ALBUQUERQUE, N.M., Oct. 30, 2020 /PRNewswire/ --
PNM Resources
(In millions, except EPS)
|
|
Q3
2020
|
Q3
2019
|
YTD
2020
|
YTD
2019
|
GAAP net earnings
attributable to PNM Resources
|
$121.8
|
$102.8
|
$164.0
|
$45.6
|
GAAP diluted
EPS
|
$1.52
|
$1.28
|
$2.05
|
$0.57
|
Ongoing net
earnings
|
$111.9
|
$104.4
|
$170.3
|
$143.6
|
Ongoing diluted
EPS
|
$1.40
|
$1.31
|
$2.13
|
$1.80
|
PNM Resources (NYSE: PNM) today released the company's 2020
third quarter results. In addition, management affirmed its
recently increased 2020 consolidated ongoing earnings guidance of
$2.23 to $2.31 per diluted share, targeting the midpoint
of this range.
"Record temperatures in August contributed to higher third
quarter earnings and increased expectations for the year," said
Pat Vincent-Collawn, PNM Resources'
chairman, president and CEO. "As our customers and communities face
the prolonged impacts of this pandemic, our teams continue to look
for new ways to provide support through customer financial
assistance, non-profit grants and local donations. We remain
committed to supporting and serving our customers and rebuilding
our communities."
During today's earnings conference call, PNM Resources will
highlight recent efforts and achievements aligned with the
company's commitment to environmental, social and governance (ESG)
principles, including increasing support to customers and
communities during the ongoing pandemic and partnerships to further
clean energy goals. The company recently announced a merger with
AVANGRID (NYSE: AGR) that is strategically aligned in the
transition to clean energy and commitment to ESG principles and
will provide benefits to customers, communities, employees and
shareholders.
SEGMENT REPORTING OF 2020 THIRD QUARTER
EARNINGS
PNM – a vertically integrated electric
utility in New Mexico with
distribution, transmission and generation assets.
PNM (In
millions, except EPS)
|
|
Q3
2020
|
Q3
2019
|
YTD
2020
|
YTD
2019
|
GAAP net earnings
attributable to PNM Resources
|
$99.3
|
$80.7
|
$128.8
|
$12.8
|
GAAP diluted
EPS
|
$1.24
|
$1.01
|
$1.61
|
$0.16
|
Ongoing net
earnings
|
$89.5
|
$82.3
|
$133.9
|
$110.7
|
Ongoing diluted
EPS
|
$1.12
|
$1.03
|
$1.68
|
$1.39
|
- PNM's GAAP and Ongoing earnings increased during the third
quarter of 2020, reflecting increases in retail sales from the
combined impacts of COVID-19 and record-high August temperatures.
Increased residential usage was partially offset by decreased
commercial usage due to business restrictions.
- GAAP earnings were also higher in 2020 as a result of net
changes in unrealized gains and losses on investment securities for
its decommissioning and reclamation trusts.
- Earnings were also higher in the third quarter of 2020 due to
higher transmission margins and the refinancing of debt at lower
interest rates. These increases were partially offset by expected
increases in operational spending and the creation of COVID
Customer Relief Programs to provide financial assistance towards
past-due electric bills. Additional depreciation expense on new
capital investments was mitigated by property tax reductions.
TNMP – an electric transmission and distribution
utility in Texas.
TNMP (In
millions, except EPS)
|
|
Q3
2020
|
Q3
2019
|
YTD
2020
|
YTD
2019
|
GAAP net earnings
attributable to PNM Resources
|
$23.9
|
$25.1
|
$47.2
|
$44.5
|
GAAP diluted
EPS
|
$0.30
|
$0.31
|
$0.59
|
$0.56
|
Ongoing net
earnings
|
$23.9
|
$25.1
|
$47.2
|
$44.6
|
Ongoing diluted
EPS
|
$0.30
|
$0.31
|
$0.59
|
$0.56
|
- TNMP's GAAP and ongoing earnings increased in the third quarter
of 2020 due to the implementation of Transmission Cost of Service
(TCOS) rate increases implemented in September 2019 and March
2020 and a Distribution Cost of Service (DCOS) rate increase
implemented in September 2020. These
increases were offset by expected increases in operational spending
and higher depreciation and property tax expenses resulting from
additional capital investments.
- The combined impacts of COVID-19 and temperatures that were
lower than the third quarter of 2019 were largely offsetting.
