CMS Energy Reaffirms Adjusted Earnings Guidance Of $1.63 To $1.66 Per Share; Accelerates Cost Reductions To Avoid Electric And

 CMS Energy Reaffirms Adjusted Earnings Guidance Of $1.63 To $1.66 Per Share;
  Accelerates Cost Reductions To Avoid Electric And Gas Base Rate Increases
 Through 2014 While Continuing To Invest In Reliability And Customer Service

PR Newswire

JACKSON, Mich., July 25, 2013

JACKSON, Mich., July 25, 2013 /PRNewswire/ -- CMS Energy announced today
reported net income of $80 million, or $0.29 per share, for the second quarter
of 2013 and $224 million, or $0.83 per share, for the first half. Adjusted
(non-Generally Accepted Accounting Principles) net income for the second
quarter and first half was the same as the reported amounts. 

In the first half of 2013, CMS Energy continued to implement its strategy of
reinvesting in customer service and reliability due to higher revenue from an
unusually cold winter. CMS Energy also grew its first half adjusted earnings
per share by nearly 8 percent in 2013 compared to 2012. CMS Energy reaffirmed
its 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.

As part of its continuing focus on providing customers with safe, reliable and
affordable energy, CMS Energy also announced today that it will be
accelerating a series of cost reductions that should allow it to avoid both
electric and gas base rate increases through 2014, while investing more than
$1.5 billion in its utility operations in energy reliability, smart energy,
renewable energy and customer service.

"We're focused on providing customers with safe, reliable and affordable
service," said John Russell, CMS Energy's president and chief executive
officer. "Our plan to accelerate several cost reduction measures should allow
us to avoid electric and gas base rate increases and hold down prices."

"We're a leader in our industry when it comes to reducing operating costs to
benefit customers," said Russell. He noted during the quarter Consumers
Energy's first-ever uncontested settlement of an electric rate case, in
addition to a 12 percent natural gas fuel price reduction compared to one year
ago. The company remains committed to holding average base rate increases for
its 3 million customers at or below the rate of inflation for the next five
years.

Russell added that the company's investment in providing reliable service is
paying off for customers. "We've invested about $1 billion over the past five
years in our distribution operations. That's producing a 20 percent
improvement in electric reliability."

In reviewing recent major events, Russell said that the company took a major
step toward development of its $750 million natural gas plant in Thetford
Township, Genesee County, by filing a certificate of necessity application
with the Michigan Public Service Commission. The company also contracted with
GE for 62 wind turbine generators for its second wind park, the Cross Winds®
Energy Park, with construction scheduled to begin in the fourth quarter of
2013. Consumers Energy remains the state's leader in renewable energy and is
on track to meet the 10 percent renewable energy standard in Michigan's energy
reform law by 2015.

"We're contributing to Michigan's economic growth through our $7 billion
investment in operations through 2017, including renewable energy, energy
efficiency, energy reliability and environmental quality. This plan is
creating jobs, strengthening Michigan communities and improving the
environment," said Russell. In addition, Consumers Energy increased to $1
billion its commitment to buy goods and services from Michigan companies as
part of the Pure Michigan Business Connect initiative.

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 historical financial results on both a reported (Generally
Accepted Accounting Principles) and adjusted (non-GAAP) basis and provides
forward-looking guidance on an adjusted 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. These items have the potential to impact,
favorably or unfavorably, the company's reported earnings in future periods.
Because the company is not able to estimate the impact of these matters, the
company is not providing a reconciliation to the comparable future period
reported earnings.

This news release contains "forward-looking statements" as defined in Rule
3b-6 of the Securities Exchange Act of 1934, Rule 175 of the Securities Act of
1933, and relevant legal decisions. The forward-looking statements are subject
to risks and uncertainties. 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. Forward-looking statements 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, 2012 and as updated in CMS Energy's and Consumers Energy's
Forms 10-Q.

