Public Service Co Of New Mexico 8-K, filed Apr 13, 2020
Public Service Co Of New Mexico (PNMXO)
8-K
2020-04-13
For: 2020-04-13
View Original
Added on
April 06, 2026
About this 8-K
Public Service Co Of New Mexico filed this 8-K on April 13, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
| UNITED STATES | ||||||||
| SECURITIES AND EXCHANGE COMMISSION | ||||||||
| Washington, D.C. 20549 | ||||||||
| FORM | ||||||||
| CURRENT REPORT | ||||||||
| Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 | ||||||||
| Date of Report (Date of earliest event reported) | ||||||||
| (April 13, 2020) | ||||||||
Name of Registrant, State of Incorporation, Address Of Principal Executive Offices, Telephone Number, Commission File No., IRS Employer Identification No. | ||||||||||||||||||||||||||
(A New Mexico Corporation)
Telephone Number - (505 ) 241-2700
Commission File No. - 001-32462
IRS Employer Identification No. - 85-0468296
Public Service Company of New Mexico
(A New Mexico Corporation)
Telephone Number - (505 ) 241-2700
Commission File No. - 001-06986
IRS Employer Identification No. - 85-0019030
(A Texas Corporation)
Telephone Number - (972 ) 420-4189
Commission File No. - 002-97230
IRS Employer Identification No. - 75-0204070
____________________________________________________________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||||||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||||||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 40.14d-2(b)) | |||||||||||||||||
| Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 40.13e-4(c)) | |||||||||||||||||
Securities registered pursuant to Section 12(b) of the Act:
Registrant | Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||||
PNM Resources, Inc. | |||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On April 13, 2020, PNM Resources, Inc., Public Service Company of New Mexico, and Texas-New Mexico Power Company (collectively, the “Company”) issued a press release announcing results of operations for the three months ended March 31, 2020. The press release is furnished herewith as Exhibit 99.1 and incorporated by reference herein.
The Company's press release and other communications from time to time may include certain financial measures that are not determined in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A “non-GAAP financial measure” is defined as a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company's financial statements.
Non-GAAP financial measures utilized by the Company include presentations, on an ongoing basis, of revenues, operating expenses, operating income, other income and deductions, earnings, and earnings per share. The Company uses ongoing earnings and ongoing earnings per diluted share (or ongoing diluted earnings per share) to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. Certain non-GAAP financial measures utilized by the Company exclude the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, pension expense related to previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items. The Company's management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings capacity of the Company's operations. Management also believes that the presentation of the non-GAAP financial measures is largely consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures with respect to prior periods.
The non-GAAP financial measures used by the Company should not be considered in isolation from or as a substitute for measures of performance prepared in accordance with GAAP.
The Company uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP earnings and ongoing earnings guidance, nor their probable impact on GAAP earnings without unreasonable effort; therefore, management is generally not able to provide a corresponding GAAP equivalent for forecasted ongoing earnings guidance. Reconciling items may include revenues and expenses resulting from transactions that do not occur in the normal course of the Company's business operations, as well as net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, and pension expense related to previously disposed of gas distribution business as discussed above.
Limitation on Incorporation by Reference
In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is furnished pursuant to Item 2.02 and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section and not deemed incorporated by reference in any filing under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit Number Description
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.
| PNM RESOURCES, INC. | |||||
| PUBLIC SERVICE COMPANY OF NEW MEXICO | |||||
| TEXAS-NEW MEXICO POWER COMPANY | |||||
| (Registrants) | |||||
| Date: April 13, 2020 | /s/ Henry E. Monroy | ||||
| Henry E. Monroy | |||||
| Vice President and Corporate Controller | |||||
| (Officer duly authorized to sign this report) | |||||
Exhibit 99.1
For Immediate Release
April 13, 2020
PNM Resources Reports First Quarter Results
2020 Ongoing Earnings Guidance Affirmed
PNM Resources (In millions, except EPS)
| Q1 2020 | Q1 2019 | |||||||||||||
| GAAP net earnings (loss) attributable to PNM Resources | ($15.3) | $18.7 | ||||||||||||
| GAAP diluted EPS | ($0.19) | $0.23 | ||||||||||||
| Ongoing net earnings | $14.2 | $9.0 | ||||||||||||
| Ongoing diluted EPS | $0.18 | $0.11 | ||||||||||||
(ALBUQUERQUE, N.M.) – PNM Resources (NYSE: PNM) today released the company’s preliminary unaudited 2020 first quarter results which include the early stages of COVID-19 impacts. Current load and operational indicators continue to be monitored in light of the anticipated impacts from the changing COVID-19 economic situation. The company expects that load trends will begin to reflect economic changes in the second quarter and currently anticipates those impacts can be managed within ongoing earnings guidance. As a result, management affirmed its 2020 consolidated ongoing earnings guidance of $2.16 to $2.26 per diluted share.
