CMS Energy Corp (CMS) has reported a 21.34 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $199 million, or $0.71 a share in the quarter, compared with $164 million, or $0.59 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $200 million, or $0.71 a share compared with $164 million or $0.59 a share, a year ago.
Revenue during the quarter went up marginally by 1.55 percent to $1,829 million from $1,801 million in the previous year period. Total expenses were 78.79 percent of quarterly revenues, down from 81.90 percent for the same period last year. This has led to an improvement of 311 basis points in operating margin to 21.21 percent.
Operating income for the quarter was $388 million, compared with $326 million in the previous year period.
"We are committed to safety as evidenced by zero employee safety incidents during our recent catastrophic storm," said Patti Poppe, chief executive officer and president of CMS Energy and Consumers Energy. "To continue our pledge of leaving the planet better than we found it, CMS Energy is increasing our renewable energy capacity as well as investing in energy efficiency and demand response programs which benefit our customers while providing for a more nimble generation fleet."
For financial year 2017, CMS Energy Corp projects diluted earnings per share to be in the range of $2.14 to $2.18 on adjusted basis.
Operating cash flow improves marginally
CMS Energy Corp has generated cash of $646 million from operating activities during the quarter, up 2.22 percent or $14 million, when compared with the last year period.
The company has spent $346 million cash to meet investing activities during the quarter as against cash outgo of $444 million in the last year period.
The company has spent $94 million cash to carry out financing activities during the quarter as against cash outgo of $270 million in the last year period.
Working capital turns positive
Working capital of CMS Energy Corp has turned positive to $1,101 million on Mar. 31, 2017 from negative $157 million on Mar. 31, 2016. Current ratio was at 1.99 as on Mar. 31, 2017, up from 0.92 on Mar. 31, 2016.
Days sales outstanding went down to 23 days for the quarter compared with 46 days for the same period last year.
Debt moves up
CMS Energy Corp has witnessed an increase in total debt over the last one year. It stood at $10,045 million as on Mar. 31, 2017, up 8.78 percent or $811 million from $9,234 million on Mar. 31, 2016. Total debt was 46.46 percent of total assets as on Mar. 31, 2017, compared with 46.08 percent on Mar. 31, 2016. Debt to equity ratio was at 2.28 as on Mar. 31, 2017, up from 2.23 as on Mar. 31, 2016. Interest coverage ratio improved to 3.63 for the quarter from 3.08 for the same period last year.
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