CMS Energy Announces Strong Third Quarter Results, Raises 2022 Adjusted EPS, Introduces Preliminary 2023 Guidance
CMS Energy reported third-quarter earnings per share (EPS) of $0.56, down from $0.64 in Q3 2021. Adjusted EPS for Q3 2022 was $0.56, slightly up from $0.54 in Q3 2021. Year-to-date, 2022 EPS stands at $2.27 compared to $2.46 for the same period last year. However, adjusted year-to-date EPS improved to $2.29 from $2.18. The company raised its 2022 adjusted EPS guidance to a range of $2.87 to $2.89, and provided preliminary 2023 guidance of $3.05 to $3.11. The firm maintains a long-term adjusted EPS growth target of 6-8%. The CEO highlighted economic development initiatives, including a new EV battery factory in Michigan.
- Raised 2022 adjusted EPS guidance from $2.85 to $2.89.
- Preliminary 2023 adjusted EPS guidance introduced at $3.05 to $3.11.
- Year-to-date adjusted EPS increased to $2.29 from $2.18.
- Reported third-quarter EPS declined from $0.64 to $0.56.
- Year-to-date EPS decreased from $2.46 to $2.27.
JACKSON, Mich., Oct. 27, 2022 /PRNewswire/ -- CMS Energy announced today reported earnings per share of
CMS Energy raised its 2022 adjusted earnings guidance to
"CMS had another strong quarter and continues to execute well on all fronts, positioning us solidly for the fourth quarter and 2023," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. "We had several accomplishments during the period – most notably in economic development through the commitment by Gotion, a global electric vehicle battery manufacturer, to build a factory in our service territory, which builds our customer base and helps Michigan grow."
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 third quarter results and provide a business and financial outlook on Thursday, October 27 at 9:30 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 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.
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CMS ENERGY CORPORATION | ||||||||||||
In Millions, Except Per Share Amounts | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
9/30/22 | 9/30/21 | 9/30/22 | 9/30/21 | |||||||||
Operating revenue | $ | 2,024 | $ | 1,725 | $ | 6,318 | $ | 5,296 | ||||
Operating expenses | 1,766 | 1,465 | 5,365 | 4,354 | ||||||||
Operating Income | 258 | 260 | 953 | 942 | ||||||||
Other income | 54 | 44 | 145 | 136 | ||||||||
Interest charges | 130 | 125 | 380 | 374 | ||||||||
Income Before Income Taxes | 182 | 179 | 718 | 704 | ||||||||
Income tax expense | 19 | 26 | 72 | 90 | ||||||||
Income From Continuing Operations | 163 | 153 | 646 | 614 | ||||||||
Income from discontinued operations, net of tax | - | 30 | 4 | 82 | ||||||||
Net Income | 163 | 183 | 650 | 696 | ||||||||
Loss attributable to noncontrolling interests | (2) | (6) | (16) | (18) | ||||||||
Net Income Attributable to CMS Energy | 165 | 189 | 666 | 714 | ||||||||
Preferred stock dividends | 2 | 3 | 7 | 3 | ||||||||
Net Income Available to Common Stockholders | $ | 163 | $ | 186 | $ | 659 | $ | 711 | ||||
Diluted Earnings Per Average Common Share | ||||||||||||
Income from continuing operations per average common share | ||||||||||||
$ | 0.56 | $ | 0.54 | $ | 2.26 | $ | 2.18 | |||||
Income from discontinued operations per average common share | ||||||||||||
- | 0.10 | 0.01 | 0.28 | |||||||||
Diluted earnings per average common share | $ | 0.56 | $ | 0.64 | $ | 2.27 | $ | 2.46 | ||||
CMS ENERGY CORPORATION | ||||||||
In Millions | ||||||||
As of | ||||||||
9/30/22 | 12/31/21 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 168 | $ | 452 | ||||
