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.

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 (NYSE: 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