Business Context and Reporting Period
This Form 8-K, dated October 30, 2015, 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 nine months ended September 30, 2015, 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 other non-recurring or infrequent items.
Material Changes
The filing does not explicitly detail material changes versus prior periods. It notes that the Company uses non-GAAP measures to remove variances in GAAP results that are not indicative of fundamental changes in earnings capacity, allowing for comparison with prior periods.
Guidance, Outlook, and Risks
Guidance: The Company provides "ongoing earnings guidance" to reflect management's expectations of financial performance. This is a non-GAAP measure and does not represent an expectation of net earnings as defined by GAAP.
Limitations: Management states it is generally unable to estimate the impact of reconciling items between ongoing earnings guidance and forecasted GAAP earnings. Consequently, a corresponding GAAP equivalent for earnings guidance is not provided.
Risks and Contingencies: The filing includes a limitation on incorporation by reference, stating that the information furnished pursuant to Item 2.02 is not deemed "filed" under 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 October 30, 2015) for specific revenue, earnings, and cash flow figures.
- Verify the reconciliation between GAAP and non-GAAP "ongoing earnings" metrics to understand the impact of excluded items.
- Confirm the specific reconciling items (e.g., mark-to-market adjustments) affecting the difference between reported GAAP results and management's ongoing earnings guidance.
- Check subsequent filings for any updates to the guidance provided in the press release.