Attached files
| file | filename |
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| 8-K - TEXAS NEW MEXICO POWER CO | a201108088kearningsupdate.htm |
For Immediate Release
Aug. 8, 2011
New Mexico Regulators File Order on PNM Rate Case
Commission approves $72.1 million annual revenue increase
(ALBUQUERQUE, N.M.) - State regulators today filed a final order that would grant PNM Resources' (NYSE: PNM) electric utility, Public Service Co. of New Mexico, a $72.1 million increase to annual base revenues. The order from the N.M. Public Regulation Commission modifies terms of a rate case agreement, or stipulation, PNM reached in February with several key parties regarding the utility's request to increase rates.
For the Commission's order to become effective, PNM and the key parties have until Aug. 12 to formally accept the modifications or to indicate they do not oppose or take no position on the changes.
“We are working collaboratively with the key parties to closely examine the Commission's order and the amendments to the original stipulation,” said Pat Vincent-Collawn, PNM Resources president and CEO.
In addition to increasing PNM's revenue, the order would:
• | Provide PNM with the opportunity to file for recovery of costs to comply with any federal or state environmental law or requirement effective after June 30, 2010, |
• | Set the utility's capital structure at 48.19 percent long-term debt, 0.53 percent preferred stock and 51.28 percent common equity, |
• | Set PNM's return on equity at 10.0 percent on a rate base of $1.8 billion. |
If the key parties agree, the order would allow PNM to advance the date on which rates under PNM's next rate case could become effective to July 1, 2013.
Today's order provides clarity to regulatory disallowances reported in the company's second quarter earnings results on Aug. 5. While ongoing earnings are not affected, PNM Resources today updated its second quarter and year-to-date GAAP (generally accepted accounting principles) financial results and reduced PNM's pre-tax regulatory disallowances from $45.1 million to $17.5 million. PNM Resources consolidated GAAP results today are updated to report earnings of $4.1 million, or $0.04 per diluted share for the second quarter, and $20.7 million, or $0.22 per diluted share, for the year through June 30.
Updated schedules reconciling GAAP to non-GAAP results are attached. Updated detailed financial schedules and earnings presentation slides are available on the PNM Resources Web site at http://www.pnmresources.com/investors/results.cfm
(MORE)
NMPRC Files PNM Rate Case Order 8-8-11 p. 2 of 2
The Commission's written order is available at http://www.pnmresources.com/investors/regulatory.cfm.
Background:
PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2010 consolidated operating revenues of $1.7 billion. Through its utility and energy subsidiaries, PNM Resources has approximately 2,630 megawatts of generation capacity and serves electricity to more than 875,300 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 in Texas. For more information, visit the company's Web site at www.PNMResources.com.
CONTACTS:
Analysts Financial Media
Gina Jacobi Frederick Bermudez
Director, Investor Relations (505) 241-4831
(505) 241-2211
(END)
PNM Resources | ||||||||||||||||||||||||
Schedule 1 | ||||||||||||||||||||||||
Reconciliation of Ongoing to GAAP Earnings | ||||||||||||||||||||||||
(Preliminary and Unaudited) | ||||||||||||||||||||||||
Quarter Ended June 30, 2011 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
PNM Electric | TNMP Electric | First Choice | Optim Energy (50%) | Corporate and Other | Consolidated | |||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | (1,505 | ) | $ | 4,102 | $ | 6,622 | $ | — | $ | (5,152 | ) | $ | 4,067 | ||||||||||
