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Consumers Energy Co (201533) SEC Filing 8-K Material Event for the period ending Thursday, October 28, 2021

Consumers Energy Co

CIK: 201533

 

Exhibit 99.1

 

 

CMS Energy Announces Third Quarter Results with Confidence Toward the High End of 2021 Guidance

 

JACKSON, Mich., Oct. 28, 2021 – CMS Energy announced today reported earnings per share from continuing operations of $0.54 for the third quarter of 2021, compared to $0.72 per share for the same quarter in 2020, which exclude the discontinued operations of EnerBank USA. The company’s adjusted earnings per share from continuing operations were $0.54 for the third quarter of 2021, compared to $0.73 per share for the same quarter in 2020, which exclude the discontinued operations of EnerBank.

 

“CMS Energy’s strong execution in 2021, including closing the sale of EnerBank on October 1 for over $1 billion, has positioned the company well for long-term success to the benefit of customers, investors and the communities we serve. We are actively redeploying the proceeds from the transaction into our core utility business to fund key initiatives like grid hardening and our clean energy transformation,” said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy.

 

CMS Energy raised its full-year 2021 adjusted earnings from continuing operations guidance to $2.63 to $2.65 per share, from $2.61 to $2.65 per share* (*See below for important information about non-GAAP measures). CMS Energy also reaffirmed 2022 adjusted earnings guidance of $2.85 - $2.87 per share and long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end of the EPS growth range.

 

CMS Energy (NYSE: CMS) is a Michigan-based energy company 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 2021 third quarter results and provide a business and financial outlook on October 28 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 and adjusted earnings per share from continuing operations. All references to net income refer to net income available to common stockholders. All references to reported earnings per share from continuing operations refer to Income from continuing operations per average common share available to common stockholders 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 CMS Enterprises' 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.
To sign up for email alert notifications, please visit the Investor Relations section of our website.

 

Media Contact: Katie Carey, 517-740-1739

 

Investment Analyst Contact: Travis Uphaus, 517-817-9241

 

 2

 

 

 

Page 1 of 4

 

CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)

 

    In Millions, Except Per Share Amounts  
    Three Months Ended    Nine Months Ended 
    9/30/21    9/30/20    9/30/21    9/30/20 
Operating revenue  $1,725   $1,507   $5,296   $4,691 
                     
Operating expenses   1,465    1,167    4,354    3,768 
                     
Operating Income   260    340    942    923 
                     
Other income   44    28    136    99 
                     
Interest charges   125    130    374    378 
                     
Income Before Income Taxes   179    238    704    644 
                     
Income tax expense   26    40    90    88 
                     
Income From Continuing Operations   153    198    614    556 
                     
Income from discontinued operations, net of tax   30    12    82    34 
                     
Net Income   183    210    696    590 
                     
Loss attributable to noncontrolling interests   (6)   (8)   (18)   (7)
                     
Net Income Attributable to CMS Energy   189    218    714    597 
                     
Preferred stock dividends   3    -    3    - 
                     
Net Income Available to Common Stockholders  $186   $218   $711   $597 
                     
Basic Earnings Per Average Common Share                    
Income from continuing operations per average common share
available to common stockholders
  $0.54   $0.72   $2.18   $1.98 
Income from discontinued operations per average common share
available to common stockholders
   0.10    0.04    0.28    0.12 
                     
Basic earnings per average common share  $0.64   $0.76   $2.46   $2.10 
                     
Diluted Earnings Per Average Common Share                    
Income from continuing operations per average common share
available to common stockholders
  $0.54   $0.72   $2.18   $1.97 
Income from discontinued operations per average common share
available to common stockholders
   0.10    0.04    0.28    0.12 
Diluted earnings per average common share  $0.64   $0.76   $2.46   $2.09 

 

 

 

Page 2 of 4

 

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

 

