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) | March 1, 2013 | |
(March 1, 2013) |
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) | ||||
414 Silver Ave. SW | ||||
Albuquerque, New Mexico 87102-3289 | ||||
(505) 241-2700 | ||||
001-06986 | Public Service Company of New Mexico | 85-0019030 | ||
(A New Mexico Corporation) | ||||
414 Silver Ave. SW | ||||
Albuquerque, New Mexico 87102-3289 | ||||
(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: March 1, 2013 | /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 $0.11 per diluted share, compared with $1.35 per diluted share in 2011 |
• | Ongoing earnings of $0.13 per diluted share, compared with $0.22 per diluted share in 2011 |
• | GAAP earnings of $1.31 per diluted share, compared with $1.96 per diluted share in 2011 |
• | Ongoing earnings of $1.31 per diluted share, compared with $1.08 per diluted share in 2011 |
• | Company affirms 2013 consolidated ongoing earnings range of $1.32 and $1.42 per diluted share. |
• | PNM reported ongoing earnings of $91.7 million, or $1.14 per diluted share, and GAAP earnings of $91.0 million, or $1.13 per diluted share, compared with ongoing earnings of $67.5 million, or $0.76 per diluted share, and GAAP earnings of $54.0 million, or $0.60 per diluted share, during the same period in 2011. |
• | Key drivers for the 2012 improved earnings per diluted share were the implementation of higher retail and FERC transmission and generation rates, O&M cost savings, and PNM Resources' 2011 repurchase of outstanding equity securities. Primary factors that negatively affected performance were lower load compared to 2011, higher plant outage costs, lower market prices for Palo Verde Nuclear Generating Station Unit 3 output and higher interest expense from the issuance of long-term debt in late 2011. |
• | TNMP reported ongoing earnings of $26.8 million, or $0.33 per diluted share, and GAAP earnings of $26.7 million, or $0.33 per diluted share, compared with ongoing earnings of $25.8 million, or $0.29 per diluted share, and GAAP earnings of $22.3 million, or $0.25 per diluted share in 2011. |
• | Strong load growth was offset by weather that was cooler than 2011's record-breaking heat. Rate relief provided through implementation of an approved transmission cost of service increase also improved annual earnings per diluted share at TNMP, as did PNM Resources' 2011 purchase of outstanding equity securities. |
• | Corporate/Other reported ongoing losses of $12.9 million, or $0.16 per diluted share, and GAAP losses of $12.2 million, or $0.15 per diluted share, compared with 2011 ongoing losses of $12.6 million, or $0.14 per diluted share, and GAAP gains of $76.0 million, or $0.85 per diluted share, which included the gain from the sale of First Choice Power. |
PNM Electric | TNMP Electric | Corporate and Other | Consolidated | |||||||||||||
(in thousands) | ||||||||||||||||
Quarter Ended December 31, 2012 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 5,812 | $ | 6,634 | $ | (3,354 | ) | $ | 9,092 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Building consolidation | 4,180 | 935 | — | 5,115 | ||||||||||||
Mark-to-market impact of economic hedges | (2,823 | ) | — | — | (2,823 | ) | ||||||||||
Net change in unrealized impairments of NDT securities | 135 | — | — | 135 | ||||||||||||
TNMP 1999/2000 transmission rate settlement | — | (1,036 | ) | — | (1,036 | ) | ||||||||||
Total Adjustments | 1,492 | (101 | ) | — | 1,391 | |||||||||||
Ongoing Earnings (Loss) | $ | 7,304 | $ | 6,533 | $ | (3,354 | ) | $ | 10,483 | |||||||
Year Ended December 31, 2012 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 91,023 | $ | 26,747 | $ | (12,223 | ) | $ | 105,547 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Building consolidation | 4,324 | 976 | — | 5,300 | ||||||||||||
Gain on sale of First Choice Power(1) | — | — | (651 | ) | (651 | ) | ||||||||||
Mark-to-market impact of economic hedges | (965 | ) | — | — | (965 | ) | ||||||||||
Net change in unrealized impairments of NDT securities | (3,128 | ) | — | — | (3,128 | ) | ||||||||||