Adjusting items, net of income tax effects* | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | 276 | — | 2,285 | (1,769 | ) | — | 792 | |||||||||||||||||
Net change in unrealized impairments of NDT securities | 1,360 | — | — | — | — | 1,360 | ||||||||||||||||||
Strategic alternatives - competitive businesses | — | — | — | — | 558 | 558 | ||||||||||||||||||
Process improvement initiatives | 1,764 | 286 | 62 | — | 47 | 2,159 | ||||||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | — | — | (3,839 | ) | — | (3,839 | ) | ||||||||||||||||
Regulatory disallowances | 10,559 | 2,550 | — | — | — | 13,109 | ||||||||||||||||||
Total Adjustments | 13,959 | 2,836 | 2,347 | (5,608 | ) | 605 | 14,139 | |||||||||||||||||
Ongoing Earnings (Loss) | $ | 12,454 | $ | 6,938 | $ | 8,969 | $ | (5,608 | ) | $ | (4,547 | ) | $ | 18,206 | ||||||||||
Six Months Ended June 30, 2011 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
PNM Electric | TNMP Electric | First Choice | Optim Energy (50%) | Corporate and Other | Consolidated | |||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 2,145 | $ | 8,265 | $ | 20,111 | $ | — | $ | (9,817 | ) | $ | 20,704 | |||||||||||
Adjusting items, net of income tax effects* | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | (877 | ) | — | (3,569 | ) | (794 | ) | — | (5,240 | ) | ||||||||||||||
Net change in unrealized impairments of NDT securities | (355 | ) | — | — | — | — | (355 | ) | ||||||||||||||||
Strategic alternatives - competitive business | — | — | — | — | 907 | 907 | ||||||||||||||||||
Process improvement initiatives | 1,764 | 286 | 62 | — | 47 | 2,159 | ||||||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | — | — | (9,322 | ) | — | (9,322 | ) | ||||||||||||||||
Regulatory disallowances | 10,559 | 2,550 | — | — | — | 13,109 | ||||||||||||||||||
Total Adjustments | 11,091 | 2,836 | (3,507 | ) | (10,116 | ) | 954 | 1,258 | ||||||||||||||||
Ongoing Earnings (Loss) | $ | 13,236 | $ | 11,101 | $ | 16,604 | $ | (10,116 | ) | $ | (8,863 | ) | $ | 21,962 | ||||||||||
* Income tax effects calculated using tax rates of 35.65% for First Choice, 35.00% for TNMP and 39.59% for all other segments unless otherwise indicated. | ||||||||||||||||||||||||
This Schedule 1 updates Schedule 1 attached to the PNM Resources earnings news release dated Aug. 5, 2011. | ||||||||||||||||||||||||
PNM Resources | ||||||||||||||||||||||||
Schedule 2 | ||||||||||||||||||||||||
Reconciliation of Ongoing to GAAP Earnings Per Diluted Share | ||||||||||||||||||||||||
(Preliminary and Unaudited) | ||||||||||||||||||||||||
Quarter Ended June 30, 2011 | ||||||||||||||||||||||||
(earnings per diluted share) | ||||||||||||||||||||||||
PNM Electric | TNMP Electric | First Choice | Optim Energy (50%) | Corporate and Other | Consolidated | |||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | (0.02 | ) | $ | 0.04 | $ | 0.07 | $ | — | $ | (0.06 | ) | $ | 0.04 | ||||||||||
Adjusting items | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | — | — | 0.03 | (0.02 | ) | — | 0.01 | |||||||||||||||||
Net change in unrealized impairments of NDT securities | 0.02 | — | — | — | — | 0.02 | ||||||||||||||||||
Strategic alternatives - competitive businesses | — | — | — | — | 0.01 | 0.01 | ||||||||||||||||||
Process improvement initiatives | 0.02 | — | — | — | — | 0.02 | ||||||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | — | — | (0.04 | ) | — | (0.04 | ) | ||||||||||||||||
Regulatory disallowances | 0.11 | 0.03 | — | — | — | 0.14 | ||||||||||||||||||
Total Adjustments | 0.15 | 0.03 | 0.03 | (0.06 | ) | 0.01 | 0.16 | |||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.14 | $ | 0.08 | $ | 0.10 | $ | (0.06 | ) | $ | (0.05 | ) | $ | 0.20 | ||||||||||
Average Diluted Shares Outstanding | 92,135,782 | |||||||||||||||||||||||
