Business Context and Reporting Period
This Form 8-K is a current report filed on January 30, 2006, by PNM Resources, Inc., Public Service Company of New Mexico, and Texas-New Mexico Power Company. The filing announces the issuance of a press release containing unaudited results of operations for the three and twelve months ended December 31, 2005. The report serves to incorporate the press release and preliminary financial statements by reference.
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 preliminary consolidated statements of earnings, which are not included in the body of this 8-K text.
Material Changes and Non-GAAP Measures
The registrants utilize non-GAAP financial measures to present revenues, operating income, and net income. These measures exclude or include amounts related to:
- Litigation settlements
- Accounting or regulatory changes
- Restructuring of selected operations
- Certain merger activities
- Other similar events
Management states these measures are intended to remove variances not indicative of fundamental changes in earnings capacity. The filing notes that differences may exist between ongoing earnings guidance and GAAP earnings due to items such as acquisition integration costs.
Guidance, Outlook, and Risks
Management provides ongoing earnings guidance but explicitly states they are generally unable to estimate the impact of certain items on GAAP earnings. Consequently, the company does not provide a corresponding GAAP equivalent for its 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 January 30, 2006) for specific revenue, net income, and earnings per share figures.
- Examine the reconciliation between GAAP and non-GAAP measures to understand the impact of litigation, restructuring, and merger activities.
- Verify the specific components of "acquisition integration costs" affecting the difference between guidance and GAAP earnings.
- Confirm the details of the preliminary unaudited consolidated statements of earnings for the three and twelve months ended December 31, 2005.