(Source: Business Wire)
PNM Resources (NYSE: PNM)
2009 THIRD-QUARTER SUMMARY
Quarterly GAAP (generally accepted accounting principles) earnings of
$0.59 per diluted share, compared with losses of $0.06 per diluted
share in 2008
Quarterly ongoing earnings of $0.63 per diluted share, compared with
$0.27 per diluted share in 2008
YEAR-TO-DATE SUMMARY
Year-to-date GAAP earnings of $1.61 per diluted share, compared with
losses of $2.42 per diluted share in 2008
Year-to-date ongoing earnings of $0.94 per diluted share, compared
with $0.24 per diluted share in 2008
PNM Resources (NYSE: PNM) today reported unaudited 2009 third-quarter
consolidated GAAP earnings of $54.2 million, or $0.59 per diluted share,
compared with losses of $5.5 million, or $0.06 per diluted share, in
2008.
Unaudited, consolidated ongoing quarterly earnings were $57.8 million,
or $0.63 per diluted share, compared with $23.6 million, or $0.27 per
diluted share, in 2008. Reconciliations of GAAP to non-GAAP measures are
shown in the attached schedules 1 through 8.
"Early last year we provided a checklist with nine primary goals that
needed to be achieved in order to restore PNM Resources' value. We are
pleased to report that our third-quarter and year-to-date results
reflect significant progress made in many areas," said Jeff Sterba, PNM
Resources chairman and CEO.
"Specific to the third quarter, financial results were driven by strong
performance at our Texas unregulated retail subsidiary, First Choice
Power, and reduced overall interest expense, which will help us improve
our credit metrics," Sterba said.
"While considerable achievements already have been accomplished this
year, drivers such as economic conditions -- and consumers' response to
those conditions -- uncertain power markets, utility cost pressures,
climate change mandates and the continuing need for adequate and timely
regulatory recovery will pose challenges for PNM Resources and our
industry into 2010 and beyond."
Sterba said quarterly retail energy sales and use-per-customer
statistics suggest the impact of the 2008-2009 recession has stabilized.
"While we still are seeing load loss in our New Mexico service
territory, the trend is improving," he said.
Adjusted for weather, quarterly PNM retail load decreased 2.5 percent
and residential use-per-customer increased slightly by 0.1 percent,
comparing 2009 with 2008. For TNMP, quarterly retail load increased 6.1
percent and residential use-per-customer increased 7.7 percent in 2009
compared with the same period last year. Adjusted for the impacts of
Hurricane Ike, which greatly reduced consumption in September 2008, TNMP
load increased slightly by 0.6 percent and residential use-per-customer
increased by 2.1 percent.
YEAR-TO-DATE RESULTS
For the first nine months of 2009, PNM Resources reported unaudited
consolidated GAAP earnings of $147.5 million, or $1.61 per diluted
share, compared with losses of $197.6 million, or $2.42 per diluted
share, in 2008. GAAP results in 2009 reflect various non-recurring items
recorded primarily in the first quarter, including the $71.7 million
after-tax gain from the sale of the company's natural gas operations. In
2008, year-to-date GAAP results included impairment charges of $147.7
million.
Unaudited, consolidated ongoing earnings for the first nine months of
the year were $86.4 million, or $0.94 per diluted share, compared with
$19.3 million, or $0.24 per diluted share, in 2008. Year-to-date results
in 2008 included PNM gas operations ongoing earnings of $15.0 million,
or $0.18 per diluted share. Prior to being sold in January, PNM gas
operations contributed $7.6 million, or $0.08 per diluted share, to
consolidated earnings.
QUARTERLY SEGMENT REPORTING OF EARNINGS
Regulated Operations
PNM -- a
vertically integrated electric utility in New Mexico with distribution,
transmission and generation assets.
PNM reported ongoing earnings of $31.7 million, or $0.35 per diluted
share, compared with $28.7 million, or $0.33 per diluted share, in
2008. GAAP earnings were $30.8 million, or $0.33 per diluted share,
compared with $15.8 million, or $0.18 per diluted share, in 2008.
