EXHIBIT 99
[CMS ENERGY LOGO] [NEWS RELEASE]
CMS ENERGY REPORTS SECOND QUARTER EARNINGS
OF $0.10 PER SHARE; IMPROVES REPORTED OUTLOOK, AND REAFFIRMS
ONGOING EARNINGS GUIDANCE
JACKSON, Mich., Aug. 5, 2004 -- CMS Energy (NYSE: CMS) announced today net
income of $16 million, or $0.10 per share, for the second quarter of 2004,
compared to a net loss of $65 million, or $0.45 per share, for the same quarter
of 2003. (All per share figures are on a diluted basis.)
The second quarter 2003 results reflected $0.42 per share in charges
related to the sale or impairment of CMS Panhandle and other non-strategic
assets.
The Company also announced today that it is adjusting its outlook for 2004
reported results from a loss of $0.35 per share to roughly break even, because
of favorable asset sale proceeds and timing. CMS Energy reaffirmed its ongoing
earnings guidance of $0.85 per share, up from $0.81 per share in 2003.
Ongoing (non-Generally Accepted Accounting Principles) net income for the
second quarter was $16 million, or $0.10 per share, compared to an ongoing net
loss of $5 million or $0.03 per share in the same period of 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.
For the first half of 2004, CMS Energy reported net income of $9 million,
or $0.06 per share, compared to net income of $17 million, or $0.14 per share,
for the first six months of 2003. Ongoing net income for the first half of 2004
was $92 million, or $0.57 per share, compared to $76 million, or $0.51 per
share, for the first half of 2003.
Some recent CMS Energy highlights:
- CMS Energy announced an agreement to sell its 260-mile Parmelia
pipeline system and its 39.7 percent interest in the 860-mile
Goldfields pipeline system, both in western Australia, for about $145
million. The sale is expected to close in the third quarter. With the
completion, the Company will exceed this year's plan for asset sales.
Net proceeds will be used to reduce debt.
- CMS Energy and its principal subsidiary, Consumers Energy, refinanced
their secured revolving credit facilities to extend the terms,
increase the amounts, and lower the interest rates. CMS Energy's new
$300 million facility is due in August 2007 and Consumers Energy's new
$500 million facility is due in July 2007.
- On June 29, the Michigan Public Service Commission authorized
Consumers Energy to recover about $88 million in Electric Customer
Choice implementation costs, starting July 1.
- The Palisades nuclear plant continues its record-breaking performance.
It has been generating for 473 days straight and holds the continuous
generating record for Consumers Energy and CMS Energy power plants.
Ken Whipple, CMS Energy's chairman and chief executive officer, said the
second-quarter results show the Company is making progress toward its goal of
becoming a stronger company with more predictable earnings and less business
risk.
"We've resolved a number of business challenges over the past year as we've
continued our strategy of focusing on our core utility business, complemented by
non-regulated businesses that have a similar profile for predictable earnings,"
Whipple said. "We still have a number of business and regulatory challenges
ahead of us. We'll tackle those at the same time we're taking care of our main
priorities: Customer satisfaction, operational excellence, financial
flexibility, and debt reduction."
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)
Second Quarter First Half
(Unaudited) (Unaudited)
----------------------- ----------------------
Restated Restated
2004 2003 2004 2003
------- -------- ------- -------
Operating Revenue $ 1,093 $ 1,126 $ 2,847 $ 3,094
Earnings from Equity Method Investees 41 50 60 97
Operating Expenses 986 997 2,489 2,770
Asset Impairment Charges -- 3 125 9
------- -------- ------- -------
Operating Income $ 148 $ 176 $ 293 $ 412
Other Income (Deductions) 12 2 22 1
Fixed Charges 147 155 296 275
Income Tax Expense (Benefit) (7) 34 (10) 73
Minority Interests 1 1 12 2
------- -------- ------- -------
Income (Loss) from Continuing Operations $ 19 $ (12) $ 17 $ 63
Income (Loss) from Discontinued Operations -- (53) (2) (22)
Cumulative Effect of Accounting Changes -- -- -- (24)
------- -------- ------- -------
Net Income (Loss) $ 19 $ (65) $ 15 $ 17
Preferred Dividends 3 -- 6 --