“This is a challenging time for our customers and communities, and our priority is to ensure our employees are safe and that we are able to safely maintain critical electricity service,” said Pat Vincent-Collawn, PNM Resources’ chairman, president and CEO. “While we have not yet seen impacts to our ongoing financial results, which are consistent with our first quarter projections, we will continue to monitor the changes and communicate any impacts to our overall financial projections.”
GAAP earnings include a $31.6 million pre-tax loss in the first quarter of 2020 compared to a $13.0 million pre-tax gain in the first quarter of 2019 related to the net changes in unrealized gains and losses on investment securities for PNM’s decommissioning and reclamation trusts. These amounts reflect changes in market value that are measured each quarter. First quarter 2020 impacts reflect the market downturn at the end of March. Market conditions in early April 2020 will be considered in the second quarter measurement. As the obligations under the trusts are substantially funded, these changes are not anticipated to impact funding requirements.
COVID-19 AND REGULATORY UPDATES
The company monitored load trends during March 2020 related to COVID-19. PNM total weather-normalized retail load grew 1.1% in March 2020 compared to the prior year, consistent with the company’s previously communicated projection of 0.5% - 1.5%. The company continues to expect increases in residential load and decreases in commercial load as a result of stay-at-home orders in New Mexico. Industrial load in PNM’s service territory remains intact.
At TNMP, weather-normalized demand-based load increased 3.8% in March 2020 compared to the prior year, near the company’s previously communicated annual projection of 4% - 5%. Additionally, weather-normalized volumetric load increased 3.7% in March 2020 compared to the prior year, representing increases in the residential class.
(MORE)
PNM Resources Reports Q1 Earnings 4-13-20 p. 2 of 4
PNM Resources consolidated liquidity remains adequate for its anticipated financing needs, with $818.9 million of available liquidity at April 10, 2020 through its multi-year revolving credit facilities and the January 2020 forward equity offering, which has the flexibility to be drawn down earlier than December if needed.
Key regulatory items continue to move forward for PNM and TNMP. On April 1, 2020, the New Mexico Public Regulation Commission approved PNM’s application for abandonment and securitization of the San Juan Generating Station. In Texas, TNMP received approval from the Public Utilities Commission of Texas (PUCT) on March 27, 2020 for its January Transmission Cost of Service request and filed its first Distribution Cost of Service request on April 6, 2020 with rates anticipated to be implemented in September. In addition, the PUCT enacted the COVID-19 Electricity Relief Program including utility protections from customer non-payments provided for under the program.
SEGMENT REPORTING OF 2020 FIRST QUARTER EARNINGS
PNM – a vertically integrated electric utility in New Mexico with distribution, transmission and generation assets.
PNM (In millions, except EPS)
| Q1 2020 | Q1 2019 | |||||||||||||
| GAAP net earnings (loss) attributable to PNM Resources | ($16.1) | $19.0 | ||||||||||||
| GAAP diluted EPS | ($0.20) | $0.24 | ||||||||||||
| Ongoing net earnings | $13.0 | $9.5 | ||||||||||||
| Ongoing diluted EPS | $0.16 | $0.12 | ||||||||||||
•PNM GAAP earnings were lower in the first quarter of 2020 primarily as a result of net changes in unrealized gains and losses on investment securities for its decommissioning and reclamation trusts. A $31.6 million pre-tax loss was recorded in the first quarter of 2020 reflecting the market downturn in March 2020, compared to a $13.0 million pre-tax gain in the first quarter of 2019. Market conditions in early April 2020 will be considered in the second quarter measurement.
