MEXICO CITY--(Marketwire - October 28, 2010) - Grupo TMM, S.A.B. (
MANAGEMENT OVERVIEW
José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "TMM continues to report improved operating results in the third quarter, even in this volatile period for our industry. Year over year, TMM's third-quarter 2010 consolidated revenue, operating profit and EBITDA improved, demonstrating sustained operational efficiency and a successful business strategy. Additionally, for the fourth consecutive quarter, consolidated EBITDA exceeded our financial expenses, resulting in positive free cash flow, a trend we expect to continue through year-end and beyond.
"We have capitalized on our efforts to grow a high-quality fleet and to build a consistent revenue stream, and in the third quarter, we continued to reap the rewards of our investment in new vessels made over the past two years. Additionally, our Ports and Terminals division recorded significant improvements in both 2010 periods over last year's periods, as cruise ship activity at major Mexican ports and international trade continued to recover."
Serrano concluded, "Our view of the longer-term industry fundamentals remains positive, and we continue to be ready to capitalize on opportunities to build TMM's asset base and enhance our growth profile. With an eventual recovery of the markets, continued optimization of the use of our fleet and further participation in Port-related activities, we continue to see upside potential in TMM's operating margins and earnings."
THIRD-QUARTER AND FIRST-NINE MONTHS 2010 FINANCIAL AND OPERATING RESULTS
Compared to the same periods of last year, consolidated revenue increased 0.3 percent in the 2010 third quarter and 1.0 percent in the 2010 first nine months. Revenue in the 2010 periods was negatively impacted by reduced revenue at the Logistics division.
Consolidated operating profit increased 121.0 percent and 81.1 percent in the 2010 third quarter and 2010 first nine months, respectively. Higher operating profit in the 2010 periods was largely due to improvements at the Ports and Terminals division. Additionally, consolidated operating margin grew to 11.6 percent in the 2010 first nine months compared to 6.5 percent in the 2009 first nine months.
In the 2010 third quarter, EBITDA increased 38.7 percent to $22.2 million compared to $16.0 million in the same period of last year. In the first nine months of 2010, EBITDA increased 39.5 percent to $67.4 million compared to $48.3 million in the same period of 2009. However, first-nine months 2009 EBITDA included a $4.4 million profit from the sale of two offshore vessels in the second quarter of 2009. Without this one-time profit, EBITDA increased 53.5 percent, or $23.5 million, in the 2010 first nine months, compared to the same period last year.
At Maritime, third-quarter 2010 revenue grew 3.9 percent compared to the 2009 third quarter, mainly due to increases at every segment except for chemical tankers, which had one less vessel in operation. Maritime's operating profit grew 6.4 percent in the 2010 third quarter compared to the same period of the previous year, mainly as a result of a 225.0 percent gross profit increase at product tankers due to higher average daily rates as well as a 66.7 percent gross profit increase at chemical tankers due to more efficient routes and reduced costs.
Maritime revenue in the first nine months of 2010 increased 1.4 percent as a result of improvements at offshore, mainly due to certain price adjustments and to the addition of a process vessel in the first quarter, and at the harbor towage segment, due to higher volumes. In the first nine months of 2010, operating profit grew 12.3 percent compared to the previous year's first nine months. In particular, product tankers' gross profit improved 125.9 percent attributable to all vessels working with contracts and to higher average daily rates in the 2010 second and third quarters compared to the same periods in 2009. Additionally, gross profit in the harbor towage segment improved 35.2 percent in the 2010 nine-month period due mainly to increased vessel calls at Manzanillo.
In the 2010 third-quarter and first-nine months periods, Ports and Terminals' revenue increased 41.0 percent and 42.6 percent, respectively, both compared to the same periods last year. Additionally, operating profit for this division increased from $0.2 million in the 2009 third quarter to $1.0 million in the 2010 third quarter and from $0.6 million in the 2009 first nine months to $4.4 million in the 2010 first nine months.
Improved results at the Ports and Terminals division in the 2010 periods compared to last year, were mainly attributable to increased revenue and profit at Acapulco as a result of higher cruise ship calls and auto handling volumes; at shipping agencies due to higher volumes, benefitted by one new cruise line route among Mexican major ports in the third quarter; and at maintenance and repair due to continued improvement in the revenue mix and higher container volumes, specifically at Manzanillo.
Compared to the same periods of last year, Logistics revenue decreased 15.8 percent and 7.8 percent in the 2010 third quarter and first nine months, respectively. These decreases were mainly attributable to lower trucking revenue and to $5.4 million of reduced revenue 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 third quarter and 2010 first nine months were lower compared to the same periods of 2009 and included certain book losses.
