UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITES EXCHANGE ACT OF 1934
Date of Report (Date of earliest events reported) May 1, 2000
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April 19, 2000
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PUBLIC SERVICE COMPANY OF NEW MEXICO
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(Exact name of registrant as specified in its charter)
New Mexico Commission 85-00019030
--------------------------- File Number 1-6986 ----------------------
(State or Other Jurisdiction ------ (I.R.S. Employer
of Incorporation) Identification) Number)
Alvarado Square, Albuquerque, New Mexico 87158
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(Address of principal executive offices) (Zip Code)
(505) 241-2700
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year,
if changed since last report)
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Item 5. Other Event
The following is the Company's press release announcing the first quarter
earnings.
PNM Reports First Quarter 2000 Earnings
ALBUQUERQUE, NM, April 19, 2000 -- PNM, Public Service Company of New Mexico
(NYSE:PNM), today announced earnings for the quarter ended March 31, 2000, of
$22.0 million, or 55 cents per share on a fully diluted basis, compared with
earnings of $26.7 million or 63 cents per share on a fully diluted basis for the
first quarter 1999.
Net earnings from ongoing operations on a fully diluted basis totaled 55 cents
per share, unchanged from first quarter 1999. First quarter 1999 earnings
included a one-time gain of 8 cents per share (reflecting the cumulative effect
of a change in accounting principle effective January 1, 1999). There were no
non-recurring gains or losses recorded during the first quarter 2000.
"We continue to record substantial increases in revenues and sales on the
wholesale side of our business," said PNM President Jeff Sterba. "However, lower
retail electric rates reduced revenues in the electric utility compared to the
same period last year."
PNM total operating revenues of $321.3 million for the quarter were up $48.5
million or 17.8 percent from $272.8 million in the comparable period in 1999.
Electric operating revenues rose 22.7 percent to $226.4 million for the quarter,
up $42.0 million from $184.4 million in the comparable period last year.
Wholesale revenues were up $49.5 million or 97.4 percent to $100.3 million for
the quarter, compared to $50.8 million in the same period in 1999. In terms of
megawatt-hours (MWh) sold, PNM wholesale sales increased 71.4 percent in the
first three months of 2000 compared to the same period in the previous year.
Retail electric revenues totaled $121.4 million in the most recent quarter, down
$7.0 million or about 5.5 percent from $128.4 million in the first quarter 1999.
PNM's new, lower rates, which took effect in the third quarter of 1999, reduced
retail electric revenues by about $11.7 million in the first quarter 2000
compared to first quarter 1999.
Fuel and purchased power expense increased 76.8 percent, from $62.2 million in
the first quarter 1999 to $109.9 million in the first quarter 2000, reflecting
the increased wholesale business. Electric gross margin (revenues less the cost
of fuel and purchased power) declined from $122.3 million in the first quarter
of 1999 to $116.5 million in the first quarter of 2000.
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Gas revenues rose $9.7 million or 11.4 percent to $94.5 million for the first
quarter 2000. Gas gross margin (gas operating revenues less the cost of gas
purchased for resale) was $36.7 million in the first quarter of 2000, compared
to $36.6 million in the first quarter 1999. New Mexico temperatures were warmer
than normal during the first quarter of this year, but not as warm as the first
three months of 1999. Heating degree days (a measure of the variation in daily
mean temperature below 65 degrees Fahrenheit) totaled 1,840 in Albuquerque
during the first quarter, 398 fewer than normal but 77 more than recorded in the
first three months of 1999.
As the result of the repurchase of nearly 2 million shares by the company over
the past 12 months, the number of shares of PNM common stock outstanding has
been reduced from 41,439,783 as of March 31, 1999, to 39,535,699 shares as of
March 31, 2000.
PNM operates a combined electric and gas utility serving approximately 1.3
million people in New Mexico and sells power on the wholesale market. Avistar, a
wholly-owned subsidiary of PNM, operates an advanced meter servicing business in
California and Nevada, offers energy and water management solutions for
government and institutional clients in the Southwest, and is assisting
e-commerce provider AMDAX.com in launching an Internet-based energy auction
system. PNM stock is traded primarily on the NYSE under the symbol PNM.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PUBLIC SERVICE COMPANY OF NEW MEXICO
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(Registrant)
Date: May 1, 2000 /s/ John R. Loyack
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John R. Loyack
Vice President, Corporate Controller
and Chief Accounting Officer
(Officer duly authorized to sign this report)
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