CMS Energy Announces Second Quarter Earnings of $0.37 Per Share, or $0.40 Per Share on an Adjusted Basis, and Reaffirms Adjusted Earnings Guidance of $1.52 to $1.55 Per Share

JACKSON, Mich., July 26, 2012 /PRNewswire/ -- CMS Energy announced today reported net income of $100 million, or $0.37 per share, for the second quarter of 2012, compared to reported net income of $100 million, or $0.38 per share, for the same quarter of 2011. 

The results for the second quarter of 2011 included a one-time $32 million non-cash gain from tax law changes adopted last year and related to the company's non-utility operations.

The company's second quarter adjusted (non-Generally Accepted Accounting Principles) net income, which excludes the effects of one-time items, such as a voluntary employee separation program that took place during the period, was $108 million, or $0.40 per share, compared to $68 million, or $0.26 per share, for the same quarter in 2011.

For the first six months of the year, CMS Energy had reported net income of $167 million, or $0.62 per share, compared to $235 million, or $0.90 per share, for the first half of 2011.  On an adjusted basis, the company had income of $205 million, or $0.77 per share, for the first half of 2012 compared to $201 million, or $0.77 per share, for the same period in 2011.

The first half 2012 reported net income includes a one-time charge of $36 million, or $0.14 per share, reflecting the write-off of an electric decoupling regulatory asset at the company's Michigan utility, Consumers Energy.

CMS Energy reaffirmed its guidance for 2012 adjusted earnings of $1.52 to $1.55 per share, consistent with the company's long-term plan of 5 percent to 7 percent annual earnings per share growth.  The company's reported earnings could vary from adjusted earnings because of several factors, such as legacy issues associated with prior asset sales and regulatory items from prior years.  Because of those uncertainties, the company isn't providing reported earnings guidance.

John Russell, CMS Energy's president and chief executive officer, said the solid results reflect the strength of the company's overall plan, which is focused on investing $6.6 billion to serve the utility's customers and improve the environment while holding base rate increases at or below the rate of inflation for the next five years.

"We're working hard every day and aggressively managing our costs to provide customers with safe, reliable, and affordable energy service," Russell said, adding the company planned to reduce its operations and maintenance costs by 4 percent this year.

Adjusting the size of the company's workforce to match ongoing customer needs is a key component of the company's cost management, he said.  A successful voluntary separation program offered during the second quarter is trimming the company's workforce by 3 percent, pushing the company's overall workforce reduction since 2009 to 7 percent.

In reviewing recent major events, Russell noted:

  • High temperatures and Michigan's recovering economy pushed customer demand for electricity on July 17 to its highest level in Consumers Energy's 125-year history.
  • Consumers Energy and HCL America Inc. announced a collaboration to create the Michigan Technology Development Center in Jackson, Mich.  The center is expected to create 300 to 500 jobs in the next few years.
  • Turbine assembly continues at the company's first wind farm, the Lake Winds® Energy Park. So far, 22 of the 56 turbines for the 100-megawatt project have been erected and the facility is on schedule to begin serving customers later this year.

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 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, regulatory items from prior years, or other items detailed in the attached summary financial statements. Certain of these items have the potential to impact, favorably or unfavorably, the company's reported earnings in 2012.  The company is not able to estimate the impact of these matters and is not 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, 2011, and as updated in CMS Energy's and Consumers Energy's Forms 10-Q for the Quarter Ended March 31, 2012.

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

 

CMS Energy Corporation

SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME 

(In Millions, Except Per Share Amounts)











Second Quarter


First Half



(Unaudited)


(Unaudited)



