Welcome!

News Feed Item

CMS Energy Announces 2013 Earnings Of $1.66 Per Share, Up 7%; Raises 2014 Adjusted Earnings Guidance To $1.74 To $1.78 Per Share, Up 5% To 7%

ANNOUNCES PLAN TO PURCHASE CLEAN-BURNING NATURAL GAS PLANT

JACKSON, Mich., Jan. 30, 2014 /PRNewswire/ -- CMS Energy announced today reported net income of $102 million, or $0.37 per share, for the fourth quarter of 2013, compared to reported net income of $67 million, or $0.25 per share, for the same quarter of 2012.  Adjusted (non-Generally Accepted Accounting Principles) net income for the fourth quarter and year was the same as the reported amounts.  

For 2013, CMS Energy had reported net income of $452 million, or $1.66 per share, compared to $382 million, or $1.42 per share, for the same period of 2012. 

CMS Energy raised previously provided guidance for 2014 adjusted earnings to $1.74 to $1.78 per share, consistent with the company's long-term plan of 5 percent to 7 percent annual earnings per share growth. 

John Russell, CMS Energy's president and chief executive officer, said the company's strong financial performance in 2013 marked 11 straight years that it has met or exceeded its adjusted earnings guidance.

The company also announced today its plan to purchase, for $155 million, a 540 megawatt clean-burning natural gas power plant in its hometown of Jackson, Michigan, and will place on hold plans for a new $700 million gas plant in Thetford Township, Genesee County.  The Jackson plant is scheduled to become part of Consumers Energy's generating system in the first quarter of 2016, and will partially replace electric capacity from seven older coal-fired plants planned for retirement in April 2016.  Purchase of the Jackson plant is subject to customary closing conditions, including regulatory approvals.

"The gas plant is a great example of our plan to make strategic investments in Michigan and provide customers with safe, affordable, reliable and increasingly clean energy," said Russell. "More than a half-billion in savings by buying versus building provides significant headroom to expand our gas utility, the 4th-largest in the U.S., as well as continue investments in improvements in electric reliability. We're updating our power generation portfolio to emphasize sustainability, environmental benefits and long-term value for customers."

"Our electric system recently faced major challenges with the worst ice storm in a decade, including a record number of downed-wires and employees and out-of-state line workers restoring service. We thank our customers for their support during this catastrophic storm and we appreciate the extraordinary service by our employees, mutual assistance crews and contractors during Christmas week."

Russell said that CMS Energy's principal subsidiary, Consumers Energy, Michigan's largest utility with three million electric and natural gas customers, still plans to invest about $15 billion in its operations over the next 10 years to enhance customer value. 

"Our customers' needs guide our investment decisions, including strengthening distribution reliability, energy efficiency programs that lower energy bills, and growing our supply of renewable energy as Michigan's leader in that area.  Our ongoing cost control program provides us the ability to make these investments and deliver on our commitment to consistent financial performance."  

Russell noted that Michigan Governor Rick Snyder's recent major address on future energy policy, which emphasized adaptability, reliability, affordability and protection of the environment, is consistent with the company's strategic approach and investment plans.

These plans also include enhancing the delivery capacity of Consumers Energy's natural gas system through investments in its 15 gas storage fields, compressor stations and gas main replacement program. The company's gas fuel prices are the lowest they've been in a decade.

Russell said the company will substantially increase its efforts in 2014 to strengthen the Michigan communities where it provides electric and gas service, including support for local businesses.

"In addition to the $2 billion we annually spend in Michigan on goods and services, we are the largest sponsor of Pure Michigan Business Connect, which encourages Michigan companies to do more business with each other.  At year-end, we have awarded $775 million in contracts to Michigan companies, creating an estimated 5,000 jobs."

In reviewing recent major events, Russell cited:

  • All-time records were set January 6-7 for gas storage withdrawal and for one-hour delivery to the company's 1.7 million customers. 
  • Construction started on Cross Winds® Energy Park, the company's second wind facility, scheduled to begin serving customers in the fourth quarter. 
  • Construction continues on the $120 million Southwest Michigan Pipeline to strengthen gas delivery reliability and support strategic supply purchases.
  • Achieved first-quartile ranking for sustainable business practices among 24 utilities.

