EXHIBIT 99
(CMS ENERGY LOGO) NEWS RELEASE
CMS ENERGY REPORTS SECOND QUARTER NET INCOME OF $27 MILLION,
SIX-MONTH NET INCOME OF $177 MILLION,
AND INCREASES 2005 EARNINGS GUIDANCE TO $0.95 PER SHARE
- QUARTERLY EARNINGS OF $0.12 PER SHARE, UP FROM $0.10 PER SHARE IN THE
SECOND QUARTER OF 2004
- SIX-MONTH EARNINGS OF $0.82 PER SHARE, UP FROM 2004 SIX-MONTH EARNINGS
OF $0.04 PER SHARE
- 2005 EARNINGS GUIDANCE INCREASED TO $0.95 PER SHARE
JACKSON, Mich., Aug. 4, 2005 - CMS Energy (NYSE: CMS)
announced today second quarter net income of $27 million, or $0.12 per share,
compared to net income of $16 million, or $0.10 per share, in the same quarter
of 2004.
The second quarter 2005 results include income tax benefits of
$24 million available this year under the American Jobs Creation Act and higher
electric deliveries at CMS Energy's principal subsidiary, Consumers Energy,
because of warmer than normal summer temperatures. Those were offset partially
by mark-to-market adjustments related to interest rate and gas price hedging
derivative instruments.
For the first half of 2005, CMS Energy reported net income of
$177 million, or $0.82 per share, up from $7 million, or $0.04 per share, for
the comparable period of 2004. Major differences in net income between the two
periods are higher mark-to-market gains in 2005 of $43 million, or $0.26 per
share, and impairment and other charges in 2004 of $85 million, or $0.53 per
share. (All per share figures are on a diluted basis.)
CMS Energy said it is increasing both its reported and
adjusted 2005 earnings guidance from about $0.90 per share to about $0.95 per
share, based on results for the first two quarters and a stronger second-half
forecast.
"Our utility-plus strategy and focus on our core business,
Consumers Energy, continue to show positive results, assisted by good
performance from our CMS Enterprises businesses," said CMS Energy's Chief
Executive Officer David Joos.
The Company's recent highlights include:
- An International Centre for the Settlement of Investment Disputes
tribunal found in favor of CMS Energy's subsidiary, CMS Gas
Transmission, in its claim against Argentina.
The tribunal, which operated under the auspices of the World Bank,
awarded $133 million in compensation, plus interest, which could
increase the total to $150 million. However, the government of
Argentina is contesting the claim and award.
- The unions representing operations, maintenance, and construction
employees and call center employees have ratified new five-year
contracts with Consumers Energy.
- Settlement of a shareholder derivative lawsuit linked to round-trip
energy trading. The settlement, which remains subject to court
approval, eliminates a major legal uncertainty for the Company.
- The Jubail Cogeneration Plant, of which CMS Energy holds a 25 percent
interest, began commercial operation on June 23. The plant - the first
independent power plant in Saudi Arabia - can produce up to 250
megawatts of power and 510 tons of industrial steam per hour. The
entire output of the plant is under a long-term contract.
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.
# # #
CMS Energy provides financial results and earnings guidance on both a reported
(Generally Accepted Accounting Principles) and adjusted (non-GAAP) basis.
Adjusted 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.
