CMS Energy Announces Strong 2023 Results for the 21st Consecutive Year and Raises 2024 Adjusted EPS Guidance

CMS ENERGY CORPORATION
Consolidated Statements of Income
(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Twelve Months Ended

12/31/23

12/31/22

12/31/23

12/31/22

Operating revenue

$

1,950

$

2,278

$

7,462

$

8,596

Operating expenses

1,544

2,007

6,227

7,372

Operating Income

406

271

1,235

1,224

Other income

83

52

362

197

Interest charges

172

139

643

519

Income Before Income Taxes

317

184

954

902

Income tax expense

66

21

147

93

Income From Continuing Operations

251

163

807

809

Income from discontinued operations, net of tax

-

-

1

4

Net Income

251

163

808

813

Loss attributable to noncontrolling interests

(58)

(8)

(79)

(24)

Net Income Attributable to CMS Energy

309

171

887

837

Preferred stock dividends

3

3

10

10

Net Income Available to Common Stockholders

$

306

$

168

$

877

$

827

Diluted Earnings Per Average Common Share

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

$

1.05

$

0.58

$

3.01

$

2.84

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

-

-

-

0.01

Diluted earnings per average common share

$

1.05

$

0.58

$

3.01

$

2.85

CMS ENERGY CORPORATION
Summarized Consolidated Balance Sheets
(Unaudited)

In Millions

As of

12/31/23

12/31/22

Assets

Current assets

Cash and cash equivalents

$

227

$

164

Restricted cash and cash equivalents

21

18

Other current assets

2,591

3,251

Total current assets

2,839

3,433

Non-current assets

Plant, property, and equipment

25,072

22,713

Other non-current assets

5,606

5,207

Total Assets

$

33,517

$

31,353

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,822

$

1,866

Non-current liabilities ⁽¹⁾

7,927

7,583

Capitalization

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

14,856

14,139

Preferred stock and securities

224

224

Noncontrolling interests

581

580

Common stockholders' equity

7,320

6,791

Total capitalization (excluding securitization debt)

22,981

21,734

Securitization debt ⁽²⁾

787

170

Total Liabilities and Equity

$

33,517

$

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

Twelve Months Ended

12/31/23

12/31/22

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

182

$

476

Net cash provided by operating activities 

2,309

855

Net cash used in investing activities

(3,386)

(2,476)

Cash flows from operating and investing activities

(1,077)

(1,621)

Net cash provided by financing activities

1,143

1,327

Total Cash Flows

$

66

$

(294)

End of Period Cash and Cash Equivalents, Including Restricted Amounts 

$

248

$

182

CMS ENERGY CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Twelve Months Ended

12/31/23

12/31/22

12/31/23

12/31/22

Net Income Available to Common Stockholders

$

306

$

168

$

877

$

827

Reconciling items:

Disposal of discontinued operations (gain) loss

* 

-

(1)

(5)

Tax impact

(*)

-

* 

1

Other exclusions from adjusted earnings**

3

9

9

8

Tax impact

(1)

(2)

(3)

(2)

Voluntary separation program

* 

1

33

12

Tax impact

(*)

(*)

(8)

(3)

Adjusted net income – non-GAAP

$

308

$

176

$

907

$

838

Average Common Shares Outstanding - Diluted

292.7

290.1

291.7

290.0

Diluted Earnings Per Average Common Share

Reported net income per share

$

1.05

$

0.58

$

3.01

$

2.85

Reconciling items:

Disposal of discontinued operations (gain) loss

* 

-

(*)

(0.01)

Tax impact

(*)

-

* 

* 

Other exclusions from adjusted earnings**

0.01

0.03

0.03

0.03

Tax impact

(0.01)

(0.01)

(0.01)

(0.01)

Voluntary separation program

* 

* 

0.11

0.04

Tax impact

(*)

(*)

(0.03)

(0.01)

Adjusted net income per share – non-GAAP

$

1.05

$

0.60

$

3.11

$

2.89

*

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.