UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) October 23, 2014
Commission |
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Registrant; State of Incorporation; |
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IRS Employer |
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1-9513 |
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CMS ENERGY CORPORATION (A Michigan Corporation) One Energy Plaza Jackson, Michigan 49201 (517) 788-0550 |
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38-2726431 |
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1-5611 |
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CONSUMERS ENERGY COMPANY (A Michigan Corporation) One Energy Plaza Jackson, Michigan 49201 (517) 788-0550 |
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38-0442310 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On October 23, 2014, CMS Energy Corporation (CMS Energy) issued a News Release, in which it announced its results for the third quarter of 2014. Attached as Exhibit 99.1 to this report and incorporated herein by reference is a copy of the CMS Energy News Release, furnished as a part of this report.
Exhibit 99.1 contains certain financial measures that are considered non-GAAP financial measures as defined in Securities and Exchange Commission rules and contains a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States.
Item 7.01. Regulation FD Disclosure.
The information set forth in the CMS Energy News Release dated October 23, 2014, attached as Exhibit 99.1, is incorporated by reference in response to this Item 7.01.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933. Investors and others should note that CMS Energy and Consumers Energy Company post important financial information using the investor relations section of the CMS Energy website, www.cmsenergy.com and Securities and Exchange Commission filings.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 CMS Energy News Release dated October 23, 2014
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
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CMS ENERGY CORPORATION |
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Dated: October 23, 2014 |
By: |
/s/ Thomas J. Webb |
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Thomas J. Webb |
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Executive Vice President and |
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Chief Financial Officer |
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CONSUMERS ENERGY COMPANY |
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Dated: October 23, 2014 |
By: |
/s/ Thomas J. Webb |
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Thomas J. Webb |
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Executive Vice President and |
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Chief Financial Officer |
Exhibit 99.1
CMS ENERGY ANNOUNCES THIRD QUARTER EARNINGS OF $0.34 PER SHARE; CONTINUES HIGH END ADJUSTED EARNINGS GUIDANCE OF $1.76 TO $1.78 PER SHARE UP 6%-7%
JACKSON, Mich., October 23, 2014 CMS Energy announced today reported net income of $94 million, or $0.34 per share, for the third quarter of 2014 and $381 million, or $1.39 per share, for the first nine months of the year. Adjusted (non-Generally Accepted Accounting Principles) earnings per share for the third quarter were $103 million, or $0.37 per share, and for the first nine months were $390 million, or $1.42 per share.
CMS Energy reaffirmed its 2014 adjusted earnings per share guidance of $1.76 to $1.78, consistent with the companys long-term plan of 5 percent to 7 percent annual earnings per share growth.
Were proud to maintain our high end guidance, a strong indication of the successful execution of our long-term business strategy and customer-focused operations, said John Russell, CMS Energys president and chief executive officer.
For the first nine months of 2014, CMS Energy emphasized ongoing improvements in customer satisfaction, cost reductions and innovative approaches to grow Michigans economy.
Russell noted that CMS Energys principal subsidiary, Consumers Energy, is implementing a comprehensive approach to improving quality in all aspects of its statewide operations with a specific focus on customers.
Our employees are demonstrating commitment to continuous improvement in our customers first-time experience. This comprehensive, data-driven quality improvement program is working. It is strengthening our ties to customers and the communities we serve, Russell said.
As part of its commitment to help grow Michigans economy, Consumers Energy proposed electric rates that would reduce costs for large, energy-intensive business customers, which are also major employers. If approved, electric rates would be reduced for these customers on average by about five percent, with larger, energy-intensive industrial customers seeing reductions of up to 15 percent.
In other quarterly highlights, the Federal Energy Regulatory Commission approved the Companys previously-announced $155 million acquisition of a 540 megawatt clean burning natural gas plant in its hometown of Jackson, Michigan. The acquisition is scheduled for
completion in late 2015 and the plant will join the Companys generating fleet in the first quarter of 2016.
At the Companys natural gas utility, the new 24-mile, 36 inch, $88 million Southwest Michigan natural gas pipeline began operations following a year-long project that created 300 construction jobs. The pipeline completes a 90 mile dual gas transmission pipeline corridor, increasing value, reliability and safety for the companys 1.7 million gas customers.
