Business Context and Reporting Period
This Form 8-K, filed on August 4, 2023, 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, 2023, 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 details but does not reproduce the figures 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 gains and losses on investment securities.
- Pension expense related to previously disposed of gas distribution businesses.
- Certain non-recurring, infrequent, and other items.
Management states these measures remove variances not indicative of fundamental changes in earnings capacity. The filing does not detail specific material changes in financial position compared to prior periods.
Guidance, Outlook, and Risks
The Company provides "ongoing earnings guidance" to reflect management's expectations of financial performance. However, the filing explicitly states that:
- 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 between forecasted ongoing earnings and GAAP earnings without unreasonable effort.
- Reconciling items may include revenues and expenses from transactions outside normal business operations.
The filing includes a limitation on incorporation by reference, noting that the information is furnished and not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated August 4, 2023) for specific revenue, earnings, and cash flow figures for the three and six months ended June 30, 2023.
- Verify the reconciliation between GAAP and non-GAAP "ongoing earnings" metrics in the full press release.
- Confirm the specific impact of unrealized mark-to-market gains/losses and pension expenses on reported results.
- Check for any updates to the Company's ongoing earnings guidance provided in the referenced press release.