CMS Energy Announces Strong First Quarter Results, Reaffirms 2022 Adjusted EPS Guidance

Rhea-AI Summary

CMS Energy reported first quarter earnings per share of $1.21, consistent with the same period last year. Adjusted EPS rose to $1.20 from $1.09 year-over-year. The company reaffirmed its 2022 adjusted earnings guidance of $2.85 to $2.89 per share and aims for long-term adjusted EPS growth of 6 to 8 percent. CMS Energy emphasized its commitment to eliminating coal generation by 2025 and achieving net zero carbon emissions by 2040.

Positive

• Adjusted EPS increased from $1.09 to $1.20 year-over-year.
• Reaffirmed 2022 adjusted EPS guidance of $2.85 to $2.89.
• Long-term adjusted EPS growth forecast remains at 6 to 8 percent.

Negative

• None.

JACKSON, Mich., May 3, 2022 /PRNewswire/ -- CMS Energy announced today reported earnings per share of $1.21 for the first quarter of 2022, compared to $1.21 per share for the same quarter in 2021. The company's adjusted earnings per share for the first quarter of 2022 were $1.20, compared to $1.09 per share for the same quarter in 2021.

CMS Energy reaffirmed its 2022 adjusted earnings guidance of $2.85 to $2.89* 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.

"The settlement agreement recently filed for our 2021 Integrated Resource Plan strengthens our financial outlook and serves as a proof point of our plan for net zero carbon emissions by 2040 in our electric business. As one of the first utilities in the country to eliminate coal generation by 2025, we are leading the clean energy transformation," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy.

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 first quarter results and provide a business and financial outlook on Tuesday, May 3 at 9:00 a.m. (EDT). 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, 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 CMS Enterprises' 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
								3/31/22			3/31/21
Operating revenue								$	2,374		$	2,013
Operating expenses									1,918			1,583
Operating Income									456			430
Other income									48			44
Interest charges									124			124
Income Before Income Taxes									380			350
Income tax expense									39			42
Income From Continuing Operations									341			308
Income from discontinued operations, net of tax									4			34
Net Income									345			342
Loss attributable to noncontrolling interests									(8)			(7)
Net Income Attributable to CMS Energy									353			349
Preferred stock dividends									2			-
Net Income Available to Common Stockholders								$	351		$	349
Diluted Earnings Per Average Common Share
Income from continuing operations per average common share     available to common stockholders
								$	1.20		$	1.09
Income from discontinued operations per average common share     available to common stockholders
									0.01			0.12
Diluted earnings per average common share								$	1.21		$	1.21

 

 

CMS ENERGY CORPORATION
Summarized Consolidated Balance Sheets
(Unaudited)
		In Millions
		As of
		3/31/22				12/31/21
Assets
Current assets
Cash and cash equivalents			$	446			$	452
Restricted cash and cash equivalents				28				24
Other current assets				1,985				2,151
Total current assets				2,459				2,627
Non-current assets
Plant, property, and equipment				22,540				22,352
Other non-current assets				3,741				3,774
Total Assets			$	28,740			$	28,753
Liabilities and Equity
Current liabilities (1)			$	1,432			$	1,822
Non-current liabilities (1)				7,430				7,269
Capitalization
Debt, finance leases, and other financing (excluding securitization debt) (2)
Debt, finance leases, and other financing (excluding non-recourse and securitization debt)				12,201				12,200
Non-recourse debt				74				76
Total debt, finance leases, and other financing (excluding securitization debt)				12,275				12,276
Preferred stock and securities				224				224
Noncontrolling interests				551				557
Common stockholders' equity				6,630				6,407
Total capitalization (excluding securitization debt)				19,680				19,464
Securitization debt (2)				198				198
Total Liabilities and Equity			$	28,740			$	28,753
(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
		3/31/22				3/31/21
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts			$	476			$	185
Net cash provided by operating activities				707				832
Net cash used in investing activities				(539)				(283)
Cash flows from operating and investing activities				168				549
Net cash used in financing activities				(170)				(210)
Total Cash Flows			$	(2)			$	339
End of Period Cash and Cash Equivalents, Including Restricted Amounts			$	474			$	524

 

CMS ENERGY CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
(Unaudited)
		In Millions, Except Per Share Amounts
								Three Months Ended
								3/31/22			3/31/21
Net Income Available to Common Stockholders								$	351		$	349
Reconciling items:
Disposal of discontinued operations gain									(5)			-
Tax impact									1			-
Discontinued operations income									-			(43)
Tax impact									-			9
Other exclusions from adjusted earnings**									(1)			(1)
Tax impact									*			*
Adjusted net income – non-GAAP								$	346		$	314
Average Common Shares Outstanding
Diluted									289.9			289.1
Diluted Earnings Per Average Common Share
Reported net income per share								$	1.21		$	1.21
Reconciling items:
Disposal of discontinued operations gain									(0.01)			-
Tax impact									*			-
Discontinued operations income									-			(0.15)
Tax impact									-			0.03
Other exclusions from adjusted earnings**									(*)			(*)
Tax impact									*			*
Adjusted net income per share – non-GAAP								$	1.20		$	1.09
*	Less than $0.5 million or $0.01 per share.
**	Includes restructuring costs and unrealized gains or losses, recognized in net income, from mark-to-market adjustments related to CMS Enterprises' 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, 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 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.

 

 

 

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SOURCE CMS Energy

FAQ

What were CMS Energy's earnings per share for the first quarter of 2022?

CMS Energy reported earnings per share of $1.21 for the first quarter of 2022.

How does CMS Energy's adjusted earnings compare to last year?

CMS Energy's adjusted earnings per share increased to $1.20 in Q1 2022, up from $1.09 in Q1 2021.

What is CMS Energy's adjusted earnings guidance for 2022?

CMS Energy reaffirmed its adjusted earnings guidance for 2022 at $2.85 to $2.89 per share.

What is CMS Energy's long-term growth forecast?

CMS Energy expects long-term adjusted EPS growth of 6 to 8 percent.

When will CMS Energy discuss its Q1 2022 results?

CMS Energy will hold a webcast on May 3, 2022, at 9:00 a.m. EDT to discuss its Q1 2022 results.