3 percent. Industrial
energy use increased 1.0 percent.
Total sales of electricity to Southern Company's customers in the Southeast,
including wholesale sales, increased 4.2 percent in 2003, compared with the
previous year.
In conjunction with this earnings announcement, Southern Company has posted on
its Web site a package of detailed financial information on its fourth quarter
and full-year 2003 performance. These materials are available at 7:30 a.m. EST
Jan. 29 at www.southerncompany.com.
Southern Company's financial analyst call will be at 1 p.m. EST Jan. 29, at
which time Franklin and Chief Financial Officer Tom Fanning will discuss
earnings and provide earnings guidance for 2004 as well as 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 more than 4 million customers and nearly 39,000 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 been ranked the nation's top
energy utility in the American Customer Satisfaction Index four years in a row,
and in the latest survey tied for the highest score among all service industry
companies. 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
continued customer growth and Southern Company's ability to achieve long-term
success. 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, tax 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, regulatory investigations, proceedings or inquiries, including the
pending EPA civil actions against certain Southern Company subsidiaries and
current IRS audits; the effects, extent and timing of the entry 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;
available sources and costs of fuels; ability to control costs; investment
performance of Southern Company's pension plan; advances in technology; state
and federal rate regulations and pending and future rate cases and negotiations;
effects of, and changes in, political, legal and economic conditions and
developments in the United States, including the current soft economy; 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 direct or indirect
effect 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, including
Southern Company's credit ratings; the ability of Southern Company and its
subsidiaries to obtain additional generating capacity at competitive prices;
weather and other natural phenomena; the direct or indirect effects on Southern
Company's business resulting from the August 2003 power outage in the Northeast,
or any similar such incidents; and the effect of accounting pronouncements
issued periodically by standard-setting bodies.
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