Higher retail rates implemented in July and lower interest expense
were offset partially by reduced customer demand and lower pension
income.
TNMP -- an
electric transmission and distribution utility in Texas.
TNMP reported ongoing earnings of $5.5 million, or $0.06 per diluted
share, compared with $8.2 million, or $0.10 per diluted share, in
2008. GAAP earnings were $6.2 million, or $0.07 per diluted share,
compared with $8.1 million, or $0.09 per diluted share, in 2008.
Earnings were negatively affected by higher interest costs associated
with $315.5 million of refinanced debt. These higher costs are
reflected in the new TNMP rates that went into effect Sept. 1. Other
factors that negatively affected earnings include lower pension income
and higher operating expenses.
Unregulated Operations
First Choice Power -- an
unregulated retail electric provider in Texas.
First Choice Power reported ongoing earnings of $18.3 million, or
$0.20 per diluted share, compared with losses of $3.0 million, or
$0.03 per diluted share, in 2008. GAAP earnings were $17.1 million, or
$0.19 per diluted share, compared with 2008 losses of $16.5 million,
or $0.19 per diluted share.
Lower purchased power prices significantly improved average retail
margins during the quarter. A 5.3 percent decline in electricity sales
offset some of the positive pricing impacts. Quarterly bad-debt
expense decreased from $10.3 million in 2008 to $9.1 million in 2009.
Lower customer default rates and better management of outstanding
accounts receivable contributed to lower 2009 bad debt expense
compared with 2008.
Optim Energy -- jointly
owned by PNM Resources and a subsidiary of Cascade Investment, L.L.C.,
Optim Energy owns three generating assets in Texas, totaling nearly
1,200 megawatts.
PNM Resources' equity in Optim Energy net ongoing earnings was $4.5
million, or $0.05 per diluted share, compared with $0.2 million in
2008. PNM Resources' equity in the net GAAP earnings of Optim Energy
was $4.2 million, or $0.04 per diluted share, compared with 2008
losses of $0.9 million, or $0.01 per diluted share.
PNM Resources' share of Optim Energy's ongoing EBITDA was $14.3
million, compared with $5.4 million in 2008. Improved financial
performance resulted from the addition of Cedar Bayou 4, favorable
hedged positions, Twin Oaks Power fuel savings and operational cost
reductions.
Twin Oaks had an equivalent availability factor of 98.5 percent during
the quarter. Availability factors for Altura Cogen and Cedar Bayou 4
were 99.0 percent and 95.5 percent, respectively.
Corporate/Other -- a
segment that reflects costs at the PNM Resources holding company, mainly
comprised of interest expense related to debt. For the purposes of this
news release, the Corporate/Other segment excludes the quarterly
contribution of Optim Energy reported above.
Corporate/Other reported ongoing losses of $2.1 million, or $0.03 per
diluted share, compared with 2008 ongoing losses of $6.3 million, or
$0.08 per diluted share. GAAP losses were $2.6 million, or $0.03 per
diluted share, compared with GAAP losses of $11.3 million, or $0.13
per diluted share in 2008.
Less outstanding debt, lower short-term debt interest rates and the
repurchase of certain senior unsecured notes reduced ongoing financing
costs by $6.7 million.
2009 EARNINGS OUTLOOK
PNM Resources today updated its 2009 earnings outlook range. Management
now expects ongoing earnings to be in the range of $0.76 to $0.81 per
diluted share. The previous range was $0.40 to $0.55 per diluted share.
The increase in the range was driven largely by First Choice Power's
financial performance. Management will discuss the outlook in more
detail during the third-quarter earnings call.
THIRD-QUARTER EARNINGS CALL: 9 A.M. EDT TODAY
PNM Resources will discuss third-quarter earnings results and the 2009
earnings outlook during a live conference call and Web cast today at
9 a.m. EDT. Speaking on the call will be Jeff Sterba, PNM Resources
chairman and CEO; Pat Vincent-Collawn, PNM Resources president and COO;
and Chuck Eldred, PNM Resources executive 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 Web site at least 30 minutes
before the event to register, download and install any necessary audio
software.