COVID-19 restrictions continued to increase volumetric (primarily
residential) load and reduce demand-based (commercial and
industrial) load.
Corporate and Other – a segment that reflects the
PNM Resources holding company and other
subsidiaries.
Corporate and
Other (In millions, except EPS)
|
|
Q3
2020
|
Q3
2019
|
YTD
2020
|
YTD
2019
|
GAAP net earnings
(loss) attributable to PNM Resources
|
($1.5)
|
($3.0)
|
($12.0)
|
($11.7)
|
GAAP diluted
EPS
|
($0.02)
|
($0.04)
|
($0.15)
|
($0.15)
|
Ongoing net
earnings (loss)
|
($1.5)
|
($3.0)
|
($10.8)
|
($11.7)
|
Ongoing diluted
EPS
|
($0.02)
|
($0.03)
|
($0.14)
|
($0.15)
|
- Corporate and Other's ongoing losses were reduced in the third
quarter of 2020 due to higher tax benefits resulting from a higher
effective tax rate.
Financial materials are available
at http://www.pnmresources.com/investors/results.cfm.
THIRD QUARTER CONFERENCE CALL: 11
A.M. EASTERN FRIDAY, OCTOBER
30
PNM Resources will discuss these items during a live conference
call and webcast on Friday, October
30ht at 11 a.m.
Eastern. Speaking on the call will be Pat Vincent-Collawn, PNM Resources chairman,
president and CEO, and Don Tarry,
PNM Resources senior vice president and CFO.
A live webcast of the call will be archived at
http://www.pnmresources.com/investors/events.cfm.
Listeners are encouraged to visit the website at least 30
minutes before the event to register, download and install any
necessary audio software.
Investors and analysts can participate in the live conference
call by pre-registering using the following link to receive a
special dial-in number and PIN: http://dpregister.com/10148353.
Telephone participants who are unable to pre-register may
participate in the live conference call by dialing (877) 276-8648
or (412) 317-5474 fifteen minutes prior to the event and
referencing "the PNM Resources third quarter conference call".
Supporting material for PNM Resources' earnings announcements
can be viewed and downloaded at
http://www.pnmresources.com/investors/results.cfm.
Background:
PNM Resources (NYSE: PNM) is an energy
holding company based in Albuquerque,
N.M., with 2019 consolidated operating revenues of
$1.5 billion. Through its regulated
utilities, PNM and TNMP, PNM Resources has approximately 2,811
megawatts of generation capacity and provides electricity to more
than 790,000 homes and businesses in New
Mexico and Texas. For more
information, visit the company's website at
www.PNMResources.com.
CONTACTS:
|
|
Analysts
|
Media
|
|
Lisa
Goodman
|
Ray
Sandoval
|
|
(505)
241-2160
|
(505)
241-2782
|
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
Statements made in this news release for
PNM Resources, Inc. ("PNMR"), Public Service Company of
New Mexico ("PNM"), or Texas-New
Mexico Power Company ("TNMP") (collectively, the "Company") that
relate to future events or expectations, projections, estimates,
intentions, goals, targets, and strategies are made pursuant to the
Private Securities Litigation Reform Act of 1995. Readers are
cautioned that all forward-looking statements are based upon
current expectations and estimates. PNMR, PNM, and TNMP assume no
obligation to update this information. Because actual results may
differ materially from those expressed or implied by these
forward-looking statements, PNMR, PNM, and TNMP caution readers not
to place undue reliance on these statements. PNMR's, PNM's, and
TNMP's business, financial condition, cash flow, and operating
results are influenced by many factors, which are often beyond
their control, that can cause actual results to differ from those
expressed or implied by the forward-looking statements.