Six Months Ended June 30, 2011 | ||||||||||||||||||||||||
(earnings per diluted share) | ||||||||||||||||||||||||
PNM Electric | TNMP Electric | First Choice | Optim Energy (50%) | Corporate and Other | Consolidated | |||||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR: | $ | 0.02 | $ | 0.09 | $ | 0.22 | $ | — | $ | (0.11 | ) | $ | 0.22 | |||||||||||
Adjusting items | ||||||||||||||||||||||||
Mark-to-market impact of economic hedges | (0.01 | ) | — | (0.04 | ) | (0.01 | ) | — | (0.06 | ) | ||||||||||||||
Net change in unrealized impairments of NDT securities | — | — | — | — | — | — | ||||||||||||||||||
Strategic alternatives - competitive businesses | — | — | — | — | 0.01 | 0.01 | ||||||||||||||||||
Process improvement initiatives | 0.02 | — | — | — | — | 0.02 | ||||||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | — | — | (0.10 | ) | — | (0.10 | ) | ||||||||||||||||
Regulatory disallowances | 0.11 | 0.03 | — | — | — | 0.14 | ||||||||||||||||||
Total Adjustments | 0.12 | 0.03 | (0.04 | ) | (0.11 | ) | 0.01 | 0.01 | ||||||||||||||||
Ongoing Earnings (Loss) | $ | 0.14 | $ | 0.12 | $ | 0.18 | $ | (0.11 | ) | $ | (0.10 | ) | $ | 0.24 | ||||||||||
Average Diluted Shares Outstanding | 92,102,430 | |||||||||||||||||||||||
Tables may not appear visually accurate due to rounding. | ||||||||||||||||||||||||
This Schedule 2 updates Schedule 3 attached to the PNM Resources earnings news release dated Aug. 5, 2011. | ||||||||||||||||||||||||
PNM Resources | ||||||||||||||||||||
Schedule 3 | ||||||||||||||||||||
Segment Reconciliation of GAAP Net Earnings to Ongoing EBITDA | ||||||||||||||||||||
(Earnings Before Interest Charges, Income Taxes, Depreciation and Amortization) | ||||||||||||||||||||
(Preliminary and Unaudited) | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Quarter Ended June 30, 2011 | ||||||||||||||||||||
PNM Electric | TNMP Electric | First Choice | Corporate and Other* | Consolidated | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | (1.5 | ) | $ | 4.1 | $ | 6.6 | $ | (5.2 | ) | $ | 4.1 | ||||||||
Interest charges | 18.0 | 7.3 | 0.1 | 5.1 | 30.5 | |||||||||||||||
Income taxes | (0.9 | ) | 2.5 | 3.7 | (3.6 | ) | 1.7 | |||||||||||||
Depreciation and amortization | 22.9 | 10.7 | 0.4 | 4.3 | 38.3 | |||||||||||||||
EBITDA | 38.5 | 24.6 | 10.8 | 0.6 | 74.6 | |||||||||||||||
GAAP to ongoing adjustments (before tax) | 22.4 | 4.4 | 3.7 | (8.4 | ) | 22.1 | ||||||||||||||
Ongoing EBITDA | $ | 60.9 | $ | 29.0 | $ | 14.5 | $ | (7.8 | ) | $ | 96.7 | |||||||||
Six Months Ended June 30, 2011 | ||||||||||||||||||||
PNM Electric | TNMP Electric | First Choice | Corporate and Other* | Consolidated | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 2.1 | $ | 8.3 | $ | 20.1 | $ | (9.8 | ) | $ | 20.7 | |||||||||
Interest charges | 36.1 | 14.6 | 0.3 | 10.1 | 61.1 | |||||||||||||||
Income taxes | 1.5 | 5.1 | 11.2 | (6.6 | ) | 11.2 | ||||||||||||||
Depreciation and amortization | 46.6 | 21.0 | 0.6 | 8.5 | 76.7 | |||||||||||||||
EBITDA | 86.3 | 49.0 | 32.2 | 2.2 | 169.7 | |||||||||||||||
Ongoing adjustments (before tax) | 17.0 | 4.3 | (5.4 | ) | (15.1 | ) | 0.8 | |||||||||||||
Ongoing EBITDA | $ | 103.3 | $ | 53.3 | $ | 26.8 | $ | (12.9 | ) | $ | 170.5 | |||||||||
* Corporate & Other segment includes equity in net earnings (loss) of Optim Energy. | ||||||||||||||||||||
Tables may not appear visually accurate due to rounding. | ||||||||||||||||||||
This Schedule 3 updates Schedule 5 attached to the PNM Resources earnings news release dated Aug. 5, 2011. | ||||||||||||||||||||
PNM Resources | ||||||||||||||||||||||||||
Schedule 4 | ||||||||||||||||||||||||||
Reconciliation of Ongoing (non-GAAP) Net Earnings | ||||||||||||||||||||||||||
to GAAP Consolidated Statement of Earnings (Loss) | ||||||||||||||||||||||||||
(Preliminary and Unaudited) | ||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||||