•GAAP and Ongoing earnings were also higher in the first quarter of 2020 due to increased rate recovery of solar investments added last year to serve retail customers, higher transmission margins and lower operational and maintenance spending. Increases from weather-normalized load growth and leap year were offset by milder weather.
•These increases were partially offset by realized losses on decommissioning and reclamation trust investments as the portfolios were repositioned to reduce risks and take advantage of future market opportunities, along with additional depreciation and property tax expenses related to new capital investments.
(MORE)
PNM Resources Reports Q1 Earnings 4-13-20 p. 3 of 4
TNMP – an electric transmission and distribution utility in Texas.
TNMP (In millions, except EPS)
| Q1 2020 | Q1 2019 | |||||||||||||
| GAAP net earnings attributable to PNM Resources | $7.1 | $4.1 | ||||||||||||
| GAAP diluted EPS | $0.09 | $0.05 | ||||||||||||
| Ongoing net earnings | $7.1 | $4.1 | ||||||||||||
| Ongoing diluted EPS | $0.09 | $0.05 | ||||||||||||
•TNMP GAAP and ongoing earnings increased in the first quarter of 2020 due to rate recovery of transmission investments through Transmission Cost of Service filings and lower interest rates.
•These increases were partially offset by higher depreciation and property tax expenses resulting from additional capital investments and milder temperatures.
Corporate and Other – a segment that reflects the PNM Resources holding company and other subsidiaries.
Corporate and Other (In millions, except EPS)
| Q1 2020 | Q1 2019 | |||||||||||||
| GAAP net earnings (loss) attributable to PNM Resources | ($6.3) | ($4.4) | ||||||||||||
| GAAP diluted EPS | ($0.08) | ($0.06) | ||||||||||||
| Ongoing net earnings (loss) | ($5.9) | ($4.5) | ||||||||||||
| Ongoing diluted EPS | ($0.07) | ($0.06) | ||||||||||||
•Corporate and Other GAAP and ongoing earnings were lower in the first quarter of 2020 due to a lower effective tax rate for consolidated reporting.
FIRST QUARTER CONFERENCE CALL: 11 A.M. EASTERN FRIDAY, MAY 1
PNM Resources will discuss first quarter earnings results during a live conference call and webcast on Friday, May 1st at 11 a.m. Eastern. Speaking on the call will be Pat Vincent-Collawn, PNM Resources chairman, president and CEO, and Don Tarry, PNM Resources senior vice president and CFO. Supporting materials for the call will be available ahead of time on the company’s website at http://www.pnmresources.com/investors/results.cfm.
A live webcast of the call will be archived at http://www.pnmresources.com/investors/events.cfm.
Listeners are encouraged to visit the website at least 30 minutes before the event to register, download and install any necessary audio software.
Investors and analysts can participate in the live conference call by pre-registering using the following link to receive a special dial-in number and PIN: http://dpregister.com/10142356. Telephone participants who are unable to pre-register may participate in the live conference call by dialing (877) 276-8648 or (412) 317-5474 fifteen minutes prior to the event and referencing “the PNM Resources first quarter conference call”.
(MORE)
PNM Resources Reports Q1 Earnings 4-13-20 p. 4 of 4
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2019 consolidated operating revenues of $1.5 billion. Through its regulated utilities, PNM and TNMP, PNM Resources has approximately 2,761 megawatts of generation capacity and provides electricity to more than 789,000 homes and businesses in New Mexico and Texas. For more information, visit the company's website at www.PNMResources.com.
CONTACTS:
Analysts Media
Lisa Goodman Ray Sandoval
(505) 241-2160 (505) 241-2782
Preliminary Unaudited Financial Results First Quarter 2020 and COVID-19 Impacts
The preliminary unaudited financial results for the first quarter ended March 31, 2020, included in this press release represent the most current information available to management. Actual results may differ from these preliminary unaudited results due to the completion of the company’s financial closing procedures, final adjustments, completion of the review by the company’s independent registered public accounting firm and other developments that may arise between the date of this press release and the time that financial results for the first quarter ended March 31, 2020 are finalized.
