Exhibit 99.1
| JP Morgan Utility Day March 24, 2011 Thomas J. Webb Executive Vice President and CFO Growing Forward |
| This presentation is made as of the date hereof and contains "forward-looking statements" as defined in Rule 3b-6 of the Securities Exchange Act of 1934, as amended, Rule 175 of the Securities Act of 1933, as amended, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. They should be read in conjunction with "FORWARD- LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections of CMS Energy's and Consumers Energy's Form 10-K for the year ended December 31 and as updated in subsequent 10-Qs. 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. CMS Energy and Consumers Energy undertake no obligation to update any of the information presented herein to reflect facts, events or circumstances after the date hereof. The presentation also includes non-GAAP measures when describing CMS Energy's results of operations and financial performance. A reconciliation of each of these measures to the most directly comparable GAAP measure is included in the appendix and posted on our website at www.cmsenergy.com. CMS Energy expects 2011 reported earnings to be about the same as adjusted earnings. Reported earnings could vary because of several factors. CMS Energy is not providing reported earnings guidance reconciliation because of the uncertainties associated with those factors. |
| Business Model Financial Use NOLs Grow Operating Cash Flow Business Invest in Utility Create Jobs Enhance Customer Value Moderate Rate Increases 2 |
| Regulatory Progress . . . . .. . . . supports growth. 2009 Filed $214 M Self-Imp $179 M Order $139 M 2010 Filed $178 M Self-Imp $150 M Order $146 M 2009 Filed $114 M Self-Imp $89 M Order $66 M 2010 Filed $55 M Self-Imp Delayed 78% 97% 74% 2008 2009 2010 2011 Electric Gas 2008 2009 2010 2011 Filed New Renewable Plan $55 M Reduction Order by August 12 2011 3 |
| Intense Customer Focus . . . . 4 .. . . . continues as core to success. 2011-2015 Estimated Annual Average Base Rate Increases (CHART) Customer Value Initiative Eliminated legacy cost Maximize Energy Optimization Improve system reliability Competitive rates |
| Capital Investment . . . . (CHART) 2010 2011 2012 2013 2014 2015 Average Rate Base (bils) $10.3 $10.9 $11.6 $12.4 $13.3 0 Rate Base Bils $ Present Rate Base 5%-7% Reliability & Other Renewables Smart Grid Environmental Maintenance Depreciation .. . . . provides earnings growth. Utility Investment (CHART) $6.4 Billion 2011-2015 5 |
| 2011-2015 Growth at 5%-7% Driven By . . . . 6 .. . . . needed capital investment. Maintenance $3.1 Billion Environmental $1.5 Billion Renewables $0.7 Billion |
| Renewable Energy Plans . . . . Michigan energy law requires: 10% renewables by 2015 Purchase 50% and build 50% Renewable energy surcharge reduced $55 million annually Still plan to invest $650 million over next five years, primarily on wind power .. . . . at lower customer costs while maintaining wind investment. Renewable Facilities Proposed Company-owned Wind Facilities New Power Purchase Agreements (287 MW) ^ 7 ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Cross Winds Energy Park Lake Winds Energy Park ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ Upper Peninsula |
| Environmental Investment . . . . Environmental compliance remains good Environmental emission reductions better than plan Regulatory outlook improved GHG Regulation - minimal impact anticipated Flexibility in timing if needed 8 .. . . . $1.5 billion over next 5 years. |
| 9 Smart Grid Deployment . . . . .. . . . improves overall financial viability. Billing Customer Information Outage Management Work and Asset Management Enterprise Applications MDM/MDUS Total project cost $750 million Meter deployment begins early 2012 Removed deployment of gas only meters Minimize upfront IT system cost by installing only basic functionality Expanded functions installed later Improved ability to scale plan |
| (CHART) Economy: 2010 Electric Sales (weather-adjusted) . . . . 2010 Sales (vs 2009) .. . . . recovering. (CHART) Electric Sales 0 7% decline 1979 to 1982 6% decline 2007 to 2009 Total +2% Up 9% 1983 &1984 Up 4% 2010 & 2011 10 |
| 2011 Forecasted Electric Sales (weather adjusted) . . . . .. . . . growth stronger. 11 (CHART) Total +2.5% |
| 2011 Adjusted EPS (non-GAAP) Guidance . . . . .. . . . reflects EPS growth at 6%. 12 Utility (CHART) Enterprises and Parent 9¢ (1)¢ + 6% New Rates Old Rates +3¢ ? |
| Gross Operating Cash Flow . . . . 13 .. . . . growth continues. (CHART) $ bils _ _ _ _ _ a Non-GAAP a |
| 14 Gross Operating Cash Flow and EPS Growth . . . . .. . . . driven by investment growth. (CHART) Amount (bils) $ Gross operating cash flow a up $0.1 billion per year $1.8 Interest Working capital and taxes Base Investment $1.3 $1.6 $1.6 $1.7 $1.5 $1.9 Cash flow before dividend Investment choices _ _ _ _ _ a Non-GAAP |
| Bonus Depreciation . . . . Bonus Depreciation . . . . 15 .. . . . supports investment and extends use of NOLs. ? ? |
| Best in Class Risk Management . . . . Best in Class Risk Management . . . . .. . . . mitigates volatility. Old Opportunities Old Risks Decouple Decouple Cost Performance Reinvest 16 |