Also, CMS Energy implemented the environmental remedies required at Bay Harbor, and provided, through a three cent per share charge, for an updated estimate of ongoing operating and maintenance costs over the next twenty years.
Finally, Consumers Energy was ranked number one for sustainability among its peers in a worldwide survey by Sustainalytics, a leading global research firm.
CMS Energy (NYSE: CMS) is a Michigan-based company that has an electric and natural gas utility, Consumers Energy, as its primary business and also owns and operates independent power generation businesses.
# # #
CMS Energy will hold a webcast to discuss its 2014 third quarter results and provide a business and financial outlook on October 23 at 8:30 AM (EDT). To participate in the webcast, go to CMS Energys home page (www.cmsenergy.com) and select Investor Meeting.
CMS Energy provides historical financial results on both a reported (Generally Accepted Accounting Principles) and adjusted (non-GAAP) basis and provides forward-looking guidance on an adjusted basis. Management views adjusted earnings as a key measure of the companys present operating financial performance, unaffected by discontinued operations, asset sales, impairments, regulatory items from prior years, or other items detailed in the attached summary financial statements. These items have the potential to impact, favorably or unfavorably, the companys reported earnings in future periods.
This news release contains forward-looking statements as defined in Rule 3b-6 of the Securities Exchange Act of 1934, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in CMS Energys and Consumers Energys Securities and Exchange Commission filings. Forward-looking statements should be read in conjunction with FORWARD-LOOKING STATEMENTS AND INFORMATION and RISK FACTORS sections of CMS Energys Form 10-K and Consumers Energys Form 10-K each for the year ended December 31, 2013 and as updated in CMS Energys and Consumers Energys subsequent Forms 10-Q.
CMS Energys and Consumers Energys FORWARD-LOOKING STATEMENTS AND INFORMATION and RISK FACTORS sections are incorporated herein by reference and discuss important factors that could cause CMS Energys and Consumers Energys results to differ materially from those anticipated in such statements.
Investors and others should note that CMS Energy and Consumers Energy post important financial information using the investor relations section of the CMS Energy website, www.cmsenergy.com and Securities and Exchange Commission filings.
For more information on CMS Energy, please visit our web site at: www.cmsenergy.com
Media Contacts: Dan Bishop, 517/788-2395 or Brian Wheeler, 517/788-2394
Investment Analyst Contact: CMS Energy Investor Relations, 517/788-2590
CMS Energy Corporation
SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
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Third Quarter |
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Nine Months |
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(Unaudited) |
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(Unaudited) |
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2014 |
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2013 |
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2014 |
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2013 |
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Operating Revenue |
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$ |
1,430 |
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$ |
1,445 |
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$ |
5,421 |
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$ |
4,830 |
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Operating Expenses |
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1,194 |
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1,128 |
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4,542 |
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3,952 |
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Operating Income |
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$ |
236 |
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$ |
317 |
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$ |
879 |
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$ |
878 |
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Other Income |
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6 |
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1 |
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13 |
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Interest Charges |
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101 |
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99 |
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303 |
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299 |
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Income before Income Taxes |
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$ |
141 |
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$ |
218 |
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$ |
577 |
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$ |
592 |
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Income Tax Expense |
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47 |
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91 |
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195 |
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240 |
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Net Income |
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$ |
94 |
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$ |
127 |
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$ |
382 |
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$ |
352 |
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Income Attributable to Noncontrolling Interests |
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1 |
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1 |
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2 |
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Net Income Available to Common Stockholders |
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$ |
94 |
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$ |
126 |
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$ |
381 |
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$ |
350 |
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Income Per Share |
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Basic |
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$ |
0.34 |
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$ |
0.48 |
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$ |
1.41 |
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$ |
1.32 |
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Diluted |
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0.34 |
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0.46 |
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1.39 |
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1.29 |
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CMS Energy Corporation
SUMMARIZED CONSOLIDATED BALANCE SHEETS
(In Millions)
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September 30 |
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December 31 |
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2014 |
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2013 |
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(Unaudited) |
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Assets |
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Cash and cash equivalents |
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$ |
493 |
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$ |
172 |
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Restricted cash and cash equivalents |
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37 |
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32 |
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Other current assets |
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2,204 |
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2,322 |
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Total current assets |
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$ |
2,734 |
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$ |
2,526 |
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Plant, property, and equipment |
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13,045 |
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12,246 |
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Other non-current assets |
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2,602 |
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2,644 |
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Total Assets |
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$ |
18,381 |
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$ |
17,416 |
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Liabilities and Equity |
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Current liabilities |
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$ |
958 |
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$ |
1,213 |
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Non-current liabilities |
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4,855 |
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4,741 |
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Capitalization |
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Debt, capital leases, and financing obligation (*) |
