CMS ENERGY CORPORATION Earnings Per Share By Year GAAP Reconciliation (Unaudited)

Transcription

1 GAAP Reconciliation

2 CMS ENERGY CORPORATION Earnings Per Share By Year GAAP Reconciliation (Unaudited) Reported earnings (loss) per share - GAAP ($0.30) $0.64 ($0.44) ($0.41) ($1.02) $1.20 $0.91 $1.28 $1.58 $1.42 $1.66 $1.74 $1.89 $1.98 $1.64 Pretax items: Electric and gas utility 0.32 (0.60) - - (0.06) Tax impact (0.11) (0.01) (0.03) (0.22) (0.02) - (0.10) (0.01) 0.12 Enterprises (0.12) 1.67 (0.02) 0.14 (0.05) * (0.01) * 0.05 * * * Tax impact (0.19) (0.35) (0.02) 0.10 (0.42) * (0.05) 0.02 (0.11) * (*) (0.02) (*) (*) 0.20 Corporate interest and other 0.25 (0.06) * - * * * * Tax impact (0.09) 0.03 (0.02) (0.18) (0.49) (0.03) (*) (*) (0.01) (*) (*) (*) (*) (0.01) 0.20 Discontinued operations (income) loss, net (0.16) 0.02 (0.07) (0.03) 0.40 (*) (0.08) 0.08 (0.01) (0.03) * (*) (*) * * Asset impairment charges Tax impact - - (0.98) (0.31) (0.33) Cumulative accounting changes Tax impact (0.09) (0.01) Adjusted earnings per share, including MTM - non-gaap $0.81 $0.87 $1.39 $0.57 $0.84 $1.21 (a) $1.26 $1.36 $1.45 $1.55 $1.66 $1.77 $1.89 $2.02 $2.17 Mark-to-market 0.04 (0.65) 0.80 Tax impact (0.01) 0.22 (0.29) Adjusted earnings per share, excluding MTM - non-gaap NA $0.90 $0.96 $1.08 NA NA NA NA NA NA NA NA NA NA NA * Less than $0.01 per share. (a) $1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock. 2

3 CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income by Quarter (Unaudited) In Millions, Except Per Share Amounts Q 2Q 3Q 4Q YTD Dec (1) Net Income Available to Common Stockholders $ 199 $ 92 $ 172 $ (3) $ 460 Electric utility and gas utility Tax impact Enterprises * * Tax impact (*) (*) (*) Corporate interest and other 1 1 * - 2 Tax impact (*) (1) (*) Discontinued operations (income) loss * * * * * Adjusted Net Income Non-GAAP $ 200 $ 92 $ 173 $ 145 $ 610 Average Common Shares Outstanding Diluted Diluted Earnings Per Average Common Share $ 0.71 $ 0.33 $ 0.61 $ (0.01) $ 1.64 Electric utility and gas utility Tax impact Enterprises * * * * * Tax impact (*) (*) (*) Corporate interest and other * * 0.01 * 0.01 Tax impact (*) (*) (*) Discontinued operations (income) loss * * * * * Adjusted Diluted Earnings Per Average Common Share Non-GAAP $ 0.71 $ 0.33 $ 0.62 $ 0.51 $ 2.17 In Millions, Except Per Share Amounts Q 2Q 3Q 4Q YTD Dec (1) Net Income Available to Common Stockholders $ 164 $ 124 $ 186 $ 77 $ 551 Electric utility and gas utility * 11 Tax impact - - (4) (*) (4) Enterprises * * * 1 1 Tax impact (*) (*) (*) (*) (*) Corporate interest and other * * Tax impact (*) (*) (1) (2) (3) Discontinued operations (income) loss * * (*) (*) * Adjusted Net Income Non-GAAP $ 164 $ 124 $ 194 $ 81 $ 563 Average Common Shares Outstanding Diluted Diluted Earnings Per Average Common Share $ 0.59 $ 0.45 $ 0.67 $ 0.28 $ 1.98 Electric utility and gas utility * 0.04 Tax impact - - (0.01) (*) (0.01) Enterprises * * * * * Tax impact (*) (*) (*) (*) (*) Corporate interest and other * * * Tax impact (*) (*) (*) (0.01) (0.01) Discontinued operations (income) loss * * (*) (*) * Adjusted Diluted Earnings Per Average Common Share Non-GAAP $ 0.59 $ 0.45 $ 0.70 $ 0.29 $ 2.02 * Less than $0.5 million or $0.01 per share. (1) Year-to-date (YTD) EPS may not equal the sum of the quarters due to changes in the number of shares outstanding. 3

