MEXICO CITY--(Marketwire - July 28, 2010) - Grupo TMM, S.A.B. (
MANAGEMENT OVERVIEW
José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "Year over year, TMM's second-quarter 2010 consolidated revenues, operating profit and EBITDA improved, demonstrating the power of the Company's market position, continued operational efficiency and successful business strategy. More importantly, consolidated EBITDA in the second quarter of this year exceeded our financial expenses, resulting in the third consecutive quarter of positive free cash flow.
"Building on our core strengths of excellent customer service and high performance records developed over 30 years of cabotage operation, we will continue to utilize our strengths to expand our operations. In the Maritime division, this means taking advantage of the Mexican Maritime Law and increased demand. As part of our five-year growth strategy, we intend to take advantage of strategic opportunities to add around 25 vessels, build TMM's asset base and enhance our growth profile. Additionally, at our Port and Terminals division, we are pursuing an opportunity to increase our penetration in the Mexican ports through the construction of a container and liquid terminal for oil products at Tuxpan. Finally, in the second half of the year, we will begin providing stevedoring services for general cargo in Tampico, a port located north of Tuxpan."
Serrano added, "Additionally, we reopened our 20-year, non recourse, Mexican Trust Certificates Program to consolidate all tranches into one in an effort to improve the Program's credit rating. On July 13, HR Ratings de México rated the new issuance of Trust Certificates AA in the domestic scale. This transaction will also allow us to redeploy our fleet, prepay our dollar-denominated debt and extend its term, and obtain additional funds for new projects. We will complete this transaction in the next few days."
Serrano concluded, "TMM's owned strategic assets and participation in high return and profitable niche markets are complimented by predictable revenues and cash flows through medium and long-term contracts at our Maritime division. We firmly believe TMM is well positioned for sustainable long-term growth."
SECOND-QUARTER AND FIRST-HALF 2010 FINANCIAL AND OPERATING RESULTS
Compared to the same periods of last year, consolidated revenues increased 1.2 percent in the 2010 second quarter and 1.4 percent in the 2010 first half.
Operating profit increased 33.9 percent and 67.3 percent in the 2010 second quarter and 2010 first half, respectively. Higher operating profit in the 2010 periods was mainly due to improvements at the Maritime and Ports divisions. Additionally, consolidated operating margin grew to 11.7 percent in the 2010 first half compared to 7.1 percent in the 2009 first half.
In the 2010 second quarter, EBITDA increased 30.8 percent to $22.1 million compared to $16.9 million in the same period of last year. In the first half of 2010, EBITDA increased 39.6 percent to $45.1 million compared to $32.3 million in the same period of 2009. Second-quarter 2009 EBITDA includes a $4.4 million profit from the sale of two vessels. Without this one-time profit, EBITDA increased 76.8 percent, or $9.6 million, in the 2010 second quarter, and 61.6 percent, or $17.2 million, in the 2010 first half, compared to the same periods last year.
At Maritime, second-quarter 2010 revenues grew 8.4 percent compared to the 2009 second quarter, mainly due to increased revenues at offshore vessels attributable to higher average tariffs per day and more vessels in operation. This division's operating profit grew 14.3 percent in the 2010 second quarter compared to the previous year's second quarter, mainly as a result of a significant profit increase at product tankers due primarily to higher average daily rates and to having all seven vessels working with time-charter contracts.
First-half 2010 revenues at Maritime remained at $102 million, and operating profit grew 15.5 percent compared to the previous year's first half. This profit increase was mainly attributable to improvements at every segment except for chemical tankers, which operated two less vessels in the 2010 second quarter due to decreased demand for these services compared to the 2009 second quarter.
Financial expenses in the 2010 second quarter were 37.0 percent lower than in the same period last year and included a net exchange gain of $23.3 million. In the 2010 first half, financial expenses decreased 31.2 percent compared to the same period last year and included a net exchange loss of $11.0 million.