GAAP | Adjustments | Ongoing | GAAP | Adjustments | Ongoing | |||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||
Operating revenues | $ | 803,249 | $ | (739 | ) | (a) | $ | 802,510 | $ | 789,212 | $ | 3,273 | (a) | $ | 792,485 | |||||||||||
Cost of energy | 331,961 | 15,777 | (b) | 347,738 | 342,069 | (11,757 | ) | (h) | 330,312 | |||||||||||||||||
Gross margin | 471,288 | (16,516 | ) | 454,772 | 447,143 | 15,030 | 462,173 | |||||||||||||||||||
Other operating expenses | 309,464 | (27,887 | ) | (c) | 281,577 | 288,332 | (1,417 | ) | (d) | 286,915 | ||||||||||||||||
Depreciation and amortization | 76,745 | (1,416 | ) | (d) | 75,329 | 74,655 | (1,415 | ) | (d) | 73,240 | ||||||||||||||||
Operating income (loss) | 85,079 | 12,787 | 97,866 | 84,156 | 17,862 | 102,018 | ||||||||||||||||||||
Equity in net earnings (loss) of Optim Energy | — | (16,745 | ) | (e) | (16,745 | ) | (8,210 | ) | (1,521 | ) | (a) | (9,731 | ) | |||||||||||||
Net other income (deductions) | 14,909 | (589 | ) | (f) | 14,320 | 16,866 | (6,890 | ) | (i) | 9,976 | ||||||||||||||||
Interest charges | (61,127 | ) | — | (61,127 | ) | (63,171 | ) | — | (63,171 | ) | ||||||||||||||||
Earnings (Loss) before Income Taxes | 38,861 | (4,547 | ) | 34,314 | 29,641 | 9,451 | 39,092 | |||||||||||||||||||
Income Taxes (Benefit) | 11,241 | 847 | (g) | 12,088 | 8,552 | 5,540 | (g) | 14,092 | ||||||||||||||||||
Net Earnings (Loss) | 27,620 | (5,394 | ) | 22,226 | 21,089 | 3,911 | 25,000 | |||||||||||||||||||
Earnings Attributable to Valencia Non-controlling Interest | (6,652 | ) | 6,652 | (d) | — | (6,396 | ) | 6,396 | (d) | — | ||||||||||||||||
Preferred Stock Dividend Requirements of Subsidiary | (264 | ) | — | (264 | ) | (264 | ) | — | (264 | ) | ||||||||||||||||
Net Earnings (Loss) Attributable to PNMR | $ | 20,704 | $ | 1,258 | $ | 21,962 | $ | 14,429 | $ | 10,307 | $ | 24,736 | ||||||||||||||
Net Earnings (Loss) Attributable to PNMR per Common Share: | ||||||||||||||||||||||||||
Basic | $ | 0.23 | $ | 0.01 | $ | 0.24 | $ | 0.16 | $ | 0.11 | $ | 0.27 | ||||||||||||||
Diluted | $ | 0.22 | $ | 0.01 | $ | 0.24 | $ | 0.16 | $ | 0.11 | $ | 0.27 | ||||||||||||||
Average common shares outstanding: | ||||||||||||||||||||||||||
Basic | 91,600 | 91,553 | ||||||||||||||||||||||||
Diluted | 92,103 | 91,694 | ||||||||||||||||||||||||
(a) Mark-to-market impact of economic hedges | ||||||||||||||||||||||||||
(b) Mark-to-market impact of economic hedges $6,258; Consolidation of Valencia $9,519 | ||||||||||||||||||||||||||
(c) Consolidation of Valencia $(1,451); Regulatory disallowances $(21,402); Process improvement initiatives $(3,534); Strategic alternatives - competitive business $(1,500) | ||||||||||||||||||||||||||
(d) Consolidation of Valencia | ||||||||||||||||||||||||||
(e) Equity in net earnings (loss) of Optim Energy $(15,431); Mark-to-market impact of economic hedges $(1,314) | ||||||||||||||||||||||||||
(f) Net change in unrealized impairments of NDT securities | ||||||||||||||||||||||||||
(g) Net taxes on adjusting items | ||||||||||||||||||||||||||
(h) Mark-to-market impact of economic hedges $(20,985); Consolidation of Valencia $9,228 | ||||||||||||||||||||||||||
(i) Disposition of litigation $(8,509); Net change in unrealized impairment of NDT securities $1,153; Loss on reaquired debt $466 | ||||||||||||||||||||||||||
This Schedule 4 updates Schedule 8 attached to the PNM Resources earnings news release dated Aug. 5, 2011. | ||||||||||||||||||||||||||
PNM RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
Electric Operating Revenues | $ | 415,586 | $ | 405,817 | $ | 803,249 | $ | 789,212 | |||||||
Operating Expenses: | |||||||||||||||
Cost of energy | 173,454 | 151,181 | 331,961 | 342,069 | |||||||||||
Administrative and general | 68,795 | 62,420 | 127,260 | 125,205 | |||||||||||