In addition, the company cannot predict the extent or duration of the ongoing COVID-19 pandemic, nor its effects on the global, national or local economy, including the impacts on the company’s ability to access capital, or its effects on the company’s financial position, results of operations, and cash flows. As previously reported in our Form 8-K on March 30, 2020, the company issued materials that discussed potential impacts of the ongoing COVID-19 pandemic under different planning scenarios, including consolidated earnings guidance.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements made in this news release for PNM Resources, Inc. (“PNMR”), Public Service Company of New Mexico (“PNM”), or Texas-New Mexico Power Company (“TNMP”) (collectively, the “Company”) that relate to future events or expectations, projections, estimates, intentions, goals, targets, and strategies are made pursuant to the Private Securities Litigation Reform Act of 1995. Readers are cautioned that all forward-looking statements are based upon current expectations and estimates. PNMR, PNM, and TNMP assume no obligation to update this information. Because actual results may differ materially from those expressed or implied by these forward-looking statements, PNMR, PNM, and TNMP caution readers not to place undue reliance on these statements. PNMR's, PNM's, and TNMP's business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond their control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see the Company’s Form 10-K, Form 10-Q filings and the information included in the Company’s Forms 8-K with the Securities and Exchange Commission, which factors are specifically incorporated by reference herein.
Non-GAAP Financial Measures
GAAP refers to generally accepted accounting principles in the U.S. Ongoing earnings is a non-GAAP financial measure that excludes the impact of net unrealized mark-to-market gains and losses on economic hedges, the net change in unrealized gains and losses on investment securities, pension expense related to previously disposed of gas distribution business, and certain non-recurring, infrequent, and other items that are not indicative of fundamental changes in the earnings capacity of the Company's operations. The Company uses ongoing earnings and ongoing earnings per diluted share (or ongoing diluted earnings per share) to evaluate the operations of the Company and to establish goals, including those used for certain aspects of incentive compensation, for management and employees. While the Company believes these financial measures are appropriate and useful for investors, they are not measures presented in accordance with GAAP. The Company does not intend for these measures, or any piece of these measures, to represent any financial measure as defined by GAAP. Furthermore, the Company’s calculations of these measures as presented may or may not be comparable to similarly titled measures used by other companies. The Company uses ongoing earnings guidance to provide investors with management's expectations of ongoing financial performance over the period presented. While the Company believes ongoing earnings guidance is an appropriate measure, it is not a measure presented in accordance with GAAP. The Company does not intend for ongoing earnings guidance to represent an expectation of net earnings as defined by GAAP. Since the future differences between GAAP and ongoing earnings are frequently outside the control of the Company, management is generally not able to estimate the impact of the reconciling items between forecasted GAAP net earnings and ongoing earnings guidance, nor their probable impact on GAAP net earnings without unreasonable effort, therefore, management is generally not able to provide a corresponding GAAP equivalent for ongoing earnings guidance. Reconciliations between GAAP and ongoing earnings are contained in schedules 1-2.
(END)
PNM Resources, Inc. and Subsidiaries
Schedule 1
Reconciliation of GAAP to Ongoing Earnings
(Preliminary and Unaudited)
| PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | (16,057) | $ | 7,092 | $ | (6,295) | $ | (15,260) | ||||||||||||||||||||||||||||||||||||||||||
Adjusting items before income tax effects: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities2b | 31,638 | — | — | 31,638 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2d | 1,131 | — | — | 1,131 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total adjustments before income tax effects | 32,769 | — | — | 32,769 | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax impact of above adjustments1 | (8,323) | — | — | (8,323) | ||||||||||||||||||||||||||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items3 | 4,627 | — | 387 | 5,014 | ||||||||||||||||||||||||||||||||||||||||||||||
