2024 Ongoing Earnings Guidance
Affirmed
- 2024 first quarter GAAP earnings of $0.52 per diluted share
- 2024 first quarter ongoing earnings of $0.41 per diluted share
- Affirmed ongoing earnings guidance range of $2.65 - $2.75
ALBUQUERQUE, N.M., April 30,
2024 /PRNewswire/ --
|
PNM Resources
(In millions, except EPS)
|
|
|
Q1
2024
|
Q1
2023
|
|
GAAP net earnings
attributable to PNM Resources
|
$47.2
|
$55.0
|
|
GAAP diluted
EPS
|
$0.52
|
$0.64
|
|
Ongoing net
earnings
|
$37.0
|
$47.6
|
|
Ongoing diluted
EPS
|
$0.41
|
$0.55
|
PNM Resources (NYSE: PNM) today released its 2024 first quarter
results. In addition, management affirmed its 2024 consolidated
ongoing earnings guidance of $2.65 to
$2.75 per diluted share.
"Our first quarter results exceeded expectations," said
Pat Vincent-Collawn, PNM Resources
Chairman and CEO. "We continue to show progress on our strategic
goals and remain focused on delivering reliable and clean energy
for our customers and communities."
SEGMENT REPORTING OF 2024 FIRST QUARTER 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
|
|
|
GAAP Diluted
EPS
|
|
Ongoing Diluted
EPS
|
|
Q1
2024
|
Q1
2023
|
|
Q1
2024
|
Q1
2023
|
|
PNM
|
$0.46
|
$0.64
|
|
$0.38
|
$0.55
|
|
TNMP
|
$0.16
|
$0.11
|
|
$0.16
|
$0.11
|
|
Corporate and
Other
|
($0.10)
|
($0.11)
|
|
($0.13)
|
($0.11)
|
|
|
|
|
|
|
|
Consolidated PNM
Resources
|
$0.52
|
$0.64
|
|
$0.41
|
$0.55
|
Net changes to GAAP and ongoing earnings in the first quarter of
2024 compared to the first quarter of 2023 include:
- PNM: The implementation of new retail rates and improved
performance by the decommissioning and reclamation trusts were more
than offset by lower transmission margins due to higher market
prices in the first quarter of 2023, higher demand charges from
battery storage contracts, new depreciation rates implemented as
part of new retail rates and depreciation expense associated with
new capital investments.
- TNMP: Rate recovery through Transmission Cost of Service (TCOS)
and Distribution Cost Recovery Factor (DCRF) increases were
partially offset by depreciation and interest expense associated
with new capital investments.
- Corporate and Other: Higher interest rates on variable rate
debt increased losses, net of hedges.
GAAP and ongoing earnings per share were further reduced in the
first quarter of 2024 by additional shares issued in December 2023.
In addition, GAAP earnings in the first quarter of 2024 included
a gain from the sale of New Mexico Renewable Development, offset by
PNM regulatory disallowances. Net unrealized gains on investment
securities for decommissioning and reclamation increased in the
first quarter of 2024 compared to the first quarter of 2023.
Additional materials with information on quarterly results are
available at
http://www.pnmresources.com/investors/results.cfm.
FIRST QUARTER CONFERENCE CALL: 11 A.M. EASTERN
TUESDAY, APRIL 30
PNM Resources will discuss these items during a live conference
call and webcast on Tuesday, April
30th at 11 a.m.
Eastern. Speaking on the call will be Pat Vincent-Collawn, PNM Resources Chairman and
Chief Executive Officer, Don Tarry,
PNM Resources President and Chief Operating Officer, and
Lisa Eden, PNM Resources Senior Vice
President and Chief Financial Officer.
The conference call will be simultaneously broadcast and
archived on our website at
http://www.pnmresources.com/investors/events-and-presentations.
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:
https://dpregister.com/sreg/10187942/fc2075e26c. 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 asking to join the PNM
Resources 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 2023 consolidated operating revenues of
$1.9 billion. Through its regulated
utilities, PNM and TNMP, PNM Resources provides electricity to more
than 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 3.1 gigawatts of capacity, with a goal to
achieve 100% emissions-free generation by 2040. For more
information, visit the company's website at
www.PNMResources.com.
|
CONTACTS:
|
|
|
Analysts
|
Media
|
|
Lisa Goodman
|
Corporate
Communications
|
|
(505) 241-2160
|
(505)
241-2783
|
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, including the unaudited
financial results and earnings guidance, 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 and apply only as of the date of
this report. 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. 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 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 1-2.
|
PNM Resources, Inc.
