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) | February 27, 2015 | |
(February 27, 2015) |
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: February 27, 2015 | /s/ Thomas G. Sategna |
Thomas G. Sategna | |
Vice President and Corporate Controller | |
(Officer duly authorized to sign this report) |
Q4 2014 | Q4 2013 | YE 2014 | YE 2013 | ||
GAAP net earnings | $19.0 | $7.6 | $116.3 | $100.5 | |
GAAP diluted EPS | $0.24 | $0.10 | $1.45 | $1.25 | |
Ongoing net earnings | $19.5 | $16.7 | $119.6 | $113.5 | |
Ongoing diluted EPS | $0.24 | $0.21 | $1.49 | $1.41 |
Q4 2014 | Q4 2013 | YE 2014 | YE 2013 | ||
GAAP net earnings | $13.8 | $2.5 | $86.8 | $87.6 | |
GAAP diluted EPS | $0.17 | $0.03 | $1.08 | $1.09 | |
Ongoing net earnings | $12.4 | $11.5 | $88.0 | $93.5 | |
Ongoing diluted EPS | $0.16 | $0.14 | $1.10 | $1.16 |
• | PNM’s fourth quarter ongoing earnings benefitted from rate relief, a 2013 contribution made to the PNM Resources Foundation that did not recur in 2014, higher market prices for Palo Verde unit 3, and AFUDC. These were partially offset by the termination of the Gallup wholesale generation contract, the acceleration of a planned plant outage at the Afton Generating Station, a decline in load, and mild weather. |
Q4 2014 | Q4 2013 | YE 2014 | YE 2013 | ||
GAAP net earnings | $ 9.1 | $6.9 | $37.8 | $29.1 | |
GAAP diluted EPS | $0.11 | $0.09 | $0.47 | $0.36 | |
Ongoing net earnings | $9.1 | $6.9 | $37.8 | $29.1 | |
Ongoing diluted EPS | $0.11 | $0.09 | $0.47 | $0.36 |
• | TNMP’s fourth quarter ongoing earnings benefitted from rate relief, a 2013 contribution made to the PNM Resources Foundation that did not recur in 2014, and decreased O&M expenses. These gains were partially offset by mild weather. |
Q4 2014 | Q4 2013 | YE 2014 | YE 2013 | |
GAAP net earnings (loss) | ($3.9) | ($1.8) | ($8.4) | ($16.2) |
GAAP diluted EPS | ($0.05) | ($0.02) | ($0.10) | ($0.20) |
Ongoing net earnings (loss) | ($2.1) | ($1.7) | ($6.2) | ($9.1) |
Ongoing diluted EPS | ($0.03) | ($0.02) | ($0.08) | ($0.11) |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||
(in thousands) | ||||||||||||||||
Quarter Ended December 31, 2014 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 13,822 | $ | 9,116 | $ | (3,947 | ) | $ | 18,991 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Mark-to-market impact of economic hedges1 | (3,899 | ) | — | — | (3,899 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities2 | 12 | — | — | 12 | ||||||||||||
New Mexico corporate income tax rate change3 | (312 | ) | — | — | (312 | ) | ||||||||||
Regulatory disallowance4 | 643 | — | — | 643 | ||||||||||||
State tax credit and NOL impairment3 | 2,145 | — | 1,877 | 4,022 | ||||||||||||
Total Adjustments | (1,411 | ) | — | 1,877 | 466 | |||||||||||
Ongoing Earnings (Loss) | $ | 12,411 | $ | 9,116 | $ | (2,070 | ) | $ | 19,457 | |||||||
Year Ended December 31, 2014 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 86,798 | $ | 37,807 | $ | (8,351 | ) | $ | 116,254 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Mark-to-market impact of economic hedges5 | (3,940 | ) | — | — | (3,940 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities2 | 529 | — | — | 529 | ||||||||||||
New Mexico corporate income tax rate change3 | (312 | ) | — | 241 | (71 | ) | ||||||||||
Process improvement initiatives6 | 1,115 | 34 | — | 1,149 | ||||||||||||
San Juan Coal Company audit arbitration7 | 1,015 | — | — | 1,015 | ||||||||||||
Regulatory disallowance4 | 643 | — | — | 643 | ||||||||||||
State tax credit and NOL impairment3 | 2,145 | — | 1,877 | 4,022 | ||||||||||||
Total Adjustments | 1,195 | 34 | 2,118 | 3,347 | ||||||||||||
Ongoing Earnings (Loss) | $ | 87,993 | $ | 37,841 | $ | (6,233 | ) | $ | 119,601 | |||||||
