Grupo TMM, S.A.B. (NYSE: TMM) (BMV: TMM A) ("TMM" or the "Company")
-- Consolidated operating profit improved 101.9% to $10.5 million
-- Consolidated EBITDA grew 49.3% to $23.0 million
-- Free cash flow positive for second consecutive quarter
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 first quarter
of 2010.
MANAGEMENT OVERVIEW
José F. Serrano, chairman and chief executive officer of Grupo
TMM, said, "Year over year, TMM's first-quarter 2010 consolidated
revenues remained steady, consolidated operating profit doubled and
consolidated EBITDA improved significantly. These results
demonstrate the power of the Company's market position, operational
efficiency and business strategy. Additionally, as in the fourth
quarter of 2009, our consolidated EBITDA in the first quarter of
this year exceeded our financial expenses, resulting in positive
free cash flow and confirming a trend. We believe TMM's cash flows
will continue to improve as we increase our fleet utilization
during 2010 and eliminate non-productive and non-strategic
assets."
Serrano concluded, "Our business strategy to renew our Maritime
fleet with modern and high quality vessels through long-term
financing with no recourse to the Company has positioned us to take
advantage of the increased demand for oil exploration in Mexico's
deep waters. TMM's management remains dedicated to strengthening
the Company's industry leadership and increasing shareholder value
in the long term."
FIRST-QUARTER 2010 FINANCIAL RESULTS
Compared to the same period of last year, consolidated revenues
increased 1.5 percent in the 2010 first quarter, while consolidated
operating profit improved 101.9 percent to $10.5 million from $5.2
million. Higher operating profit in the 2010 first quarter was due
mainly to lower costs and expenses, as well as to improved
operating profit at the Port and Terminals and Maritime divisions
compared to the 2009 period. Additionally, operating margin grew to
12.9 percent in the first quarter of 2010 compared to 6.5 percent
in the first quarter of 2009.
Consolidated EBITDA in the 2010 first quarter increased 49.4
percent, or $7.6 million, to $23.0 million compared to $15.4
million in the same period last year.
At Maritime, first-quarter 2010 revenues fell 6.8 percent
compared to the first quarter of 2009, mainly due to decreased
revenue at product tankers attributable to fewer vessels in
operation and lower average daily rates. However, the Maritime
division's operating profit grew in the first quarter of 2010
compared to the previous year's first quarter, increasing 17.1
percent, or $1.9 million. This increase was mainly attributable to
a 48.1 percent improvement in gross profit at the offshore segment
due to two more average vessels in operation and to higher average
daily rates as compared to the first quarter of 2009.
In the 2010 first quarter, the Ports and Terminals division's
revenue increased 40.9 percent, and operating profit increased from
$0.5 million to $2.0 million, compared to the same period of 2009.
Significantly improved results year over year were mainly due to
volume improvements at the cruise ship and auto handling businesses
in Acapulco, as well as to improved volumes at shipping agencies.
Additionally, the maintenance and repair segment's gross profit
improved to $0.5 million in the 2010 first quarter from a loss of
$13,000 in the 2009 first quarter, due mainly to increased
container volumes at Veracruz, Manzanillo and Mexico City, which
began operations last November.
In the 2010 first quarter, Logistics revenues increased 15.1
percent over the 2009 first quarter, benefitted by a 4.8 percent
appreciation of the peso versus the dollar. Specifically, revenue
increased year over year at warehousing and at auto hauling.
Finally, as part of the Company's program to sell non-strategic
assets, last week the Company sold its minority stake in its
automotive inbound logistics business to its German partner
Schnellecke.
RECLASSIFICATION OF BUSINESS SEGMENTS
The financial information provided in the tables at the end of
this release reflects new organizational responsibilities as part
of the Company's corporate restructuring. Starting in the fourth
quarter of 2009, TMM's Ports and Terminals division's segments
include Acapulco, Tuxpan, shipping agencies, maintenance and repair
and automotive. TMM's Logistics division's segments include
trucking, warehousing, auto hauling and inbound logistics.
Management believes the reclassification of these business segments
more accurately reflect the Company's operations, providing a
consistent measurement tool for evaluating the operating activities
of the Company from period to period.
CONFERENCE CALL
TMM's management will host a conference call and Webcast to
review financial and operational highlights on Monday, May 3 at
11:00 a.m. Eastern time.
To participate in the conference call, please dial (888)
471-3828 (domestic) or (719) 325-2406 (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=67826.
A replay of the conference call will be available through May 17
at 11:59 p.m. Eastern time, by dialing (888) 203-1112 or (719)
457-0820, and entering passcode 4179301. On the Internet a replay
will be available for 30 days at
http://www.visualwebcaster.com/event.asp?id=67826.
