Business Context and Reporting Period
This Form 8-K filing by PNM Resources, Inc., Public Service Company of New Mexico, and Texas-New Mexico Power Company (collectively, the "Company") reports the issuance of a press release on May 7, 2019. The release details the results of operations for the three-month period ended March 31, 2019.
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 reproduced in the text 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 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 condition versus prior periods within the text itself.
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 is generally unable to estimate the impact of reconciling items between forecasted GAAP earnings and ongoing earnings guidance without unreasonable effort.
- Consequently, a corresponding GAAP equivalent for forecasted ongoing earnings guidance is not provided.
The filing notes that information in this report 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, limiting liability and incorporation by reference.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated May 7, 2019) for specific GAAP and non-GAAP financial results for the quarter ended March 31, 2019.
- Verify the reconciliation between GAAP net earnings and the reported "ongoing earnings" to understand the impact of excluded items such as mark-to-market adjustments and pension expenses.
- Confirm the specific components of the "ongoing earnings guidance" provided in the press release, noting the absence of a GAAP equivalent forecast.
- Check for any updates on the pension expense related to the previously disposed of gas distribution business.