Q1 2016 | Q1 2015 | |
GAAP net earnings | $10.5 | $14.3 |
GAAP diluted EPS | $0.13 | $0.18 |
Ongoing net earnings | $10.8 | $16.5 |
Ongoing diluted EPS | $0.13 | $0.21 |
Q1 2016 | Q1 2015 | |
GAAP net earnings | $4.1 | $10.0 |
GAAP diluted EPS | $0.05 | $0.12 |
Ongoing net earnings | $4.1 | $11.1 |
Ongoing diluted EPS | $0.05 | $0.14 |
• | In the first quarter, PNM’s ongoing earnings benefitted primarily from the elimination of Palo Verde Unit 2 lease costs following the purchase of 64 MW’s of leases in January 2016. This was more than offset by plant outage costs, increased depreciation expense and property tax from new investments, lower Palo Verde Unit 3 market sales prices and higher interest expense from the issuance of new long-term debt. |
Q1 2016 | Q1 2015 | |
GAAP net earnings | $7.5 | $7.7 |
GAAP diluted EPS | $0.09 | $0.10 |
Ongoing net earnings | $7.5 | $7.7 |
Ongoing diluted EPS | $0.09 | $0.10 |
• | In the first quarter, TNMP’s ongoing earnings benefitted from transmission rate relief, offset by milder weather and higher depreciation and property tax expenses resulting from additional capital investments. |
Q1 2016 | Q1 2015 | |
GAAP net earnings (loss) | $(1.1) | $(3.3) |
GAAP diluted EPS | $(0.01) | $(0.04) |
Ongoing net earnings (loss) | $(0.8) | $(2.3) |
Ongoing diluted EPS | $(0.01) | $(0.03) |
• | Corporate and Other benefitted from a net improvement in interest expense related to the repayment of long-term debt in May 2015 and net interest earned on the loan provided to Westmoreland Coal Company to finance its purchase of the San Juan Coal Company. |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended March 31, 2016 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 4,142 | $ | 7,456 | $ | (1,052 | ) | $ | 10,546 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Mark-to-market impact of economic hedges1 | (875 | ) | — | — | (875 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities2 | (986 | ) | — | — | (986 | ) | ||||||||||
New Mexico corporate income tax rate change8 | 804 | — | (92 | ) | 712 | |||||||||||
Regulatory disallowances and restructuring costs3 | 472 | — | 357 | 829 | ||||||||||||
Pension expense related to previously disposed of gas distribution business4 | 564 | — | 564 | |||||||||||||
Total Adjustments | (21 | ) | — | 265 | 244 | |||||||||||
Ongoing Earnings (Loss) | $ | 4,121 | $ | 7,456 | $ | (787 | ) | $ | 10,790 | |||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 9,990 | $ | 7,694 | $ | (3,344 | ) | $ | 14,340 | |||||||
Adjusting items, net of income tax effects | ||||||||||||||||
Mark-to-market impact of economic hedges5 | 1,045 | — | — | 1,045 | ||||||||||||
Net change in unrealized impairments of available-for-sale securities2 | (261 | ) | — | — | (261 | ) | ||||||||||
New Mexico corporate income tax rate change8 | (470 | ) | — | (203 | ) | (673 | ) | |||||||||
Regulatory disallowances6 | 131 | — | — | 131 | ||||||||||||
State tax credit and NOL impairment8 | 658 | — | 342 | 1,000 | ||||||||||||
Loss related to previously disposed of activities7 | — | — | 902 | 902 | ||||||||||||
Total Adjustments | 1,103 | — | 1,041 | 2,144 | ||||||||||||
Ongoing Earnings (Loss) | $ | 11,093 | $ | 7,694 | $ | (2,303 | ) | $ | 16,484 | |||||||
2016 income tax effects calculated using tax rates of 35.00% for TNMP and 39.02% for other segments. | ||||||||||||||||
2015 income tax effects calculated using tax rates of 35.00% for TNMP and 39.19% for other segments. | ||||||||||||||||
The impacts of adjusting items are reflected on the GAAP Condensed Consolidated Statement of Earnings as follows: | ||||||||||||||||
1Pre-tax8 impacts reflected as $1,364 thousand increase in "Electric Operating Revenues" and $71 thousand reduction in "Cost of energy" | ||||||||||||||||
2Pre-tax8 impact reflected in "Gains on available-for-sale securities" | ||||||||||||||||
3Pre-tax8 impact reflected as $774 thousand increase in "Regulatory disallowances and restructuring costs" and $586 thousand increase in "Other (deductions)" | ||||||||||||||||
