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 second
quarter and first half of 2010.
MANAGEMENT OVERVIEW José F. Serrano,
chairman and chief executive officer of Grupo TMM, said, "Year over
year, TMM's second-quarter 2010 consolidated revenues, operating
profit and EBITDA improved, demonstrating the power of the
Company's market position, continued operational efficiency and
successful business strategy. More importantly, consolidated EBITDA
in the second quarter of this year exceeded our financial expenses,
resulting in the third consecutive quarter of positive free cash
flow.
"Building on our core strengths of excellent customer service
and high performance records developed over 30 years of cabotage
operation, we will continue to utilize our strengths to expand our
operations. In the Maritime division, this means taking advantage
of the Mexican Maritime Law and increased demand. As part of our
five-year growth strategy, we intend to take advantage of strategic
opportunities to add around 25 vessels, build TMM's asset base and
enhance our growth profile. Additionally, at our Port and Terminals
division, we are pursuing an opportunity to increase our
penetration in the Mexican ports through the construction of a
container and liquid terminal for oil products at Tuxpan. Finally,
in the second half of the year, we will begin providing stevedoring
services for general cargo in Tampico, a port located north of
Tuxpan."
Serrano added, "Additionally, we reopened our 20-year, non
recourse, Mexican Trust Certificates Program to consolidate all
tranches into one in an effort to improve the Program's credit
rating. On July 13, HR Ratings de México rated the new issuance of
Trust Certificates AA in the domestic scale. This transaction will
also allow us to redeploy our fleet, prepay our dollar-denominated
debt and extend its term, and obtain additional funds for new
projects. We will complete this transaction in the next few
days."
Serrano concluded, "TMM's owned strategic assets and
participation in high return and profitable niche markets are
complimented by predictable revenues and cash flows through medium
and long-term contracts at our Maritime division. We firmly believe
TMM is well positioned for sustainable long-term growth."
SECOND-QUARTER AND FIRST-HALF 2010 FINANCIAL
AND OPERATING RESULTS Compared to the same periods of last
year, consolidated revenues increased 1.2 percent in the 2010
second quarter and 1.4 percent in the 2010 first half.
Operating profit increased 33.9 percent and 67.3 percent in the
2010 second quarter and 2010 first half, respectively. Higher
operating profit in the 2010 periods was mainly due to improvements
at the Maritime and Ports divisions. Additionally, consolidated
operating margin grew to 11.7 percent in the 2010 first half
compared to 7.1 percent in the 2009 first half.
In the 2010 second quarter, EBITDA increased 30.8 percent to
$22.1 million compared to $16.9 million in the same period of last
year. In the first half of 2010, EBITDA increased 39.6 percent to
$45.1 million compared to $32.3 million in the same period of 2009.
Second-quarter 2009 EBITDA includes a $4.4 million profit from the
sale of two vessels. Without this one-time profit, EBITDA increased
76.8 percent, or $9.6 million, in the 2010 second quarter, and 61.6
percent, or $17.2 million, in the 2010 first half, compared to the
same periods last year.
At Maritime, second-quarter 2010 revenues grew 8.4 percent
compared to the 2009 second quarter, mainly due to increased
revenues at offshore vessels attributable to higher average tariffs
per day and more vessels in operation. This division's operating
profit grew 14.3 percent in the 2010 second quarter compared to the
previous year's second quarter, mainly as a result of a significant
profit increase at product tankers due primarily to higher average
daily rates and to having all seven vessels working with
time-charter contracts.
First-half 2010 revenues at Maritime remained at $102 million,
and operating profit grew 15.5 percent compared to the previous
year's first half. This profit increase was mainly attributable to
improvements at every segment except for chemical tankers, which
operated two less vessels in the 2010 second quarter due to
decreased demand for these services compared to the 2009 second
quarter.
Financial expenses in the 2010 second quarter were 37.0 percent
lower than in the same period last year and included a net exchange
gain of $23.3 million. In the 2010 first half, financial expenses
decreased 31.2 percent compared to the same period last year and
included a net exchange loss of $11.0 million.
In the 2010 second quarter and 2010 first half, the Ports and
Terminals division's revenue increased 46.1 percent and 43.4
percent, respectively, both compared to the same periods last year.
Additionally, operating profit for this division increased from
$9,000 dollars in the 2009 second quarter to $1.4 million in the
2010 second quarter and from $0.5 million in the 2009 first half to
$3.4 million in the 2010 first half.
