ALBUQUERQUE, N.M., Feb. 26, 2021 /PRNewswire/ --
- 2020 GAAP earnings of $2.15
per diluted share
- 2020 Ongoing earnings per share of $2.28 in line with expectations
- Affirmed 2021 Ongoing earnings guidance range of
$2.27 to $2.37 per diluted share
PNM Resources
(In millions, except EPS)
|
|
|
2020
|
2019
|
GAAP net earnings
attributable to PNM Resources
|
$172.8
|
$77.4
|
GAAP diluted
EPS
|
$2.15
|
$0.97
|
Ongoing net
earnings
|
$182.8
|
$172.5
|
Ongoing diluted
EPS
|
$2.28
|
$2.16
|
PNM Resources (NYSE: PNM) today released its 2020 year-end
results in line with previously published ongoing earnings
guidance. In addition, management affirmed its 2021 consolidated
ongoing earnings guidance of $2.27 to
$2.37 per diluted share.
"Our fourth quarter results finished the year in line with
expectations, demonstrating resilience and adaptability during the
continued effects of the COVID-19 pandemic," said Pat Vincent-Collawn, PNM Resources' chairman,
president and CEO. "We look forward to bringing the benefits of our
merger with Avangrid to customers, employees and communities and
are progressing through the remaining regulatory approvals. We
continue to expect the merger to close in the second half of
2021."
ERCOT WINTER STORM OUTAGES
During the severe winter storm impacting Texas this month, TNMP complied with the
Electric Reliability Council of Texas (ERCOT) directives to curtail the
delivery of electricity in its service territory, reducing the
record-setting demand created by arctic temperatures. TNMP did not
experience significant outages on its system outside of the
ERCOT-directed curtailments.
In the event a Retail Electric Provider files for bankruptcy,
TNMP is permitted to defer any associated uncollected amounts to a
regulatory asset for recovery through a future general rate
proceeding.
At this time, PNM Resources does not expect significant
financial impacts related to these events.
UPDATE ON MERGER AGREEMENT
On October 21, 2020, PNM Resources
announced an agreement to enter into a merger with AVANGRID. Under
the terms of the proposed merger, PNM Resources shareholders will
receive $50.30 in cash for each share
of PNM Resources common stock held at closing.
Shareholders approved the merger on February 12, 2021. Clearances have been received
from the Department of Justice under the Hart-Scott-Rodino Act and
the Committee on Foreign Investment in the United States (CFIUS). Approvals continue
to be pursued from the Federal Communications Commission, Federal
Energy Regulatory Commission, Nuclear Regulatory Commission, Public
Utility Commission of Texas and
New Mexico Public Regulation Commission.
PNM Resources continues to anticipate that the closing of the
merger will occur in the second half of 2021, subject to the
satisfaction or waiver of the remaining customary conditions to
closing, including among other things, receipt of other required
state and federal regulatory approvals.
SEGMENT REPORTING OF 2020 EARNINGS
- PNM – a vertically integrated electric utility in
New Mexico with distribution,
transmission and generation assets.
- TNMP – an electric transmission and distribution
utility in Texas.
- Corporate and Other – reflects the PNM Resources
holding company and other subsidiaries.
EPS Results by Segment
EPS Results by
Segment
|
|
GAAP Diluted
EPS
|
|
Ongoing Diluted
EPS
|
|
2020
|
2019
|
|
2020
|
2019
|
PNM
|
$1.81
|
$0.51
|
|
$1.76
|
$1.67
|
TNMP
|
$0.73
|
$0.70
|
|
$0.74
|
$0.70
|
Corporate and
Other
|
($0.39)
|
($0.24)
|
|
($0.22)
|
($0.21)
|
Consolidated PNM
Resources
|
$2.15
|
$0.97
|
|
$2.28
|
$2.16
|
GAAP earnings increased in 2020 resulting from $150.6 million of PNM pre-tax regulatory
disallowances and restructuring costs in 2019, partially offset by
$17.0 million of Corporate and Other
pre-tax merger related expenditures in 2020. GAAP and ongoing
earnings also increased in 2020 resulting from:
- PNM: interest savings from refinancing of debt at lower
interest rates, higher sales volumes as COVID-19 impacts were more
than offset by higher summer temperatures, higher transmission
margins and lower outage costs, partially offset by expected
increases in operational spending and higher depreciation and
property tax expenses resulting from additional capital
investments.