and Subsidiaries
Schedule
1
Reconciliation of
GAAP to Ongoing Earnings
(Unaudited)
|
|
|
|
PNM
|
|
TNMP
|
|
Corporate
and Other
|
|
PNMR
Consolidated
|
|
|
(in
thousands)
|
|
Three Months Ended
March 31, 2024
|
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$ 41,920
|
|
$ 14,583
|
|
$ (9,313)
|
|
$
47,190
|
|
Adjusting items before
income tax effects:
|
|
|
|
|
|
|
|
|
|
Net change in
unrealized (gains) and losses on investment
securities2a
|
|
(12,231)
|
|
—
|
|
—
|
|
(12,231)
|
|
Regulatory
disallowances2b
|
|
4,459
|
|
—
|
|
—
|
|
4,459
|
|
Pension expense
related to previously disposed of gas distribution
business2c
|
|
433
|
|
—
|
|
—
|
|
433
|
|
Merger related
costs2d
|
|
3
|
|
4
|
|
851
|
|
858
|
|
Sale of
NMRD3
|
|
—
|
|
—
|
|
15,097
|
|
15,097
|
|
Total adjustments
before income tax effects
|
|
(7,336)
|
|
4
|
|
15,948
|
|
8,616
|
|
Income tax impact of
above adjustments1
|
|
1,863
|
|
(1)
|
|
(4,051)
|
|
(2,189)
|
|
Sale of
NMRD3
|
|
—
|
|
—
|
|
(15,712)
|
|
(15,712)
|
|
Timing of
statutory and effective tax rates on non-recurring
items5
|
|
(1,625)
|
|
83
|
|
593
|
|
(949)
|
|
Total income tax
impacts4
|
|
238
|
|
82
|
|
(19,170)
|
|
(18,850)
|
|
Adjusting items, net
of income taxes
|
|
(7,098)
|
|
86
|
|
(3,222)
|
|
(10,234)
|
|
Ongoing Earnings
(Loss)
|
|
$ 34,822
|
|
$ 14,669
|
|
$
(12,535)
|
|
$
36,956
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2023
|
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$ 54,576
|
|
$ 10,033
|
|
$ (9,595)
|
|
$
55,014
|
|
Adjusting items before
income tax effects:
|
|
|
|
|
|
|
|
|
|
Net change in
unrealized (gains) and losses on investment
securities2a
|
|
(9,485)
|
|
—
|
|
—
|
|
(9,485)
|
|
Pension expense
related to previously disposed of gas distribution
business2c
|
|
679
|
|
—
|
|
—
|
|
679
|
|
Merger related
costs2d
|
|
12
|
|
—
|
|
286
|
|
298
|
|
Total adjustments
before income tax effects
|
|
(8,794)
|
|
—
|
|
286
|
|
(8,508)
|
|
Income tax impact of
above adjustments1
|
|
2,234
|
|
—
|
|
(73)
|
|
2,161
|
|
Income tax
impact of non-deductible merger related
costs4
|
|
1
|
|
—
|
|
54
|
|
55
|
|
Timing of
statutory and effective tax rates on non-recurring
items6
|
|
(727)
|
|
(64)
|
|
(283)
|
|
(1,074)
|
|
Total income tax
impacts4
|
|
1,508
|
|
(64)
|
|
(302)
|
|
1,142
|
|
Adjusting items, net
of income taxes
|
|
(7,286)
|
|
(64)
|
|
(16)
|
|
(7,366)
|
|
Ongoing Earnings
(Loss)
|
|
$ 47,290
|
|
$
9,969
|
|
$ (9,611)
|
|
$
47,648
|
|
|
|
|
|
|
|
|
|
|
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 Condensed Consolidated
Statements of Earnings as follows:
|
|
a
Changes in "Gains on investment
securities" reflecting non-cash performance relative to market, not
indicative of funding requirements
|
|
b
Increase in "Regulatory
disallowances"
|
|
c
Increases in "Other
(deductions)"
|
|
d
Increases in "Administrative and
general"
|
|
|
|
|
|
|
|
|
|
3
Net gain of $4.4 million on the sale of
NMRD: Increase in "Other (deductions)" of $15.1 million, decrease
in "Income Taxes (Benefits)" of
$3.8 million for federal income tax and a decrease in "Income Taxes
(Benefits)" of $15.7 million for investment tax credits
|
|
4
Increases (decreases) in "Income Taxes
(Benefits)"
|
|
5
Income tax timing impacts resulting from
differences between the statutory rates of 25.4% for PNM, 21.0% for
TNMP and the average
expected statutory tax rate of 23.3% for PNMR, and the GAAP
anticipated effective tax rates of 13.1% for PNM, 20.7% for TNMP,
and 14.6%
for PNMR, which will reverse by year end
|
|
6
Income tax timing impacts resulting from
differences between the statutory rates of 25.4% for PNM, 21.0% for
TNMP and the average
expected statutory tax rate of 23.8% for PNMR, and the GAAP
anticipated effective tax rates of 18.0% for PNM, 14.1% for TNMP,
and 15.4%
for PNMR, which will reverse by year end
|
|
PNM Resources, Inc.
