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 fourth-quarter and full-year periods of
2011.
MANAGEMENT OVERVIEW José F. Serrano,
chairman and chief executive officer of Grupo TMM, said,
"Fourth-quarter and full-year operational results were negatively
impacted by one-time charges related to certain of our Logistics
division's assets, and to a reserve for expenses associated with an
arbitrage at the Maritime division. Moreover, operations at all
three of our business divisions continued to be challenged by
global economic conditions, including lower average daily tariffs
at Maritime when compared to last year. However, our Maritime
division's fleet utilization has seen continued sequential
improvement, with our offshore utilization at 90.2 percent and our
product tanker utilization at 100.0 percent in the fourth quarter,
both well above the industry average.
"We continue to manage through these difficult times, helped in
large part by our strategy to renew our maritime fleet through a
20-year, peso denominated financing with no recourse to the
Company. This financing continued to benefit us in the fourth
quarter, as the peso depreciated 6.6 percent versus the dollar,
reducing the book value of our peso denominated debt, which
represents over 90 percent of our total debt."
Serrano continued, "I am pleased to announce that in January of
this year, we acquired a shipyard at the Port of Tampico. This
shipyard is strategically positioned in the Gulf of Mexico and is
currently working at full capacity. We anticipate this operation
will generate approximately 32 percent of EBITDA margin in its
first year of operation. Additionally, we estimate providing
service to more than 30 vessels per year, of which approximately 37
percent will be from TMM's fleet, resulting in increased efficiency
in the maintenance, repair and positioning of our vessels and
reducing costs. In the short term, the Company expects to have the
necessary capabilities to build vessels at this facility. The
timing of this acquisition is in line with PEMEX's intention to add
32 offshore vessels to its fleet, of which 21 are required to be
Mexican built vessels, supporting national integration."
Serrano concluded, "We continue to work with selected,
interested parties for the financial implementation of the
development of a container and liquids terminal at the Port of
Tuxpan, making significant progress on a joint venture that we
expect to announce soon. Additionally, we have continued to work on
the addition of specialized offshore vessels to TMM's fleet, but
market conditions have made this process tougher and longer than we
anticipated. However we expect to reach an agreement in the near
term. The fundamentals of all of these businesses are strongly
positive and will significantly improve our revenue base, profits
and capital structure."
FOURTH-QUARTER AND FULL-YEAR 2011 FINANCIAL AND
OPERATING RESULTS Compared to the same periods of last year,
fourth-quarter and full-year 2011 revenue decreased 12.6 percent
and 11.9 percent, respectively, due mainly to lower revenue at
Maritime.
In the fourth quarter of 2011, TMM incurred an operating loss of
$16.1 million. This loss was impacted by one-time charges of $12.8
million associated with a provision and impairment of assets
related to certain Logistics assets, by $9.9 million related to a
reserve for expenses associated with an arbitrage at the Maritime
division and by the cancelation of certain tax incentives, included
in other expense, net. Consolidated operating profit in the fourth
quarter of 2010 included one-time charges of $7.7 million mainly
related to a provision for certain Logistics assets.
For the full year of 2011, consolidated operating profit was
$6.0 million. Consolidated operating profit in the 2011 full year
was negatively impacted by one-time charges of $17.3 million
associated with a provision and impairment of assets related to
certain Logistics assets, and by $6.7 million related to a reserve
for expenses associated with an arbitrage at the Maritime division,
included in other expense, net, partially offset by a $4.4 million
tax benefit. Consolidated operating profit in the 2010 full year
included one-time charges of $13.8 million mainly related to a
provision for certain Logistics assets.
Excluding the above, non-recurrent events, consolidated
operating profit in the fourth quarter of 2011 was $6.6 million
compared to $10.9 million in the same period of 2010, and
consolidated operating profit in the 2011 full year was $25.6
million compared to $43.8 million in the 2010 full year.
Compared to the same periods of last year, consolidated EBITDA
decreased 61.5 percent to $8.5 million in the 2011 fourth quarter
and decreased 21.7 percent to $70.0 million in the 2011 full
year.
Interest expense in the 2011 fourth quarter and in the 2011 full
year was $15.3 million and $66.5 million, respectively.
Notwithstanding profit reductions in 2011, EBITDA minus interest
expense resulted in free cash flow of $3.6 million in the 2011 full
year.