Energy production costs | 47,127 | 51,811 | 95,779 | 105,696 | |||||||||||
Regulatory disallowances | 21,402 | — | 21,402 | — | |||||||||||
Depreciation and amortization | 38,272 | 37,376 | 76,745 | 74,655 | |||||||||||
Transmission and distribution costs | 18,161 | 15,672 | 35,038 | 29,562 | |||||||||||
Taxes other than income taxes | 15,515 | 13,683 | 29,985 | 27,869 | |||||||||||
Total operating expenses | 382,726 | 332,143 | 718,170 | 705,056 | |||||||||||
Operating income | 32,860 | 73,674 | 85,079 | 84,156 | |||||||||||
Other Income and Deductions: | |||||||||||||||
Interest income | 4,234 | 5,083 | 8,261 | 10,110 | |||||||||||
Gains (losses) on investments held by NDT | 5,894 | (1,342 | ) | 11,797 | 400 | ||||||||||
Other income | 809 | 1,171 | 1,804 | 11,370 | |||||||||||
Equity in net earnings (loss) of Optim Energy | — | (3,858 | ) | — | (8,210 | ) | |||||||||
Other deductions | (3,881 | ) | (3,173 | ) | (6,953 | ) | (5,014 | ) | |||||||
Net other income (deductions) | 7,056 | (2,119 | ) | 14,909 | 8,656 | ||||||||||
Interest Charges | 30,512 | 31,761 | 61,127 | 63,171 | |||||||||||
Earnings before Income Taxes | 9,404 | 39,794 | 38,861 | 29,641 | |||||||||||
Income Taxes | 1,735 | 13,492 | 11,241 | 8,552 | |||||||||||
Net Earnings | 7,669 | 26,302 | 27,620 | 21,089 | |||||||||||
(Earnings) Attributable to Valencia Non-controlling Interest | (3,470 | ) | (3,292 | ) | (6,652 | ) | (6,396 | ) | |||||||
Preferred Stock Dividend Requirements of Subsidiary | (132 | ) | (132 | ) | (264 | ) | (264 | ) | |||||||
Net Earnings Attributable to PNMR | $ | 4,067 | $ | 22,878 | $ | 20,704 | $ | 14,429 | |||||||
Net Earnings Attributable to PNMR per Common Share: | |||||||||||||||
Basic | $ | 0.04 | $ | 0.25 | $ | 0.23 | $ | 0.16 | |||||||
Diluted | $ | 0.04 | $ | 0.25 | $ | 0.22 | $ | 0.16 | |||||||
Dividends Declared per Common Share | $ | 0.125 | $ | 0.125 | $ | 0.250 | $ | 0.250 | |||||||
PNM RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, 2011 | December 31, 2010 | ||||||
(In thousands) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 14,023 | $ | 15,404 | |||
Accounts receivable, net of allowance for uncollectible accounts of $9,275 and $11,178 | 103,824 | 97,245 | |||||
Unbilled revenues | 97,513 | 71,453 | |||||
Other receivables | 46,596 | 58,901 | |||||
Affiliate receivables | 2,392 | 1,661 | |||||
Materials, supplies, and fuel stock | 51,370 | 52,479 | |||||
Regulatory assets | 29,608 | 36,292 | |||||
Commodity derivative instruments | 18,840 | 15,999 | |||||
Income taxes receivable | 102,317 | 97,450 | |||||
Current portion of accumulated deferred income taxes | 886 | 886 | |||||
Other current assets | 99,919 | 96,110 | |||||
Total current assets | 567,288 | 543,880 | |||||
Other Property and Investments: | |||||||
Investment in PVNGS lessor notes | 90,555 | 103,871 | |||||
Investments held by NDT | 168,513 | 156,922 | |||||
Other investments | 15,645 | 18,791 | |||||
Non-utility property, net of accumulated depreciation of $2,333 and $2,307 | 12,317 | 7,333 | |||||
Total other property and investments | 287,030 | 286,917 | |||||
Utility Plant: | |||||||
Plant in service and plant held for future use | 4,959,239 | 4,860,614 | |||||
Less accumulated depreciation and amortization | 1,665,970 | 1,626,693 | |||||
3,293,269 | 3,233,921 | ||||||
Construction work in progress | 139,340 | 137,622 | |||||
Nuclear fuel, net of accumulated amortization of $29,993 and $26,247 | 79,906 | 72,901 | |||||
Net utility plant | 3,512,515 | 3,444,444 | |||||
Deferred Charges and Other Assets: | |||||||
Regulatory assets | 478,599 | 502,467 | |||||
Goodwill | 321,310 | 321,310 | |||||
Other intangible assets, net of accumulated amortization of $5,511 and $5,414 | 26,329 | 26,425 | |||||
