JACKSON, Mich., July 30 /PRNewswire-FirstCall/ -- CMS Energy announced today reported net income of $74 million, or $0.32 per share, for the second quarter of 2009 compared to reported net income of $44 million, or $0.18 per share, in the same quarter of 2008.
The 2009 second quarter results reflect income from the expiration of a contingent liability linked to certain assets sold in 2007, income from early retirement of debt at a discount, and a charge to increase the reserve for the Bay Harbor environmental project.
CMS Energy's second quarter adjusted (non-Generally Accepted Accounting Principles) net income, which excludes the effects of asset sales, the Bay Harbor charge, and certain other items, was $62 million, or $0.26 per share. In the second quarter of 2008, the company had adjusted net income of $42 million, or $0.18 per share.
For the first six months of 2009, CMS Energy had reported net income of $143 million, or $0.61 per share, compared to reported net income of $146 million, or $0.60 per share, for the first half of 2008.
On an adjusted basis, the company had net income of $131 million, or $0.56 per share, for the first half of 2009, compared to adjusted net income of $144 million, or $0.60 per share for the first six months of 2008.
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 despite mild weather, the solid second quarter results were consistent with the company's full-year earnings guidance and reflect strong operational performance at its Michigan utility, Consumers Energy.
"We are continuing to focus on providing reliable, affordable service to our customers while investing in new infrastructure for the future," Joos said. "These investments are creating jobs now, and supporting economic recovery and long-term growth for Michigan." 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 and as updated in CMS Energy's and Consumers Energy's Forms 10-Q for the Quarter Ended March 31, 2009. 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: http://www.cmsenergy.com/ CMS Energy Corporation
SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME
---------------------------------------------
(In Millions, Except Per Share Amounts)
Second Quarter First Half
(Unaudited) (Unaudited)
----------- -----------
2009 2008 2009 2008
---- ---- ---- ---- Operating Revenue $1,228 $1,365 $3,334 $3,549 Loss from Equity Method Investees (*) (1) (1) (2) Operating Expenses 1,086 1,209 2,986 3,139
----- ----- ----- ----- Operating Income $142 $155 $347 $408 Other Income 42 15 57 34 Fixed Charges 105 97 204 198
--- -- --- --- Income before Income Taxes $79 $73 $200 $244 Income Tax Expense 29 24 77 87
-- -- -- -- Income from Continuing Operations $50 $49 $123 $157 Income (Loss) from Discontinued
Operations 29 (1) 29 (1)
-- -- -- -- Net Income 79 48 152 156 Income Attributable to Noncontrolling
Interests 2 1 3 4
- - - - Net Income Attributable to CMS Energy $77 $47 $149 $152 Preferred Dividends 3 3 6 6
- - - - Net Income Available to Common
Stockholders $74 $44 $143 $146
=== === ==== ====
Income Per Share
Basic $0.33 $0.20 $0.63 $0.64
Diluted 0.32 0.18 0.61 0.60
(*) Less than $500 thousand.
CMS Energy Corporation
SUMMARIZED CONSOLIDATED BALANCE SHEETS
--------------------------------------
(In Millions) June 30 December 31
2009 2008
---- ----
(Unaudited)
Assets
Cash and cash equivalents $1,025 $213
Restricted cash and cash equivalents 31 35
Other current assets 2,100 2,579
----- -----
Total current assets $3,156 $2,827
Net plant and property 9,421 9,190
Investments 10 11
Non-current assets 2,690 2,873
----- -----
Total Assets $15,277 $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) $6,843 $6,204
FIN 46 debt and finance leases 106 254
--- ---
Total debt and capital and finance leases $6,949 $6,458
Preferred stock and securities 287 287
Noncontrolling interests 51 52
Common stockholders' equity 2,582 2,476
----- -----
Total capitalization $9,869 $9,273
Securitization debt 261 277
Current liabilities 1,200 1,349
Non-current liabilities 3,947 4,002
----- -----
Total Stockholders' Investment and
Liabilities $15,277 $14,901
======= ======= (*) Current and long-term CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
-----------------------------------
(In Millions) First Half
(Unaudited)
-----------
2009 2008
---- ----
Beginning of Period Cash $213 $348
Cash provided by operating activities $803 $651
Cash used in investing activities (436) (344)
---- ----
Cash flow from operating and investing
activities $367 $307
Cash provided by (used in) financing activities 445 (128)
--- ----
Total Cash Flow $812 $179
---- ----
End of Period Cash $1,025 $527
====== ==== CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
--------------------------------
Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income
(In Millions, Except Per Share Amounts) Second Quarter First Half
(Unaudited) (Unaudited)
----------- -----------
2009 2008 2009 2008
---- ---- ---- ---- Net Income Available to Common Stockholders $74 $44 $143 $146 Reconciling Items:
Discontinued Operations (Income) Loss (29) 1 (29) 1 Asset Sales (Gains) Losses and Other 17 (3) 17 (3)
-- -- -- -- Adjusted Net Income - Non-GAAP Basis $62 $42 $131 $144
=== === ==== ====
Average Number of Common Shares Outstanding
Basic 227 225 227 225
Diluted 235 241 234 240 Basic Earnings Per Average Common Share Net Income Per Share as Reported $0.33 $0.20 $0.63 $0.64 Reconciling Items:
Discontinued Operations (Income) Loss (0.13) 0.01 (0.13) 0.01 Asset Sales (Gains) Losses and Other 0.07 (0.01) 0.08 (0.01)
---- ----- ---- ----- Adjusted Net Income - Non-GAAP Basis $0.27 $0.20 $0.58 $0.64
===== ===== ===== =====
Diluted Earnings Per Average Common Share Net Income Per Share as Reported $0.32 $0.18 $0.61 $0.60 Reconciling Items:
Discontinued Operations (Income) Loss (0.13) 0.01 (0.13) 0.01 Asset Sales (Gains) Losses and Other 0.07 (0.01) 0.08 (0.01)
---- ----- ---- ----- Adjusted Net Income - Non-GAAP Basis $0.26 $0.18 $0.56 $0.60
===== ===== ===== =====
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. DATASOURCE: CMS Energy CONTACT: Media: Jeff Holyfield, +1-517-788-2394, or Dan Bishop, +1-517-788-2395, both of CMS Energy, Investment Analyst Contact: CMS Energy Investor Relations, +1-517-788-2590 Web Site: http://www.cmsenergy.com/
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