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| 8-K - FORM 8-K - CMS ENERGY CORP | d616338d8k.htm |
Exhibit 99.1
CMS ENERGY ANNOUNCES THIRD QUARTER EARNINGS OF $0.46 PER SHARE;
OCT. 24 ANALYST DAY TO BE WEBCAST AT 3 PM (EDT)
JACKSON, Mich., Oct. 23, 2013 – CMS Energy announced today reported net income of $126 million, or $0.46 per share, for the third quarter of 2013 and $350 million, or $1.29 per share, for the first nine months of the year. Adjusted (non-Generally Accepted Accounting Principles) net income for the third quarter and first nine months was the same as the reported amounts.
For the first nine months of 2013, CMS Energy continued to implement its strategy of focusing on customer service, reducing costs, enhancing reliability, and investing to help strengthen Michigan’s economy.
“Customers remain our primary focus as we implement measures to provide safe, reliable and affordable service,” said John Russell, CMS Energy’s president and chief executive officer. “Our plan is to avoid electric and gas base rate increases through 2014, reduce our costs and provide full support to our customers’ growth and expansion efforts.”
In reviewing recent major events, Russell cited completion of a $175 million natural gas system upgrade at its Ray Compressor Station, implementation of an historic agreement with the Utility Workers Union of America to transition safety and operational training to the union, and publication of the Company’s first Accountability Report.
CMS Energy will conduct a 90-minute webcast for investors on Thursday, Oct. 24 at 3 p.m. (EDT), which will include presentations by John Russell, chief financial officer Tom Webb, and other members of the management team.
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 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 company’s 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 company's reported earnings in future periods. Because the company is not able to estimate the impact of these matters, the company is not providing a reconciliation to the comparable future period reported earnings.
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 Energy’s and Consumers Energy’s 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 Energy’s Form 10-K and Consumers Energy’s Form 10-K each for the year ended December 31, 2012 and as updated in CMS Energy’s and Consumers Energy’s Forms 10-Q.
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: 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)
| Third Quarter | Nine Months | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Operating Revenue |
$ | 1,445 | $ | 1,507 | $ | 4,830 | $ | 4,583 | ||||||||
| Operating Expenses |
1,128 | 1,164 | 3,952 | 3,792 | ||||||||||||
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| Operating Income |
$ | 317 | $ | 343 | $ | 878 | $ | 791 | ||||||||
| Other Income |
— | — | 13 | 15 | ||||||||||||
| Interest Charges |
99 | 96 | 299 | 293 | ||||||||||||
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| Income before Income Taxes |
$ | 218 | $ | 247 | $ | 592 | $ | 513 | ||||||||
| Income Tax Expense |
91 | 98 | 240 | 203 | ||||||||||||
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| Income from Continuing Operations |
$ | 127 | $ | 149 | $ | 352 | $ | 310 | ||||||||
| Income from Discontinued Operations |
— | — | — | 7 | ||||||||||||
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| Net Income |
$ | 127 | $ | 149 | $ | 352 | $ | 317 | ||||||||
| Income Attributable to Noncontrolling Interests |
1 | 1 | 2 | 2 | ||||||||||||
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| Net Income Available to Common Stockholders |
$ | 126 | $ | 148 | $ | 350 | $ | 315 | ||||||||
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| Income Per Share |
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| Basic |
$ | 0.48 | $ | 0.56 | $ | 1.32 | $ | 1.21 | ||||||||
| Diluted |
0.46 | 0.55 | 1.29 | 1.17 | ||||||||||||
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CMS Energy Corporation
SUMMARIZED CONSOLIDATED BALANCE SHEETS
(In Millions)
| September 30 | December 31 | |||||||
| 2013 | 2012 | |||||||
| (Unaudited) | ||||||||
| Assets |
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| Cash and cash equivalents |
$ | 260 | $ | 93 | ||||
| Restricted cash and cash equivalents |
32 | 29 | ||||||
| Other current assets |
2,109 | 2,300 | ||||||
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| Total current assets |
$ | 2,401 | $ | 2,422 | ||||
| Plant, property, and equipment |