Investors, analysts and other participants can listen to the live
conference call by dialing (877) 440-5791 (toll free) or (719) 325-4868
(toll) five to 10 minutes prior to the event and referencing "the PNM
Resources earnings conference call." A telephone replay will be
available at noon Eastern until midnight Nov. 5 by dialing (888)
203-1112 (toll free) or (719) 457-0820 and using confirmation code
3529459.
MANAGEMENT TO PRESENT AT EEI FINANCIAL CONFERENCE
PNM Resources management will conduct a presentation during the annual
Edison Electric Institute Financial Conference in Hollywood, Florida.
The presentation will be webcast live at 9 a.m. Eastern on Tuesday, Nov.
3. Interested parties can access all of the EEI webcasts at: http://phx.corporate-ir.net/phoenix.zhtml?c=130144&p=conferenceAgenda&id=2471665&day=1.
Management also will meet with industry analysts and investors Sunday,
Nov. 1 through Tuesday, Nov. 3. Supporting material for the investor
meetings will be available beginning Nov. 1 on PNM Resources' Web site
at http://pnm.client.shareholder.com/investors/events.cfm.
E-MAIL ALERTS, RSS FEEDS AVAILABLE
PNM Resources encourages analysts, investors and other interested
parties to visit www.PNMResources.com
and register to automatically receive company financial information by
e-mail. Once registered, participants can choose from a menu to
automatically receive requested information, including news releases,
notices of webcasts and filings with the U.S. Securities and Exchange
Commission. Participants can unsubscribe at any time and will not
receive information that was not requested.
Interested parties also can register to automatically receive feeds
through Really Simple Syndication, or RSS, a format designed for sharing
updated web content such as headlines. An RSS feed automatically
highlights fresh material from the PNM Resources Web site so registrants
don't have to repeatedly check the site for updates. To sign up for
e-mail alerts and RSS feeds, visit www.PNMResources.com,
enter the Investor Relations section and click on the icons at the
bottom of the page.
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in
Albuquerque, N.M., with 2008 consolidated operating revenues from
continuing and discontinued operations of $2.5 billion. Through its
utility and energy subsidiaries, PNM Resources has more than 2,680
megawatts of generation resources and serves electricity to more than
884,000 homes and businesses in New Mexico and Texas. The company also
has a 50-percent ownership of Optim Energy, which owns nearly 1,200
megawatts of generation resources. For more information, visit the
company's Web site at www.PNMResources.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995
Statements made in this news release that relate to future events or PNM
Resources', PNM's, or TNMP's (collectively, the "Companies")
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 and the
Companies assume no obligation to update this information. Because
actual results may differ materially from those expressed or implied by
these forward-looking statements, the Companies caution readers not to
place undue reliance on these statements. The Companies' 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. These factors include conditions affecting the Companies'
ability to access the financial markets or Optim Energy's access to
additional debt financing following the utilization of its existing
