CMS Energy Announces Strong 2022 Results for the 20th Consecutive Year and Raises 2023 Adjusted EPS Guidance

Rhea-AI Summary

CMS Energy reported earnings per share of $2.85 for 2022, down from $4.66 in 2021. Adjusted EPS increased to $2.89 from $2.65 year-over-year. The company announced an 11-cent increase in the annual dividend to $1.95 for 2023. Additionally, CMS Energy raised its 2023 adjusted earnings guidance to a range of $3.06 to $3.12 per share and reaffirmed long-term adjusted EPS growth of 6% to 8%. CEO Garrick Rochow highlighted the company's strong performance and commitment to customers and investors. A webcast discussing these results is scheduled for February 2 at 9:30 a.m. EST.

Positive

• Adjusted EPS for 2022 increased to $2.89 from $2.65 in 2021.
• Annual dividend raised by 11 cents to $1.95 for 2023.
• Raised 2023 adjusted earnings guidance to $3.06-$3.12 per share.
• Long-term adjusted EPS growth reaffirmed at 6-8%.

Negative

• Reported EPS decreased to $2.85 in 2022 from $4.66 in 2021.

JACKSON, Mich., Feb. 2, 2023 /PRNewswire/ -- CMS Energy announced today reported earnings per share of $2.85 for 2022, compared to $4.66 per share for 2021. The company's adjusted earnings per share for 2022 were $2.89, compared to $2.65 for 2021. CMS Energy also announced the increase of its annual dividend by 11 cents per share to $1.95 for 2023.

CMS Energy raised its 2023 adjusted earnings guidance to $3.06 to $3.12 per share, from $3.05 to $3.11 per share* (*See below for important information about non-GAAP measures) and reaffirmed long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end of the adjusted EPS growth range.

"CMS Energy has delivered two decades of industry leading financial performance and our strong results in 2022 have positioned the company well for 2023," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. "Our commitment remains steadfast to our customers, communities and investors as we deliver across the triple bottom line."

CMS Energy (NYSE: CMS) is a Michigan-based energy provider featuring Consumers Energy as its primary business. It also owns and operates independent power generation businesses.

CMS Energy will hold a webcast to discuss its 2022 year-end results and provide a business and financial outlook on Thursday, February 2 at 9:30 a.m. (EST). To participate in the webcast, go to CMS Energy's homepage (cmsenergy.com) and select "Events and Presentations."

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. All references to net income refer to net income available to common stockholders and references to earnings per share are on a diluted basis. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, changes in accounting principles, 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. 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 company's 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 cmsenergy.com.
To sign up for email alert notifications, please visit the Investor Relations section of our website.

 

CMS ENERGY CORPORATION Consolidated Statements of Income (Unaudited)
		In Millions, Except Per Share Amounts
		Three Months Ended						Twelve Months Ended
		12/31/22			12/31/21			12/31/22			12/31/21
Operating revenue		$	2,278		$	2,033		$	8,596		$	7,329
Operating expenses			2,007			1,829			7,372			6,183
Operating Income			271			204			1,224			1,146
Other income			52			41			197			177
Interest charges			139			126			519			500
Income Before Income Taxes			184			119			902			823
Income tax expense			21			5			93			95
Income From Continuing Operations			163			114			809			728
Income from discontinued operations, net of tax			-			520			4			602
Net Income			163			634			813			1,330
Loss attributable to noncontrolling interests			(8)			(5)			(24)			(23)
Net Income Attributable to CMS Energy			171			639			837			1,353
Preferred stock dividends			3			2			10			5
Net Income Available to Common Stockholders		$	168		$	637		$	827		$	1,348
Diluted Earnings Per Average Common Share
Income from continuing operations per average common share     available to common stockholders
		$	0.58		$	0.40		$	2.84		$	2.58
Income from discontinued operations per average common share     available to common stockholders
			-			1.80			0.01			2.08
Diluted earnings per average common share		$	0.58		$	2.20		$	2.85		$	4.66

