The Southern Company Q1 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Southern Company reported strong Q1 2020 adjusted EPS of $0.78, up $0.08 vs. Q1 2019 and $0.06 above expectations.
  • Key drivers included constructive 2019 regulatory outcomes and lower non-fuel O&M costs.
  • COVID‑19 impacts were minimal in Q1 but expected to affect Q2 and full-year 2020 sales.
  • Long-term EPS growth guidance of 4% to 6% remains unchanged.
  • Company continues to target nearly $10 million in charitable contributions and extensive community support during the pandemic.

COVID‑19 Operational Impacts

  • No significant supply chain disruptions to utility operations or major construction projects.
  • Workforce health and safety protocols implemented early, including onsite medical facilities, aggressive testing, PPE, and distancing measures.
  • Electric retail demand for April estimated at ~8% below forecast on a weather-normalized basis.
  • Full-year 2020 weather-normalized retail sales expected to decline 2% to 5% against prior guidance of flat to up 1%, based on a U-shaped recovery scenario.
  • Bad debt is being monitored; regulatory mechanisms and federal aid are expected to mitigate impacts.

Financials & Liquidity

  • Q1 2020 adjusted EPS: $0.78 vs. $0.70 in Q1 2019.
  • Customer growth: 20,000+ new electric and gas customers.

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Operator: Good morning. My name is Nelson, and I will be your conference operator today. At this time, I would like to welcome everyone to Southern Company's First Quarter 2020 Earnings Call. [Operator Instructions] Please note, today's call is being recorded Thursday, April 30, 2020. I would now like to turn the call over to Mr. Scott Gammill, Investor Relations Director. Please go ahead, sir. Scott Gammill: Thank you, Nelson. Good afternoon, and welcome to Southern Company's First Quarter 2020 Earnings Call. Joining me today are Tom Fanning, Chairman, President and Chief Executive Officer of Southern Company; and Drew Evans, Chief Financial Officer. Let me remind you, we'll be making forward-looking statements today in addition to providing historical information. Various important factors could cause actual results to differ materially from those indicated in the forward-looking statements, including those discussed in our Form 10-K, Form 10-Qs and subsequent filings. In addition, we will present non-GAAP financial information on this call. Reconciliations to the applicable GAAP measure are included in the financial information we released this morning, as well as the slides for this conference call, which are both available on our Investor Relations website at investor.southerncompany.com. At this time, I'll turn the call over to Tom Fanning. Tom Fanning: Good afternoon and thank you all for joining us. I hope that you're well. As you can see from the materials we release

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