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) | October 31, 2014 | |
(October 31, 2014) |
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 | ||||
| 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: October 31, 2014 | /s/ Thomas G. Sategna |
Thomas G. Sategna | |
Vice President and Corporate Controller | |
(Officer duly authorized to sign this report) |
Q3 2014 | Q3 2013 | YTD 2014 | YTD 2013 | ||
GAAP net earnings | $55.7 | $54.6 | $97.3 | $92.9 | |
GAAP diluted EPS | $0.69 | $0.68 | $1.21 | $1.15 | |
Ongoing net earnings | $54.5 | $51.7 | $100.1 | $96.8 | |
Ongoing diluted EPS | $0.68 | $0.64 | $1.25 | $1.20 |
Q3 2014 | Q3 2013 | YTD 2014 | YTD 2013 | ||
GAAP net earnings | $45.2 | $47.7 | $73.0 | $85.1 | |
GAAP diluted EPS | $0.56 | $0.59 | $0.91 | $1.06 | |
Ongoing net earnings | $44.0 | $43.6 | $75.6 | $82.0 | |
Ongoing diluted EPS | $0.55 | $0.54 | $0.94 | $1.02 |
• | PNM’s ongoing earnings benefitted from the purchase of the Delta Person Generating Station (renamed the Rio Bravo Generating Station), higher market prices for Palo Verde unit 3, nuclear decommissioning trust gains, and a 2013 contribution made to the Navajo Workforce Training Initiative that did not recur in 2014. These were partially offset by increased depreciation and property tax expense, the termination of the Gallup FERC generation contract, and unseasonably cooler weather. |
Q3 2014 | Q3 2013 | YTD 2014 | YTD 2013 | ||
GAAP net earnings | $12.4 | $10.1 | $28.7 | $22.2 | |
GAAP diluted EPS | $0.15 | $0.13 | $0.36 | $0.28 | |
Ongoing net earnings | $12.4 | $10.1 | $28.7 | $22.2 | |
Ongoing diluted EPS | $0.15 | $0.13 | $0.36 | $0.28 |
• | TNMP’s ongoing earnings benefitted from rate relief, increased load and we again exceeded our Energy Efficiency goal, which resulted in a bonus payment awarded in 2014 for 2013 results. These gains were partially offset by unseasonably cooler weather. |
Q3 2014 | Q3 2013 | YTD 2014 | YTD 2013 | |
GAAP net earnings (loss) | ($1.9) | ($3.2) | ($4.4) | ($14.4) |
GAAP diluted EPS | ($0.02) | ($0.04) | ($0.05) | ($0.18) |
Ongoing net earnings (loss) | ($1.9) | ($2.0) | ($4.2) | ($7.4) |
Ongoing diluted EPS | ($0.02) | ($0.03) | ($0.05) | ($0.10) |
• | Corporate and Other benefitted from lower interest expense. |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 45,219 | $ | 12,355 | $ | (1,921 | ) | $ | 55,653 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Mark-to-market impact of economic hedges1 | (1,972 | ) | — | — | (1,972 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities2 | 791 | — | — | 791 | ||||||||||||
Total Adjustments | (1,181 | ) | — | — | (1,181 | ) | ||||||||||
Ongoing Earnings (Loss) | $ | 44,038 | $ | 12,355 | $ | (1,921 | ) | $ | 54,472 | |||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 72,976 | $ | 28,691 | $ | (4,405 | ) | $ | 97,262 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Mark-to-market impact of economic hedges5 | (41 | ) | — | — | (41 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities2 | 517 | — | — | 517 | ||||||||||||
New Mexico corporate income tax rate change6 | — | — | 241 | 241 | ||||||||||||
Process improvement initiatives3 | 1,115 | 34 | — | 1,149 | ||||||||||||
San Juan Coal Company audit arbitration4 | 1,015 | — | — | 1,015 | ||||||||||||
Total Adjustments | 2,606 | 34 | 241 | 2,881 | ||||||||||||
Ongoing Earnings (Loss) | $ | 75,582 | $ | 28,725 | $ | (4,164 | ) | $ | 100,143 | |||||||
2014 income tax effects calculated using tax rates of 35.00% for TNMP and 39.42% for other segments. | ||||||||||||||||
The impacts of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows: | ||||||||||||||||
1Pre-tax7 impacts reflected as $3,227 thousand increase in "Electric Operating Revenues" and $28 thousand reduction in "Cost of energy" | ||||||||||||||||
2Pre-tax7 impact reflected in "Gains on available-for-sale securities" | ||||||||||||||||
