Grupo TMM, S.A.B. (NYSE: TMM) (BMV: TMM A)
("TMM" or the "Company"), a Mexican
intermodal transportation and logistics Company, reported today its
financial results for the third quarter and first nine months of
2011.
MANAGEMENT OVERVIEW José F. Serrano,
chairman and chief executive officer of Grupo TMM, said,
"Third-quarter consolidated operational results continued to be
affected by a challenging economic marketplace. At Maritime,
third-quarter results were negatively impacted by the global
reduction of tariffs for offshore vessels and product tankers
compared to the third quarter of 2010. However, Maritime's revenue
and fleet utilization sequentially improved from the first and
second quarters of this year. In the third quarter of 2011, our
offshore fleet utilization was at 88 percent and our product tanker
utilization was at 99 percent, both well above the industry
average."
Serrano continued, "Our strategy to renew our maritime fleet
through a 20-year, peso denominated financing with no recourse to
the Company benefitted us in the third quarter, as the peso
depreciated 14.3 percent versus the dollar, reducing the book value
of our peso denominated debt, which represents over 90 percent of
our total debt."
Serrano concluded, "During the third quarter, we continued to
work very closely with selected, interested parties for the
financial implementation of the development of a container and
liquids terminal at the Port of Tuxpan and the addition of
specialized offshore vessels to TMM's fleet. These projects will be
funded with a combination of equity and debt. We have satisfied all
preliminary requirements, so once the funding is in place, we will
be ready to carry out these projects, which will significantly
improve our revenue base, profits and capital structure."
THIRD-QUARTER AND FIRST NINE-MONTH 2011
FINANCIAL AND OPERATING RESULTS Compared to the same periods
of last year, third-quarter and first nine-month 2011 revenue
decreased 8.0 percent and 11.7 percent, respectively, mainly due to
revenue reductions at Maritime.
Third-quarter and first nine-month 2011 consolidated operating
profit decreased 28.6 percent and 17.5 percent, respectively,
compared to the same periods of 2010. Consolidated operating profit
included other income net of $1.5 million in the 2011 third quarter
and of $8.6 million in the 2011 first nine months, mainly
attributable to the recovery of certain tax incentives.
Compared to the same periods of last year, consolidated EBITDA
decreased 15.8 percent to $18.7 million in the third quarter of
2011 and decreased 8.7 percent to $61.5 million in the first nine
months of 2011.
Interest expense in the 2011 third quarter and in the 2011 first
nine months was $16.6 million and $51.2 million, respectively.
EBITDA minus interest expense resulted in free cash flow of $2.2
million in the 2011 third quarter and of $10.3 million in the 2011
first nine months.
Net financial cost benefitted by net exchange gains of $109.0
million and $67.3 million in the 2011 third quarter and in the 2011
first nine months, respectively, as a result of the depreciation of
the peso versus the dollar. The peso depreciated 14.3 percent in
the 2011 third quarter and 8.7 percent in the 2011 first nine
months.
Maritime revenue in the third quarter and first nine months of
2011 decreased 12.9 percent and 16.7 percent, respectively,
compared to the same periods of last year. Third-quarter and first
nine-month 2011 operating profit was down 29.5 percent and 31.4
percent, respectively, compared to the same periods of last year.
These reductions were partially offset by revenue and profit
increases at harbor tugs due to increased vessel calls at
Manzanillo and to higher revenue per call.
Year over year, in the 2011 first nine months, offshore revenue
decreased 20.4 percent to $76.1 million, negatively impacted by
lower average daily tariffs, lower utilization and three less
vessels in operation. Product tanker revenue decreased 10.7 percent
to $27.4 million attributable to lower average daily tariffs and to
lower utilization. Chemical tanker revenue decreased 24.7 percent
to $14.0 million as a result of having one less vessel in operation
in the second and third quarters and to lower freight volumes.
However, the chemical tanker segment returned to profitability in
the 2011 third quarter generating $0.6 million of gross profit.
Compared to the same periods of last year, Ports and Terminals
third-quarter and first nine-month 2011 revenue increased 25.4
percent and 20.1 percent, respectively. This revenue increase was
partially offset by lower revenue in the cruise ship segment at
Acapulco and in shipping agencies in both 2011 periods, as some
cruise lines changed routes from the Pacific to other destinations.
Year over year, operating profit in the 2011 third quarter remained
unchanged at $1.0 million and in the 2011 nine months increased 2.3
percent.
Compared to the same period of last year, first nine-month 2011
revenue increased 57.9 percent at the automotive segment to $6.0
million, and gross profit improved 83.3 percent, due to higher
volumes, from 457,775 automobiles to 592,975 automobiles.
Third-quarter 2011 car handling revenue at Acapulco nearly doubled,
increasing 96.1 percent to $1.2 million, compared to the same
period last year, contributing to this division's first nine-month
2011 revenue improvement. Maintenance and repair revenue increased
13.2 percent to $6.0 million in the first nine-month comparison due
mainly to higher volumes at the Manzanillo depot and to the
addition of a new client at Altamira in the second quarter.
