8-K 1 f8k_102604press1.htm FORM 8-K Form 8-K

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 events reported)

   October 26, 2004

 (October 22, 2004)

 


 

Commission

 

Name of Registrants, State of Incorporation,

 

I.R.S. Employer

File Number

Address and Telephone Number

Identification No.

333-32170

 

PNM Resources, Inc.

 

85-0468296

 

(A New Mexico Corporation)

 

 

 

Alvarado Square

 

 

 

Albuquerque, New Mexico  87158

 

 

 

(505) 241-2700

 

 

 

 

   

1-6986

 

Public Service Company of New Mexico

 

85-0019030

 

(A New Mexico Corporation)

   

 

Alvarado Square

   

 

Albuquerque, New Mexico  87158

   

 

(505) 241-2700

   

______________________________


 

(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[   ]   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)



Item 2.02                     Results of Operations and Financial Condition

On October 22, 2004, PNM Resources, Inc. (the "Company") filed a Form 8-K containing a press release announcing its unaudited results of operations for the three and nine months ended September 30, 2004.  As supplemental information, PNM Resources, Inc. and Subsidiaries Consolidated Statements of Earnings for the three and nine months ended September 30, 2004 and 2003 and other financial information is furnished herewith as Exhibit 99.1 and incorporated by reference herein.

The Company's press release and other communications from time to time may include certain non-GAAP financial measures.  A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company's financial statements.

Non-GAAP financial measures utilized by the Company include presentations of revenues, operating expenses, operating income, other income and deductions, net income, earnings per share and other GAAP measures of operating performance that exclude or include the effect of litigation settlements, accounting or regulatory changes, the restructuring of selected operations, certain merger activities and other similar events.  The Company's management believes these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of fundamental changes in the earnings capacity of the Company's operations.  Management also believes that the presentation of the non-GAAP financial measure is consistent with its past practice, as well as industry practice in general, and will enable investors and analysts to compare current non-GAAP measures with non-GAAP measures presented in prior periods.  The non-GAAP financial measures used by the Company should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Limitation on Incorporation by Reference

In accordance with general instruction B.2 of Form 8-K, the information in this report, including exhibits, is furnished pursuant to Item 2.02 and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section and not deemed incorporated by reference in any filing under the Securities Act of 1933.

EXHIBIT INDEX

Exhibit Number Description

99.1     PNM Resources, Inc. and Subsidiaries Consolidated Statement of Earnings for the three and nine months ended September 30, 2004 and 2003 and other financial information.

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EXHIBIT 99.1

PNM RESOURCES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

Three Months Ended

NineMonths Ended

September 30,

September 30,

2004

2003

2004

2003

(In thousands, except per share amounts)

Operating Revenues:

 Electric

$ 314,022

$  343,281

$  863,783

$  842,758

 Gas

73,530

47,566

330,290

251,272

 Other

178

25

557

137

    Total operating revenues

387,730

390,872

1,194,630

1,094,167

Operating Expenses:

 Cost of energy sold

227,724

220,127

703,862

596,789

  Administrative and general

37,537

38,599

120,486

113,241

 Energy production costs

33,735

34,217

107,977

103,826

 Depreciation and amortization

21,802

29,260

74,370

86,484

 Transmission and distribution costs

14,755

15,150

44,397

46,503

 Taxes, other than income taxes

8,178

7,439

25,924

21,945

 Income taxes

11,784

10,199

29,601

26,158

    Total operating expenses

355,515

354,991

1,106,617

994,946

    Operating income

32,215

35,881

88,013

99,221

Other Income and Deductions:

 Other income

10,783

15,455

32,961

39,406

 Other deductions

(236)

(18,761)

(4,222)

(40,693)

 Income tax (expense) benefit

(2,918)

1,193

(9,104)

468

    Net other income (deductions)

7,629

(2,113)

19,635

(819)

Interest Charges

12,280

17,053

38,164

53,050

Preferred Stock Dividend Requirements

   of Subsidiary

147

147

440

440

Net Earnings Before Cumulative Effect of

   Changes in Accounting Principles

27,417

16,568

69,044

44,912

Cumulative Effect of Changes in Accounting

   Principles, Net of Tax of $23,999

-

-

-

36,621

Net Earnings

$    27,417

$    16,568

$    69,044

$    81,533

Net Earnings per Common Share:

 Basic

$        0.45

$        0.27

$        1.14

$        1.37

 Diluted

$        0.45

$        0.27

$        1.13

$        1.36

Dividends Paid per Common Share

$        0.16

$        0.15

$        0.47

$        0.45


3



PNM RESOURCES, INC. AND SUBSIDIARIES
       COMPARATIVE OPERATING STATISTICS

The following table shows electric revenues by customer class and average customers:

Electric Retail Revenues

Three Months Ended

September 30,

2004

2003

Variance

(In thousands except customers)

Residential

$  55,615

$  58,545

$ (2,930)

Commercial

70,594

73,674

(3,080)

Industrial

15,964

16,689

(725)

Other

5,749

5,838

(89)

$147,922

$154,746

$ (6,824)

Average customers

408,225

397,489

10,736


Nine Months Ended

September 30,

2004

2003

Variance

(In thousands except customers)

Residential

$156,568

$156,135

$     433

Commercial

190,459

192,008

(1,549)

Industrial

46,224

48,952

(2,728)