Improved results at the Ports and Terminals division was
attributable mainly to increased cruise ship calls and automobiles
handled at Acapulco, as well as increased revenue and higher
container volumes at the maintenance and repair segment. In the
2010 first half, revenues at Acapulco increased 105.3 percent to
$3.9 million compared to the same period last year. At the
maintenance and repair segment, revenues increased 52.2 percent to
$3.5 million in the 2010 first half compared to the same period
last year.
Compared to the same periods of last year, Logistics revenues
decreased 21.3 percent and 3.8 percent in the 2010 second quarter
and 2010 first half, respectively. These decreases were mainly
attributable to lower trucking revenue and to reduced revenue of
$3.8 million 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 second quarter and 2010
first half were reduced compared to the same periods of 2009 and
included certain book losses.
CONFERENCE CALL TMM's management will host
a conference call and Webcast to review financial and operational
highlights on Thursday, July 29 at 11:00 a.m. Eastern time.
To participate in the conference call, please dial (888)
857-6932 (domestic) or (719) 457-2665 (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=70471.
A replay of the conference call will be available through August
29 at 11:59 p.m. Eastern time, by dialing (888) 203-1112 or (719)
457-0820, and entering passcode 1156408. On the Internet a replay
will be available for 30 days at:
http://www.visualwebcaster.com/event.asp?id=70471.
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 -
June 30, December 31,
2010 2009
------------ -------------
Current assets:
Cash and cash equivalents 85.047 84.244
------------ -------------
Accounts receivable
Accounts receivable - Net 54.552 47.553
------------ -------------
Other accounts receivable 34.260 31.885
------------ -------------
Prepaid expenses and others current assets 10.979 9.934
------------ -------------
Total current assets 184.84 173.62
============ =============
Property, machinery and equipment 830.684 823.831
------------ -------------
Cumulative Depreciation (160.743) (145.433)
------------ -------------
Property, machinery and equipment - Net 669.941 678.398
============ =============
Other assets 46.542 53.250
------------ -------------
Deferred taxes 96.803 97.274
------------ -------------
Total assets 998.124 1,002.538
------------ -------------
Current liabilities:
Bank loans and current maturities of long-
term liabilities 21.157 16.043
------------ -------------
Sale of accounts receivable 9.460 7.869
------------ -------------
Suppliers 32.900 27.957
------------ -------------
Other accounts payable and accrued expenses 54.841 44.186
------------ -------------
Total current liabilities 118.358 96.055
============ =============
Long-term liabilities:
Bank loans 63.078 70.974
------------ -------------
Trust certificates debt 689.596 677.520
------------ -------------
Sale of accounts receivable 6.556 12.047
------------ -------------
Other long-term liabilities 27.486 26.134
------------ -------------
Total long-term liabilities 786.716 786.675
============ =============
Total liabilities 905.074 882.730
------------ -------------
Stockholders´ equity
Common stock 155.177 155.240
------------ -------------
Retained earnings (41.595) (14.446)
------------ -------------
Initial accumulated translation loss (17.757) (17.757)
------------ -------------
Cumulative translation adjusted (10.971) (10.490)
------------ -------------
84.854 112.547
------------ -------------
Minority interest 8.196 7.261
------------ -------------
Total stockholders´ equity 93.050 119.808
------------ -------------
Total liabilities and stockholders´ equity 998.124 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 Six months ended
June 30, June 30,
------------------ --------------------
2010 2009 2010 2009
-------- -------- ---------- ---------
Ports and Terminals 5.722 3.955 11.885 8.341
Maritime 51.676 47.687 102.388 102.137
Logistics 18.093 22.984 42.483 44.222
Corporate and others 0.002 0.004 0.006 0.011
Eliminations (0.070) (0.084) (0.189) (0.200)
-------- -------- ---------- ---------
Revenue from freight and services 75.423 74.546 156.573 154.511
-------- -------- ---------- ---------
Ports and Terminals (3.995) (3.565) (7.762) (7.089)
Maritime (24.821) (25.042) (52.298) (59.751)
Logistics (18.956) (25.306) (42.675) (48.088)
Corporate and others (0.017) 0.046 (0.025) (0.022)
Eliminations 0.070 0.084 0.189 0.200