Financial expenses in the third quarter of 2010 were impacted by $1.9 million of one-time charges related to the consolidation of the three tranches of the Company's Trust Certificates Program and the prepayment of certain dollar denominated debt. Net financial cost included a net exchange loss of $12.9 million in the third quarter of 2010 and a net exchange loss of $23.8 million in the first nine months of 2010.
CONFERENCE CALL
TMM's management will host a conference call and Webcast to review financial and operational highlights on Friday, October 29 at 11:00 a.m. Eastern time.
To participate in the conference call, please dial (888) 452-4007 (domestic) or (719) 457-2658 (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=73118.
A replay of the conference call will be available through November 29 at 11:59 p.m. Eastern time, by dialing (888) 203-1112 or (719) 457-0820, and entering passcode 5930504. On the Internet a replay will be available for 30 days at: http://www.visualwebcaster.com/event.asp?id=73118.
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 - | |||||||
| September 30,2010 | December 31,2009 | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | 107.308 | 84.244 | |||||
| Accounts receivable | |||||||
| Accounts receivable - Net | 55.789 | 47.553 | |||||
| Other accounts receivable | 39.630 | 31.885 | |||||
| Prepaid expenses and other current assets | 10.574 | 9.934 | |||||
| Total current assets | 213.301 | 173.616 | |||||
| Property, machinery and equipment | 833.021 | 823.831 | |||||
| Cumulative Depreciation | (169.900 | ) | (145.433 | ) | |||
| Property, machinery and equipment - Net | 663.121 | 678.398 | |||||
| Other assets | 44.586 | 53.250 | |||||
| Deferred taxes | 96.803 | 97.274 | |||||
| Total assets | 1.017.811 | 1.002.538 | |||||
| Current liabilities: | |||||||
| Bank loans and current maturities of long-term liabilities | 21.389 | 16.043 | |||||
| Sale of accounts receivable | 9.905 | 7.869 | |||||
| Suppliers | 24.134 | 27.957 | |||||
| Other accounts payable and accrued expenses | 58.490 | 44.186 | |||||
| Total current liabilities | 113.918 | 96.055 | |||||
| Long-term liabilities: | |||||||
| Bank loans | 53.920 | 70.974 | |||||
| Trust certificates debt | 754.803 | 677.520 | |||||
| Sale of accounts receivable | 2.391 | 12.047 | |||||
| Other long-term liabilities | 26.885 | 26.134 | |||||
| Total long-term liabilities | 837.999 | 786.675 | |||||
| Total liabilities | 951.917 | 882.730 | |||||
| Stockholders' equity | |||||||
| Common stock | 155.177 | 155.240 | |||||
| Retained earnings | (68.833 | ) | (14.446 | ) | |||
| Initial accumulated translation loss | (17.757 | ) | (17.757 | ) | |||
| Cumulative translation adjusted | (10.971 | ) | (10.490 | ) | |||
| 57.616 | 112.547 | ||||||
| Minority interest | 8.278 | 7.261 | |||||
| Total stockholders' equity | 65.894 | 119.808 | |||||
| Total liabilities and stockholders' equity | 1.017.811 | 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 September 30, | Nine months ended September 30, | |||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||
| Ports and Terminals | 5.502 | 3.876 | 17.387 | 12.217 | ||||||
| Maritime | 51.060 | 49.171 | 153.448 | 151.308 | ||||||
| Logistics | 18.122 | 21.550 | 60.531 | 65.583 | ||||||
| Revenue from freight and services | 74.684 | 74.597 | 231.366 | 229.108 | ||||||
| Ports and Terminals | (4.115 | ) | (3.327 | ) | (11.877 | ) | (10.416 | ) | ||
| Maritime | (25.208 | ) | (25.953 | ) | (77.506 | ) | (85.704 | ) | ||
| Logistics | (19.065 | ) | (25.239 | ) | (61.576 | ) | (73.149 | ) | ||
| Cost of freight and services | (48.388 | ) | (54.519 | ) | (150.959 | ) | (169.269 | ) | ||
| Ports and Terminals | (0.360 | ) | (0.374 | ) | (1.085 | ) | (1.154 | ) | ||
| Maritime | (10.930 | ) | (9.228 | ) | (31.988 | ) | (26.546 | ) | ||
| Logistics | (2.308 | ) | (2.561 | ) | (6.898 | ) | (5.650 | ) | ||
| Corporate and others | (0.216 | ) | (0.059 | ) | (0.593 | ) | (0.157 | ) | ||