In the 2010 second quarter and 2010 first half, the Ports and Terminals division's revenue increased 46.1 percent and 43.4 percent, respectively, both compared to the same periods last year. Additionally, operating profit for this division increased from $9,000 dollars in the 2009 second quarter to $1.4 million in the 2010 second quarter and from $0.5 million in the 2009 first half to $3.4 million in the 2010 first half.
Improved results at the Ports and Terminals division was attributable mainly to increased cruise ship calls and automobiles handled at Acapulco, as well as increased revenue and higher container volumes at the maintenance and repair segment. In the 2010 first half, revenues at Acapulco increased 105.3 percent to $3.9 million compared to the same period last year. At the maintenance and repair segment, revenues increased 52.2 percent to $3.5 million in the 2010 first half compared to the same period last year.
Compared to the same periods of last year, Logistics revenues decreased 21.3 percent and 3.8 percent in the 2010 second quarter and 2010 first half, respectively. These decreases were mainly attributable to lower trucking revenue and to reduced revenue of $3.8 million as a result of the sale of the minority stake in the Company's automotive inbound logistics business in April. These decreases were partially offset by higher revenue at the warehousing and auto hauling segments.
Logistics operating losses in the 2010 second quarter and 2010 first half were reduced compared to the same periods of 2009 and included certain book losses.
CONFERENCE CALL
TMM's management will host a conference call and Webcast to review financial and operational highlights on Thursday, July 29 at 11:00 a.m. Eastern time.
To participate in the conference call, please dial (888) 857-6932 (domestic) or (719) 457-2665 (international) at least five minutes prior to the start of the event. Accompanying visuals and a simultaneous Webcast of the meeting will be available at: http://www.visualwebcaster.com/event.asp?id=70471.
A replay of the conference call will be available through August 29 at 11:59 p.m. Eastern time, by dialing (888) 203-1112 or (719) 457-0820, and entering passcode 1156408. On the Internet a replay will be available for 30 days at: http://www.visualwebcaster.com/event.asp?id=70471.
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* |
| - millions of dollars - |
| June 30, | December 31, | |||||||
| 2010 | 2009 | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 85.047 | 84.244 | ||||||
| Accounts receivable | ||||||||
| Accounts receivable - Net | 54.552 | 47.553 | ||||||
| Other accounts receivable | 34.260 | 31.885 | ||||||
| Prepaid expenses and others current assets | 10.979 | 9.934 | ||||||
| Total current assets | 184.84 | 173.62 | ||||||
| Property, machinery and equipment | 830.684 | 823.831 | ||||||
| Cumulative Depreciation | (160.743 | ) | (145.433 | ) | ||||
| Property, machinery and equipment - Net | 669.941 | 678.398 | ||||||
| Other assets | 46.542 | 53.250 | ||||||
| Deferred taxes | 96.803 | 97.274 | ||||||
| Total assets | 998.124 | 1,002.538 | ||||||
| Current liabilities: | ||||||||
| Bank loans and current maturities of long-term liabilities | 21.157 | 16.043 | ||||||
| Sale of accounts receivable | 9.460 | 7.869 | ||||||
