CMS Energy Announces Third Quarter Earnings of $0.55 Per Share, or $0.54 Per Share on an Adjusted Basis, and Reaffirms Adjusted

 CMS Energy Announces Third Quarter Earnings of $0.55 Per Share, or $0.54 Per
Share on an Adjusted Basis, and Reaffirms Adjusted Earnings Guidance Of $1.52
                              to $1.55 Per Share

PR Newswire

JACKSON, Mich., Oct. 25, 2012

JACKSON, Mich., Oct. 25, 2012 /PRNewswire/ --CMS Energy announced today
reported net income of $148 million, or $0.55 per share, for the third quarter
of 2012, compared to reported net income of $139 million, or $0.53 per share,
for the same quarter of 2011.

The company's third quarter adjusted (non-Generally Accepted Accounting
Principles) net income, which excludes the effects of one-time items, was $145
million, or $0.54 per share, compared to $139 million, or $0.53 per share, for
the same quarter in 2011.

For the first nine months of the year, CMS Energy had reported net income of
$315 million, or $1.17 per share, compared to $374 million, or $1.43 per
share, for the same period of 2011. On an adjusted basis, the company had
income of $350 million, or $1.31 per share, for the first nine months of 2012
compared to $340 million, or $1.30 per share, for the same period in 2011.

The reported net income for the first nine months of 2012 includes a one-time
charge of $36 million, or $0.14 per share, reflecting the write-off of an
electric decoupling regulatory asset at the company's Michigan utility,
Consumers Energy. The company's 2011 reported net income included a one-time
non-cash gain of $32 million, or $0.12 per share, related to the company's
non-utility operations.

CMS Energy reaffirmed its guidance for 2012 adjusted earnings of $1.52 to
$1.55 per share, consistent with the company's long-term plan of 5 percent to
7 percent annual earnings per share growth. The company's reported earnings
could vary from adjusted earnings because of several factors, such as legacy
issues associated with prior asset sales and regulatory items from prior
years. Because of those uncertainties, the company isn't providing reported
earnings guidance.

The solid financial results for the third quarter and the first nine months of
the year reflect the continuing execution of the company's plan to invest in
its utility operations to serve customers and improve the environment, said
John Russell, CMS Energy's president and chief executive officer.

"We're aggressively managing our costs at the same time we're making these
substantial investments. We plan to hold our average base rate increases at
or below the rate of inflation for the next five years. That's part of our
promise to work hard every day for our customers and to provide them with a
good energy value," Russell said.

"Our investments are providing clear benefits for customers as well as
creating value for investors. For example, we have invested $640 million in
the Consumers Energy electric system over the past five years. Those
investments paid off for customers with increased reliability this summer when
hot, humid weather and Michigan's recovering economy pushed the customer
demand for electricity to record levels."

In reviewing recent major events, Russell noted:

  oHigh temperatures and Michigan's recovering economy pushed customer demand
    for electricity in July to its highest monthly total in Consumers Energy's
    125-year history.
  oThe start of installation of "smart meters" at customer homes and
    businesses. The company plans to install the high-tech meters for all of
    its 1.8 million electric customers over the next several years.
  oConsumers Energy has doubled, to $500 million, its five-year commitment to
    the Pure Michigan Business Connect, an initiative to create jobs and boost
    the state's economy by encouraging Michigan companies to do more business
    with each other. The $500 million will be spent on competitively priced,
    quality products and services and is in addition to the $2 billion a year
    the utility already spends with other Michigan companies.

CMS Energy (NYSE: CMS) is a Michigan-based company that has an electric and
natural gas utility, Consumers Energy, as its primary business and also owns
and operates independent power generation businesses.

CMS Energy provides financial results on both a reported (Generally Accepted
Accounting Principles) and adjusted (non-GAAP) basis. Management views
adjusted earnings as a key measure of the company's present operating
financial performance, unaffected by discontinued operations, asset sales,
impairments, regulatory items from prior years, or other items detailed in the
attached summary financial statements. Certain of these items have the
potential to impact, favorably or unfavorably, the company's reported earnings
in 2012. The company is not able to estimate the impact of these matters and
is not providing reported earnings guidance.

This news release contains "forward-looking statements" as defined in Rule
3b-6 of the Securities Exchange Act of 1934, as amended, Rule 175 of the
Securities Act of 1933, as amended, and relevant legal decisions. The
forward-looking statements are subject to risks and uncertainties. They should
be read in conjunction with "FORWARD-LOOKING STATEMENTS AND INFORMATION" and
"RISK FACTORS" sections of CMS Energy's Form 10-K and Consumers Energy's Form
10-K each for the Year Ended December 31, 2011, and as updated in CMS Energy's
and Consumers Energy's Forms 10-Q for the Quarters Ended March 31, 2012 and
June 30, 2012.

CMS Energy's and Consumers Energy's "FORWARD-LOOKING STATEMENTS AND
INFORMATION" and "RISK FACTORS" sections are incorporated herein by reference
and discuss important factors that could cause CMS Energy's and Consumers
Energy's results to differ materially from those anticipated in such
statements.