credit facility, including actions by ratings agencies affecting the
Companies' credit ratings; the recession, its consequent extreme
disruption in the credit markets, and its impacts on the electricity
usage of the Companies' customers; state and federal regulatory and
legislative decisions and actions, including appeals of prior regulatory
proceedings; the ability of PNM to meet the renewable energy
requirements established by the New Mexico Public Regulation Commission,
including the resource diversity requirement, within the specified cost
parameters, and the Company's ability to obtain federal and/or state
funding and incentives for the development of alternative or renewable
energy; the performance of generating units, including the Palo Verde
Nuclear Generating Station, the San Juan Generating Station, the Four
Corners Plant, and Optim Energy generating units, and transmission
systems; the risk that Optim Energy desires to expand its generation
capacity but is unable to identify and implement profitable
acquisitions, or that PNM Resources and ECJV will not agree to make
additional capital contributions to Optim Energy; the potential
unavailability of cash from PNM Resources' subsidiaries or Optim Energy
due to regulatory, statutory or contractual restrictions; the impacts of
the decline in the values of marketable equity securities on the trust
funds maintained to provide nuclear decommissioning funding and pension
and other postretirement benefits, including the levels of funding and
expense; the ability of First Choice Power to attract and retain
customers and collect amounts billed; changes in Electric Reliability
Council of Texas protocols; changes in the cost of power acquired by
First Choice Power; collections experience; insurance coverage available
for claims made in litigation; fluctuations in interest rates; weather;
water supply; changes in fuel costs; availability of fuel supplies;
uncertainty regard the requirements and related costs of decommissioning
power plants owned or partially owned by PNM and Optim Energy and coal
mines supplying certain PNM power plants as well as the ability to
recover decommissioning costs through charges to customers; the risk
that replacement power costs incurred by PNM related to not meeting the
specified capacity factor for its generating units under its Emergency
Fuel and Purchase Power Cost Adjustment Clause will not be approved by
the New Mexico Public Regulation Commission; the risk that PNM may not
be able to renew rights-of-way on Native American lands or that the
costs of rights-of-way are not allowed to be recovered through rates
charged to customers; the effectiveness of risk management and commodity
risk transactions; seasonality and other changes in supply and demand in
the market for electric power; variability of wholesale power prices and
natural gas prices; volatility and liquidity in the wholesale power
markets and the natural gas markets; uncertainty regarding the ongoing
validity of government programs for emission allowances; the risk that
the resolution of the bankruptcy of the Lyondell Chemical Company
results in significant adverse impacts on the operations of the Altura
Cogen facility and Optim Energy; changes in the competitive environment
in the electric industry; the risk that the Companies and Optim Energy
may have to commit to substantial capital investments and additional