- TNMP: Distribution Cost of Service (DCOS) and Transmission Cost
of Service (TCOS) rate increases were partially offset by expected
increases in operational spending and higher depreciation and
property tax expenses resulting from additional capital
investments.
Additional materials with information on quarterly and full-year
results are available at
http://www.pnmresources.com/investors/results.cfm.
Background:
PNM Resources (NYSE: PNM) is an energy
holding company based in Albuquerque,
N.M., with 2020 consolidated operating revenues of
$1.5 billion. Through its regulated
utilities, PNM and TNMP, PNM Resources provides electricity to
approximately 800,000 homes and businesses in New Mexico and Texas. PNM serves its customers with a diverse
mix of generation and purchased power resources totaling 2.8
gigawatts of capacity, with a goal to achieve 100% emissions-free
energy by 2040. 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
|
|
Consolidated
|
|
|
(in
thousands)
|
Quarter Ended
December 31, 2020
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR:
|
|
$
|
16,671
|
|
|
$
|
11,398
|
|
|
$
|
(19,291)
|
|
|
$
|
8,778
|
|
Adjusting items before
income tax effects
|
|
|
|
|
|
|
|
|
Net change in
unrealized gains and losses on investment
securities2a
|
|
(16,015)
|
|
|
—
|
|
|
—
|
|
|
(16,015)
|
|
Regulatory
disallowances and restructuring costs2b
|
|
1,098
|
|
|
—
|
|
|
—
|
|
|
1,098
|
|
Pension expense
related to previously disposed of gas distribution
business2c
|
|
1,131
|
|
|
—
|
|
|
—
|
|
|
1,131
|
|
Merger related
costs2d
|
|
72
|
|
|
95
|
|
|
15,429
|
|
|
15,596
|
|
Total adjustments
before income tax effects
|
|
(13,714)
|
|
|
95
|
|
|
15,429
|
|
|
1,810
|
|
Income tax impact of
above adjustments1
|
|
3,483
|
|
|
(20)
|
|
|
(3,919)
|
|
|
(456)
|
|
Income tax impact of
non-deductible merger related costs3
|
|
752
|
|
|
428
|
|
|
1,257
|
|
|
2,437
|
|
Total income tax
impacts4
|
|
4,235
|
|
|
408
|
|
|
(2,662)
|
|
|
1,981
|
|
Adjusting items, net
of income taxes
|
|
(9,479)
|
|
|
503
|
|
|
12,767
|
|
|
3,791
|
|
Ongoing Earnings
(Loss)
|
|
$
|
7,192
|
|
|
$
|
11,901
|
|
|
$
|
(6,524)
|
|
|
$
|
12,569
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2020
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR:
|
|
$
|
145,473
|
|
|
$
|
58,585
|
|
|
$
|
(31,283)
|
|
|
$
|
172,775
|
|
Adjusting items before
income tax effects
|
|
|
|
|
|
|
|
|
Net change in
unrealized gains and losses on investment
securities2a
|
|
(14,513)
|
|
|
—
|
|
|
—
|
|
|
(14,513)
|
|
Regulatory
disallowances and restructuring costs2b
|
|
3,009
|
|
|
—
|
|
|
—
|
|
|
3,009
|
|
Pension expense
related to previously disposed of gas distribution
business2c
|
|
4,525
|
|
|
—
|
|
|
—
|
|
|
4,525
|
|
Merger related
costs2d
|
|
72
|
|
|
95
|
|
|
17,016
|
|
|
17,183
|
|
Total adjustments
before income tax effects
|
|
(6,907)
|
|
|
95
|
|
|
17,016
|
|
|
10,204
|
|
Income tax impact of
above adjustments1
|
|
1,754
|
|
|
(20)
|
|
|
(4,322)
|
|
|
(2,588)
|
|
Income tax impact of
non-deductible merger related costs3
|
|
752
|
|
|
428
|
|
|
1,257
|
|
|
2,437
|
|
