UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
FORM 8-K |
CURRENT REPORT |
PURSUANT TO SECTION 13 OR 15(d) OF THE |
SECURITIES EXCHANGE ACT OF 1934 |
Date of Report (Date of earliest event reported) | November 2, 2012 | |
(November 2, 2012) |
Commission | Name of Registrants, State of Incorporation, | I.R.S. Employer | ||
File Number | Address and Telephone Number | Identification No. | ||
001-32462 | PNM Resources, Inc. | 85-0468296 | ||
(A New Mexico Corporation) | ||||
Alvarado Square | ||||
Albuquerque, New Mexico 87158 | ||||
(505) 241-2700 | ||||
001-06986 | Public Service Company of New Mexico | 85-0019030 | ||
(A New Mexico Corporation) | ||||
Alvarado Square | ||||
Albuquerque, New Mexico 87158 | ||||
(505) 241-2700 | ||||
002-97230 | Texas-New Mexico Power Company | 75-0204070 | ||
(A Texas Corporation) | ||||
577 N. Garden Ridge Blvd. | ||||
Lewisville, Texas 75067 | ||||
(972) 420-4189 | ||||
______________________________ | ||||
(Former name or former address, if changed since last report) |
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c)) |
PNM RESOURCES, INC. | |
PUBLIC SERVICE COMPANY OF NEW MEXICO | |
TEXAS-NEW MEXICO POWER COMPANY | |
(Registrants) | |
Date: November 2, 2012 | /s/ Thomas G. Sategna |
Thomas G. Sategna | |
Vice President and Corporate Controller | |
(Officer duly authorized to sign this report) |
• | GAAP (generally accepted accounting principles) earnings of $0.72 per diluted share, compared with $0.48 per diluted share in 2011 |
• | Ongoing earnings of $0.69 per diluted share, compared with $0.61 per diluted share in 2011 |
• | GAAP earnings of $1.20 per diluted share, compared with $0.70 per diluted share in 2011 |
• | Ongoing earnings of $1.18 per diluted share, compared with $0.85 per diluted share in 2011 |
• | PNM reported ongoing earnings of $48.7 million, or $0.61 per diluted share, compared with $41.7 million, or $0.45 per diluted share, in 2011. GAAP earnings were $50.8 million, or $0.63 per diluted share, compared with $38.3 million, or $0.42 per diluted share, during the same period in 2011. |
• | Primary drivers for improved earnings per diluted share were the implementation of higher retail and FERC generation rates, O&M cost savings and PNM Resources' recapitalization of the business through repurchase of outstanding equity securities. The recapitalization was accomplished with proceeds from the company's exit from its competitive businesses. Primary factors that negatively affected performance were cooler weather compared to last year, lower market prices for Palo Verde Nuclear Generating Station Unit 3 and higher interest expense from the issuance of long-term debt in late 2011. Year-to-date load growth has been neutral relative to 2011. |
• | TNMP reported ongoing and GAAP earnings of $9.1 million, or $0.11 per diluted share, compared with ongoing earnings of $9.0 million and GAAP earnings of $8.9 million, or $0.10 per diluted share in 2011. |
• | Strong load growth was offset by weather that was cooler than last year's record-breaking heat. PNM Resources' purchase of outstanding equity securities following its exit from its competitive businesses improved earnings per diluted share at TNMP. |
• | Corporate/Other reported ongoing losses of $2.7 million, or $0.03 per diluted share, and GAAP losses of $2.0 million, or $0.02 per diluted share, compared with 2011 ongoing losses of $2.7 million, or $0.02 per diluted share, and GAAP losses of $4.1 million, or $0.05 per diluted share. |
• | The repurchase of long-term debt in late 2011 in connection with the recapitalization of the utility businesses decreased interest expense and improved performance. |
PNM Electric | TNMP Electric | Corporate and Other | Consolidated | |||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 50,779 | $ | 9,084 | $ | (1,999 | ) | $ | 57,864 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Building consolidation | 144 | 42 | — | 186 | ||||||||||||
