EX-12.1 9 pnm12312011ex121.htm EXHIBIT 12.1 PNM 12.31.2011 EX 12.1


 
Exhibit 12.1
 
PNM RESOURCES, INC. AND SUBSIDIARIES
Ratio of Earnings to Fixed Charges
(In thousands, except ratio)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
 
2011
 
2010
 
2009
 
2008
 
2007
 
Fixed charges, as defined by the Securities and Exchange Commission:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized
 
$
122,998

 
$
123,633

 
$
123,833

 
$
134,958

 
$
124,299

 
Amortization of debt premium, discount and expenses
 
3,695

 
4,627

 
5,430

 
6,386

 
6,566

 
Interest from discontinued operations (including capitalized interest)
 
—

 
—

 
1,027

 
13,758

 
12,546

 
Estimated interest factor of lease rental charges
 
6,665

 
6,888

 
7,034

 
7,894

 
8,804

 
Preferred dividend requirements of subsidiary
 
864

 
1,075

 
759

 
689

 
556

 
     Total Fixed Charges
 
$
134,222

 
$
136,223

 
$
138,083

 
$
163,685

 
$
152,771

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings, as defined by the Securities and Exchange Commission:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) from continuing operations before income taxes and non-controlling interest
 
$
321,469

 
$
(63,379
)
 
$
94,751

 
$
(388,381
)
 
$
63,112

 
(Earnings) loss of equity investee
 
—

 
15,223

 
30,145

 
29,687

 
(7,581
)
 
Earnings (loss) from continuing operations before income taxes, non-controlling interest, and investee earnings
 
321,469

 
(48,156
)
 
124,896

 
(358,694
)
 
55,531

 
Fixed charges as above
 
134,222

 
136,223

 
138,083

 
163,685

 
152,771

 
Interest capitalized
 
(2,697
)
 
(3,401
)
 
(7,743
)
 
(8,849
)
 
(10,740
)
 
Non-controlling interest in earnings of Valencia
 
(14,047
)
 
(13,563
)
 
(11,890
)
 
(7,179
)
 
—

 
Preferred dividend requirements of subsidiary
 
(864
)
 
(1,075
)
 
(759
)
 
(689
)
 
(556
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Available for Fixed Charges
 
$
438,083

 
$
70,028

 
$
242,587

 
$
(211,726
)
 
$
197,006

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
3.26

1 
0.51

2 
1.76

 
 N/M

3 
1.29

 
 
 
 
 
 
 
 
 
 
 
 
 
1 Earnings (loss) from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2011 includes a pre-tax loss of $21.4 million due to the write-off of regulatory disallowances at PNM and TNMP. If those losses were excluded, the Ratio of Earnings to Fixed Charges would have been 3.42.
 
 
 
 
 
 
 
 
 
 
 
 
 
2 The shortfall in the earnings available for fixed charges to achieve a ratio of earnings to fixed charges of 1.00 amounted to $66.2 million for the year ended December 31, 2010. Earnings (loss) from continuing operations before income taxes and non-controlling interest includes a pre-tax loss of $188.2 million due to the impairment of PNMR's investment in an equity investee. If that loss were excluded, the Ratio of Earnings to Fixed Charges would have been 1.90.
 
 
 
 
 
 
 
 
 
 
 
 
 
3 The ratio of earnings to fixed charges for the year ended December 31, 2008 is not meaningful since earnings available for fixed charges is negative. The shortfall in the earnings available to achieve a ratio of earnings to fixed charges of 1.00 amounted to $375.4 million for the year ended December 31, 2008.