 

CMS ENERGY CORPORATION Summarized Consolidated Balance Sheets (Unaudited)
		In Millions
		As of
		12/31/22				12/31/21
Assets
Current assets
Cash and cash equivalents			$	164			$	452
Restricted cash and cash equivalents				18				24
Other current assets				3,251				2,151
Total current assets				3,433				2,627
Non-current assets
Plant, property, and equipment				22,713				22,352
Other non-current assets				5,207				3,774
Total Assets			$	31,353			$	28,753
Liabilities and Equity
Current liabilities (1)			$	1,866			$	1,822
Non-current liabilities (1)				7,583				7,269
Capitalization
Debt and finance leases (excluding securitization debt) (2)
Debt and finance leases (excluding non-recourse and securitization debt)				14,139				12,200
Non-recourse debt				-				76
Total debt and finance leases (excluding securitization debt)				14,139				12,276
Preferred stock and securities				224				224
Noncontrolling interests				580				557
Common stockholders' equity				6,791				6,407
Total capitalization (excluding securitization debt)				21,734				19,464
Securitization debt (2)				170				198
Total Liabilities and Equity			$	31,353			$	28,753

(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
		12/31/22				12/31/21
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts			$	476			$	185
Net cash provided by operating activities				855				1,819
Net cash used in investing activities				(2,476)				(1,233)
Cash flows from operating and investing activities				(1,621)				586
Net cash provided by (used in) financing activities				1,327				(295)
Total Cash Flows			$	(294)			$	291
End of Period Cash and Cash Equivalents, Including Restricted Amounts			$	182			$	476

 

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
		12/31/22			12/31/21			12/31/22			12/31/21
Net Income Available to Common Stockholders		$	168		$	637		$	827		$	1,348
Reconciling items:
Disposal of discontinued operations gain			-			(665)			(5)			(657)
Tax impact			-			145			1			143
Discontinued operations income			-			-			-			(115)
Tax impact			-			-			-			27
Other exclusions from adjusted earnings**			9			*			8			(1)
Tax impact			(2)			(*)			(2)			*
Loss on fleet impairment			-			29			-			29
Tax impact			-			(7)			-			(7)
Voluntary separation program			1			-			12			-
Tax impact			(*)			-			(3)			-
Adjusted net income – non-GAAP		$	176		$	139		$	838		$	767
Average Common Shares Outstanding - Diluted			290.1			289.7			290.0			289.5
Diluted Earnings Per Average Common Share
Reported net income per share		$	0.58		$	2.20		$	2.85		$	4.66
Reconciling items:
Disposal of discontinued operations gain			-			(2.30)			(0.01)			(2.27)
Tax impact			-			0.50			*			0.49
Discontinued operations income			-			-			-			(0.39)
Tax impact			-			-			-			0.09
Other exclusions from adjusted earnings**			0.03			*			0.03			(*)
Tax impact			(0.01)			(*)			(0.01)			*
Loss on fleet impairment			-			0.10			-			0.10
Tax impact			-			(0.03)			-			(0.03)
Voluntary separation program			*			-			0.04			-
Tax impact			(*)			-			(0.01)			-
Adjusted net income per share – non-GAAP		$	0.60		$	0.47		$	2.89		$	2.65

*

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, 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.

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SOURCE CMS Energy

FAQ

What was CMS Energy's earnings per share for 2022?

CMS Energy reported earnings per share of $2.85 for 2022.

How much did CMS Energy raise its dividend for 2023?

CMS Energy increased its annual dividend by 11 cents to $1.95 for 2023.

What is CMS Energy's adjusted earnings guidance for 2023?

CMS Energy raised its 2023 adjusted earnings guidance to $3.06 to $3.12 per share.

What was the adjusted EPS for CMS Energy in 2022?

CMS Energy's adjusted EPS for 2022 was $2.89.

What long-term growth rate did CMS Energy reaffirm?

CMS Energy reaffirmed a long-term adjusted EPS growth rate of 6% to 8%.