Exhibit 99.1
CMS ENERGY ANNOUNCES THIRD QUARTER ADJUSTED EARNINGS
OF $0.53 PER SHARE AND REAFFIRMS
FULL-YEAR ADJUSTED EARNINGS GUIDANCE
JACKSON, Mich., Oct. 27, 2011 – CMS Energy announced today reported net income of $139 million, or $0.53 per share, for the third quarter of 2011 compared to reported net income of $134 million, or $0.53 per share, for the same quarter of 2010.
The company’s third quarter adjusted (non-Generally Accepted Accounting Principles) net income, which excludes the effects of one-time items, legacy issues associated with previously sold assets and certain other items, was $139 million, or $0.53 per share, compared to $132 million, or $0.52 per share, for the same quarter in 2010.
The third quarter results include service restoration costs at the company’s Michigan utility, Consumers Energy, from a series of unusually severe summer storms. So far, this year’s storm restoration costs are more than double the amount for the first nine months of 2010.
For the first nine months of 2011, CMS Energy had reported net income of $374 million, or $1.43 per share, compared to $299 million, or $1.19 per share, for the first nine months of 2010.
On an adjusted basis, the company had net income of $340 million, or $1.30 per share, for the first nine months of 2011 compared to $290 million, or $1.16 per share, for the same period in 2010.
CMS Energy reaffirmed its guidance for 2011 adjusted earnings of $1.44 per share. That’s an increase of about 6 percent from 2010 adjusted earnings and is consistent with the company’s long-term plan of 5 percent to 7 percent annual earnings growth.
John Russell, CMS Energy’s president and chief executive officer, said the strong results for the third quarter and the first nine months of the year reflect the solid execution of the company’s business plan. From 2012 through 2016, the company plans to invest about $6.6 billion in its utility operations to add value to customers and improve the environment. That makes Consumers Energy one of the largest investors in the state of Michigan.
“In December, Consumers Energy will celebrate 125 years of serving families and businesses in Michigan. The principles of our business are timeless: Provide our customers with safe, reliable and affordable energy service,” Russell said.
“We are improving the environment and delivering value to our customers. We work hard every day to aggressively control our costs. Our plan calls for base rate increases to be at or below the approximate rate of inflation for the next five years.”
In reviewing recent major events, Russell noted the company:
| • | Secured the permits needed to begin construction of its Lake Winds Energy Park, a 100-megawatt wind farm. The $232 million facility is scheduled to begin operation in 2012. |
| • | Reduced its renewable energy surcharge by $54 million a year, saving the typical residential customer about $22 per year, with a further reduction expected. |
| • | Helped customers save $67 million over the past two years with energy efficiency programs. |
| • | Signed major contracts for smart meter technology and the deployment of an advanced metering system for its 1.8 million electric customers. Smart meter installations are scheduled to begin in 2012. |
| • | Met the highest customer demand for electricity in the utility’s 125-year history on July 21. |
| • | Set a continuous generation record with a 389-day run by one of its coal-fired units, Campbell 2. The record run of the 44-year-old unit ended Sept. 30 when it was removed from service for a scheduled outage. |
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.
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CMS Energy provides financial results on both a reported (Generally Accepted Accounting Principles) and adjusted (non-GAAP) basis. Management views adjusted earnings as a key measure of the company’s present operating financial performance, unaffected by discontinued operations, asset sales, impairments, or other items detailed in the attached summary financial statements. Certain contingent obligations arising in connection with previously disposed assets or discontinued operations have the potential to impact, favorably or unfavorably, the company’s reported earnings in 2011. Reported earnings could vary because of several factors, such as legacy issues associated with prior asset sales. Because of those uncertainties, the company isn’t providing reported earnings guidance.