operating costs to comply with new environmental control requirements,
including possible future requirements to address concerns about global
climate change; the risks associated with completion of generation,
transmission, distribution, and other projects, including construction
delays and unanticipated cost overruns; the outcome of legal
proceedings; changes in applicable accounting principles; and the
performance of state, regional, and national economies.
Non-GAAP Financial Measures
PNM Resources ("the Company") uses ongoing earnings and ongoing earnings
per diluted share (or ongoing diluted earnings per share) and EBITDA
(earnings before interest charges, income taxes, depreciation and
amortization) to evaluate the operations of the Company and to establish
goals 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 generally accepted accounting
principles in the U.S. (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.
PNM ResourcesSchedule 12009 Reconciliation of Ongoing to GAAP Earnings(Preliminary and Unaudited)
Three Months Ended September 30, 2009
(in thousands)
Utilities FirstChoice OptimEnergy(50%) Corp/Other PNMR
PNMElectric TNMPElectric PNM Gas
Ongoing Earnings (Loss) $ 31,738 $ 5,460 $ - $ 18,274 $ 4,512 $ (2,147 ) $ 57,837
Non-Recurring Items
Economic mark-to-market hedges 4,087 - - (1,222 ) (343 ) - 2,522
Gain on sale of PNM Gas - - (1,083 ) - - - (1,083 )
Increases in legal reserves (8,297 ) - - - - (449 ) (8,746 )
Interest on uncertain tax positions 889 - - - - - 889
Net change in unrealized impairments of NDT securities 2,362 - - - - - 2,362
Post sale discontinued operations - - (279 ) - - - (279 )
Regulatory recoveries/disallowances - 691 - - - - 691
Total Non-Recurring Items (959 ) 691 (1,362 ) (1,222 ) (343 ) (449 ) (3,644 )
GAAP Earnings (Loss) from Continuing Operations 30,779 6,151 17,052 4,169 (2,596 ) 55,555
GAAP Earnings from Discontinued Operations (1,362 ) (1,362 )
GAAP Net Earnings (Loss) Attributable to PNMR $ 30,779 $ 6,151 $ (1,362 ) $ 17,052 $ 4,169 $ (2,596 ) $ 54,193
Nine Months Ended September 30, 2009
(in thousands)
Utilities FirstChoice OptimEnergy(50%) Corp/Other PNMR
PNMElectric TNMPElectric PNM Gas
Ongoing Earnings (Loss) $ 41,327 $ 9,082 $ 7,621 $ 37,642 $ 2,728 $ (12,013 ) $ 86,387
Non-Recurring Items
Business improvement plan (319 ) - - - - 349 30
CapRock settlement - - - - - 9,062 9,062
Depreciation associated with sale of gas assets - - 1,112 - - - 1,112
Economic mark-to-market hedges 2,939 - - 2,402 (2,158 ) - 3,183
Gain on reacquired debt - - - - - 4,415 4,415
Gain on sale of gas operations - - 71,690 - - - 71,690
Increases in legal reserves (15,909 ) - - - - (449 ) (16,358 )
Interest on uncertain tax positions 3,534 - - - - - 3,534
Net change in unrealized impairments of NDT securities 2,560 - - - - - 2,560
Post sale discontinued operations - - (2,721 ) - - 6 (2,715 )
Regulatory recoveries/disallowances (16,078 ) 257 - - - - (15,821 )
Sale of water rights - - - - - 768 768
Work continuance planning (382 ) - - - - - (382 )
Total Non-Recurring Items (23,655 ) 257 70,081 2,402 (2,158 ) 14,151 61,078
GAAP Earnings (Loss) from Continuing Operations 17,672 9,339 40,044 570 2,138 69,763
GAAP Earnings (Loss) from Discontinued Operations 77,702 77,702
GAAP Net Earnings (Loss) Attributable to PNMR $ 17,672 $ 9,339 $ 77,702 $ 40,044 $ 570 $ 2,138 $ 147,465
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PNM ResourcesSchedule 22008 Reconciliation of Ongoing to GAAP Earnings(Preliminary and Unaudited)