| Focus on Customers and Owners. . . . .. . . . paying off. Owners _ _ _ _ _ a Adjusted EPS (non-GAAP) excluding MTM in 2004-2006 b $1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock Dividend Annual ¢/share Payout 25% 30% $1.20 $1.25 40% $1.21 b $1.26 $1.35 84¢ 8% CAGR 5%-7% Growth +68% 17 Key Takeaways Restructured and grew Intense customer focus Investment Performance Clear owner commitment EPS growth Dividend (up 68% 2010) No need for equity Robust risk mitigation (CHART) $1.44 Actual a Guidance |
| Appendix |
| 2011 Sensitivities . . . . _ _ _ _ _ * Less than 0.5¢ or $500,000 .. . . . partly mitigated. .. . . . partly mitigated. - + - + 19 |
| 2011 Cash Flow Forecast (non-GAAP) CMS Energy Parent Consumers Energy _ _ _ _ _ a Includes other _ _ _ _ _ b Includes cost of removal and capital leases $200 20 |
| Consumers Capital Expenditures 21 |
| Federal Tax Benefits 22 |
| Adjusted EPS (non-GAAP) by Business Segment 23 |
| Electric Customer Base Diversified . . . . Hemlock Semiconductor General Motors State of Michigan Meijer Incorporated Nexteer Automotive Corporation Packaging Corporation of America Gerdau MacSteel Denso International Spectrum Health City of Grand Rapids Percent of 2010 electric gross margin is 2% Top Ten Customers Residential Commercial Autos Industrial Other (including ROA) 0.48 0.31 0.04 0.1 0.07 $1.95 Billion .. . . . "Autos" only 4% of gross margin. 2010 Electric Gross Margin Note: "Autos" includes 180 Business Partners identified by customer account managers 24 |
| Michigan Utility Regulatory Construct . . . . Michigan Utility Regulatory Construct . . . . Source: Barclays Capital, Regulatory Research Associates, 2-7-11 CMS - Michigan Fuel cost recovery CWIP Self-implementation Forward test year Decoupling ? ? ? ? ? .. . . . compares favorably. 25 |
| Michigan Energy Law . . . . Natural gas and power supply costs pass through to customers Cap on customer choice - 10% of load Sales decoupling Customer charge in place for renewable energy and energy optimization plans Self-implement rates six months after filing; final decision within 12 months .. . . . provides constructive regulatory framework. Working ? ? ? ? ? 26 |
| Michigan Public Service Commission (MPSC) Composed of three members appointed by the Governor with the advice and consent of the Senate Appointed to serve staggered six-year terms No more than two Commissioners may represent the same political party One Commissioner is designated as Chairman by the Governor Orjiakor Isiogu, Chairman Appointed: 9/9/07 Term Ends: 7/2/13 Democrat Monica Martinez, Commissioner Appointed: 7/3/05 Term Ends: 7/2/11 Democrat Greg White, Commissioner Appointed: 12/4/09 Term Ends: 7/2/15 Independent 27 |
| Michigan Political Leadership Governor Rick Snyder Senate Majority Leader: Randy Richardville Minority Leader: Gretchen Whitmer Technology and Energy Committee Chair: Mike Nofs House Speaker: Jase Bolger Minority Leader: Richard Hamel Energy and Technology Committee Chair: Ken Horn Chair Senate Carl Levin Armed Services Debbie Stabenow Agriculture, Nutrition and Forestry House Fred Upton Energy and Commerce Dave Camp Ways and Means Mike Rogers Intelligence Sandy Levin Ranking Democrat, Ways and Means State United States 28 |
| GAAP Reconciliation |
CMS Energy
Earnings Reconciliation By Quarter and Year
December 31
Earnings Reconciliation By Quarter and Year
December 31
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
| Unaudited Quarters | ||||||||||||||||||||
| (millions, except per share amounts) | 1Q03 | 2Q03 | 3Q03 | 4Q03 | FY 2003 | |||||||||||||||
Reported net income | $ | 82 | $ | (65 | ) | $ | (69 | ) | $ | 8 | $ | (44 | ) | |||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility other | 30 | 30 | ||||||||||||||||||
| Enterprises other | 5 | 7 | 62 | 37 | 111 | |||||||||||||||
| Corporate other | 1 | 19 | 4 | 24 | ||||||||||||||||
| Discontinued operations | (31 | ) | 53 | (2 | ) | (43 | ) | (23 | ) | |||||||||||
| Cumulative accounting changes | 24 | 24 | ||||||||||||||||||
Ongoing earnings (non-GAAP) | $ | 81 | $ | (5 | ) | $ | 10 | $ | 36 | $ | 122 | |||||||||
Average shares outstanding, basic | 144.1 | 144.1 | 152.2 | 161.1 | 150.4 | |||||||||||||||
Average shares outstanding, diluted | 165.0 | 144.1 | 152.2 | 161.1 | 150.4 | |||||||||||||||
Reported earnings per share | $ | 0.52 | $ | (0.45 | ) | $ | (0.46 | ) | $ | 0.05 | $ | (0.30 | ) | |||||||
After-tax items | ||||||||||||||||||||
| Electric and gas utility other | 0.19 | 0.21 | ||||||||||||||||||
| Enterprises other | 0.03 | 0.05 | 0.41 | 0.23 | 0.74 | |||||||||||||||
| Corporate other | 0.12 | 0.02 | 0.16 | |||||||||||||||||
| Discontinued operations | (0.19 | ) | 0.37 | (0.01 | ) | (0.27 | ) | (0.16 | ) | |||||||||||
| Cumulative accounting changes | 0.14 | 0.16 | ||||||||||||||||||
Ongoing earnings per share (non-GAAP) | $ | 0.50 | $ | (0.03 | ) | $ | 0.06 | $ | 0.22 | $ | 0.81 | |||||||||
| Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences. | ||
2003 A-1
CMS Energy
Earnings Reconciliation By Quarter and Year
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
| Unaudited | 31-Dec | |||||||||||||||||||
| (millions, except per share amounts) | 1Q04* | 2Q04 | 3Q04 | 4Q04 | FY 2004 | |||||||||||||||
Reported net income — GAAP | $ | (9 | ) | $ | 16 | $ | 56 | $ | 47 | $ | 110 | |||||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility other | (67 | ) | (67 | ) | ||||||||||||||||