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)
                        Second Quarter              First Half
                                (Unaudited)                (Unaudited)
                        2013                2012    2013               2012
Operating Revenue       $                  $      $                 $ 
                        1,406              1,333  3,385             3,076
Operating Expenses      1,174               1,073   2,824              2,628
Operating Income       $                 $     $                $  
                        232                260    561               448
Other Income           5                   6       13                 15
Interest Charges        102                 98      200                197
Income before Income    $                 $     $                $  
Taxes                   135                168    374               266
Income Tax Expense     54                  67      149                105
Income from Continuing  $                $     $                $  
Operations              81                 101    225               161
Income from             -                   -       -                  7
Discontinued Operations
Net Income             $                $     $                $  
                        81                 101    225               168
Income Attributable to
Noncontrolling          1                   1       1                  1
Interests
Net Income Available to $                $     $                $  
Common Stockholders     80                 100    224               167
Income Per Share
 Basic      $                 $     $                $  
                        0.30                0.38    0.85               0.64
 Diluted    0.29                0.37    0.83               0.62





CMS Energy Corporation
SUMMARIZED CONSOLIDATED BALANCE SHEETS
(In Millions)
                                              June 30           December 31
                                              2013              2012
                                              (Unaudited)
Assets
Cash and cash equivalents                     $      537   $      93
Restricted cash and cash equivalents          29                29
Other current assets                          1,919             2,300
 Total current assets                       $     2,485   $    2,422
Plant, property, and equipment                11,916            11,551
Other non-current assets                      3,028             3,158
Total Assets                                  $    17,429    $   17,131
Liabilities and Equity
Current liabilities                           $     1,044   $    1,146
Non-current liabilities                      5,428             5,233
Capitalization
 Debt and capital and finance leases (*)
 Long-term debt and capital leases
(excluding non-recourse debt,
 finance leases and securitization    6,985             6,854
debt)
 Non-recourse debt and finance leases    499               527
 Total debt and capital and finance leases  7,484             7,381
 Noncontrolling interests                   37                44
 Common stockholders' equity                3,323             3,194
 Total capitalization                       $    10,844    $   10,619
Securitization debt                           113               133
Total Liabilities and Equity                  $    17,429    $   17,131
(*) Current and long-term
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(In Millions)
                                              First Half
                                              (Unaudited)
                                              2013              2012
Beginning of Period Cash                      $       93  $     161
Cash provided by operating activities         $    1,095    $     943
Cash used in investing activities             (616)             (610)
Cash flow from operating and investing        $      479   $     333
activities
Cash used in financing activities             (35)              (307)
Total Cash Flow                               $      444   $      26
End of Period Cash                            $      537   $     187





CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income
(In Millions, Except Per Share Amounts)
                                     Second Quarter           First Half
                                     (Unaudited)              (Unaudited)
                                     2013          2012       2013     2012
Net Income Available to Common       $          $        $      $  
Stockholders                         80           100       224     167
Reconciling Items:
        Discontinued Operations      -             -          -        (7)
        Income
        Electric Decoupling Court    -             -          -        36
        Order
        Downsizing Program           -             7          -        7
        Restructuring Costs          -             1          -        2
Adjusted Net Income - Non-GAAP Basis $          $        $      $  
                                     80           108       224     205
Average Number of Common Shares
Outstanding
        Basic                        265           261        264      258
        Diluted                      272           268        272      268
Basic Earnings Per Average Common
Share
Net Income Per Share as Reported     $   0.30    $        $      $  
                                                   0.38       0.85     0.64
Reconciling Items:
        Discontinued Operations      -             -          -        (0.03)
        Income
        Electric Decoupling Court    -             -          -        0.14
        Order
        Downsizing Program           -             0.03       -        0.03
        Restructuring Costs          -             -          -        0.01
Adjusted Net Income - Non-GAAP Basis $   0.30    $        $      $  
                                                   0.41       0.85     0.79
Diluted Earnings Per Average Common
Share
Net Income Per Share as Reported     $   0.29    $        $      $  
                                                   0.37       0.83     0.62
Reconciling Items:
        Discontinued Operations      -             -          -        (0.03)
        Income
        Electric Decoupling Court    -             -          -        0.14
        Order
        Downsizing Program           -             0.03       -        0.03
        Restructuring Costs          -             -          -        0.01
Adjusted Net Income - Non-GAAP Basis $   0.29    $        $      $  
                                                   0.40       0.83     0.77
        Management views adjusted (non-Generally Accepted Accounting
Note:   Principles) earnings as a key measure of the Company's
        present operating financial performance, unaffected
        bydiscontinued 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 Contacts: Dan Bishop, 517/788-2395, or Brian Wheeler,
517/788-2394; Investment Analyst Contact: CMS Energy Investor Relations,
517/788-2590
 
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