Business Context and Reporting Period
This Form 8-K, dated October 28, 2016, is filed 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, 2016, 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.
The Company utilizes non-GAAP financial measures, including "ongoing earnings" and "ongoing diluted earnings per share," to evaluate operations. These measures exclude:
- Net unrealized mark-to-market gains and losses on economic hedges.
- Net change in unrealized impairments on available-for-sale securities.
- Certain non-recurring, infrequent, and other items.
Material Changes
The filing does not detail specific material changes in financial performance versus prior periods. It notes that the press release (Exhibit 99.1) contains the comparative results for the three and nine months ended September 30, 2016.
Guidance, Outlook, and Risks
The Company provides "ongoing earnings guidance" to reflect management's expectations of financial performance. However, the filing explicitly states:
- 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 (such as mark-to-market gains/losses) on future GAAP earnings.
- Consequently, the Company does not provide a corresponding GAAP equivalent for its forecasted ongoing earnings guidance.
The filing includes a limitation stating 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, nor is it incorporated by reference in filings under the Securities Act of 1933.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated October 28, 2016) for specific revenue, earnings, and cash flow figures.
- Verify the reconciliation between GAAP and non-GAAP "ongoing earnings" metrics in the press release.
- Assess the impact of unrealized mark-to-market gains/losses on economic hedges, as these are excluded from the Company's primary performance measures.
- Confirm that ongoing earnings guidance should not be interpreted as a forecast for GAAP net earnings.