Business Context and Reporting Period
This Form 8-K, dated August 8, 2016, 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 and six months ended June 30, 2016, 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.
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 change in unrealized impairments on available-for-sale securities.
- Certain non-recurring or infrequent items.
Material Changes
The filing does not explicitly detail material changes versus prior periods within the text provided. It notes that the press release contains the comparative results for the three and six months ended June 30, 2016.
Guidance, Outlook, and Risks
The Company provides "ongoing earnings guidance" to reflect management's expectations of financial performance. However, the filing explicitly states:
- 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 (such as unrealized hedge gains/losses) on forecasted GAAP earnings.
- Consequently, the Company does not provide a corresponding GAAP equivalent for its forecasted ongoing earnings guidance.
The filing includes a limitation stating that the information furnished is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 and is not subject to the liability of that section.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release dated August 8, 2016) for specific revenue, earnings, and cash flow figures.
- Verify the reconciliation between GAAP and non-GAAP "ongoing earnings" metrics in the full press release.
- Assess the impact of unrealized mark-to-market gains/losses on economic hedges, as these are excluded from the Company's primary performance measures.
- Confirm that the "ongoing earnings guidance" provided by management is not a substitute for GAAP net earnings forecasts.