| Enterprises other | 88 | (29 | ) | 48 | 107 | |||||||||||||||
| Corporate other | (7 | ) | (1 | ) | 1 | (7 | ) | |||||||||||||
| Discontinued operations | 2 | (8 | ) | 10 | 4 | |||||||||||||||
| Cumulative accounting changes | 2 | 2 | ||||||||||||||||||
Adjusted earnings, including M-T-M | $ | 76 | $ | 16 | $ | 18 | $ | 39 | $ | 149 | ||||||||||
| Mark-to-market impacts | NM | (13 | ) | 9 | 9 | 5 | ||||||||||||||
Adjusted earnings, excluding M-T-M | $ | 76 | $ | 3 | $ | 27 | $ | 48 | $ | 154 | ||||||||||
Average shares outstanding, basic | 161.1 | 161.2 | 161.5 | 190.2 | 168.6 | |||||||||||||||
Average shares outstanding, diluted | 161.1 | 164.2 | 165.0 | 194.0 | 172.1 | |||||||||||||||
Reported earnings per share — GAAP | $ | (0.06 | ) | $ | 0.10 | $ | 0.34 | $ | 0.24 | $ | 0.64 | |||||||||
After-tax items | ||||||||||||||||||||
| Electric and gas utility other | (0.35 | ) | (0.39 | ) | ||||||||||||||||
| Enterprises other | 0.56 | (0.17 | ) | 0.25 | 0.62 | |||||||||||||||
| Corporate other | (0.05 | ) | (0.01 | ) | 0.01 | (0.03 | ) | |||||||||||||
| Discontinued operations | 0.01 | (0.05 | ) | 0.05 | 0.02 | |||||||||||||||
| Cumulative accounting changes | 0.01 | 0.01 | ||||||||||||||||||
Adjusted earnings per share, including M-T-M | $ | 0.47 | $ | 0.10 | $ | 0.11 | $ | 0.20 | $ | 0.87 | ||||||||||
| Mark-to-market impacts | NM | (0.08 | ) | 0.06 | 0.05 | 0.03 | ||||||||||||||
Adjusted earnings per share, excluding M-T-M | $ | 0.47 | $ | 0.02 | $ | 0.17 | $ | 0.25 | $ | 0.90 | ||||||||||
| Note: Year-to-date & full-year EPS may not equal sum of quarters due to share count differences. | ||
| * | Quarterly amounts differ from amounts previously reported due to accelerating the measurement date on our benefit plans by one month and the remeasurement of our post retirement obligation. | |
| NM: Not meaningful. | ||
2004 A-1
CMS Energy
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
| Unaudited | 31-Dec | |||||||||||||||||||
| (millions, except per share amounts) | 1Q05 | 2Q05 | 3Q05 | 4Q05 | FY 2005 | |||||||||||||||
Reported net income — GAAP | $ | 150 | $ | 27 | $ | (265 | ) | $ | (6 | ) | $ | (94 | ) | |||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility other | ||||||||||||||||||||
| Enterprises other | (2 | ) | (1 | ) | (1 | ) | 13 | 9 | ||||||||||||
| Corporate other | 1 | 8 | 9 | |||||||||||||||||
| Discontinued operations | (14 | ) | (14 | ) | ||||||||||||||||
| Asset impairment | 385 | 385 | ||||||||||||||||||
Adjusted earnings, including M-T-M | $ | 148 | $ | 27 | $ | 119 | $ | 1 | $ | 295 | ||||||||||
| Mark-to-market impacts | (75 | ) | 19 | (75 | ) | 40 | (91 | ) | ||||||||||||
Adjusted earnings, excluding M-T-M | $ | 73 | $ | 46 | $ | 44 | $ | 41 | $ | 204 | ||||||||||
Average shares outstanding, basic | 195.3 | 217.9 | 219.6 | 218.5 | 211.8 | |||||||||||||||
Average shares outstanding, diluted | 206.3 | 228.9 | 219.6 | 218.5 | 211.8 | |||||||||||||||
Reported earnings per share — GAAP | $ | 0.74 | $ | 0.12 | $ | (1.21 | ) | $ | (0.03 | ) | $ | (0.44 | ) | |||||||
After-tax items | ||||||||||||||||||||
| Electric and gas utility other | ||||||||||||||||||||
| Enterprises other | (0.01 | ) | NM | NM | 0.06 | 0.04 | ||||||||||||||
| Corporate other | NM | 0.03 | 0.04 | |||||||||||||||||
| Discontinued operations | (0.06 | ) | (0.07 | ) | ||||||||||||||||
| Asset impairment | 1.75 | 1.82 | ||||||||||||||||||
Adjusted earnings per share, including M-T-M | $ | 0.73 | $ | 0.12 | $ | 0.54 | $ | 0.00 | $ | 1.39 | ||||||||||
| Mark-to-market impacts | (0.36 | ) | 0.08 | (0.34 | ) | 0.19 | (0.43 | ) | ||||||||||||
Adjusted earnings per share, excluding M-T-M | $ | 0.37 | $ | 0.20 | $ | 0.20 | $ | 0.19 | $ | 0.96 | ||||||||||
| Note: Year-to-date & full-year EPS may not equal sum of quarters due to share count differences. | ||
2005 A-1
CMS Energy
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
| Unaudited | ||||||||||||||||||||
| 2006 | 2006 | |||||||||||||||||||
| (In millions, except per share amounts) | 1Q | 2Q | 3Q | 4Q | Dec YTD | |||||||||||||||
Reported net income — GAAP | $ | (27 | ) | $ | 72 | $ | (103 | ) | $ | (32 | ) | $ | (90 | ) | ||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility other | — | — | — | — | — | |||||||||||||||
| Enterprises other | — | — | (29 | ) | 25 | (4 | ) | |||||||||||||
| Corporate interest and other | 2 | (15 | ) | 4 | 82 | 73 | ||||||||||||||
| Discontinued operations (gain) | (1 | ) | (2 | ) | (1 | ) | (2 | ) | (6 | ) | ||||||||||
| Asset impairment charges | — | — | 169 | — | 169 | |||||||||||||||
Adjusted earnings, including MTM | $ | (26 | ) | $ | 55 | $ | 40 | $ | 73 | $ | 142 | |||||||||
| Mark-to-market impacts | 74 | 21 | 30 | (13 | ) | 112 | ||||||||||||||
Adjusted earnings, excluding MTM | $ | 48 | $ | 76 | $ | 70 | $ | 60 | $ | 254 | ||||||||||
Average shares outstanding, basic | 219.1 | 219.6 | 220.1 | 220.6 | 219.9 | |||||||||||||||
Average shares outstanding, diluted | 219.1 | 229.6 | 220.1 | 220.6 | 219.9 | |||||||||||||||
Reported earnings per share — GAAP | $ | (0.12 | ) | $ | 0.31 | $ | (0.47 | ) | $ | (0.15 | ) | $ | (0.41 | ) | ||||||
After-tax items | ||||||||||||||||||||
| Electric and gas utility other | — | — | — | — | — | |||||||||||||||
