CMS ENERGY CORP - FORM 8-K - EX-99.1 - July 26, 2018

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Exhibit 99.1

 

 

CMS Energy Announces Second Quarter Reported Earnings of $0.49 Per Share; Reaffirms 2018 Earnings Guidance

 

JACKSON, Mich., July 26, 2018 — CMS Energy announced today reported net income of $139 million, or $0.49 per share, for the second quarter of 2018 compared to $92 million or $0.33 per share for the second quarter in 2017. The company reported net income of $380 million, or $1.35 per share, for the first half of 2018 compared to $291 million or $1.04 per share for the comparable period in 2017 largely due to more favorable weather and cost savings. The company’s adjusted earnings per share for the first half of 2018 were $1.34 and $0.48 for the second quarter.

 

CMS Energy reaffirmed its guidance for 2018 adjusted earnings of $2.30 - $2.34 per share (*See below for important information about non-GAAP measures) or 6 to 8 percent annual adjusted earnings per share growth.

 

“Our company’s efforts in the second quarter highlight our commitment to the triple bottom line of people, planet and profit,” said Patti Poppe, CEO and President of CMS Energy and Consumers Energy.

 

CMS Energy noted several accomplishments in the second quarter:

 

·                  Integrated Resource Plan. Consumers Energy filed its Integrated Resource Plan (IRP) with the Michigan Public Service Commission (MPSC) which detailed the company’s greater reliance on renewable energy and increased use of energy efficiency and customer demand management programs. The IRP outlines the path to reduce carbon emissions by more than 90 percent and eliminate the use of coal to generate electricity, while increasing renewable energy to more than 40 percent in alignment with CMS’ recently announced Clean Energy breakthrough goal.

 

·                  Wind Projects. CMS Energy announced the addition of two new wind energy parks to its renewable portfolio; Gratiot Farms and Northwest Ohio Wind. The

 


 

projects will produce 150 and 105 megawatts, respectively, of clean, renewable energy.

 

·                  Sustainability Loan. CMS Energy and its primary subsidiary, Consumers Energy (collectively “CMS”), announced the first syndicated sustainability-linked revolving credit facilities for a U.S. borrower.

 

·                  Most Trusted Brand by MSI. An independent national survey has named Consumers Energy as a “Most Trusted Brand;” ranking it as the top utility in the Midwest, according to business customers.

 

·                  Federal Tax Changes. CMS Energy reiterated its commitment to customers by passing along the savings, in monthly bill reductions, due to federal tax reform changes.

 

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 2018 second quarter results and provide a business and financial outlook on July 26 at 8:30 AM (EDT). To participate in the Webcast, go to CMS Energy’s home page (www.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 adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for the reported earnings.

 

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 www.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

 

Six Months Ended

 

 

 

6/30/18

 

6/30/17

 

6/30/18

 

6/30/17

 

 

 

 

 

 

 

 

 

 

 

Operating revenue

 

$

1,492

 

$

1,449

 

$

3,445

 

$

3,278

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

1,237

 

1,208

 

2,827

 

2,649

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

255

 

241

 

618

 

629

 

 

 

 

 

 

 

 

 

 

 

Other income

 

22

 

9

 

51

 

23

 

 

 

 

 

 

 

 

 

 

 

Interest charges

 

112

 

110

 

223

 

217

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

165

 

140

 

446

 

435

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

25

 

47

 

65

 

143

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

140

 

93

 

381

 

292

 

 

 

 

 

 

 

 

 

 

 

Income attributable to noncontrolling interests

 

1

 

1

 

1

 

1

 

 

 

 

 

 

 

 

 

 

 

Net Income Available to Common Stockholders

 

$

139

 

$

92

 

$

380

 

$

291

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Average Common Share

 

$

0.49

 

$

0.33

 

$

1.35

 

$

1.04

 

Diluted Earnings Per Average Common Share

 

0.49

 

0.33

 

1.35

 

1.04

 

 

1


 

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

 

 

 

In Millions

 

 

 

As of

 

 

 

