MEXICO CITY, MEXICO--(Marketwired - Feb 29, 2016) - Grupo TMM, S.A.B. (
2015 Fourth-Quarter and Full-Year Results Include:
- Revenues of $784.7 million in fourth quarter and $3,128.8 million in full year, representing an increase of 2.5 percent and 10.5 percent, respectively, over the same periods last year
- Full-year free cash flow of $475.8 million
- Maritime fleet utilization at 90.0 percent for full year
Grupo TMM, S.A.B. (
MANAGEMENT OVERVIEW
José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "Our continued focus on profitable operations and optimization of costs and expenses resulted in improvements in our financial results over last year, even in this volatile period for the industry and the national and international markets.
"We continue to develop alternatives to improve the balance sheet and create long-term value for our investors. With over 60 years of experience and the opening of the Energy Reform, we remain optimistic for the long term.
FOURTH-QUARTER AND FULL-YEAR 2015 OPERATING AND FINANCIAL RESULTS
Compared to the same period last year, 2015 fourth-quarter consolidated revenues increased 2.5 percent due to higher revenues at the Port and Terminals and Maritime segments. For 2015 consolidated revenues increased 10.5 percent year over year mainly attributable to higher Maritime segment revenues.
Excluding non-recurring operations, year-over-year fourth-quarter 2015 consolidated operating profit decreased $28.2 million, or 24.5 percent, but increased $47.4 million, or 13.4 percent, in 2015.
In the 2015 fourth quarter, non-recurring operations reported $142.3 million of income, consisting mainly of proceeds from the sale of certain non-strategic assets, compared to a $175.4 million loss in the same period last year, which was attributable to a change in the accounting policy for the valuation of vessels. In 2015, non-recurring operations reported $100.8 million of income compared with $123.8 million of income in 2014, which was mainly attributable to a combination of the sale of certain assets and the change in the accounting policy for the valuation of vessel in both periods.
Excluding non-recurring operations, fourth-quarter 2015 consolidated EBITDA was $236.9 million compared to $261.7 million for the same period last year. In 2015, consolidated EBITDA was $1,023.7 million compared to $954.8 million for 2014.
Excluding non-recurring operations, consolidated free cash flow in the 2015 fourth quarter was $62.3 million compared to $80.4 million in the same period last year. Consolidated free cash flow in 2015 was $325.2 million compared to $204.2 million in 2014.
Year over year, fourth-quarter Maritime revenues grew $9.0 million, or 1.3 percent, due mainly to higher revenues in product tankers of 20.7 percent attributable to 100.0 percent utilization, in chemical tankers of 17.0 percent mainly due to an improvement in average freight rates and in tug vessels of 8.1 percent attributable to increased calls at the port of Manzanillo. Improvements in 2015 fourth-quarter revenues were partially offset by lower revenues in offshore of 5.0 percent due to a 10.0 reduction in Pemex rates to 12.5 percent, which occurred in the second half of 2015 and was applicable to all suppliers, partially offset by a favorable exchange rate, and in shipyard of 26.9 percent attributable to revenue mix. Comparing 2015 with 2014, Maritime revenues improved $282.6 million, or 11.4 percent, mainly due to increased revenues in offshore of 12.2 percent and in product tankers of 13.3 percent, both attributable to improved utilization and a favorable exchange rate, partially offset by Pemex rates reduction, in chemical tankers of 18.8 percent from improvement in average freight rates, and in tug vessels of 4.5 percent attributable to higher calls at the port of Manzanillo. Improvements in 2015 revenues were partially offset by lower revenues in the shipyard of 10.8 percent attributable to revenue mix.
Excluding non-recurring operations, Maritime operating profit decreased 22.0 percent to $96.5 million in the 2015 fourth quarter from $123.8 million in the same period of 2014, mainly due to a reduction in Pemex rates, a 3.5 percent increase in consideration for the extension of tugs vessel service in Manzanillo, higher fuel costs and the exchange rate impact of the lease of two vessels. Maritime operating income increased 16.1 percent to $585.5 million in 2015 from $504.2 million in 2014, mainly due to 100.0 percent utilization of product tankers in the last two quarters of 2015 and improved average rates in chemical tankers, partially offset by the impact of the Pemex rate reduction in offshore vessels as well as higher costs in harbor tugs.