| Enterprises other | — | — | (0.13 | ) | 0.11 | (0.02 | ) | |||||||||||||
| Corporate other | 0.01 | (0.07 | ) | 0.02 | 0.38 | 0.27 | ||||||||||||||
| Discontinued operations | (0.01 | ) | (0.01 | ) | — | (0.01 | ) | (0.03 | ) | |||||||||||
| Asset impairment charges | — | — | 0.76 | — | 0.76 | |||||||||||||||
Adjusted earnings per share, including MTM | $ | (0.12 | ) | $ | 0.23 | $ | 0.18 | $ | 0.33 | $ | 0.57 | |||||||||
| Mark-to-market impacts | 0.34 | 0.10 | 0.13 | (0.06 | ) | 0.51 | ||||||||||||||
Adjusted earnings per share, excluding MTM | $ | 0.22 | $ | 0.33 | $ | 0.31 | $ | 0.27 | $ | 1.08 | ||||||||||
| Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences. | ||
| NM: | Not Meaningful. | |
2006 A-1
CMS Energy Corporation
Earnings By Quarter and Year GAAP Reconciliation
(Unaudited)
| (In millions, except per share amounts) | ||||||||||||||||||||
| 2007 | ||||||||||||||||||||
| 1Q | 2Q | 3Q | 4Q | Dec YTD | ||||||||||||||||
Reported net income (loss) — GAAP | $ | (215 | ) | $ | 33 | $ | 82 | $ | (127 | ) | $ | (227 | ) | |||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility | 4 | — | — | — | 4 | |||||||||||||||
| Enterprises | 49 | 19 | (10 | ) | 222 | 280 | ||||||||||||||
| Corporate interest and other | (81 | ) | 32 | 9 | (38 | ) | (78 | ) | ||||||||||||
| Discontinued operations (income) loss | 178 | (91 | ) | — | 2 | 89 | ||||||||||||||
| Asset impairment charges, net | 157 | 25 | (49 | ) | — | 133 | ||||||||||||||
Adjusted income — non-GAAP | $ | 92 | $ | 18 | $ | 32 | $ | 59 | $ | 201 | ||||||||||
Average shares outstanding, basic | 221.5 | 222.6 | 223.0 | 223.4 | 222.6 | |||||||||||||||
Average shares outstanding, diluted | 221.5 | 222.6 | 241.3 | 223.4 | 222.6 | |||||||||||||||
Reported earnings (loss) per share — GAAP | $ | (0.97 | ) | $ | 0.15 | $ | 0.34 | $ | (0.57 | ) | $ | (1.02 | ) | |||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility | 0.01 | — | — | — | (0.07 | ) | ||||||||||||||
| Enterprises | 0.23 | 0.08 | (0.04 | ) | 0.99 | 1.25 | ||||||||||||||
| Corporate interest and other | (0.36 | ) | 0.15 | 0.03 | (0.17 | ) | (0.32 | ) | ||||||||||||
| Discontinued operations (income) loss | 0.80 | (0.41 | ) | — | 0.01 | 0.40 | ||||||||||||||
| Asset impairment charges, net | 0.71 | 0.11 | (0.20 | ) | — | 0.60 | ||||||||||||||
Adjusted earnings per share — non-GAAP | $ | 0.42 | $ | 0.08 | $ | 0.13 | $ | 0.26 | $ | 0.84 | ||||||||||
| (In millions, except per share amounts) | 2008 | |||||||||||||||||||
| 1Q | 2Q | 3Q | 4Q | Dec YTD | ||||||||||||||||
Reported net income — GAAP | $ | 102 | $ | 44 | $ | 78 | $ | 60 | $ | 284 | ||||||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility | — | 1 | 6 | 5 | 12 | |||||||||||||||
| Enterprises | * | (4 | ) | * | 1 | (3 | ) | |||||||||||||
| Corporate interest and other | — | — | (6 | ) | 1 | (5 | ) | |||||||||||||
| Discontinued operations (income) loss | (1 | ) | 1 | (1 | ) | * | (1 | ) | ||||||||||||
Adjusted income — non-GAAP | $ | 101 | $ | 42 | $ | 77 | $ | 67 | $ | 287 | ||||||||||
Average shares outstanding, basic | 225.2 | 225.4 | 225.8 | 226.3 | 225.7 | |||||||||||||||
Average shares outstanding, diluted | 237.6 | 240.6 | 236.3 | 228.1 | 236.2 | |||||||||||||||
Reported earnings per share — GAAP | $ | 0.43 | $ | 0.18 | $ | 0.33 | $ | 0.26 | $ | 1.20 | ||||||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility | — | 0.01 | 0.02 | 0.03 | 0.05 | |||||||||||||||
| Enterprises | * | (0.02 | ) | 0.01 | 0.01 | (0.02 | ) | |||||||||||||
| Corporate interest and other | — | — | (0.03 | ) | * | (0.02 | ) | |||||||||||||
| Discontinued operations (income) loss | ( | *) | — | (0.01 | ) | * | ( | *) | ||||||||||||
Adjusted earnings per share — non-GAAP (a) | $ | 0.43 | $ | 0.17 | $ | 0.32 | $ | 0.30 | $ | 1.21 | ||||||||||
| Note: | Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences. | |
| * | Less than $500 thousand or $0.01 per share. | |
| (a) | Excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock, adjusted earnings per share was $0.44, $0.19, $0.33, $0.30, and $1.25, respectively. |
2008 A-1
CMS ENERGY CORPORATION
Earnings By Quarter and Year GAAP Reconciliation
(Unaudited)
| (In millions, except per share amounts) | 2009 | |||||||||||||||||||
| 1Q | 2Q | 3Q | 4Q | Dec YTD | ||||||||||||||||
Reported net income — GAAP | $ | 70 | $ | 75 | $ | 67 | $ | 6 | $ | 218 | ||||||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility | — | — | — | 79 | 79 | |||||||||||||||
| Enterprises | * | 16 | 2 | 4 | 22 | |||||||||||||||
| Corporate interest and other | * | 1 | 1 | (1 | ) | 1 | ||||||||||||||
| Discontinued operations (income) loss | 1 | (25 | ) | 1 | 3 | (20 | ) | |||||||||||||
Adjusted income — non-GAAP | $ | 71 | $ | 67 | $ | 71 | $ | 91 | $ | 300 | ||||||||||
Average shares outstanding, basic | 226.6 | 226.9 | 227.3 | 227.8 | 227.2 | |||||||||||||||
Average shares outstanding, diluted | 233.2 | 234.6 | 238.5 | 243.0 | 237.9 | |||||||||||||||
Reported earnings per share — GAAP | $ | 0.30 | $ | 0.32 | $ | 0.28 | $ | 0.02 | $ | 0.91 | ||||||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility | — | — | — | 0.33 | 0.33 | |||||||||||||||
| Enterprises | * | 0.07 | 0.01 | 0.02 | 0.09 | |||||||||||||||
| Corporate interest and other | * | * | * | ( | *) | 0.01 | ||||||||||||||