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 -
March 31, December 31,
2010 2009
------------ ------------
Current assets:
Cash and cash equivalents 87.953 84.244
------------ ------------
Accounts receivable
Accounts receivable - Net 61.468 47.553
------------ ------------
Other accounts receivable 37.473 31.885
------------ ------------
Prepaid expenses and other current assets 10.045 9.934
------------ ------------
Total current assets 196.939 173.616
============ ============
Property, machinery and equipment 824.218 823.831
------------ ------------
Cumulative Depreciation (153.585) (145.433)
------------ ------------
Property, machinery and equipment - Net 670.633 678.398
============ ============
Other assets 52.214 53.250
------------ ------------
Deferred taxes 97.274 97.274
------------ ------------
Total assets 1,017.060 1,002.538
------------ ------------
Current liabilities:
Bank loans and current maturities of long-term
liabilities 21.166 16.043
------------ ------------
Sale of accounts receivable 9.030 7.869
------------ ------------
Suppliers 31.100 27.957
------------ ------------
Other accounts payable and accrued expenses 52.606 44.186
------------ ------------
Total current liabilities 113.902 96.055
============ ============
Long-term liabilities:
Bank loans 66.517 70.974
------------ ------------
Trust certificates debt 720.635 677.520
------------ ------------
Sale of accounts receivable 8.681 12.047
------------ ------------
Other long-term liabilities 27.110 26.134
------------ ------------
Total long-term liabilities 822.943 786.675
============ ============
Total liabilities 936.845 882.730
------------ ------------
Stockholders' equity
Common stock 155.240 155.240
------------ ------------
Retained earnings (56.116) (14.446)
------------ ------------
Initial accumulated translation loss (17.757) (17.757)
------------ ------------
Cumulative translation adjusted (8.952) (10.490)
------------ ------------
72.415 112.547
------------ ------------
Minority interest 7.800 7.261
------------ ------------
Total stockholders' equity 80.215 119.808
------------ ------------
Total liabilities and stockholders' equity 1,017.060 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
March 31,
--------------------------
2010 2009
------------ ------------
Ports and Terminals 6.163 4.386
Maritime 50.712 54.450
Logistics 24.394 21.245
Eliminations (0.119) (0.116)
------------ ------------
Revenue from freight and services 81.150 79.965
------------ ------------
Ports and Terminals (3.767) (3.524)
Maritime (27.477) (34.709)
Logistics (23.727) (22.850)
Eliminations 0.119 0.116
------------ ------------
Cost of freight and services (54.852) (60.967)
------------ ------------
Ports and Terminals (0.364) (0.381)
Maritime (10.203) (8.670)
Logistics (1.934) (1.203)
------------ ------------
Depreciation and amortization (12.501) (10.254)
------------ ------------
Corporate expenses (3.501) (3.497)
Ports and Terminals 2.032 0.481
Maritime 13.032 11.071
Logistics (1.267) (2.808)
Other (expenses) income - Net 0.248 (0.068)
------------ ------------
Operating Income 10.544 5.179
============ ============
Financial (expenses) income - Net (16.901) (22.564)
Exchange gain (loss) - Net (34.267) 22.065
------------ ------------
Net financial cost (51.168) (0.499)
------------ ------------
(Loss) gain before taxes (40.624) 4.680
============ ============
(Provision) benefit for taxes (0.504) 0.155
------------ ------------
Net (loss) income for the period (41.128) 4.835
------------ ------------
Attributable to:
Minority interest 0.542 0.102
------------ ------------
Equity holders of GTMM, S.A.B. (41.670) 4.733
------------ ------------
Weighted average outstanding shares (millions) 102.024 55.227
(Loss) income earnings per share (dollars /
share) (0.41) 0.09
Outstanding shares at end of period (millions) 102.024 55.227
(Loss) income earnings per share (dollars /
share) (0.41) 0.09
------------ ------------
*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
March 31,
--------------------------
2010 2009
------------ ------------
Cash flow from operation activities:
Net (loss) Income before discontinuing
operations (41.128) 4.835
------------ ------------
Charges (credits) to income not affecting
resources:
Depreciation & amortization 14.312 11.835
------------ ------------
Other non-cash items 50.798 1.738
------------ ------------
Total non-cash items 65.110 13.573
------------ ------------
Changes in assets & liabilities (12.963) 2.758
------------ ------------
Total adjustments 52.147 16.331
------------ ------------
Net cash provided by operating activities 11.019 21.166
============ ============
Cash flow from investing activities:
Proceeds from sales of assets 4.167 1.311
------------ ------------
Payments for purchases of assets (2.708) (27.024)
------------ ------------
Net cash provided by (used in) investment
activities 1.459 (25.713)
============ ============
Cash flow provided by financing activities:
Short-term borrowings (net) 1.250 (0.427)
------------ ------------
Sale (repurchase) of accounts receivable
(net) (1.842) (7.224)
------------ ------------
Repayment of long-term debt (13.562) (8.626)
------------ ------------
Proceeds from issuance of long-term debt 3.734
------------ ------------
Net cash used in financing activities (10.420) (16.277)
============ ============
Exchange losses on cash 1.651 (5.506)
============ ============
Net (decrease) increase in cash 3.709 (26.330)
------------ ------------
Cash at beginning of period 84.244 168.447
------------ ------------
Cash at end of period 87.953 142.117
------------ ------------
*Prepared in accordance with International Financial Reporting Standards
as issued by the International Accounting Standards Board.
TMM COMPANY CONTACT: Jacinto Marina Deputy CEO
011-525-55-629-8866 ext. 2901 Email Contact Monica Azar Investor
Relations 917-597-5361 or 011-525-55-629-8866 ext. 3421 Email
Contact AT DRESNER CORPORATE SERVICES: Kristine Walczak (investors,
analysts, media) 312-726-3600 Email Contact
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