CMS Energy Announces Strong 2023 Results for the 21st Consecutive Year and Raises 2024 Adjusted EPS Guidance
JACKSON, Mich., Feb. 1, 2024 /PRNewswire/ -- CMS Energy announced today reported earnings per share of $3.01 for 2023, compared to $2.85 per share for 2022. The company's adjusted earnings per share for 2023 were $3.11, compared to $2.89 per share for 2022. CMS Energy also announced the increase of its annual dividend by 11 cents per share to $2.06 for 2024.
CMS Energy raised its 2024 adjusted earnings guidance to $3.29 to $3.35 per share from $3.27 to $3.33 per share (*See below for important information about non-GAAP measures) and reaffirmed long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end.
"In a challenging year with unfavorable weather and significant storms, we responded and delivered for our customers, communities and investors," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. "I'm proud of the team's efforts in 2023 and our success positions CMS Energy well for the long-term."
CMS Energy (NYSE: CMS) is a Michigan-based energy provider featuring Consumers Energy as its primary business. It also owns and operates independent power generation businesses.
CMS Energy will hold a webcast to discuss its 2023 year-end results and provide a business and financial outlook on Thursday, February 1 at 9:30 a.m. (EST). To participate in the webcast, go to CMS Energy's homepage (cmsenergy.com) and select "Events and Presentations."
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. All references to net income refer to net income available to common stockholders and references to earnings per share are on a diluted basis. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, changes in accounting principles, voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments recognized in net income related to NorthStar Clean Energy's interest expense, or other items. 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.
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.
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CMS ENERGY CORPORATION
Consolidated Statements of Income
(Unaudited)
In Millions, Except Per Share Amounts
Three Months Ended Twelve Months Ended
12/31/23 12/31/22 12/31/23 12/31/22
Operating revenue $
1,950 $
2,278 $
7,462 $
8,596
Operating expenses 1,544 2,007 6,227 7,372
Operating Income 406 271 1,235 1,224
Other income 83 52 362 197
Interest charges 172 139 643 519
Income Before Income Taxes 317 184 954 902
Income tax expense 66 21 147 93
Income From Continuing Operations 251 163 807 809
Income from discontinued operations, net of tax 1 4
Net Income 251 163 808 813
Loss attributable to noncontrolling interests (58) (8) (79) (24)
Net Income Attributable to CMS Energy 309 171 887 837
Preferred stock dividends 3 3 10 10
Net Income Available to Common Stockholders $
306 $
168 $
877 $
827
Diluted Earnings Per Average Common Share
Income from continuing operations per average common share
available to common stockholders
$
1.05 $
0.58 $
3.01 $
2.84
Income from discontinued operations per average common share
available to common stockholders
- 0.01
Diluted earnings per average common share $
1.05 $
0.58 $
3.01 $
2.85
CMS ENERGY CORPORATION
Summarized Consolidated Balance Sheets
(Unaudited)
In Millions
As of
12/31/23 12/31/22
Assets
Current assets
Cash and cash equivalents $
227 $
164
Restricted cash and cash equivalents 21 18
Other current assets 2,591 3,251
Total current assets 2,839 3,433
Non-current assets
Plant, property, and equipment 25,072 22,713
Other non-current assets 5,606 5,207
Total Assets $
33,517 $
31,353
Liabilities and Equity
Current liabilities (1) $
1,822 $
1,866
Non-current liabilities (1) 7,927 7,583
Capitalization
Debt and finance leases (excluding securitization debt) (2) 14,856 14,139
Preferred stock and securities 224 224
Noncontrolling interests 581 580
Common stockholders' equity 7,320 6,791
Total capitalization (excluding securitization debt) 22,981 21,734
Securitization debt (2) 787 170
Total Liabilities and Equity $
33,517 $
31,353
(1)
Excludes debt and finance leases.
(2)
Includes current and non-current portions.
CMS ENERGY CORPORATION
Summarized Consolidated Statements of Cash Flows
(Unaudited)
In Millions
Twelve Months Ended
12/31/23 12/31/22
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts $
182 $
476
Net cash provided by operating activities 2,309 855
Net cash used in investing activities (3,386) (2,476)
Cash flows from operating and investing activities (1,077) (1,621)
Net cash provided by financing activities 1,143 1,327
Total Cash Flows $
66 $
(294)
End of Period Cash and Cash Equivalents, Including Restricted Amounts $
248 $
182
CMS ENERGY CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
(Unaudited)
In Millions, Except Per Share Amounts
Three Months Ended Twelve Months Ended
12/31/23 12/31/22 12/31/23 12/31/22
Net Income Available to Common Stockholders $
306 $
168 $
877 $
827
Reconciling items:
Disposal of discontinued operations (gain) loss * (1) (5)
Tax impact (*) * 1
Other exclusions from adjusted earnings** 3 9 9 8
Tax impact (1) (2) (3) (2)
Voluntary separation program * 1 33 12
Tax impact (*) (*) (8) (3)
Adjusted net income - non-GAAP $
308 $
176 $
907 $
838
Average Common Shares Outstanding - Diluted 292.7 290.1 291.7 290.0
Diluted Earnings Per Average Common Share
Reported net income per share $
1.05 $
0.58 $
3.01 $
2.85
Reconciling items:
Disposal of discontinued operations (gain) loss * (*) (0.01)
Tax impact (*) * *
Other exclusions from adjusted earnings** 0.01 0.03 0.03 0.03
Tax impact (0.01) (0.01) (0.01) (0.01)
Voluntary separation program * * 0.11 0.04
Tax impact (*) (*) (0.03) (0.01)
Adjusted net income per share - non-GAAP $
1.05 $
0.60 $
3.11 $
2.89
*
Less than $0.5 million or $0.01 per share.
** Includes restructuring costs, business optimization initiative, and unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest
expense.
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, business optimization initiative, changes in accounting principles,
voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense, or other items. The 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
