Business Context and Reporting Period
This Form 8-K is filed by PNM Resources, Inc., Public Service Company of New Mexico, and Texas-New Mexico Power Company (collectively, the "Company") on July 12, 2019. The filing reports the issuance of a press release announcing revised 2019 earnings guidance. The report incorporates by reference information regarding the quarter ended June 30, 2019, though specific quarterly financial data is not detailed within this document.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses on the methodology for reporting "ongoing earnings," a non-GAAP financial measure used by management to evaluate operations. This measure excludes net unrealized mark-to-market gains/losses on economic hedges, changes in unrealized gains/losses on investment securities, pension expenses related to disposed gas distribution businesses, and certain non-recurring items.
Material Changes
The primary material change reported is the revision of the Company's 2019 earnings guidance. The filing notes that the Company does not provide a corresponding GAAP equivalent for its forecasted ongoing earnings guidance because future differences between GAAP and ongoing earnings are frequently outside the Company's control and cannot be estimated without unreasonable effort.
Guidance, Outlook, and Risks
- Guidance Revision: The Company issued revised 2019 earnings guidance on July 12, 2019, detailed in the accompanying press release (Exhibit 99.1).
- Non-GAAP Measures: Management utilizes "ongoing earnings" and "ongoing diluted earnings per share" for internal goals and incentive compensation. These measures are not substitutes for GAAP measures.
- Limitations: The information in this report 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 into other filings.
Investor Verification Checklist
- Review the full text of the press release (Exhibit 99.1) to obtain the specific numerical values for the revised 2019 earnings guidance.
- Verify the reconciliation between GAAP net earnings and the non-GAAP "ongoing earnings" figures in the Company's most recent 10-Q or 10-K filings.
- Confirm the specific impact of the excluded items (e.g., mark-to-market adjustments, pension expenses) on the reported guidance.
- Check subsequent filings for any updates to the guidance or material changes in the Company's financial condition.