Net financial cost benefitted from net exchange gains of $26.4
million and $93.7 million in the 2011 fourth quarter and in the
2011 full year, respectively, as a result of the depreciation of
the peso versus the dollar. The peso depreciated 6.6 percent in the
2011 fourth quarter and 12.6 percent in the 2011 full year.
For the 2011 full year, TMM reported $15.2 million of net income
compared to a net loss of $80.6 million in the 2010 full year.
Maritime revenue in the fourth quarter and full year of 2011
decreased 6.8 percent and 14.4 percent, respectively, compared to
the same periods of last year. In the 2011 fourth quarter,
decreased revenue was partially offset by a 17.4 percent increase
in revenue at product tankers due to higher average daily tariffs
than in the 2010 period and to one more vessel in operation. In the
2011 full year, reduced revenue was partially offset by a 7.3
percent revenue improvement at harbor tugs due to increased vessel
calls at Manzanillo and to higher revenue per call.
Fourth-quarter and full-year 2011 operating profit declined at
this division by 30.4 percent and by 31.2 percent, respectively,
compared to the same periods of last year.
In the 2011 full year, offshore revenue decreased 17.9 percent
to $102.0 million, negatively impacted by lower average daily
tariffs and by four less vessels in operation than in the 2010
comparable period. In 2011, product tanker revenue decreased 4.3
percent to $38.2 million attributable to lower average daily
tariffs. Chemical tanker revenue decreased 24.1 percent to $18.3
million in the 2011 full year as a result of having one less vessel
in operation in the last three quarters and to lower freight
volumes. However, the chemical tanker segment returned to
profitability beginning in the third quarter of 2011, generating
gross profit of $0.9 million in the second half of 2011.
Maritime's EBITDA for the 2011 full year was $81.6 million
compared to $100.4 million in the comparable 2010 period. However,
EBITDA margin remained similar at 47.5 percent in 2011 versus 50
percent in 2010.
In the first quarter of 2012, TMM successfully renewed two
offshore contracts for a three-year period each. To date, the
Maritime's division current backlog is $192 million.
In the 2011 fourth quarter, Ports and Terminals revenue
decreased 18.1 percent and operating profit decreased 43.7 percent.
Lower revenue was mainly attributable to a dramatic reduction of
cruise ship calls at Acapulco, from 46 calls in the 2010 fourth
quarter to only six in the 2011 fourth quarter, mainly due to
cruise ship lines changing routes due to security issues at this
Port, and to a 58.3 percent revenue decrease at shipping agencies
due to lower volumes. The revenue decrease in the 2011 fourth
quarter was partially offset by an 83.7 percent revenue improvement
at the auto handling segment at this Port, due to higher export
volumes to South America and Asia.
Compared to the same period of last year, full-year 2011 Ports
and Terminals revenue increased 9.3 percent, mainly as a result of
a 36.9 percent revenue improvement at the automotive segment at
Puebla and Saltillo, to increased revenue of 45.6 percent at the
auto handling segment at Acapulco, and to 5.5 percent higher
revenue at the maintenance and repair segment.
Compared to the same period of last year, full-year 2011 Ports
and Terminals operating profit decreased 11.5 percent mainly due to
a profit reduction at the cruise ship segment at Acapulco,
partially offset by a profit increase at the automotive
segment.
Comparing the 2011 fourth quarter and the 2011 full year with
the same periods of last year, Logistics revenue decreased 24.4
percent and 12.0 percent, respectively. Excluding $6.7 million of
revenue from the sale of assets in April 2010, the revenue decrease
at Logistics in the 2011 full year was 3.9 percent or $2.9 million.
In the 2011 full year, auto hauling revenue increased 21.3 percent
and gross profit improved from a $0.4 million loss in the 2010 full
year, to a $0.6 million profit in the 2011 full year.
DEBT As of December 31, 2011, TMM's total
debt was $752.5 million. The book value of the Company's Trust
Certificates debt was reduced $93.9 million from December 31, 2010,
due to the depreciation of the peso versus the dollar in the 2011
full year. Additionally, the Company reduced its net debt by $26.9
million in 2011.
