PNM Resources (NYSE: PNM) today reported unaudited 2012 first quarter consolidated GAAP earnings of $17.1 million, or $0.21 per diluted share, compared with $16.6 million, or $0.18 per diluted share, during the same period in 2011. Consolidated GAAP results in 2011 included First Choice Power, which contributed $13.5 million, or $0.15 per diluted share, to earnings. Optim Energy had no impact on 2011 GAAP results.
Quarterly unaudited, consolidated ongoing earnings were $13.5 million, or $0.17 per diluted share, compared with $3.4 million, or $0.04 per diluted share, in 2011. Consolidated ongoing results in 2011 included First Choice Power and Optim Energy, which contributed a combined $3.1 million, or $0.03 per diluted share, to earnings. Earnings per diluted share are positively impacted in 2012 by the reduction in average shares resulting from PNM Resources’ purchase of outstanding equity securities in late 2011. Reconciliations of 2012 and 2011 GAAP to ongoing earnings are included in schedules 1 and 2.
“Our first quarter results demonstrate the financial improvements of our regulated utilities, PNM and TNMP, both of which benefitted from rate case resolutions last year and now are providing stable earnings paths,” said Pat Collawn, PNM Resources chairman, president and CEO. “A slowly recovering economy during the first quarter, combined with a milder winter in New Mexico and Texas, slightly tempered performance of both utilities.”
Quarterly financial materials are available at
SEGMENT REPORTING OF 2012 FIRST QUARTER EARNINGS
a vertically integrated electric utility in New Mexico with distribution, transmission and generation assets.
an electric transmission and distribution utility in Texas.
- PNM reported ongoing earnings of $14.1 million, or $0.18 per diluted share, compared with $0.8 million, or $0.01 per diluted share, in 2011. GAAP earnings were $17.7 million, or $0.22 per diluted share, compared with $3.6 million, or $0.04 per diluted share.
- Higher retail rates and a new rate structure that put more of the increase into the shoulder periods, coupled with lower O&M costs, improved earnings. Lower sales prices associated with Palo Verde Nuclear Generating Station unit 3 negatively affected performance.
– a segment that reflects costs at the PNM Resources holding company, mainly comprised of interest expense related to debt.
- TNMP reported ongoing earnings of $3.1 million, or $0.04 per diluted share, and GAAP earnings of $3.0 million, or $0.04 per diluted share, compared with ongoing and GAAP earnings of $4.2 million, or $0.05 per diluted share, in 2011.
- A 34 percent decrease in heating-degree days in TNMP’s service territory more than offset the full-quarter impact of higher transmission and distribution rates that went into effect in February 2011.
2012 GUIDANCE RANGE AFFIRMED
- Corporate/Other reported ongoing and GAAP losses of $3.6 million, or $0.05 per diluted share, compared with 2011 ongoing and GAAP losses of $4.7 million, or $0.05 per diluted share.
- The repurchase of long-term debt in late 2011 decreased interest expense.
PNM Resources today affirmed its 2012 financial outlook. Management expects 2012 consolidated ongoing earnings to be in the range of $1.20 to $1.32 per diluted share.