Company Announcements

CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

3/31/22

3/31/21

Operating revenue

$

2,374

$

2,013

Operating expenses

1,918

1,583

Operating Income

456

430

Other income

48

44

Interest charges

124

124

Income Before Income Taxes

380

350

Income tax expense

39

42

Income From Continuing Operations

341

308

Income from discontinued operations, net of tax

4

34

Net Income

345

342

Loss attributable to noncontrolling interests

(8)

(7)

Net Income Attributable to CMS Energy

353

349

Preferred stock dividends

2

-

Net Income Available to Common Stockholders

$

351

$

349

Diluted Earnings Per Average Common Share

Income from continuing operations per average common share
    available to common stockholders

$

1.20

$

1.09

Income from discontinued operations per average common share
    available to common stockholders

0.01

0.12

Diluted earnings per average common share

$

1.21

$

1.21

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

In Millions

As of

3/31/22

12/31/21

Assets

Current assets

Cash and cash equivalents

$

446

$

452

Restricted cash and cash equivalents

28

24

Other current assets

1,985

2,151

Total current assets

2,459

2,627

Non-current assets

Plant, property, and equipment

22,540

22,352

Other non-current assets

3,741

3,774

Total Assets

$

28,740

$

28,753

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,432

$

1,822

Non-current liabilities ⁽¹⁾

7,430

7,269

Capitalization

Debt, finance leases, and other financing (excluding securitization debt) ⁽²⁾

Debt, finance leases, and other financing (excluding non-recourse and securitization debt)

12,201

12,200

Non-recourse debt

74

76

Total debt, finance leases, and other financing (excluding securitization debt)

12,275

12,276

Preferred stock and securities

224

224

Noncontrolling interests

551

557

Common stockholders' equity

6,630

6,407

Total capitalization (excluding securitization debt)

19,680

19,464

Securitization debt ⁽²⁾

198

198

Total Liabilities and Equity

$

28,740

$

28,753

⁽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

Three Months Ended

3/31/22

3/31/21

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

476

$

185

Net cash provided by operating activities

707

832

Net cash used in investing activities

(539)

(283)

Cash flows from operating and investing activities

168

549

Net cash used in financing activities

(170)

(210)

Total Cash Flows

$

(2)

$

339

End of Period Cash and Cash Equivalents, Including Restricted Amounts

$

474

$

524

CMS ENERGY CORPORATION

Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income

(Unaudited)    

In Millions, Except Per Share Amounts

Three Months Ended

3/31/22

3/31/21

Net Income Available to Common Stockholders

$

351

$

349

Reconciling items:

Disposal of discontinued operations gain

(5)

-

Tax impact

1

-

Discontinued operations income

-

(43)

Tax impact

-

9

Other exclusions from adjusted earnings**

(1)

(1)

Tax impact

* 

* 

Adjusted net income – non-GAAP

$

346

$

314

Average Common Shares Outstanding

Diluted

289.9

289.1

Diluted Earnings Per Average Common Share

Reported net income per share

$

1.21

$

1.21

Reconciling items:

Disposal of discontinued operations gain

(0.01)

-

Tax impact

* 

-

Discontinued operations income

-

(0.15)

Tax impact

-

0.03

Other exclusions from adjusted earnings**

(*)

(*)

Tax impact

* 

* 

Adjusted net income per share – non-GAAP

$

1.20

$

1.09

*

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, 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.