CMS Energy Announces Second Quarter Results, Reaffirms 2023 Adjusted EPS Guidance

CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Six Months Ended

6/30/23

6/30/22

6/30/23

6/30/22

Operating revenue

$

1,555

$

1,920

$

3,839

$

4,294

Operating expenses

1,311

1,681

3,281

3,599

Operating Income

244

239

558

695

Other income

146

43

202

91

Interest charges

160

126

307

250

Income Before Income Taxes

230

156

453

536

Income tax expense

41

14

70

53

Income From Continuing Operations

189

142

383

483

Income from discontinued operations, net of tax

1

-

1

4

Net Income

190

142

384

487

Loss attributable to noncontrolling interests

(8)

(6)

(18)

(14)

Net Income Attributable to CMS Energy

198

148

402

501

Preferred stock dividends

3

3

5

5

Net Income Available to Common Stockholders

$

195

$

145

$

397

$

496

Diluted Earnings Per Average Common Share

Income from continuing operations per average common share
    available to common stockholders

$

0.67

$

0.50

$

1.36

$

1.70

Income from discontinued operations per average common share
    available to common stockholders

-

-

-

0.01

Diluted earnings per average common share

$

0.67

$

0.50

$

1.36

$

1.71

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

In Millions

As of

6/30/23

12/31/22

Assets

Current assets

Cash and cash equivalents

$

389

$

164

Restricted cash and cash equivalents

17

18

Other current assets

2,197

3,251

Total current assets

2,603

3,433

Non-current assets

Plant, property, and equipment

24,264

22,713

Other non-current assets

5,398

5,207

Total Assets

$

32,265

$

31,353

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,605

$

1,866

Non-current liabilities ⁽¹⁾

7,832

7,583

Capitalization

Debt and finance leases (excluding securitization debt) ⁽²⁾

14,966

14,139

Preferred stock and securities

224

224

Noncontrolling interests

561

580

Common stockholders' equity

6,921

6,791

Total capitalization (excluding securitization debt)

22,672

21,734

Securitization debt ⁽²⁾

156

170

Total Liabilities and Equity

$

32,265

$

31,353

⁽¹⁾  Excludes debt and finance leases.

⁽²⁾  Includes current and non-current portions.

CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)

In Millions

Six Months Ended

6/30/23

6/30/22

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

182

$

476

Net cash provided by operating activities

1,705

1,059

Net cash used in investing activities

(2,079)

(1,139)

Cash flows from operating and investing activities

(374)

(80)

Net cash provided by (used in) financing activities

598

(300)

Total Cash Flows

$

224

$

(380)

End of Period Cash and Cash Equivalents, Including Restricted Amounts 

$

406

$

96

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

6/30/23

6/30/22

6/30/23

6/30/22

Net Income Available to Common Stockholders

$

195

$

145

$

397

$

496

Reconciling items:

Disposal of discontinued operations gain

(1)

*

(1)

(5)

Tax impact

*

(*)

*

1

Other exclusions from adjusted earnings**

2

(*)

5

(1)

Tax impact

(*)

*

(1)

 *

Voluntary separation program

28

11

28

11

Tax impact

(7)

(3)

(7)

(3)

Adjusted net income – non-GAAP

$

217

$

153

$

421

$

499

Average Common Shares Outstanding - Diluted

291.3

290.1

291.2

290.0

Diluted Earnings Per Average Common Share

Reported net income per share

$

0.67

$

0.50

$

1.36

$

1.71

Reconciling items:

Disposal of discontinued operations gain

(*)

*

(*)

(0.01)

Tax impact

*

(*)

*

*

Other exclusions from adjusted earnings**

0.01

(*)

0.02

(*)

Tax impact

(*)

*

(*)

*

Voluntary separation program

0.09

0.04

0.09

0.04

Tax impact

(0.02)

(0.01)

(0.02)

(0.01)

Adjusted net income per share – non-GAAP

$

0.75

$

0.53

$

1.45

$

1.73

*

Less than $0.5 million or $0.01 per share.

**

Includes restructuring costs, business optimization initiative, and unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense.

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, business optimization initiative, changes in accounting principles, voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy's interest expense, or other items.  The adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.