Process improvement initiatives | 427 | 125 | — | 552 | ||||||||||||
TNMP 1999/2000 transmission rate settlement | — | (1,036 | ) | — | (1,036 | ) | ||||||||||
Total Adjustments | 658 | 65 | (651 | ) | 72 | |||||||||||
Ongoing Earnings (Loss) | $ | 91,681 | $ | 26,812 | $ | (12,874 | ) | $ | 105,619 | |||||||
Income tax effects calculated using tax rates of 35.00% for TNMP and 39.59% for all other segments unless otherwise indicated | ||||||||||||||||
(1) Gain on sale of First Choice Power is net of income taxes of $361 |
PNM Electric | TNMP Electric | First Choice Power(3) | Corporate and Other | Consolidated | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Quarter Ended December 31, 2011 | ||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 13,489 | $ | 5,123 | $ | 3,395 | $ | 89,986 | $ | 111,993 | ||||||||||||||
Adjusting items, net of income tax effects(1) | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | 180 | — | (2,022 | ) | — | (1,842 | ) | |||||||||||||||||
Net change in unrealized impairments of NDT securities | (1,322 | ) | — | — | — | (1,322 | ) | |||||||||||||||||
Process improvement initiatives | 1,778 | 530 | 11 | — | 2,319 | |||||||||||||||||||
Strategic alternatives - competitive businesses | — | — | — | 438 | 438 | |||||||||||||||||||
2010 energy efficiency | (1,542 | ) | — | — | — | (1,542 | ) | |||||||||||||||||
Gain on sale of First Choice Power(2) | — | — | — | (97,003 | ) | (97,003 | ) | |||||||||||||||||
Loss on reacquired debt | — | — | — | 5,577 | 5,577 | |||||||||||||||||||
Total Adjustments | (906 | ) | 530 | (2,011 | ) | (90,988 | ) | (93,375 | ) | |||||||||||||||
Ongoing Earnings (Loss) | $ | 12,583 | $ | 5,653 | $ | 1,384 | $ | (1,002 | ) | $ | 18,618 | |||||||||||||
PNM Electric | TNMP Electric | First Choice Power(3) | Optim Energy (50%)(4) | Corporate and Other | Consolidated | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 53,963 | $ | 22,257 | $ | 24,116 | $ | — | $ | 76,023 | $ | 176,359 | ||||||||||||
Adjusting items, net of income tax effects(1) | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | (2,309 | ) | — | (3,147 | ) | (1,078 | ) | — | (6,534 | ) | ||||||||||||||
Net change in unrealized impairments of NDT securities | 1,380 | — | — | — | — | 1,380 | ||||||||||||||||||
Process improvement initiatives | 4,025 | 975 | 103 | — | 47 | 5,150 | ||||||||||||||||||
Regulatory disallowance | 10,559 | 2,550 | — | — | — | 13,109 | ||||||||||||||||||
Strategic alternatives - competitive businesses | — | — | — | — | 2,805 | 2,805 | ||||||||||||||||||
New Mexico gross receipts tax adjustments | 1,451 | — | — | — | — | 1,451 | ||||||||||||||||||
2010 energy efficiency | (1,542 | ) | — | — | — | — | (1,542 | ) | ||||||||||||||||
Gain on sale of First Choice Power(2) | — | — | — | — | (97,003 | ) | (97,003 | ) | ||||||||||||||||
Loss on reacquired debt | — | — | — | — | 5,577 | 5,577 | ||||||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | — | — | (4,167 | ) | — | (4,167 | ) | ||||||||||||||||
Total Adjustments | 13,564 | 3,525 | (3,044 | ) | (5,245 | ) | (88,574 | ) | (79,774 | ) | ||||||||||||||
Ongoing Earnings (Loss) | $ | 67,527 | $ | 25,782 | $ | 21,072 | $ | (5,245 | ) | $ | (12,551 | ) | $ | 96,585 | ||||||||||
(1) Income tax effects calculated using tax rates of 35.65% for First Choice Power, 35.00% for TNMP and 39.59% for all other segments unless otherwise indicated | ||||||||||||||||||||||||
(2) Gain on sale of First Choice Power is net of income taxes of $77,922 | ||||||||||||||||||||||||
(3) First Choice Power included through October 31, 2011 | ||||||||||||||||||||||||
(4) Optim Energy included through August 31, 2011 |
PNM Electric | TNMP Electric | Corporate and Other | Consolidated | |||||||||||||
(per diluted share) | ||||||||||||||||
Quarter Ended December 31, 2012 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.07 | $ | 0.08 | $ | (0.04 | ) | $ | 0.11 | |||||||
Adjusting items | ||||||||||||||||
Building consolidation | 0.05 | 0.01 | — | 0.06 | ||||||||||||
Mark-to-market impact of economic hedges | (0.04 | ) | — | — | (0.04 | ) | ||||||||||