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-tax8 impacts reflected as $6,134 thousand increase in "Electric Operating Revenues" and $302 thousand reduction in "Cost of energy" | ||||||||||||||||
2Pre-tax8 impact reflected in "Gains on available-for-sale securities" | ||||||||||||||||
3Impact reflected in "Income Taxes" | ||||||||||||||||
4Pre-tax8 impact reflected in "Regulatory disallowances" | ||||||||||||||||
5Pre-tax8 impacts reflected as $5,996 thousand increase in "Electric Operating Revenues" and $507 thousand reduction in "Cost of energy" | ||||||||||||||||
6Pre-tax8 Impact reflected in "Administrative and general" | ||||||||||||||||
7Pre-tax8 Impact reflected in "Cost of energy" | ||||||||||||||||
8Tax impacts reflected in "Income Taxes" |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||
(in thousands) | ||||||||||||||||
Quarter Ended December 31, 2013 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 2,507 | $ | 6,920 | $ | (1,780 | ) | $ | 7,647 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Mark-to-market impact of economic hedges1 | 2,411 | — | — | 2,411 | ||||||||||||
Net change in unrealized impairments of available-for-sale securities2 | 226 | — | — | 226 | ||||||||||||
Loss on reacquired debt3 | — | — | 57 | 57 | ||||||||||||
Regulatory disallowance4 | 6,343 | — | — | 6,343 | ||||||||||||
Total Adjustments | 8,980 | — | 57 | 9,037 | ||||||||||||
Ongoing Earnings (Loss) | $ | 11,487 | $ | 6,920 | $ | (1,723 | ) | $ | 16,684 | |||||||
Year Ended December 31, 2013 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 87,627 | $ | 29,090 | $ | (16,210 | ) | $ | 100,507 | |||||||
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 | (1,127 | ) | — | — | (1,127 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities2 | (380 | ) | — | — | (380 | ) | ||||||||||
Loss on reacquired debt3 | — | — | 1,964 | 1,964 | ||||||||||||
State tax credit impairment5 | — | — | 3,880 | 3,880 | ||||||||||||
Regulatory disallowance4 | 7,391 | — | — | 7,391 | ||||||||||||
Total Adjustments | 5,884 | — | 7,078 | 12,962 | ||||||||||||
Ongoing Earnings (Loss) | $ | 93,511 | $ | 29,090 | $ | (9,132 | ) | $ | 113,469 | |||||||
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 $4,728 thousand reduction in "Electric Operating Revenues" and $736 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 $293 thousand increase in "Electric Operating Revenues" and $1,573 thousand reduction in "Cost of energy" | ||||||||||||||||
7Tax impacts reflected in "Income Taxes" |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||
(per diluted share) | ||||||||||||||||
Quarter Ended December 31, 2014 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.17 | $ | 0.11 | $ | (0.05 | ) | $ | 0.24 | |||||||
Adjusting items | ||||||||||||||||
Mark-to-market impact of economic hedges | (0.05 | ) | — | — | (0.05 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities | — | — | — | — | ||||||||||||
NM Corporate income tax rate change | — | — | — | — | ||||||||||||
Regulatory disallowance | 0.01 | — | — | 0.01 | ||||||||||||
State tax credit and NOL impairment | 0.03 | — | 0.02 | 0.05 | ||||||||||||
Total Adjustments | (0.01 | ) | — | 0.02 | 0.01 | |||||||||||
Ongoing Earnings (Loss) | $ | 0.16 | $ | 0.11 | $ | (0.03 | ) | $ | 0.24 | |||||||
Average Diluted Shares Outstanding: 80,280,319 | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 1.08 | $ | 0.47 | $ | (0.10 | ) | $ | 1.45 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
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 | ||||||||||||
NM Corporate income tax rate change | — | — | — | — | ||||||||||||
Process Improvement Initiatives | 0.01 | — | — | 0.01 | ||||||||||||
