CMS Energy Announces Second Quarter Net Income of $46 Million, or $0.19 per Share, and Affirms Earnings Guidance |
JACKSON, Mich., Aug. 5 /PRNewswire-FirstCall/ -- CMS Energy (NYSE: CMS) announced today net income of $46 million, or $0.19 per share, for the second quarter of 2008 compared to net income of $33 million, or $0.15 per share, in the same quarter of 2007. CMS Energy's second quarter adjusted (non-Generally Accepted Accounting Principles) net income, which excludes the effects of asset sales and certain other items, was $44 million, or $0.19 per share. In the second quarter of 2007, the company had adjusted net income of $18 million, or $0.08 per share. For the first six months of 2008, CMS Energy had reported net income of $149 million, or $0.62 per share, compared to a reported net loss of $182 million, or $0.82 per share, for the first half of 2007. The 2007 six-month results include losses of $292 million, or $1.32 per share, primarily linked to sales of the company's international businesses. On an adjusted basis, the company had net income of $147 million, or $0.62 per share, for the first half of 2008, compared to net income of $110 million, or $0.50 per share for the first six months of 2007. CMS Energy reaffirmed its guidance for 2008 adjusted earnings of $1.20 per share. While the company expects 2008 reported earnings to be about the same as its adjusted earnings, reported earnings could vary because of gains or charges relating to previous asset sales or other factors. The solid second quarter results underscore the fundamental strength of CMS Energy's electric and natural gas utility, Consumers Energy, and the company's "Growing Forward" business strategy, said David Joos, the president and chief executive officer of CMS Energy. "We will continue to implement our strategy to invest about $6.4 billion in Michigan over the next five years, including investments in energy efficiency, renewable energy, environmental and customer service enhancements, and new power generation," Joos said. "We expect these investments to create thousands of jobs in Michigan and to provide a boost to the state's economy as well as supporting our ongoing efforts to provide reliable, affordable service to our customers." Joos noted that state lawmakers are working on the final details of the comprehensive energy policy reform needed to allow the company to fully implement its Growing Forward strategy. "This legislative package would support the major investments needed in Michigan to keep power prices affordable and help ensure reliable energy supplies for customers in the future," he said. CMS Energy (NYSE: CMS) is a Michigan-based company that has an electric and natural gas utility, Consumers Energy, as its primary business and also owns and operates independent power generation businesses. CMS Energy provides financial results on both a reported (Generally Accepted Accounting Principles) and adjusted (non-GAAP) basis. Management views adjusted earnings as a key measure of the company's present operating financial performance, unaffected by discontinued operations, asset sales, impairments, or other items detailed in the attached summary financial statements. Certain contingent obligations arising in connection with previously disposed assets or discontinued operations have the potential to impact, favorably or unfavorably, the company's reported earnings in 2008. 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 INFORMATION" and "RISK FACTORS" each found in the MANAGEMENT'S DISCUSSION AND ANALYSIS sections of CMS Energy's Form 10-Q and Consumers' Form 10-Q each for the quarter ended March 31, 2008. CMS Energy's and Consumers' "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections are incorporated herein by reference that discuss important factors that could cause CMS Energy's and Consumers' results to differ materially from those anticipated in such statements. For more information on CMS Energy, please visit our web site at: http://www.cmsenergy.comSOURCE CMS Energy
