Financial Results and Outlook

    2019 Results

Amount

Reported EPS

$2.39

Adjusted EPS

$2.49

2020 Updates

Amount

Adjusted EPS Guidance

$2.64 - $2.68*

Annual Dividend

$1.63

CMS ENERGY CORPORATION
Consolidated Statements of Income
(Unaudited)

Three Months Ended

Twelve Months Ended

12/31/19

12/31/18

12/31/19

12/31/18

Operating revenue

$

1,795

$

1,829

$

6,845

$

6,873

Operating expenses

1,484

1,579

5,606

5,711

Operating Income

311

250

1,239

1,162

Other income (expense)

28

(3)

109

70

Interest charges

134

121

519

458

Income Before Income Taxes

205

126

829

774

Income tax expense

37

17

147

115

Net Income

168

109

682

659

Income attributable to noncontrolling interests

1

1

2

2

Net Income Available to Common Stockholders

$

167

$

108

$

680

$

657

Basic Earnings Per Average Common Share

$

0.59

$

0.38

$

2.40

$

2.33

Diluted Earnings Per Average Common Share

0.58

0.38

2.39

2.32

CMS ENERGY CORPORATION
Summarized Consolidated Balance Sheets
(Unaudited)

In Millions

As of

12/31/19

12/31/18

Assets

Current assets

Cash and cash equivalents

$

140

$

153

Restricted cash and cash equivalents

17

21

Other current assets

2,174

2,294

Total current assets

2,331

2,468

Non-current assets

Plant, property, and equipment

18,926

18,126

Other non-current assets

5,580

3,935

Total Assets

$

26,837

$

24,529

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,484

$

1,531

Non-current liabilities ⁽¹⁾

7,051

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)

10,518

9,646

Non-recourse debt

2,478

1,854

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

12,996

11,500

Noncontrolling interests

37

37

Common stockholders' equity

5,018

4,755

Total capitalization (excluding securitization debt)

18,051

16,292

Securitization debt ⁽²⁾

251

277

Total Liabilities and Equity

$

26,837

$

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

Twelve Months Ended

12/31/19

12/31/18

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

175

$

204

Net cash provided by operating activities

1,790

1,703

Net cash used in investing activities

(2,816)

(2,606)

Cash flows from operating and investing activities

(1,026)

(903)

Net cash provided by financing activities

1,008

874

Total Cash Flows

$

(18)

$

(29)

End of Period Cash and Cash Equivalents, Including Restricted Amounts

$

157

$

175

CMS ENERGY CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Twelve Months Ended

12/31/19

12/31/18

12/31/19

12/31/18

Net Income Available to Common Stockholders

$

167

$

108

$

680

$

657

Reconciling items:

Other exclusions from adjusted earnings

36

8

37

9

Tax impact

(9)

(*)

(9)

(*)

Gain on assets previously sold

-

-

(*)

(4)

Tax impact

-

-

* 

1

  Tax reform

-

(4)

-

(4)

Adjusted net income – non-GAAP

$

194

$

112

$

708

$

659

Average Common Shares Outstanding

Basic

283.0

282.6

283.0

282.2

Diluted

284.8

283.3

284.3

282.9

Basic Earnings Per Average Common Share

Reported net income per share

$

0.59

$

0.38

$

2.40

$

2.33

Reconciling items:

Other exclusions from adjusted earnings

0.13

0.03

0.13

0.03

Tax impact

(0.03)

(*)

(0.03)

(*)

Gain on assets previously sold

-

-

(*)

(0.01)

Tax impact

-

-

* 

* 

Tax reform

-

(0.02)

-

(0.02)

Adjusted net income per share – non-GAAP

$

0.69

$

0.39

$

2.50

$

2.33

Diluted Earnings Per Average Common Share

Reported net income per share

$

0.58

$

0.38

$

2.39

$

2.32

Reconciling items:

Other exclusions from adjusted earnings

0.13

0.03

0.13

0.03

Tax impact

(0.03)

(*)

(0.03)

(*)

Gain on assets previously sold

-

-

(*)

(0.01)

Tax impact

-

-

* 

* 

Tax reform

-

(0.01)

-

(0.01)

Adjusted net income per share – non-GAAP

$

0.68

$

0.40

$

2.49

$

2.33

*

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.