Total Debt*
Million of U.S. Dollars
As of As of
12/31/10 12/31/11
---------- ----------
Mexican Trust Certificates (1) $ 786.4 $ 684.3
Securitization Facility 11.8 0.0
Other Corporate Debt 73.9 68.2
========== ==========
Total Debt (2) $ 872.1 $ 752.5
========== ==========
Cash 142.3 77.1
========== ==========
Net Debt $ 729.8 $ 675.4
*Book Value (1) 20-year term and non recourse to the Company (2)
Of total debt, only $17.2 million, or 2.3 percent, is short term
Exchange Rate: 12.38 pesos/dollar at December 31, 2010, and 13.95
pesos/dollar at December 31, 2011
CONFERENCE CALL TMM's management will host
a conference call and Webcast to review financial and operational
highlights on Tuesday, February 28 at 11:00 a.m. Eastern time. To
participate in the conference call, please dial (877) 874-1570 (domestic) or (719)
325-4792 (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=85311.
A replay of the conference call will be available through March
28 at 11:59 p.m. Eastern time, by dialing (888)
203-1112 or (719) 457-0820, and entering
passcode 9224215. On the Internet a replay
will be available for 30 days at:
http://www.visualwebcaster.com/event.asp?id=85311.
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.
Grupo TMM, S.A.B. and subsidiaries
Balance Sheet*
- millions of dollars -
------------- -------------
December 31, December 31,
2011 2010
------------- -------------
Current assets:
Cash and cash equivalents 77.123 142.319
------------- -------------
Accounts receivable
Accounts receivable - Net 38.963 37.594
------------- -------------
Other accounts receivable 17.556 20.870
------------- -------------
Prepaid expenses and others current assets 11.568 11.116
------------- -------------
Non-current assets held for sale 0.717
Total current assets 145.210 212.616
============= =============
Property, machinery and equipment 914.809 924.188
------------- -------------
Cumulative Depreciation (203.985) (173.682)
------------- -------------
Property, machinery and equipment - Net 710.824 750.506
============= =============
Other assets 28.447 45.248
------------- -------------
Deferred taxes 67.583 67.492
------------- -------------
Total assets 952.064 1,075.862
------------- -------------
Current liabilities:
Bank loans and current maturities of long-
term liabilities 17.190 23.672
------------- -------------
Sale of accounts receivable 11.223
------------- -------------
Suppliers 21.475 23.181
------------- -------------
Other accounts payable and accrued expenses 53.848 46.988
------------- -------------
Total current liabilities 92.513 105.064
============= =============
Long-term liabilities:
Bank loans 59.378 61.072
------------- -------------
Trust certificates debt 675.933 775.536
------------- -------------
Sale of accounts receivable 0.550
------------- -------------
Other long-term liabilities 15.828 28.770
------------- -------------
Total long-term liabilities 751.139 865.928
============= =============
Total liabilities 843.652 970.992
------------- -------------
Stockholders´ equity
Common stock 155.577 155.177
------------- -------------
Retained earnings (75.096) (97.033)
------------- -------------
Revaluation surplus 63.907 64.097
------------- -------------
Initial accumulated translation loss (17.757) (17.757)
------------- -------------
Cumulative translation adjusted (22.111) (8.522)
------------- -------------
104.520 95.962
------------- -------------
Minority interest 3.892 8.908
------------- -------------
Total stockholders´ equity 108.412 104.870
------------- -------------
Total liabilities and stockholders´ equity 952.064 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 Year ended,
December 31, December 31,
------------------ ------------------
2011 2010 2011 2010
-------- -------- -------- --------
Ports and Terminals 5.947 7.187 26.889 24.574
Maritime 43.894 47.122 171.670 200.570
Logistics 14.912 19.723 70.596 80.254
-------- -------- -------- --------
Revenue from freight and services 64.753 74.032 269.155 305.398
-------- -------- -------- --------
Ports and Terminals (4.749) (5.298) (20.294) (17.175)
Maritime (23.202) (22.675) (90.041) (100.181)
Logistics (15.806) (19.853) (72.055) (81.429)
-------- -------- -------- --------
Cost of freight and services (43.757) (47.826) (182.390) (198.785)
-------- -------- -------- --------
Ports and Terminals (0.320) (0.239) (1.232) (1.324)
