CMS Energy Announces Third Quarter Earnings of $0.73 Per Share, Introduces 2020 Earnings Guidance and New $25 Billion 10-Year Capital Plan

JACKSON, Mich., Oct. 24, 2019 /PRNewswire/ -- CMS Energy announced today reported net income of $207 million or $0.73 per share, for the third quarter of 2019, compared to $169 million or $0.59 per share for the same quarter in 2018. For the first nine months of 2019, the company reported net income of $513 million or $1.81 per share, compared to $549 million or $1.94 for the comparable period in 2018. The key drivers of CMS Energy's year-to-date financial performance were unfavorable weather and storm activity, partially offset by investment recovery and favorable sales mix.

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CMS Energy reaffirmed its guidance for 2019 adjusted earnings of $2.47 - $2.51 per share (*See below for important information about non-GAAP measures) or 6 to 8 percent annual adjusted earnings per share growth. Additionally, CMS Energy introduced 2020 adjusted earnings per share guidance of $2.63 to $2.68, reflecting continued strong growth of 6 to 8 percent.

"The company's third quarter results confirm our commitment to finish the year strong both operationally and financially," said Patti Poppe, President and CEO of CMS Energy and Consumers Energy. "As we look to 2020, we will continue to focus on the triple bottom line of people, planet and profit."

CMS Energy noted several accomplishments during the quarter:

  • Received a gas rate case order, supporting $1.2 billion of gas infrastructure investment to improve safety and reliability
  • Issued a Request for Proposal to acquire 300 MW of solar projects as part of the Clean Energy Plan
  • Ranked #1 in J.D. Power Midwest Large Residential Gas Study
  • Committed to net-zero methane emissions by 2030 for our natural gas distribution system

CMS Energy CMS is a Michigan-based company that has an electric and natural gas utility, Consumers Energy, as its primary business. It also owns and operates independent power generation businesses.

CMS Energy will hold a webcast to discuss its 2019 third quarter results and provide a business and financial outlook on October 24 at 8:30 a.m. (EDT). To participate in the webcast, go to CMS Energy's homepage (cmsenergy.com) and select "Investor Meeting."

Important information for investors about non-GAAP measures and other disclosures.

*This news release contains non-Generally Accepted Accounting Principles (non-GAAP) measures, such as adjusted earnings. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, regulatory items from prior years, or other items detailed in the attached summary financial statements. Management views adjusted earnings as a key measure of the company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors. Internally, the company uses adjusted earnings to measure and assess performance. Because the company is not able to estimate the impact of specific line items, which have the potential to significantly impact, favorably or unfavorably, the company's reported earnings in future periods, the company is not providing reported earnings guidance nor is it providing a reconciliation for the comparable future period earnings. The company's adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for the reported earnings. All references to earnings per share are on a diluted basis.

This news release contains "forward-looking statements." The forward-looking statements are subject to risks and uncertainties that could cause CMS Energy's and Consumers Energy's results to differ materially. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in CMS Energy's and Consumers Energy's Securities and Exchange Commission filings. 

Investors and others should note that CMS Energy routinely posts important information on its website and considers the Investor Relations section, www.cmsenergy.com/investor-relations, a channel of distribution.

For more information on CMS Energy, please visit our website at cmsenergy.com. To sign up for email alert notifications, please visit the Investor Relations section of our website.

 

CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)







In Millions, Except Per Share Amounts





Three Months Ended



Nine Months Ended





9/30/19



9/30/18



9/30/19



9/30/18



























Operating revenue

$

1,546



$

1,599



$

5,050



$

5,044



























Operating expenses



1,195





1,305





4,122





4,132



























Operating Income



351





294





928





912



























Other income



31





22





81





73



























Interest charges



133





114





385





337



























Income Before Income Taxes



249





202





624





648



























Income tax expense



42





33





110





98



























Net Income



207





169





514





550



























Income attributable to noncontrolling interests



-





-





1





1



























Net Income Available to Common Stockholders

$

207



$

169



$

513



$

549





















































Basic Earnings Per Average Common Share

$

0.73



$

0.60



$

1.81



$

1.95

Diluted Earnings Per Average Common Share



0.73





0.59





1.81





1.94

 

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)







In Millions





As of





9/30/19



12/31/18

Assets















Current assets















Cash and cash equivalents



$

403





$

153

Restricted cash and cash equivalents





29







21

Other current assets





1,873







2,294

Total current assets





2,305







2,468

Non-current assets















Plant, property, and equipment





18,524







18,126

Other non-current assets





5,180







3,935

Total Assets



$

26,009





$

24,529



















Liabilities and Equity















Current liabilities (1)



$

1,091





$

1,531

Non-current liabilities (1)





6,729







6,429

Capitalization















Debt, capital leases, and financing obligation (excluding securitization debt) (2)















Debt, capital leases, and financing obligation (excluding non-recourse and securitization debt)





10,460







9,646

Non-recourse debt





2,471







1,854

Total debt, capital leases, and financing obligation (excluding securitization debt)





12,931







11,500

Noncontrolling interests





37







37

Common stockholders' equity





4,957







4,755

Total capitalization (excluding securitization debt)





17,925







16,292

Securitization debt (2)





264







277

Total Liabilities and Equity



$

26,009





$

24,529



















(1) Excludes debt, capital leases, and financing obligation.



















(2) Includes current and non-current portions.







































CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)























In Millions





Nine Months Ended





9/30/19



9/30/18



















Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts



$

175





$

204



















Net cash provided by operating activities





1,395







1,565

Net cash used in investing activities





(2,212)







(1,815)

Cash flows from operating and investing activities





(817)







(250)

Net cash provided by financing activities





1,075







412



















Total Cash Flows



$

258





$

162



















End of Period Cash and Cash Equivalents, Including Restricted Amounts



$

433





$

366

 

CMS ENERGY CORPORATION

Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income

(Unaudited)







In Millions, Except Per Share Amounts





Three Months Ended



Nine Months Ended





9/30/19



9/30/18



9/30/19



9/30/18



























Net Income Available to Common Stockholders

$

207



$

169



$

513



$

549

Reconciling items:























Other exclusions from adjusted earnings



1









1





1

Tax impact



(*)





(*)





(*)





(*)

Gain on assets previously sold



-





-





(*)





(4)

Tax impact



-





-









1



























Adjusted net income – non-GAAP

$

208



$

169



$

514



$

547



























Average Common Shares Outstanding























Basic



283.0





282.5





282.9





282.1

Diluted



284.6





283.2





284.2





282.8



























Basic Earnings Per Average Common Share























Reported net income per share

$

0.73



$

0.60



$

1.81



$

1.95

Reconciling items:























Other exclusions from adjusted earnings















Tax impact



(*)





(*)





(*)





(*)

Gain on assets previously sold



-





-





(*)





(0.01)

Tax impact



-





-



































Adjusted net income per share – non-GAAP

$

0.73



$

0.60



$

1.81



$

1.94



























Diluted Earnings Per Average Common Share























Reported net income per share

$

0.73



$

0.59



$

1.81



$

1.94

Reconciling items:























Other exclusions from adjusted earnings















Tax impact



(*)





(*)





(*)





(*)

Gain on assets previously sold



-





-





(*)





(0.01)

Tax impact



-





-



































Adjusted net income per share – non-GAAP

$

0.73



$

0.59



$

1.81



$

1.93



























*

Less than $0.5 million or $0.01 per share.

















































Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors.  Internally, the Company uses adjusted earnings to measure and assess performance.  Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, regulatory items from prior years, or other items detailed in these summary financial statements.  Adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.  

 

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SOURCE CMS Energy

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