EX-12.1 4 pnm6302015ex121.htm PNMR EXHIBIT 12.1 PNM 6.30.2015 EX.12.1


Exhibit 12.1
PNM RESOURCES, INC. AND SUBSIDIARIES
Ratio of Earnings to Fixed Charges
(In thousands, except ratio)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended
 
Year Ended December 31,
 
 
 
June 30, 2015
 
2014
 
2013
 
2012
 
2011
 
2010
 
Fixed charges, as defined by the Securities and Exchange Commission:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized
 
$
59,279

 
$
117,337

 
$
118,880

 
$
125,379

 
$
122,998

 
$
123,633

 
Amortization of debt premium, discount, and expenses
 
1,716

 
4,194

 
3,716

 
4,023

 
3,695

 
4,627

 
Estimated interest factor of lease rental charges
 
1,873

 
4,686

 
5,847

 
5,585

 
6,665

 
6,888

 
Preferred dividend requirements of subsidiary
 
392

 
809

 
800

 
769

 
864

 
1,075

 
     Total Fixed Charges
 
$
63,260

 
$
127,026

 
$
129,243

 
$
135,756

 
$
134,222

 
$
136,223

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings, as defined by the Securities and Exchange Commission:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) from continuing operations before income taxes and non-controlling interest
 
$
79,378

 
$
200,647

 
$
175,069

 
$
175,035

 
$
321,469

 
$
(63,379
)
 
(Earnings) loss of equity investee
 
—

 
—

 
—

 
—

 
—

 
15,223

 
Earnings (loss) from continuing operations before income taxes, non-controlling interest, and investee earnings
 
79,378

 
200,647

 
175,069

 
175,035

 
321,469

 
(48,156
)
 
Fixed charges as above
 
63,260

 
127,026

 
129,243

 
135,756

 
134,222

 
136,223

 
Interest capitalized
 
(3,362
)
 
(6,256
)
 
(5,209
)
 
(5,432
)
 
(2,697
)
 
(3,401
)
 
Non-controlling interest in earnings of Valencia
 
(7,231
)
 
(14,127
)
 
(14,521
)
 
(14,050
)
 
(14,047
)
 
(13,563
)
 
Preferred dividend requirements of subsidiary
 
(392
)
 
(809
)
 
(800
)
 
(769
)
 
(864
)
 
(1,075
)
 
Earnings Available for Fixed Charges
 
$
131,653

 
$
306,481

 
$
283,782

 
$
290,540

 
$
438,083

 
$
70,028

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
2.08

1 
2.41

2 
2.20

2 
2.14

 
3.26

3 
0.51

4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1  Earnings (loss) from continuing operations before income taxes and non-controlling interest for the six months ended June 30, 2015 includes a pre-tax loss of $1.7 million due to the write-off of regulatory disallowances at PNM. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 2.11.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2  Earnings (loss) from continuing operations before income taxes and non-controlling interest for the years ended December 31, 2014 and December 31, 2013 includes pre-tax losses of $1.1 and $12.2 million due to the write-off of regulatory disallowances at PNM. If those losses were excluded, the Ratio of Earnings to Fixed Charges would have been 2.42 for 2014 and 2.29 for 2013.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3  Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2011 includes pre-tax losses of $21.4 million due to the write-off of regulatory disallowances at PNM and TNMP. If those losses were excluded, the Ratio of Earnings to Fixed Charges would have been 3.42. In addition, 2011 includes a pre-tax gain on the sale of First Choice of $174.9 million. If that gain were also excluded, the Ratio of Earnings to Fixed Charges would have been 1.96.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $66.2 million for the year ended December 31, 2010. Earnings (loss) from continuing operations before income taxes and non-controlling interest includes a pre-tax loss of $188.2 million due to the impairment of PNMR's investment in an equity investee. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 1.90.