Gain on sale of First Choice | — | — | (651 | ) | (651 | ) | ||||||||||
Mark-to-market impact of economic hedges | 662 | — | — | 662 | ||||||||||||
Net change in unrealized impairments of NDT securities | (2,769 | ) | — | — | (2,769 | ) | ||||||||||
Process improvement initiatives | (145 | ) | (43 | ) | — | (188 | ) | |||||||||
Total Adjustments | (2,108 | ) | (1 | ) | (651 | ) | (2,760 | ) | ||||||||
Ongoing Earnings (Loss) | $ | 48,671 | $ | 9,083 | $ | (2,650 | ) | $ | 55,104 | |||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 85,211 | $ | 20,113 | $ | (8,868 | ) | $ | 96,456 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Building consolidation | 144 | 42 | — | 186 | ||||||||||||
Gain on sale of First Choice | — | — | (651 | ) | (651 | ) | ||||||||||
Mark-to-market impact of economic hedges | 1,858 | — | — | 1,858 | ||||||||||||
Net change in unrealized impairments of NDT securities | (3,263 | ) | — | — | (3,263 | ) | ||||||||||
Process improvement initiatives | 427 | 124 | — | 551 | ||||||||||||
Total Adjustments | (834 | ) | 166 | (651 | ) | (1,319 | ) | |||||||||
Ongoing Earnings (Loss) | $ | 84,377 | $ | 20,279 | $ | (9,519 | ) | $ | 95,137 | |||||||
Income tax effects calculated using tax rates of 35.00% for TNMP and 39.59% for all other segments unless otherwise noted |
PNM Electric | TNMP Electric | First Choice | Optim Energy (50%)(2) | Corporate and Other | Consolidated | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Three Months Ended September 30, 2011 | ||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 38,329 | $ | 8,868 | $ | 613 | $ | — | $ | (4,148 | ) | $ | 43,662 | |||||||||||
Adjusting items, net of income tax effects(1) | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | (1,612 | ) | — | 2,443 | (283 | ) | — | 548 | ||||||||||||||||
Net change in unrealized impairments of NDT securities | 3,058 | — | — | — | — | 3,058 | ||||||||||||||||||
Process improvement initiatives | 463 | 159 | 29 | — | — | 651 | ||||||||||||||||||
Strategic alternatives - competitive businesses | — | — | — | — | 1,461 | 1,461 | ||||||||||||||||||
New Mexico gross receipts tax adjustments | 1,471 | — | — | — | — | 1,471 | ||||||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | — | — | 5,154 | — | 5,154 | ||||||||||||||||||
Total Adjustments | 3,380 | 159 | 2,472 | 4,871 | 1,461 | 12,343 | ||||||||||||||||||
Ongoing Earnings (Loss) | $ | 41,709 | $ | 9,027 | $ | 3,085 | $ | 4,871 | $ | (2,687 | ) | $ | 56,005 | |||||||||||
Nine Months Ended September 30, 2011 | ||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 40,474 | $ | 17,134 | $ | 20,721 | $ | — | $ | (13,963 | ) | $ | 64,366 | |||||||||||
Adjusting items, net of income tax effects(1) | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | (2,488 | ) | — | (1,125 | ) | (1,078 | ) | — | (4,691 | ) | ||||||||||||||
Net change in unrealized impairments of NDT securities | 2,702 | — | — | — | — | 2,702 | ||||||||||||||||||
Process improvement initiatives | 2,227 | 445 | 92 | — | 47 | 2,811 | ||||||||||||||||||
Regulatory disallowances | 10,559 | 2,550 | — | — | — | 13,109 | ||||||||||||||||||
Strategic alternatives - competitive businesses | — | — | — | — | 2,367 | 2,367 | ||||||||||||||||||
New Mexico gross receipts tax adjustments | 1,471 | — | — | — | — | 1,471 | ||||||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | — | — | (4,167 | ) | — | (4,167 | ) | ||||||||||||||||
Total Adjustments | 14,471 | 2,995 | (1,033 | ) | (5,245 | ) | 2,414 | 13,602 | ||||||||||||||||
Ongoing Earnings (Loss) | $ | 54,945 | $ | 20,129 | $ | 19,688 | $ | (5,245 | ) | $ | (11,549 | ) | $ | 77,968 | ||||||||||
(1) Income tax effects calculated using tax rates of 35.65% for First Choice, 35.00% for TNMP and 39.59% for all other segments | ||||||||||||||||||||||||
(2) Optim Energy included through August 31, 2011 |
