EX-99.1 2 a19-13290_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

CMS Energy Announces Second Quarter Earnings of $0.33 Per Share; Reaffirms 2019 Earnings Guidance

 

JACKSON, Mich., July 25, 2019 — CMS Energy announced today reported net income of $93 million or $0.33 per share, for the second quarter of 2019, compared to $139 million or $0.49 per share for the same quarter in 2018. The company reported net income of $306 million, or $1.08 per share, for the first half of 2019 compared to $380 million or $1.35 per share for the comparable period in 2018. The key drivers of CMS’ year-to-date financial performance were mild weather and storm activity.

 

CMS Energy reaffirmed its guidance for 2019 adjusted earnings of $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.

 

“CMS Energy’s strong commitment to our triple bottom line of people, planet and profit is reflected in our company’s financial results for the first six months of 2019,” said Patti Poppe, President and CEO of CMS Energy and Consumers Energy. “A major step forward for the company this quarter was the approval of our Integrated Resource Plan (IRP), which established our company and the state of Michigan as national clean energy leaders.”

 

CMS Energy noted several accomplishments in the second quarter:

 

·                  IRP SETTLEMENT APPROVAL: The IRP puts Consumers Energy on a path to eliminate coal, reduce carbon emissions by over 90 percent, and meet customers’ future electricity capacity needs with 90 percent clean energy resources by 2040. The Michigan Public Service Commission approved the plan in June, which also had support from customers, environmental groups, the MPSC’s technical staff, and the Michigan Attorney General.

 

·                  ELECTRIC VEHICLE CHARGING AND REBATE PROGRAM LAUNCH: In June, we announced PowerMIDrive, a multi-year program designed to make it easier for owners of electric vehicles to charge their vehicles when and where they want.

 

 

·                  GAS AUTOMATIC METER READING (AMR) INSTALLATION COMPLETE: We have now completed the deployment of gas AMR technology for our standalone gas customers. In total, we upgraded 1.1 million gas meters with communication modules on existing meters allowing us to read the meters remotely from service vehicles leading to an improved customer experience.

 

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 2019 second quarter results and provide a business and financial outlook on July 25 at 8:30 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 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

 

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

 

Six Months Ended

 

 

 

6/30/19

 

6/30/18

 

6/30/19

 

6/30/18

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

$

1,445

 

$

1,492

 

$

3,504

 

$

3,445

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

1,227

 

1,237

 

2,927

 

2,827

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

218

 

255

 

577

 

618

 

 

 

 

 

 

 

 

 

 

 

Other income

 

27

 

22

 

50

 

51

 

 

 

 

 

 

 

 

 

 

 

Interest charges

 

131

 

112

 

252

 

223

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

114

 

165

 

375

 

446

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

20

 

25

 

68

 

65

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

94

 

140

 

307

 

381

 

 

 

 

 

 

 

 

 

 

 

Income attributable to noncontrolling interests

 

1

 

1

 

1

 

1

 

 

 

 

 

 

 

 

 

 

 

Net Income Available to Common Stockholders

 

$

93

 

$

139

 

$

306

 

$

380

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Average Common Share

 

$

0.33

 

$

0.49

 

$

1.08

 

$

1.35

 

Diluted Earnings Per Average Common Share

 

0.33

 

0.49

 

1.08

 

1.35

 

 

1

 

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

 

 

 

In Millions

 

 

 

As of

 

 

 

6/30/19

 

12/31/18

 

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

312

 

$

153

 

Restricted cash and cash equivalents

 

22

 

21

 

Other current assets

 

1,920

 

2,294

 

Total current assets

 

2,254

 

2,468

 

Non-current assets

 

 

 

 

 

Plant, property, and equipment

 

18,106

 

18,126

 

Other non-current assets

 

4,932

 

3,935

 

Total Assets

 

$

25,292

 

$

24,529

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities (1)

 

$

1,309

 

$

1,531

 

Non-current liabilities (1)

 

6,696

 

6,429

 

Capitalization

 

 

 

 

 

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

 

 

 

 

 

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

 

9,913

 

9,646

 

Non-recourse debt

 

2,222

 

1,854

 

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

 

12,135

 

11,500

 

Noncontrolling interests

 

37

 

37

 

Common stockholders’ equity

 

4,851

 

4,755

 

Total capitalization (excluding securitization debt)

 

17,023

 

16,292

 

Securitization debt (2)

 

264

 

277

 

Total Liabilities and Equity

 

$

25,292

 

$

24,529

 

 

(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

 

 

 

Six Months Ended

 

 

 

6/30/19

 

6/30/18

 

 

 

 

 

 

 

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

 

$

175

 

$

204

 

 

 

 

 

 

 

Net cash provided by operating activities

 

1,185

 

1,416

 

Net cash used in investing activities

 

(1,410

)

(1,008

)

Cash flows from operating and investing activities

 

(225

)

408

 

Net cash provided by (used in) financing activities

 

384

 

(111

)

 

 

 

 

 

 

Total Cash Flows

 

$

159

 

$

297

 

 

 

 

 

 

 

End of Period Cash and Cash Equivalents, Including Restricted Amounts

 

$

334

 

$

501

 

 

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

 

Six Months Ended

 

 

 

6/30/19

 

6/30/18

 

6/30/19

 

6/30/18

 

 

 

 

 

 

 

 

 

 

 

Net Income Available to Common Stockholders

 

$

93

 

$

139

 

$

306

 

$

380

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Other exclusions from adjusted earnings

 

*

 

1

 

*

 

1

 

Tax impact

 

(*

)

(*

)

(*

)

(*

)

Gain on assets previously sold

 

—

 

(4

)

(*

)

(4

)

Tax impact

 

—

 

1

 

*

 

1

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income — non-GAAP

 

$

93

 

$

137

 

$

306

 

$

378

 

 

 

 

 

 

 

 

 

 

 

Average Common Shares Outstanding

 

 

 

 

 

 

 

 

 

Basic

 

282.9

 

282.1

 

282.9

 

281.8

 

Diluted

 

284.0

 

282.6

 

283.8

 

282.4

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Average Common Share

 

 

 

 

 

 

 

 

 

Reported net income per share

 

$

0.33

 

$

0.49

 

$

1.08

 

$

1.35

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Other exclusions from adjusted earnings

 

*

 

*

 

*

 

*

 

Tax impact

 

(*

)

(*

)

(*

)

(*

)

Gain on assets previously sold

 

—

 

(0.01

)

(*

)

(0.01

)

Tax impact

 

—

 

*

 

*

 

*

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share — non-GAAP

 

$

0.33

 

$

0.48

 

$

1.08

 

$

1.34

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Average Common Share

 

 

 

 

 

 

 

 

 

Reported net income per share

 

$

0.33

 

$

0.49

 

$

1.08

 

$

1.35

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Other exclusions from adjusted earnings

 

*

 

*

 

*

 

*

 

Tax impact

 

(*

)

(*

)

(*

)

(*

)

Gain on assets previously sold

 

—

 

(0.01

)

(*

)

(0.01

)

Tax impact

 

—

 

*

 

*

 

*

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share — non-GAAP

 

$

0.33

 

$

0.48

 

$

1.08

 

$

1.34

 

 

*   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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