Additionally, there are risks and uncertainties in connection with
the proposed acquisition of us by AVANGRID which may adversely
affect our business, future opportunities, employees and common
stock, including without limitation, (i) the expected timing and
likelihood of completion of the pending Merger, including the
timing, receipt and terms and conditions of any required
governmental and regulatory approvals of the pending Merger that
could reduce anticipated benefits or cause the parties to abandon
the transaction, (ii) the failure by AVANGRID to obtain the
necessary financing arrangement set forth in commitment letter
received in connection with the Merger, (iii) the occurrence of any
event, change or other circumstances that could give rise to the
termination of the Merger Agreement, (iv) the possibility that
PNMR's shareholders may not approve the Merger Agreement, (v) the
risk that the parties may not be able to satisfy the conditions to
the proposed Merger in a timely manner or at all, (vi) risks
related to disruption of management time from ongoing business
operations due to the proposed Merger, and (vii) the risk that the
proposed transaction and its announcement could have an adverse
effect on the ability of PNMR to retain and hire key personnel and
maintain relationships with its customers and suppliers, and on its
operating results and businesses generally. For a discussion of
risk factors and other important factors affecting forward-looking
statements, please see the Company's Form 10-K, Form 10-Q filings
and the information included in the Company's Forms 8-K with the
Securities and Exchange Commission, which factors are specifically
incorporated by reference herein.
Non-GAAP Financial Measures
GAAP refers to generally
accepted accounting principles in the U.S. Ongoing earnings is a
non-GAAP financial measure that excludes the impact of net
unrealized mark-to-market gains and losses on economic hedges, the
net change in unrealized gains and losses on investment securities,
pension expense related to previously disposed of gas distribution
business, and certain non-recurring, infrequent, and other items
that are not indicative of fundamental changes in the earnings
capacity of the Company's operations. The Company uses ongoing
earnings and ongoing earnings per diluted share (or ongoing diluted
earnings per share) to evaluate the operations of the Company and
to establish goals, including those used for certain aspects of
incentive compensation, for management and employees. While the
Company believes these financial measures are appropriate and
useful for investors, they are not measures presented in accordance
with GAAP. The Company does not intend for these measures, or any
piece of these measures, to represent any financial measure as
defined by GAAP. Furthermore, the Company's calculations of these
measures as presented may or may not be comparable to similarly
titled measures used by other companies. The Company uses ongoing
earnings guidance to provide investors with management's
expectations of ongoing financial performance over the period
presented. While the Company believes ongoing earnings guidance is
an appropriate measure, it is not a measure presented in accordance
with GAAP. The Company does not intend for ongoing earnings
guidance to represent an expectation of net earnings as defined by
GAAP. Since the future differences between GAAP and ongoing
earnings are frequently outside the control of the Company,
management is generally not able to estimate the impact of the
reconciling items between forecasted GAAP net earnings and ongoing
earnings guidance, nor their probable impact on GAAP net earnings
without unreasonable effort, therefore, management is generally not
