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CMS Energy Reports First Quarter Net Income of $69 Million, or $0.30 Per Share, and Affirms Adjusted Earnings Guidance

Posted on: Thursday, 30 April 2009, 06:30 CDT

JACKSON, Mich., April 30 /PRNewswire-FirstCall/ -- CMS Energy announced today reported net income of $69 million, or $0.30 per share, for the first quarter of 2009, compared to reported net income of $102 million, or $0.43 per share, in the same quarter of 2008.

The difference between the company's 2008 and 2009 first quarter results was caused in large part by a 2008 gain on the sale of sulfur dioxide allowances not repeated in 2009 and lower winter electric rates at its Michigan utility, Consumers Energy. The lower winter rates are expected to be offset by higher summer electric rates, assuming normal weather. The new rates, which took effect in June 2008, are designed to encourage customers to conserve energy during the summer.

CMS Energy reaffirmed its guidance for 2009 adjusted earnings of $1.25 per share. While the company expects 2009 reported earnings to be about the same as its adjusted earnings, reported earnings could vary because of several factors such as legacy issues associated with prior asset sales. Because of those uncertainties, the company isn't providing reported earnings guidance.

David Joos, the president and chief executive officer of CMS Energy, said the first quarter results were consistent with the company's full-year earnings guidance and reinforced the strategy of making substantial investments in its Michigan utility operations.

"Our growth plan calls for Consumers Energy to invest more than $6 billion over the next five years. We expect these investments will create thousands of construction jobs, boost Michigan's economy, and help us continue to provide reliable, affordable service to our customers," Joos said.

Joos said the investments primarily would be in energy efficiency, renewable energy, environmental and customer service enhancements, as well as new power generation.

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 2009.

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-K and Consumers Energy's Form 10-K each for the Year Ended December 31, 2008. CMS Energy's and Consumers Energy's "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections are incorporated herein by reference and 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 SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME (In Millions, Except Per Share Amounts) First Quarter (Unaudited) 2009 2008 Operating Revenue $2,106 $2,184 Loss from Equity Method Investees (1) (1) Operating Expenses 1,900 1,930 Operating Income $205 $253 Other Income 15 19 Fixed Charges 99 101 Income before Income Taxes $121 $171 Income Tax Expense 48 63 Net Income $73 $108 Income Attributable to Noncontrolling Interests 1 3 Net Income Attributable to CMS Energy $72 $105 Preferred Stock Dividends 3 3 Net Income Available to Common Stockholders $69 $102 Income Per Share Basic $0.30 $0.45 Diluted 0.30 0.43 CMS Energy Corporation SUMMARIZED CONSOLIDATED BALANCE SHEETS (In Millions) March 31 December 31 2009 2008 (Unaudited) Assets Cash and cash equivalents $826 $213 Restricted cash and cash equivalents 36 35 Other current assets 2,122 2,579 Total current assets $2,984 $2,827 Net plant and property 9,266 9,190 Investments 11 11 Non-current assets 2,741 2,873 Total assets $15,002 $14,901 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) $6,449 $6,204 FIN 46 debt and finance leases 250 254 Total debt and capital and finance leases $6,699 $6,458 Preferred stock and securities 287 287 Noncontrolling interests 52 52 Common stockholders' equity 2,517 2,476 Total capitalization $9,555 $9,273 Securitization debt 269 277 Current liabilities 1,125 1,349 Non-current liabilities 4,053 4,002 Total Stockholders' Investment and Liabilities $15,002 $14,901 (*) Current and long-term CMS Energy Corporation SUMMARIZED STATEMENTS OF CASH FLOWS (In Millions) First Quarter (Unaudited) 2009 2008 Beginning of Period Cash $213 $348 Cash provided by operating activities $606 $475 Cash used in investing activities (192) (152) Cash flow from operating and investing activities $414 $323 Cash provided by financing activities 199 170 Total Cash Flow $613 $493 End of Period Cash $826 $841 CMS Energy Corporation SUMMARY OF CONSOLIDATED EARNINGS Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income (In Millions, Except Per Share Amounts) First Quarter (Unaudited) 2009 2008 Net Income Available to Common Stockholders $69 $102 Reconciling Items: Discontinued Operations Income (*) (*) Asset Sales Losses and Other * * Adjusted Net Income - Non-GAAP Basis $69 $102 Average Number of Common Shares Outstanding Basic 227 225 Diluted 233 238 Basic Earnings Per Average Common Share Net Income Per Share as Reported $0.30 $0.45 Reconciling Items: Discontinued Operations Income (*) (*) Asset Sales Losses and Other * * Adjusted Net Income - Non-GAAP Basis $0.30 $0.45 Diluted Earnings Per Average Common Share Net Income Per Share as Reported $0.30 $0.43 Reconciling Items: Discontinued Operations Income (*) (*) Asset Sales Losses and Other * * Adjusted Net Income - Non-GAAP Basis $0.30 $0.43 * Less than $500 thousand or $0.01 per share. 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.

SOURCE CMS Energy Corporation

Source: PR Newswire

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