Commodity derivative instruments | 7,754 | 5,264 | |||||
Other deferred charges | 100,808 | 94,376 | |||||
Total deferred charges and other assets | 934,800 | 949,842 | |||||
$ | 5,301,633 | $ | 5,225,083 | ||||
PNM RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, 2011 | December 31, 2010 | ||||||
(In thousands, except share information) | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities: | |||||||
Short-term debt | $ | 304,000 | $ | 222,000 | |||
Current installments of long-term debt | 2,252 | 2,252 | |||||
Accounts payable | 111,460 | 95,969 | |||||
Accrued interest and taxes | 45,852 | 47,783 | |||||
Regulatory liabilities | 919 | 724 | |||||
Commodity derivative instruments | 27,285 | 31,407 | |||||
Dividends declared | 132 | 11,565 | |||||
Other current liabilities | 97,547 | 108,424 | |||||
Total current liabilities | 589,447 | 520,124 | |||||
Long-term Debt | 1,563,916 | 1,563,595 | |||||
Deferred Credits and Other Liabilities: | |||||||
Accumulated deferred income taxes | 543,044 | 540,106 | |||||
Accumulated deferred investment tax credits | 16,930 | 18,089 | |||||
Regulatory liabilities | 358,141 | 342,465 | |||||
Asset retirement obligations | 75,483 | 76,637 | |||||
Accrued pension liability and postretirement benefit cost | 250,671 | 270,172 | |||||
Commodity derivative instruments | 13,770 | 12,831 | |||||
Other deferred credits | 149,610 | 147,616 | |||||
Total deferred credits and other liabilities | 1,407,649 | 1,407,916 | |||||
Total liabilities | 3,561,012 | 3,491,635 | |||||
Commitments and Contingencies (See Note 9) | |||||||
Cumulative Preferred Stock of Subsidiary | |||||||
without mandatory redemption requirements ($100 stated value, 10,000,000 shares authorized: issued and outstanding 115,293 shares) | 11,529 | 11,529 | |||||
Equity: | |||||||
PNMR Convertible Preferred Stock, Series A without mandatory redemption requirements (no stated value, 10,000,000 shares authorized: issued and outstanding 477,800 shares) | 100,000 | 100,000 | |||||
PNMR common stockholders’ equity: | |||||||
Common stock outstanding (no par value, 120,000,000 shares authorized: issued and outstanding 86,673,174 shares) | 1,290,969 | 1,290,465 | |||||
Accumulated other comprehensive income (loss), net of income taxes | (70,691 | ) | (68,666 | ) | |||
Retained earnings | 324,217 | 314,943 | |||||
Total PNMR common stockholders’ equity | 1,544,495 | 1,536,742 | |||||
Non-controlling interest in Valencia | 84,597 | 85,177 | |||||
Total equity | 1,729,092 | 1,721,919 | |||||
$ | 5,301,633 | $ | 5,225,083 | ||||
PNM RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30, | |||||||
2011 | 2010 | ||||||
(In thousands) | |||||||
Cash Flows From Operating Activities: | |||||||
Net earnings | $ | 27,620 | $ | 21,089 | |||
Adjustments to reconcile net earnings to net cash flows from operating activities: | |||||||
Depreciation and amortization | 97,404 | 89,608 | |||||
PVNGS firm-sales contract revenue | (2,558 | ) | (28,856 | ) | |||
Bad debt expense | 11,732 | 13,035 | |||||
Deferred income tax expense | 17,992 | 15,649 | |||||
Equity in net (earnings) loss of Optim Energy | — | 8,210 | |||||
Net unrealized (gains) losses on derivatives | (6,996 | ) | 24,752 | ||||
Realized (gains) on investments held by NDT | (11,797 | ) | (400 | ) | |||
Stock based compensation expense | 2,867 | 1,962 | |||||
Regulatory disallowances | 21,402 | — | |||||
Other, net | 2,115 | 2,288 | |||||
Changes in certain assets and liabilities: | |||||||
Accounts receivable and unbilled revenues | (44,371 | ) | (23,643 | ) | |||
Materials, supplies, and fuel stock | 1,109 | (1,615 | ) | ||||
Other current assets | 1,679 | (34,909 | ) | ||||
Other assets | (257 | ) | (5,739 | ) | |||
Accounts payable | 6,101 | (476 | ) | ||||
Accrued interest and taxes | (6,798 | ) | 55,024 | ||||
