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8-K - FORM 8-K - CONSUMERS ENERGY CO | k50120e8vk.htm |
Exhibit 99.1
CMS ENERGY ANNOUNCES FOURTH QUARTER EARNINGS OF $0.09 PER SHARE,
2010 EARNINGS OF $1.28 PER SHARE, OR $1.36 PER SHARE ON AN ADJUSTED
BASIS, AND ISSUES 2011 ADJUSTED EARNINGS GUIDANCE OF $1.44 PER SHARE
2010 EARNINGS OF $1.28 PER SHARE, OR $1.36 PER SHARE ON AN ADJUSTED
BASIS, AND ISSUES 2011 ADJUSTED EARNINGS GUIDANCE OF $1.44 PER SHARE
JACKSON, Mich., Feb. 24, 2011 CMS Energy announced today reported net income of $324
million, or $1.28 per share, for 2010 compared to reported net income of $218 million, or $0.91 per
share, in 2009.
The companys 2010 adjusted (non-Generally Accepted Accounting Principles) net income, which
excludes the effects of legacy issues associated with previously sold assets and certain other
items, was $345 million, or $1.36 per share, compared to $300 million, or $1.26 per share, in 2009.
For the fourth quarter of 2010, the companys reported net income was $25 million, or $0.09
per share, compared to $6 million, or $0.02 per share, in the same quarter of 2009. The 2009
fourth quarter results reflect a one-time charge of $79 million linked to a refund order, which now
is complete.
The 2010 fourth quarter adjusted net income was $55 million, or $0.21 per share, compared to
$91 million, or $0.38 per share, for the same period of 2009.
CMS Energys 2010 adjusted earnings of $1.36 were in line with its guidance of $1.35 per
share. For 2011, CMS Energy expects adjusted earnings of about $1.44 per share. Thats an
increase of about 6 percent and consistent with its long-term plan of 5 percent to 7 percent annual
earnings growth. While the company expects 2011 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 isnt providing
reported earnings guidance.
John Russell, CMS Energys president and chief executive officer, said the companys 2010
results reflect strong operational performance at Consumers Energy, the companys Michigan electric
and natural gas utility, and its utility-focused business strategy.
In 2010, we took a number of important steps to strengthen the business and its long-term
financial performance and to improve service to customers, which is reflected in our customer
satisfaction results. We restructured the company and reduced the workforce by 5 percent. We
signed new five-year union contracts that address legacy pension and health care costs. We also
increased our common stock dividend twice in 2010, to 84 cents per share on an annualized basis, an
increase of 68 percent from 2009.
Russell said the company will continue to be one of the largest investors in Michigan in 2011
and beyond, with plans to invest more than $6 billion in its Consumers Energy operations over the
next five years.
As we continue to implement our growth strategy, we will be making substantial investments
that will help us provide our customers with safe, reliable and affordable service, he said.
Well be investing in areas that are important to our customers, including renewable energy,
environmental quality programs, and energy efficiency. These investments will create jobs and
boost the states economy, which is starting to rebound.
In reviewing recent major events, Russell noted the company has:
| Signed a major contract for an $800 million upgrade to the Ludington Pumped Storage Plant to increase its output by 300 megawatts to nearly 2,200 megawatts. The company owns 51 percent of the facility and also operates it. | ||
| Also signed major construction and supply contracts for the development of its first wind farm, the 100-megawatt Lake Winds Energy Park, which is expected to be in operation in 2012 | ||
| Completed a $100 million environmental project at one of its coal-fired units at the Karn/Weadock Generating Complex, one of the companys largest generating sites. The project was completed on time and on budget and is expected to allow the unit to meet the latest environmental standards. |
These investments also are consistent with our plans to increase adjusted earnings by 5 percent to 7 percent per year, Russell 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 companys
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 companys reported earnings
in 2011.