and Subsidiaries
Schedule
2
Reconciliation of
GAAP to Ongoing Earnings Per Diluted Share
(Unaudited)
|
|
|
|
PNM
|
|
TNMP
|
|
Corporate
and Other
|
|
PNMR
Consolidated
|
|
|
(per diluted
share)
|
|
Three Months Ended
March 31, 2024
|
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$
0.46
|
|
$
0.16
|
|
$
(0.10)
|
|
$
0.52
|
|
Adjusting items, net of
income tax effects:
|
|
|
|
|
|
|
|
|
|
Net change in
unrealized (gains) and losses on investment securities
|
|
(0.10)
|
|
—
|
|
—
|
|
(0.10)
|
|
Sale of
NMRD
|
|
—
|
|
—
|
|
(0.05)
|
|
(0.05)
|
|
Regulatory
disallowances
|
|
0.04
|
|
—
|
|
—
|
|
0.04
|
|
Merger related
costs
|
|
—
|
|
—
|
|
0.01
|
|
0.01
|
|
Timing of
statutory and effective tax rates on non-recurring items
|
|
(0.02)
|
|
—
|
|
0.01
|
|
(0.01)
|
|
Total
Adjustments
|
|
(0.08)
|
|
—
|
|
(0.03)
|
|
(0.11)
|
|
Ongoing Earnings
(Loss)
|
|
$
0.38
|
|
$
0.16
|
|
$
(0.13)
|
|
$
0.41
|
|
Average Diluted Shares
Outstanding: 90,513,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2023
|
|
|
|
|
|
|
|
|
|
GAAP Net Earnings
(Loss) Attributable to PNMR
|
|
$
0.64
|
|
$
0.11
|
|
$
(0.11)
|
|
$
0.64
|
|
Adjusting items, net of
income tax effects:
|
|
|
|
|
|
|
|
|
|
Net change in
unrealized (gains) and losses on investment securities
|
|
(0.08)
|
|
—
|
|
—
|
|
(0.08)
|
|
Timing of statutory
and effective tax rates on non-recurring items
|
|
(0.01)
|
|
—
|
|
—
|
|
(0.01)
|
|
Total
Adjustments
|
|
(0.09)
|
|
—
|
|
—
|
|
(0.09)
|
|
Ongoing Earnings
(Loss)
|
|
$
0.55
|
|
$
0.11
|
|
$
(0.11)
|
|
$
0.55
|
|
Average Diluted Shares
Outstanding: 86,140,792
|
|
|
|
|
|
|
PNM Resources, Inc.
and Subsidiaries
Schedule
3
Condensed
Consolidated Statements of Earnings
(Unaudited)
|
|
|
Three Months
Ended
March 31,
|
|
2024
|
|
2023
|
|
(In thousands,
except
per share amounts)
|
|
|
|
|
|
Electric Operating
Revenues
|
$
436,877
|
|
$
544,077
|
|
Operating
Expenses:
|
|
|
|
|
Cost of
energy
|
132,304
|
|
241,686
|
|
Administrative and
general
|
55,427
|
|
55,110
|
|
Energy production
costs
|
22,212
|
|
22,358
|
|
Regulatory
disallowances
|
4,459
|
|
—
|
|
Depreciation and
amortization
|
93,187
|
|
78,074
|
|
Transmission and
distribution costs
|
22,764
|
|
22,196
|
|
Taxes other than
income taxes
|
25,934
|
|
25,562
|
|
Total operating
expenses
|
356,287
|
|
444,986
|
|
Operating
income
|
80,590
|
|
99,091
|
|
Other Income and
Deductions:
|
|
|
|
|
Interest
income
|
4,580
|
|
4,843
|
|
Gains on investment
securities
|
17,998
|
|
6,442
|
|
Other
income
|
4,911
|
|
3,093
|
|
Other
(deductions)
|
(16,522)
|
|
(2,493)
|
|
Net other income and
deductions
|
10,967
|
|
11,885
|
|
Interest
Charges
|
53,762
|
|
40,923
|
|
Earnings before
Income Taxes
|
37,795
|
|
70,053
|
|
Income Taxes
(Benefits)
|
(12,571)
|
|
9,780
|
|
Net
Earnings
|
50,366
|
|
60,273
|
|
(Earnings)
Attributable to Valencia Non-controlling Interest
|
(3,044)
|
|
(5,127)
|
|
Preferred Stock
Dividend Requirements of Subsidiary
|
(132)
|
|
(132)
|
|
Net Earnings
Attributable to PNMR
|
$ 47,190
|
|
$
55,014
|
|
Net Earnings
Attributable to PNMR per Common Share:
|
|
|
|
|
Basic
|
$
0.52
|
|
$
0.64
|
|
Diluted
|
$
0.52
|
|
$
0.64
|
|
Dividends Declared
per Common Share
|
$ 0.3875
|
|
$
0.3675
|
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SOURCE PNM Resources, Inc.