4 CMS ENERGY CORPORATION Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS by Segment (Unaudited) Electric Utility Reported net income per share $ 0.22 $ 0.23 $ 1.62 $ 1.64 Tax reform Voluntary separation program - * Tax impact - (*) - (0.01) Adjusted net income per share non-gaap $ 0.31 $ 0.23 $ 1.71 $ 1.66 Gas Utility Reported net income per share $ 0.26 $ 0.19 $ 0.62 $ 0.55 Tax reform Voluntary separation program - * Tax impact - (*) - (*) Adjusted net income per share non-gaap $ 0.29 $ 0.19 $ 0.65 $ 0.56 Enterprises Reported net income per share $ (0.19) $ - $ (0.09) $ 0.07 Restructuring costs and other * * * * Tax impact (*) (*) (*) (*) Tax reform Voluntary separation program * Tax impact (*) Adjusted net income per share non-gaap $ 0.01 $ - $ 0.11 $ 0.07 Corporate Interest and Other Reported net income per share $ (0.30) $ (0.14) $ (0.51) $ (0.28) Restructuring costs and other * Tax impact (*) (0.01) (*) (0.01) Tax reform Adjusted net income per share non-gaap $ (0.10) $ (0.13) $ (0.30) $ (0.27) Discontinued Operations Reported net income per share $ (*) $ * $ (*) $ (*) Discontinued operations (income) loss * (*) * * Adjusted net income per share non-gaap $ - $ - $ - $ - Consolidated Reported net income per share $ (0.01) $ 0.28 $ 1.64 $ 1.98 Discontinued operations (income) loss * (*) * * Restructuring costs and other * Tax impact (*) (0.01) (*) (0.01) Tax reform Voluntary separation program - * Tax impact - (*) - (0.01) Adjusted net income per share non-gaap $ 0.51 $ 0.29 $ 2.17 $ 2.02 Average Common Shares Outstanding Diluted * Less than $0.01 per share. In Millions, Except Per Share Amounts Three Months Ended Twelve Months Ended 12/31/17 12/31/16 12/31/17 12/31/16 4

5 Consolidated CMS Energy Corporation Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities (unaudited) (mils) Net cash provided by operating activities $ 1,705 $ 1,650 $ 1,650 $ 1,750 $ 1,850 $ 1,950 Other operating activities including taxes, interest payments and working capital Gross Operating Cash Flow $ 2,192 $ 2,043 $ 2,288 $ 2,470 $ 2,623 $ 2,727 Consumers Operating Income + Depreciation & Amortization $ 2,123 $ 1,982 $ 2,218 $ 2,396 $ 2,546 $ 2,699 Enterprises Project Cash Flows Gross Operating Cash Flow $ 2,192 $ 2,043 $ 2,288 $ 2,470 $ 2,623 $ 2,727 5

