Business Context and Reporting Period
This Form 8-K, dated April 27, 2018, 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-month period ended March 31, 2018, 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 document.
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 change in unrealized gains and losses on investment securities.
- Pension expense related to previously disposed of gas distribution business.
- Certain non-recurring, infrequent, and other items.
Material Changes
The filing does not explicitly detail material changes versus the prior comparable period. It notes that the press release contains the results of operations for the quarter ended March 31, 2018, but the specific variances are not listed in this summary text.
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 net earnings as defined by GAAP.
- Management is generally unable to estimate the impact of reconciling items between forecasted GAAP earnings and ongoing earnings guidance.
- Consequently, the Company does not provide a corresponding GAAP equivalent for its forecasted ongoing earnings guidance.
Risks associated with the guidance include future differences between GAAP and ongoing earnings that are frequently outside the Company's control, such as unrealized mark-to-market adjustments and pension expenses.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated April 27, 2018) for specific revenue, earnings, and cash flow figures for the quarter ended March 31, 2018.
- Verify the reconciliation between GAAP and non-GAAP "ongoing earnings" metrics to understand the impact of excluded items like mark-to-market adjustments.
- Confirm that the "ongoing earnings guidance" provided by management is not a substitute for GAAP net earnings projections.
- Note that the information in this 8-K is furnished and not deemed "filed" for liability purposes under Section 18 of the Securities Exchange Act of 1934.