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CMS Energy Announces 2012 Earnings of $1.42 Per Share, or $1.55 Per Share on an Adjusted Basis, and Provides 2013 Adjusted



 CMS Energy Announces 2012 Earnings of $1.42 Per Share, or $1.55 Per Share on
 an Adjusted Basis, and Provides 2013 Adjusted Earnings Guidance of $1.63 to
                               $1.66 Per Share

PR Newswire

JACKSON, Mich., Feb. 21, 2013

JACKSON, Mich., Feb. 21, 2013 /PRNewswire/ -- CMS Energy announced today
reported net income of $67 million, or $0.25 per share, for the fourth quarter
of 2012, compared to reported net income of $41 million, or $0.15 per share,
for the same quarter of 2011. 

The company's fourth quarter adjusted (non-Generally Accepted Accounting
Principles) net income, which excludes the effects of one-time items, also was
$67 million, or $0.25 per share, compared to $42 million, or $0.15 per share,
for the same quarter in 2011.

For 2012, CMS Energy had reported net income of $382 million, or $1.42 per
share, compared to $415 million, or $1.58 per share, for the same period of
2011.  On an adjusted basis, the company had net income of $417 million, or
$1.55 per share, for 2012 compared to $382 million, or $1.45 per share, for
the same period in 2011.

The company's reported net income for 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 provided guidance for 2013 adjusted earnings of $1.63 to $1.66 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.

John Russell, CMS Energy's president and chief executive officer, said the
company's strong financial performance in 2012 marked 10 straight years that
it has met or exceeded its adjusted earnings guidance.

Russell also noted the CMS Energy Board of Directors has increased the
company's common stock dividend seven times in as many years, most recently a
6 percent increase to 25.5 cents per share or $1.02 per share on an annualized
basis.  The dividend increases reflect the underlying strength and successful
execution of the company's business strategy, he said, adding: "Our long-term
plan calls for 5 percent to 7 percent annual earnings growth and we expect to
continue to increase our dividend as we execute our successful investment
strategy."

Russell said that CMS Energy's principal subsidiary, Consumers Energy, an
electric and natural gas utility with three million customers, plans to invest
about $7 billion in its operations through 2017, making it the second-largest
investor in Michigan.

"We're investing in areas that are important to our customers:  reliability,
renewable energy, a natural gas-fired power plant, environmental quality
programs, and energy efficiency.  Part of our promise to Michigan is to make
investments that create jobs and boost the state's economy.  Another part of
our promise to Michigan is to work hard every day to provide our customers
with a good energy value," Russell said, adding the company's rigorous cost
controls support that effort.

"In 2012, we reduced our operating costs by 2 percent and plan to cut them
another 6 percent this year.  Our overhead costs are the third lowest in the
utility industry.  There's also good news for our gas customers.  Our natural
gas prices this winter dropped 10 percent from last winter's prices and we
expect to cut them another 15 percent in April."

Russell said the company also takes seriously its responsibility to be a good
corporate citizen and help strengthen Michigan.

"Consumers Energy is helping other businesses in our state grow through its
$500 million commitment to the Pure Michigan Business Connect Initiative,
which encourages Michigan companies to do more business with each other.  That
$500 million is in addition to the $2 billion a year the company already
spends with Michigan companies," he said.

The company also delivered on its promise to be a good corporate neighbor in
2012, contributing $10 million to Michigan nonprofit organizations, Russell
said.  That included $1.25 million in matching grants from the Consumers
Energy Foundation to support priority projects in 10 Michigan communities. 
The grants, which generated $2.5 million to support the projects, were part of
the utility's year-long celebration of 125 years of serving Michigan families
and businesses.

In reviewing recent major events, Russell noted:

  o Consumers Energy announced plans to build a major new natural gas-fired
    power plant.  The company estimates it will invest about $750 million in
    the 700 megawatt plant.
  o The utility's first wind farm, the 100-megawatt Lake Winds Energy Park,
    has started serving customers.  With Lake Winds and power from other
    renewable energy sources, about 8 percent of the electricity that
    Consumers Energy provides its customers comes from renewable sources,
    making it the largest renewable energy supplier in the state.

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 2013.  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, June
30, 2012, and Sept. 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.

