EX-99.1 2 k85277exv99w1.txt PRESS RELEASE, DATED MAY 6, 2004 EXHIBIT 99.1 NEWS RELEASE [CMS ENERGY LOGO] CMS ENERGY REPORTS FIRST QUARTER RESULTS AND REAFFIRMS ONGOING EARNINGS GUIDANCE JACKSON, Mich., May 6, 2004 -- CMS Energy (NYSE: CMS) announced a reported net loss of $11 million, or $0.07 per share, for the first quarter of 2004, compared to reported net income of $82 million, or $0.52 per share, for the same quarter of 2003. Ongoing (non-Generally Accepted Accounting Principles) net income for the first quarter was $71 million, or $0.44 per share, compared to ongoing net income of $81 million or $0.50 per share in the same period of 2003. This year's milder weather more than accounted for the difference. The first quarter results are consistent with the Company's 2004 ongoing earnings guidance of $0.85 per share, up from $0.81 per share in 2003. Ongoing earnings provide a key measure of the Company's present operating financial performance, unaffected by discontinued operations, asset sales or other items detailed in the attached summary financial statements. The first quarter reported loss includes an impairment charge of $81 million, or $0.50 per share, related to the April 2004 sale of the Loy Yang power plant and coal mine in Australia. The charge, which was anticipated, reflects the reduction in the value of the Australian dollar since 1997 when CMS Energy invested in the project. Because proceeds from the Loy Yang sale were better than projected, CMS Energy improved its 2004 guidance from a reported net loss of about $0.50 per share to a loss of about $0.35 per share. Some recent CMS Energy highlights: - Michigan's governor signed legislation that allows Consumers Energy, CMS Energy's principal subsidiary, to continue to offer its Appliance Service Plan. The state Legislature approved the bill by overwhelming margins after thousands of customers expressed their support for the program. About 160,000 residential customers are enrolled in the Appliance Service Plan. - The Palisades nuclear plant broke the continuous generating record for Consumers Energy power plants and continues to better the old mark of 345 days. On April 20, Palisades hit the one-year mark for continuous generating. Ken Whipple, CMS Energy's chairman and chief executive officer, said that the Company's transition to a smaller, utility-based company continues to show results. "We are maintaining our focus on operational excellence, increasing our financial flexibility, and reducing debt," Whipple said. "Our goal is to become a smaller, stronger company with more predictable earnings and we're making progress toward that goal." CMS Energy is an integrated energy company, which has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation. # # # 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 SUMMARY OF CONSOLIDATED EARNINGS Condensed Consolidated Income Statements (Millions, Except Per Share Amounts)
First Quarter (Unaudited) ---------------------------- 2004 2003 ------ ------ Operating Revenue $1,754 $1,968 Earnings from Equity Method Investees 19 47 Operating Expenses 1,507 1,773 Asset Impairment Charges 125 6 ------ ------ Operating Income $ 141 $ 236 Other Income (Deductions) 10 (1) Fixed Charges 152 120 Income Tax Expense (Benefit) (3) 39 Minority Interests 11 1 ------ ------ Income (Loss) from Continuing Operations $ (9) $ 75 Income (Loss) from Discontinued Operations (2) 31 Cumulative Effect of Accounting Changes - (24) ------ ------ Net Income (Loss) $ (11) $ 82 ====== ====== Earnings (Loss) Per Share Basic $(0.07) $ 0.57 Diluted (0.07) 0.52