Excluding non-recurring operations, Maritime EBITDA decreased 8.9 percent to $240.6 million in the 2015 fourth quarter compared to $264.2 million in the same period of 2014. Fourth-quarter 2015 EBITDA margin was 34.9 percent. Maritime EBITDA increased 9.5 percent to $1,183.8 million in 2015 compared to $1,081.5 million in 2014. EBITDA margin was 42.7 percent for 2015.
Ports and Terminals revenues increased 15.8 percent in the 2015 fourth quarter to $76.9 million compared to $66.4 million in the same period of 2014, primarily attributable to an increase in revenues at maintenance and repair operations due to higher volumes in Ensenada, Manzanillo and Veracruz, at Tampico due to the increased steel volumes and at agencies due to improved average rates, partially offset by lower revenues at Acapulco due to reduced car volumes. In 2015 Ports and Terminals revenues increased 2.5 percent to $283.9 percent million compared to $276.9 million in 2014 mainly due to higher revenues of $10.3 million in maintenance and repair operations, $8.6 million at Tampico, $5.9 million in agencies and $6.6 million at intermodal, partially offset by lower revenues of $9.7 million at Acapulco, $9.1 million in the Automotive segment and $5.6 million in Tuxpan.
In the 2015 fourth quarter, Ports and Terminals operating profit increased $4.5 million to $9.1 million compared to $4.6 million in the same period of 2014 mainly attributable to improved results at maintenance and repair operations and shunting services at Tampico, both due to improved volumes, and at agencies due to better average rates, partially offset by lower car volume in Acapulco. In 2015 Ports and Terminals operating profit increased $3.9 million to $35.0 million compared to $31.1 million in 2014, attributable to improved results at Tampico, agencies and automotive, partially offset by lower results at Acapulco and Tuxpan, as well as increased costs at maintenance and repair operations.
Ports and Terminals EBITDA increased $4.3 million to $13.2 million in the 2015 fourth quarter from $8.8 million in the same period of 2014. Fourth-quarter 2015 EBITDA margin was 17.1 percent. For 2015, Ports and Terminals EBITDA was $50.5 million compared to $46.1 million in 2014. EBITDA margin for 2015 was 17.8 percent.
The Company made a reasonable decision to cancel its deferred tax asset, which is mainly originated by tax loss carryforwards, because the Company will likely not generate sufficient future taxable income. The cancellation of the tax loss carryforwards negatively impacted fourth-quarter and full-year 2015 net income by $729.3 million. Excluding the cancellation of the tax loss carryforwards, fourth-quarter 2015 net income would have been of $37.9 million and 2015 net loss would have been $310.7 million. This accounting change does not affect cash flow.
DEBT
As of December 31, 2015, TMM's total net debt was $9,639.6 million. The Company paid approximately $830.0 million of its Trust Certificates debt, including $240.0 of capital, as of December 31, 2015. Of TMM's total debt, $684.7 million, or 6.4 percent, is short term.
| Total Debt* | ||
| - Millions of Mexican Pesos - | ||
| As of 12/31/13 | As of 12/31/15 | |
| Mexican Trust Certificates (1) | $9,900.9 | $9,752.6 |
| Other Corporate Debt | 1,087.3 | 927.7 |
| Total Debt | $10,988.2 | $10,680.3 |
| Cash | 743.0 | 1,040.7 |
| Net Debt | $10,245.2 | $9,639.6 |
*Book Value
(1) 20-year term, non-recourse to the Company and rated "AA" with Stable Outlook by HR Ratings de México.