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-Q for the quarter ended March 31, 2005 (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
CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Condensed Consolidated Income Statements
(Millions, Except Per Share Amounts)
Second Quarter First Half
(Unaudited) (Unaudited)
----------------------- ----------------------
2005 2004 2005 2004
------- ------- ------- -------
Operating Revenue $ 1,241 $ 1,093 $ 3,086 $ 2,847
Earnings from Equity Method Investees 21 41 52 60
Operating Expenses 1,167 986 2,592 2,489
Asset Impairment Charges - - - 125
------- ------- ------- -------
Operating Income $ 95 $ 148 $ 546 $ 293
Other Income (Deductions) 29 12 53 22
Fixed Charges 133 147 269 296
------- ------- ------- -------
Income (Loss) before Minority Interests $ (9) $ 13 $ 330 $ 19
Minority Interests (14) 1 99 12
------- ------- ------- -------
Income before Income Taxes $ 5 $ 12 $ 231 $ 7
Income Tax Expense (Benefit) (25) (7) 49 (10)
------- ------- ------- -------
Income from Continuing Operations $ 30 $ 19 $ 182 $ 17
Loss from Discontinued Operations - - - (2)
Cumulative Effect of Accounting Changes - - - (2)
------- ------- ------- -------
Net Income $ 30 $ 19 $ 182 $ 13
Preferred Dividends 3 3 5 6
------- ------- ------- -------
Net Income Available to Common Stock $ 27 $ 16 $ 177 $ 7
======= ======= ======= =======
Earnings Per Share
Basic $ 0.12 $ 0.10 $ 0.86 $ 0.04
Diluted 0.12 0.10 0.82 0.04
CMS Energy Corporation
SUMMARIZED COMPARATIVE BALANCE SHEETS
(Millions of Dollars)
June 30 December 31
2005 2004
------- -------
(Unaudited)
ASSETS
Cash and cash equivalents $ 1,013 $ 669
Restricted cash 67 56
Short-term investments - 109
Other current assets 2,213 2,165
------- -------
Total current assets $ 3,293 $ 2,999
Net plant and property 8,834 8,742
Investments 711 752
Non-current assets 3,623 3,379
------- -------
Total assets $16,461 $15,872
======= =======
STOCKHOLDERS' INVESTMENT
AND LIABILITIES
Capitalization
Debt, capital and finance and leases (*)
Long-term debt and capital leases (excluding $ 6,093 $ 5,960
FIN 46 debt, finance leases and securitization debt)
FIN 46 debt and finance leases 1,004 1,381
------- -------
Total debt, capital and finance leases $ 7,097 $ 7,341
Preferred stock and securities 305 305
Minority interest 844 733
Common stockholders' equity 2,534 2,072
------- -------
Total capitalization $10,780 $10,451
Securitization debt 384 398
Current liabilities 1,278 1,279
Non-current liabilities 4,019 3,744
------- -------
Total Stockholders' Investment and Liabilities $16,461 $15,872
======= =======
(*) Current and long-term
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(Millions of Dollars)
First Half
(Unaudited)
--------------------------------
2005 2004
-------------- --------------
- --------------------------------------------------------------------------------------------------------------
Beginning of Period Cash $ 669 $ 532
- --------------------------------------------------------------------------------------------------------------
Cash and Cash Equivalents from FIN 46 Implementation $ - $ 174
Cash provided by operating activities $ 506 $ 478
Cash used in investing activities (136) (403)
-------------- --------------
Cash flow from operating and investing activities $ 370 $ 75
Cash used in financing activities (27) (276)
Currency Translation Adjustment 1 (1)
-------------- --------------
Total Cash Flow $ 344 $ (202)
-------------- --------------
- --------------------------------------------------------------------------------------------------------------
End of Period Cash $ 1,013 $ 504
============== ==============
- --------------------------------------------------------------------------------------------------------------
CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income
(Millions, Except Per Share Amounts)
Second Quarter First Half
(Unaudited) (Unaudited)
------------------------- --------------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
NET INCOME AVAILABLE TO COMMON STOCK $ 27 $ 16 $ 177 $ 7
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
---------- ---------- ---------- ----------
Adjusted Net Income - Non-GAAP Basis $ 27 $ 16 $ 175 $ 92
========== ========== ========== ==========
Average Number of Common Shares Outstanding
Basic 218 161 207 161
Diluted 229 164 216 162
BASIC EARNINGS PER AVERAGE COMMON SHARE
Earnings Per Share as Reported $ 0.12 $ 0.10 $ 0.86 $ 0.04
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
---------- ---------- ---------- ----------
Adjusted Net Income - Non-GAAP Basis $ 0.12 $ 0.10 $ 0.85 $ 0.57
========== ========== ========== ==========
DILUTED EARNINGS PER AVERAGE COMMON SHARE
Earnings Per Share as Reported $ 0.12 $ 0.10 $ 0.82 $ 0.04
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
---------- ---------- ---------- ----------
Adjusted Net Income - Non-GAAP Basis $ 0.12 $ 0.10 $ 0.81 $ 0.57
========== ========== ========== ==========
Note: Adjusted (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 these summary financial statements.