Business Context and Reporting Period
This Form 8-K was filed on October 30, 2020, by PNM Resources, Inc., Public Service Company of New Mexico, and Texas-New Mexico Power Company (collectively, the "Company"). The filing serves to announce the results of operations for the three and nine months ended September 30, 2020, via a press release incorporated by reference as Exhibit 99.1.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It references a press release containing these details but does not include the figures within the body of this 8-K document.
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 and losses on economic hedges.
- 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, though they should not be viewed as a substitute for GAAP measures.
Guidance, Outlook, and Risks
The Company provides "ongoing earnings guidance" to reflect management's expectations of financial performance. However, the filing explicitly states that management is generally unable to provide a corresponding GAAP equivalent for this guidance due to the difficulty in estimating future reconciling items, such as unrealized hedge gains/losses and non-recurring transactions. The filing includes a limitation stating that the information is furnished and not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated October 30, 2020) for specific GAAP and non-GAAP financial figures.
- Verify the reconciliation between GAAP net earnings and the reported "ongoing earnings."
- Assess the impact of unrealized mark-to-market gains/losses on economic hedges on reported volatility.
- Confirm the specific amounts excluded for pension expenses related to disposed gas distribution businesses.