MEXICO CITY--(Marketwire - April 29, 2009) - Grupo TMM, S.A.B. (
MANAGEMENT OVERVIEW
José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "Our first-quarter results were affected by the worldwide financial crisis and global economic recession. Mexico's economy was acutely affected in the first quarter of 2009. The Mexican automotive industry's total production and exports decreased 40 percent in the first quarter of 2009 compared to the same period of last year. Additionally, in the first quarter of 2009, product tanker rates were lower compared to last year, and transportation services volumes were negatively impacted by lower demand for consumer goods, retail and auto parts.
"While our first-quarter results do not reflect the full potential of TMM's assets, we believe our maritime business continues to be strong as a result of the medium- and long-term contractual nature of the division's revenues.
"In the first quarter of 2009, Maritime revenues increased 11.2 percent compared to the same quarter last year, specifically due to revenue improvements at the offshore and product tanker segments. Demand continued to meet our expectations, as fleet utilization was 100 percent for tankers and 88 percent for offshore vessels, both above the average for the industry. However, operating results at this division were impacted by the addition of new vessels to our fleet in the second half of 2008, which increased this division's depreciation and amortization costs, and by not having all of our new offshore vessels working at full capacity in the first quarter of 2009."
Serrano added, "Our near- and long-term outlook for the Company remains positive, and we are confident our results will demonstrate the earnings power of our maritime and port assets going forward. Based on our current revenue expectations, we anticipate TMM's operating profit to improve throughout 2009. While we acknowledge that challenges remain, we continue to see a trend towards greater demand for offshore vessel services in the Mexican market. We remain focused on profitable operations, appropriately deploying our capital, the sale of non-productive and non-strategic assets and the restructure of our corporate debt, all while building long-term value for our shareholders. Each quarter we get closer to meeting these goals.
"Our strategy to structure a long-term, non-recourse, peso-denominated financing through our Trust Certificates Program continues to benefit TMM. In the first quarter of 2009, we recorded a net exchange gain of $22.1 million. Additionally, this debt is tied to the 28-day TIIE, or Mexico's Interbank Equilibrium Interest Rate. At March 31, the 28-TIIE decreased 154 basis points to 7.15 percent, and on April 23, this rate decreased further to 6.37 percent. The Central Bank of Mexico anticipates further cuts, which would serve to reduce the debt service of this Program, starting in June, when the next coupon payment of the first and third tranches are due.
"As a result of the organizational restructuring we implemented in 2008, the Company's costs and operating expenses were 8.9 percent lower, and our corporate expenses were reduced 23.2 percent, or $1.1 million, quarter over quarter. In the first quarter of 2009, the ratio of corporate expenses to total revenues was 4.4 percent compared to 5.4 percent in the same quarter last year. Additionally, in the first quarter of 2009 we recorded net income of $4.7 million compared to a net loss of $10.3 million in the first quarter of last year."
Serrano concluded, "The remainder of 2009 and into 2010 will be challenging times for the world's economy. However, the fundamentals of our business remain solid, with our maritime and port businesses well positioned for growth. We continue to seek opportunities to selectively grow our revenue and profit. TMM's management continues to be focused on enhancing shareholder value over the short- and long-terms."
CONFERENCE CALL
Due to the fact that Mexican authorities have declared a state of alert in Mexico City and other Mexican states because of the swine flu outbreak, and out of concern for the health of TMM's employees and their families, this quarter's conference call has been cancelled. Please contact Monica Azar at monica.azar@tmm.com.mx, or Jacinto Marina at jacinto.marina@tmm.com.mx if you have any questions.
Headquartered in Mexico City, TMM is a Mexican intermodal transportation and logistics company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. Visit TMM's Web site at www.grupotmm.com. The site offers Spanish/English language options.
Included in this press release are certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements speak only as of the date they are made and are based on the beliefs of the Company's management as well as on assumptions made. Actual results could differ materially from those included in such forward-looking statements. Readers are cautioned that all forward-looking statements involve risks and uncertainty. The following factors could cause actual results to differ materially from such forward-looking statements: global, US and Mexican economic and social conditions; the effect of the North American Free Trade Agreement on the level of US-Mexico trade; the condition of the world shipping market; the success of the Company's investment in new businesses; risks associated with the Company's reorganization and restructuring; the ability of the Company to reduce corporate overhead costs; the ability of management to manage growth and successfully compete in new businesses; and the ability of the Company to restructure or refinance its indebtedness. These risk factors and additional information are included in the Company's reports on Form 6-K and 20-F on file with the United States Securities and Exchange Commission.
