Business Context and Reporting Period
This Form 8-K, filed on August 2, 2013, 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 six months ended June 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. 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 changes in unrealized impairments on assets held in trusts for nuclear decommissioning.
- Certain other non-recurring or infrequent items.
Material Changes
The filing does not detail specific material changes in financial performance versus prior periods. It notes that non-GAAP measures are used to remove variances in GAAP results that are not indicative of fundamental changes in the Company's earnings capacity.
Guidance, Outlook, and Risks
The Company provides "ongoing earnings guidance" to reflect management's expectations of financial performance. However, management states it 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 not provided. Reconciling items may include revenues and expenses from transactions outside normal business operations.
The filing includes a limitation stating that the information, including exhibits, is furnished pursuant to Item 2.02 and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor incorporated by reference in filings under the Securities Act of 1933.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated August 2, 2013) for specific revenue, earnings, and cash flow figures.
- Verify the reconciliation between GAAP net earnings and non-GAAP "ongoing earnings."
- Assess the impact of unrealized mark-to-market gains/losses on economic hedges.
- Examine changes in unrealized impairments on nuclear decommissioning trust assets.
- Confirm the specific components of non-recurring items excluded from ongoing earnings.