San Juan Coal Company audit arbitration | 0.01 | — | — | 0.01 | ||||||||||||
Regulatory disallowance | 0.01 | — | — | 0.01 | ||||||||||||
State tax credit and NOL impairment | 0.03 | — | 0.02 | 0.05 | ||||||||||||
Total Adjustments | 0.02 | — | 0.02 | 0.04 | ||||||||||||
Ongoing Earnings (Loss) | $ | 1.10 | $ | 0.47 | $ | (0.08 | ) | $ | 1.49 | |||||||
Average Diluted Shares Outstanding: 80,279,445 |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||
(per diluted share) | ||||||||||||||||
Quarter Ended December 31, 2013 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.03 | $ | 0.09 | $ | (0.02 | ) | $ | 0.10 | |||||||
Adjusting items | ||||||||||||||||
Mark-to-market impact of economic hedges | 0.03 | — | — | 0.03 | ||||||||||||
Net change in unrealized impairments of available-for-sale securities | — | — | — | — | ||||||||||||
Loss on reacquired debt | — | — | — | — | ||||||||||||
Regulatory disallowance | 0.08 | — | — | 0.08 | ||||||||||||
Total Adjustments | 0.11 | — | — | 0.11 | ||||||||||||
Ongoing Earnings (Loss) | $ | 0.14 | $ | 0.09 | $ | (0.02 | ) | $ | 0.21 | |||||||
Average Diluted Shares Outstanding: 80,355,172 | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 1.09 | $ | 0.36 | $ | (0.20 | ) | $ | 1.25 | |||||||
Adjusting items | ||||||||||||||||
New Mexico corporate income tax rate change | — | — | 0.02 | 0.02 | ||||||||||||
Mark-to-market impact of economic hedges | (0.01 | ) | — | — | (0.01 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities | — | — | — | — | ||||||||||||
Loss on reacquired debt | — | — | 0.02 | 0.02 | ||||||||||||
State tax credit impairment | — | — | 0.05 | 0.05 | ||||||||||||
Regulatory disallowance | 0.09 | — | — | 0.09 | ||||||||||||
Total Adjustments | 0.08 | — | 0.09 | 0.16 | ||||||||||||
Ongoing Earnings (Loss) | $ | 1.16 | $ | 0.36 | $ | (0.11 | ) | $ | 1.41 | |||||||
Average Diluted Shares Outstanding: 80,430,929 |
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands, except per share amounts) | |||||||||||
Electric Operating Revenues | $ | 1,435,853 | $ | 1,387,923 | $ | 1,342,403 | |||||
Operating Expenses: | |||||||||||
Cost of energy | 471,556 | 432,316 | 399,850 | ||||||||
Administrative and general | 171,111 | 179,210 | 187,740 | ||||||||
Energy production costs | 185,638 | 175,819 | 185,417 | ||||||||
Regulatory disallowances | 1,062 | 12,235 | — | ||||||||
Depreciation and amortization | 172,634 | 166,881 | 164,173 | ||||||||
Transmission and distribution costs | 66,571 | 70,124 | 71,125 | ||||||||
Taxes other than income taxes | 67,584 | 64,496 | 60,377 | ||||||||
Total operating expenses | 1,136,156 | 1,101,081 | 1,068,682 | ||||||||
Operating income | 299,697 | 286,842 | 273,721 | ||||||||
Other Income and Deductions: | |||||||||||
Interest income | 8,483 | 10,043 | 13,072 | ||||||||
Gains on available-for-sale securities | 10,527 | 10,612 | 12,965 | ||||||||
Other income | 12,048 | 10,572 | 12,746 | ||||||||
Gain on sale of First Choice | — | — | 1,012 | ||||||||
Other (deductions) | (10,481 | ) | (21,552 | ) | (17,636 | ) | |||||
Net other income and deductions | 20,577 | 9,675 | 22,159 | ||||||||
Interest Charges | 119,627 | 121,448 | 120,845 | ||||||||
Earnings before Income Taxes | 200,647 | 175,069 | 175,035 | ||||||||
Income Taxes | 69,738 | 59,513 | 54,910 | ||||||||
Net Earnings | 130,909 | 115,556 | 120,125 | ||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (14,127 | ) | (14,521 | ) | (14,050 | ) | |||||
Preferred Stock Dividend Requirements of Subsidiary | (528 | ) | (528 | ) | (528 | ) | |||||
Net Earnings Attributable to PNMR | $ | 116,254 | $ | 100,507 | $ | 105,547 | |||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||
Basic | $ | 1.46 | $ | 1.26 | $ | 1.32 | |||||
Diluted | $ | 1.45 | $ | 1.25 | $ | 1.31 |