3Pre-tax7 impact reflected in "Administrative and general" | ||||||||||||||||
4Pre-tax7 impact reflected in "Cost of energy" | ||||||||||||||||
5Pre-tax7 impacts reflected as $138 thousand reduction in "Electric Operating Revenues" and $205 thousand reduction in "Cost of energy" | ||||||||||||||||
6Impact reflected in "Income Taxes" | ||||||||||||||||
7Tax impacts reflected in "Income Taxes" |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 47,691 | $ | 10,106 | $ | (3,242 | ) | $ | 54,555 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Mark-to-market impact of economic hedges1 | (4,629 | ) | — | — | (4,629 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities2 | (472 | ) | — | — | (472 | ) | ||||||||||
Loss on reacquired debt3 | — | — | 1,202 | 1,202 | ||||||||||||
Regulatory disallowance4 | 1,048 | — | — | 1,048 | ||||||||||||
Total Adjustments | (4,053 | ) | — | 1,202 | (2,851 | ) | ||||||||||
Ongoing Earnings (Loss) | $ | 43,638 | $ | 10,106 | $ | (2,040 | ) | $ | 51,704 | |||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 85,120 | $ | 22,170 | $ | (14,431 | ) | $ | 92,859 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
New Mexico corporate income tax rate change5 | — | — | 1,234 | 1,234 | ||||||||||||
Mark-to-market impact of economic hedges6 | (3,538 | ) | — | — | (3,538 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities2 | (606 | ) | — | — | (606 | ) | ||||||||||
Loss on reacquired debt3 | — | — | 1,908 | 1,908 | ||||||||||||
State tax credit impairment5 | — | — | 3,880 | 3,880 | ||||||||||||
Regulatory disallowance4 | 1,048 | — | — | 1,048 | ||||||||||||
Total Adjustments | (3,096 | ) | — | 7,022 | 3,926 | |||||||||||
Ongoing Earnings (Loss) | $ | 82,024 | $ | 22,170 | $ | (7,409 | ) | $ | 96,785 | |||||||
Income tax effects calculated using tax rates of 35.00% for TNMP and 39.59% for all other segments unless otherwise noted | ||||||||||||||||
The impacts of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows: | ||||||||||||||||
1Pre-tax7 impacts reflected as $7,568 thousand increase in "Electric Operating Revenues" and $95 thousand reduction in "Cost of energy" | ||||||||||||||||
2Pre-tax7 impact reflected in "Gains on available-for-sale securities" | ||||||||||||||||
3Pre-tax7 impact reflected in "Other (deductions)" | ||||||||||||||||
4Pre-tax7 impact reflected in "Regulatory disallowances" | ||||||||||||||||
5Impact reflected in "Income Taxes" | ||||||||||||||||
6Pre-tax7 impacts reflected as $5,021 thousand increase in "Electric Operating Revenues" and $837 thousand reduction in "Cost of energy" | ||||||||||||||||
7Tax impacts reflected in "Income Taxes" | ||||||||||||||||
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||
(per diluted share) | ||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.56 | $ | 0.15 | $ | (0.02 | ) | $ | 0.69 | |||||||
Adjusting items | ||||||||||||||||
Mark-to-market impact of economic hedges | (0.02 | ) | — | — | (0.02 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities | 0.01 | — | — | 0.01 | ||||||||||||
Total Adjustments | (0.01 | ) | — | — | (0.01 | ) | ||||||||||
Ongoing Earnings (Loss) | $ | 0.55 | $ | 0.15 | $ | (0.02 | ) | $ | 0.68 | |||||||
Average Diluted Shares Outstanding: 80,223,101 | ||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.91 | $ | 0.36 | $ | (0.05 | ) | $ | 1.21 | |||||||
Adjusting items | ||||||||||||||||
Mark-to-market impact of economic hedges | — | — | — | — | ||||||||||||
Net change in unrealized impairments of available-for-sale securities | 0.01 | — | — | 0.01 | ||||||||||||
New Mexico corporate income tax rate change | — | — | — | — | ||||||||||||
Process improvement initiatives | 0.01 | — | — | 0.01 | ||||||||||||
San Juan Coal Company audit arbitration | 0.01 | — | — | 0.01 | ||||||||||||
Total Adjustments | 0.03 | — | — | 0.03 | ||||||||||||