| Discontinued operations (income) loss | 0.01 | (0.11 | ) | 0.01 | 0.01 | (0.08 | ) | |||||||||||||
Adjusted earnings per share — non-GAAP | $ | 0.31 | $ | 0.28 | $ | 0.30 | $ | 0.38 | $ | 1.26 | ||||||||||
| (In millions, except per share amounts) | 2010 | |||||||||||||||||||
| 1Q | 2Q | 3Q | 4Q | YTD Dec | ||||||||||||||||
Reported net income — GAAP | $ | 85 | $ | 80 | $ | 134 | $ | 25 | $ | 324 | ||||||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility | 6 | — | — | — | 6 | |||||||||||||||
| Enterprises | 1 | (31 | ) | (2 | ) | 24 | (8 | ) | ||||||||||||
| Corporate interest and other | * | * | — | ( | *) | * | ||||||||||||||
| Discontinued operations loss | 1 | 16 | * | 6 | 23 | |||||||||||||||
Adjusted income — non-GAAP | $ | 93 | $ | 65 | $ | 132 | $ | 55 | $ | 345 | ||||||||||
Average shares outstanding, basic | 228.0 | 228.2 | 229.0 | 240.7 | 231.5 | |||||||||||||||
Average shares outstanding, diluted | 246.5 | 247.6 | 254.7 | 258.4 | 252.9 | |||||||||||||||
Reported earnings per share — GAAP | $ | 0.34 | $ | 0.32 | $ | 0.53 | $ | 0.09 | $ | 1.28 | ||||||||||
After-tax items: | ||||||||||||||||||||
| Electric and gas utility | 0.03 | — | — | — | 0.03 | |||||||||||||||
| Enterprises | * | (0.13 | ) | (0.01 | ) | 0.10 | (0.03 | ) | ||||||||||||
| Corporate interest and other | * | * | — | ( | *) | * | ||||||||||||||
| Discontinued operations loss | 0.01 | 0.07 | * | 0.02 | 0.08 | |||||||||||||||
Adjusted earnings per share — non-GAAP | $ | 0.38 | $ | 0.26 | $ | 0.52 | $ | 0.21 | $ | 1.36 | ||||||||||
| Note: | Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences. | |
| * | Less than $500 thousand or $0.01 per share. |
2010 A-1
CMS ENERGY CORPORATION
Earnings Segment Results GAAP Reconciliation
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31 | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Electric Utility | ||||||||||||||||
| Reported | $ | 0.08 | $ | (0.10 | ) | $ | 1.20 | $ | 0.82 | |||||||
| Downsizing Program | — | — | 0.02 | — | ||||||||||||
| Asset Sales Loss and Other | — | 0.33 | — | 0.33 | ||||||||||||
| Adjusted | $ | 0.08 | $ | 0.23 | $ | 1.22 | $ | 1.15 | ||||||||
Gas Utility | ||||||||||||||||
| Reported | $ | 0.22 | $ | 0.18 | $ | 0.50 | $ | 0.41 | ||||||||
| Downsizing Program | — | — | 0.01 | — | ||||||||||||
| Adjusted | $ | 0.22 | $ | 0.18 | $ | 0.51 | $ | 0.41 | ||||||||
Enterprises | ||||||||||||||||
| Reported | $ | (0.07 | ) | $ | ( | *) | $ | 0.14 | $ | (0.03 | ) | |||||
| Asset Sales (Gain) Loss and Other | 0.10 | 0.02 | (0.03 | ) | 0.09 | |||||||||||
| Adjusted | $ | 0.03 | $ | 0.02 | $ | 0.11 | $ | 0.06 | ||||||||
Corporate Interest and Other | ||||||||||||||||
| Reported | $ | (0.12 | ) | $ | (0.05 | ) | $ | (0.48 | ) | $ | (0.37 | ) | ||||
| Asset Sales (Gain) Loss and Other | ( | *) | ( | *) | ( | *) | 0.01 | |||||||||
| Adjusted | $ | (0.12 | ) | $ | (0.05 | ) | $ | (0.48 | ) | $ | (0.36 | ) | ||||
Discontinued Operations | ||||||||||||||||
| Reported | (0.02 | ) | $ | (0.01 | ) | $ | (0.08 | ) | $ | 0.08 | ||||||
| Discontinued Operations Loss (Income) | 0.02 | 0.01 | 0.08 | (0.08 | ) | |||||||||||
| Adjusted | $ | — | $ | — | $ | — | $ | — | ||||||||
Totals | ||||||||||||||||
| Reported | $ | 0.09 | $ | 0.02 | $ | 1.28 | $ | 0.91 | ||||||||
| Discontinued Operations Loss (Income) | 0.02 | 0.01 | 0.08 | (0.08 | ) | |||||||||||
| Downsizing Program | — | — | 0.03 | — | ||||||||||||
| Asset Sales (Gain) Loss and Other | 0.10 | 0.35 | (0.03 | ) | 0.43 | |||||||||||
| Adjusted | $ | 0.21 | $ | 0.38 | $ | 1.36 | $ | 1.26 | ||||||||
Average Common Shares Outstanding — Diluted (in millions) | 258.4 | 243.0 | 252.9 | 237.9 | ||||||||||||
| * | Less than $0.01 per share. |
2010 A-2
Consumers Energy
2010 Cash Flow GAAP Reconciliation (in millions) (unaudited)
| Reclassifications From Sources and Uses to Statement of Cash Flows | ||||||||||||||||||||||||||||||||||||||||||||||||
| Presentation Sources and Uses | Tax | Interest | Pension | Other | Accts/Rec | Capital | Securitization | Preferred | Common | Consolidated Statements of Cash Flows | ||||||||||||||||||||||||||||||||||||||
| non-GAAP | Sharing | Payments | Contribution | Reclass | Financing | Lease Pymts | Debt Pymts | Dividends | Dividends | GAAP | ||||||||||||||||||||||||||||||||||||||
| Description | Amount | Operating | as Operating | as Operating | & rounding | as Operating | as Financing | as Financing | as Financing | as Financing | Amount | Description | ||||||||||||||||||||||||||||||||||||
| Cash at year end 2009 | $ | 39 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 39 | Cash at year end 2009 | |||||||||||||||||||||||||
Sources | ||||||||||||||||||||||||||||||||||||||||||||||||
| Operating | $ | 1,498 | $ | (123 | ) | $ | (221 | ) | $ | — | $ | — | $ | — | $ | 23 | $ | 35 | $ | — | $ | — | $ | 1,212 | ||||||||||||||||||||||||
| Other working capital | 129 | — | — | (364 | ) | (17 | ) | (50 | ) | — | — | — | — | (302 | ) | Net cash provided by operating activities | ||||||||||||||||||||||||||||||||
| Sources | $ | 1,627 | $ | (123 | ) | $ | (221 | ) | $ | (364 | ) | $ | (17 | ) | $ | (50 | ) | $ | 23 | $ | 35 | $ | — | $ | — | $ | 910 | |||||||||||||||||||||
Uses | ||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and preferred dividends | $ | (223 | ) | $ | — | $ | 221 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2 | $ | — | $ | — | |||||||||||||||||||||||||