12,154 | 11,551 | ||||||
| Other non-current assets |
2,431 | 3,158 | ||||||
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| Total Assets |
$ | 16,986 | $ | 17,131 | ||||
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| Liabilities and Equity |
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| Current liabilities |
$ | 932 | $ | 1,146 | ||||
| Non-current liabilities |
4,860 | 5,233 | ||||||
| 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) |
7,083 | 6,854 | ||||||
| Non-recourse debt and finance leases |
575 | 527 | ||||||
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| Total debt and capital and finance leases |
7,658 | 7,381 | ||||||
| Noncontrolling interests |
37 | 44 | ||||||
| Common stockholders’ equity |
3,396 | 3,194 | ||||||
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| Total capitalization |
$ | 11,091 | $ | 10,619 | ||||
| Securitization debt |
103 | 133 | ||||||
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| Total Liabilities and Equity |
$ | 16,986 | $ | 17,131 | ||||
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(*) Current and long-term
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(In Millions)
| Nine Months | ||||||||
| (Unaudited) | ||||||||
| 2013 | 2012 | |||||||
| Beginning of Period Cash |
$ | 93 | $ | 161 | ||||
| Cash provided by operating activities |
$ | 1,118 | $ | 934 | ||||
| Cash used in investing activities |
(1,004 | ) | (938 | ) | ||||
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| Cash flow from operating and investing activities |
$ | 114 | $ | (4 | ) | |||
| Cash provided by (used in) financing activities |
53 | (29 | ) | |||||
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| Total Cash Flow |
$ | 167 | $ | (33 | ) | |||
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| End of Period Cash |
$ | 260 | $ | 128 | ||||
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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 | Nine Months | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Net Income Available to Common Stockholders |
$ | 126 | $ | 148 | $ | 350 | $ | 315 | ||||||||
| Reconciling Items: |
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| Discontinued Operations Income |
— | — | — | (7 | ) | |||||||||||
| Electric Decoupling Court Order |
— | — | — | 36 | ||||||||||||
| Downsizing Program |
— | — | — | 7 | ||||||||||||
| Restructuring Costs and Other |
— | (3 | ) | — | (1 | ) | ||||||||||
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| Adjusted Net Income - Non-GAAP Basis |
$ | 126 | $ | 145 | $ | 350 | $ | 350 | ||||||||
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| Average Number of Common Shares Outstanding |
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| Basic |
265 | 263 | 264 | 260 | ||||||||||||
| Diluted |
272 | 269 | 272 | 268 | ||||||||||||
| Basic Earnings Per Average Common Share |
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| Net Income Per Share as Reported |
$ | 0.48 | $ | 0.56 | $ | 1.32 | $ | 1.21 | ||||||||
| Reconciling Items: |
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| Discontinued Operations Income |
— | — | — | (0.03 | ) | |||||||||||
| Electric Decoupling Court Order |
— | — | — | 0.14 | ||||||||||||
| Downsizing Program |
— | — | — | 0.03 | ||||||||||||
| Restructuring Costs and Other |
— | (0.01 | ) | — | — | |||||||||||
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| Adjusted Net Income - Non-GAAP Basis |
$ | 0.48 | $ | 0.55 | $ | 1.32 | $ | 1.35 | ||||||||
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| Diluted Earnings Per Average Common Share |
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| Net Income Per Share as Reported |
$ | 0.46 | $ | 0.55 | $ | 1.29 | $ | 1.17 | ||||||||
| Reconciling Items: |
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| Discontinued Operations Income |
— | — | — | (0.03 | ) | |||||||||||
| Electric Decoupling Court Order |
— | — | — | 0.14 | ||||||||||||
| Downsizing Program |
— | — | — | 0.03 | ||||||||||||
| Restructuring Costs and Other |
— | (0.01 | ) | — | — | |||||||||||
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| Adjusted Net Income - Non-GAAP Basis |
$ | 0.46 | $ | 0.54 | $ | 1.29 | $ | 1.31 | ||||||||
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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, regulatory items from prior years, or other items detailed in these summary financial statements. |
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