Headquartered in Mexico City, Grupo TMM is a Latin American maritime transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of maritime services port management and logistics. Visit Grupo 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 Section27A 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 Pesos - | ||||||||
| December 31, | December 31, | |||||||
| 2015 | 2014 | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 1,040.7 | 743.0 | ||||||
| Accounts receivable | ||||||||
| Accounts receivable - Net | 1,048.4 | 782.0 | ||||||
| Other accounts receivable | 199.0 | 947.1 | ||||||
| Prepaid expenses and others current assets | 128.0 | 149.0 | ||||||
| Non-current assets held for sale | 182.6 | 184.9 | ||||||
| Total current assets | 2,598.7 | 2,806.1 | ||||||
| Property, machinery and equipment | 10,061.4 | 9,459.4 | ||||||
| Cumulative Depreciation | (517.8 | ) | (461.0 | ) | ||||
| Property, machinery and equipment - Net | 9,543.6 | 8,998.4 | ||||||
| Other assets | 273.1 | 309.5 | ||||||
| Deferred taxes | - | 810.3 | ||||||
| Total assets | 12,415.3 | 12,924.3 | ||||||
| Current liabilities: | ||||||||
| Bank loans and current maturities of long-term liabilities | 684.7 | 918.6 | ||||||
| Suppliers | 279.0 | 371.6 | ||||||
| Other accounts payable and accrued expenses | 486.5 | 631.0 | ||||||
| Liabilities directly associated with non-current assets held for sale | 96.1 | 94.2 | ||||||
| Total current liabilities | 1,546.4 | 2,015.3 | ||||||
| Long-term liabilities: | ||||||||
| Bank loans | 320.9 | 344.4 | ||||||
| Trust certificates debt | 9,674.6 | 9,725.1 | ||||||
| Deferred taxes | 253.8 | - | ||||||
| Other long-term liabilities | 211.2 | 201.9 | ||||||
| Total long-term liabilities | 10,460.5 | 10,271.4 | ||||||
| Total liabilities | 12,006.9 | 12,286.8 | ||||||
| Total stockholders´ equity | 408.5 | 637.5 | ||||||
| Total liabilities and stockholders´ equity | 12,415.3 | 12,924.3 | ||||||
*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 (Under Discontinuing Operations) | |||||||||
| - Millions of Pesos - | |||||||||
| Three months ended | Year ended | ||||||||
| December 31, | December 31, | ||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||
| Ports and Terminals | 76.9 | 66.4 | 283.9 | 276.9 | |||||
| Maritime | 689.2 | 680.2 | 2,770.9 | 2,488.3 | |||||
| Corporate and others | 18.6 | 18.7 | 74.0 | 67.2 | |||||
| Revenue from freight and services | 784.7 | 765.3 | 3,128.8 | 2,832.4 | |||||
| Ports and Terminals | (63.7 | ) | (57.6 | ) | (233.4 | ) | (230.8 | ) | |
| Maritime | (448.6 | ) | (416.1 | ) | (1,630.3 | ) | (1,384.2 | ) | |
| Corporate and others | (18.3 | ) | (15.9 | ) | (72.7 | ) | (64.9 | ) | |
| Cost of freight and services | (530.6 | ) | (489.5 | ) | (1,936.4 | ) | (1,680.0 | ) | |
| Ports and Terminals | (4.1 | ) | (4.3 | ) | (15.6 | ) | (15.1 | ) | |
| Maritime | (144.0 | ) | (395.8 | ) | (648.1 | ) | (832.7 | ) | |
| Corporate and others | (1.9 | ) | (1.9 | ) | (7.4 | ) | (7.5 | ) | |
| Depreciation and amortization | (150.0 | ) | (402.0 | ) | (671.1 | ) | (855.3 | ) | |
| Corporate expenses | (17.2 | ) | (14.2 | ) | (211.9 | ) | (175.1 | ) | |
| Ports and Terminals | 9.1 | 4.6 | 35.0 | 31.1 | |||||
| Maritime | 96.5 | (131.7 | ) | 492.5 | 271.3 | ||||
| Corporate and others | (1.5 | ) | 0.9 | (6.1 | ) | (5.3 | ) | ||
| Other (expenses) income - Net | 142.3 | 80.0 | 193.8 | 356.8 | |||||
| Operating income (loss) | 229.1 | (60.3 | ) | 503.2 | 478.9 | ||||