Other current liabilities | (10,532 | ) | (44,694 | ) | |||
Other liabilities | (21,972 | ) | (15,083 | ) | |||
Net cash flows from operating activities | 84,740 | 76,202 | |||||
Cash Flows From Investing Activities: | |||||||
Additions to utility and non-utility plant | (153,168 | ) | (136,296 | ) | |||
Proceeds from sales of investments held by NDT | 94,890 | 36,285 | |||||
Purchases of investments held by NDT | (96,410 | ) | (37,850 | ) | |||
Return of principal on PVNGS lessor notes | 15,374 | 14,216 | |||||
Investments in Optim Energy | — | (16,407 | ) | ||||
Other, net | 760 | 1,416 | |||||
Net cash flows from investing activities | (138,554 | ) | (138,636 | ) | |||
PNM RESOURCES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30, | |||||||
2011 | 2010 | ||||||
(In thousands) | |||||||
Cash Flows From Financing Activities: | |||||||
Short-term borrowings (repayments), net | 82,000 | 87,000 | |||||
Long-term borrowings | — | 403,845 | |||||
Repayment of long-term debt | — | (403,845 | ) | ||||
Proceeds from stock option exercise | 2,172 | 778 | |||||
Purchases to satisfy awards of common stock | (4,535 | ) | (2,269 | ) | |||
Excess tax (shortfall) from stock-based payment arrangements | — | (114 | ) | ||||
Dividends paid | (23,127 | ) | (23,127 | ) | |||
Equity transactions with Valencia’s owner | (7,232 | ) | (7,019 | ) | |||
Payments received on PVNGS firm-sales contracts | 2,558 | 15,233 | |||||
Proceeds from transmission interconnection agreements | 589 | — | |||||
Debt issuance costs and other | 8 | (3,592 | ) | ||||
Net cash flows from financing activities | 52,433 | 66,890 | |||||
Change in Cash and Cash Equivalents | (1,381 | ) | 4,456 | ||||
Cash and Cash Equivalents at Beginning of Period | 15,404 | 14,641 | |||||
Cash and Cash Equivalents at End of Period | $ | 14,023 | $ | 19,097 | |||
Supplemental Cash Flow Disclosures: | |||||||
Interest paid, net of capitalized interest | $ | 57,930 | $ | 61,188 | |||
Income taxes paid (refunded), net | $ | (1,775 | ) | $ | (63,408 | ) | |
The following table shows PNM Electric operating revenues by customer class, including intersegment revenues and average number of customers:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||
(In millions, except customers) | |||||||||||||||||||||||
Residential | $ | 78.5 | $ | 79.2 | $ | (0.7 | ) | $ | 166.7 | $ | 163.6 | $ | 3.1 | ||||||||||
Commercial | 95.1 | 91.7 | 3.4 | 172.0 | 164.6 | 7.4 | |||||||||||||||||
Industrial | 22.6 | 20.7 | 1.9 | 43.3 | 41.0 | 2.3 | |||||||||||||||||
Public authority | 5.6 | 5.0 | 0.6 | 10.4 | 9.4 | 1.0 | |||||||||||||||||
Other retail | 2.4 | 3.0 | (0.6 | ) | 4.5 | 4.9 | (0.4 | ) | |||||||||||||||
Transmission | 10.9 | 9.1 | 1.8 | 21.0 | 18.9 | 2.1 | |||||||||||||||||
Firm requirements wholesale | 7.4 | 6.9 | 0.5 | 17.0 | 15.1 | 1.9 | |||||||||||||||||
Other sales for resale | 17.2 | 28.6 | (11.4 | ) | 37.8 | 59.2 | (21.4 | ) | |||||||||||||||
Mark-to-market activity | (0.5 | ) | (1.1 | ) | 0.6 | 0.8 | (3.1 | ) | 3.9 | ||||||||||||||
$ | 239.2 | $ | 243.1 | $ | (3.8 | ) | $ | 473.5 | $ | 473.6 | $ | (0.1 | ) | ||||||||||
Average retail customers (thousands) | 503.7 | 501.3 | 2.4 | 503.7 | 501.1 | 2.6 | |||||||||||||||||
The following table shows PNM Electric GWh sales by customer class:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||
(Gigawatt hours) | |||||||||||||||||
Residential | 729.4 | 744.3 | (14.9 | ) | 1,581.3 | 1,602.8 | (21.5 | ) | |||||||||
Commercial | 1,038.4 | 1,024.6 | 13.8 | 1,930.3 | 1,905.8 | 24.5 | |||||||||||
Industrial | 397.1 | 363.9 | 33.2 | 758.4 | 713.7 | 44.7 | |||||||||||
Public authority | 72.5 | 63.6 | 8.9 | 130.0 | 117.8 | 12.2 | |||||||||||
Firm requirements wholesale | 143.0 | 163.1 | (20.1 | ) | 326.3 | 340.3 | (14.0 | ) | |||||||||
Other sales for resale | 518.7 | 544.2 | (25.5 | ) | 1,129.4 | 1,085.4 | 44.0 | ||||||||||