Total income tax
impacts4
|
|
2,506
|
|
|
408
|
|
|
(3,065)
|
|
|
(151)
|
|
Adjusting items, net
of income taxes
|
|
(4,401)
|
|
|
503
|
|
|
13,951
|
|
|
10,053
|
|
Ongoing Earnings
(Loss)
|
|
$
|
141,072
|
|
|
$
|
59,088
|
|
|
$
|
(17,332)
|
|
|
$
|
182,828
|
|
|
|
|
|
|
|
|
|
|
1 Tax
effects calculated using a tax rate of 21.0% for TNMP and 25.4% for
other segments
|
2 The
pre-tax impacts (in thousands) of adjusting items are reflected on
the GAAP Consolidated Statement of Earnings as follows:
|
a (Increases) in "Gain (loss) on
investment securities" reflecting non-cash performance relative to
market, not indicative of funding requirements
|
b Increase of $1.9 million in
"Interest Charges", decrease of less than $0.1 million in "Other
income" for the year ended December 31, 2020, reflecting
disallowances of previously capitalized AFUDC for certain costs
included in the AFUDC computation, resulting from a FERC audit; and
a net increase of $1.1 million in "Regulatory disallowances and
restructuring costs" for the three months and year ended December
31, 2020, resulting from coal mine reclamation
remeasurements
|
c Increases in "Other
(deductions)"
|
d Increases in "Administrative and
general" of $15.6 million and $17.2 million for the three months
and year ended December 31, 2020; and increases of less than $0.1
million in "Taxes other than income taxes" for the three months and
year ended December 31, 2020
|
3 Additional income tax expense of
$1.2 million for non-deductible transaction costs and $1.2 million
for merger-related non-deductible compensation for the three months
and year ended December 31, 2020.
|
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
|
|
Consolidated
|
|
|
(in
thousands)
|
Quarter Ended
December 31, 2019
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR:
|
|
$
|
27,856
|
|
|
$
|
11,347
|
|
|
$
|
(7,398)
|
|
|
$
|
31,805
|
|
Adjusting items before
income tax effects
|
|
|
|
|
|
|
|
|
Mark-to-market impact
of economic hedges3a
|
|
(10)
|
|
|
—
|
|
|
—
|
|
|
(10)
|
|
Net change in
unrealized gains and losses on investment
securities3b
|
|
(7,590)
|
|
|
—
|
|
|
—
|
|
|
(7,590)
|
|
Regulatory
disallowances and restructuring costs2, 3c
|
|
—
|
|
|
496
|
|
|
—
|
|
|
496
|
|
Pension expense
related to previously disposed of gas distribution
business3d
|
|
1,045
|
|
|
—
|
|
|
—
|
|
|
1,045
|
|
Process improvement
initiatives3e
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Four Corners coal mine
reclamation3f
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Cost to review
strategic growth opportunities3e
|
|
—
|
|
|
—
|
|
|
1,571
|
|
|
1,571
|
|
Total adjustments
before income tax effects
|
|
(6,555)
|
|
|
496
|
|
|
1,571
|
|
|
(4,488)
|
|
Income tax impacts of
above adjustments1
|
|
1,665
|
|
|
(104)
|
|
|
(399)
|
|
|
1,162
|
|
Deferred income tax
impact of regulatory disallowance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Impairment of state
tax credits
|
|
—
|
|
|
—
|
|
|
425
|
|
|
425
|
|
Timing of statutory
and effective tax rates on non-recurring
items4
|
|
52
|
|
|
(12)
|
|
|
(6)
|
|
|
34