CMS Energy Corporation SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (In Millions, Except Per Share Amounts) Second Quarter First Half (Unaudited) (Unaudited) 2008 2007 2008 2007 Operating Revenue $1,365 $1,319 $3,549 $3,508 Earnings (Loss) from Equity Method Investees (1) 17 (2) 36 Operating Expenses 1,209 1,329 3,139 3,561 Operating Income (Loss) $155 $7 $408 $(17) Other Income 15 32 34 55 Fixed Charges 94 120 194 225 Income (Loss) before Income Taxes $76 $(81) $248 $(187) Income Tax Expense (Benefit) 25 (29) 89 (104) Income (Loss) before Minority Interests, Net $51 $(52) $159 $(83) Minority Interests, Net 1 3 3 5 Income (Loss) from Continuing Operations $50 $(55) $156 $(88) Income (Loss) from Discontinued Operations (1) 91 (1) (87) Net Income (Loss) $49 $36 $155 $(175) Preferred Dividends 3 3 6 6 Redemption Premium on Preferred Stock - - - 1 Net Income (Loss) Available to Common Stockholders $46 $33 $149 $(182) Income (Loss) Per Share Basic $0.20 $0.15 $0.66 $(0.82) Diluted 0.19 0.15 0.62 (0.82) CMS Energy Corporation SUMMARIZED CONSOLIDATED BALANCE SHEETS (In Millions) June 30 December 31 2008 2007 (Unaudited) Assets Cash and cash equivalents $527 $348 Restricted cash 28 34 Other current assets 2,092 2,498 Total current assets $2,647 $2,880 Net plant and property 8,895 8,728 Investments 8 11 Non-current assets 2,340 2,573 Total Assets $13,890 $14,192 Stockholders' Investment and Liabilities Capitalization Debt and capital and finance leases (*) Long-term debt and capital leases (excluding FIN 46 debt, finance leases and securitization debt) $5,881 $5,941 FIN 46 debt and finance leases 257 261 Total debt and capital and finance leases $6,138 $6,202 Preferred stock and securities 293 294 Minority interest 52 53 Common stockholders' equity 2,362 2,130 Total capitalization $8,845 $8,679 Securitization debt 293 309 Current liabilities 1,365 1,750 Non-current liabilities 3,387 3,454 Total Stockholders' Investment and Liabilities $13,890 $14,192 (*) Current and long-term CMS Energy Corporation SUMMARIZED STATEMENTS OF CASH FLOWS (In Millions) First Half (Unaudited) 2008 2007 (**) Beginning of Period Cash $348 $351 Cash provided by operating activities $651 $401 Cash provided by (used in) investing activities (344) 1,479 Cash flow from operating and investing activities $307 $1,880 Cash used in financing activities (128) (342) Currency Translation Adjustment - 2 Total Cash Flow $179 $1,540 End of Period Cash $527 $1,891 (**) Beginning cash includes cash associated with discontinued operations. CMS Energy Corporation SUMMARY OF CONSOLIDATED EARNINGS Reconciliations of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income (In Millions, Except Per Share Amounts) Second Quarter First Half (Unaudited) (Unaudited) 2008 2007 2008 2007 Net Income (Loss) Available to Common Stockholders $46 $33 $149 $(182) Reconciling Items: Discontinued Operations (Income) Loss 1 (91) 1 87 Asset Impairment Charges - 25 - 182 Asset Sales (Gains) Losses and Other (3) 51 (3) 23 Adjusted Net Income - Non-GAAP Basis $44 $18 $147 $110 Average Number of Common Shares Outstanding Basic 224 223 224 222 Diluted 239 223 238 222 Basic Earnings Per Average Common Share Net Income (Loss) Per Share as Reported $0.20 $0.15 $0.66 $(0.82) Reconciling Items: Discontinued Operations (Income) Loss 0.01 (0.41) 0.01 0.39 Asset Impairment Charges - 0.11 - 0.82 Asset Sales (Gains) Losses and Other (0.01) 0.23 (0.01) 0.11 Adjusted Net Income - Non-GAAP Basis $0.20 $0.08 $0.66 $0.50 Diluted Earnings Per Average Common Share Net Income (Loss) Per Share as Reported $0.19 $0.15 $0.62 $(0.82) Reconciling Items: Discontinued Operations (Income) Loss 0.01 (0.41) 0.01 0.39 Asset Impairment Charges - 0.11 - 0.82 Asset Sales (Gains) Losses and Other (0.01) 0.23 (0.01) 0.11 Adjusted Net Income - Non-GAAP Basis $0.19 $0.08 $0.62 $0.50 Note: Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company's present operating financial performance, unaffected by discontinued operations, asset sales, impairments, or other items detailed in these summary financial statements.
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Media: Jeff Holyfield, +1-517-788-2394, or
Dan Bishop, +1-517-788-2395; Investment Analyst: CMS Energy
Investor Relations, +1-517-788-2590