| Pension Contribution | (364 | ) | — | — | 364 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
| Capital expenditures | (877 | ) | — | — | — | 18 | — | — | — | — | — | (859 | ) | |||||||||||||||||||||||||||||||||||
| Dividends/tax sharing to CMS | (481 | ) | 123 | — | — | — | — | — | — | — | 358 | — | Net cash provided by investing activities | |||||||||||||||||||||||||||||||||||
| Uses | $ | (1,945 | ) | $ | 123 | $ | 221 | $ | 364 | $ | 18 | $ | — | $ | — | $ | — | $ | 2 | $ | 358 | $ | (859 | ) | ||||||||||||||||||||||||
Cash flow | $ | (318 | ) | $ | — | $ | — | $ | — | $ | 1 | $ | (50 | ) | $ | 23 | $ | 35 | $ | 2 | $ | 358 | $ | 51 | Cash flow from operating and investing activities | |||||||||||||||||||||||
Financing | ||||||||||||||||||||||||||||||||||||||||||||||||
| Equity | $ | 250 | $ | — | $ | — | $ | — | $ | (1 | ) | $ | — | $ | — | $ | — | $ | (2 | ) | $ | — | $ | 247 | ||||||||||||||||||||||||
| New Issues | 600 | — | — | — | — | — | — | — | — | — | 600 | |||||||||||||||||||||||||||||||||||||
| Retirements | (446 | ) | — | — | — | — | — | (23 | ) | (35 | ) | — | (358 | ) | (862 | ) | ||||||||||||||||||||||||||||||||
| Net short-term financing & other | (54 | ) | — | — | — | — | 50 | — | — | — | — | (4 | ) | Net cash provided by financing activities | ||||||||||||||||||||||||||||||||||
| Financing | $ | 350 | $ | — | $ | — | $ | — | $ | (1 | ) | $ | 50 | $ | (23 | ) | $ | (35 | ) | $ | (2 | ) | $ | (358 | ) | $ | (19 | ) | ||||||||||||||||||||
Net change in cash | $ | 32 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 32 | Net change in cash | |||||||||||||||||||||||||
Cash at year end 2010 | $ | 71 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 71 | Cash at year end 2010 | |||||||||||||||||||||||||
2010 A-3
CMS Energy Parent
2010 Cash Flow GAAP Reconciliation (in millions) (unaudited)
| Reclassifications From Sources and Uses to Statement of Cash Flows | ||||||||||||||||||||||||||||||||||||
| Presentation Sources and Uses | Interest | Overheads & | Other | Preferred | Preferred | Cash From | Consolidated Statements of Cash Flows | |||||||||||||||||||||||||||||
| non-GAAP | Payments | Tax Payments | Uses (a) | Dividends | Dividends | Consolidated | GAAP | |||||||||||||||||||||||||||||
| Description | Amount | as Operating | as Operating | as Operating | as Financing | as Financing | Companies | Amount | Description | |||||||||||||||||||||||||||
| Cash at year end 2009 | $ | 23 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 28 | $ | 51 | Cash at year end 2009 | |||||||||||||||||||
Sources | ||||||||||||||||||||||||||||||||||||
| Consumers Energy dividends/tax sharing | $ | 481 | $ | (128 | ) | $ | (10 | ) | $ | (32 | ) | $ | — | $ | (8 | ) | $ | — | $ | 303 | ||||||||||||||||
| Enterprises | 39 | 39 | ||||||||||||||||||||||||||||||||||
| Insurance settlement | 50 | — | — | — | — | — | 17 | 67 | Net cash provided by operating activities | |||||||||||||||||||||||||||
| Sources | $ | 570 | $ | (128 | ) | $ | (10 | ) | $ | (32 | ) | $ | — | $ | (8 | ) | $ | 17 | $ | 409 | ||||||||||||||||
Uses | ||||||||||||||||||||||||||||||||||||
| Interest and preferred dividends | $ | (136 | ) | $ | 128 | $ | — | $ | — | $ | 8 | $ | — | $ | — | $ | — | |||||||||||||||||||
| Overhead and Federal tax payments | (10 | ) | — | 10 | — | — | — | — | — | |||||||||||||||||||||||||||
| Pension Contributions | (11 | ) | — | — | 11 | — | — | — | — | |||||||||||||||||||||||||||
| Equity infusions | (250 | ) | — | — | 22 | — | — | (141 | ) | (369 | ) | Net cash provided by investing activities | ||||||||||||||||||||||||
| Uses (a) | $ | (432 | ) | $ | 128 | $ | 10 | $ | 33 | $ | 8 | $ | — | $ | (141 | ) | $ | (394 | ) | |||||||||||||||||
Cash flow | $ | 138 | $ | — | $ | — | $ | 1 | $ | 8 | $ | (8 | ) | $ | (124 | ) | $ | 15 | Cash flow from operating and investing activities | |||||||||||||||||
Financing and dividends | ||||||||||||||||||||||||||||||||||||
| New Issues | $ | 800 | $ | — | $ | — | $ | — | $ | (8 | ) | $ | 8 | $ | 149 | $ | 949 | |||||||||||||||||||
| Retirements | (609 | ) | — | — | — | — | — | (40 | ) | (649 | ) | |||||||||||||||||||||||||
| Net short-term financing & other | (36 | ) | — | — | — | — | — | — | (36 | ) | ||||||||||||||||||||||||||
| Common dividend | (153 | ) | — | — | — | — | — | — | (153 | ) | Net cash provided by financing activities | |||||||||||||||||||||||||
| Financing | $ | 2 | $ | — | $ | — | $ | — | $ | (8 | ) | $ | 8 | $ | 109 | $ | 111 | |||||||||||||||||||
Decrease (Increase) in Cash and Cash Equivalents Included in Assets Held for Sale | — | — | — | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||||||||||||
Net change in cash | $ | 140 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (15 | ) | $ | 125 | Net change in cash | ||||||||||||||||||
Cash at year end 2010 | $ | 163 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 13 | $ | 176 | Cash at year end 2010 | |||||||||||||||||||
| (a) | Includes other and roundings |
2010 A-4
Consolidated CMS Energy
2010 Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited)
| Eliminations/Reclassifications to Arrive at the Consolidated Statement of Cash Flows | ||||||||||||||||||||||||||||