-------- -------- ---------- ---------
Cost of freight and services (47.719) (53.783) (102.571) (114.750)
-------- -------- ---------- ---------
Ports and Terminals (0.361) (0.399) (0.725) (0.780)
Maritime (10.855) (8.648) (21.058) (17.318)
Logistics (2.737) (1.927) (4.590) (3.089)
Corporate and others (0.296) (0.057) (0.377) (0.098)
-------- -------- ---------- ---------
Depreciation of vessels and
equipment (14.249) (11.031) (26.750) (21.285)
-------- -------- ---------- ---------
-------- -------- ---------- ---------
Corporate expenses (3.666) (3.732) (7.167) (7.229)
Ports and Terminals 1.366 (0.009) 3.398 0.472
Maritime 16.000 13.997 29.032 25.068
Logistics (3.600) (4.249) (4.782) (6.955)
Corporate and others (0.311) (0.007) (0.396) (0.109)
Other (expenses) income - Net (1.905) (0.137) (1.657) (0.205)
-------- -------- ---------- ---------
Operating Income 7.884 5.863 18.428 11.042
======== ======== ========== =========
Financial (expenses) income - Net (15.301) (24.266) (32.202) (46.830)
Exchange gain (loss) - Net 23.307 (47.466) (10.960) (25.401)
-------- -------- ---------- ---------
Net financial cost 8.006 (71.732) (43.162) (72.231)
-------- -------- ---------- ---------
Gain (loss) before taxes 15.890 (65.869) (24.734) (61.189)
======== ======== ========== =========
Provision for taxes (1.024) (0.557) (1.528) (0.402)
-------- -------- ---------- ---------
Net income (loss) for the period 14.866 (66.426) (26.262) (61.591)
-------- -------- ---------- ---------
Attributable to:
Minority interest 0.395 (0.080) 0.937 0.022
-------- -------- ---------- ---------
Equity holders of GTMM, S.A.B. 14.471 (66.346) (27.199) (61.613)
-------- -------- ---------- ---------
Weighted average outstanding
shares (millions) 102.014 55.227 102.019 55.227
Income (loss) earnings per share
(dollars / share) 0.14 (1.20) (0.27) (1.12)
Outstanding shares at end of
period (millions) 101.995 55.227 101.995 55.227
Income (loss) earnings per share
(dollars / share) 0.14 (1.20) (0.27) (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 Six months ended
June 30, June 30,
------------------ ----------------
2010 2009 2010 2009
------- --------- -------- -------
Cash flow from operation activities:
Net income (loss) for the period 14.866 (66.426) (26.262) (61.591)
------- --------- -------- -------
Charges (credits) to income not
affecting resources:
Depreciation & amortization 15.884 12.427 30.196 24.262
------- --------- -------- -------
Other non-cash items (8.166) 63.397 42.632 65.135
------- --------- -------- -------
Total non-cash items 7.718 75.824 72.828 89.397
------- --------- -------- -------
Changes in assets & liabilities (5.243) (15.681) (18.206) (12.923)
------- --------- -------- -------
Total adjustments 2.475 60.143 54.622 76.474
------- --------- -------- -------
Net cash provided by (used in)
operating activities 17.341 (6.283) 28.360 14.883
======= ========= ======== =======
Cash flow from investing activities:
Proceeds from sales of assets 0.418 6.141 4.585 7.452
------- --------- -------- -------
Payments for purchases of assets (8.147) (11.719) (10.855) (38.743)
------- --------- -------- -------
Sale of share of subsidiaries 4.062 4.062
------- --------- -------- -------
Dividends from non-consolidated
subsidiaries 0.643 0.643
------- --------- -------- -------
Net cash used in investment activities (3.667) (4.935) (2.208) (30.648)
======= ========= ======== =======
Cash flow provided by financing
activities:
Short-term borrowings (net) 2.219 (0.512) 7.203 (0.939)
------- --------- -------- -------
Sale (repurchase) of accounts
receivable (net) (2.608) (7.221) (4.450) (14.445)
------- --------- -------- -------
Repayment of long-term debt (17.368) (24.564) (30.930) (33.190)
------- --------- -------- -------
Proceeds from issuance of long-term
debt 1.560 1.560
------- --------- -------- -------
Acquisition of treasury shares, net (0.013) (0.013)
------- --------- -------- -------
Net cash used in financing activities (16.210) (32.297) (26.630) (48.574)
======= ========= ======== =======
Exchange losses on cash (0.370) 9.553 1.281 4.047
======= ========= ======== =======
Net (decrease) increase in cash (2.906) (33.962) 0.803 (60.292)
------- --------- -------- -------
Cash at beginning of period 87.953 142.117 84.244 168.447
------- --------- -------- -------
Cash at end of period 85.047 108.155 85.047 108.155
------- --------- -------- -------
*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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