Grupo TMM, S.A.B. and subsidiaries
Balance Sheet (under discontinuing operations)*
- millions of dollars -
March 31, December 31,
2009 2008
============ ============
Current assets:
Cash and cash equivalents 142.117 168.447
------------ ------------
Accounts receivable
Accounts receivable - Net 51.566 56.548
------------ ------------
Other accounts receivable 32.925 23.750
------------ ------------
Prepaid expenses and other current assets 10.569 11.653
------------ ------------
Total current assets 237.177 260.398
============ ============
Property, machinery and equipment 825.402 806.911
------------ ------------
Cumulative Depreciation (130.749) (124.396)
------------ ------------
Property, machinery and equipment - Net 694.653 682.515
============ ============
Other assets 48.671 47.821
============ ============
Deferred taxes 97.276 97.276
============ ============
Total assets 1,077.777 1,088.010
============ ============
Current liabilities:
Bank loans and current maturities of long-term
liabilities 22.533 21.063
------------ ------------
Sale of accounts receivable 15.457 14.976
------------ ------------
Suppliers 32.245 33.039
------------ ------------
Other accounts payable and accrued expenses 47.036 38.827
------------ ------------
Total current liabilities 117.271 107.905
============ ============
Long-term liabilities:
Bank loans 62.336 64.795
------------ ------------
Trust certificates debt 598.302 615.609
------------ ------------
Sale of accounts receivable 97.408 101.035
------------ ------------
Other long-term liabilities 26.909 27.483
------------ ------------
Total long-term liabilities 784.955 808.922
============ ============
Total liabilities 902.226 916.827
============ ============
Stockholders' equity
Common stock 114.058 114.058
------------ ------------
Retained earnings 86.849 82.117
------------ ------------
Initial accumulated translation loss (17.757) (17.757)
------------ ------------
Cumulative translation adjusted (13.757) (13.312)
------------ ------------
169.393 165.106
------------ ------------
Minority interest 6.158 6.077
------------ ------------
Total stockholders´ equity 175.551 171.183
============ ============
Total liabilities and stockholders´ equity 1,077.777 1,088.010
============ ============
*Prepared in accordance with International Financial Reporting Standards.
Grupo TMM, S.A.B. and subsidiaries
Statement of Income (under discontinuing operations)*
- millions of dollars -
Three months ended
March 31,
----------------------
2009 2008
========== ==========
Ports 1.887 2.431
Maritime 54.450 48.953
Logistics 21.881 32.667
Corporate and others 1.863 1.962
Eliminations (0.116) (0.096)
---------- ----------
Revenue from freight and services 79.965 85.917
---------- ----------
Ports (1.164) (1.556)
Maritime (36.297) (32.010)
Logistics (23.197) (33.521)
Corporate and others (2.167) (1.864)
Eliminations 0.116 0.096
---------- ----------
Cost of freight and services (62.709) (68.855)
---------- ----------
Ports (0.182) (0.216)
Maritime (6.825) (3.625)
Logistics (0.946) (1.219)
Corporate and others (0.004) (0.002)
---------- ----------
Depreciation of vessels and equipment (7.957) (5.062)
---------- ----------
Corporate expenses (3.537) (4.606)
---------- ----------
Ports 0.541 0.659
Maritime 11.328 13.318
Logistics (2.262) (2.073)
Corporate and others (0.308) 0.096
Corporate expenses (3.537) (4.606)
Other (expenses) income - Net (0.583) (0.899)
---------- ----------
Operating Income 5.179 6.495
========== ==========
Financial (expenses) income - Net (22.564) (14.512)
---------- ----------
Exchange gain (loss) - Net 22.065 (1.890)
---------- ----------
Net financial cost (0.499) (16.402)
---------- ----------
Gain (loss) before taxes 4.680 (9.907)
========== ==========
Benefit (provision) for taxes 0.155
---------- ----------
Net income (loss) for the period 4.835 (9.907)
========== ==========
Attributable to:
Minority interest 0.102 0.372
---------- ----------
Equity holders of GTMM, S.A.B. 4.733 (10.279)
========== ==========
Weighted average outstanding shares (millions) 55.227 56.897
Income (loss) earnings per share (dollars / share) 0.09 (0.18)
Outstanding shares at end of period (millions) 55.227 56.888
Income (loss) earnings per share (dollars / share) 0.09 (0.18)
========== ==========
*Prepared in accordance with International Financial Reporting Standards.
Grupo TMM, S.A.B. and subsidiaries
Statement of Cash Flow (under discontinuing operations)*
- millions of dollars -
Three months ended
March 31,
--------------------
2009 2008
========= =========
Cash flow from operation activities:
Net Income (loss) before discontinuing operations 4.835 (9.907)
--------- ---------
Charges (credits) to income not affecting resources:
Depreciation & amortization 11.835 8.766
--------- ---------
Other non-cash items 1.738 17.376
--------- ---------
Total non-cash items 13.573 26.142
--------- ---------
Changes in assets & liabilities 2.758 (0.656)
--------- ---------
Total adjustments 16.331 25.486
--------- ---------
Net cash provided by operating activities 21.166 15.579
========= =========
Cash flow from investing activities:
Proceeds from sales of assets 1.311 0.038
--------- ---------
Payments for purchases of assets (27.024) (54.390)
--------- ---------
Common stock decrease of subsidiaries (0.490)
--------- ---------
Net cash used in investment activities (25.713) (54.842)
========= =========
Cash flow provided by financing activities:
Short-term borrowings (net) (0.427) 2.743
--------- ---------
Sale (repurchase) of accounts receivable (net) (7.224) (7.296)
--------- ---------
Repayment of long-term debt (8.626) (4.744)
--------- ---------
Proceeds from issuance of long-term debt 53.250
--------- ---------
Acquisition of treasury shares, net (0.095)
--------- ---------
Net cash (used in) provided by financing
activities (16.277) 43.858
========= =========
Exchange losses on cash (5.506)
--------- ---------
Net (decrease) increase in cash (26.330) 4.595
--------- ---------
Cash at beginning of period 168.447 52.235
--------- ---------
Cash at end of period 142.117 56.830
========= =========
*Prepared in accordance with International Financial Reporting Standards.
Contact Information: TMM COMPANY CONTACT: Jacinto Marina Chief Financial Officer 011-525-55-629-8866 ext. 2901 Monica Azar Investor Relations 917-597-5361 or 011-525-55-629-8866 ext. 3421 AT DRESNER CORPORATE SERVICES: Kristine Walczak (investors, analysts, media) 312-726-3600