| Statements of Cash Flows | Consumers | Consumers | Equity | |||||||||||||||||||||||||
| Consumers | CMS Parent | Common Dividend | Preferred Dividend | Infusions to | Consolidated Statements of Cash Flows | |||||||||||||||||||||||
| Description | Amount | Amount | as Financing | as Financing | Consumers | Amount | Description | |||||||||||||||||||||
Cash at year end 2009 | $ | 39 | $ | 51 | $ | — | $ | — | $ | — | $ | 90 | Cash at year end 2009 | |||||||||||||||
Net cash provided by operating activities | $ | 910 | $ | 409 | $ | (358 | ) | $ | (2 | ) | $ | — | $ | 959 | Net cash provided by operating activities | |||||||||||||
Net cash provided by investing activities | (859 | ) | (394 | ) | — | — | 250 | (1,003 | ) | Net cash provided by investing activities | ||||||||||||||||||
Cash flow from operating and investing activities | $ | 51 | $ | 15 | $ | (358 | ) | $ | (2 | ) | $ | 250 | $ | (44 | ) | Cash flow from operating and investing activities | ||||||||||||
Net cash provided by financing activities | $ | (19 | ) | $ | 111 | $ | 358 | $ | 2 | $ | (250 | ) | $ | 202 | Net cash provided by financing activities | |||||||||||||
Decrease (increase) in cash and cash equivalents included in assets held for sale | — | (1 | ) | — | — | — | (1 | ) | ||||||||||||||||||||
Net change in cash | $ | 32 | $ | 125 | $ | — | $ | — | $ | — | $ | 157 | Net change in cash | |||||||||||||||
Cash at year end 2010 | $ | 71 | $ | 176 | $ | — | $ | — | $ | — | $ | 247 | Cash at year end 2010 | |||||||||||||||
2010 A-5
Consumers Energy
2011 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)
| Reclassifications From Sources and Uses to Statement of Cash Flows | ||||||||||||||||||||||||||||||||||||||||||||
| Presentation Sources and Uses | Tax | Interest | Pension | Accts/Rec | Capital | Securitization | Preferred | Common | Consolidated Statements of Cash Flows | |||||||||||||||||||||||||||||||||||
| non-GAAP | Sharing | Payments | Contribution | Financing | Lease Pymts | Debt Pymts | Dividends | Dividends | GAAP | |||||||||||||||||||||||||||||||||||
| Description | Amount | Operating | as Operating | as Operating | as Operating | as Financing | as Financing | as Financing | as Financing | Amount | Description | |||||||||||||||||||||||||||||||||
| Cash at year end 2010 | $ | 71 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 71 | Cash at year end 2010 | |||||||||||||||||||||||
Sources | ||||||||||||||||||||||||||||||||||||||||||||
| Operating | $ | 1,520 | $ | 60 | $ | (233 | ) | $ | — | $ | — | $ | 23 | $ | 37 | $ | — | $ | — | $ | 1,407 | |||||||||||||||||||||||
| Other working capital | (5 | ) | — | — | — | — | — | — | — | — | (5 | ) | Net cash provided by operating activities | |||||||||||||||||||||||||||||||
| Sources | $ | 1,515 | $ | 60 | $ | (233 | ) | $ | — | $ | — | $ | 23 | $ | 37 | $ | — | $ | — | $ | 1,402 | |||||||||||||||||||||||
Uses | ||||||||||||||||||||||||||||||||||||||||||||
| Interest and preferred dividends | $ | (235 | ) | $ | — | $ | 233 | $ | — | $ | — | $ | — | $ | — | $ | 2 | $ | — | $ | — | |||||||||||||||||||||||
| Capital expenditures | (1,065 | ) | — | — | — | — | — | — | — | — | (1,065 | ) | ||||||||||||||||||||||||||||||||
| Dividends/tax sharing to CMS | (300 | ) | (60 | ) | — | — | — | — | — | — | 360 | — | Net cash provided by investing activities | |||||||||||||||||||||||||||||||
| Uses | $ | (1,600 | ) | $ | (60 | ) | $ | 233 | $ | — | $ | — | $ | — | $ | — | $ | 2 | $ | 360 | $ | (1,065 | ) | |||||||||||||||||||||
Cash flow | $ | (85 | ) | $ | — | $ | — | $ | — | $ | — | $ | 23 | $ | 37 | $ | 2 | $ | 360 | $ | 337 | Cash flow from operating and investing activities | ||||||||||||||||||||||
Financing | ||||||||||||||||||||||||||||||||||||||||||||
| Equity | $ | 125 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (2 | ) | $ | — | $ | 123 | |||||||||||||||||||||||
| New Issues | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Retirements | — | — | — | — | — | (23 | ) | (37 | ) | — | (360 | ) | (420 | ) | ||||||||||||||||||||||||||||||
| Net short-term financing & other | (5 | ) | — | — | — | — | — | — | — | — | (5 | ) | Net cash provided by financing activities | |||||||||||||||||||||||||||||||
| Financing | $ | 120 | $ | — | $ | — | $ | — | $ | — | $ | (23 | ) | $ | (37 | ) | $ | (2 | ) | $ | (360 | ) | $ | (302 | ) | |||||||||||||||||||
Net change in cash | $ | 35 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 35 | Net change in cash | |||||||||||||||||||||||
Cash at year end 2011 | $ | 106 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 106 | Cash at year end 2011 | |||||||||||||||||||||||
2011 A-1
CMS Energy Parent
2011 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)
| Reclassifications From Sources and Uses to Statement of Cash Flows | ||||||||||||||||||||||||||||||||
| Presentation Sources and Uses | Interest | Overheads & | Other | Preferred | Cash From | Consolidated Statements of Cash Flows | ||||||||||||||||||||||||||
| non-GAAP | Payments | Tax Payments | Uses (a) | Dividends | Consolidated | GAAP | ||||||||||||||||||||||||||
| Description | Amount | as Operating | as Operating | as Operating | as Financing | Companies | Amount | Description | ||||||||||||||||||||||||
| Cash at year end 2010 | $ | 163 | $ | — | $ | — | $ | — | $ | — | $ | 13 | $ | 176 | Cash at year end 2010 | |||||||||||||||||