able to provide a corresponding GAAP equivalent for ongoing
earnings guidance. Reconciliations between GAAP and ongoing
earnings are contained in schedules 1-5.
PNM Resources,
Inc. and Subsidiaries
Schedule
1
Reconciliation of
GAAP to Ongoing Earnings
(Preliminary and
Unaudited)
|
|
|
|
PNM
|
|
TNMP
|
|
Corporate
and Other
|
|
PNMR
Consolidated
|
|
|
(in
thousands)
|
Three Months Ended
September 30, 2020
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$
|
99,319
|
|
|
$
|
23,921
|
|
|
$
|
(1,472)
|
|
|
$
|
121,768
|
|
Adjusting items before
income tax effects:
|
|
|
|
|
|
|
|
|
Net change in
unrealized gains and losses on investment
securities2a
|
|
(12,776)
|
|
|
—
|
|
|
—
|
|
|
(12,776)
|
|
Regulatory
disallowances2b
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Pension expense
related to previously disposed of gas distribution
business2c
|
|
1,131
|
|
|
—
|
|
|
—
|
|
|
1,131
|
|
Costs to review
strategic growth opportunities2d
|
|
—
|
|
|
—
|
|
|
354
|
|
|
354
|
|
Total adjustments
before income tax effects
|
|
(11,645)
|
|
|
—
|
|
|
354
|
|
|
(11,291)
|
|
Income tax impact of
above adjustments1
|
|
2,958
|
|
|
—
|
|
|
(90)
|
|
|
2,868
|
|
Timing of statutory
and effective tax rates on non-recurring
items3
|
|
(1,146)
|
|
|
—
|
|
|
(284)
|
|
|
(1,430)
|
|
Total income tax
impacts4
|
|
1,812
|
|
|
—
|
|
|
(374)
|
|
|
1,438
|
|
Adjusting items, net
of income taxes
|
|
(9,833)
|
|
|
—
|
|
|
(20)
|
|
|
(9,853)
|
|
Ongoing Earnings
(Loss)
|
|
$
|
89,486
|
|
|
$
|
23,921
|
|
|
$
|
(1,492)
|
|
|
$
|
111,915
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2020
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$
|
128,802
|
|
|
$
|
47,187
|
|
|
$
|
(11,992)
|
|
|
$
|
163,997
|
|
Adjusting items before
income tax effects:
|
|
|
|
|
|
|
|
|
Net change in
unrealized gains and losses on investment
securities2a
|
|
1,502
|
|
|
—
|
|
|
—
|
|
|
1,502
|
|
Regulatory
disallowances2b
|
|
1,911
|
|
|
—
|
|
|
—
|
|
|
1,911
|
|
Pension expense
related to previously disposed of gas distribution
business2c
|
|
3,394
|
|
|
—
|
|
|
—
|
|
|
3,394
|
|
Costs to review
strategic growth opportunities2d
|
|
—
|
|
|
—
|
|
|
1,587
|
|
|
1,587
|
|
Total adjustments
before income tax effects
|
|
6,807
|
|
|
—
|
|
|
1,587
|
|
|
8,394
|
|
Income tax impact of
above adjustments1
|
|
(1,729)
|
|
|
—
|
|
|
(403)
|
|
|
(2,132)
|
|
Timing of statutory
and effective tax rates on non-recurring
items3
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total income tax
impacts4
|
|
(1,729)
|
|
|
—
|
|
|
(403)
|
|
|
(2,132)
|
|
Adjusting items, net
of income taxes
|
|
5,078
|
|
|
—
|
|
|
1,184
|
|
|
6,262
|
|
Ongoing Earnings
(Loss)
|
|
$
|
133,880
|
|
|
$
|
47,187
|
|
|
$
|
(10,808)
|
|
|
$
|
170,259
|
|
|
|
|
|
|
|
|
|
|
1 Tax
effects calculated using a tax rate of 25.4%
|
2 The
pre-tax impacts (in thousands) of adjusting items are reflected on
the GAAP Condensed Consolidated Statements of Earnings as
follows:
|
a
(Increases) decreases in "Gains on investment securities"
reflecting non-cash performance relative to market, not indicative
of funding requirements
|
b Increase
of $1.9 million in "Interest Charges" and decrease of less than
$0.1 million in "Other income" reflecting disallowances of
previously capitalized AFUDC for certain costs included in the
AFUDC computation, resulting from a FERC audit.
|
c Increases
in "Other (deductions)"
|
d Increases
in "Administrative and general"
|
3 Income
tax timing impacts resulting from differences between the statutory
tax rate of 25.4% for PNM and the average expected statutory tax
rate of 23.9% for PNMR, and the GAAP anticipated effective tax
rates of 11.3% for PNM and 8.4% for PNMR, which will reverse by
year end
|
4 Income
tax impacts reflected in "Income Taxes"
|
PNM Resources,
Inc. and Subsidiaries
Schedule
