Business Context and Reporting Period
This Form 8-K, dated November 1, 2013, 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, 2013, 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. These figures are contained within the referenced press release (Exhibit 99.1) and are not detailed in the body of this 8-K report.
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 nuclear decommissioning.
- Certain other non-recurring or infrequent items.
Management states 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 GAAP net earnings.
- 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 on incorporation by reference, noting that the information is furnished pursuant to Item 2.02 and is not deemed "filed" under Section 18 of the Securities Exchange Act of 1934.
Investor Verification Checklist
- Verify the specific revenue, net earnings, and earnings per share figures in the attached press release (Exhibit 99.1).
- Review the reconciliation between GAAP and non-GAAP "ongoing earnings" to understand the impact of mark-to-market adjustments and nuclear decommissioning impairments.
- Confirm the specific details of the "ongoing earnings guidance" provided in the press release, noting the absence of a GAAP equivalent.
- Check for any material non-recurring items excluded from the non-GAAP measures that may affect future GAAP results.