|
|
Total income tax
impacts5
|
|
1,717
|
|
|
(116)
|
|
|
20
|
|
|
1,621
|
|
Adjusting items, net
of income taxes
|
|
(4,838)
|
|
|
380
|
|
|
1,591
|
|
|
(2,867)
|
|
Ongoing Earnings
(Loss)
|
|
$
|
23,018
|
|
|
$
|
11,727
|
|
|
$
|
(5,807)
|
|
|
$
|
28,938
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2019
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR:
|
|
$
|
40,653
|
|
|
$
|
55,799
|
|
|
$
|
(19,090)
|
|
|
$
|
77,362
|
|
Adjusting items before
income tax effects
|
|
|
|
|
|
|
|
|
Mark-to-market impact
of economic hedges3a
|
|
(94)
|
|
|
—
|
|
|
—
|
|
|
(94)
|
|
Net change in
unrealized gains and losses on investment
securities3b
|
|
(21,282)
|
|
|
—
|
|
|
—
|
|
|
(21,282)
|
|
Regulatory
disallowances and restructuring costs2, 3c
|
|
150,599
|
|
|
496
|
|
|
—
|
|
|
151,095
|
|
Pension expense
related to previously disposed of gas distribution
business3d
|
|
4,179
|
|
|
—
|
|
|
—
|
|
|
4,179
|
|
Process improvement
initiatives3e
|
|
559
|
|
|
186
|
|
|
—
|
|
|
745
|
|
Four Corners coal mine
reclamation3f
|
|
794
|
|
|
—
|
|
|
—
|
|
|
794
|
|
Cost to review
strategic growth opportunities3e
|
|
—
|
|
|
—
|
|
|
1,571
|
|
|
1,571
|
|
Total adjustments
before income tax effects
|
|
134,755
|
|
|
682
|
|
|
1,571
|
|
|
137,008
|
|
Income tax impacts of
above adjustments1
|
|
(34,228)
|
|
|
(143)
|
|
|
(399)
|
|
|
(34,770)
|
|
Deferred income tax
impact of regulatory disallowance
|
|
(7,485)
|
|
|
—
|
|
|
—
|
|
|
(7,485)
|
|
Impairment of state
tax credits
|
|
—
|
|
|
—
|
|
|
425
|
|
|
425
|
|
Timing of statutory
and effective tax rates on non-recurring
items4
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total income tax
impacts5
|
|
(41,713)
|
|
|
(143)
|
|
|
26
|
|
|
(41,830)
|
|
Adjusting items, net
of income taxes
|
|
93,042
|
|
|
539
|
|
|
1,597
|
|
|
95,178
|
|
Ongoing Earnings
(Loss)
|
|
$
|
133,695
|
|
|
$
|
56,338
|
|
|
$
|
(17,493)
|
|
|
$
|
172,540
|
|
|
|
|
|
|
|
|
|
|
1 2019 income tax effects calculated
using tax rates of 21.00% for TNMP and 25.40% for other
segments
|
2 Regulatory disallowances and
restructuring costs are primarily related to the NM Supreme Court's
decision to affirm the NMPRC's disallowance of certain costs
included in PNM's NM 2015 Rate Case and disallowance of certain
costs in TNMP's 2018 Rate Case
|
3 The
pre-tax impacts (in thousands) of adjusting items are reflected on
the GAAP Consolidated Statement of Earnings as follows:
|
a (Reductions) in "Electric Operating
Revenues" and "Cost of energy" of $260 and $270 in the three months
ended December 31, 2019 and $997 and $1,091 in the year ended
December 31, 2019
|
b (Increases) in "Gain (loss) 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"
|
4 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 has reversed
|
5 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
|
|
Consolidated
|
|
|
(per diluted
share)
|
Quarter Ended
December 31, 2020
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR:
|
|
$
|
0.21
|
|
|
$
|
0.14
|
|
|
$
|
(0.24)
|
|
|
$
|
0.11
|
|
Adjusting items, net
of income tax effects
|
|
|
|
|
|
|
|
|
Net change in