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

 

 

   CMS Energy Corporation
   SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME 
   (In Millions, Except Per Share Amounts)
                            Fourth Quarter               Full Year
                            (Unaudited)                  (Unaudited)
                            2012           2011          2012          2011
   Operating Revenue        $    1,670     $    1,620    $    6,253    $  
                                                                        6,503
   Operating Expenses       1,458          1,446         5,250         5,500
   Operating Income         $      212     $      174    $    1,003    $  
                                                                        1,003
   Other Income (Expense)   (7)            (8)           8             18
   Interest Charges         96             102           389           415
   Income before Income     $      109     $        64   $      622    $    
   Taxes                                                                606
   Income Tax Expense^a     42             23            245           191
   Income from Continuing   $        67    $        41   $      377    $    
   Operations                                                           415
   Income from Discontinued -              -             7             2
   Operations
   Net Income               $        67    $        41   $      384    $    
                                                                        417
   Income Attributable to   -              -             2             2
   Noncontrolling Interests
   Net Income Available to  $        67    $        41   $      382    $    
   Common Stockholders                                                  415
   Income Per Share 
                Basic       $     0.26     $     0.16    $     1.46    $    
                                                                       1.66
                Diluted     0.25           0.15          1.42          1.58
^a 2011 Full Year 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)
                                            December 31        December 31
                                            2012               2011
                                            (Unaudited)
 Assets
 Cash and cash equivalents                  $             93   $         161
 Restricted cash and cash equivalents       29                 27
 Other current assets                       2,300              2,377
    Total current assets                    $         2,422    $       2,565
 Plant, property, and equipment             11,551             10,633
 Other non-current assets                   3,158              3,254
 Total Assets                               $       17,131     $     16,452
 Liabilities and Equity
 Current liabilities                        $         1,146    $       1,281
 Non-current liabilities                    5,233              4,835
 Capitalization
    Debt and capital and finance leases (*)
       Long-term debt and capital leases
 (excluding non-recourse debt,
          finance leases and securitization 6,854              6,602
 debt)
       Non-recourse debt and finance leases 527                491
    Total debt and capital and finance      7,381              7,093
 leases
    Noncontrolling interests                44                 44
    Common stockholders' equity             3,194              3,028
    Total capitalization                    $       10,619     $     10,165
 Securitization debt                        133                171
 Total Liabilities and Equity               $       17,131     $     16,452
 (*) Current and long-term
 CMS Energy Corporation
 SUMMARIZED STATEMENTS OF CASH FLOWS
 (In Millions)
                                            Full Year
                                            (Unaudited)
                                            2012               2011
 Beginning of Period Cash                   $           161    $         247
 Cash provided by operating activities      $         1,241    $       1,169
 Cash used in investing activities          (1,350)            (1,058)
 Cash flow from operating and investing     $          (109)   $         111
 activities
 Cash provided by (used in) financing       41                 (199)
 activities
 Changes in cash included in assets held    -                  2
 for sale
 Total Cash Flow                            $            (68)  $          (86)
 End of Period Cash                         $             93   $         161

 

CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income 
(In Millions, Except Per Share Amounts)
                                Fourth Quarter          Full Year
                                (Unaudited)             (Unaudited)
                                2012          2011      2012        2011
Net Income Available to Common  $        67   $         $      382  $      415
Stockholders                                   41
Reconciling Items:
         Discontinued           -             -         (7)         (2)
         Operations Income
         Electric Decoupling    -             -         36          -
         Court Order
         Downsizing Program     -             -         7           -
         Tax Changes            -             -         -           (32)
         Restructuring Costs    -             1         (1)         1
         and Other
Adjusted Net Income - Non-GAAP  $        67   $         $      417  $      382
Basis                                          42
Average Number of Common Shares
Outstanding
         Basic                  263           252       261         251
         Diluted                269           266       269         263
Basic Earnings Per Average
Common Share
Net Income Per Share as         $     0.26    $         $     1.46  $     1.66
Reported                                      0.16
Reconciling Items:
         Discontinued           -             -         (0.03)      (0.01)
         Operations Income
         Electric Decoupling    -             -         0.14        -
         Court Order
         Downsizing Program     -             -         0.03        -
         Tax Changes            -             -         -           (0.13)
         Restructuring Costs    -             -         -           -
         and Other
Adjusted Net Income - Non-GAAP  $     0.26    $         $     1.60  $     1.52
Basis                                         0.16
Diluted Earnings Per Average
Common Share
Net Income Per Share as         $     0.25    $         $     1.42  $     1.58
Reported                                      0.15
Reconciling Items:
         Discontinued           -             -         (0.03)      (0.01)
         Operations Income
         Electric Decoupling    -             -         0.14        -
         Court Order
         Downsizing Program     -             -         0.03        -
         Tax Changes            -             -         -           (0.12)
         Restructuring Costs    -             -         (0.01)      -
         and Other
Adjusted Net Income - Non-GAAP  $     0.25    $         $     1.55  $     1.45
Basis                                         0.15
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.

 

SOURCE CMS Energy

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