Total income tax impacts5 | (3,696) | — | 387 | (3,309) | ||||||||||||||||||||||||||||||||||||||||||||||
| Adjusting items, net of income taxes | 29,073 | — | 387 | 29,460 | ||||||||||||||||||||||||||||||||||||||||||||||
| Ongoing Earnings (Loss) | $ | 13,016 | $ | 7,092 | $ | (5,908) | $ | 14,200 | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 19,012 | $ | 4,098 | $ | (4,410) | $ | 18,700 | ||||||||||||||||||||||||||||||||||||||||||
Adjusting items before income tax effects: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mark-to-market impact of economic hedges2a | (28) | — | — | (28) | ||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains and losses on investment securities2b | (12,994) | — | — | (12,994) | ||||||||||||||||||||||||||||||||||||||||||||||
Regulatory disallowances and restructuring costs2c | 1,345 | — | — | 1,345 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business2d | 1,045 | — | — | 1,045 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total adjustments before income tax effects | (10,632) | — | — | (10,632) | ||||||||||||||||||||||||||||||||||||||||||||||
Income tax impact of above adjustments1 | 2,701 | — | — | 2,701 | ||||||||||||||||||||||||||||||||||||||||||||||
Timing of statutory and effective tax rates on non-recurring items4 | (1,618) | — | (131) | (1,749) | ||||||||||||||||||||||||||||||||||||||||||||||
Total income tax impacts5 | 1,083 | — | (131) | 952 | ||||||||||||||||||||||||||||||||||||||||||||||
| Adjusting items, net of income taxes | (9,549) | — | (131) | (9,680) | ||||||||||||||||||||||||||||||||||||||||||||||
| Ongoing Earnings (Loss) | $ | 9,463 | $ | 4,098 | $ | (4,541) | $ | 9,020 | ||||||||||||||||||||||||||||||||||||||||||
1 Tax effects calculated using a tax rate of 25.4% | ||||||||||||||||||||||||||||||||||||||||||||||||||
2 The pre-tax impacts (in thousands) of adjusting items are reflected on the GAAP Condensed Consolidated Statements of Earnings as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||
a (Reductions) in "Electric Operating Revenues" and "Cost of energy" of $245 and $273 in the three months ended March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
b (Increases) decreases in "Gains on investment securities" reflecting non-cash performance relative to market, not indicative of funding requirements | ||||||||||||||||||||||||||||||||||||||||||||||||||
c Increases in "Regulatory disallowances and restructuring costs" | ||||||||||||||||||||||||||||||||||||||||||||||||||
d Increases in "Other (deductions)" | ||||||||||||||||||||||||||||||||||||||||||||||||||
3 Income tax timing impacts resulting from differences between the statutory tax rate of 25.4% for PNM and the average expected statutory tax rate of 23.9% for PNMR, and the GAAP anticipated effective tax rates of 11.3% for PNM and 8.6% for PNMR, which will reverse by year end | ||||||||||||||||||||||||||||||||||||||||||||||||||
4 Income tax timing impacts resulting from differences between the statutory tax rate of 25.4% for PNM and the average expected statutory tax rate of 24.0% for PNMR, and the GAAP anticipated effective tax rates of 11.9% for PNM and 9.4% for PNMR, which will reverse by year end | ||||||||||||||||||||||||||||||||||||||||||||||||||
5 Income tax impacts reflected in "Income Taxes" | ||||||||||||||||||||||||||||||||||||||||||||||||||
PNM Resources, Inc. and Subsidiaries
Schedule 2
Reconciliation of GAAP to Ongoing Earnings Per Diluted Share
(Preliminary and Unaudited)
| PNM | TNMP | Corporate and Other | PNMR Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||
| (per diluted share) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR1 | $ | (0.20) | $ | 0.09 | $ | (0.08) | $ | (0.19) | ||||||||||||||||||||||||||||||||||||||||||
Adjusting items, net of income tax effects: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net change in unrealized gains and losses on investment securities | 0.29 | — | — | 0.29 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business | 0.01 | — | — | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||||
| Timing of statutory and effective tax rates on non-recurring items | 0.06 | — | 0.01 | 0.07 | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Adjustments | 0.36 | — | 0.01 | 0.37 | ||||||||||||||||||||||||||||||||||||||||||||||
