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JACKSON, Mich., March 8, 2005 /PRNewswire-FirstCall via COMTEX/ -- CMS Energy (CMS, Trade) announced today 2004 reported net income of $110 million, or $0.64 per share, compared to a loss of $44 million, or $0.30 per share, in 2003. (All per share figures are on a diluted basis.)

Ongoing earnings for 2004 were $0.87 per share, or $149 million, exceeding the Company's guidance of $0.85 per share. Ongoing earnings for 2003 were $0.81 per share on income of $122 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.

Continued strong operating performance and success in resolving key regulatory issues were major factors in the year-over-year earnings improvement. Lower interest costs from an aggressive debt refinancing program, the absence of prior year pension settlement costs, and tax benefits from the American Jobs Creation Act also contributed.

CMS Energy also announced its 2005 earnings guidance. For reported earnings, $0.84 to $0.89 per share, up from $0.64 in 2004. For ongoing earnings, $0.87 to $0.92 per share, compared to 2004's $0.87 per share. The Company has set its 2005 employee incentive program goal at $0.90 per share for ongoing earnings.

For the fourth quarter of 2004, CMS Energy reported net income of $47 million, or $0.24 per share, compared to reported net income of $8 million, or $0.05 per share, for the same quarter in 2003. Ongoing earnings for the fourth quarter of 2004 were $0.20 per share, or $39 million, compared to ongoing earnings of $0.22 per share, or $36 million, for the comparable quarter in 2003.

Fourth quarter 2004 earnings include a benefit of $21 million, or $0.12 per share, as a result of a planned repatriation of $80 million from CMS Energy's foreign subsidiaries in 2005 and resulting lower deferred taxes due to the tax provisions of the American Jobs Creation Act. CMS Energy anticipates that its foreign subsidiaries will repatriate additional cash in 2005 that will result in tax benefits in 2005. These benefits are included in CMS Energy's 2005 guidance and don't recur beyond 2005. CMS Energy will invest the repatriated cash in its utility, Consumers Energy.


The Company's recent highlights include:
* A successful common equity offering netting $288 million in October
* $450 million of equity infused into Consumers Energy since August
* Resolution of several key regulatory issues, including the Resource
Conservation Plan in January.
* Sale of its 33 percent interest in the GVK Industries power plant in
southern India in February

David Joos, CMS Energy's chief executive officer, said the strong financial results for 2004 stemmed from the Company's operational strength.

"Our employees continue to deliver strong operating performance and we're pleased that it's showing good results for our customers and shareholders," Joos said. "The fact that we have positive reported income represents a major turnaround for us after several years of reported losses stemming from asset sales and impairments as we implemented our back-to-basics utility-plus strategy."