6 Consumers Energy Company 2017 Cash Flow GAAP Reconciliation (in millions) (unaudited) Reclassifications From Sources and Uses to Statement of Cash Flows to Sources and Uses Interest/ Capital Consolidated Statements of Cash Flows Tax Other Financing Lease Pymts Securitization Common Presentation Sources and Uses GAAP Sharing Payments Other Investing and Other Debt Pymts Dividends non-gaap Description Amount Operating from Operating as Financing from Financing from Financing from Financing Amount Description Cash at year end 2016 $ 152 $ - $ - $ - $ - $ - $ - $ 152 Cash at year end 2016 Sources $ 2,122 Operating (dep & amort $872) Net cash provided by (198) Other working capital operating activities $ 1,715 $ 1 $ 254 $ (21) $ (25) $ - $ 1,924 Sources Uses $ (254) Interest and preferred dividends (1,750) Capital expenditures a (523) Dividends/tax sharing to CMS Net cash used in - Pension Contribution & Other $ (1,751) $ (1) $ (254) $ 1 $ - $ - $ (522) $ (2,527) Uses Cash flow used in operating and $ (36) $ - $ - $ 1 $ (21) $ (25) $ (522) $ (603) Cash flow Financing $ 450 Equity 835 New Issues (530) Retirements Net cash used in (239) Net short-term financing & other financing activities $ (51) $ - $ - $ (1) $ 21 $ 25 $ 522 $ 516 Financing Net change in cash $ (87) $ - $ - $ - $ - $ - $ - $ (87) Net change in cash Cash at year end 2017 $ 65 $ - $ - $ - $ - $ - $ - $ 65 Cash at year end 2017 b a Includes cost of removal and capital leases b Includes restricted cash 6

7 CMS Energy - Parent Company 2017 Cash Flow GAAP Reconciliation (in millions) (unaudited) Reclassifications From Statement of Cash Flows to Sources and Uses Consolidated Statements of Cash Flows Non Equity Presentation Sources and Uses GAAP Uses non-gaap Description Amount as Operating Other Amount Description Cash at year end 2016 $ - $ - $ 43 $ 43 Cash at year end 2016 Sources $ 523 Consumers Energy dividends/tax sharing Net cash provided by 85 Enterprises & Other operating activities $ 433 $ 190 $ (15) $ 608 Sources Uses $ (133) Interest and preferred dividends (57) Overhead, Tax payments, & Other (450) Equity infusions Net cash used in - Pension Contribution $ (447) $ (190) $ (3) $ (640) Uses Cash flow used in operating and $ (14) $ - $ (18) $ (32) Cash flow Financing and dividends $ 575 New Issues (200) Retirements 83 Equity programs (DRP, continuous equity) - - (19) Net short-term financing & other Net cash provided by (375) Common dividend financing activities $ 14 $ - $ 50 $ 64 Financing Net change in cash $ - $ - $ 32 $ 32 Net change in cash Cash at year end 2017 $ - $ - $ 75 $ 75 Cash at year end

8 Consolidated CMS Energy 2017 Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited) Eliminations/Reclassifications/Consolidation to Arrive at the Consolidated Statement of Cash Flows Statements of Cash Flows Other Consumers Equity Consumers CMS Parent Consolidated Common Dividend Infusions to Consolidated Statements of Cash Flows Description Amount Amount Entities as Financing Consumers Amount Description Cash at year end 2016 $ 152 $ - $ 105 $ - $ - $ 257 Cash at year end 2016 Net cash provided by $ 1,715 $ 432 $ 80 $ (522) $ - $ 1,705 Net cash provided by operating activities operating activities Net cash used in (1,751) (447) (117) (1,868) Net cash used in Cash flow used in $ (36) $ (15) $ (37) $ (522) $ 447 $ (163) Cash flow used in operating and operating and Net cash used in $ (51) $ 15 $ 71 $ 522 $ (447) $ 110 Net cash provided by financing activities financing activities Net change in cash $ (87) $ - $ 34 $ - $ - $ (53) Net change in cash Cash at year end 2017 a $ 65 $ - $ 139 $ - $ - $ 204 Cash at year end 2017 a Includes restricted cash 8