2
Reconciliation of
GAAP to Ongoing Earnings
(Preliminary and
Unaudited)
|
|
|
|
PNM
|
|
TNMP
|
|
Corporate
and Other
|
|
PNMR
Consolidated
|
|
|
(in
thousands)
|
Three Months Ended
September 30, 2019
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$
|
80,729
|
|
|
$
|
25,087
|
|
|
$
|
(3,045)
|
|
|
$
|
102,771
|
|
Adjusting items before
income tax effects:
|
|
|
|
|
|
|
|
|
Mark-to-market impact
of economic hedges2a
|
|
(28)
|
|
|
—
|
|
|
—
|
|
|
(28)
|
|
Net change in
unrealized gains and losses on investment
securities2b
|
|
(1,202)
|
|
|
—
|
|
|
—
|
|
|
(1,202)
|
|
Pension expense
related to previously disposed of gas distribution
business2d
|
|
1,044
|
|
|
—
|
|
|
—
|
|
|
1,044
|
|
Process improvement
initiatives2e
|
|
149
|
|
|
51
|
|
|
—
|
|
|
200
|
|
Four Corners coal mine
reclamation2f
|
|
1,078
|
|
|
—
|
|
|
—
|
|
|
1,078
|
|
Total adjustments
before income tax effects
|
|
1,041
|
|
|
51
|
|
|
—
|
|
|
1,092
|
|
Income tax impact of
above adjustments1
|
|
(264)
|
|
|
(11)
|
|
|
—
|
|
|
(275)
|
|
Timing of statutory
and effective tax rates on non-recurring
items3
|
|
744
|
|
|
(5)
|
|
|
91
|
|
|
830
|
|
Total income tax
impacts4
|
|
480
|
|
|
(16)
|
|
|
91
|
|
|
555
|
|
Adjusting items, net
of income taxes
|
|
1,521
|
|
|
35
|
|
|
91
|
|
|
1,647
|
|
Ongoing Earnings
(Loss)
|
|
$
|
82,250
|
|
|
$
|
25,122
|
|
|
$
|
(2,954)
|
|
|
$
|
104,418
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$
|
12,797
|
|
|
$
|
44,452
|
|
|
$
|
(11,692)
|
|
|
$
|
45,557
|
|
Adjusting items before
income tax effects:
|
|
|
|
|
|
|
|
|
Mark-to-market impact
of economic hedges2a
|
|
(84)
|
|
|
—
|
|
|
—
|
|
|
(84)
|
|
Net change in
unrealized gains and losses on investment
securities2b
|
|
(13,692)
|
|
|
—
|
|
|
—
|
|
|
(13,692)
|
|
Regulatory
disallowances and restructuring costs2c
|
|
150,599
|
|
|
—
|
|
|
—
|
|
|
150,599
|
|
Pension expense
related to previously disposed of gas distribution
business2d
|
|
3,134
|
|
|
—
|
|
|
—
|
|
|
3,134
|
|
Process improvement
initiatives2e
|
|
559
|
|
|
186
|
|
|
—
|
|
|
745
|
|
Four Corners coal mine
reclamation2f
|
|
794
|
|
|
—
|
|
|
—
|
|
|
794
|
|
Total adjustments
before income tax effects
|
|
141,310
|
|
|
186
|
|
|
—
|
|
|
141,496
|
|
Income tax impact of
above adjustments1
|
|
(35,893)
|
|
|
(39)
|
|
|
—
|
|
|
(35,932)
|
|
Deferred income tax
impact of regulatory disallowances
|
|
(7,485)
|
|
|
—
|
|
|
—
|
|
|
(7,485)
|
|
Timing of statutory
and effective tax rates on non-recurring
items3
|
|
(52)
|
|
|
12
|
|
|
6
|
|
|
(34)
|
|
Total income tax
impacts4
|
|
(43,430)
|
|
|
(27)
|
|
|
6
|
|
|
(43,451)
|
|
Adjusting items, net
of income taxes
|
|
97,880
|
|
|
159
|
|
|
6
|
|
|
98,045
|
|
Ongoing Earnings
(Loss)
|
|
$
|
110,677
|
|
|
$
|
44,611
|
|
|
$
|
(11,686)
|
|
|
$
|
143,602
|
|
|
|
|
|
|
|
|
|
|
1 2019
income tax effects calculated using a tax rate of 25.40% for PNM
and 21% for TNMP
|
2 The
pre-tax impacts (in thousands) of adjusting items are reflected on
the GAAP Condensed Consolidated Statement of Earnings as
follows:
|
a
(Reductions) in "Electric Operating Revenues" and "Cost of energy"
of $257 and $285 in the three months ended September 30,
2019 and $737 and $821 in the nine
months ended September 30, 2019
|
b
(Increases) in "Gains on investment securities"
|
c Increases
in "Regulatory disallowances and restructuring costs"
|
d Increases
in "Other (deductions)"
|
e
Increases in "Administrative and general"
|
f
Increases in "Cost of energy"
|
3 Income
tax timing impacts resulting from differences between the statutory
tax rate of 25.4% for PNM and the average expected statutory tax
rate of 24.0% for PNMR, and the GAAP anticipated effective tax
rates of 10.8% for PNM and 8.4% for PNMR, which will reverse by
year end
|
4 Income
tax impacts reflected in "Income Taxes"