| Suppliers | 32.900 | 27.957 | ||||||
| Other accounts payable and accrued expenses | 54.841 | 44.186 | ||||||
| Total current liabilities | 118.358 | 96.055 | ||||||
| Long-term liabilities: | ||||||||
| Bank loans | 63.078 | 70.974 | ||||||
| Trust certificates debt | 689.596 | 677.520 | ||||||
| Sale of accounts receivable | 6.556 | 12.047 | ||||||
| Other long-term liabilities | 27.486 | 26.134 | ||||||
| Total long-term liabilities | 786.716 | 786.675 | ||||||
| Total liabilities | 905.074 | 882.730 | ||||||
| Stockholders´ equity | ||||||||
| Common stock | 155.177 | 155.240 | ||||||
| Retained earnings | (41.595 | ) | (14.446 | ) | ||||
| Initial accumulated translation loss | (17.757 | ) | (17.757 | ) | ||||
| Cumulative translation adjusted | (10.971 | ) | (10.490 | ) | ||||
| 84.854 | 112.547 | |||||||
| Minority interest | 8.196 | 7.261 | ||||||
| Total stockholders´ equity | 93.050 | 119.808 | ||||||
| Total liabilities and stockholders´ equity | 998.124 | 1,002.538 | ||||||
| *Prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. |
| Grupo TMM, S.A.B. and subsidiaries |
| Statement of Income* |
| - millions of dollars - |
| Three months ended | Six months ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||
| Ports and Terminals | 5.722 | 3.955 | 11.885 | 8.341 | |||||||||
| Maritime | 51.676 | 47.687 | 102.388 | 102.137 | |||||||||
| Logistics | 18.093 | 22.984 | 42.483 | 44.222 | |||||||||
| Corporate and others | 0.002 | 0.004 | 0.006 | 0.011 | |||||||||
| Eliminations | (0.070 | ) | (0.084 | ) | (0.189 | ) | (0.200 | ) | |||||
| Revenue from freight and services | 75.423 | 74.546 | 156.573 | 154.511 | |||||||||
| Ports and Terminals | (3.995 | ) | (3.565 | ) | (7.762 | ) | (7.089 | ) | |||||
| Maritime | (24.821 | ) | (25.042 | ) | (52.298 | ) | (59.751 | ) | |||||
| Logistics | (18.956 | ) | (25.306 | ) | (42.675 | ) | (48.088 | ) | |||||
| Corporate and others | (0.017 | ) | 0.046 | (0.025 | ) | (0.022 | ) | ||||||
| Eliminations | 0.070 | 0.084 | 0.189 | 0.200 | |||||||||
| Cost of freight and services | (47.719 | ) | (53.783 | ) | (102.571 | ) | (114.750 | ) | |||||
| Ports and Terminals | (0.361 | ) | (0.399 | ) | (0.725 | ) | (0.780 | ) | |||||
| Maritime | (10.855 | ) | (8.648 | ) | (21.058 | ) | (17.318 | ) | |||||
| Logistics | (2.737 | ) | (1.927 | ) | (4.590 | ) | (3.089 | ) | |||||
| Corporate and others | (0.296 | ) | (0.057 | ) | (0.377 | ) | (0.098 | ) | |||||
| Depreciation of vessels and equipment | (14.249 | ) | (11.031 | ) | (26.750 | ) | (21.285 | ) | |||||
| Corporate expenses | (3.666 | ) | (3.732 | ) | (7.167 | ) | (7.229 | ) | |||||
| Ports and Terminals | 1.366 | (0.009 | ) | 3.398 | 0.472 | ||||||||
| Maritime | 16.000 | 13.997 | 29.032 | 25.068 | |||||||||
| Logistics | (3.600 | ) | (4.249 | ) | (4.782 | ) | (6.955 | ) | |||||
| Corporate and others | (0.311 | ) | (0.007 | ) | (0.396 | ) | (0.109 | ) | |||||
| Other (expenses) income - Net | (1.905 | ) | (0.137 | ) | (1.657 | ) | (0.205 | ) | |||||
| Operating Income | 7.884 | 5.863 | 18.428 | 11.042 | |||||||||
| Financial (expenses) income - Net | (15.301 | ) | (24.266 | ) | (32.202 | ) | (46.830 | ) | |||||
| Exchange gain (loss) - Net | 23.307 | (47.466 | ) | (10.960 | ) | (25.401 | ) | ||||||
| Net financial cost | 8.006 | (71.732 | ) | (43.162 | ) | (72.231 | ) | ||||||