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
sections of CMS Energys Form 10-K and Consumers Energys Form 10-K each for the Year Ended
December 31, 2009 and as updated in CMS Energys and Consumers Energys Forms 10-Q for the Quarters
Ended March 31, 2010, June 30, 2010, and Sept. 30, 2010.
CMS Energys and Consumers Energys FORWARD-LOOKING STATEMENTS AND INFORMATION and RISK FACTORS
sections are incorporated herein by reference and discuss important factors that could cause CMS
Energys and Consumers Energys 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
SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Per Share Amounts)
Fourth Quarter | Full Year | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Operating Revenue |
$ | 1,682 | $ | 1,613 | $ | 6,432 | $ | 6,205 | ||||||||
Operating Expenses |
1,524 | 1,505 | 5,454 | 5,507 | ||||||||||||
Operating Income |
$ | 158 | $ | 108 | $ | 978 | $ | 698 | ||||||||
Other Income (Expense) |
(3 | ) | 20 | 43 | 72 | |||||||||||
Interest Charges |
107 | 128 | 431 | 435 | ||||||||||||
Income Before Income Taxes |
$ | 48 | $ | | $ | 590 | $ | 335 | ||||||||
Income Tax Expense (Benefit) |
17 | (14 | ) | 224 | 115 | |||||||||||
Income From Continuing Operations |
$ | 31 | $ | 14 | $ | 366 | $ | 220 | ||||||||
Income (Loss) From Discontinued Operations |
(6 | ) | (3 | ) | (23 | ) | 20 | |||||||||
Net Income |
25 | 11 | 343 | 240 | ||||||||||||
Income Attributable to Noncontrolling Interests |
| 2 | 3 | 11 | ||||||||||||
Net Income Attributable to CMS Energy |
$ | 25 | $ | 9 | $ | 340 | $ | 229 | ||||||||
Charge for Deferred Issuance Costs on Preferred Stock |
| | 8 | | ||||||||||||
Preferred Stock Dividends |
| 3 | 8 | 11 | ||||||||||||
Net Income Available to Common Stockholders |
$ | 25 | $ | 6 | $ | 324 | $ | 218 | ||||||||
Income Per Share |
||||||||||||||||
Basic |
$ | 0.11 | $ | 0.03 | $ | 1.40 | $ | 0.96 | ||||||||
Diluted |
$ | 0.09 | $ | 0.02 | $ | 1.28 | $ | 0.91 |
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CMS Energy Corporation
SUMMARIZED CONSOLIDATED BALANCE SHEETS
(In Millions)
SUMMARIZED CONSOLIDATED BALANCE SHEETS
(In Millions)
December 31 | ||||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
Assets |
||||||||
Cash and cash equivalents |
$ | 247 | $ | 90 | ||||
Restricted cash and cash equivalents |
23 | 32 | ||||||
Other current assets |
2,489 | 2,620 | ||||||
Total current assets |
$ | 2,759 | $ | 2,742 | ||||
Plant, property & equipment |
10,069 | 9,682 | ||||||
Non-current assets |
2,788 | 2,832 | ||||||
Total Assets |
$ | 15,616 | $ | 15,256 | ||||
Stockholders Investment
and Liabilities |
||||||||
Current liabilities |
$ | 1,271 | $ | 1,220 | ||||
Non-current liabilities |
4,122 | 4,272 | ||||||
Capitalization |
||||||||
Debt and capital and finance leases (*) |
||||||||
Long-term debt and capital leases (excluding FIN 46 debt,
non-recourse debt, finance leases and securitization debt) |
6,786 | 6,225 | ||||||
FIN 46 debt, non-recourse debt and finance leases |
392 | 358 | ||||||
Total debt and capital and finance leases |
7,178 | 6,583 | ||||||
Preferred stock |
| 239 | ||||||
Noncontrolling interests |
44 | 97 | ||||||
Common stockholders equity |
2,793 | 2,602 | ||||||
Total capitalization |