Maritime (11.072) (10.650) (41.935) (42.638)
Logistics (12.839) (7.784) (19.829) (14.682)
Corporate and others (0.374) (0.217) (1.031) (0.810)
-------- -------- -------- --------
Depreciation and amortization (24.605) (18.890) (64.027) (59.454)
-------- -------- -------- --------
Corporate expenses (2.220) (3.382) (15.095) (14.036)
Ports and Terminals 0.878 1.650 5.363 6.075
Maritime 9.620 13.797 39.694 57.751
Logistics (13.733) (7.914) (21.288) (15.857)
Corporate and others (0.374) (0.217) (1.031) (0.810)
Other (expenses) income - Net (10.261) (0.735) (1.618) (3.086)
-------- -------- -------- --------
Operating (loss) income (16.090) 3.199 6.025 30.037
======== ======== ======== ========
Financial (expenses) income - Net (16.720) (16.730) (80.200) (70.016)
Exchange gain (loss) - Net 26.361 (14.279) 93.701 (38.118)
-------- -------- -------- --------
Net financial cost 9.641 (31.009) 13.501 (108.134)
-------- -------- -------- --------
(Loss) gain before taxes (6.449) (27.810) 19.526 (78.097)
======== ======== ======== ========
Provision for taxes 2.670 2.312 (3.304) (0.819)
-------- -------- -------- --------
Net (loss) gain for the period (3.779) (25.498) 16.222 (78.916)
-------- -------- -------- --------
Attributable to:
Minority interest 0.146 0.628 1.009 1.647
-------- -------- -------- --------
Equity holders of GTMM, S.A.B. (3.925) (26.126) 15.213 (80.563)
-------- -------- -------- --------
Weighted average outstanding shares
(millions) 102.183 101.995 102.176 102.007
Income (loss) earnings per share
(dollars / share) (0.04) (0.26) 0.15 (0.79)
Outstanding shares at end of period
(millions) 102.183 101.995 102.183 101.995
Income (loss) earnings per share
(dollars / share) (0.04) (0.26) 0.15 (0.79)
-------- -------- -------- --------
*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 Year ended,
December 31, December 31,
------------------ ------------------
2011 2010 2011 2010
-------- -------- -------- --------
Cash flow from operation activities:
Net (loss) gain for the period (3.779) (25.498) 16.222 (78.916)
-------- -------- -------- --------
Charges (credits) to income not
affecting resources:
Depreciation & amortization 26.570 21.039 73.204 67.008
-------- -------- -------- --------
Other non-cash items (8.782) 36.081 (18.344) 109.364
-------- -------- -------- --------
Total non-cash items 17.788 57.120 54.860 176.372
-------- -------- -------- --------
Changes in assets & liabilities 9.071 8.501 (16.187) (20.655)
-------- -------- -------- --------
Total adjustments 26.859 65.621 38.673 155.717
-------- -------- -------- --------
Net cash provided by operating
activities 23.080 40.123 54.895 76.801
======== ======== ======== ========
Cash flow from investing activities:
Proceeds from sales of assets 0.538 0.496 3.823 5.313
-------- -------- -------- --------
Payments for purchases of assets (1.608) (9.815) (10.268) (24.699)
-------- -------- -------- --------
-------- -------- -------- --------
Sale of share of subsidiaries 4.062
-------- -------- -------- --------
Paid to minority partners (0.491) (3.575)
-------- -------- -------- --------
Common stock decrease of
subsidiaries (2.450) (2.450)
-------- -------- -------- --------
Net cash used in investment
activities (4.011) (9.319) (12.470) (15.324)
======== ======== ======== ========
Cash flow provided by financing
activities:
Short-term borrowings (net) 0.784 (0.081) 0.784 0.455
-------- -------- -------- --------
Sale (repurchase) of accounts
receivable (net) (1.734) (11.902) (8.787)
-------- -------- -------- --------
Repayment of long-term debt (4.860) (5.350) (109.087) (60.071)
-------- -------- -------- --------
Proceeds from issuance of long-
term debt 6.909 10.007 18.077 60.598
-------- -------- -------- --------
Acquisition of treasury shares,
net 0.097 0.097 (0.013)
-------- -------- -------- --------
Net cash provided by (used in)
financing activities 2.930 2.842 (102.031) (7.818)
======== ======== ======== ========
Exchange losses on cash (1.911) 1.365 (5.590) 4.416
======== ======== ======== ========
Net increase (decrease) in cash 20.088 35.011 (65.196) 58.075
-------- -------- -------- --------
Cash at beginning of period 57.035 107.308 142.319 84.244
-------- -------- -------- --------
Cash at end of period 77.123 142.319 77.123 142.319
-------- -------- -------- --------
*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
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