CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Nine Months Ended

9/30/19

9/30/18

9/30/19

9/30/18

Operating revenue

$

1,546

$

1,599

$

5,050

$

5,044

Operating expenses

1,195

1,305

4,122

4,132

Operating Income

351

294

928

912

Other income

31

22

81

73

Interest charges

133

114

385

337

Income Before Income Taxes

249

202

624

648

Income tax expense

42

33

110

98

Net Income

207

169

514

550

Income attributable to noncontrolling interests

-

-

1

1

Net Income Available to Common Stockholders

$

207

$

169

$

513

$

549

Basic Earnings Per Average Common Share

$

0.73

$

0.60

$

1.81

$

1.95

Diluted Earnings Per Average Common Share

0.73

0.59

1.81

1.94

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

In Millions

As of

9/30/19

12/31/18

Assets

Current assets

Cash and cash equivalents

$

403

$

153

Restricted cash and cash equivalents

29

21

Other current assets

1,873

2,294

Total current assets

2,305

2,468

Non-current assets

Plant, property, and equipment

18,524

18,126

Other non-current assets

5,180

3,935

Total Assets

$

26,009

$

24,529

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,091

$

1,531

Non-current liabilities ⁽¹⁾

6,729

6,429

Capitalization

Debt, capital leases, and financing obligation (excluding securitization debt) ⁽²⁾

Debt, capital leases, and financing obligation (excluding non-recourse and securitization debt)

10,460

9,646

Non-recourse debt

2,471

1,854

Total debt, capital leases, and financing obligation (excluding securitization debt)

12,931

11,500

Noncontrolling interests

37

37

Common stockholders' equity

4,957

4,755

Total capitalization (excluding securitization debt)

17,925

16,292

Securitization debt ⁽²⁾

264

277

Total Liabilities and Equity

$

26,009

$

24,529

⁽¹⁾ Excludes debt, capital leases, and financing obligation.

⁽²⁾ Includes current and non-current portions.

CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)

In Millions

Nine Months Ended

9/30/19

9/30/18

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

175

$

204

Net cash provided by operating activities

1,395

1,565

Net cash used in investing activities

(2,212)

(1,815)

Cash flows from operating and investing activities

(817)

(250)

Net cash provided by financing activities

1,075

412

Total Cash Flows

$

258

$

162

End of Period Cash and Cash Equivalents, Including Restricted Amounts

$

433

$

366

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

9/30/19

9/30/18

9/30/19

9/30/18

Net Income Available to Common Stockholders

$

207

$

169

$

513

$

549

Reconciling items:

Other exclusions from adjusted earnings

1

* 

1

1

Tax impact

(*)

(*)

(*)

(*)

Gain on assets previously sold

-

-

(*)

(4)

Tax impact

-

-

* 

1

Adjusted net income – non-GAAP

$

208

$

169

$

514

$

547

Average Common Shares Outstanding

Basic

283.0

282.5

282.9

282.1

Diluted

284.6

283.2

284.2

282.8

Basic Earnings Per Average Common Share

Reported net income per share

$

0.73

$

0.60

$

1.81

$

1.95

Reconciling items:

Other exclusions from adjusted earnings

* 

* 

* 

* 

Tax impact

(*)

(*)

(*)

(*)

Gain on assets previously sold

-

-

(*)

(0.01)

Tax impact

-

-

* 

* 

Adjusted net income per share – non-GAAP

$

0.73

$

0.60

$

1.81

$

1.94

Diluted Earnings Per Average Common Share

Reported net income per share

$

0.73

$

0.59

$

1.81

$

1.94

Reconciling items:

Other exclusions from adjusted earnings

* 

* 

* 

* 

Tax impact

(*)

(*)

(*)

(*)

Gain on assets previously sold

-

-

(*)

(0.01)

Tax impact

-

-

* 

* 

Adjusted net income per share – non-GAAP

$

0.73

$

0.59

$

1.81

$

1.93

*

Less than $0.5 million or $0.01 per share.

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, regulatory items from prior years, or other items detailed in these summary financial statements.  Adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.