   In Millions 
   As of 
   9/30/21   12/31/20 
Assets      
Current assets          
Cash and cash equivalents  $102   $32 
Restricted cash and cash equivalents   30    17 
Assets held for sale   494    429 
Other current assets   1,851    1,926 
Total current assets   2,477    2,404 
Non-current assets          
Plant, property, and equipment   21,934    21,017 
Assets held for sale   2,606    2,680 
Other non-current assets   3,496    3,565 
Total Assets  $30,513   $29,666 
           
Liabilities and Equity          
Current liabilities (1)          
Liabilities held for sale  $1,233   $953 
Other current liabilities   1,436    1,530 
Total current liabilities   2,669    2,483 
Non-current liabilities (1)          
Liabilities held for sale   1,523    1,894 
Other non-current liabilities   7,008    6,821 
Total non-current liabilities   8,531    8,715 
Capitalization          
Debt, finance leases, and other financing (excluding securitization debt) (2)          
Debt, finance leases, and other financing (excluding non-recourse and securitization debt)   12,370    12,083 
Non-recourse debt   79    83 
Total debt, finance leases, and other financing (excluding securitization debt)   12,449    12,166 
Preferred stock and securities   224    - 
Noncontrolling interests   563    581 
Common stockholders' equity   5,866    5,496 
Total capitalization (excluding securitization debt)   19,102    18,243 
Securitization debt (2)   211    225 
Total Liabilities and Equity  $30,513   $29,666 

 

(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
  9/30/21  9/30/20
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts $185   $157 
          
Net cash provided by operating activities (3)  1,483    1,144 
Net cash used in investing activities  (1,460)   (2,298)
Cash flows from operating and investing activities  23    (1,154)
Net cash provided by financing activities  28    1,555 
          
Total Cash Flows $51   $401 
          
End of Period Cash and Cash Equivalents, Including Restricted Amounts (4) $236   $558 

 

 

(3)Includes the impact of a $531 million pension contribution in 2020.

 

(4)In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank.  As a result, EnerBank's cash and cash equivalents are presented as assets held for sale on CMS Energy's consolidated balance sheets at September 30, 2021 and September 30, 2020.

 

 

 

Page 3 of 4

 

CMS ENERGY CORPORATION

Reconciliation of GAAP to Non-GAAP Adjusted Income from Continuing Operations

(Unaudited)

 

    In Millions, Except Per Share Amounts 
    Three Months Ended    Nine Months Ended 
    9/30/21    9/30/20    9/30/21    9/30/20 
Net Income Available to Common Stockholders  $186   $218   $711   $597 
Reconciling items:                    
Disposal of discontinued operations (gain) loss   3    -    8    - 
Tax impact   (1)   -    (2)   - 
Discontinued operations income   (42)   (16)   (115)   (44)
Tax impact   10    4    27    10 
Other exclusions from adjusted earnings**   (*)   4    (1)   11 
Tax impact   *    (1)    *    (2)
Tax reform   -    -    -    (9)
Voluntary separation program   -    *    -    11 
Tax impact   -    (*)   -    (3)
                     
Adjusted income from continuing operations – non-GAAP  $156   $209   $628   $571 
                     
Average Common Shares Outstanding                    
Basic   289.1    285.6    288.9    284.8 
Diluted   289.6    286.9    289.4    286.3 
                     
Basic Earnings Per Average Common Share                    
Reported net income per average common share  $0.64   $0.76   $2.46   $2.10 
Reconciling items:                    
Disposal of discontinued operations (gain) loss   0.01    -    0.03    - 
Tax impact   (*)   -    (0.01)   - 
Discontinued operations income   (0.14)   (0.05)   (0.39)   (0.15)
Tax impact   0.03    0.01    0.09    0.03 
Other exclusions from adjusted earnings**   (*)   0.01    (*)   0.03 
Tax impact   *     (*)    *    (0.01)
Tax reform   -    -    -    (0.03)
Voluntary separation program   -     *      -    0.04 
Tax impact   -     (*)   -    (0.01)
                     