| Depreciation of vessels and equipment | (13.814 | ) | (12.222 | ) | (40.564 | ) | (33.507 | ) | ||
| Corporate expenses | (3.487 | ) | (3.976 | ) | (10.654 | ) | (11.205 | ) | ||
| Ports and Terminals | 1.027 | 0.175 | 4.425 | 0.647 | ||||||
| Maritime | 14.922 | 13.990 | 43.954 | 39.058 | ||||||
| Logistics | (3.251 | ) | (6.250 | ) | (7.943 | ) | (13.216 | ) | ||
| Corporate and others | (0.216 | ) | (0.059 | ) | (0.593 | ) | (0.157 | ) | ||
| Other (expenses) income - Net | (0.694 | ) | (0.084 | ) | (2.351 | ) | (0.289 | ) | ||
| Operating Income | 8.301 | 3.796 | 26.838 | 14.838 | ||||||
| Financial (expenses) income - Net | (21.084 | ) | (21.028 | ) | (53.286 | ) | (67.858 | ) | ||
| Exchange gain (loss) - Net | (12.879 | ) | 17.967 | (23.839 | ) | (7.434 | ) | |||
| Net financial cost | (33.963 | ) | (3.061 | ) | (77.125 | ) | (75.292 | ) | ||
| Gain (loss) before taxes | (25.662 | ) | 0.735 | (50.287 | ) | (60.454 | ) | |||
| Provision for taxes | (1.603 | ) | (0.245 | ) | (3.131 | ) | (0.647 | ) | ||
| Net income (loss) for the period | (27.265 | ) | 0.490 | (53.418 | ) | (61.101 | ) | |||
| Attributable to: | ||||||||||
| Minority interest | 0.082 | 0.559 | 1.019 | 0.581 | ||||||
| Equity holders of GTMM, S.A.B. | (27.347 | ) | (0.069 | ) | (54.437 | ) | (61.682 | ) | ||
| Weighted average outstanding shares (millions) | 101.995 | 55.227 | 102.011 | 55.227 | ||||||
| Income (loss) earnings per share (dollars / share) | (0.27 | ) | (0.00 | ) | (0.53 | ) | (1.12 | ) | ||
| Outstanding shares at end of period (millions) | 101.995 | 55.227 | 101.995 | 55.227 | ||||||
| Income (loss) earnings per share (dollars / share) | (0.27 | ) | (0.00 | ) | (0.53 | ) | (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 September 30, | Nine months ended September 30, | |||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||
| Cash flow from operation activities: | ||||||||||
| Net income (loss) for the period | (27.265 | ) | 0.490 | (53.418 | ) | (61.101 | ) | |||
| Charges (credits) to income not affecting resources: | ||||||||||
| Depreciation & amortization | 15.773 | 13.283 | 45.969 | 37.545 | ||||||
| Other non-cash items | 30.651 | 5.901 | 73.283 | 71.036 | ||||||
| Total non-cash items | 46.424 | 19.184 | 119.252 | 108.581 | ||||||
| Changes in assets & liabilities | (10.950 | ) | (9.147 | ) | (29.156 | ) | (22.070 | ) | ||
| Total adjustments | 35.474 | 10.037 | 90.096 | 86.511 | ||||||
| Net cash provided by operating activities | 8.209 | 10.527 | 36.678 | 25.410 | ||||||
| Cash flow from investing activities: | ||||||||||
| Proceeds from sales of assets | 0.232 | 4.383 | 4.817 | 11.835 | ||||||
| Payments for purchases of assets | (4.029 | ) | (14.794 | ) | (14.884 | ) | (53.537 | ) | ||
| Sale of share of subsidiaries | 4.062 | |||||||||
| Common stock decrease of subsidiaries | (0.202 | ) | (0.202 | ) | ||||||
| Dividends from non-consolidated subsidiaries | 0.643 | |||||||||
| Net cash used in investment activities | (3.797 | ) | (10.613 | ) | (6.005 | ) | (41.261 | ) | ||
| Cash flow provided by financing activities: | ||||||||||
| Short-term borrowings (net) | (6.667 | ) | 0.536 | (0.939 | ) | |||||
| Sale (repurchase) of accounts receivable (net) | (2.603 | ) | (7.222 | ) | (7.053 | ) | (21.667 | ) | ||
| Repayment of long-term debt | (23.791 | ) | (7.300 | ) | (54.721 | ) | (40.490 | ) | ||
| Proceeds from issuance of long-term debt | 49.031 | 8.832 | 50.591 | 8.832 | ||||||
| Acquisition of treasury shares, net | (0.013 | ) | ||||||||
| Net cash provided by (used in) financing activities | 15.970 | (5.690 | ) | (10.660 | ) | (54.264 | ) | |||
| Exchange losses on cash | 1.770 | (2.609 | ) | 3.051 | 1.438 | |||||
| Net (decrease) increase in cash | 22.261 | (8.385 | ) | 23.064 | (68.677 | ) | ||||
| Cash at beginning of period | 85.047 | 108.155 | 84.244 | 168.447 | ||||||
| Cash at end of period | 107.308 | 99.770 | 107.308 | 99.770 | ||||||
*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