Business Context and Reporting Period
This Form 8-K, filed on October 27, 2017, covers PNM Resources, Inc., Public Service Company of New Mexico, and Texas-New Mexico Power Company (collectively, the "Company"). The filing announces the results of operations for the three and nine months ended September 30, 2017, 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 figures but does not reproduce the data 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 impairments on available-for-sale securities.
- 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 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. This limitation arises because future differences between GAAP and ongoing earnings—such as unrealized hedge gains/losses and non-recurring items—are frequently outside the Company's control and difficult to estimate.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated October 27, 2017) 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 components excluded from non-GAAP measures for the period ended September 30, 2017.