Ongoing Earnings (Loss)2 | $ | 0.16 | $ | 0.09 | $ | (0.07) | $ | 0.18 | ||||||||||||||||||||||||||||||||||||||||||
| Average Diluted Shares Outstanding: 80,081,513 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 0.24 | $ | 0.05 | $ | (0.06) | $ | 0.23 | ||||||||||||||||||||||||||||||||||||||||||
Adjusting items, net of income tax effects: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net change in unrealized gains and losses on investment securities | (0.12) | — | — | (0.12) | ||||||||||||||||||||||||||||||||||||||||||||||
Regulatory disallowances and restructuring costs | 0.01 | — | — | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||||
Pension expense related to previously disposed of gas distribution business | 0.01 | — | — | 0.01 | ||||||||||||||||||||||||||||||||||||||||||||||
| Timing of statutory and effective tax rates on non-recurring items | (0.02) | — | — | (0.02) | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Adjustments | (0.12) | — | — | (0.12) | ||||||||||||||||||||||||||||||||||||||||||||||
| Ongoing Earnings (Loss) | $ | 0.12 | $ | 0.05 | $ | (0.06) | $ | 0.11 | ||||||||||||||||||||||||||||||||||||||||||
| Average Diluted Shares Outstanding: 79,970,966 | ||||||||||||||||||||||||||||||||||||||||||||||||||
1 EPS is presented on a non-diluted basis for the three months ended March 31, 2020 due to consolidated GAAP net loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
2 EPS is presented on a diluted basis which includes 79,870,922 basic shares, 38,710 dilutive restricted stock compensation shares and 171,881 dilutive shares from the PNMR 2020 Forward Equity Sales Agreement | ||||||||||||||||||||||||||||||||||||||||||||||||||
PNM Resources, Inc. and Subsidiaries
Schedule 3
Condensed Consolidated Statements of Earnings
(Preliminary and Unaudited)
| Three Months Ended March 31, | |||||||||||||||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||||||||||
| Electric Operating Revenues: | |||||||||||||||||||||||||||||
| Contracts with customers | $ | 322,983 | $ | 315,698 | |||||||||||||||||||||||||
| Alternative revenue programs | 426 | 636 | |||||||||||||||||||||||||||
| Other electric operating revenue | 10,213 | 33,311 | |||||||||||||||||||||||||||
| Total electric operating revenues | 333,622 | 349,645 | |||||||||||||||||||||||||||
| Operating Expenses: | |||||||||||||||||||||||||||||
| Cost of energy | 98,710 | 121,626 | |||||||||||||||||||||||||||
| Administrative and general | 46,032 | 52,336 | |||||||||||||||||||||||||||
| Energy production costs | 33,618 | 35,072 | |||||||||||||||||||||||||||
| Regulatory disallowances and restructuring costs | — | 1,345 | |||||||||||||||||||||||||||
| Depreciation and amortization | 68,973 | 65,356 | |||||||||||||||||||||||||||
| Transmission and distribution costs | 17,286 | 16,678 | |||||||||||||||||||||||||||
| Taxes other than income taxes | 21,265 | 20,509 | |||||||||||||||||||||||||||
| Total operating expenses | 285,884 | 312,922 | |||||||||||||||||||||||||||
| Operating income | 47,738 | 36,723 | |||||||||||||||||||||||||||
| Other Income and Deductions: | |||||||||||||||||||||||||||||
| Interest income | 3,423 | 3,588 | |||||||||||||||||||||||||||
| Gains (losses) on investment securities | (32,849) | 14,014 | |||||||||||||||||||||||||||
| Other income | 2,316 | 3,446 | |||||||||||||||||||||||||||
| Other (deductions) | (3,473) | (3,252) | |||||||||||||||||||||||||||
| Net other income and deductions | (30,583) | 17,796 | |||||||||||||||||||||||||||
| Interest Charges | 30,434 | 31,634 | |||||||||||||||||||||||||||
| Earnings before Income Taxes | (13,279) | 22,885 | |||||||||||||||||||||||||||
| Income Taxes (Benefits) | (1,880) | 1,223 | |||||||||||||||||||||||||||
| Net Earnings (Loss) | (11,399) | 21,662 | |||||||||||||||||||||||||||
| (Earnings) Attributable to Valencia Non-controlling Interest | (3,729) | (2,830) | |||||||||||||||||||||||||||
| Preferred Stock Dividend Requirements of Subsidiary | (132) | (132) | |||||||||||||||||||||||||||
| Net Earnings (Loss) Attributable to PNMR | $ | (15,260) | $ | 18,700 | |||||||||||||||||||||||||
| Net Earnings (Loss) Attributable to PNMR per Common Share: | |||||||||||||||||||||||||||||
| Basic | $ | (0.19) | $ | 0.23 | |||||||||||||||||||||||||
| Diluted | $ | (0.19) | $ | 0.23 | |||||||||||||||||||||||||
| Dividends Declared per Common Share | $ | 0.3075 | $ | 0.2900 | |||||||||||||||||||||||||