EXHIBIT 99
(CMS ENERGY LOGO) NEWS RELEASE
CMS ENERGY REPORTS 2005 FIRST QUARTER INCOME OF $150 MILLION
- QUARTERLY EARNINGS OF $0.74 PER SHARE, REVERSING 2004 FIRST QUARTER
LOSS OF $0.06 PER SHARE
- RESULTS IN LINE WITH 2005 GUIDANCE
JACKSON, Mich., May 4, 2005 -- CMS Energy (NYSE: CMS) announced
today first quarter net income of $150 million, or $0.74 per share, compared to
a loss of $9 million, or $0.06 per share in the same quarter of 2004. (All per
share figures are on a diluted basis.)
The first quarter 2005 results, compared with the same period of
2004, reflect the absence of $81 million, or $0.51 per share, in impairment and
other charges in 2004. The 2005 results include a $67 million, or $0.32 per
share, effect from a mark-to-market gain recorded at the MCV Partnership. Based
on projected usage and forward natural gas prices, much of the mark-to-market
gain is expected to reverse by the end of the year. At CMS Energy's principal
subsidiary, Consumers Energy, quarterly income was down at the electric utility
because of increased operating costs and up slightly at the natural gas utility
as a rate increase compensated for increased operating expenses.
CMS Energy said the first quarter results are consistent with its
2005 outlook and guidance, with earnings expected to be in the $0.90 per share
range, including the effects of dilution from the Company's recent equity
offering.
The Company's recent highlights include:
- A successful common stock offering netted $272 million, following an
equity offering last fall that netted $288 million.
- Equity investments in Consumers Energy of $200 million in January and
$350 million in April, bringing the total investment in the utility to
$800 million since August 2004.
- $700 million in Consumers Energy bonds and $150 million of CMS Energy
senior notes issued as part of an aggressive refinancing program, which
has extended maturities and reduced interest costs.
- Palisades nuclear plant license renewal application filed with the U.S.
Nuclear Regulatory Commission.
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- Closing on the sales of Company's interests in the GVK plant in
southern India and the Scudder Latin America Power fund for combined
net proceeds of $44 million.
- Completing last week the sale of a gas turbine purchased for a Midland
Cogeneration Venture expansion, which later was cancelled. The turbine
sale generated $15 million in cash.
David Joos, CMS Energy's chief executive officer, said the first
quarter results are a good start for 2005. "We had a solid quarter with good
operational performance and that gives us a foundation to build upon for the
rest of the year," Joos said.
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.
# # #
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 "Forward-Looking Statements and Risk Factors" found in the
Management Discussion and Analysis sections of CMS Energy's and Consumers
Energy's Forms 10-K for the year ended Dec. 31, 2004 (both incorporated herein
by reference), that 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
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CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Condensed Consolidated Income Statements
(Millions, Except Per Share Amounts)
1st Quarter
(Unaudited)
-------------------------------
2005 2004
----------- -----------
Operating Revenue $ 1,845 $ 1,754
Earnings from Equity Method Investees 31 19
Operating Expenses 1,425 1,503
Asset Impairment Charges -- 125
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Operating Income $ 451 $ 145
Other Income (Deductions) 24 10
Fixed Charges 136 149
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Income before Minority Interests $ 339 $ 6
Minority Interests 113 11
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Income (Loss) before Income Taxes $ 226 $ (5)
Income Tax Expense (Benefit) 74 (3)
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Income (Loss) from Continuing Operations $ 152 $ (2)
Income (Loss) from Discontinued Operations -- (2)
Cumulative Effect of Accounting Changes -- (2)
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Net Income (Loss) $ 152 $ (6)
Preferred Dividends 2 3
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Net Income (Loss) Available to Common Stock $ 150 $ (9)
======= =======
Earnings (Loss) Per Share
Basic $ 0.77 $ (0.06)
Diluted 0.74 (0.06)
Average Number of Common Shares Outstanding
Basic 195 161
Diluted 206 161
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CMS Energy Corporation
SUMMARIZED COMPARATIVE BALANCE SHEETS
(Millions of Dollars)
March 31 December 31
2005 2004
------------- -----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 940 $ 669
Restricted cash 45 56
Short-term investments -- 109
Other current assets 2,196 2,165
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Total current assets $ 3,181 $ 2,999
Net plant and property 8,798 8,742
Investments 741 752
Non-current assets 3,481 3,379
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Total assets $16,201 $15,872
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STOCKHOLDERS' INVESTMENT
AND LIABILITIES
Capitalization
Debt, capital and finance and leases (*)
Long-term debt and capital leases (excluding
FIN 46 debt, finance leases and securitization debt) $ 6,373 $ 5,960
FIN 46 debt and finance leases 1,002 1,381
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Total debt, capital and finance leases $ 7,375 $ 7,341
Preferred stock and securities 305 305
Minority interest 844 733
Common stockholders' equity 2,242 2,072
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Total capitalization $10,766 $10,451
Securitization debt 391 398
Current liabilities 1,179 1,279
Non-current liabilities 3,865 3,744
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Total Stockholders' Investment and Liabilities $16,201 $15,872
======= =======
(*) Current and long-term
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(Millions of Dollars)
1st Quarter
(Unaudited)
-----------------------------
2005 2004
--------- ---------
Beginning of Period Cash $ 669 $ 532
Cash and Cash Equivalents from FIN 46 Implementation $ - $ 174
Cash provided by (used in) operating activities $ 262 $ 238
Cash provided by (used in) investing activities (8) (165)
----- -----
Cash flow from operating and investing activities $ 254 $ 73
Cash provided by (used in) financing activities 17 (269)
Currency Translation Adjustment - (9)
----- -----
Total Cash Flow $ 271 $(205)
----- -----
End of Period Cash $ 940 $ 501
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CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income
(Millions, Except Per Share Amounts)
1st Quarter
(Unaudited)
--------------------------------------
2005 2004
------------- -------------
NET INCOME (LOSS) AVAILABLE TO COMMON STOCK $ 150 $ (9)
Reconciling Items:
Discontinued Operations Loss - 2
Cumulative Effect of Change in Accounting for Retirement Benefits - 2
Net Asset Sales (Gains) Losses, Writedowns and Other (2) 81
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Adjusted Net Income - Non-GAAP Basis $ 148 $ 76
======= =======
Average Number of Common Shares Outstanding
Basic 195 161
Diluted 206 161
BASIC EARNINGS (LOSS) PER AVERAGE COMMON SHARE
Earnings (Loss) Per Share as Reported $ 0.77 $ (0.06)
Reconciling Items:
Discontinued Operations Loss - 0.01
Cumulative Effect of Change in Accounting for Retirement Benefits - 0.01
Net Asset Sales (Gains) Losses, Writedowns and Other (0.01) 0.51
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Adjusted Net Income - Non-GAAP Basis $ 0.76 $ 0.47
======= =======
DILUTED EARNINGS (LOSS) PER AVERAGE COMMON SHARE
Earnings (Loss) Per Share as Reported $ 0.74 $ (0.06)
Reconciling Items:
Discontinued Operations Loss - 0.01
Cumulative Effect of Change in Accounting for Retirement Benefits - 0.01
Net Asset Sales (Gains) Losses, Writedowns and Other (0.01) 0.51
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Adjusted Net Income - Non-GAAP Basis $ 0.73 $ 0.47
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