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)






































Fourth Quarter


Full Year



(Unaudited)


(Unaudited)



2013


2012


2013


2012











Operating Revenue

$    1,736


$    1,670


$    6,566


$    6,253











Operating Expenses

1,472


1,458


5,424


5,250











Operating Income 

$      264


$      212


$    1,142


$    1,003











Other Income (Expense)

(1)


(7)


12


8











Interest Charges

99


96


398


389











Income before Income Taxes

$      164


$      109


$      756


$      622











Income Tax Expense 

62


42


302


245











Income from Continuing Operations

$      102


$        67


$      454


$      377











Income from Discontinued Operations

-


-


-


7











Net Income 

$      102


$        67


$      454


$      384











Income Attributable to Noncontrolling Interests

-


-


2


2











Net Income Available to Common Stockholders

$      102


$        67


$      452


$      382




















Income Per Share 









             Basic

$     0.38


$     0.26


$     1.71


$     1.46


             Diluted

0.37


0.25


1.66


1.42






CMS Energy Corporation

SUMMARIZED CONSOLIDATED BALANCE SHEETS

(In Millions)




December 31


December 31


2013


2012


(Unaudited)

Assets




Cash and cash equivalents

$           172


$           93

Restricted cash and cash equivalents

32


29

Other current assets

2,322


2,300

   Total current assets

$         2,526


$       2,422

Plant, property, and equipment

12,246


11,551

Other non-current assets

2,644


3,158

Total Assets

$       17,416


$     17,131









Liabilities and Equity




Current liabilities

$         1,213


$       1,146

Non-current liabilities 

4,741


5,233

Capitalization




   Debt, capital leases, and financing obligation (*)




      Debt, capital leases, and financing obligation 




         (excluding non-recourse and securitization debt)

7,227


6,854

      Non-recourse debt 

652


527

   Total debt, capital leases, and financing obligation

7,879


7,381

   Noncontrolling interests

37


44

   Common stockholders' equity

3,454


3,194

   Total capitalization

$       11,370


$     10,619

Securitization debt

92


133

Total Liabilities and Equity

$       17,416


$     17,131





(*) Current and long-term








CMS Energy Corporation

SUMMARIZED STATEMENTS OF CASH FLOWS

(In Millions)


Full Year


(Unaudited)


2013


2012









Beginning of Period Cash

$             93


$         161









Cash provided by operating activities

$         1,421


$       1,241

Cash used in investing activities

(1,532)


(1,350)

Cash flow from operating and investing activities

$          (111)


$        (109)

Cash provided by financing activities

190


41

Total Cash Flow

$             79


$          (68)









End of Period Cash

$           172


$           93













 











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)




2013


2012


2013


2012












Net Income Available to Common Stockholders

$      102


$        67


$      452


$       382












Reconciling Items:










Discontinued Operations Income

-


-


-


(7)













Electric Decoupling Court Order

-


-


-


36













Voluntary Separation Program

-


-


-


7













Restructuring Costs and Other

-


-


-


(1)












Adjusted Net Income - Non-GAAP Basis

$      102


$        67


$      452


$       417






















Average Number of Common Shares Outstanding










Basic

265


263


265


261



Diluted

272


269


272


269












Basic Earnings Per Average Common Share



















Net Income Per Share as Reported

$     0.38


$     0.26


$     1.71


$      1.46












Reconciling Items:










Discontinued Operations Income

-


-


-


(0.03)













Electric Decoupling Court Order

-


-


-


0.14













Voluntary Separation Program

-


-


-


0.03












Adjusted Net Income - Non-GAAP Basis

$     0.38


$     0.26


$     1.71


$      1.60






















Diluted Earnings Per Average Common Share



















Net Income Per Share as Reported

$     0.37


$     0.25


$     1.66


$      1.42












Reconciling Items:










Discontinued Operations Income

-


-


-


(0.03)













Electric Decoupling Court Order

-


-


-


0.14













Voluntary Separation Program

-


-


-


0.03













Restructuring Costs and Other

-


-


-


(0.01)












Adjusted Net Income - Non-GAAP Basis

$     0.37


$     0.25


$     1.66


$      1.55






















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

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.