CMS Energy Announces First Quarter Earnings Results of $1.21 Per Share, Reaffirms 2021 Guidance

CMS ENERGY CORPORATION
Consolidated Statements of Income
(Unaudited)

3/31/21

3/31/20

$

2,083

$

1,864

Operating expenses

1,598

1,496

485

368

Other income

44

39

Interest charges

136

137

Income Before Income Taxes

393

270

Income tax expense

51

27

Net Income

342

243

Loss attributable to noncontrolling interests

-

Net Income Available to Common Stockholders

$

349

$

243

Basic Earnings Per Average Common Share

$

1.21

$

0.86

Diluted Earnings Per Average Common Share

1.21

0.85

CMS ENERGY CORPORATION
Summarized Consolidated Balance Sheets
(Unaudited)

In Millions

As of

3/31/21

12/31/20

Assets

Current assets

Cash and cash equivalents

$

496

$

168

Restricted cash and cash equivalents

28

17

Other current assets

1,989

2,219

Total current assets

2,513

2,404

Non-current assets

Plant, property, and equipment

21,207

21,039

Other non-current assets

6,003

6,223

Total Assets

$

29,723

$

29,666

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,379

$

1,568

Non-current liabilities ⁽¹⁾

6,924

6,825

Capitalization

Debt, finance leases, and other financing (excluding securitization debt) ⁽²⁾

Debt, finance leases, and other financing (excluding non-recourse and securitization debt)

12,080

12,083

Non-recourse debt

2,813

2,888

Total debt, finance leases, and other financing (excluding securitization debt)

14,893

14,971

Noncontrolling interests

575

581

Common stockholders' equity

5,727

5,496

Total capitalization (excluding securitization debt)

21,195

21,048

Securitization debt ⁽²⁾

225

225

Total Liabilities and Equity

$

29,723

$

29,666

⁽¹⁾

Excludes debt, finance leases, and other financing.

⁽²⁾

Includes current and non-current portions.

CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)

In Millions

Three Months Ended

3/31/21

3/31/20

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

185

$

157

Net cash provided by operating activities ⁽³⁾

832

201

Net cash used in investing activities

(283)

(559)

Cash flows from operating and investing activities

549

(358)

Net cash provided by (used in) financing activities

(210)

1,062

Total Cash Flows

$

339

$

704

End of Period Cash and Cash Equivalents, Including Restricted Amounts

$

524

$

861

⁽³⁾

Includes the impact of a $531 million pension contribution in 2020.

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

In Millions, Except Per Share Amounts

Three Months Ended

3/31/21

3/31/20

Net Income Available to Common Stockholders

$

349

$

243

Reconciling items:

Other exclusions from adjusted earnings**

(1)

3

Tax impact

* 

(*)

Tax reform

-

(9)

Voluntary separation program

-

11

Tax impact

-

(3)

Adjusted net income – non-GAAP

$

348

$

245

Average Common Shares Outstanding

Basic

288.6

283.3

Diluted

289.1

285.2

Basic Earnings Per Average Common Share

Reported net income per share

$

1.21

$

0.86

Reconciling items:

Other exclusions from adjusted earnings**

(*)

0.01

Tax impact

* 

(*)

Tax reform

-

(0.03)

Voluntary separation program

-

0.04

Tax impact

-

(0.01)

Adjusted net income per share – non-GAAP

$

1.21

$

0.87

Diluted Earnings Per Average Common Share

Reported net income per share

$

1.21

$

0.85

Reconciling items:

Other exclusions from adjusted earnings**

(*)

0.01

Tax impact

* 

(*)

Tax reform

-

(0.03)

Voluntary separation program

-

0.04

Tax impact

-

(0.01)

Adjusted net income per share – non-GAAP

$

1.21

$

0.86

*

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, changes in accounting principles, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses, recognized in net income, from mark-to-market adjustments related to CMS Enterprises' 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.