Business Context and Reporting Period
This Form 8-K, dated May 2, 2014, 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-month period ended March 31, 2014.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These figures are contained within the press release furnished as Exhibit 99.1, which is incorporated by reference but not detailed in the body of this 8-K.
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. These measures exclude:
- Net unrealized mark-to-market gains and losses on economic hedges.
- Net changes in unrealized impairments on assets held in trusts for available-for-sale securities.
- Certain other non-recurring or infrequent items.
Management asserts these measures remove variances not indicative of fundamental changes in earnings capacity, though they are not 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:
- Ongoing earnings guidance is not a GAAP measure and does not represent an expectation of net earnings as defined by GAAP.
- Management is generally unable to estimate the impact of reconciling items between ongoing earnings guidance and forecasted GAAP earnings.
- Consequently, a corresponding GAAP equivalent for earnings guidance is generally not provided.
The filing includes a limitation stating that the information furnished under Item 2.02 is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference in filings under the Securities Act of 1933.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated May 2, 2014) for specific GAAP and non-GAAP financial results for the quarter ended March 31, 2014.
- Verify the reconciliation between reported GAAP earnings and the Company's "ongoing earnings" metric to understand the impact of excluded items.
- Confirm that any forward-looking statements regarding "ongoing earnings" are understood as non-GAAP projections without a direct GAAP equivalent.