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
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Ongoing Net Income - Non-GAAP Basis $ 0.44 $ 0.50
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Digest Reconciliation 1st Qtr 2004