EX-99.1 2 k48474exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(CMS ENERGY LOGO)
CMS ENERGY ANNOUNCES THIRD QUARTER NET INCOME OF $73 MILLION,
OR $0.31 PER SHARE, AND AFFIRMS 2009 ADJUSTED EARNINGS GUIDANCE
     JACKSON, Mich., Oct. 30, 2009 — CMS Energy announced today reported net income of $73 million, or $0.31 per share, for the third quarter of 2009 compared to reported net income of $78 million, or $0.33 per share, in the same quarter of 2008.
     CMS Energy’s third quarter adjusted (non-Generally Accepted Accounting Principles) net income, which excludes the effects of asset sales and certain other items, was $76 million, or $0.32 per share. In the third quarter of 2008, the company had adjusted net income of $77 million, or $0.32 per share.
     For the first nine months of 2009, CMS Energy had reported net income of $216 million, or $0.92 per share, compared to reported net income of $224 million, or $0.94 per share, for the first nine months of 2008.
     On an adjusted basis, the company had net income of $207 million, or $0.88 per share, for the first nine months of 2009, compared to adjusted net income of $221 million, or $0.93 per share for the first nine months of 2008.
     CMS Energy reaffirmed its guidance for full year 2009 adjusted earnings of $1.25 per share. While the company expects 2009 reported earnings to be about the same as its adjusted earnings, reported earnings could vary because of several factors such as legacy issues associated with prior asset sales. Because of those uncertainties, the company isn’t providing reported earnings guidance.
     David Joos, the president and chief executive officer of CMS Energy, said the third quarter results reflected the continuing downturn in the state’s economy and the cooler-than-normal summer temperatures that reduced electricity demand at Consumers Energy.
     “We continue to focus on providing customers with reliable and affordable energy service in the most efficient and cost-effective manner. We’re making investments to deliver superior customer service and support long-term growth in Michigan,” Joos said.

 

 

     CMS Energy (NYSE: CMS) is a Michigan-based company that has an electric and natural gas utility, Consumers Energy, as its primary business and also owns and operates independent power generation businesses.
# # #
CMS Energy provides financial results on both a reported (Generally Accepted Accounting Principles) and adjusted (non-GAAP) basis. Management views adjusted earnings as a key measure of the company’s present operating financial performance, unaffected by discontinued operations, asset sales, impairments, or other items detailed in the attached summary financial statements. Certain contingent obligations arising in connection with previously disposed assets or discontinued operations have the potential to impact, favorably or unfavorably, the company’s reported earnings in 2009.
This news release 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 “MANAGEMENT’S DISCUSSION AND ANALYSIS — FORWARD-LOOKING STATEMENTS AND INFORMATION” and “RISK FACTORS” sections of CMS Energy’s Form 10-K and Consumers Energy’s Form 10-K each for the Year Ended December 31, 2008 and as updated in CMS Energy’s and Consumers Energy’s Forms 10-Q for the Quarters ended March 31, 2009 and June 30, 2009. CMS Energy’s and Consumers Energy’s “MANAGEMENT’S DISCUSSION AND ANALYSIS — 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.
For more information on CMS Energy, please visit our web site at: www.cmsenergy.com
Media Contacts: Jeff Holyfield, 517/788-2394 or Dan Bishop, 517/788-2395
Investment Analyst Contact: CMS Energy Investor Relations, 517/788-2590

 

 

CMS Energy Corporation
SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
                                 
    Third Quarter     Nine Months  
    (Unaudited)     (Unaudited)  
    2009     2008     2009     2008  
Operating Revenue
   $ 1,274     $ 1,428     $ 4,608     $ 4,977  
 
                                
Income (Loss) from Equity Method Investees
     (1 )     5       (2 )     3  
 
                                
Operating Expenses
     1,035       1,221       4,021       4,360  
 
                        
 
                                
Operating Income
   $ 238     $ 212     $ 585     $ 620  
 
                                
Other Income (Deductions)
     (3 )     3       54       37  
 
                                
Interest Charges
     103       98       307       296  
 
                        
 
                                
Income before Income Taxes
   $ 132     $ 117     $ 332     $ 361  
 
                                
Income Tax Expense
     51       36       128       123  
 
                        
 
                                
Income from Continuing Operations
   $ 81     $ 81     $ 204     $ 238  
 
                                
Income from Discontinued Operations
     —       1       29       —  
 
                        
 
                                
Net Income
     81       82       233       238  
 
                                
Income Attributable to Noncontrolling Interests
     6       2       9       6  
 
                        
 