CMS Energy Corporation
SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
                               Third Quarter                 Nine Months
                               (Unaudited)                   (Unaudited)
                               2012            2011          2012      2011
   Operating Revenue           $  1,507      $  1,464    $        $ 
                                                             4,583    4,883
   Operating Expenses          1,164           1,148         3,792     4,054
   Operating Income           $   343      $   316    $       $  
                                                             791      829
   Other Income               -               9             15        26
   Interest Charges            96              104           293       313
   Income before Income Taxes  $   247      $   221    $       $  
                                                             513      542
   Income Tax Expense^a        98              81            203       168
   Income from Continuing      $   149      $   140    $       $  
   Operations                                                310      374
   Income from Discontinued    -               -             7         2
   Operations
   Net Income                 $   149      $   140    $       $  
                                                             317      376
   Income Attributable to      1               1             2         2
   Noncontrolling Interests
   Net Income Available to     $   148      $   139    $       $  
   Common Stockholders                                       315      374
   Income Per Share
    Basic          $   0.56      $   0.55    $       $  
                                                             1.21      1.49
    Diluted        0.55            0.53          1.17      1.43
^a 2011 Nine months ended income tax expense includes a $32 million benefit
   related to a Michigan state income tax law change.



 CMS Energy Corporation
SUMMARIZED CONSOLIDATED BALANCE SHEETS
(In Millions)
                                  September 30                   December 31
                                  2012                           2011
                                  (Unaudited)
Assets
Cash and cash equivalents         $      128                $     161
Restricted cash and cash          31                             27
equivalents
Other current assets              2,201                          2,377
 Total current assets           $     2,360                $    2,565
Plant, property, and equipment    11,190                         10,633
Other non-current assets          3,058                          3,254
Total Assets                      $    16,608                 $   16,452
Liabilities and Equity
Current liabilities               $      975                $    1,281
Non-current liabilities          5,017                          4,835
Capitalization
 Debt and capital and finance
leases (*)
 Long-term debt and capital
leases (excluding non-recourse
debt,
 finance leases and       6,745                          6,602
securitization debt)
 Non-recourse debt and       488                            491
finance leases
 Total debt and capital and     7,233                          7,093
finance leases
 Noncontrolling interests       44                             44
 Common stockholders equity     3,196                          3,028
 Total capitalization           $    10,473                 $   10,165
Securitization debt               143                            171
Total Liabilities and Equity      $    16,608                 $   16,452
(*) Current and long-term
 CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(In Millions)
                                                     Nine Months
                                                     (Unaudited)
                                  2012                           2011
Beginning of Period Cash          $      161                $     247
Cash provided by operating        $      934                $    1,195
activities
Cash used in investing activities (938)                          (752)
Cash flow from operating and      $       (4)             $     443
investing activities
Cash used in financing activities (29)                           (69)
Changes in cash included in       -                              2
assets held for sale
Total Cash Flow                   $      (33)              $     376
End of Period Cash                $      128                $     623



CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income
(In Millions, Except Per Share Amounts)
                                     Third Quarter            Nine Months
                                     (Unaudited)              (Unaudited)
                                     2012            2011     2012     2011
Net Income Available to Common       $   148      $      $      $  
Stockholders                                         139     315     374
Reconciling Items:
        Discontinued Operations      -               -        (7)      (2)
        Income
        Electric Decoupling Court    -               -        36       -
        Order
        Downsizing Program           -               -        7        -
        Tax Changes                  -               -        -        (32)
        Restructuring Costs and      (3)             -        (1)      -
        Other
Adjusted Net Income - Non-GAAP Basis $   145      $      $      $  
                                                     139     350     340
Average Number of Common Shares
Outstanding
        Basic                        263             251      260      251
        Diluted                      269             264      268      262
Basic Earnings Per Average Common
Share
Net Income Per Share as Reported     $   0.56      $      $      $  
                                                     0.55     1.21     1.49
Reconciling Items:
        Discontinued Operations      -               -        (0.03)   (0.01)
        Income
        Electric Decoupling Court    -               -        0.14     -
        Order
        Downsizing Program           -               -        0.03     -
        Tax Changes                  -               -        -        (0.13)
        Restructuring Costs and      (0.01)          -        -        -
        Other
Adjusted Net Income - Non-GAAP Basis $   0.55      $      $      $  
                                                     0.55     1.35     1.35
Diluted Earnings Per Average Common
Share
Net Income Per Share as Reported     $   0.55      $      $      $  
                                                     0.53     1.17     1.43
Reconciling Items:
        Discontinued Operations      -               -        (0.03)   (0.01)
        Income
        Electric Decoupling Court    -               -        0.14     -
        Order
        Downsizing Program           -               -        0.03     -
        Tax Changes                  -               -        -        (0.12)
        Restructuring Costs and      (0.01)          -        -        -
        Other
Adjusted Net Income - Non-GAAP Basis $   0.54      $      $      $  
                                                     0.53     1.31     1.30
Note:   Management views adjusted (non-Generally Accepted Accounting
        Principles) earnings as a
        key measure of the Company's present operating financial
        performance, unaffected by
        discontinued operations, asset sales, impairments, regulatory
        items from prior years,
        or other items detailed in these summary financial
        statements.

For more information on CMS Energy, please visit our web site at:
www.cmsenergy.com





SOURCE CMS Energy

Website: http://www.cmsenergy.com
Contact: Media Contacts, Jeff Holyfield, +1-517-788-2394 or Dan Bishop,
+1-517-788-2395; Investment Analyst Contact: CMS Energy Investor Relations,
+1-517-788-2590
 
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