Sources | ||||||||||||||||||||||||||||||||
| Consumers Energy dividends/tax sharing | $ | 300 | $ | (125 | ) | $ | (15 | ) | $ | — | $ | — | $ | — | $ | 160 | ||||||||||||||||
| Enterprises | 40 | 40 | ||||||||||||||||||||||||||||||
| Insurance settlement | — | — | — | (97 | ) | — | 7 | (90 | ) | Net cash provided by operating activities | ||||||||||||||||||||||
| Sources | $ | 340 | $ | (125 | ) | $ | (15 | ) | $ | (97 | ) | $ | — | $ | 7 | $ | 110 | |||||||||||||||
Uses | ||||||||||||||||||||||||||||||||
| Interest and preferred dividends | $ | (125 | ) | $ | 125 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
| Overhead and Federal tax payments | (15 | ) | — | 15 | — | — | — | — | ||||||||||||||||||||||||
| Equity infusions | (125 | ) | — | — | 97 | — | (60 | ) | (88 | ) | Net cash provided by investing activities | |||||||||||||||||||||
| Uses (a) | $ | (365 | ) | $ | 125 | $ | 15 | $ | 97 | $ | — | $ | (60 | ) | $ | (188 | ) | |||||||||||||||
Cash flow | $ | (25 | ) | $ | — | $ | — | $ | — | $ | — | $ | (53 | ) | $ | (78 | ) | Cash flow from operating and investing activities | ||||||||||||||
Financing and dividends | ||||||||||||||||||||||||||||||||
| New Issues | $ | 250 | $ | — | $ | — | $ | — | $ | — | $ | 53 | $ | 303 | ||||||||||||||||||
| Retirements | (150 | ) | — | — | — | — | — | (150 | ) | |||||||||||||||||||||||
| Net short-term financing & other | 20 | — | — | — | — | — | 20 | |||||||||||||||||||||||||
| Common dividend | (210 | ) | — | — | — | — | — | (210 | ) | Net cash provided by financing activities | ||||||||||||||||||||||
| Financing | $ | (90 | ) | $ | — | $ | — | $ | — | $ | — | $ | 53 | $ | (37 | ) | ||||||||||||||||
Net change in cash | $ | (115 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (115 | ) | Net change in cash | |||||||||||||||
Cash at year end 2011 | $ | 48 | $ | — | $ | — | $ | — | $ | — | $ | 13 | $ | 61 | Cash at year end 2011 | |||||||||||||||||
| (a) | Includes other and roundings |
2011 A-2
Consolidated CMS Energy
2011 Forecasted Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited)
| Eliminations/Reclassifications to Arrive at the Consolidated Statement of Cash Flows | ||||||||||||||||||||||||||||
| Statements of Cash Flows | Consumers | Consumers | Equity | |||||||||||||||||||||||||
| Consumers | CMS Parent | Common Dividend | Preferred Dividend | Infusions to | Consolidated Statements of Cash Flows | |||||||||||||||||||||||
| Description | Amount | Amount | as Financing | as Operating | Consumers | Amount | Description | |||||||||||||||||||||
Cash at year end 2009 | $ | 71 | $ | 176 | $ | — | $ | — | $ | — | $ | 247 | Cash at year end 2009 | |||||||||||||||
Net cash provided by operating activities | $ | 1,402 | $ | 110 | $ | (360 | ) | $ | (2 | ) | $ | — | $ | 1,150 | Net cash provided by operating activities | |||||||||||||
Net cash provided by investing activities | (1,065 | ) | (188 | ) | — | — | 125 | (1,128 | ) | Net cash provided by investing activities | ||||||||||||||||||
Cash flow from operating and investing activities | $ | 337 | $ | (78 | ) | $ | (360 | ) | $ | (2 | ) | $ | 125 | $ | 22 | Cash flow from operating and investing activities | ||||||||||||
Net cash provided by financing activities | $ | (302 | ) | $ | (37 | ) | $ | 360 | $ | 2 | $ | (125 | ) | $ | (102 | ) | Net cash provided by financing activities | |||||||||||
Net change in cash | $ | 35 | $ | (115 | ) | $ | — | $ | — | $ | — | $ | (80 | ) | Net change in cash | |||||||||||||
Cash at year end 2010 | $ | 106 | $ | 61 | $ | — | $ | — | $ | — | $ | 167 | Cash at year end 2010 | |||||||||||||||
2011 A-3
CMS Energy
Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities
(unaudited)
(mils)
| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||||||||
| Consumers Operating Income + Depreciation & Amortization | $ | 1,248 | $ | 1,498 | $ | 1,520 | $ | 1,601 | $ | 1,657 | $ | 1,757 | $ | 1,872 | ||||||||||||||
| Enterprises Project Cash Flows | 16 | 39 | 40 | 35 | 47 | 47 | 46 | |||||||||||||||||||||
Gross Operating Cash Flow | $ | 1,264 | $ | 1,537 | $ | 1,560 | $ | 1,636 | $ | 1,704 | $ | 1,804 | $ | 1,918 | ||||||||||||||
| Other operating activies including taxes, interest payments and working capital | (416 | ) | (578 | ) | (410 | ) | (406 | ) | (472 | ) | (439 | ) | (835 | ) | ||||||||||||||
Net cash provided by operating activites | $ | 848 | $ | 959 | $ | 1,150 | $ | 1,230 | $ | 1,232 | $ | 1,365 | $ | 1,083 | ||||||||||||||
2011 A-4
CMS Energy
Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities
(unaudited)
(mils)
| Five Year | ||||||||||||||||||||||||
| 2004 | 2005 | 2006 | 2007 | 2008 | Average | |||||||||||||||||||
| Utility Operating Income + Depreciation & Amortization | $ | 1,022 | $ | 899 | $ | 1,021 | $ | 1,085 | $ | 1,317 | $ | 1,069 | ||||||||||||
| Enterprises Project Cash Flows | 131 | 294 | 154 | (30 | ) | 28 | 115 | |||||||||||||||||
Gross Operating Cash Flow | $ | 1,153 | $ | 1,193 | $ | 1,175 | $ | 1,055 | $ | 1,345 | $ | 1,184 | ||||||||||||
| Other operating activies including taxes, interest payments and working capital | (800 | ) | (595 | ) | (487 | ) | (1,032 | ) | (788 | ) | (740 | ) | ||||||||||||
Net cash provided by operating activites | $ | 353 | $ | 598 | $ | 688 | $ | 23 | $ | 557 | $ | 444 | ||||||||||||
2011 A-5