Business Context and Reporting Period
This Form 8-K, dated April 28, 2017, 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, 2017, 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 document.
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 available-for-sale securities.
- Certain non-recurring, infrequent, and other items.
Material Changes
The filing does not detail specific material changes in financial performance versus the prior comparable period. It notes that the press release (Exhibit 99.1) contains the results of operations for the quarter ended March 31, 2017.
Guidance, Outlook, and Risks
Guidance and Outlook: The Company provides "ongoing earnings guidance" to reflect management's expectations of ongoing financial performance. This is a non-GAAP measure and is not intended to represent an expectation of net earnings as defined by GAAP. Management states it is generally unable to estimate the impact of reconciling items (such as unrealized hedge gains/losses) on forecasted GAAP earnings, and therefore cannot provide a corresponding GAAP equivalent for its ongoing earnings guidance.
Risks and Contingencies: The filing highlights that non-GAAP measures should not be considered in isolation or as a substitute for GAAP measures. It notes that future differences between GAAP and ongoing earnings are frequently outside the Company's control.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated April 28, 2017) for specific revenue, earnings, and cash flow figures for the quarter ended March 31, 2017.
- Verify the reconciliation between GAAP net earnings and the Company's non-GAAP "ongoing earnings" to understand the impact of excluded items like economic hedges.
- Confirm the specific components of the "ongoing earnings guidance" provided in the press release, noting the absence of a corresponding GAAP forecast.
- Check for any updates on unrealized impairments on available-for-sale securities mentioned as a reconciling item.