Adjusted income from continuing operations per average common share – non-GAAP  $0.54   $0.73   $2.18   $2.00 
                     
Diluted Earnings Per Average Common Share                    
Reported net income per average common share  $0.64   $0.76   $2.46   $2.09 
Reconciling items:                    
Disposal of discontinued operations (gain) loss   0.01    -    0.03    - 
Tax impact   (*)   -    (0.01)   - 
Discontinued operations income   (0.14)   (0.05)   (0.39)   (0.15)
Tax impact   0.03    0.01    0.09    0.03 
Other exclusions from adjusted earnings**   (*)   0.01    (*)   0.03 
Tax impact   *     (*)   *    (0.01)
Tax reform   -    -    -    (0.03)
Voluntary separation program   -     *      -    0.04 
Tax impact   -     (*)   -    (0.01)
                     
Adjusted income from continuing operations per average common share – non-GAAP  $0.54   $0.73   $2.18   $1.99 

 

* Less than $0.5 million or $0.01 per share.                      
** Includes restructuring costs and unrealized gains or losses from mark-to-market adjustments recognized in net income related to CMS Enterprises' 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 CMS Enterprises’ 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.  

 

 

 

 

Page 4 of 4

 

CMS ENERGY CORPORATION

Reconciliation of GAAP to Non-GAAP Adjusted Income from Continuing Operations

(Unaudited)

 

    In Millions, Except Per Share Amounts  
    Three Months Ended    Nine Months Ended 
    9/30/21    9/30/20    9/30/21    9/30/20 
Income Available to Common Stockholders                    
Reported income from continuing operations available to common stockholders  $156   $206   $629   $563 
Reconciling items:                    
Other exclusions from adjusted earnings**   (*)   4    (1)   11 
Tax impact   *     (1)    *     (2)
Tax reform   -    -    -    (9)
Voluntary separation program   -    *     -    11 
Tax impact   -    (*)   -    (3)
                     
Adjusted income from continuing operations – non-GAAP  $156   $209   $628   $571 
                     
Average Common Shares Outstanding                    
Basic   289.1    285.6    288.9    284.8 
Diluted   289.6    286.9    289.4    286.3 
                     
Basic Earnings Per Average Common Share                    
Reported income from continuing operations per average common share available to common stockholders  $0.54   $0.72   $2.18   $1.98 
Reconciling items:                    
Other exclusions from adjusted earnings**   (*)   0.01    (*)   0.03 
Tax impact    *     (* )    *     (0.01)
Tax reform   -    -    -    (0.03)
Voluntary separation program   -     *      -    0.04 
Tax impact   -    (*)   -    (0.01)
                     
Adjusted income from continuing operations per average common share – non-GAAP  $0.54   $0.73   $2.18   $2.00 
                     
Diluted Earnings Per Average Common Share                    
Reported income from continuing operations per average common share available to common stockholders  $0.54   $0.72   $2.18   $1.97 
Reconciling items:                    
Other exclusions from adjusted earnings**   (*)   0.01    (*)   0.03 
Tax impact    *     (*)    *     (0.01)
Tax reform   -    -    -    (0.03)
Voluntary separation program   -     *      -    0.04 
Tax impact   -    (*)   -    (0.01)
                     
Adjusted income from continuing operations per average common share – non-GAAP  $0.54   $0.73   $2.18   $1.99 

 

* Less than $0.5 million or $0.01 per share.                      
** Includes restructuring costs and unrealized gains or losses from mark-to-market adjustments recognized in net income related to CMS Enterprises' 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 CMS Enterprises’ 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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CIK: 201533
Form Type: 8-K Corporate News
Accession Number: 0001104659-21-130743
Submitted to the SEC: Thu Oct 28 2021 8:12:25 AM EST
Accepted by the SEC: Thu Oct 28 2021
Period: Thursday, October 28, 2021
Industry: Electric And Other Services Combined
Events:
  1. Earnings Release
  2. Financial Exhibit
  3. Regulated Disclosure

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