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PNM Resources (NYSE: PNM) today reported unaudited 2012 third quarter consolidated GAAP earnings of $57.9 million, or $0.72 per diluted share, compared with $43.7 million, or $0.48 per diluted share, in 2011.
Quarterly unaudited consolidated ongoing earnings were $55.1 million, or $0.69 per diluted share, compared with $56.0 million, or $0.61 per diluted share, in 2011. Reconciliations of GAAP to non-GAAP measures such as ongoing earnings are shown on the attached schedules 1 through 4.
“One year since our return to a regulated utility model, we are continuing to see the benefits of our focus on achieving strong results at PNM and TNMP,” said Pat Collawn, PNM Resources chairman, president and CEO. “Both companies are benefiting from rate structures that keep better pace with investments made to serve customers and continued process improvement efforts to keep our operating expenses low. We made additional progress in the past quarter toward recovery of investments at PNM with the implementation of a rate rider for renewable energy.”
Quarterly financial materials are available at
For the first nine months of 2012, PNM Resources reported unaudited consolidated GAAP earnings of $96.5 million, or $1.20 per diluted share, compared with $64.4 million, or $0.70 per diluted share, in 2011. Unaudited consolidated ongoing earnings for the first nine months of 2012 were $95.1 million, or $1.18 per diluted share, compared with $78.0 million, or $0.85 per diluted share, in 2011.
SEGMENT REPORTING OF 2012 THIRD QUARTER EARNINGSPNM–
a vertically integrated electric utility in New Mexico with distribution, transmission and generation assets.
PNM reported ongoing earnings of $48.7 million, or $0.61 per diluted share, compared with $41.7 million, or $0.45 per diluted share, in 2011. GAAP earnings were $50.8 million, or $0.63 per diluted share, compared with $38.3 million, or $0.42 per diluted share, during the same period in 2011.
Primary drivers for improved earnings per diluted share were the implementation of higher retail and FERC generation rates, O&M cost savings and PNM Resources’ recapitalization of the business through repurchase of outstanding equity securities. The recapitalization was accomplished with proceeds from the company’s exit from its competitive businesses. Primary factors that negatively affected performance were cooler weather compared to last year, lower market prices for Palo Verde Nuclear Generating Station Unit 3 and higher interest expense from the issuance of long-term debt in late 2011. Year-to-date load growth has been neutral relative to 2011.
TNMP – an electric transmission and distribution utility in Texas.
TNMP reported ongoing and GAAP earnings of $9.1 million, or $0.11 per diluted share, compared with ongoing earnings of $9.0 million and GAAP earnings of $8.9 million, or $0.10 per diluted share in 2011.
Strong load growth was offset by weather that was cooler than last year’s record-breaking heat. PNM Resources’ purchase of outstanding equity securities following its exit from its competitive businesses improved earnings per diluted share at TNMP.
Corporate/Other– a segment that reflects costs at the PNM Resources holding company, mainly comprised of interest expense.
Corporate/Other reported ongoing losses of $2.7 million, or $0.03 per diluted share, and GAAP losses of $2.0 million, or $0.02 per diluted share, compared with 2011 ongoing losses of $2.7 million, or $0.02 per diluted share, and GAAP losses of $4.1 million, or $0.05 per diluted share.
The repurchase of long-term debt in late 2011 in connection with the recapitalization of the utility businesses decreased interest expense and improved performance.
2012 ONGOING EARNINGS GUIDANCE RANGE TIGHTENED
PNM Resources today narrowed its 2012 consolidated ongoing earnings range to $1.26 and $1.32 per diluted share. The previous range was $1.20 to $1.32 per diluted share. The company intends to provide guidance for 2013 on Dec. 7, 2012.