Ongoing Earnings (Loss) | $ | 0.94 | $ | 0.36 | $ | (0.05 | ) | $ | 1.25 | |||||||
Average Diluted Shares Outstanding: 80,279,154 | ||||||||||||||||
Tables may not appear visually accurate due to rounding. |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||
(per diluted share) | ||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.59 | $ | 0.13 | $ | (0.04 | ) | $ | 0.68 | |||||||
Adjusting items | ||||||||||||||||
Mark-to-market impact of economic hedges | (0.05 | ) | — | — | (0.05 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities | (0.01 | ) | — | — | (0.01 | ) | ||||||||||
Loss on reacquired debt | — | — | 0.01 | 0.01 | ||||||||||||
Regulatory disallowance | 0.01 | — | — | 0.01 | ||||||||||||
Total Adjustments | (0.05 | ) | — | 0.01 | (0.04 | ) | ||||||||||
Ongoing Earnings (Loss) | $ | 0.54 | $ | 0.13 | $ | (0.03 | ) | $ | 0.64 | |||||||
Average Diluted Shares Outstanding: 80,333,822 | ||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 1.06 | $ | 0.28 | $ | (0.18 | ) | $ | 1.15 | |||||||
Adjusting items | ||||||||||||||||
New Mexico corporate income tax rate change | — | — | 0.02 | 0.02 | ||||||||||||
Mark-to-market impact of economic hedges | (0.04 | ) | — | — | (0.04 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities | (0.01 | ) | — | — | (0.01 | ) | ||||||||||
Loss on reacquired debt | — | — | 0.02 | 0.02 | ||||||||||||
State tax credit impairment | — | — | 0.05 | 0.05 | ||||||||||||
Regulatory disallowance | 0.01 | — | — | 0.01 | ||||||||||||
Total Adjustments | (0.04 | ) | — | 0.09 | 0.05 | |||||||||||
Ongoing Earnings (Loss) | $ | 1.02 | $ | 0.28 | $ | (0.10 | ) | $ | 1.20 | |||||||
Average Diluted Shares Outstanding: 80,456,181 | ||||||||||||||||
Tables may not appear visually accurate due to rounding. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
Electric Operating Revenues | $ | 413,951 | $ | 399,730 | $ | 1,089,008 | $ | 1,064,993 | |||||||
Operating Expenses: | |||||||||||||||
Cost of energy | 132,499 | 114,674 | 354,532 | 325,039 | |||||||||||
Administrative and general | 42,190 | 46,915 | 131,283 | 134,744 | |||||||||||
Energy production costs | 43,287 | 41,142 | 136,422 | 131,546 | |||||||||||
Regulatory disallowances | — | 1,735 | — | 1,735 | |||||||||||
Depreciation and amortization | 44,295 | 42,743 | 128,424 | 125,189 | |||||||||||
Transmission and distribution costs | 16,884 | 17,248 | 49,857 | 50,690 | |||||||||||
Taxes other than income taxes | 17,997 | 17,534 | 51,641 | 49,739 | |||||||||||
Total operating expenses | 297,152 | 281,991 | 852,159 | 818,682 | |||||||||||
Operating income | 116,799 | 117,739 | 236,849 | 246,311 | |||||||||||
Other Income and Deductions: | |||||||||||||||
Interest income | 2,084 | 2,264 | 6,241 | 7,731 | |||||||||||
Gains on available-for-sale securities | 962 | 2,188 | 8,234 | 6,935 | |||||||||||
Other income | 2,895 | 3,254 | 7,648 | 7,577 | |||||||||||
Other (deductions) | (2,084 | ) | (5,970 | ) | (7,185 | ) | (13,516 | ) | |||||||
Net other income and deductions | 3,857 | 1,736 | 14,938 | 8,727 | |||||||||||
Interest Charges | 30,115 | 30,365 | 89,621 | 92,279 | |||||||||||
Earnings before Income Taxes | 90,541 | 89,110 | 162,166 | 162,759 | |||||||||||
Income Taxes | 31,055 | 30,296 | 53,368 | 58,600 | |||||||||||
Net Earnings | 59,486 | 58,814 | 108,798 | 104,159 | |||||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (3,701 | ) | (4,127 | ) | (11,140 | ) | (10,904 | ) | |||||||
Preferred Stock Dividend Requirements of Subsidiary | (132 | ) | (132 | ) | (396 | ) | (396 | ) | |||||||
Net Earnings Attributable to PNMR | $ | 55,653 | $ | 54,555 | $ | 97,262 | $ | 92,859 | |||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||||
Basic | $ | 0.70 | $ | 0.68 | $ | 1.22 | $ | 1.16 | |||||||
Diluted | $ | 0.69 | $ | 0.68 | $ | 1.21 | $ | 1.15 | |||||||
Dividends Declared per Common Share | $ | 0.185 | $ | 0.165 | $ | 0.555 | $ | 0.495 |