9 Consumers Energy Company 2018 Cash Flow Forecast GAAP Reconciliation (in millions) (unaudited) Reclassifications From Sources and Uses to Statement of Cash Flows to Sources and Uses Interest/ Capital Consolidated Statements of Cash Flows Tax Other Financing Lease Pymts Securitization Common Presentation Sources and Uses GAAP Sharing Payments Other Investing and Other Debt Pymts Dividends non-gaap Description Amount Operating from Operating as Financing from Financing from Financing from Financing Amount Description Cash at year end 2017 $ 65 $ - $ - $ - $ - $ - $ - $ 65 Cash at year end 2017 Sources $ 1,982 Operating (dep & amort $922) Net cash provided by (140) Other working capital operating activities $ 1,278 $ 277 $ 277 $ 56 $ (21) $ (25) $ - $ 1,842 Sources Uses $ (277) Interest and preferred dividends (1,884) Capital expenditures a (821) Dividends/tax sharing to CMS Net cash used in - Pension Contribution & Other $ (1,890) $ (277) $ (277) $ 6 $ - $ - $ (544) $ (2,982) Uses Cash flow used in operating and $ (612) $ - $ - $ 62 $ (21) $ (25) $ (544) $ (1,140) Cash flow Financing $ 300 Equity 1,100 New Issues (318) Retirements Net cash provided by (62) 39 Net short-term financing & other financing activities $ 593 $ - $ - $ (62) $ 21 $ 25 $ 544 $ 1,121 Financing Net change in cash $ (19) $ - $ - $ - $ - $ - $ - $ (19) Net change in cash Cash at year end 2018 $ 46 $ - $ - $ - $ - $ - $ - $ 46 Cash at year end 2018 b a Includes cost of removal and capital leases b Includes restricted cash 9

10 CMS Energy - Parent Company 2018 Cash Flow Forecast GAAP Reconciliation (in millions) (unaudited) Reclassifications From Statement of Cash Flows to Sources and Uses Consolidated Statements of Cash Flows Non Equity Presentation Sources and Uses GAAP Uses non-gaap Description Amount as Operating Other Amount Description Cash at year end 2017 $ - $ - $ 75 $ 75 Cash at year end 2017 Sources $ 821 Consumers Energy dividends/tax sharing Net cash provided by 76 Enterprises & Other operating activities $ 655 $ 242 $ - $ 897 Sources Uses $ (124) Interest and preferred dividends (118) Overhead, Tax payments, & Other (300) Equity infusions Net cash used in - Pension Contribution $ (300) $ (242) $ - $ (542) Uses Cash flow from operating and $ 355 $ - $ - $ 355 Cash flow Financing and dividends $ - New Issues (180) Retirements 108 Equity programs (DRP, continuous equity) Net short-term financing & other Net cash used in (404) Common dividend financing activities $ (355) $ - $ (23) $ (378) Financing Net change in cash $ - $ - $ (23) $ (23) Net change in cash Cash at year end 2018 $ - $ - $ 52 $ 52 Cash at year end

11 Consolidated CMS Energy 2018 Forecasted Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited) Eliminations/Reclassifications/Consolidation to Arrive at the Consolidated Statement of Cash Flows Statements of Cash Flows Other Consumers Equity Consumers CMS Parent Consolidated Common Dividend Infusions to Consolidated Statements of Cash Flows Description Amount Amount Entities as Financing Consumers Amount Description Cash at year end 2017 $ 65 $ - $ 139 $ - $ - $ 204 Cash at year end 2017 Net cash provided by $ 1,278 $ 655 $ 261 $ (544) $ - $ 1,650 Net cash provided by operating activities operating activities Net cash used in (1,890) (300) (243) (2,133) Net cash used in Cash flow from $ (612) $ 355 $ 18 $ (544) $ 300 $ (483) Cash flow used in operating and operating and Net cash provided by (used in) $ 593 $ (355) $ (44) $ 544 $ (300) $ 438 Net cash provided by financing activities financing activities Net change in cash $ (19) $ - $ (26) $ - $ - $ (45) Net change in cash Cash at year end 2018 a $ 46 $ - $ 113 $ - $ - $ 159 Cash at year end 2018 a Includes Restricted Cash 11