| Gain (loss) before taxes | 15.890 | (65.869 | ) | (24.734 | ) | (61.189 | ) | ||||||
| Provision for taxes | (1.024 | ) | (0.557 | ) | (1.528 | ) | (0.402 | ) | |||||
| Net income (loss) for the period | 14.866 | (66.426 | ) | (26.262 | ) | (61.591 | ) | ||||||
| Attributable to: | |||||||||||||
| Minority interest | 0.395 | (0.080 | ) | 0.937 | 0.022 | ||||||||
| Equity holders of GTMM, S.A.B. | 14.471 | (66.346 | ) | (27.199 | ) | (61.613 | ) | ||||||
| Weighted average outstanding shares (millions) | 102.014 | 55.227 | 102.019 | 55.227 | |||||||||
| Income (loss) earnings per share (dollars / share) | 0.14 | (1.20 | ) | (0.27 | ) | (1.12 | ) | ||||||
| Outstanding shares at end of period (millions) | 101.995 | 55.227 | 101.995 | 55.227 | |||||||||
| Income (loss) earnings per share (dollars / share) | 0.14 | (1.20 | ) | (0.27 | ) | (1.12 | ) | ||||||
| *Prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. |
| Grupo TMM, S.A.B. and subsidiaries |
| Statement of Cash Flows* |
| - millions of dollars - |
| Three months ended | Six months ended | |||||||||
| June 30, | June 30, | |||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||
| Cash flow from operation activities: | ||||||||||
| Net income (loss) for the period | 14.866 | (66.426 | ) | (26.262 | ) | (61.591 | ) | |||
| Charges (credits) to income not affecting resources: | ||||||||||
| Depreciation & amortization | 15.884 | 12.427 | 30.196 | 24.262 | ||||||
| Other non-cash items | (8.166 | ) | 63.397 | 42.632 | 65.135 | |||||
| Total non-cash items | 7.718 | 75.824 | 72.828 | 89.397 | ||||||
| Changes in assets & liabilities | (5.243 | ) | (15.681 | ) | (18.206 | ) | (12.923 | ) | ||
| Total adjustments | 2.475 | 60.143 | 54.622 | 76.474 | ||||||
| Net cash provided by (used in) operating activities | 17.341 | (6.283 | ) | 28.360 | 14.883 | |||||
| Cash flow from investing activities: | ||||||||||
| Proceeds from sales of assets | 0.418 | 6.141 | 4.585 | 7.452 | ||||||
| Payments for purchases of assets | (8.147 | ) | (11.719 | ) | (10.855 | ) | (38.743 | ) | ||
| Sale of share of subsidiaries | 4.062 | 4.062 | ||||||||
| Dividends from non-consolidated subsidiaries | 0.643 | 0.643 | ||||||||
| Net cash used in investment activities | (3.667 | ) | (4.935 | ) | (2.208 | ) | (30.648 | ) | ||
| Cash flow provided by financing activities: | ||||||||||
| Short-term borrowings (net) | 2.219 | (0.512 | ) | 7.203 | (0.939 | ) | ||||
| Sale (repurchase) of accounts receivable (net) | (2.608 | ) | (7.221 | ) | (4.450 | ) | (14.445 | ) | ||
| Repayment of long-term debt | (17.368 | ) | (24.564 | ) | (30.930 | ) | (33.190 | ) | ||
| Proceeds from issuance of long-term debt | 1.560 | 1.560 | ||||||||
| Acquisition of treasury shares, net | (0.013 | ) | (0.013 | ) | ||||||
| Net cash used in financing activities | (16.210 | ) | (32.297 | ) | (26.630 | ) | (48.574 | ) | ||
| Exchange losses on cash | (0.370 | ) | 9.553 | 1.281 | 4.047 | |||||
| Net (decrease) increase in cash | (2.906 | ) | (33.962 | ) | 0.803 | (60.292 | ) | |||
| Cash at beginning of period | 87.953 | 142.117 | 84.244 | 168.447 | ||||||
| Cash at end of period | 85.047 | 108.155 | 85.047 | 108.155 | ||||||
| *Prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. |
Contact Information:
TMM COMPANY CONTACT:
Jacinto Marina
Deputy CEO
011-525-55-629-8866 ext. 2901