CMS Energy Announces Strong Third Quarter Results, Raises 2022 Adjusted EPS, Introduces Preliminary 2023 Guidance

CMS ENERGY CORPORATION
Consolidated Statements of Income
(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Nine Months Ended

9/30/22

9/30/21

9/30/22

9/30/21

Operating revenue

$

2,024

$

1,725

$

6,318

$

5,296

Operating expenses

1,766

1,465

5,365

4,354

Operating Income

258

260

953

942

Other income

54

44

145

136

Interest charges

130

125

380

374

Income Before Income Taxes

182

179

718

704

Income tax expense

19

26

72

90

Income From Continuing Operations

163

153

646

614

Income from discontinued operations, net of tax

–

30

4

82

Net Income

163

183

650

696

Loss attributable to noncontrolling interests

(2)

(6)

(16)

(18)

Net Income Attributable to CMS Energy

165

189

666

714

Preferred stock dividends

2

3

7

3

Net Income Available to Common Stockholders

$

163

$

186

$

659

$

711

Diluted Earnings Per Average Common Share

Income from continuing operations per average common share
    available to common stockholders

$

0.56

$

0.54

$

2.26

$

2.18

Income from discontinued operations per average common share
    available to common stockholders

–

0.10

0.01

0.28

Diluted earnings per average common share

$

0.56

$

0.64

$

2.27

$

2.46

CMS ENERGY CORPORATION
Summarized Consolidated Balance Sheets
(Unaudited)

In Millions

As of

9/30/22

12/31/21

Assets

Current assets

Cash and cash equivalents

$

168

$

452

Restricted cash and cash equivalents

27

24

Other current assets

2,831

2,151

Total current assets

3,026

2,627

Non-current assets

Plant, property, and equipment

22,340

22,352

Other non-current assets

5,006

3,774

Total Assets

$

30,372

$

28,753

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,488

$

1,822

Non-current liabilities ⁽¹⁾

7,625

7,269

Capitalization

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

Debt, finance leases, and other financing (excluding non-recourse and securitization debt)

13,571

12,200

Non-recourse debt

–

76

Total debt, finance leases, and other financing (excluding securitization debt)

13,571

12,276

Preferred stock and securities

224

224

Noncontrolling interests

591

557

Common stockholders’ equity

6,689

6,407

Total capitalization (excluding securitization debt)

21,075

19,464

Securitization debt ⁽²⁾

184

198

Total Liabilities and Equity

$

30,372

$

28,753

⁽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

Nine Months Ended

9/30/22

9/30/21

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

476

$

185

Net cash provided by operating activities 

667

1,483

Net cash used in investing activities

(1,808)

(1,460)

Cash flows from operating and investing activities

23

Net cash provided by financing activities

860

28

Total Cash Flows

$

(281)

$

51

End of Period Cash and Cash Equivalents, Including Restricted Amounts 

$

195

$

236

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

9/30/22

9/30/21

9/30/22

9/30/21

Net Income Available to Common Stockholders

$

163

$

186

$

659

$

711

Reconciling items:

Disposal of discontinued operations (gain) loss

–

3

(5)

8

Tax impact

–

(1)

1

(2)

Discontinued operations income

–

(42)

–

(115)

Tax impact

–

10

–

27

Other exclusions from adjusted earnings**

* 

(*)

(1)

(1)

Tax impact

(*)

* 

 * 

 * 

Voluntary separation program

(*)

–

11

–

Tax impact

* 

–

(3)

–

Adjusted net income – non-GAAP

$

163

$

156

$

662

$

628

Average Common Shares Outstanding

Diluted

290.1

289.6

290.0

289.4

Diluted Earnings Per Average Common Share

Reported net income per share

$

0.56

$

0.64

$

2.27

$

2.46

Reconciling items:

Disposal of discontinued operations (gain) loss

–

0.01

(0.01)

0.03

Tax impact

–

(*)

* 

(0.01)

Discontinued operations income

–

(0.14)

–

(0.39)

Tax impact

–

0.03

–

0.09

Other exclusions from adjusted earnings**

* 

(*)

(*)

(*)

Tax impact

(*)

* 

* 

* 

Voluntary separation program

(*)

–

0.04

–

Tax impact

* 

–

(0.01)

–

Adjusted net income per share – non-GAAP

$

0.56

$

0.54

$

2.29

$

2.18

*   
Less than $0.5 million or $0.01 per share.

** Includes
restructuring costs and unrealized gains or losses, recognized in net income, from mark-to-market adjustments 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, changes in accounting principles, 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.