|
PNM Resources,
Inc. and Subsidiaries
Schedule
3
Reconciliation of
GAAP to Ongoing Earnings Per Diluted Share
(Preliminary and
Unaudited)
|
|
|
|
PNM
|
|
TNMP
|
|
Corporate
and Other
|
|
PNMR
Consolidated
|
|
|
(per diluted
share)
|
Three Months Ended
September 30, 2020
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$
|
1.24
|
|
|
$
|
0.30
|
|
|
$
|
(0.02)
|
|
|
$
|
1.52
|
|
Adjusting items, net of
income tax effects:
|
|
|
|
|
|
|
|
|
Net change in
unrealized gains and losses on investment securities
|
|
(0.12)
|
|
|
—
|
|
|
—
|
|
|
(0.12)
|
|
Regulatory
disallowances
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Pension expense
related to previously disposed of gas distribution
business
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Cost to review
strategic growth opportunities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Timing of statutory
and effective tax rates on non-recurring items
|
|
(0.01)
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Total
Adjustments
|
|
(0.12)
|
|
|
—
|
|
|
—
|
|
|
(0.12)
|
|
Ongoing Earnings
(Loss)
|
|
$
|
1.12
|
|
|
$
|
0.30
|
|
|
$
|
(0.02)
|
|
|
$
|
1.40
|
|
Average Diluted Shares
Outstanding: 79,906,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2020
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$
|
1.61
|
|
|
$
|
0.59
|
|
|
$
|
(0.15)
|
|
|
$
|
2.05
|
|
Adjusting items, net of
income tax effects:
|
|
|
|
|
|
|
|
|
Net change in
unrealized gains and losses on investment securities
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
Regulatory
disallowances
|
|
0.02
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
Pension expense
related to previously disposed of gas distribution
business
|
|
0.03
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
Cost to review
strategic growth opportunities
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
Timing of statutory
and effective tax rates on non-recurring items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
Adjustments
|
|
0.07
|
|
|
—
|
|
|
0.01
|
|
|
0.08
|
|
Ongoing Earnings
(Loss)
|
|
$
|
1.68
|
|
|
$
|
0.59
|
|
|
$
|
(0.14)
|
|
|
$
|
2.13
|
|
Average Diluted Shares
Outstanding: 79,954,429
|
|
|
|
|
|
PNM Resources,
Inc. and Subsidiaries
Schedule
4
Reconciliation of
GAAP to Ongoing Earnings Per Diluted Share
(Preliminary and
Unaudited)
|
|
|
|
PNM
|
|
TNMP
|
|
Corporate
and Other
|
|
PNMR
Consolidated
|
|
|
(per diluted
share)
|
Three Months Ended
September 30, 2019
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$
|
1.01
|
|
|
$
|
0.31
|
|
|
$
|
(0.04)
|
|
|
$
|
1.28
|
|
Adjusting items, net of
income tax effects:
|
|
|
|
|
|
|
|
|
Mark-to-market impact
of economic hedges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net change in
unrealized gains and losses on investment securities
|
|
(0.01)
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Pension expense
related to previously disposed of gas distribution
business
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Process improvement
initiatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Four Corners coal mine
reclamation
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Timing of statutory
and effective tax rates on non-recurring items
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
0.02
|
|
Total
Adjustments
|
|
0.02
|
|
|
—
|
|
|
0.01
|
|
|
0.03
|
|
Ongoing Earnings
(Loss)
|
|
$
|
1.03
|
|
|
$
|
0.31
|
|
|
$
|
(0.03)
|
|
|
$
|
1.31
|
|
Average Diluted Shares
Outstanding: 80,000,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2019
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$
|
0.16
|
|
|
$
|
0.56
|
|
|
$
|
(0.15)
|
|
|
$
|
0.57
|
|
Adjusting items, net of
income tax effects:
|
|
|
|
|
|
|
|
|
Mark-to-market impact
of economic hedges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net change in