Three Months Ended September 30, 2008
(in thousands)
Utilities FirstChoice OptimEnergy(50%) Corp/Other PNMR
PNMElectric TNMPElectric PNM Gas
Ongoing Earnings (Loss) $ 28,650 $ 8,235 $ (4,184 ) $ (3,015 ) $ 242 $ (6,287 ) $ 23,641
Non-Recurring Items
Acquisition/Divestiture (339 ) - (4 ) - - (3,055 ) (3,398 )
Business improvement plan (116 ) (142 ) (68 ) (1,966 ) (2,292 )
Depreciation on gas assets - - 3,276 - - - 3,276
Economic mark-to-market hedges (9,378 ) - 342 (6,287 ) 8,543 - (6,780 )
Impairment of intangible assets - - - (7,316 ) (97 ) - (7,413 )
Net change in unrealized impairments of NDT securities (3,015 ) - - - - - (3,015 )
Speculative trading - - - 82 1 - 83
Write-off of emission allowances - - - - (9,587 ) - (9,587 )
Total Non-Recurring Items (12,848 ) (142 ) 3,546 (13,521 ) (1,140 ) (5,021 ) (29,126 )
GAAP Earnings (Loss) from Continuing Operations 15,802 8,093 (16,536 ) (898 ) (11,308 ) (4,847 )
GAAP Earnings from Discontinued Operations (638 ) (638 )
GAAP Net Earnings (Loss) Attributable to PNMR $ 15,802 $ 8,093 $ (638 ) $ (16,536 ) $ (898 ) $ (11,308 ) $ (5,485 )
Nine Months Ended September 30, 2008
(in thousands)
Utilities FirstChoice OptimEnergy(50%) Corp/Other PNMR
PNMElectric TNMPElectric PNM Gas
Ongoing Earnings (Loss) $ 18,261 $ 17,643 $ 14,993 $ (13,871 ) $ 2,783 (20,489 ) $ 19,320
Non-Recurring Items
Acquisition/Divestiture (339 ) - (9 ) - - (3,348 ) (3,696 )
Afton write-down (1,199 ) - - - - - (1,199 )
Business improvement plan 171 (146 ) (143 ) - - (4,434 ) (4,552 )
Depreciation on gas assets - - 9,705 - - - 9,705
Economic mark-to-market hedges (3,016 ) - 70 (446 ) (3,247 ) - (6,639 )
Gain on sale of merchant portfolio 3,083 - - - - - 3,083
Impairment of intangible assets (51,143 ) (34,456 ) - (55,317 ) (6,784 ) - (147,700 )
Interest on uncertain tax positions (1,922 ) 29 6 66 - 12 (1,809 )
Net change in unrealized impairments of NDT securities (4,070 ) - - - - - (4,070 )
Regulatory disallowances (18,273 ) - - - - - (18,273 )
Speculative trading - - - (31,452 ) (739 ) - (32,191 )
Write-off of emission allowances - - - - (9,587 ) - (9,587 )
Total Non-Recurring Items (76,708 ) (34,573 ) 9,629 (87,149 ) (20,357 ) (7,770 ) (216,928 )
GAAP Earnings (Loss) from Continuing Operations (58,447 ) (16,930 ) (101,020 ) (17,574 ) (28,259 ) (222,230 )
GAAP Earnings (Loss) from Discontinued Operations 24,622 24,622
GAAP Net Earnings (Loss) Attributable to PNMR $ (58,447 ) $ (16,930 ) $ 24,622 $ (101,020 ) $ (17,574 ) $ (28,259 ) (197,608 )
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PNM ResourcesSchedule 32009 Reconciliation of Ongoing to GAAP Earnings Per Share(Preliminary and Unaudited)
Three Months Ended September 30, 2009
(earnings per diluted share)
Utilities FirstChoice OptimEnergy(50%) Corp/Other PNMR
PNMElectric TNMPElectric PNM Gas
Ongoing Earnings (Loss) $ 0.35 $ 0.06 $ - $ 0.20 $ 0.05 $ (0.03 ) $ 0.63
Non-Recurring Items
Economic mark-to-market hedges 0.04 - - (0.01 ) (0.01 ) - 0.02
Gain on sale of PNM Gas - - (0.01 ) - - - (0.01 )
Increases in legal reserves (0.09 ) - - - - - (0.09 )
Interest on uncertain tax positions 0.01 - - - - - 0.01
Net change in unrealized impairments of NDT securities 0.02 - - - - - 0.02
Post sale discontinued operations - - - - - - -
Regulatory recoveries/disallowances - 0.01 - - - - 0.01
Total Non-Recurring Items (0.02 ) 0.01 (0.01 ) (0.01 ) (0.01 ) - (0.04 )