This news release contains “forward-looking statements” as defined in Rule 3b-6 of the Securities Exchange Act of 1934, as amended, Rule 175 of the Securities Act of 1933, as amended, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. They should be read in conjunction with “FORWARD-LOOKING STATEMENTS AND INFORMATION” and “RISK FACTORS” sections of CMS Energy’s
Form 10-K and Consumers Energy’s Form 10-K each for the Year Ended December 31, 2010 and as updated in CMS Energy’s and Consumers Energy’s Forms 10-Q for the Quarters Ended March 31, 2011 and June 30, 2011.
CMS Energy’s and Consumers Energy’s “FORWARD-LOOKING STATEMENTS AND INFORMATION” and “RISK FACTORS” sections are incorporated herein by reference and discuss important factors that could cause CMS Energy’s and Consumers Energy’s results to differ materially from those anticipated in such statements.
For more information on CMS Energy, please visit our web site at: www.cmsenergy.com
Media Contacts: Jeff Holyfield, 517/788-2394 or Dan Bishop, 517/788-2395
Investment Analyst Contact: CMS Energy Investor Relations, 517/788-2590
CMS Energy Corporation
SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
| Third Quarter (Unaudited) |
Nine Months (Unaudited) |
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| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Operating Revenue |
$ | 1,464 | $ | 1,443 | $ | 4,883 | $ | 4,750 | ||||||||
| Operating Expenses |
1,148 | 1,124 | 4,054 | 3,930 | ||||||||||||
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| Operating Income |
$ | 316 | $ | 319 | $ | 829 | $ | 820 | ||||||||
| Other Income |
9 | 16 | 26 | 46 | ||||||||||||
| Interest Charges |
104 | 102 | 313 | 324 | ||||||||||||
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| Income before Income Taxes |
$ | 221 | $ | 233 | $ | 542 | $ | 542 | ||||||||
| Income Tax Expense |
81 | 87 | 168 | 207 | ||||||||||||
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| Income from Continuing Operations |
$ | 140 | $ | 146 | $ | 374 | $ | 335 | ||||||||
| Income (Loss) from Discontinued Operations |
— | — | 2 | (17 | ) | |||||||||||
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| Net Income |
$ | 140 | $ | 146 | $ | 376 | $ | 318 | ||||||||
| Income Attributable to Noncontrolling Interests |
1 | 1 | 2 | 3 | ||||||||||||
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| Net Income Attributable to CMS Energy |
$ | 139 | $ | 145 | $ | 374 | $ | 315 | ||||||||
| Charge for Deferred Issuance Costs on Preferred Stock |
— | 8 | — | 8 | ||||||||||||
| Preferred Dividends |
— | 3 | — | 8 | ||||||||||||
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| Net Income Available to Common Stockholders |
$ | 139 | $ | 134 | $ | 374 | $ | 299 | ||||||||
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| Income Per Share |
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| Basic |
$ | 0.55 | $ | 0.58 | $ | 1.49 | $ | 1.30 | ||||||||
| Diluted |
0.53 | 0.53 | 1.43 | 1.19 | ||||||||||||
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CMS Energy Corporation
SUMMARIZED CONSOLIDATED BALANCE SHEETS
(In Millions)
| September 30 2011 |
December 31 2010 |
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| (Unaudited) | ||||||||
| Assets |
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| Cash and cash equivalents |
$ | 623 | $ | 247 | ||||
| Restricted cash and cash equivalents |
29 | 23 | ||||||
| Other current assets |
2,208 | 2,489 | ||||||
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| Total current assets |
$ | 2,860 | $ | 2,759 | ||||
| Plant, property and equipment |
10,410 | 10,069 | ||||||
| Non-current assets |
2,688 | 2,788 | ||||||
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| Total Assets |
$ | 15,958 | $ | 15,616 | ||||
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| Liabilities and Equity |
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| Current liabilities |
$ | 1,074 | $ | 1,271 | ||||
| Non-current liabilities |
4,449 | 4,122 | ||||||
| Capitalization |
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| Debt and capital and finance leases (*) |
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| Long-term debt and capital leases (excluding non-recourse debt, finance leases and securitization debt) |
6,716 | 6,786 | ||||||
