10-QPeriod: Q3 FY2010

CMS ENERGY CORP Quarterly Report for Q3 Ended Sep 30, 2010

Filed October 28, 2010For Securities:CMSCMS-PCCMSACMSCCMSD

Summary

CMS Energy Corporation's (CMS) third quarter 2010 Form 10-Q filing indicates no material changes in market risk or risk factors compared to its 2009 Form 10-K. Management has affirmed the effectiveness of disclosure controls and procedures and internal controls over financial reporting for both CMS Energy and its subsidiary, Consumers. This suggests a stable operational and regulatory environment during the period, with no significant new risks or control deficiencies identified. The filing also details CMS Energy's equity repurchases, primarily related to satisfying tax obligations for stock plans and the mandatory conversion of preferred stock. Specifically, 4,849,226 shares were repurchased, with a notable portion (4,518,900 shares) being Series B Convertible Preferred Stock converted on September 30, 2010. This conversion event is a key event for investors to note regarding the company's capital structure and potential dilution.

Financial Statements
Beta
Revenue$1.44B
Operating Expenses$1.12B
Operating Income$319.00M
Interest Expense$102.00M
Net Income$146.00M
EPS (Basic)$0.58
EPS (Diluted)$0.53
Shares Outstanding (Diluted)254.70M

Key Highlights

  • 1No material changes in market risk disclosures from the prior year's 10-K.
  • 2Management confirmed effective disclosure controls and procedures for CMS Energy and Consumers.
  • 3No changes in internal control over financial reporting identified during the quarter.
  • 4CMS Energy repurchased 4,849,226 shares of equity during the quarter ended September 30, 2010.
  • 5A significant portion of repurchases (4,518,900 shares) involved the mandatory conversion of 4.50 percent Cumulative Convertible Preferred Stock, Series B.
  • 6The mandatory conversion of Series B Preferred Stock was completed on September 30, 2010.

Frequently Asked Questions

No, the filing explicitly states there have been no material changes to market risk disclosures or risk factors compared to the company's 2009 Form 10-K.

CMS Energy repurchased a total of 4,849,226 shares. The majority of these repurchases were to satisfy statutory income tax withholding obligations for stock plans, with a significant portion also related to the mandatory conversion of 4.50 percent Cumulative Convertible Preferred Stock, Series B.

On September 30, 2010, CMS Energy announced and completed the mandatory conversion of all its outstanding 4.50 percent Cumulative Convertible Preferred Stock, Series B. This event impacts the company's capital structure and may affect future earnings per share due to the conversion into common stock.

No, management for both CMS Energy and Consumers has affirmed that their disclosure controls and procedures, as well as their internal control over financial reporting, are effective and that there have been no material changes during the quarter.