Compared to the third quarter of 2010, Logistics revenue
decreased 4.4 percent in the 2011 period. Excluding $6.7 million of
revenue from the sale of assets in April 2010, Logistics revenue
increased 3.5 percent in the first nine months of 2011 compared to
the same period of 2010. The increase in the first nine months of
2011 was mainly attributable to higher revenue at the auto hauling
segment, which improved 32.8 percent compared to the same period of
last year, as a result of higher volumes.
DEBT As of September 30, 2011, TMM's total
debt was $761.5 million. The Company's Trust Certificates debt was
reduced by $66.8 million from the depreciation of the peso versus
the dollar in the 2011 first nine months, as a result of the
strengthening of the dollar versus the peso in August and
September. Also, in the 2011 first nine months, the Company reduced
its net debt by $30.8 million.
Total Debt
Million of U.S. Dollars
As of 12/31/10 As of 09/30/11
-------------- --------------
Mexican Trust Certificates (1) $ 786.4 $ 697.2
Securitization Facility 11.8 0.0
Other Corporate Debt 73.9 64.3
-------------- --------------
Total Debt (2) $ 872.1 $ 761.5
(1) 20-year term and non recourse to the Company (2) Of total
debt, only $11.0 million, or 1.4 percent, is short- term Exchange
Rate: 12.38 pesos/dollar at December 31, 2010, and 13.46
pesos/dollar at September 30, 2011
CONFERENCE CALL TMM's management will host
a conference call and Webcast to review financial and operational
highlights on Thursday, October 27 at 11:00 a.m. Eastern time.
To participate in the conference call, please dial (888) 401-4689 (domestic) or (719)
325-2227 (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=82770.
A replay of the conference call will be available through
November 26 at 11:59 p.m. Eastern time, by dialing (888) 203-1112 or (719) 457-0820,
and entering passcode 5334947. On the
Internet a replay will be available for 30 days at:
http://www.visualwebcaster.com/event.asp?id=82770.
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 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 10-K and 20-F on file with the United States
Securities and Exchange Commission.
Financial tables follow...
Grupo TMM, S.A.B. and subsidiaries
Balance Sheet*
- millions of dollars -
--------------- ---------------
September 30, December 31,
2011 2010
--------------- ---------------
Current assets:
Cash and cash equivalents 57.035 142.319
--------------- ---------------
Accounts receivable
Accounts receivable - Net 46.543 37.594
--------------- ---------------
Other accounts receivable 24.910 20.870
--------------- ---------------
Prepaid expenses and others current assets 13.431 11.116
--------------- ---------------
Non-current assets held for sale 0.717
--------------- ---------------
Total current assets 141.919 212.616
=============== ===============
Property, machinery and equipment 921.369 924.188
--------------- ---------------
Cumulative Depreciation (196.284) (173.682)
--------------- ---------------
Property, machinery and equipment - Net 725.085 750.506
=============== ===============
Other assets 40.454 45.248
--------------- ---------------
Deferred taxes 67.478 67.492
--------------- ---------------
Total assets 974.936 1,075.862
--------------- ---------------
Current liabilities:
Bank loans and current maturities of long-
term liabilities 10.851 23.672
--------------- ---------------
Sale of accounts receivable 0.159 11.223
--------------- ---------------
Suppliers 24.072 23.181
--------------- ---------------
Other accounts payable and accrued
expenses 53.161 46.988
--------------- ---------------
Total current liabilities 88.243 105.064
=============== ===============
Long-term liabilities:
Bank loans 51.663 61.072
--------------- ---------------
Trust certificates debt 694.312 775.536
--------------- ---------------
Sale of accounts receivable 4.567 0.550
--------------- ---------------
Other long-term liabilities 13.816 28.770
--------------- ---------------
Total long-term liabilities 764.358 865.928
=============== ===============
Total liabilities 852.601 970.992
--------------- ---------------
Stockholders´ equity
Common stock 155.177 155.177
--------------- ---------------
Retained earnings (68.273) (97.033)
--------------- ---------------
Revaluation surplus 64.097 64.097
--------------- ---------------
Initial accumulated translation loss (17.757) (17.757)
--------------- ---------------
Cumulative translation adjusted (17.595) (8.522)
--------------- ---------------
115.649 95.962
--------------- ---------------
Minority interest 6.686 8.908
--------------- ---------------
Total stockholders´ equity 122.335 104.870
--------------- ---------------
Total liabilities and stockholders´ equity 974.936 1,075.862
--------------- ---------------
*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 Nine months ended
September 30, September 30,
------------------ ------------------
2011 2010 2011 2010
------- --------- -------- --------
Ports and Terminals 6.864 5.502 20.942 17.387
Maritime 44.551 51.060 127.776 153.448
Logistics 17.424 18.231 55.684 60.531