unrealized gains and losses on investment securities
|
|
(0.15)
|
|
|
—
|
|
|
—
|
|
|
(0.15)
|
|
Regulatory
disallowances and restructuring costs
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Pension expense
related to previously disposed of gas distribution
business
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Merger related
costs
|
|
0.01
|
|
|
0.01
|
|
|
0.15
|
|
|
0.17
|
|
Total
Adjustments
|
|
(0.12)
|
|
|
0.01
|
|
|
0.15
|
|
|
0.04
|
|
Ongoing Earnings
(Loss)
|
|
$
|
0.09
|
|
|
$
|
0.15
|
|
|
$
|
(0.09)
|
|
|
$
|
0.15
|
|
Average Diluted Shares
Outstanding: 81,340,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2020
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR:
|
|
$
|
1.81
|
|
|
$
|
0.73
|
|
|
$
|
(0.39)
|
|
|
$
|
2.15
|
|
Adjusting items, net of
income tax effects
|
|
|
|
|
|
|
|
|
Net change in
unrealized gains and losses on investment securities
|
|
(0.13)
|
|
|
—
|
|
|
—
|
|
|
(0.13)
|
|
Regulatory
disallowances and restructuring costs
|
|
0.03
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
Pension expense
related to previously disposed of gas distribution
business
|
|
0.04
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
Merger related
costs
|
|
0.01
|
|
|
0.01
|
|
|
0.17
|
|
|
0.19
|
|
Total
Adjustments
|
|
(0.05)
|
|
|
0.01
|
|
|
0.17
|
|
|
0.13
|
|
Ongoing Earnings
(Loss)
|
|
$
|
1.76
|
|
|
$
|
0.74
|
|
|
$
|
(0.22)
|
|
|
$
|
2.28
|
|
Average Diluted Shares
Outstanding: 80,302,542
|
|
|
|
|
|
PNM Resources,
Inc. and Subsidiaries
Schedule
4
Reconciliation of
GAAP to Ongoing Earnings Per Diluted Share
(Preliminary and
Unaudited)
|
|
|
|
PNM
|
|
TNMP
|
|
Corporate
and Other
|
|
Consolidated
|
|
|
(per diluted
share)
|
Quarter Ended
December 31, 2019
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR:
|
|
$
|
0.35
|
|
|
$
|
0.14
|
|
|
$
|
(0.09)
|
|
|
$
|
0.40
|
|
Adjusting items, net
of income tax effects
|
|
|
|
|
|
|
|
|
Mark-to-market impact
of economic hedges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net change in
unrealized gains and losses on investment securities
|
|
(0.07)
|
|
|
—
|
|
|
—
|
|
|
(0.07)
|
|
Regulatory
disallowances and restructuring costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Pension expense
related to previously disposed of gas distribution
business
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Cost to review
strategic growth opportunities
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
0.02
|
|
Impairment of state
tax credits
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
Total
Adjustments
|
|
(0.07)
|
|
|
—
|
|
|
0.03
|
|
|
(0.04)
|
|
Ongoing Earnings
(Loss)
|
|
$
|
0.28
|
|
|
$
|
0.14
|
|
|
$
|
(0.06)
|
|
|
$
|
0.36
|
|
Average Diluted Shares
Outstanding: 80,022,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2019
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR:
|
|
$
|
0.51
|
|
|
$
|
0.70
|
|
|
$
|
(0.24)
|
|
|
$
|
0.97
|
|
Adjusting items, net of
income tax effects
|
|
|
|
|
|
|
|
|
Mark-to-market impact
of economic hedges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net change in