Net change in unrealized impairments of NDT securities | 0.01 | — | — | 0.01 | ||||||||||||
TNMP 1999/2000 transmission rate settlement | — | (0.01 | ) | — | (0.01 | ) | ||||||||||
Total Adjustments | 0.02 | — | — | 0.02 | ||||||||||||
Ongoing Earnings (Loss) | $ | 0.09 | $ | 0.08 | $ | (0.04 | ) | $ | 0.13 | |||||||
Average Diluted Shares Outstanding: 80,435,093 | ||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 1.13 | $ | 0.33 | $ | (0.15 | ) | $ | 1.31 | |||||||
Adjusting items | ||||||||||||||||
Building consolidation | 0.05 | 0.01 | — | 0.06 | ||||||||||||
Gain on sale of First Choice Power | — | — | (0.01 | ) | (0.01 | ) | ||||||||||
Mark-to-market impact of economic hedges | (0.01 | ) | — | — | (0.01 | ) | ||||||||||
Net change in unrealized impairments of NDT securities | (0.04 | ) | — | — | (0.04 | ) | ||||||||||
Process improvement initiatives | 0.01 | — | — | 0.01 | ||||||||||||
TNMP 1999/2000 transmission rate settlement | — | (0.01 | ) | — | (0.01 | ) | ||||||||||
Total Adjustments | 0.01 | — | (0.01 | ) | — | |||||||||||
Ongoing Earnings (Loss) | $ | 1.14 | $ | 0.33 | $ | (0.16 | ) | $ | 1.31 | |||||||
Average Diluted Shares Outstanding: 80,416,633 |
PNM Electric | TNMP Electric | First Choice Power(1) | Corporate and Other | Consolidated | ||||||||||||||||||||
(earnings per diluted share) | ||||||||||||||||||||||||
Quarter Ended December 31, 2011 | ||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.17 | $ | 0.06 | $ | 0.04 | $ | 1.08 | $ | 1.35 | ||||||||||||||
Adjusting items | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | — | — | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||
Net change in unrealized impairments of NDT securities | (0.02 | ) | — | — | — | (0.02 | ) | |||||||||||||||||
Process improvement initiatives | 0.02 | 0.01 | — | — | 0.03 | |||||||||||||||||||
Strategic alternatives - competitive businesses | — | — | — | — | — | |||||||||||||||||||
2010 energy efficiency | (0.02 | ) | — | — | — | (0.02 | ) | |||||||||||||||||
Gain on sale of First Choice Power | — | — | — | (1.17 | ) | (1.17 | ) | |||||||||||||||||
Loss on reacquired debt | — | — | — | 0.07 | 0.07 | |||||||||||||||||||
Total Adjustments | (0.02 | ) | 0.01 | (0.02 | ) | (1.10 | ) | (1.13 | ) | |||||||||||||||
Ongoing Earnings (Loss) | $ | 0.15 | $ | 0.07 | $ | 0.02 | $ | (0.02 | ) | $ | 0.22 | |||||||||||||
Average Diluted Shares Outstanding: 83,160,239 | ||||||||||||||||||||||||
PNM Electric | TNMP Electric | First Choice Power(1) | Optim Energy (50%)(2) | Corporate and Other | Consolidated | |||||||||||||||||||
(earnings per diluted share) | ||||||||||||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.60 | $ | 0.25 | $ | 0.26 | $ | — | $ | 0.85 | $ | 1.96 | ||||||||||||
Adjusting items | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | (0.02 | ) | — | (0.03 | ) | (0.01 | ) | — | (0.06 | ) | ||||||||||||||
Net change in unrealized impairments of NDT securities | 0.02 | — | — | — | — | 0.02 | ||||||||||||||||||
Process improvement initiatives | 0.04 | 0.01 | — | — | — | 0.05 | ||||||||||||||||||
Regulatory disallowance | 0.12 | 0.03 | — | — | — | 0.15 | ||||||||||||||||||
Strategic alternatives - competitive businesses | — | — | — | — | 0.03 | 0.03 | ||||||||||||||||||
New Mexico gross receipts tax adjustments | 0.02 | — | — | — | — | 0.02 | ||||||||||||||||||
2010 energy efficiency | (0.02 | ) | — | — | — | — | (0.02 | ) | ||||||||||||||||
Gain on sale of First Choice Power | — | — | — | — | (1.08 | ) | (1.08 | ) | ||||||||||||||||
Loss on reacquired debt | — | — | — | — | 0.06 | 0.06 | ||||||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | — | — | (0.05 | ) | — | (0.05 | ) | ||||||||||||||||
Total Adjustments | 0.16 | 0.04 | (0.03 | ) | (0.06 | ) | (0.99 | ) | (0.88 | ) | ||||||||||||||
Ongoing Earnings (Loss) | $ | 0.76 | $ | 0.29 | $ | 0.23 | $ | (0.06 | ) | $ | (0.14 | ) | $ | 1.08 | ||||||||||
Average Diluted Shares Outstanding: 89,757,077 | ||||||||||||||||||||||||
(1) First Choice Power included through October 31, 2011 | ||||||||||||||||||||||||
(2) Optim Energy included through August 31, 2011 |