PNM Electric | TNMP Electric | Corporate and Other | Consolidated | |||||||||||||
(per diluted share) | ||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.63 | $ | 0.11 | $ | (0.02 | ) | $ | 0.72 | |||||||
Adjusting items | ||||||||||||||||
Building consolidation | — | — | — | — | ||||||||||||
Gain on sale of First Choice | — | — | (0.01 | ) | (0.01 | ) | ||||||||||
Mark-to-market impact of economic hedges | 0.01 | — | — | 0.01 | ||||||||||||
Net change in unrealized impairments of NDT securities | (0.03 | ) | — | — | (0.03 | ) | ||||||||||
Process improvement initiatives | — | — | — | — | ||||||||||||
Total Adjustments | (0.02 | ) | — | (0.01 | ) | (0.03 | ) | |||||||||
Ongoing Earnings (Loss) | $ | 0.61 | $ | 0.11 | $ | (0.03 | ) | $ | 0.69 | |||||||
Average Diluted Shares Outstanding: 80,390,385 | ||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 1.06 | $ | 0.25 | $ | (0.11 | ) | $ | 1.20 | |||||||
Adjusting items | ||||||||||||||||
Building consolidation | — | — | — | — | ||||||||||||
Gain on sale of First Choice | — | — | (0.01 | ) | (0.01 | ) | ||||||||||
Mark-to-market impact of economic hedges | 0.02 | — | — | 0.02 | ||||||||||||
Net change in unrealized impairments of NDT securities | (0.04 | ) | — | — | (0.04 | ) | ||||||||||
Process improvement initiatives | 0.01 | — | — | 0.01 | ||||||||||||
Total Adjustments | (0.01 | ) | — | (0.01 | ) | (0.02 | ) | |||||||||
Ongoing Earnings (Loss) | $ | 1.05 | $ | 0.25 | $ | (0.12 | ) | $ | 1.18 | |||||||
Average Diluted Shares Outstanding: 80,410,479 |
PNM Electric | TNMP Electric | First Choice | Optim Energy (50%)* | Corporate and Other | Consolidated | |||||||||||||||||||
(per diluted share) | ||||||||||||||||||||||||
Three Months Ended September 30, 2011 | ||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.42 | $ | 0.10 | $ | 0.01 | $ | — | $ | (0.05 | ) | $ | 0.48 | |||||||||||
Adjusting items | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | (0.02 | ) | — | 0.02 | — | — | — | |||||||||||||||||
Net change in unrealized impairments of NDT securities | 0.03 | — | — | — | — | 0.03 | ||||||||||||||||||
Process improvement initiatives | 0.01 | — | — | — | — | 0.01 | ||||||||||||||||||
Strategic alternatives - competitive businesses | — | — | — | — | 0.03 | 0.03 | ||||||||||||||||||
New Mexico gross receipts tax adjustments | 0.01 | — | — | — | — | 0.01 | ||||||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | — | — | 0.05 | — | 0.05 | ||||||||||||||||||
Total Adjustments | 0.03 | — | 0.02 | 0.05 | 0.03 | 0.13 | ||||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.45 | $ | 0.10 | $ | 0.03 | $ | 0.05 | $ | (0.02 | ) | $ | 0.61 | |||||||||||
Average Diluted Shares Outstanding: 91,742,267 | ||||||||||||||||||||||||
Nine Months Ended September 30, 2011 | ||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.44 | $ | 0.19 | $ | 0.22 | $ | — | $ | (0.15 | ) | $ | 0.70 | |||||||||||
Adjusting items | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | (0.03 | ) | — | (0.01 | ) | (0.01 | ) | — | (0.05 | ) | ||||||||||||||
Net change in unrealized impairments of NDT securities | 0.03 | — | — | — | — | 0.03 | ||||||||||||||||||
Process improvement initiatives | 0.03 | — | — | — | — | 0.03 | ||||||||||||||||||
Regulatory disallowances | 0.12 | 0.03 | — | — | — | 0.15 | ||||||||||||||||||
Strategic alternatives - competitive businesses | — | — | — | — | 0.03 | 0.03 | ||||||||||||||||||
New Mexico gross receipts tax adjustments | 0.01 | — | — | — | — | 0.01 | ||||||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | — | — | (0.05 | ) | — | (0.05 | ) | ||||||||||||||||
Total Adjustments | 0.16 | 0.03 | (0.01 | ) | (0.06 | ) | 0.03 | 0.15 | ||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.60 | $ | 0.22 | $ | 0.21 | $ | (0.06 | ) | $ | (0.12 | ) | $ | 0.85 | ||||||||||
Average Diluted Shares Outstanding: 91,980,853 | ||||||||||||||||||||||||
* Optim Energy included through August 31, 2011 |