------- -------- ------- -------
Net Income (Loss) Available to Common Stock $ 16 $ (65) $ 9 $ 17
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Earnings (Loss) Per Share
Basic $ 0.10 $ (0.45) $ 0.06 $ 0.12
Diluted 0.10 (0.45) 0.06 0.14
CMS Energy Corporation
SUMMARIZED COMPARATIVE BALANCE SHEETS
(Millions of Dollars)
As of June 30 (Unaudited) December 31
--------------------------
2004 2003 2003
------- ------- -----------
ASSETS
Cash and cash equivalents $ 696 $ 917 $ 532
Restricted cash 213 205 201
Other current assets 1,943 1,913 1,761
------- ------- -----------
Total current assets $ 2,852 $ 3,035 $ 2,494
Net plant and property 8,528 6,674 6,944
Investments 778 1,427 1,390
Non-current assets 3,149 2,803 3,010
------- ------- -----------
Total assets $15,307 $13,939 $ 13,838
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STOCKHOLDERS' INVESTMENT
AND LIABILITIES
Capitalization
Debt
Long-term debt (excluding securitization and $ 5,136 $ 5,650 $ 5,622
related-party debt)
Capital leases 54 119 58
Notes payable -- 1 --
Current portion of long-term
debt and capital leases
(excluding securitization and related-party debt) 727 516 491
------- ------- -----------
Total debt $ 5,917 $ 6,286 $ 6,171
Preferred stock and securities 305 927 305
Minority interest 740 43 73
Common stockholders' equity 1,702 1,136 1,585
------- ------- -----------
Total capitalization $ 8,664 $ 8,392 $ 8,134
Securitization debt 412 440 426
MCV debt and finance lease 728 -- --
Long-term debt - related parties 684 -- 684
Current liabilities 1,258 1,168 1,131
Non-current liabilities 3,561 3,939 3,463
------- ------- -----------
Total Stockholders' Investment and Liabilities $15,307 $13,939 $ 13,838
======= ======= ===========
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(Millions of Dollars)
First Half
(Unaudited)
--------------------------
2004 2003
------- -------
Beginning of Period Cash $ 532 $ 351
------- -------
Cash and Cash Equivalents from FIN 46 Implementation $ 174 $ --
------- -------
Cash provided by operating activities $ 481 $ 147
Cash provided by (used in) investing activities (214) 292
------- -------
Cash flow from operating and investing activities 267 439
Cash provided by (used in) financing activities (276) 125
Currency Translation Adjustment (1) 2
------- -------
Total Cash Flow $ (10) $ 566
------- -------
End of Period Cash $ 696 $ 917
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CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income (Loss) to Non-GAAP Ongoing Net Income
(Millions, Except Per Share Amounts)
Second Quarter First Half
(Unaudited) (Unaudited)
---------------------- ----------------------
Restated Restated
2004 2003 2004 2003
------- -------- ------- --------
NET INCOME (LOSS) AVAILABLE TO COMMON STOCK $ 16 $ (65) $ 9 $ 17
Reconciling Items:
Discontinued Operations Loss -- 53 2 22
Cumulative Effect of Accounting Changes:
EITF #02-03 MTM Accounting -- -- -- 23
SFAS No. 143 Asset Retirement Obligation -- -- -- 1
Net Asset Sales Loss and Writedowns -- 7 81 13
------- -------- ------- --------
Ongoing Net Income (Loss) - Non-GAAP Basis $ 16 $ (5) $ 92 $ 76
======= ======== ======= ========
Average Number of Common Shares Outstanding
Basic 161 144 161 144
Diluted 162 144 162 161
BASIC EARNINGS (LOSS) PER AVERAGE COMMON SHARE
Earnings (Loss) Per Share as Reported $ 0.10 $ (0.45) $ 0.06 $ 0.12
Reconciling Items:
Discontinued Operations Loss -- 0.37 0.01 0.15
Cumulative Effect of Accounting Changes:
EITF #02-03 MTM Accounting -- -- -- 0.15
SFAS No. 143 Asset Retirement Obligations -- -- -- 0.01
Net Asset Sales Loss and Writedowns -- 0.05 0.50 0.10
------- -------- ------- --------
Ongoing Net Income (Loss) - Non-GAAP Basis $ 0.10 $ (0.03) $ 0.57 $ 0.53
======= ======== ======= ========
DILUTED EARNINGS (LOSS) PER AVERAGE COMMON SHARE
Earnings (Loss) Per Share as Reported $ 0.10 $ (0.45) $ 0.06 $ 0.14
Reconciling Items:
Discontinued Operations Loss -- 0.37 0.01 0.14
Cumulative Effect of Accounting Changes:
EITF #02-03 MTM Accounting -- -- -- 0.14
SFAS No. 143 Asset Retirement Obligations -- -- -- 0.01
Net Asset Sales Loss and Writedowns -- 0.05 0.50 0.08
------- -------- ------- --------
Ongoing Net Income (Loss) - Non-GAAP Basis $ 0.10 $ (0.03) $ 0.57 $ 0.51
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