| Non-recourse debt and finance leases |
451 | 392 | ||||||
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| Total debt and capital and finance leases |
7,167 | 7,178 | ||||||
| Noncontrolling interests |
44 | 44 | ||||||
| Common stockholders’ equity |
3,043 | 2,793 | ||||||
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| Total capitalization |
$ | 10,254 | $ | 10,015 | ||||
| Securitization debt |
181 | 208 | ||||||
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| Total Liabilities and Equity |
$ | 15,958 | $ | 15,616 | ||||
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| (*) | Current and long-term |
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(In Millions)
| Nine Months (Unaudited) |
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| 2011 | 2010 | |||||||
| Beginning of Period Cash |
$ | 247 | $ | 90 | ||||
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| Cash provided by operating activities |
$ | 1,195 | $ | 998 | ||||
| Cash used in investing activities |
(752 | ) | (726 | ) | ||||
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| Cash flow from operating and investing activities |
$ | 443 | $ | 272 | ||||
| Cash (used in) provided by financing activities |
(69 | ) | 335 | |||||
| Changes in cash included in assets held for sale |
2 | (1 | ) | |||||
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| Total Cash Flow |
$ | 376 | $ | 606 | ||||
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| End of Period Cash |
$ | 623 | $ | 696 | ||||
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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)
| Third Quarter (Unaudited) |
Nine Months (Unaudited) |
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| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Net Income Available to Common Stockholders |
$ | 139 | $ | 134 | $ | 374 | $ | 299 | ||||||||
| Reconciling Items: |
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| Discontinued Operations (Income) Loss |
— | — | (2 | ) | 17 | |||||||||||
| Downsizing Program |
— | — | — | 6 | ||||||||||||
| Tax Changes |
— | — | (32 | ) | — | |||||||||||
| Asset Sales Gains and Other |
— | (2 | ) | — | (32 | ) | ||||||||||
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| Adjusted Net Income - Non-GAAP Basis |
$ | 139 | $ | 132 | $ | 340 | $ | 290 | ||||||||
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| Average Number of Common Shares Outstanding |
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| Basic |
251 | 229 | 251 | 228 | ||||||||||||
| Diluted |
264 | 255 | 262 | 250 | ||||||||||||
| Basic Earnings Per Average Common Share |
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| Net Income Per Share as Reported |
$ | 0.55 | $ | 0.58 | $ | 1.49 | $ | 1.30 | ||||||||
| Reconciling Items: |
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| Discontinued Operations (Income) Loss |
— | — | (0.01 | ) | 0.08 | |||||||||||
| Downsizing Program |
— | — | — | 0.03 | ||||||||||||
| Tax Changes |
— | — | (0.13 | ) | — | |||||||||||
| Asset Sales Gains and Other |
— | (0.01 | ) | — | (0.14 | ) | ||||||||||
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| Adjusted Net Income - Non-GAAP Basis |
$ | 0.55 | $ | 0.57 | $ | 1.35 | $ | 1.27 | ||||||||
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| Diluted Earnings Per Average Common Share |
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| Net Income Per Share as Reported |
$ | 0.53 | $ | 0.53 | $ | 1.43 | $ | 1.19 | ||||||||
| Reconciling Items: |
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| Discontinued Operations (Income) Loss |
— | — | (0.01 | ) | 0.07 | |||||||||||
| Downsizing Program |
— | — | — | 0.03 | ||||||||||||
| Tax Changes |
— | — | (0.12 | ) | — | |||||||||||
| Asset Sales Gains and Other |
— | (0.01 | ) | — | (0.13 | ) | ||||||||||
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| Adjusted Net Income - Non-GAAP Basis |
$ | 0.53 | $ | 0.52 | $ | 1.30 | $ | 1.16 | ||||||||
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| Note: | Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company’s present operating financial performance, unaffected by discontinued operations, asset sales, impairments, or other items detailed in these summary financial statements. |
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