PNM Resources Reports First Quarter 2024 Results
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
|
||
|
||
|
Q1 2024 |
Q1 2023 |
GAAP net earnings attributable to |
|
|
GAAP diluted EPS |
|
|
Ongoing net earnings |
|
|
Ongoing diluted EPS |
|
|
"Our first quarter results exceeded expectations," said
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 |
|
|
|
|
|
TNMP |
|
|
|
|
|
Corporate and Other |
( |
( |
|
( |
( |
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
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
In addition, GAAP earnings in the first quarter of 2024 included a gain from the sale of
Additional materials with information on quarterly results are available at
http://www.pnmresources.com/investors/results.cfm.
FIRST QUARTER CONFERENCE CALL: 11 A.
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
Supporting material for
Background:
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
Non-GAAP Financial Measures
GAAP refers to generally accepted accounting principles in the
Schedule 1 Reconciliation of GAAP to Ongoing Earnings (Unaudited) |
||||||||
|
||||||||
|
|
PNM |
|
TNMP |
|
Corporate |
|
PNMR |
|
|
(in thousands) |
||||||
Three Months Ended |
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
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 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 |
||||||||
6
Income tax timing impacts resulting from differences between the statutory rates of 25.4% for PNM, 21.0% for TNMP and the average |
Schedule 2 Reconciliation of GAAP to Ongoing Earnings Per Diluted Share (Unaudited) |
||||||||
|
||||||||
|
|
PNM |
|
TNMP |
|
Corporate |
|
PNMR |
|
|
(per diluted share) |
||||||
Three Months Ended |
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
Schedule 3 Condensed Consolidated Statements of Earnings (Unaudited) |
|||
|
|||
|
Three Months Ended |
||
|
2024 |
|
2023 |
|
(In thousands, except |
||
|
|
|
|
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 |
(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 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/pnm-resources-reports-first-quarter-2024-results-302130942.html
SOURCE