EXHIBIT 99.1
[CMS ENERGY LOGO]
NEWS RELEASE
CMS ENERGY RESULTS IMPROVE,
FINANCIAL PLAN ON TRACK
JACKSON, Mich., March 10, 2004 - CMS Energy (NYSE: CMS) announced today
a 2003 reported net loss of $44 million, or $0.30 per share, compared to a loss
of $650 million, or $4.68 per share, in 2002.
Excluding the impact of $1.11 per share in asset writedowns and other
charges, ongoing earnings for 2003 were $0.81 per share, or $122 million, in
line with the Company's guidance of $0.80 to $0.90 per share. On a comparable
basis, ongoing earnings for 2002 were $0.84 per share on net income of $117
million.
Ongoing (non-Generally Accepted Accounting Principles) 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.
CMS Energy also announced its guidance for 2004: a reported net loss of
about $0.50 per share and ongoing earnings growth to about $0.85 per share. The
reported guidance reflects losses anticipated from the sale of certain
international assets.
CMS Energy 2003 highlights included:
- 15 assets sold for $2.1 billion and net proceeds of nearly $850
million
- Consolidated debt reduced by $1.1 billion
- $3.8 billion refinanced to extend debt maturities and lower interest
costs
- $560 million contributed to the pension plan, fully funding all
accumulated obligations
- Consumers Energy's gas utility ranked highest for customer
satisfaction in the Midwest for the second straight year by J.D.
Power and Associates
- Consumers Energy ranked No. 2 nationally in a University of Michigan
survey of customer satisfaction for combined electric and gas
utilities.
- Electric utility met all 10 performance standards set by the Michigan
Public Service Commission
- The Company's utility and non-utility generating plants set
production records
The Company also noted it had restated its 2001 and 2002 financial
statements to properly account for certain derivative instruments held by some
international affiliates. The Company owns a minority interest in those
affiliates. CMS Energy's 2003 10-K filing will detail the restatements, which
increased the 2002 loss from $4.46 per share to $4.68 per share.
CMS Energy's chairman and chief executive officer, Ken Whipple, said
the 2003 results and 2004 guidance reflect the progress the Company is making
with its "utility-plus" strategy.
"Our goal is to become a smaller, stronger company with our utility,
Consumers Energy, as the primary focus. The `plus' part is our non-utility
energy businesses - independent power projects, gas and electric distribution
units, and gas pipelines - that are important to our cash flow and earnings,"
Whipple said.
"We will continue to execute our financial improvement plan and meet
our commitments. We have this Company moving in the right direction and will
maintain our focus on operational excellence, increasing our financial
flexibility, and reducing debt."
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)
Fourth Quarter Twelve Months
(Unaudited)
---------------------------------- ---------------------------------
2003 2002 2003 2002
------------ ------------ ----------- ------------
Operating Revenue $ 1,372 $ 1,736 $ 5,513 $ 8,673
Earnings from Equity
Method Investees 39 (3) 164 92
Operating Expenses 1,306 2,255 5,082 8,690
------------ ------------ ----------- ------------
Operating Income (Loss) $ 105 $ (522) $ 595 $ 75
Other Income (Deductions) 12 (30) 14 -
Fixed Charges 139 123 594 508
Income Tax Expense (Benefit) 10 (162) 58 (41)
Minority Interests 3 - - 2
------------ ------------ ----------- ------------
Income (Loss) from Continuing Operations $ (35) $ (513) $ (43) $ (394)
Income (Loss) from Discontinued Operations 43 (120) 23 (274)
Cumulative Effect of Accounting Changes - - (24) 18
------------ ------------ ----------- ------------
Net Income (Loss) $ 8 $ (633) $ (44) $ (650)
============ ============ =========== ============
Earnings (Loss) Per Share
Basic $ 0.05 $ (4.40) $ (0.30) $ (4.68)
Diluted 0.05 (4.40) (0.30) (4.68)
CMS Energy Corporation
SUMMARIZED COMPARATIVE BALANCE SHEETS
-------------------------------------
(Millions of Dollars)
December 31 December 31
2003 2002