4Pre-tax8 impact reflected in "Administrative and general" | ||||||||||||||||
5Pre-tax8 impacts reflected as $1,648 thousand reduction in "Electric Operating Revenues" and $71 thousand increase in "Cost of energy" | ||||||||||||||||
6Pre-tax8 impact reflected in "Regulatory disallowances and restructuring costs" | ||||||||||||||||
7Pre-tax8 impacts reflected as $291 thousand increase in "Taxes other than income taxes", $69 thousand increase in "Interest charges", and $1,122 thousand increase in "Other (deductions)" | ||||||||||||||||
8Tax impacts reflected in "Income Taxes" |
PNM | TNMP | Corporate and Other | Consolidated | |||||||||||||
(per diluted share) | ||||||||||||||||
Three Months Ended March 31, 2016 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 0.05 | $ | 0.09 | $ | (0.01 | ) | $ | 0.13 | |||||||
Adjusting items | ||||||||||||||||
Mark-to-market impact of economic hedges | (0.01 | ) | — | — | (0.01 | ) | ||||||||||
Net change in unrealized impairments of available-for-sale securities | (0.01 | ) | — | — | (0.01 | ) | ||||||||||
New Mexico corporate income tax rate change | 0.01 | — | — | 0.01 | ||||||||||||
Regulatory disallowances and restructuring costs | 0.01 | — | — | 0.01 | ||||||||||||
Pension expense related to previously disposed of gas distribution business | — | — | — | — | ||||||||||||
Total Adjustments | — | — | — | — | ||||||||||||
Ongoing Earnings (Loss) | $ | 0.05 | $ | 0.09 | $ | (0.01 | ) | $ | 0.13 | |||||||
Average Diluted Shares Outstanding: 80,163,736 | ||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
GAAP Net Earnings (Loss) Attributable to PNMR | $ | 0.12 | $ | 0.10 | $ | (0.04 | ) | $ | 0.18 | |||||||
Adjusting items | ||||||||||||||||
Mark-to-market impact of economic hedges | 0.01 | — | — | 0.01 | ||||||||||||
Net change in unrealized impairments of available-for-sale securities | — | — | — | — | ||||||||||||
New Mexico corporate income tax rate change | — | — | — | — | ||||||||||||
Regulatory disallowances | — | — | — | — | ||||||||||||
State tax credit and NOL impairment | 0.01 | — | — | 0.01 | ||||||||||||
Loss related to previously disposed of activities | — | — | 0.01 | 0.01 | ||||||||||||
Total Adjustments | 0.02 | — | 0.01 | 0.03 | ||||||||||||
Ongoing Earnings (Loss) | $ | 0.14 | $ | 0.10 | $ | (0.03 | ) | $ | 0.21 | |||||||
Average Diluted Shares Outstanding: 80,152,957 | ||||||||||||||||
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(In thousands, except per share amounts) | |||||||
Electric Operating Revenues | $ | 310,961 | $ | 332,868 | |||
Operating Expenses: | |||||||
Cost of energy | 92,369 | 115,645 | |||||
Administrative and general | 47,109 | 43,859 | |||||
Energy production costs | 42,686 | 42,669 | |||||
Regulatory disallowances and restructuring costs | 774 | 215 | |||||
Depreciation and amortization | 49,829 | 45,461 | |||||
Transmission and distribution costs | 16,594 | 16,487 | |||||
Taxes other than income taxes | 20,092 | 18,963 | |||||
Total operating expenses | 269,453 | 283,299 | |||||
Operating income | 41,508 | 49,569 | |||||
Other Income and Deductions: | |||||||
Interest income | 3,622 | 1,750 | |||||
Gains on available-for-sale securities | 6,218 | 4,024 | |||||
Other income | 4,264 | 4,961 | |||||
Other (deductions) | (2,999 | ) | (3,662 | ) | |||
Net other income and deductions | 11,105 | 7,073 | |||||
Interest Charges | 31,491 | 30,273 | |||||
Earnings before Income Taxes | 21,122 | 26,369 |
Income Taxes | 7,157 | 8,517 | |||||
Net Earnings | 13,965 | 17,852 | |||||
(Earnings) Attributable to Valencia Non-controlling Interest | (3,287 | ) | (3,380 | ) | |||
Preferred Stock Dividend Requirements of Subsidiary | (132 | ) | (132 | ) | |||
Net Earnings Attributable to PNMR | $ | 10,546 | $ | 14,340 | |||
Net Earnings Attributable to PNMR per Common Share: | |||||||
Basic | $ | 0.13 | $ | 0.18 | |||
Diluted | $ | 0.13 | $ | 0.18 | |||
Dividends Declared per Common Share | $ | 0.22 | $ | 0.20 |