12 CMS ENERGY CORPORATION Reconciliation of Non-GAAP FFO to Average Debt Ratio (Unaudited) FUNDS FROM OPERATIONS 12/31/17 Year Ended In Millions Net Cash Provided by Operating Activities $ 1,705 Reconciling item: Securitization amortization and other 10 Funds From Operations (FFO) Non-GAAP $ 1,715 AVERAGE DEBT In Millions As of 12/31/17 12/31/16 Indebtedness Long-term debt (1) $ 10,204 $ 9,504 Capital leases and financing obligation (1) Notes payable (1) Total Indebtedness 10,487 10,034 Securitization debt (1) (302) (328) EnerBank debt (1) (1,245) (1,198) Adjusted Debt Non-GAAP $ 8,940 $ 8,508 Average Debt Non-GAAP $ 8,724 (1) Includes current and non-current portions. FFO TO AVERAGE DEBT RATIO In Millions, Except Ratio Year Ended 12/31/17 Funds from operations (FFO) non-gaap $ 1,715 Average debt non-gaap $ 8,724 FFO to Average Debt Ratio Non-GAAP 19.7% 12

13 CMS ENERGY CORPORATION Reconciliations of GAAP Net Income to Non-GAAP EBIT and EBITDA (Unaudited) Twelve Months Ended 12/31/17 12/31/16 In Millions 12/31/15 Net Income Available to Common Stockholders $ 460 $ 551 $ 523 Income tax expense Interest on long-term debt Other interest expense Allowance for borrowed funds used during construction (2) (5) (4) Income attributable to noncontrolling interests Restructuring costs and other Tax reform Voluntary separation program EBIT Non-GAAP 1,476 1,280 1,192 Additional reconciling items: Depreciation and amortization EBITDA Non-GAAP $ 2,357 $ 2,091 $ 1,942 13

14 CONSUMERS ENERGY COMPANY Reconciliations of GAAP Net Income to Non-GAAP EBIT and EBITDA (Unaudited) Twelve Months Ended 12/31/17 12/31/16 In Millions 12/31/15 Net Income Available to Common Stockholder $ 630 $ 614 $ 592 Income tax expense Interest on long-term debt Other interest expense Allowance for borrowed funds used during construction (2) (5) (4) Preferred stock dividends Tax reform Voluntary separation program EBIT Non-GAAP 1,280 1,215 1,146 Additional reconciling items: Depreciation and amortization EBITDA Non-GAAP $ 2,152 $ 2,018 $ 1,890 14

15 CMS ENERGY CORPORATION Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income (Unaudited) Net Income Available to Common Stockholders $ (3) $ 77 $ 460 $ 551 Discontinued operations (income) loss * (*) * * Restructuring costs and other Tax impact (1) (2) (2) (3) Tax reform Voluntary separation program - * - 11 Tax impact - (*) - (4) Adjusted net income non-gaap $ 145 $ 81 $ 610 $ 563 Average Common Shares Outstanding Basic Diluted Basic Earnings Per Average Common Share Reported net income per share $ (0.01) $ 0.28 $ 1.64 $ 1.99 Discontinued operations (income) loss * (*) * * Restructuring costs and other * Tax impact (*) (0.01) (*) (0.01) Tax reform Voluntary separation program - * Tax impact - (*) - (0.01) Adjusted net income per share non-gaap $ 0.51 $ 0.29 $ 2.17 $ 2.03 Diluted Earnings Per Average Common Share Reported net income per share $ (0.01) $ 0.28 $ 1.64 $ 1.98 Discontinued operations (income) loss * (*) * * Restructuring costs and other * Tax impact (*) (0.01) (*) (0.01) Tax reform Voluntary separation program - * Tax impact - (*) - (0.01) Adjusted net income per share non-gaap $ 0.51 $ 0.29 $ 2.17 $ 2.02 * Less than $0.5 million or $0.01 per share. In Millions, Except Per Share Amounts Three Months Ended Twelve Months Ended 12/31/17 12/31/16 12/31/17 12/31/16 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. 15