GAAP Earnings (Loss) from Continuing Operations 0.33 0.07 0.19 0.04 (0.03 ) 0.60
GAAP Earnings from Discontinued Operations (0.01 ) (0.01 )
GAAP Net Earnings (Loss) Attributable to PNMR $ 0.33 $ 0.07 $ (0.01 ) $ 0.19 $ 0.04 $ (0.03 ) $ 0.59
Average Diluted Shares Outstanding: 91,831,241
Nine Months Ended September 30, 2009
(earnings per diluted share)
Utilities FirstChoice OptimEnergy(50%) Corp/Other PNMR
PNMElectric TNMPElectric PNM Gas
Ongoing Earnings (Loss) $ 0.45 $ 0.10 $ 0.08 $ 0.41 $ 0.03 $ (0.13 ) $ 0.94
Non-Recurring Items
Business improvement plan - - - - - - -
CapRock settlement - - - - - 0.10 0.10
Depreciation associated with sale of gas assets - - 0.01 - - - 0.01
Economic mark-to-market hedges 0.03 - - 0.03 (0.02 ) - 0.04
Gain on reacquired debt - - - - - 0.05 0.05
Gain on sale of gas operations - 0.79 - - - 0.79
Increases in legal reserves (0.18 ) - - - - (0.01 ) (0.19 )
Interest on uncertain tax positions 0.04 - - - - - 0.04
Net change in unrealized impairments of NDT securities 0.03 - - - - - 0.03
Post sale discontinued operations - - (0.03 ) - - - (0.03 )
Regulatory recoveries/disallowances (0.18 ) - - - - - (0.18 )
Sale of water rights - - - - - 0.01 0.01
Work continuance planning - - - - - - -
Total Non-Recurring Items (0.26 ) 0.00 0.77 0.03 (0.02 ) 0.15 0.67
GAAP Earnings (Loss) from Continuing Operations 0.19 0.10 0.44 0.01 0.02 0.76
GAAP Earnings (Loss) from Discontinued Operations 0.85 0.85
GAAP Net Earnings (Loss) Attributable to PNMR $ 0.19 $ 0.10 $ 0.85 $ 0.44 $ 0.01 $ 0.02 $ 1.61
Average Diluted Shares Outstanding: 91,602,780
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PNM ResourcesSchedule 42008 Reconciliation of Ongoing to GAAP Earnings Per Share(Preliminary and Unaudited)
Three Months Ended September 30, 2008
(earnings per diluted share)
Utilities FirstChoice OptimEnergy(50%) Corp/Other PNMR
PNMElectric TNMPElectric PNM Gas
Ongoing Earnings (Loss) $ 0.33 $ 0.10 $ (0.05 ) $ (0.03 ) $ 0.00 $ (0.08 ) $ 0.27
Non-Recurring Items
Acquisition/Divestiture - - - - - (0.04 ) (0.04 )
Business improvement plan - (0.01 ) - - - (0.01 ) (0.02 )
Depreciation on gas assets - - 0.05 - - - 0.05
Economic mark-to-market hedges (0.11 ) - - (0.07 ) 0.10 - (0.08 )
Impairment of intangible assets - - - (0.09 ) - - (0.09 )
Speculative trading - - - - - - -
Net change in unrealized impairments of NDT securities (0.04 ) - - - - - (0.04 )
Write-off of emission allowances - - - - (0.11 ) - (0.11 )
Total Non-Recurring Items (0.15 ) (0.01 ) 0.05 (0.16 ) (0.01 ) (0.05 ) (0.33 )
GAAP Earnings (Loss) from Continuing Operations 0.18 0.09 (0.19 ) (0.01 ) (0.13 ) (0.06 )
GAAP Earnings from Discontinued Operations 0.00 0.00
GAAP Net Earnings (Loss) Attributable to PNMR $ 0.18 $ 0.09 $ 0.00 $ (0.19 ) $ (0.01 ) $ (0.13 ) $ (0.06 )
Average Diluted Shares Outstanding: 86,408,035
Nine Months Ended September 30, 2008
(earnings per diluted share)
Utilities FirstChoice OptimEnergy(50%) Corp/Other PNMR
PNMElectric TNMPElectric PNM Gas
Ongoing Earnings (Loss) $ 0.22 $ 0.22 $ 0.18 $ (0.17 ) $ 0.03 $ (0.24 ) $ 0.24
Non-Recurring Items
Acquisition/Divestiture - - - - - (0.04 ) (0.04 )
Afton write-down (0.02 ) - - - - - (0.02 )
Business improvement plan - - - - - (0.05 ) (0.05 )
Depreciation on gas assets - - 0.12 - - - 0.12
Economic mark-to-market hedges (0.04 ) - - (0.01 ) (0.04 ) - (0.09 )
Interest on uncertain tax positions (0.02 ) - - - - - (0.02 )
Gain on sale of merchant portfolio 0.04 - - - - - 0.04