unrealized gains and losses on investment securities
|
|
(0.13)
|
|
|
—
|
|
|
—
|
|
|
(0.13)
|
|
Regulatory
disallowances and restructuring costs
|
|
1.41
|
|
|
—
|
|
|
—
|
|
|
1.41
|
|
Pension expense
related to previously disposed of gas distribution
business
|
|
0.03
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
Process improvement
initiatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Four Corners coal mine
reclamation
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Deferred income tax
impact of regulatory disallowances
|
|
(0.09)
|
|
|
—
|
|
|
—
|
|
|
(0.09)
|
|
Timing of statutory
and effective tax rates on non-recurring items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
Adjustments
|
|
1.23
|
|
|
—
|
|
|
—
|
|
|
1.23
|
|
Ongoing Earnings
(Loss)
|
|
$
|
1.39
|
|
|
$
|
0.56
|
|
|
$
|
(0.15)
|
|
|
$
|
1.80
|
|
Average Diluted Shares
Outstanding: 79,979,723
|
|
|
|
|
|
PNM Resources,
Inc. and Subsidiaries
Schedule
5
Condensed
Consolidated Statements of Earnings
(Preliminary and
Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(In thousands, except
per share amounts)
|
Electric Operating
Revenues:
|
|
|
|
|
|
|
|
Contracts with
customers
|
$
|
455,120
|
|
|
$
|
418,673
|
|
|
$
|
1,121,177
|
|
|
$
|
1,049,287
|
|
Alternative revenue
programs
|
(12,376)
|
|
|
(6,779)
|
|
|
(7,484)
|
|
|
(300)
|
|
Other electric
operating revenue
|
29,721
|
|
|
21,692
|
|
|
50,043
|
|
|
64,471
|
|
Total electric
operating revenues
|
472,465
|
|
|
433,586
|
|
|
1,163,736
|
|
|
1,113,458
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
Cost of
energy
|
133,991
|
|
|
108,736
|
|
|
326,564
|
|
|
314,145
|
|
Administrative and
general
|
51,611
|
|
|
47,613
|
|
|
148,096
|
|
|
142,782
|
|
Energy production
costs
|
31,148
|
|
|
30,877
|
|
|
98,111
|
|
|
108,853
|
|
Regulatory
disallowances and restructuring costs
|
—
|
|
|
—
|
|
|
—
|
|
|
150,599
|
|
Depreciation and
amortization
|
68,400
|
|
|
68,350
|
|
|
207,395
|
|
|
199,771
|
|
Transmission and
distribution costs
|
18,742
|
|
|
16,461
|
|
|
54,062
|
|
|
52,333
|
|
Taxes other than
income taxes
|
20,768
|
|
|
21,009
|
|
|
62,815
|
|
|
61,327
|
|
Total operating
expenses
|
324,660
|
|
|
293,046
|
|
|
897,043
|
|
|
1,029,810
|
|
Operating
income
|
147,805
|
|
|
140,540
|
|
|
266,693
|
|
|
83,648
|
|
Other Income and
Deductions:
|
|
|
|
|
|
|
|
Interest
income
|
3,180
|
|
|
3,440
|
|
|
9,674
|
|
|
10,489
|
|
Gains on investment
securities
|
14,401
|
|
|
1,686
|
|
|
3,172
|
|
|
20,299
|
|
Other
income
|
7,022
|
|
|
4,256
|
|
|
13,728
|
|
|
11,050
|
|
Other
(deductions)
|
(7,361)
|
|
|
(3,612)
|
|
|
(14,141)
|
|
|
(9,980)
|
|
Net other income and
deductions
|
17,242
|
|
|
5,770
|
|
|
12,433
|
|
|
31,858
|
|
Interest
Charges
|
27,263
|
|
|
30,359
|
|
|
88,785
|
|
|
91,785
|
|
Earnings before
Income Taxes
|
137,784
|
|
|
115,951
|
|
|
190,341
|
|
|
23,721
|
|
Income Taxes
(Benefits)
|
12,331
|
|
|
9,188
|
|
|
14,726
|
|
|
(32,420)
|
|
Net
Earnings
|
125,453
|
|
|
106,763
|
|
|
175,615
|
|
|
56,141
|
|
(Earnings)
Attributable to Valencia Non-controlling Interest
|
(3,553)
|
|
|
(3,860)
|
|
|
(11,222)
|
|
|
(10,188)
|
|
Preferred Stock
Dividend Requirements of Subsidiary
|
(132)
|
|
|
(132)
|
|
|
(396)
|
|
|
(396)
|
|
Net Earnings
Attributable to PNMR
|
$
|
121,768
|
|
|
$
|
102,771
|
|
|
$
|
163,997
|
|
|
$
|
45,557
|
|
Net Earnings
Attributable to PNMR per Common Share:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.52
|
|
|
$
|
1.29
|
|
|
$
|
2.05
|
|
|
$
|
0.57
|
|
Diluted
|
$
|
1.52
|
|
|
$
|
1.28
|
|
|
$
|
2.05
|
|
|
$
|
0.57
|
|
Dividends Declared
per Common Share
|
$
|
0.3075
|
|
|
$
|
0.2900
|
|
|
$
|
0.9225
|
|
|
$
|
0.8700
|
|
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SOURCE PNM Resources, Inc.