Other

15,402

14,947

455

$408,653

$412,042

$ (3,389)

Average customers

405,598

394,878

10,720

(Intentionally left blank)

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PNM RESOURCES, INC. AND SUBSIDIARIES
       COMPARATIVE OPERATING STATISTICS

The following table shows electric sales by customer class:

Electric Sales

Three Months Ended

September 30,

2004

2003

Variance

(Megawatt hours)

Residential

675,228

691,842

(16,614)

Commercial

980,115

992,245

(12,130)

Industrial

330,392

332,747

(2,355)

Other

77,969

76,305

1,664

2,063,704

2,093,139

(29,435)


Nine Months Ended

September 30,

2004

2003

Variance

(Megawatt hours)

Residential

1,898,537

1,827,897

70,640

Commercial

2,619,447

2,546,486

72,961

Industrial

959,700

975,397

(15,697)

Other

193,696

189,612

4,084

5,671,380

5,539,392

131,988

(Intentionally left blank)


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PNM RESOURCES, INC. AND SUBSIDIARIES
       COMPARATIVE OPERATING STATISTICS

The following table shows gas revenues by customer and average customers:

Gas Revenues

Three Months Ended

September 30,

2004

2003

Variance

(In thousands except customers)

Residential

$ 29,170

$ 25,573

$    3,597

Commercial

10,595

9,189

1,406

Industrial

287

391

(104)

Transportation*

3,650

5,584

(1,934)

Other

29,828

6,829

22,999

$ 73,530

$ 47,566

$  25,964

Average customers

459,461

450,378

9,083


Nine Months Ended

September 30,

2004

2003

Variance

(In thousands except customers)

Residential

$183,961

$155,855

$  28,106

Commercial

59,547

50,587

8,960

Industrial

1,577

1,856

(279)

Transportation*

11,593

15,339

(3,746)

Other

73,612

27,635

45,977

$ 330,290

$251,272

$  79,018

Average customers

459,996

451,164

8,832

*Customer-owned gas.

(Intentionally left blank)


6



PNM RESOURCES, INC. AND SUBSIDIARIES
       COMPARATIVE OPERATING STATISTICS

The following table shows gas throughput by customer class:

Gas Throughput

Three Months Ended

September 30,

2004

2003

Variance

(Thousands of decatherms)

Residential

2,257

2,212

45

Commercial

1,319

1,306

13

Industrial

41

62

(21)

Transportation*

14,907

17,613

(2,706)

Other

4,566

955

3,611

23,090

22,148

942


Nine Months Ended

September 30,

2004

2003

Variance

(Thousands of decatherms)

Residential

19,605

18,069

1,536

Commercial

7,592

7,281

311

Industrial

233

318

(85)

Transportation*

35,641

42,703

(7,062)

Other

11,701

3,924

7,777

74,772

72,295

2,477

*Customer-owned gas.

Electric Transmission Revenues

Three Months Ended

September 30,

2004

2003

Variance

(In thousands)

External customers

$   4,490

$   8,920

$  (4,430)


Nine Months Ended

September 30,

2004

2003

Variance

(In thousands)

External customers

$ 13,324

$ 15,794

$  (2,470)


7



PNM RESOURCES, INC. AND SUBSIDIARIES
       COMPARATIVE OPERATING STATISTICS

The following table shows revenues by customer class:

Wholesale Revenues

Three Months Ended

September 30,

2004

2003

Variance

(In thousands)

Long-term contracts*

$  41,600

$ 37,384

$   4,216

Forward sales*

70,725

64,792

5,933

Short-term sales

72,790

78,074

(5,284)

$ 185,115

$180,250

$    4,865


Nine Months Ended

September 30,

2004

2003

Variance

(In thousands)

Long-term contracts*

$118,484

$100,909

$ 17,575

Forward sales*

145,239

123,689

21,550

Short-term sales

211,691

191,859

19,832

$475,414

$416,457

$ 58,957

*Includes mark-to-market gains/(losses).

Note:  For comparative purposes, wholesale revenues for the three months ended and nine months ended September 30, 2004 have not been reclassified to a net margin basis in accordance with GAAP.  The impact would be to reduce 2004 forward sales revenue by  $23.5 million and $33.6 million, respectively.

(Intentionally left blank)


8



PNM RESOURCES, INC. AND SUBSIDIARIES
       COMPARATIVE OPERATING STATISTICS

The following table shows sales by customer class:

Wholesale Sales

Three Months Ended

September 30,

2004

2003

Variance

(Megawatt hours)

Long-term contracts

783,582

667,336

116,246

Forward sales

1,240,584

1,063,000

177,584

Short-term sales

1,524,171

1,578,124

(53,953)

3,548,337

3,308,460

239,877


Nine Months Ended

September 30,

2004

2003

Variance

(Megawatt hours)

Long-term contracts

2,216,392

1,783,681

432,711

Forward sales

2,794,544

2,580,380

214,164

Short-term sales

4,767,375

4,386,868

380,507

9,778,311

8,750,929

1,027,382

(Intentionally left blank)


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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PNM RESOURCES, INC. AND

PUBLIC SERVICE COMPANY OF NEW MEXICO

(Registrants)


 

Date:  October 26, 2004

/s/ Thomas G. Sategna

Thomas G. Sategna

Vice President and Corporate Controller

(Officer duly authorized to sign this report)

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