6/30/18

 

12/31/17

 

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

477

 

$

182

 

Restricted cash and cash equivalents

 

17

 

17

 

Other current assets

 

1,792

 

2,276

 

Total current assets

 

2,286

 

2,475

 

Non-current assets

 

 

 

 

 

Plant, property, and equipment

 

17,237

 

16,761

 

Other non-current assets

 

3,789

 

3,814

 

Total Assets

 

$

23,312

 

$

23,050

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

Current liabilities (1)

 

$

1,319

 

$

1,511

 

Non-current liabilities (1)

 

6,715

 

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)

 

8,897

 

8,940

 

Non-recourse debt

 

1,382

 

1,245

 

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

 

10,279

 

10,185

 

Noncontrolling interests

 

37

 

37

 

Common stockholders’ equity

 

4,672

 

4,441

 

Total capitalization (excluding securitization debt)

 

14,988

 

14,663

 

Securitization debt (2)

 

290

 

302

 

Total Liabilities and Equity

 

$

23,312

 

$

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

 

 

 

Six Months Ended

 

 

 

6/30/18

 

6/30/17

 

 

 

 

 

 

 

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

 

$

204

 

$

257

 

 

 

 

 

 

 

Net cash provided by operating activities

 

1,416

 

1,119

 

Net cash used in investing activities

 

(1,008

)

(806

)

Cash flows from operating and investing activities

 

408

 

313

 

Net cash used by financing activities

 

(111

)

(129

)

 

 

 

 

 

 

Total Cash Flows

 

$

297

 

$

184

 

 

 

 

 

 

 

End of Period Cash and Cash Equivalents, Including Restricted Amounts

 

$

501

 

$

441

 

 

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

 

 

 

6/30/18

 

6/30/17

 

6/30/18

 

6/30/17

 

 

 

 

 

 

 

 

 

 

 

Net Income Available to Common Stockholders

 

$

139

 

$

92

 

$

380

 

$

291

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Discontinued operations loss

 

*

 

*

 

*

 

*

 

Restructuring costs and other

 

1

 

1

 

1

 

2

 

Tax impact

 

(*

)

(1

)

(*

)

(1

)

Gain on assets previously sold

 

(4

)

—

 

(4

)

—

 

Tax impact

 

1

 

—

 

1

 

—

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income — non-GAAP

 

$

137

 

$

92

 

$

378

 

$

292

 

 

 

 

 

 

 

 

 

 

 

Average Common Shares Outstanding

 

 

 

 

 

 

 

 

 

Basic

 

282.1

 

279.5

 

281.8

 

279.2

 

Diluted

 

282.6

 

280.3

 

282.4

 

280.1

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Average Common Share

 

 

 

 

 

 

 

 

 

Reported net income per share

 

$

0.49

 

$

0.33

 

$

1.35

 

$

1.04

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Discontinued operations loss

 

*

 

*

 

*

 

*

 

Restructuring costs and other

 

*

 

*

 

*

 

*

 

Tax impact

 

(*

)

(*

)

(*

)

(*

)

Gain on assets previously sold

 

(0.01

)

—

 

(0.01

)

—

 

Tax impact

 

*

 

—

 

*

 

—

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share — non-GAAP

 

$

0.48

 

$

0.33

 

$

1.34

 

$

1.04

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Average Common Share

 

 

 

 

 

 

 

 

 

Reported net income per share

 

$

0.49

 

$

0.33

 

$

1.35

 

$

1.04

 

Reconciling items:

 

 

 

 

 

 

 

 

 

Discontinued operations loss

 

*

 

*

 

*

 

*

 

Restructuring costs and other

 

*

 

*

 

*

 

*

 

Tax impact

 

(*

)

(*

)

(*

)

(*

)

Gain on assets previously sold

 

(0.01

)

—

 

(0.01

)

—

 

Tax impact

 

*

 

—

 

*

 

—

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income per share — non-GAAP

 

$

0.48

 

$

0.33

 

$

1.34

 

$

1.04

 

 

*                 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

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