------- --------- -------- --------
Revenue from freight and services 68.839 74.793 204.402 231.366
------- --------- -------- --------
Ports and Terminals (5.537) (4.115) (15.545) (11.877)
Maritime (23.634) (25.208) (66.839) (77.506)
Logistics (17.981) (19.065) (56.249) (61.576)
------- --------- -------- --------
Cost of freight and services (47.152) (48.388) (138.633) (150.959)
------- --------- -------- --------
Ports and Terminals (0.296) (0.360) (0.912) (1.085)
Maritime (10.420) (10.930) (30.863) (31.988)
Logistics (1.733) (2.308) (6.990) (6.898)
Corporate and others (0.261) (0.216) (0.657) (0.593)
------- --------- -------- --------
Depreciation and amortization (12.710) (13.814) (39.422) (40.564)
------- --------- -------- --------
Corporate expenses (4.398) (3.487) (12.875) (10.654)
Ports and Terminals 1.031 1.027 4.485 4.425
Maritime 10.497 14.922 30.074 43.954
Logistics (2.290) (3.142) (7.555) (7.943)
Corporate and others (0.261) (0.216) (0.657) (0.593)
Other (expenses) income - Net 1.473 (0.694) 8.643 (2.351)
------- --------- -------- --------
Operating Income 6.052 8.410 22.115 26.838
======= ========= ======== ========
Financial (expenses) income - Net (20.284) (21.084) (63.480) (53.286)
Exchange gain (loss) - Net 109.014 (12.879) 67.340 (23.839)
------- --------- -------- --------
Net financial cost 88.730 (33.963) 3.860 (77.125)
------- --------- -------- --------
Gain (loss) before taxes 94.782 (25.553) 25.975 (50.287)
======= ========= ======== ========
Provision for taxes (3.153) (1.603) (5.974) (3.131)
------- --------- -------- --------
Net gain (loss) for the period 91.629 (27.156) 20.001 (53.418)
------- --------- -------- --------
Attributable to:
Minority interest 0.036 0.082 0.863 1.019
------- --------- -------- --------
Equity holders of GTMM, S.A.B. 91.593 (27.238) 19.138 (54.437)
------- --------- -------- --------
Weighted average outstanding shares
(millions) 101.995 101.995 101.995 101.013
Income (loss) earnings per share
(dollars / share) 0.90 (0.27) 0.19 (0.54)
Outstanding shares at end of period
(millions) 101.995 101.995 101.995 101.995
Income (loss) earnings per share
(dollars / share) 0.90 (0.27) 0.19 (0.53)
------- --------- -------- --------
*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 Nine months ended
September 30, September 30,
------------------ -----------------
2011 2010 2011 2010
------- --------- -------- -------
Cash flow from operation activities:
Net gain (loss) for the period 91.629 (27.156) 20.001 (53.418)
------- --------- -------- -------
Charges (credits) to income not
affecting resources:
Depreciation & amortization 14.591 15.773 46.634 45.969
------- --------- -------- -------
Other non-cash items (86.612) 30.651 (9.562) 73.283
------- --------- -------- -------
Total non-cash items (72.021) 46.424 37.072 119.252
------- --------- -------- -------
Changes in assets & liabilities (4.857) (10.950) (25.258) (29.156)
------- --------- -------- -------
Total adjustments (76.878) 35.474 11.814 90.096
------- --------- -------- -------
Net cash provided by operating
activities 14.751 8.318 31.815 36.678
======= ========= ======== =======
Cash flow from investing activities:
Proceeds from sales of assets 0.477 0.232 3.285 4.817
------- --------- -------- -------
Payments for purchases of assets (3.135) (4.029) (8.660) (14.884)
------- --------- -------- -------
Sale of share of subsidiaries 4.062
------- --------- -------- -------
Paid to minority partners (3.084) (3.084)
------- --------- -------- -------
Net cash used in investment activities (5.742) (3.797) (8.459) (6.005)
======= ========= ======== =======
Cash flow provided by financing
activities:
Short-term borrowings (net) (6.667) 0.536
------- --------- -------- -------
Sale (repurchase) of accounts
receivable (net) (0.343) (2.603) (11.902) (7.053)
------- --------- -------- -------
Repayment of long-term debt (41.667) (23.791) (104.227) (54.721)
------- --------- -------- -------
Proceeds from issuance of long-term
debt 6.568 49.031 11.168 50.591
------- --------- -------- -------
Acquisition of treasury shares, net (0.013)
------- --------- -------- -------
Net cash (used in) provided by
financing activities (35.442) 15.970 (104.961) (10.660)
======= ========= ======== =======
Exchange losses on cash (7.668) 1.770 (3.679) 3.051
======= ========= ======== =======
Net (decrease) increase in cash (34.101) 22.261 (85.284) 23.064
------- --------- -------- -------
Cash at beginning of period 91.136 85.047 142.319 84.244
------- --------- -------- -------
Cash at end of period 57.035 107.308 57.035 107.308
------- --------- -------- -------
*Prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards
Board.
TMM COMPANY CONTACT: Jacinto Marina Deputy CEO
011-525-55-629-8718 Email Contact Monica Azar Investor Relations
011-525-55-629-8703 Email Contact AT DRESNER CORPORATE
SERVICES: Kristine Walczak (investors, analysts, media)
312-726-3600 Email Contact
Grupo Tmm A (NYSE:TMM)
Historical Stock Chart
From Apr 2024 to May 2024
Grupo Tmm A (NYSE:TMM)
Historical Stock Chart
From May 2023 to May 2024
