UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) October 27, 2003
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(October 23, 2003)
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Commission Name of Registrants, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
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333-32170 PNM Resources, Inc. 85-0468296
(A New Mexico Corporation)
Alvarado Square
Albuquerque, New Mexico 87158
(505) 241-2700
1-6986 Public Service Company of New Mexico 85-0019030
(A New Mexico Corporation)
Alvarado Square
Albuquerque, New Mexico 87158
(505) 241-2700
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(Former name, former address and former fiscal year,
if changed since last report)
Item 12. Results of Operations and Financial Condition
On October 23, 2003, PNM Resources, Inc. (the "Company") issued a press
release announcing its estimated results of operations for the three and nine
months ended September 30, 2003. The press release is furnished herewith as
Exhibit 99.1 and incorporated by reference herein.
The Company's press release and other communications from time to time
may include certain non-GAAP financial measures. A "non-GAAP financial measure"
is defined as a numerical measure of a company's financial performance,
financial position or cash flows that excludes (or includes) amounts that are
included in (or excluded from) the most directly comparable measure calculated
and presented in accordance with GAAP in the Company's financial statements.
Non-GAAP financial measures utilized by the Company include presentations
of revenues, operating expenses, operating income, other income and deductions,
net income, earnings per share and other GAAP measures of operating performance
that exclude or include the effect of litigation settlements, accounting or
regulatory changes, the restructuring of selected operations, certain merger
activities and other similar events. The Company's management believes these
non-GAAP financial measures provide useful information to investors by removing
the effect of variances in GAAP reported results of operations that are not
indicative of fundamental changes in the earnings capacity of the Company's
operations. Management also believes that the presentation of the non-GAAP
financial measure is consistent with its past practice, as well as industry
practice in general, and will enable investors and analysts to compare current
non-GAAP measures with non-GAAP measures presented in prior periods. The
non-GAAP financial measures used by the Company should not be considered in
isolation or as a substitute for measures of performance prepared in accordance
with GAAP.
Limitation on Incorporation by Reference
In accordance with general instruction B.6 of Form 8-K, the information
in this report, including exhibits, is furnished pursuant to Item 12 and shall
not be deemed "filed" for the purposes of Section 18 of the Securities Exchange
Act of 1934, or otherwise subject to the liability of that section and not
deemed incorporated by reference in any filing under the Securities Act of 1933.
EXHIBIT INDEX
Exhibit Number Description
99.1 Press Release dated October 23, 2003.
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EXHIBIT 99.1
PNM Resources Estimates Strong Earnings Performance
ALBUQUERQUE, N.M., October 23, 2003 - PNM Resources (NYSE: PNM) today said it
expects third quarter GAAP earnings to be approximately $0.41 per diluted share,
or ongoing earnings of $0.65 per diluted share after adjusting for a one-time
charge of $0.24 per diluted share. This compares to $0.59 per share of ongoing
earnings in the same period last year, reflecting a 10 percent increase. GAAP
earnings were $0.45 per diluted share for the same period in 2002.
The one-time item for the quarter represents debt retirement costs associated
with the refinancing of $300 million in senior unsecured notes. The refinancing
extended maturities and lowered the interest coupon from 7.1 percent to 4.4
percent.
"Strong retail electric demand in the quarter and expansion of our wholesale
electric long-term contract business more than offset the retail electric rate
reductions that began in September," said PNM Resources Chairman, President and
Chief Executive Officer Jeff Sterba.
PNM Resources expects earnings for the nine months ended September 30, 2003 to
be about $2.06 per diluted share, compared to $1.35 per diluted share for the
same period last year. Ongoing earnings for the nine months ended September 30,
2003, excluding a one-time gain for the cumulative effect of an accounting
change, a previously reported one-time charge and the one-time charge discussed
above, are expected to be approximately $1.63 per diluted share, compared to
$1.49 per diluted share for the same period a year ago, up 9.4 percent for the
year.
Based on its forecast of third quarter earnings, management today reaffirmed the
company's current earnings guidance estimate of ongoing earnings for 2003 of
between $1.80 and $2.05 per diluted share.
PNM Resources will announce final third quarter results on October 30, 2003. The
company plans to host a teleconference and webcast discussion with company
management on the morning of Friday, October 31, at 9:00 a.m. (ET). Interested
participants should call 1-800-915-4836 after 8:45 AM (ET). The call will also
be broadcast live over the Internet, which can be accessed from a link on PNM
Resources home page at www.pnm.com.
PNM Resources is an energy holding company based in Albuquerque, New Mexico.
PNM, the principal subsidiary of PNM Resources, serves about 450,000 natural gas
customers and 390,000 electric customers in New Mexico. The company also sells
power on the wholesale market in the Western U.S. PNM Resources stock is traded
primarily on the NYSE under the symbol PNM. For more information about our
company, see our web site at www.pnm.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
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Statements made in this filing and documents the Company files with the SEC that
relate to future events or the Company expectations, projections, estimates,
intentions, goals, targets and strategies are made pursuant to the Private
Securities Litigation Reform Act of 1995. You are cautioned that all
forward-looking statements are based upon current expectations and estimates and
we assume no obligation to update this information. Because actual results may
differ materially from those expressed or implied by the forward-looking
statements, the Company cautions you not to place undue reliance on these
statements. Many factors could cause actual results to differ, and will affect
the Company's future financial condition, cash flow and operating results. These
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factors include interest rates, weather, fuel costs, changes in supply and
demand in the market for electric power, wholesale power prices, market
liquidity, the competitive environment in the electric and natural gas
industries, the performance of generating units and transmission system, state
and federal regulatory and legislative decisions and actions, the outcome of
legal proceedings and the performance of state, regional and national economies.
For a detailed discussion of the important factors that affect the Company and
that could cause actual results to differ from those expressed or implied by our
forward-looking statements, please see "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in the Company's current and
future Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and the
Company's current and future Current Reports on Form 8-K, filed with the SEC.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PNM RESOURCES, INC. AND
PUBLIC SERVICE COMPANY OF NEW MEXICO
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(Registrant)
Date: October 27, 2003 /s/ Robin A. Lumney
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Robin A. Lumney
Vice President, Controller
and Chief Accounting Officer
(Officer duly authorized to sign this report)
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