| Financial (expenses) income - Net | (193.7 | ) | (197.6 | ) | (778.4 | ) | (831.4 | ) | |
| Exchange gain (loss) - Net | 13.3 | (41.1 | ) | 15.7 | (66.3 | ) | |||
| Net financial cost | (180.4 | ) | (238.7 | ) | (762.7 | ) | (897.7 | ) | |
| Income (loss) before taxes | 48.8 | (299.0 | ) | (259.6 | ) | (418.8 | ) | ||
| Provision for taxes | (730.4 | ) | 4.0 | (732.6 | ) | (4.7 | ) | ||
| Net loss before discontinuing operations | (681.7 | ) | (295.0 | ) | (992.2 | ) | (423.5 | ) | |
| Loss from discontinuing operations | (8.3 | ) | (20.2 | ) | (50.0 | ) | (91.0 | ) | |
| Net loss for the period | (690.0 | ) | (315.3 | ) | (1,042.2 | ) | (514.5 | ) | |
| Attributable to: | |||||||||
| Minority interest | 1.5 | 4.2 | (2.3 | ) | 2.4 | ||||
| Equity holders of GTMM, S.A.B. | (691.4 | ) | (319.4 | ) | (1,040.0 | ) | (516.9 | ) | |
| Weighted average outstanding shares (millions) | 102.183 | 102.183 | 102.183 | 102.183 | |||||
| Income (loss) earnings per share (dollars / share) | (6.8 | ) | (3.1 | ) | (10.2 | ) | (5.1 | ) | |
| Outstanding shares at end of period (millions) | 102.183 | 102.183 | 102.183 | 102.183 | |||||
| Income (loss) earnings per share (dollars / share) | (6.8 | ) | (3.1 | ) | (10.2 | ) | (5.1 | ) | |
*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 (Under Discontinuing Operations) | |||||||||
| - Millions of Pesos - | |||||||||
| Three months ended | Year ended | ||||||||
| December 31, | December 31, | ||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||
| Cash flow from operation activities: | |||||||||
| Net loss before discontinuing operations | (681.7 | ) | (295.0 | ) | (992.2 | ) | (423.5 | ) | |
| Charges (credits) to income not affecting resources: | |||||||||
| Depreciation & amortization | 170.1 | 421.3 | 746.9 | 933.4 | |||||
| Deferred taxes | 729.3 | - | 729.3 | - | |||||
| Other non-cash items | 37.3 | 142.7 | 632.4 | 476.9 | |||||
| Total non-cash items | 936.7 | 564.0 | 2,108.6 | 1,410.3 | |||||
| Changes in assets & liabilities | (148.9 | ) | (258.7 | ) | (514.6 | ) | (299.2 | ) | |
| Total adjustments | 787.8 | 305.3 | 1,594.0 | 1,111.1 | |||||
| Net cash provided by operating activities | 106.1 | 10.3 | 601.8 | 687.5 | |||||
| Cash flow from investing activities: | |||||||||
| Proceeds from sales of assets | - | - | 62.9 | 79.0 | |||||
| Payments for purchases of assets | (16.5 | ) | (25.2 | ) | (96.4 | ) | (159.7 | ) | |
| Sale of Subsidiaries | 161.4 | 8.3 | 829.8 | 25.5 | |||||
| Net cash provided by (used in) investment activities | 144.9 | (17.0 | ) | 796.4 | (55.3 | ) | |||
| Cash flow provided by financing activities: | |||||||||
| Short-term borrowings (net) | (15.0 | ) | 25.9 | (231.7 | ) | 7.2 | |||
| Repayment of long-term debt | (380.1 | ) | (43.9 | ) | (962.4 | ) | (916.2 | ) | |
| Proceeds from issuance of long-term debt | - | 61.1 | 30.0 | 108.1 | |||||
| Net cash (used in) provided by financing activities | (395.1 | ) | 43.1 | (1,164.1 | ) | (800.9 | ) | ||
| Exchange losses on cash | 4.5 | 13.1 | 63.5 | 16.7 | |||||
| Net (decrease) increase in cash | (139.6 | ) | 49.5 | 297.7 | (152.0 | ) | |||
| Cash at beginning of period | 1,180.3 | 693.5 | 743.0 | 895.0 | |||||
| Cash at end of period | 1,040.7 | 743.0 | 1,040.7 | 743.0 | |||||
*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
011-525-55-629-8718
Benjamin Ampudia
CFO
011-525-55-629-8704
Mauricio Monterrubio
Investor Relations
011-525-55-629-8712
AT DRESNER CORPORATE SERVICES:
Kristine Walczak
(investors, analysts, media)
312-726-3600