Restricted cash and cash equivalents | 27 | 24 | ||||||
Other current assets | 2,831 | 2,151 | ||||||
Total current assets | 3,026 | 2,627 | ||||||
Non-current assets | ||||||||
Plant, property, and equipment | 22,340 | 22,352 | ||||||
Other non-current assets | 5,006 | 3,774 | ||||||
Total Assets | $ | 30,372 | $ | 28,753 | ||||
Liabilities and Equity | ||||||||
Current liabilities (1) | $ | 1,488 | $ | 1,822 | ||||
Non-current liabilities (1) | 7,625 | 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) | 13,571 | 12,200 | ||||||
Non-recourse debt | - | 76 | ||||||
Total debt, finance leases, and other financing (excluding securitization debt) | 13,571 | 12,276 | ||||||
Preferred stock and securities | 224 | 224 | ||||||
Noncontrolling interests | 591 | 557 | ||||||
Common stockholders' equity | 6,689 | 6,407 | ||||||
Total capitalization (excluding securitization debt) | 21,075 | 19,464 | ||||||
Securitization debt (2) | 184 | 198 | ||||||
Total Liabilities and Equity | $ | 30,372 | $ | 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 | ||||||||
Nine Months Ended | ||||||||
9/30/22 | 9/30/21 | |||||||
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts | $ | 476 | $ | 185 | ||||
Net cash provided by operating activities | 667 | 1,483 | ||||||
Net cash used in investing activities | (1,808) | (1,460) | ||||||
Cash flows from operating and investing activities | (1,141) | 23 | ||||||
Net cash provided by financing activities | 860 | 28 | ||||||
Total Cash Flows | $ | (281) | $ | 51 | ||||
End of Period Cash and Cash Equivalents, Including Restricted Amounts | $ | 195 | $ | 236 | ||||
CMS ENERGY CORPORATION | ||||||||||||
In Millions, Except Per Share Amounts | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
9/30/22 | 9/30/21 | 9/30/22 | 9/30/21 | |||||||||
Net Income Available to Common Stockholders | $ | 163 | $ | 186 | $ | 659 | $ | 711 | ||||
Reconciling items: | ||||||||||||
Disposal of discontinued operations (gain) loss | - | 3 | (5) | 8 | ||||||||
Tax impact | - | (1) | 1 | (2) | ||||||||
Discontinued operations income | - | (42) | - | (115) | ||||||||
Tax impact | - | 10 | - | 27 | ||||||||
Other exclusions from adjusted earnings** | * | (*) | (1) | (1) | ||||||||
Tax impact | (*) | * | * | * | ||||||||
Voluntary separation program | (*) | - | 11 | - | ||||||||
Tax impact | * | - | (3) | - | ||||||||
Adjusted net income – non-GAAP | $ | 163 | $ | 156 | $ | 662 | $ | 628 | ||||
Average Common Shares Outstanding | ||||||||||||
Diluted | 290.1 | 289.6 | 290.0 | 289.4 | ||||||||
Diluted Earnings Per Average Common Share | ||||||||||||
Reported net income per share | $ | 0.56 | $ | 0.64 | $ | 2.27 | $ | 2.46 | ||||
Reconciling items: | ||||||||||||
Disposal of discontinued operations (gain) loss | - | 0.01 | (0.01) | 0.03 | ||||||||
Tax impact | - | (*) | * | (0.01) | ||||||||
Discontinued operations income | - | (0.14) | - | (0.39) | ||||||||
Tax impact | - | 0.03 | - | 0.09 | ||||||||
Other exclusions from adjusted earnings** | * | (*) | (*) | (*) | ||||||||
Tax impact | (*) | * | * | * | ||||||||
Voluntary separation program | (*) | - | 0.04 | - | ||||||||
Tax impact | * | - | (0.01) | - | ||||||||
Adjusted net income per share – non-GAAP | $ | 0.56 | $ | 0.54 | $ | 2.29 | $ | 2.18 | ||||
* Less than | ||||||||||||
** Includes restructuring costs and unrealized gains or losses, recognized in net income, from mark-to-market adjustments 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, 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
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