unrealized gains and losses on investment securities
|
|
(0.20)
|
|
|
—
|
|
|
—
|
|
|
(0.20)
|
|
Regulatory
disallowances and restructuring costs
|
|
1.40
|
|
|
—
|
|
|
—
|
|
|
1.40
|
|
Pension expense
related to previously disposed of gas distribution
business
|
|
0.04
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
Process improvement
initiatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Four Corners coal mine
reclamation
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Cost to review
strategic growth opportunities
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
0.02
|
|
Deferred income tax
impact of regulatory disallowances
|
|
(0.09)
|
|
|
—
|
|
|
—
|
|
|
(0.09)
|
|
Impairment of state
tax credits
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
Total
Adjustments
|
|
1.16
|
|
|
—
|
|
|
0.03
|
|
|
1.19
|
|
Ongoing Earnings
(Loss)
|
|
$
|
1.67
|
|
|
$
|
0.70
|
|
|
$
|
(0.21)
|
|
|
$
|
2.16
|
|
Average Diluted Shares
Outstanding: 79,990,498
|
|
|
|
|
|
PNM Resources,
Inc. and Subsidiaries
Schedule
5
Consolidated
Statements of Earnings
(Preliminary and
Unaudited)
|
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2018
|
|
(In thousands, except per share amounts)
|
Electric Operating
Revenues
|
$
|
1,523,012
|
|
|
$
|
1,457,603
|
|
|
$
|
1,436,613
|
|
Operating
Expenses:
|
|
|
|
|
|
Cost of
energy
|
447,241
|
|
|
412,812
|
|
|
399,726
|
|
Administrative and
general
|
216,334
|
|
|
189,227
|
|
|
188,470
|
|
Energy production
costs
|
137,977
|
|
|
142,545
|
|
|
149,477
|
|
Regulatory
disallowances and restructuring costs
|
1,098
|
|
|
151,095
|
|
|
65,598
|
|
Depreciation and
amortization
|
275,612
|
|
|
267,808
|
|
|
241,188
|
|
Transmission and
distribution costs
|
77,943
|
|
|
69,862
|
|
|
76,434
|
|
Taxes other than
income taxes
|
81,526
|
|
|
80,054
|
|
|
79,673
|
|
Total operating
expenses
|
1,237,731
|
|
|
1,313,403
|
|
|
1,200,566
|
|
Operating
income
|
285,281
|
|
|
144,200
|
|
|
236,047
|
|
Other Income and
Deductions:
|
|
|
|
|
|
Interest
income
|
14,223
|
|
|
14,022
|
|
|
15,540
|
|
Gains (losses) on
investment securities
|
21,599
|
|
|
29,589
|
|
|
(17,176)
|
|
Other
income
|
19,973
|
|
|
15,382
|
|
|
17,586
|
|
Other
(deductions)
|
(18,732)
|
|
|
(15,328)
|
|
|
(15,696)
|
|
Net other income and
(deductions)
|
37,063
|
|
|
43,665
|
|
|
254
|
|
Interest
Charges
|
114,392
|
|
|
121,016
|
|
|
127,244
|
|
Earnings before
Income Taxes
|
207,952
|
|
|
66,849
|
|
|
109,057
|
|
Income Taxes
(Benefits)
|
20,636
|
|
|
(25,282)
|
|
|
7,775
|
|
Net
Earnings
|
187,316
|
|
|
92,131
|
|
|
101,282
|
|
(Earnings)
Attributable to Valencia Non-controlling Interest
|
(14,013)
|
|
|
(14,241)
|
|
|
(15,112)
|
|
Preferred Stock
Dividend Requirements of Subsidiary
|
(528)
|
|
|
(528)
|
|
|
(528)
|
|
Net Earnings
Attributable to PNMR
|
$
|
172,775
|
|
|
$
|
77,362
|
|
|
$
|
85,642
|
|
Net Earnings
Attributable to PNMR per Common Share:
|
|
|
|
|
|
Basic
|
$
|
2.16
|
|
|
$
|
0.97
|
|
|
$
|
1.07
|
|
Diluted
|
$
|
2.15
|
|
|
$
|
0.97
|
|
|
$
|
1.07
|
|
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SOURCE PNM Resources, Inc.