Digest Consolidated Income 1st Qtr 2004 CMS Energy Corporation SUMMARIZED COMPARATIVE BALANCE SHEETS ------------------------------------- (Millions of Dollars)
As of March 31 (Unaudited) ----------------------------- December 31 2004 2003 2003 -------- -------- -------- ASSETS Cash and cash equivalents $ 551 $ 656 $ 532 Restricted cash 216 43 201 Other current assets 1,952 1,899 1,761 -------- -------- -------- Total current assets $ 2,719 $ 2,598 $ 2,494 Net plant and property 8,492 6,628 6,944 Investments 734 1,420 1,390 Non-current assets 3,172 4,555 3,010 -------- -------- -------- Total assets $ 15,117 $ 15,201 $ 13,838 ======== ======== ======== STOCKHOLDERS' INVESTMENT AND LIABILITIES Capitalization Debt Long-term debt (excluding securitization and $ 5,142 $ 4,798 $ 5,622 related-party debt) Capital leases 55 121 58 Notes payable - 253 - Current portion of long-term debt and capital leases (excluding securitization and related-party debt) 716 902 491 -------- -------- -------- Total debt $ 5,913 $ 6,074 $ 6,171 Preferred stock and securities 305 927 305 Minority interest 754 41 73 Common stockholders' equity 1,676 1,175 1,585 -------- -------- -------- Total capitalization $ 8,648 $ 8,217 $ 8,134 Securitization debt 419 446 426 MCV debt and capital leases 718 - - Long-term debt - related parties 684 - 684 Current liabilities 1,072 1,587 1,131 Non-current liabilities 3,576 4,951 3,463 -------- -------- -------- Total Stockholders' Investment and Liabilities $ 15,117 $ 15,201 $ 13,838 ======== ======== ========
CMS Energy Corporation SUMMARIZED STATEMENTS OF CASH FLOWS ----------------------------------- (Millions of Dollars)
First Quarter (Unaudited) -------------------------- 2004 2003 ----- ---- Beginning of Period Cash $ 532 $351 ----- ---- Cash and Cash Equivalents from FIN 46 Implementation $ 174 $ - ----- ---- Cash provided by operating activities $ 235 $415 Cash used in investing activities (115) (61) ----- ---- Cash flow from operating and investing activities 120 354 Cash used in financing activities (266) (50) Currency Translation Adjustment (9) 1 ----- ---- Total Cash Flow $(155) $305 ----- ---- End of Period Cash $ 551 $656 ===== ====
Balance Sheet & Cash Flow 1st Qtr 2004 CMS Energy Corporation SUMMARY OF CONSOLIDATED EARNINGS Reconciliations of GAAP Net Income (Loss) to Non-GAAP Ongoing Net Income (Millions, Except Per Share Amounts)
First Quarter (Unaudited) ---------------------- 2004 2003 ------ ------ NET INCOME (LOSS) $ (11) $ 82 Reconciling Items: Discontinued Operations (Income) Loss 2 (31) Cumulative Effect of Accounting Changes: EITF #02-03 MTM Accounting - 23 SFAS No. 143 Asset Retirement Obligation - 1 Net Asset Sales (Gain)/Loss and Writedowns 80 6 ------ ------ Ongoing Net Income - Non-GAAP Basis $ 71 $ 81 ====== ====== Average Number of Common Shares Outstanding Basic 161 144 Diluted 166 165 BASIC EARNINGS (LOSS) PER AVERAGE COMMON SHARE Earnings (Loss) Per Share as Reported $(0.07) $ 0.57 Reconciling Items: Discontinued Operations (Income) Loss 0.01 (0.21) Cumulative Effect of Accounting Changes: EITF #02-03 MTM Accounting - 0.15 SFAS No. 143 Asset Retirement Obligations - 0.01 Net Asset Sales (Gain)/Loss and Writedowns 0.50 0.04 ------ ------ Ongoing Net Income - Non-GAAP Basis $ 0.44 $ 0.56 ====== ====== DILUTED EARNINGS (LOSS) PER AVERAGE COMMON SHARE Earnings (Loss) Per Share as Reported $(0.07) $ 0.52 Reconciling Items: Discontinued Operations (Income) Loss 0.01 (0.19) Cumulative Effect of Accounting Changes: EITF #02-03 MTM Accounting - 0.14 SFAS No. 143 Asset Retirement Obligations - - Net Asset Sales (Gain)/Loss and Writedowns 0.50 0.03 ------ ------ Ongoing Net Income - Non-GAAP Basis $ 0.44 $ 0.50 ====== =====
Digest Reconciliation 1st Qtr 2004