Impairment of intangible assets (0.63 ) (0.43 ) - (0.68 ) (0.09 ) - (1.83 )
Regulatory disallowances (0.22 ) - - - - - (0.22 )
Speculative trading - - - (0.38 ) (0.01 ) - (0.39 )
Net change in unrealized impairments of NDT securities (0.05 ) - - - - - (0.05 )
Write-off of emission allowances - - - - (0.11 ) - (0.11 )
Total Non-Recurring Items (0.94 ) (0.43 ) 0.12 (1.07 ) (0.25 ) (0.09 ) (2.66 )
GAAP Earnings (Loss) from Continuing Operations (0.72 ) (0.21 ) (1.24 ) (0.22 ) (0.33 ) (2.72 )
GAAP Earnings (Loss) from Discontinued Operations 0.30 0.30
GAAP Net Earnings (Loss) Attributable to PNMR $ (0.72 ) $ (0.21 ) $ 0.30 $ (1.24 ) $ (0.22 ) $ (0.33 ) $ (2.42 )
Average Diluted Shares Outstanding: 81,669,330
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PNM ResourcesSchedule 5Segment Reconciliation of GAAP Net Earnings to Ongoing EBITDA(Earnings Before Interest Charges, Income Taxes, Depreciation and Amortization)(Preliminary and Unaudited)(in millions)
Three Months Ended September 30, 2009
PNMElectric TNMPElectric PNM Gas FirstChoice Corporate &Other PNMRConsolidated
GAAP Net Earnings (Loss) Attributable to PNMR $ 30.8 $ 6.2 ($1.4 ) $ 17.1 $ 1.5 $ 54.2
Interest charges 16.8 8.0 0.0 0.6 5.1 30.5
Income taxes 19.8 4.1 (0.8 ) 9.7 (2.2 ) 30.6
Depreciation and amortization 22.7 10.3 0.0 0.4 3.9 37.3
EBITDA 90.1 28.6 (2.2 ) 27.8 8.4 152.7
Ongoing adjustments (before tax) 1.7 (1.1 ) 2.2 1.8 0.5 5.1
Ongoing EBITDA $ 91.8 $ 27.5 $ 0.0 $ 29.6 $ 8.9 $ 157.8
Nine Months Ended September 30, 2009
PNMElectric TNMPElectric PNM Gas FirstChoice Corporate &Other PNMRConsolidated
GAAP Net Earnings (Loss) Attributable to PNMR $ 17.7 $ 9.3 $ 77.7 $ 40.0 $ 2.8 $ 147.5
Interest charges 51.4 20.0 1.0 2.4 17.5 92.3
Income taxes 11.3 6.3 41.2 22.5 (2.3 ) 79.0
Depreciation and amortization 68.1 27.8 0.0 1.4 13.1 110.4
EBITDA 148.5 63.4 119.9 66.3 31.0 429.1
Ongoing adjustments (before tax) 38.0 (0.4 ) (104.4 ) (3.6 ) (20.7 ) (91.1 )
Ongoing EBITDA $ 186.5 $ 63.0 $ 15.5 $ 62.7 $ 10.3 $ 338.0
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PNM ResourcesSchedule 6Segment Reconciliation of GAAP Net Earnings to Ongoing EBITDA(Earnings Before Interest Charges, Income Taxes, Depreciation and Amortization)(Preliminary and Unaudited)(in millions)
Three Months Ended September 30, 2008
PNMElectric TNMPElectric PNM Gas FirstChoice Corporate &Other PNMRConsolidated
GAAP Net Earnings (Loss) Attributable to PNMR $ 15.8 $ 8.1 ($0.6 ) ($16.5 ) ($12.3 ) ($5.5 )
Interest charges 20.3 4.2 3.4 1.8 12.8 42.5
Income taxes 9.5 4.9 0.8 (6.8 ) (10.7 ) (2.3 )
Depreciation and amortization 21.0 9.9 0.0 0.6 4.5 36.0
EBITDA 66.6 27.1 3.6 (20.9 ) (5.7 ) 70.7
Ongoing adjustments (before tax) 21.3 0.2 (5.9 ) 17.6 10.2 43.4
Ongoing EBITDA $ 87.9 $ 27.3 ($2.3 ) ($3.3 ) $ 4.5 $ 114.1
Nine Months Ended September 30, 2008
PNMElectric TNMPElectric PNM Gas FirstChoice Corporate &Other PNMRConsolidated
GAAP Net Earnings (Loss) Attributable to PNMR ($58.4 ) ($16.9 ) $ 24.6 ($101.0 ) ($45.9 ) ($197.6 )
Interest charges 51.8 13.6 9.9 2.5 30.9 108.7
Income taxes (5.1 ) 10.6 16.3 (28.4 ) (32.7 ) (39.3 )
Depreciation and amortization 62.8 27.0 0.0 1.7 13.2 104.7
EBITDA 51.1 34.3 50.8 (125.2 ) (34.5 ) (23.5 )
Ongoing adjustments (before tax) 93.5 34.6 (15.9 ) 108.0 46.5 266.7
Ongoing EBITDA $ 144.6 $ 68.9 $ 34.9 ($17.2 ) $ 12.0 $ 243.2
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PNM ResourcesSchedule 7Calculation of A service of YellowBrix, Inc.
