CMS Energy Announces First Quarter Earnings Results of $0.85 Per Share Reported and $0.86 Per Share Adjusted

JACKSON, Mich., April 27, 2020 /PRNewswire/ -- CMS Energy announced today reported net income of $243 million or $0.85 per share, for the first quarter of 2020, compared to $213 million or $0.75 per share for the same quarter in 2019. The company's adjusted earnings per share for the first quarter of 2020 were $245 million or $0.86 per share. The primary drivers of CMS Energy's quarterly financial performance were timely recovery of customer investments and cost management, partially offset by mild winter weather.

"Consumers Energy is focused on the safety and health of our co-workers, customers, and the communities we serve during these unprecedented times," said Patti Poppe, President and CEO of CMS Energy and Consumers Energy. "We are especially mindful of our duty to deliver essential services to those on the front line of the pandemic and we are working hard to deliver safe and reliable energy to Michigan's homes and hospitals."

As the ultimate impacts of the pandemic on Michigan's economy and our business remain uncertain, at this time CMS Energy is not changing guidance for 2020 adjusted earnings of $2.64 - $2.68* per share, as announced on January 30(th) (*See below for important information about non-GAAP measures). CMS Energy will discuss the financial risks and sensitivities related to COVID-19 in more detail during its earnings webcast on April 27.

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 2020 first quarter results and provide a business and financial outlook on April 27 at 9:00 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 net income refer to net income available to common stockholders and 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



                                                                    3/31/20            3/31/19






     Operating revenue                                                                        $
       1,864     $
       2,059





     Operating expenses                                                                            1,496          1,700





                 Operating Income                                                                     368            359





     Other income                                                                                     39             23





     Interest charges                                                                                137            121





                 Income Before Income Taxes                                                               270            261





     Income tax expense                                                                               27             48




                 Net Income Available to
                  Common Stockholders                                                            $
       243       $
       213







                 Basic Earnings Per Average
                  Common Share                                                                  $
       0.86      $
       0.75


                 Diluted Earnings Per
                  Average Common Share                                                               0.85           0.75

                                                                                                                      
            
                CMS ENERGY CORPORATION
                                                                                                                        Summarized Consolidated Balance Sheets
                                                                                                                                     (Unaudited)




                                                                                                                                                                                                   In Millions


                                                                                                                                                                                
     
            As of



                                                                                                                                                                                    3/31/20                          12/31/19




     
                Assets



     Current assets



     Cash and cash equivalents                                                                                                                                                                                   $
        834      $
         140



     Restricted cash and cash equivalents                                                                                                                                                                               27              17



     Other current assets                                                                                                                                                                                            1,956           2,174



     Total current assets                                                                                                                                                                                            2,817           2,331



     Non-current assets



     Plant, property, and equipment                                                                                                                                                                                 19,144          18,926



     Other non-current assets                                                                                                                                                                                        5,486           5,580



     
                Total Assets                                                                                                                                                                                $
        27,447   $
         26,837






     
                Liabilities and Equity



     Current liabilities (1)                                                                                                                                                                                   $
        1,219    $
         1,484



     Non-current liabilities (1)                                                                                                                                                                                     6,669           7,051



     Capitalization



     Debt, finance leases, and other financing (excluding securitization debt) (2)



     Debt, finance leases, and other financing (excluding non-recourse and securitization debt)                                                                                                                     11,617          10,518



     Non-recourse debt                                                                                                                                                                                               2,469           2,478



     Total debt, finance leases, and other financing (excluding securitization debt)                                                                                                                                14,086          12,996



     Noncontrolling interests                                                                                                                                                                                           37              37



     Common stockholders' equity                                                                                                                                                                                     5,185           5,018



     Total capitalization (excluding securitization debt)                                                                                                                                                           19,308          18,051



     Securitization debt (2)                                                                                                                                                                                           251             251



     
                Total Liabilities and Equity                                                                                                                                                                $
        27,447   $
         26,837






     
                (1)  
              
              Excludes debt, finance leases, and other financing.





     
                (2)  
              
              Includes current and non-current portions.






                                                                                                                      
            
                CMS ENERGY CORPORATION


                                                                                                                  
     
              Summarized Consolidated Statements of Cash Flows


                                                                                                                         
              
                (Unaudited)




                                                                                                                                                                                                   In Millions


                                                                                                                                                                                    Three Months Ended



                                                                                                                                                                                    3/31/20                           3/31/19






     
                Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts                                                                                                                    $
        157      $
         175





     Net cash provided by operating activities (3)                                                                                                                                                                     201             617



     Net cash used in investing activities                                                                                                                                                                           (559)          (675)



     Cash flows from operating and investing activities                                                                                                                                                              (358)           (58)



     Net cash provided by financing activities                                                                                                                                                                       1,062             150





     
                Total Cash Flows                                                                                                                                                                               $
        704       $
         92






     
                End of Period Cash and Cash Equivalents, Including Restricted Amounts                                                                                                                          $
        861      $
         267






     
                (3)  
              
              Includes the impact of a $531 million pension contribution in 2020.

                                                                                    
              
                CMS ENERGY CORPORATION
                                                                           Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
                                                                                                      (Unaudited)




                                                                                                                            In Millions, Except Per Share Amounts


                                                                                                                                               Three Months Ended



                                                                                                                                                     3/31/20           3/31/19





                   Net Income Available to Common Stockholders                                                                                                                  $
        243         $
         213



     
                Reconciling items:


      Restructuring costs                                      Other exclusions from
       and other                                                adjusted earnings                                                                                                          3         
          (*)



     Tax impact                                                                                                                                                 
     (*)                       
     *



     Tax reform                                                                                                                                                                      (9)



     Voluntary separation program                                                                                                                                                     11



     Tax impact                                                                                                                                                                      (3)





     Adjusted net income - non-GAAP                                                                                                                                            $
        245         $
         213






     
                Average Common Shares Outstanding



     Basic                                                                                                                                                                         283.3              282.8



     Diluted                                                                                                                                                                       285.2              283.6




                   Basic Earnings Per Average Common Share



     Reported net income per share                                                                                                                                            $
        0.86        $
         0.75



     
                Reconciling items:


      Restructuring costs                                      Other exclusions from
       and other                                                adjusted earnings                                                                                                       0.01         
          (*)



     Tax impact                                                                                                                                                 
     (*)                       
     *



     Tax reform                                                                                                                                                                   (0.03)



     Voluntary separation program                                                                                                                                                   0.04



     Tax impact                                                                                                                                                                   (0.01)





     Adjusted net income per share - non-GAAP                                                                                                                                 $
        0.87        $
         0.75





                   Diluted Earnings Per Average Common Share



     Reported net income per share                                                                                                                                            $
        0.85        $
         0.75



     
                Reconciling items:


      Restructuring costs                                      Other exclusions from
       and other                                                adjusted earnings                                                                                                       0.01         
          (*)



     Tax impact                                                                                                                                                 
     (*)                       
     *



     Tax reform                                                                                                                                                                   (0.03)



     Voluntary separation program                                                                                                                                                   0.04



     Tax impact                                                                                                                                                                   (0.01)





     Adjusted net income per share - non-GAAP                                                                                                                                 $
        0.86        $
         0.75





      *  
              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