2012


2011


2012


2011











Operating Revenue

$1,333


$1,364


$3,076


$3,419











Operating Expenses

1,073


1,157


2,628


2,906











Operating Income 

$   260


$   207


$   448


$   513











Other Income 

6


8


15


17











Interest Charges

98


104


197


209











Income before Income Taxes

$   168


$   111


$   266


$   321











Income Tax Expense 

67


10


105


87











Income from Continuing Operations

$   101


$   101


$   161


$   234











Income from Discontinued Operations

-


-


7


2











Net Income 

$   101


$   101


$   168


$   236











Income Attributable to Noncontrolling Interests

1


1


1


1











Net Income Available to Common Stockholders

$   100


$   100


$   167


$   235




















Income Per Share 









             Basic

$  0.38


$  0.40


$  0.64


$  0.94


             Diluted

0.37


0.38


0.62


0.90





























                CMS Energy Corporation

SUMMARIZED CONSOLIDATED BALANCE SHEETS

(In Millions)




June 30


December 31


2012


2011


(Unaudited)

Assets




Cash and cash equivalents

$           187


$         161

Restricted cash and cash equivalents

28


27

Other current assets

1,991


2,377

   Total current assets

$         2,206


$       2,565

Plant, property, and equipment

10,997


10,633

Other non-current assets

3,090


3,254

Total Assets

$       16,293


$     16,452









Liabilities and Equity




Current liabilities

$         1,154


$       1,281

Non-current liabilities 

4,953


4,835

Capitalization




   Debt and capital and finance leases (*)




      Long-term debt and capital leases (excluding non-recourse debt,




         finance leases and securitization debt)

6,421


6,602

      Non-recourse debt and finance leases

458


491

   Total debt and capital and finance leases

6,879


7,093

   Noncontrolling interests

44


44

   Common stockholders' equity

3,111


3,028

   Total capitalization

$       10,034


$     10,165

Securitization debt

152


171

Total Liabilities and Equity

$       16,293


$     16,452





(*) Current and long-term












                CMS Energy Corporation

SUMMARIZED STATEMENTS OF CASH FLOWS

(In Millions)


First Half


(Unaudited)


2012


2011









Beginning of Period Cash

$           161


$         247









Cash provided by operating activities

$           943


$       1,216

Cash used in investing activities

(610)


(471)

Cash flow from operating and investing activities

$           333


$         745

Cash used in financing activities

(307)


-

Changes in cash included in assets held for sale

-


2

Total Cash Flow

$             26


$         747









End of Period Cash

$           187


$         994









 

CMS Energy Corporation

SUMMARY OF CONSOLIDATED EARNINGS

Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income 

(In Millions, Except Per Share Amounts)












Second Quarter


First Half



(Unaudited)


(Unaudited)



2012


2011


2012


2011










Net Income Available to Common Stockholders

$      100


$      100


$      167


$      235










Reconciling Items:









Discontinued Operations Income

-


-


(7)


(2)











Electric Decoupling Court Order

-


-


36


-











Downsizing Program

7


-


7


-











Restructuring Costs

1


-


2


-











Tax Changes

-


(32)


-


(32)










Adjusted Net Income - Non-GAAP Basis

$      108


$        68


$      205


$      201



















Average Number of Common Shares Outstanding









Basic

261


250


258


250


Diluted

268


262


268


262










Basic Earnings Per Average Common Share

















Net Income Per Share as Reported

$     0.38


$     0.40


$     0.64


$     0.94










Reconciling Items:









Discontinued Operations Income

-


-


(0.03)


(0.01)











Electric Decoupling Court Order

-


-


0.14


-











Downsizing Program

0.03


-


0.03


-











Restructuring Costs

-


-


0.01


-











Tax Changes

-


(0.13)


-


(0.13)










Adjusted Net Income - Non-GAAP Basis

$     0.41


$     0.27


$     0.79


$     0.80



















Diluted Earnings Per Average Common Share

















Net Income Per Share as Reported

$     0.37


$     0.38


$     0.62


$     0.90










Reconciling Items:









Discontinued Operations Income

-


-


(0.03)


(0.01)











Electric Decoupling Court Order

-


-


0.14


-











Downsizing Program

0.03


-


0.03


-











Restructuring Costs

-


-


0.01


-











Tax Changes

-


(0.12)


-


(0.12)










Adjusted Net Income - Non-GAAP Basis

$     0.40


$     0.26


$     0.77


$     0.77



















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.










SOURCE CMS Energy



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