2,899.1 | 2,903.7 | (4.6 | ) | 5,855.7 | 5,765.8 | 89.9 | |||||||||||
The following table shows TNMP Electric operating revenues by retail tariff consumer class, including intersegment revenues, and average number of consumers:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||
(In millions, except consumers) | |||||||||||||||||||||||
Residential | $ | 23.8 | $ | 20.1 | $ | 3.7 | $ | 43.3 | $ | 39.0 | $ | 4.3 | |||||||||||
Commercial | 20.9 | 19.7 | 1.2 | 40.3 | 37.2 | 3.1 | |||||||||||||||||
Industrial | 3.0 | 3.1 | (0.1 | ) | 6.2 | 6.0 | 0.2 | ||||||||||||||||
Other | 12.3 | 9.7 | 2.6 | 24.0 | 18.5 | 5.5 | |||||||||||||||||
$ | 60.0 | $ | 52.6 | $ | 7.4 | $ | 113.8 | $ | 100.7 | $ | 13.1 | ||||||||||||
Average consumers (thousands) (1) | 231.3 | 229.4 | 1.9 | 230.9 | 229.0 | 1.9 | |||||||||||||||||
(1) | TNMP provides transmission and distribution services to REPs that provide electric service to consumers in TNMP's service territories. The number of consumers above represents the customers of these REPs. Under TECA, consumers in Texas have the ability to choose First Choice or any other REP to provide energy. The average consumers reported above include 67,268 and 76,768 consumers for the three months ended June 30, 2011 and 2010, and 68,187 and 77,981 for the six months ended June 30, 2011 and 2010, who have chosen First Choice as their REP. These consumers are also included as customers in the First Choice segment. |
The following table shows TNMP Electric GWh sales by retail tariff consumer class:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||
(Gigawatt hours(1)) | |||||||||||||||||
Residential | 722.0 | 643.7 | 78.3 | 1,304.3 | 1,255.2 | 49.1 | |||||||||||
Commercial | 615.4 | 588.5 | 26.9 | 1,122.0 | 1,064.9 | 57.1 | |||||||||||
Industrial | 635.4 | 577.0 | 58.4 | 1,255.9 | 1,093.8 | 162.1 | |||||||||||
Other | 28.3 | 25.8 | 2.5 | 53.9 | 50.6 | 3.3 | |||||||||||
2,001.1 | 1,835.0 | 166.1 | 3,736.1 | 3,464.5 | 271.6 | ||||||||||||
(1) | The GWh sales reported above include 241.6 and 246.9 GWhs for the three months ended June 30, 2011 and 2010, and 451.2 and 496.4 GWhs for the six months ended June 30, 2011 and 2010 used by consumers, who have chosen First Choice as their REP. These GWhs are also included below in the First Choice segment. |
The following table shows First Choice operating revenues by customer class, including intersegment revenues, and actual number of customers:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||
(In millions, except customers) | |||||||||||||||||||||||
Residential | $ | 74.1 | $ | 75.3 | $ | (1.2 | ) | $ | 137.7 | $ | 150.0 | $ | (12.3 | ) | |||||||||
Commercial | 48.6 | 40.8 | 7.8 | 89.7 | 76.4 | 13.3 | |||||||||||||||||
Other | 3.3 | 3.8 | (0.5 | ) | 7.1 | 7.9 | (0.8 | ) | |||||||||||||||
$ | 126.0 | $ | 119.9 | $ | 6.1 | $ | 234.5 | $ | 234.3 | $ | 0.2 | ||||||||||||
Actual customers (thousands) (1,2) | 216.6 | 216.1 | 0.5 | 216.6 | 216.1 | 0.5 | |||||||||||||||||
(1) | See note above in the TNMP Electric segment discussion about the impact of TECA. |
(2) | Due to the competitive nature of First Choice’s business, actual customer counts are presented in the table above as a more representative business indicator than the average consumers that are shown in the table for TNMP. |
The following table shows First Choice GWh electric sales by customer class:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||
(Gigawatt hours) (1) | |||||||||||||||||
Residential | 570.1 | 549.3 | 20.8 | 1,058.7 | 1,099.4 | (40.7 | ) | ||||||||||
Commercial | 459.1 | 347.5 | 111.6 | 828.3 | 627.3 | 201.0 | |||||||||||
1,029.2 | 896.8 | 132.4 | 1,887.0 | 1,726.7 | 160.3 | ||||||||||||
(1) | See note above in the TNMP Electric segment discussion about the impact of TECA. |