CMS Energy Announces Third Quarter Results, Introduces 2025 Guidance

CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Nine Months Ended

9/30/24

9/30/23

9/30/24

9/30/23

Operating revenue

$

1,743

$

1,673

$

5,526

$

5,512

Operating expenses

1,376

1,402

4,464

4,683

Operating Income

367

271

1,062

829

Other income

84

77

283

279

Interest charges

178

164

528

471

Income Before Income Taxes

273

184

817

637

Income tax expense

26

11

125

81

Income From Continuing Operations

247

173

692

556

Income from discontinued operations, net of tax

-

-

-

1

Net Income

247

173

692

557

Loss attributable to noncontrolling interests

(6)

(3)

(46)

(21)

Net Income Attributable to CMS Energy

253

176

738

578

Preferred stock dividends

2

2

7

7

Net Income Available to Common Stockholders

$

251

$

174

$

731

$

571

Diluted Earnings Per Average Common Share

$

0.84

$

0.60

$

2.45

$

1.96

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

In Millions

As of

9/30/24

12/31/23

Assets

Current assets

Cash and cash equivalents

$

412

$

227

Restricted cash and cash equivalents

55

21

Other current assets

2,236

2,591

Total current assets

2,703

2,839

Non-current assets

Plant, property, and equipment

26,671

25,072

Other non-current assets

5,443

5,606

Total Assets

$

34,817

$

33,517

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,684

$

1,822

Non-current liabilities ⁽¹⁾

8,325

7,927

Capitalization

Debt and finance leases (excluding securitization debt) ⁽²⁾

15,451

14,856

Preferred stock and securities

224

224

Noncontrolling interests

530

581

Common stockholders' equity

7,887

7,320

Total capitalization (excluding securitization debt)

24,092

22,981

Securitization debt ⁽²⁾

716

787

Total Liabilities and Equity

$

34,817

$

33,517

⁽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

Nine Months Ended

9/30/24

9/30/23

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

248

$

182

Net cash provided by operating activities

1,967

1,904

Net cash used in investing activities

(2,101)

(2,737)

Cash flows from operating and investing activities

(134)

(833)

Net cash provided by financing activities

353

835

Total Cash Flows

$

219

$

2

End of Period Cash and Cash Equivalents, Including Restricted Amounts

$

467

$

184

CMS ENERGY CORPORATION

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

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Nine Months Ended

9/30/24

9/30/23

9/30/24

9/30/23

Net Income Available to Common Stockholders

$

251

$

174

$

731

$

571

Reconciling items:

Disposal of discontinued operations (gain) loss

-

-

-

(1)

Tax impact

-

-

-

*

Other exclusions from adjusted earnings**

*

1

6

6

Tax impact

(*)

(1)

(1)

(2)

Voluntary separation program

-

5

*

33

Tax impact

-

(1)

(*)

(8)

Adjusted net income - non-GAAP

$

251

$

178

$

736

$

599

Average Common Shares Outstanding - Diluted

298.8

291.4

298.2

291.3

Diluted Earnings Per Average Common Share

Reported net income per share

$

0.84

$

0.60

$

2.45

$

1.96

Reconciling items:

Disposal of discontinued operations (gain) loss

-

-

-

(*)

Tax impact

-

-

-

*

Other exclusions from adjusted earnings**

*

*

0.02

0.02

Tax impact

(*)

(*)

(*)

(*)

Voluntary separation program

-

0.01

*

0.11

Tax impact

-

(*)

(*)

(0.03)

Adjusted net income per share - non-GAAP

$

0.84

$

0.61

$

2.47

$

2.06

*

Less than $0.5 million or $0.01 per share.

**

Includes restructuring costs and business optimization initiative.

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, voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, 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.