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-Q for the quarter ended Sept. 30, 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
CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Condensed Consolidated Income Statements
(Millions, Except Per Share Amounts)
Fourth Quarter
(Unaudited) Twelve Months
2004 2003 2004 2003
Operating Revenue $1,562 $1,372 $5,472 $5,513
Earnings from Equity Method Investees 37 39 115 164
Operating Expenses 1,422 1,281 4,834 4,987
Asset Impairment Charges 35 25 160 95
Operating Income $142 $105 $593 $595
Other Income (Deductions) 95 12 178 14
Fixed Charges 193 138 634 593
Income (Loss) before Minority
Interests $44 $(21) $137 $16
Minority Interests (2) 3 15 -
Income (Loss) before Income Taxes $46 $(24) $122 $16
Income Tax Expense (Benefit) (13) 10 (5) 58
Income (Loss) from Continuing
Operations $59 $(34) $127 $(42)
Income (Loss) from Discontinued
Operations (10) 43 (4) 23
Cumulative Effect of Accounting
Changes - - (2) (24)
Net Income (Loss) $49 $9 $121 $(43)
Preferred Dividends 2 1 11 1
Net Income (Loss) Available to
Common Stock $47 $8 $110 $(44)
Earnings (Loss) Per Share
Basic $0.25 $0.05 $0.65 $(0.30)
Diluted 0.24 0.05 0.64 (0.30)
CMS Energy Corporation
SUMMARIZED COMPARATIVE BALANCE SHEETS
(Millions of Dollars)
December 31 December 31
2004 2003
Assets
Cash and cash equivalents $669 $532
Restricted cash 56 201
Short-term investments 109 -
Other current assets 2,165 1,736
Total current assets $2,999 $2,469
Net plant and property 8,636 6,890
Investments 752 1,390
Non-current assets 3,485 3,089
Total assets $15,872 $13,838
Stockholders' Investment and Liabilities
Capitalization
Debt
Long-term debt (excluding
securitization and
related-party debt) $5,868 $5,622
Capital leases 48 58
Notes payable - -
Current portion of long-term
debt and capital leases
(excluding securitization
and related-party debt) 159 491
Total debt $6,075 $6,171
Preferred stock and securities 305 305
Minority interest 733 73
Common stockholders' equity 2,072 1,585
Total capitalization $9,185 $8,134
Securitization debt 398 426
MCV debt and finance lease 582 -
Long-term debt - related parties 504 684
Current portion of long-term debt -
related parties 180 -
Current liabilities 1,279 1,117
Non-current liabilities 3,744 3,477
Total Stockholders' Investment and
Liabilities $15,872 $13,838
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(Millions of Dollars)
Twelve Months
2004 2003
Beginning of Period Cash $532 $351
Cash and Cash Equivalents from FIN 46 Implementation $174 $ -
Cash provided by (used in) operating activities $398 $(250)
Cash provided by (used in) investing activities (392) 203
Cash flow from operating and investing activities $6 $(47)
Cash provided by (used in) financing activities (43) 229
Currency Translation Adjustment - (1)
Total Cash Flow $(37) $181
End of Period Cash $669 $532
CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income (Loss) to Non-GAAP Ongoing Net Income
(Millions, Except Per Share Amounts)
Fourth Quarter
(Unaudited) Twelve Months
2004 2003 2004 2003
Net Income (Loss) Available to
Common Stock $47 $8 $110 $(44)
Reconciling Items:
Discontinued Operations
(Income) Loss 10 (43) 4 (23)
Cumulative Effect of Accounting
Changes:
MTM Accounting - - - 23
Asset Retirement Obligation - - - 1
Postretirement Benefits - - 2 -
Regulatory (Gains) from Prior Years (67) - (67) -
Net Asset Sales Losses,
Writedowns and Other 49 71 100 165
Ongoing Net Income - Non-GAAP Basis $39 $36 $149 $122
Average Number of Common Shares Outstanding
Basic 190 161 169 150
Diluted 194 161 172 150
Basic Earnings (Loss) Per Average
Common Share
Earnings (Loss) Per Share as
Reported $0.25 $0.05 $0.65 $(0.30)
Reconciling Items:
Discontinued Operations
(Income) Loss 0.05 (0.27) 0.02 (0.16)
Cumulative Effect of Accounting
Changes:
MTM Accounting - - - 0.15
Asset Retirement Obligation - - - 0.01
Postretirement Benefits - - 0.01 -
Regulatory (Gains) from
Prior Years (0.35) - (0.40) -
Net Asset Sales Losses,
Writedowns and Other 0.26 0.44 0.61 1.11
Ongoing Net Income - Non-GAAP Basis $0.21 $0.22 $0.89 $0.81
Diluted Earnings (Loss) Per Average
Common Share
Earnings (Loss) Per Share as
Reported $0.24 $0.05 $0.64 $(0.30)
Reconciling Items:
Discontinued Operations
(Income) Loss 0.05 (0.27) 0.02 (0.16)
Cumulative Effect of Accounting
Changes:
MTM Accounting - - - 0.15
Asset Retirement Obligation - - - 0.01
Postretirement Benefits - - 0.01 -
Regulatory (Gains) from
Prior Years (0.35) - (0.39) -
Net Asset Sales Losses,
Writedowns and Other 0.26 0.44 0.59 1.11
Ongoing Net Income - Non-GAAP Basis $0.20 $0.22 $0.87 $0.81
CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliation of GAAP to Non-GAAP 2005 EPS Guidance
2005 EPS Guidance - Reported $0.84 To $0.89
Exclude Restructuring Legal
Expenses, Net of Tax 0.03 0.03
2005 EPS Guidance - Ongoing $0.87 To $0.92
Approx. $.90

SOURCE CMS Energy Corporation


Media Contacts: Jeff Holyfield, +1-517-788-2394, or Dan Bishop, +1-517-788-2395, bot
of CMS Energy Corporation; or Investment Analyst Contact: CMS Energy Investor
Relations, +1-517-788-2590

http://www.prnewswire.com

Copyright (C) 2005 PR Newswire. All rights reserved.



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