$ | 10,015 | $ | 9,521 | ||||
Securitization debt |
208 | 243 | ||||||
Total Stockholders Investment and Liabilities |
$ | 15,616 | $ | 15,256 | ||||
(*) | Current and long-term |
CMS Energy Corporation
SUMMARIZED STATEMENTS OF CASH FLOWS
(In Millions)
SUMMARIZED STATEMENTS OF CASH FLOWS
(In Millions)
Full Year | ||||||||
(Unaudited) | ||||||||
2010 | 2009 | |||||||
Beginning of Period Cash |
$ | 90 | $ | 207 | ||||
Cash provided by operating activities |
$ | 959 | $ | 848 | ||||
Cash used in investing activities |
(1,003 | ) | (935 | ) | ||||
Cash flow from operating and investing activities |
$ | (44 | ) | $ | (87 | ) | ||
Cash provided by (used in) financing activities |
202 | (35 | ) | |||||
Changes in cash included in assets held for sale |
(1 | ) | 5 | |||||
Total Cash Flow |
$ | 157 | $ | (117 | ) | |||
End of Period Cash |
$ | 247 | $ | 90 | ||||
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CMS Energy Corporation
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income
(In Millions, Except Per Share Amounts)
SUMMARY OF CONSOLIDATED EARNINGS
Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income
(In Millions, Except Per Share Amounts)
Fourth Quarter | Full Year | |||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net Income Available to Common Stockholders |
$ | 25 | $ | 6 | $ | 324 | $ | 218 | ||||||||
Reconciling Items: |
||||||||||||||||
Discontinued Operations (Income) Loss |
6 | 3 | 23 | (20 | ) | |||||||||||
Downsizing Program |
| | 6 | | ||||||||||||
Big Rock Refund |
| 79 | | 79 | ||||||||||||
Asset Sales (Gains) Losses and Other |
24 | 3 | (8 | ) | 23 | |||||||||||
Adjusted Net Income Non-GAAP Basis |
$ | 55 | $ | 91 | $ | 345 | $ | 300 | ||||||||
Average Number of Common Shares Outstanding |
||||||||||||||||
Basic |
241 | 228 | 231 | 227 | ||||||||||||
Diluted |
258 | 243 | 253 | 238 | ||||||||||||
Basic Earnings Per Average Common Share |
||||||||||||||||
Net Income Per Share as Reported |
$ | 0.11 | $ | 0.03 | $ | 1.40 | $ | 0.96 | ||||||||
Reconciling Items: |
||||||||||||||||
Discontinued Operations (Income) Loss |
0.02 | 0.01 | 0.10 | (0.09 | ) | |||||||||||
Downsizing Program |
| | 0.03 | | ||||||||||||
Big Rock Refund |
| 0.35 | | 0.35 | ||||||||||||
Asset Sales (Gains) Losses and Other |
0.10 | 0.01 | (0.04 | ) | 0.10 | |||||||||||
Adjusted Net Income Non-GAAP Basis |
$ | 0.23 | $ | 0.40 | $ | 1.49 | $ | 1.32 | ||||||||
Diluted Earnings Per Average Common Share |
||||||||||||||||
Net Income Per Share as Reported |
$ | 0.09 | $ | 0.02 | $ | 1.28 | $ | 0.91 | ||||||||
Reconciling Items: |
||||||||||||||||
Discontinued Operations (Income) Loss |
0.02 | 0.01 | 0.08 | (0.08 | ) | |||||||||||
Downsizing Program |
| | 0.03 | | ||||||||||||
Big Rock Refund |
| 0.33 | | 0.33 | ||||||||||||
Asset Sales (Gains) Losses and Other |
0.10 | 0.02 | (0.03 | ) | 0.10 | |||||||||||
Adjusted Net Income Non-GAAP Basis |
$ | 0.21 | $ | 0.38 | $ | 1.36 | $ | 1.26 | ||||||||
Note: | Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Companys present operating financial performance, unaffected by discontinued operations, asset sales, impairments, or other items detailed in these summary financial statements. |
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