                                
Net Income Attributable to CMS Energy
   $ 75     $ 80     $ 224     $ 232  
 
                                
Preferred Dividends
     2       2       8       8  
 
                        
 
                                
Net Income Available to Common Stockholders
   $ 73     $ 78     $ 216     $ 224  
 
                        
 
                                
Income Per Share
                                
Basic
   $ 0.32     $ 0.35     $ 0.95     $ 0.99  
Diluted
     0.31       0.33       0.92       0.94  

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CMS Energy Corporation
SUMMARIZED CONSOLIDATED BALANCE SHEETS
(In Millions)
                 
    September 30     December 31  
    2009     2008  
    (Unaudited)  
Assets
                
Cash and cash equivalents
   $ 183     $ 213  
Restricted cash and cash equivalents
     30       35  
Other current assets
     2,449       2,579  
 
            
Total current assets
   $ 2,662     $ 2,827  
Net plant and property
     9,566       9,190  
Investments
     9       11  
Non-current assets
     2,646       2,873  
 
            
Total Assets
   $ 14,883     $ 14,901  
 
            
 
                
Stockholders’ Investment and Liabilities
                
Capitalization
                
Debt and capital and finance leases (*)
                
Long-term debt and capital leases (excluding FIN 46 debt, finance leases and securitization debt)
   $ 6,471     $ 6,204  
FIN 46 debt and finance leases
     104       254  
 
            
Total debt and capital and finance leases
   $ 6,575     $ 6,458  
Preferred stock and securities
     283       287  
Noncontrolling interests
     53       52  
Common stockholders’ equity
     2,634       2,476  
 
            
Total capitalization
   $ 9,545     $ 9,273  
Securitization debt
     253       277  
Current liabilities
     1,118       1,349  
Non-current liabilities
     3,967       4,002  
 
            
Total Stockholders’ Investment and Liabilities
   $ 14,883     $ 14,901  
 
            
 
    (*) Current and long-term
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(In Millions)
                 
    Nine Months  
    (Unaudited)  
    2009     2008  
Beginning of Period Cash
   $ 213     $ 348  
 
                
Cash provided by operating activities
   $ 638     $ 181  
Cash used in investing activities
     (679 )     (538 )
 
            
Cash flow from operating and investing activities
   $ (41 )   $ (357 )
Cash provided by financing activities
     11       171  
Total Cash Flow
   $ (30 )   $ (186 )
 
                
 
            
End of Period Cash
   $ 183     $ 162  
 
            

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CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income
(In Millions, Except Per Share Amounts)
                                 
    Third Quarter   Nine Months
    (Unaudited)   (Unaudited)
    2009   2008   2009   2008
Net Income Available to Common Stockholders
   $ 73     $ 78     $ 216     $ 224  
 
                                
Reconciling Items:
                                
Discontinued Operations Income
     —       (1 )     (29 )     —  
 
                                
Unrealized Investment Loss
     —       8       —       8  
 
                                
Asset Sales (Gains) Losses and Other
     3       (8 )     20       (11 )
     
Adjusted Net Income — Non-GAAP Basis
   $ 76     $ 77     $ 207     $ 221  
     
 
                                
Average Number of Common Shares Outstanding
                               
Basic
     227       226       227       225  
Diluted
     239       236       236       238  
 
                                
Basic Earnings Per Average Common Share
                                
 
                                
Net Income Per Share as Reported
   $ 0.32     $ 0.35     $ 0.95     $ 0.99  
 
                                
Reconciling Items:
                                
Discontinued Operations Income
     —       (0.01 )     (0.13 )     —  
 
                                
Unrealized Investment Loss
     —       0.03       —       0.03  
 
                                
Asset Sales (Gains) Losses and Other
     0.01       (0.03 )     0.09       (0.04 )
     
Adjusted Net Income — Non-GAAP Basis
   $ 0.33     $ 0.34     $ 0.91     $ 0.98  
     
 
                                
Diluted Earnings Per Average Common Share
                                
 
                                
Net Income Per Share as Reported
   $ 0.31     $ 0.33     $ 0.92     $ 0.94  
 
                                
Reconciling Items:
                                
Discontinued Operations Income
     —       (0.01 )     (0.13 )     —  
 
                                
Unrealized Investment Loss
     —       0.03       —       0.03  
 
                                
Asset Sales (Gains) Lossesand Other
     0.01       (0.03 )     0.09       (0.04 )
     
Adjusted Net Income — Non-GAAP Basis
   $ 0.32     $ 0.32     $ 0.88     $ 0.93  
     
 
Note:   Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company’s present operating financial performance, unaffected by discontinued operations, asset sales, impairments, or other items detailed in these summary financial statements.

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