--------------- ---------------
ASSETS
Cash and cash equivalents $ 532 $ 351
Restricted cash 201 38
Other current assets 1,761 2,350
--------------- ---------------
Total current assets $ 2,494 $ 2,739
Net plant and property 6,944 6,103
Investments 1,390 1,369
Non-current assets 3,010 4,570
--------------- ---------------
Total assets $ 13,838 $ 14,781
=============== ===============
STOCKHOLDERS' INVESTMENT
AND LIABILITIES
Capitalization
Debt
Long-term debt (excluding Securitization and $ 5,622 $ 4,931
Related Parties)
Capital leases 58 116
Notes Payable - 458
Current portion of long-term
debt and capital leases
(excluding securitization) 491 619
--------------- ---------------
Total debt $ 6,171 $ 6,124
Preferred stock and securities 305 927
Minority interest 73 38
Common stockholders' equity 1,585 1,078
--------------- ---------------
Total capitalization $ 8,134 $ 8,167
Securitization debt 426 453
Long-term debt - Related Parties 684 -
Current liabilities 980 1,785
Non-current liabilities 3,614 4,376
--------------- ---------------
Total Stockholders' Investment and Liabilities $ 13,838 $ 14,781
=============== ===============
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(Millions of Dollars)
Twelve Months
-----------------------------------------
2003 2002
--------------- ---------------
Beginning of Period Cash $ 351 $ 123
--------------- ---------------
Cash (used in) provided by
operating activities $ (251) $ 614
Cash provided by investing activities 203 829
Cash used in financing activities 230 (1,223)
Currency Translation Adjustment (1) 8
--------------- ---------------
Total Cash Flow $ 181 $ 228
--------------- ---------------
End of Period Cash $ 532 $ 351
=============== ===============
CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
-------------------------------------------------------
Reconciliations of GAAP Net Income (Loss) to Non-GAAP Ongoing Net Income (Loss)
(Millions, Except Per Share Amounts)
Fourth Quarter Twelve Months
(Unaudited)
--------------------------- -------------------------
2003 2002 2003 2002
----------- ----------- ---------- -----------
NET INCOME (LOSS) $ 8 $ (633) $ (44) $ (650)
Reconciling Items:
Discontinued Operations (Income) Loss (43) 120 (23) 274
Cumulative Effect of Accounting Changes:
EITF #02-03 MTM Accounting - - 23 -
SFAS No. 143 Asset Retirement Obligation - - 1 -
SFAS No. 133 Derivative Accounting - - - (18)
Net Asset Writedowns 23 458 79 458
Loss of Tax Benefits - 13 - 54
Net Asset (Gain)/Loss and Other 48 18 86 (1)
----------- ----------- ---------- -----------
Ongoing Net Income (Loss) - Non-GAAP Basis $ 36 $ (24) $ 122 $ 117
=========== =========== ========== ===========
Average Number of Common Shares Outstanding
Basic 161 144 150 139
Diluted 166 148 155 143
BASIC EARNINGS (LOSS) PER AVERAGE COMMON SHARE
Earnings (Loss) Per Share as Reported $ 0.05 $ (4.40) $ (0.30) $ (4.68)
Reconciling Items:
Discontinued Operations (Income) Loss (0.27) 0.83 (0.16) 1.97
Cumulative Effect of Accounting Changes:
EITF #02-03 MTM Accounting - - 0.15 -
SFAS No. 143 Asset Retirement Obligations - - 0.01 -
SFAS No. 133 Derivative Accounting - - - (0.13)
Net Asset Writedowns 0.14 3.18 0.52 3.29
Loss of Tax Benefits - 0.09 - 0.39
Net Asset (Gain)/Loss and Other 0.30 0.14 0.59 -
----------- ----------- ---------- -----------
Ongoing Net Income (Loss) - Non-GAAP Basis $ 0.22 $ (0.16) $ 0.81 $ 0.84
=========== =========== ========== ===========
DILUTED EARNINGS (LOSS) PER AVERAGE COMMON SHARE
Earnings (Loss) Per Share as Reported $ 0.05 $ (4.40) $ (0.30) $ (4.68)
Reconciling Items:
Discontinued Operations (Income) Loss (0.27) 0.83 (0.16) 1.97
Cumulative Effect of Accounting Changes:
EITF #02-03 MTM Accounting - - 0.15 -
SFAS No. 143 Asset Retirement Obligations - - 0.01 -
SFAS No. 133 Derivative Accounting - - - (0.13)
Net Asset Writedowns 0.14 3.18 0.52 3.29
Loss of Tax Benefits - 0.09 - 0.39
Net Asset (Gain)/Loss and Other 0.30 0.14 0.59 -
----------- ----------- ---------- -----------
Ongoing Net Income (Loss) - Non-GAAP Basis $ 0.22 $ (0.16) $ 0.81 $ 0.84
=========== =========== ========== ===========