Business Context and Reporting Period
This Form 8-K, filed on February 24, 2023, covers PNM Resources, Inc., Public Service Company of New Mexico, and Texas-New Mexico Power Company (collectively, the "Company"). The filing announces preliminary results of operations for the three months and the full year ended December 31, 2022.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document serves as a notice that a press release containing these preliminary results is attached as Exhibit 99.1 and incorporated by reference.
Material Changes and Non-GAAP Measures
The Company utilizes non-GAAP financial measures, specifically "ongoing earnings" and "ongoing diluted earnings per share," to evaluate operations and set management goals. These measures exclude:
- Net unrealized mark-to-market gains.
- Net changes in unrealized gains and losses on investment securities.
- Pension expense related to previously disposed of gas distribution businesses.
- Certain non-recurring, infrequent, and other items.
Management states these measures remove variances not indicative of fundamental changes in earnings capacity. The filing does not detail specific material changes in financial condition compared to prior periods within the text provided.
Guidance, Outlook, and Risks
The Company provides "ongoing earnings guidance" to reflect management's expectations of financial performance. However, the filing explicitly states that:
- Ongoing earnings guidance is not a GAAP measure and does not represent an expectation of GAAP net earnings.
- Management generally cannot estimate the impact of reconciling items between forecasted ongoing earnings and GAAP earnings without unreasonable effort.
- Reconciling items may include revenues and expenses from transactions outside normal business operations.
The filing includes a limitation on incorporation by reference, noting that the information is furnished pursuant to Item 2.02 and is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated February 24, 2023) for specific preliminary revenue and earnings figures for Q4 and full-year 2022.
- Verify the reconciliation between GAAP and non-GAAP "ongoing earnings" metrics in the attached press release.
- Confirm the specific impact of unrealized mark-to-market gains and pension expenses on reported results.
- Check for any updates to the Company's ongoing earnings guidance provided in the press release.