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Debt, capital leases, and financing obligation (excluding non-recourse and securitization debt) |
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7,624 |
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7,227 |
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Non-recourse debt |
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798 |
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652 |
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Total debt, capital leases, and financing obligation |
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8,422 |
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7,879 |
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Noncontrolling interests |
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37 |
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37 |
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Common stockholders equity |
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3,670 |
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3,454 |
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Total capitalization |
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$ |
12,129 |
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$ |
11,370 |
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Securitization debt |
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439 |
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92 |
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Total Liabilities and Equity |
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$ |
18,381 |
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$ |
17,416 |
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(*) Current and long-term
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(In Millions)
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Nine Months |
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(Unaudited) |
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2014 |
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2013 |
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Beginning of Period Cash |
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$ |
172 |
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$ |
93 |
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Cash provided by operating activities |
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$ |
962 |
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$ |
1,118 |
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Cash used in investing activities |
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(1,347 |
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(1,004 |
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Cash flow from operating and investing activities |
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$ |
(385 |
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$ |
114 |
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Cash provided by financing activities |
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706 |
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53 |
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Total Cash Flow |
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$ |
321 |
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$ |
167 |
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End of Period Cash |
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$ |
493 |
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$ |
260 |
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CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income
(In Millions, Except Per Share Amounts)
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Third Quarter |
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Nine Months |
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(Unaudited) |
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(Unaudited) |
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2014 |
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2013 |
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2014 |
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2013 |
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Net Income Available to Common Stockholders |
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$ |
94 |
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$ |
126 |
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$ |
381 |
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$ |
350 |
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Reconciling Items: |
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Discontinued Operations (Income) Loss |
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* |
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* |
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(* |
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* |
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Restructuring Costs and Other |
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9 |
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* |
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9 |
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* |
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Adjusted Net Income - Non-GAAP Basis |
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$ |
103 |
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$ |
126 |
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$ |
390 |
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$ |
350 |
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Average Number of Common Shares Outstanding |
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Basic |
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274 |
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265 |
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269 |
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264 |
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Diluted |
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275 |
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272 |
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274 |
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272 |
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Basic Earnings Per Average Common Share |
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Net Income Per Share as Reported |
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$ |
0.34 |
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$ |
0.48 |
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$ |
1.41 |
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$ |
1.32 |
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Reconciling Items: |
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Discontinued Operations (Income) Loss |
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* |
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* |
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(* |
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* |
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Restructuring Costs and Other |
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0.03 |
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* |
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0.03 |
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* |
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Adjusted Net Income - Non-GAAP Basis |
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$ |
0.37 |
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$ |
0.48 |
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$ |
1.44 |
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$ |
1.32 |
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Diluted Earnings Per Average Common Share |
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Net Income Per Share as Reported |
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$ |
0.34 |
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$ |
0.46 |
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$ |
1.39 |
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$ |
1.29 |
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Reconciling Items: |
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Discontinued Operations (Income) Loss |
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* |
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* |
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(* |
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* |
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Restructuring Costs and Other |
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0.03 |
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* |
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0.03 |
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* |
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Adjusted Net Income - Non-GAAP Basis |
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$ |
0.37 |
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$ |
0.46 |
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$ |
1.42 |
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$ |
1.29 |
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Note: |
Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Companys present operating financial performance, unaffected by discontinued operations, asset sales, impairments, regulatory items from prior years, or other items detailed in these summary financial statements. |
* Less than $500 thousand or $0.01 per share.