EX-99.1 2 a19-3785_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

CMS Energy Announces 2018 Results and 2019 Adjusted EPS Guidance

 

JACKSON, Mich., Jan. 31, 2019 — CMS Energy announced today 2018 reported net income of $657 million or $2.32 per share, compared to reported net income of $460 million or $1.64 per share for 2017. CMS Energy announced $659 million of adjusted net income or adjusted earnings per share of $2.33 for 2018, toward the high end of guidance. On a reported basis, earnings per share grew 41 percent as 2017 federal tax reform related charges were not as substantial in 2018. On an adjusted earnings per share basis, the company delivered 7 percent growth.

 

Financial Results and Outlook

 

2018 Results

 

Amount

 

Reported EPS

 

$

2.32

 

Adjusted EPS

 

$

2.33

 

Annual Dividend

 

$

1.43

 

 

2019 Updates

 

Amount

 

Adjusted EPS Guidance Raised

 

$2.47 - $2.51*

 

Annual Dividend

 

$1.53

 

 

CMS Energy raised its guidance a penny per share for 2019 adjusted earnings to $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. Longer-term, adjusted earnings per share growth remains at 6 to 8 percent with a bias toward the midpoint.

 

“We are pleased with our 2018 results and continue to focus on the triple bottom line of serving people, planet and profit.” said Patti Poppe, President and CEO of CMS Energy and Consumers Energy.

 

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 2018 year-end results and provide a business and financial outlook on Jan. 31 at 8:30 A.M. (EST). 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.

 

Media Contacts: Katie Carey, 517/788-2395 or Brian Wheeler, 517/788-2394

 

Investment Analyst Contact: CMS Energy Investor Relations, 517/788-2590

 

 

CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)

 

 

 

In Millions, Except Per Share Amounts

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

12/31/18

 

12/31/17

 

12/31/18

 

12/31/17

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

$

1,829

 

$

1,778

 

$

6,873

 

$

6,583

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

1,579

 

1,399

 

5,711

 

5,245

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

250

 

379

 

1,162

 

1,338

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

(3

)

(47

)

70

 

(14

)

 

 

 

 

 

 

 

 

 

 

Interest charges

 

121

 

110

 

458

 

438

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

126

 

222

 

774

 

886

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

17

 

224

 

115

 

424

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

109

 

(2

)

659

 

462

 

 

 

 

 

 

 

 

 

 

 

Income attributable to noncontrolling interests

 

1

 

1

 

2

 

2

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Available to Common Stockholders

 

$

108

 

$

(3

)

$

657

 

$

460

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings (Loss) Per Average Common Share

 

$

0.38

 

$

(0.01

)

$

2.33

 

$

1.64

 

Diluted Earnings (Loss) Per Average Common Share

 

0.38

 

(0.01

)

2.32

 

1.64

 

 

1

 

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

 

 

 

In Millions

 

 

 

As of

 

 

 

12/31/18

 

12/31/17

 

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

153

 

$

182

 

Restricted cash and cash equivalents

 

21

 

17

 

Other current assets

 

2,294

 

2,276

 

Total current assets

 

2,468

 

2,475

 

Non-current assets

 

 

 

 

 

Plant, property, and equipment

 

18,126

 

16,761

 

Other non-current assets

 

3,935

 

3,814

 

Total Assets

 

$

24,529

 

$

23,050

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities (1)

 

$

1,531

 

$

1,511

 

Non-current liabilities (1)

 

6,429

 

6,574

 

Capitalization

 

 

 

 

 

Debt, capital leases, and financing obligation (excluding securitization debt) (2)

 

 

 

 

 

Debt, capital leases, and financing obligation (excluding non-recourse and securitization debt)

 

9,646

 

8,940

 

Non-recourse debt

 

1,854

 

1,245

 

Total debt, capital leases, and financing obligation (excluding securitization debt)

 

11,500

 

10,185

 

Noncontrolling interests

 

37

 

37

 

Common stockholders’ equity

 

4,755

 

4,441

 

Total capitalization (excluding securitization debt)

 

16,292

 

14,663

 

Securitization debt (2)

 

277

 

302

 

Total Liabilities and Equity

 

$

24,529

 

$

23,050

 

 

(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

 

 

 

Twelve Months Ended

 

 

 

12/31/18

 

12/31/17

 

 

 

 

 

 

 

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

 

$

204

 

$

257

 

 

 

 

 

 

 

Net cash provided by operating activities

 

1,703

 

1,705

 

Net cash used in investing activities

 

(2,606

)

(1,868

)

Cash flows from operating and investing activities

 

(903

)

(163

)

Net cash provided by financing activities

 

874

 

110

 

 

 

 

 

 

 

Total Cash Flows

 

$

(29

)

$

(53

)

 

 

 

 

 

 

End of Period Cash and Cash Equivalents, Including Restricted Amounts

 

$

175

 

$

204

 

 

2

 

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

 

 

 

12/31/18

 

12/31/17

 

12/31/18

 

12/31/17

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Available to Common Stockholders

 

$

108

 

$

(3

)

$

657

 

$

460

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Discontinued operations (income) loss

 

(*

)

*

 

(*

)

*

 

Restructuring costs and other exclusions from adjusted earnings

 

8

 

1

 

9

 

4

 

Tax impact

 

(*

)

(1

)

(*

)

(2

)

Gain on assets previously sold

 

—

 

—

 

(4

)

—

 

Tax impact

 

—

 

—

 

1

 

—

 

Tax reform

 

(4

)

148

 

(4

)

148

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income — non-GAAP

 

$

112

 

$

145

 

$

659

 

$

610

 

 

 

 

 

 

 

 

 

 

 

Average Common Shares Outstanding

 

 

 

 

 

 

 

 

 

Basic

 

282.6

 

280.8

 

282.2

 

280.0

 

Diluted

 

283.3

 

280.8

 

282.9

 

280.8

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings (Loss) Per Average Common Share

 

 

 

 

 

 

 

 

 

Reported net income (loss) per share

 

$

0.38

 

$

(0.01

)

$

2.33

 

$

1.64

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Discontinued operations (income) loss

 

(*

)

*

 

(*

)

*

 

Restructuring costs and other exclusions from adjusted earnings

 

0.03

 

*

 

0.03

 

0.01

 

Tax impact

 

(*

)

(*

)

(*

)

(*

)

Gain on assets previously sold

 

—

 

—

 

(0.01

)

—

 

Tax impact

 

—

 

—

 

*

 

—

 

Tax reform

 

(0.02

)

0.52

 

(0.02

)

0.52

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share — non-GAAP

 

$

0.39

 

$

0.51

 

$

2.33

 

$

2.17

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Average Common Share

 

 

 

 

 

 

 

 

 

Reported net income (loss) per share

 

$

0.38

 

$

(0.01

)

$

2.32

 

$

1.64

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Discontinued operations (income) loss

 

(*

)

*

 

(*

)

*

 

Restructuring costs and other exclusions from adjusted earnings

 

0.03

 

*

 

0.03

 

0.01

 

Tax impact

 

(*

)

(*

)

(*

)

(*

)

Gain on assets previously sold

 

—

 

—

 

(0.01

)

—

 

Tax impact

 

—

 

—

 

*

 

—

 

Tax reform

 

(0.01

)

0.52

 

(0.01

)

0.52

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share — non-GAAP

 

$

0.40

 

$

0.51

 

$

2.33

 

$

2.17

 

 

*  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.

 

3