SOURCE: Grupo TMM

Grupo TMM

October 28, 2009 16:30 ET

Grupo TMM Reports Third-Quarter 2009 Financial Results

MEXICO CITY--(Marketwire - October 28, 2009) - Grupo TMM, S.A.B. (NYSE: TMM) (BMV: TMM A)

--  Consolidated operating profit up $4.7 million for quarter and 34.5% in
    first nine months
--  Maritime operating profit up 40.8% for quarter and 21.9% in first nine
    months
--  EBITDA up 119.2% for quarter and 42.0% in first nine months
    

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 2009.

MANAGEMENT OVERVIEW

José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "In the 2009 third quarter, weak economic conditions continued to negatively impact revenues at each of our business units. However, operating profit, operating margins and EBITDA in the third quarter and first nine months of 2009 exceeded last years' results.

"Consolidated revenues decreased 21.8 percent in the 2009 third quarter and 16.3 percent in the 2009 nine-month period compared to the same periods of last year. Notwithstanding these revenue decreases, consolidated operating profit in the 2009 third quarter improved to $3.8 million compared to an operating loss of $0.9 million in the same period last year, and improved to $14.8 million in the 2009 nine-month period compared to $11.0 million in the 2008 nine-month period. These improvements were mainly due to lower costs and expenses and to improved profits at Maritime in the 2009 periods compared to the 2008 periods."

Serrano continued, "In the 2009 third quarter, corporate expenses decreased 34.4 percent, or $2.1 million, and in the first nine months of 2009, decreased 22.5 percent, or $3.3 million, both compared to the same respective periods of last year. The ratio of corporate expenses to total revenue declined to 5.4 percent in the 2009 third quarter and to 5.0 percent in the 2009 nine-month period.

"Consolidated EBITDA grew year-over-year, up 119.2 percent from $7.8 million in the 2008 third quarter to $17.1 million in the 2009 third quarter. Consolidated EBITDA increased 42.0 percent, from $36.9 million in the 2008 period to $52.4 million, in the 2009 period.

"At Maritime, third-quarter 2009 revenues fell 6.5 percent compared to third-quarter 2008, mainly due to a decrease in product tanker revenue days and to fewer vessels in operation. For the nine-month period of 2009 compared to the same period of 2008, Maritime revenues remained stable at $151 million.

"However, Maritime operating profit and margins increased in both 2009 periods compared to last year. In the 2009 third quarter, operating profit improved 40.8 percent to $14.5 million, and in the 2009 nine-month period, increased 21.9 percent to $40.6 million, mainly due to improvements at our offshore segment as a result of more vessels in operation and to higher average daily rates when compared to 2008.

"We continue to enhance our vessel utilization and productivity at our Maritime division, as we have recently closed four new long-term contracts. One product tanker and one new offshore vessel each began five-year contracts in mid-August, contributing to 2009 third-quarter results. Additionally, one new offshore vessel began a five-year contract this month, and another vessel will begin a five-year contract in early November, both of which will contribute to our results in the fourth quarter."

Serrano continued, "In the first nine months of 2009, lower automobile production, decreasing total trade and negative economic indexes in Mexico and abroad have negatively impacted TMM's Ports and Logistics divisions' revenue and operations. Port revenue and operating profit decreased in the 2009 periods compared to the 2008 periods mainly due to reduced auto exports and fewer cruise ship calls in the Port of Acapulco. At Logistics, trucking, auto hauling and warehousing were negatively affected period over period by reduced volumes as a result of lower demand for consumer goods, retail and auto parts. Logistics revenue was also impacted by the depreciation of the peso versus the dollar in 2009 compared to 2008.

"Net financial costs in the 2009 periods were partially offset by peso depreciation versus the dollar, as we recorded a net exchange gain of $18.0 million in the third quarter, which in turn reduced the net exchange loss for the first nine months of 2009 to $7.4 million."

Serrano concluded, "As we have discussed previously, we continue to work on the restructuring of our dollar denominated debt and sale of our non-strategic and non-productive assets and operations. While we would have hoped to have these actions completed by today, global credit markets, the Mexican economy and Mexican regulations have made these dealings very complex and time consuming.

"I want to assure our shareholders that we are now in the final stages to reach an agreement to refinance this debt, which is necessary for TMM's renewed growth and improved shareholder returns. Completing these transactions will allow us to de-lever the Company, ease our financial costs, increase our financial flexibility and focus all of our efforts going forward on improving TMM's operating profit to become free cash flow positive in 2010, positioning the Company for long-term growth and profitability."

CONFERENCE CALL

TMM's management will host a conference call and Webcast to review financial and operational highlights on Thursday, October 29 at 11:30 a.m. Eastern time. To participate in the conference call, please dial (888) 554-1432 (domestic) or (719) 325-2172 (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=62685.

A replay of the conference call will be available through November 12 at 11:59 p.m. Eastern time, by dialing (888) 203-1112 or (719) 457-0820, and entering passcode 7939427. On the Internet a replay will be available for 30 days at http://www.visualwebcaster.com/event.asp?id=62685.

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  December
                                                         30,        31,
                                                        2009       2008

                                                      ---------  ---------

Current assets:
Cash and cash equivalents                                99.770    168.447
                                                      ---------  ---------
Accounts receivable
  Accounts receivable - Net                              62.252     56.548
                                                      ---------  ---------
  Other accounts receivable                              42.806     23.750
                                                      ---------  ---------
  Prepaid expenses and others current assets             10.087     11.653
                                                      ---------  ---------
Total current assets                                    214.915    260.398
                                                      =========  =========
Property, machinery and equipment                       830.676    806.911
                                                      ---------  ---------
Cumulative Depreciation                                (137.800)  (124.396)
                                                      ---------  ---------
Property, machinery and equipment - Net                 692.876    682.515
                                                      =========  =========
Other assets                                             57.784     47.821
                                                      ---------  ---------
Deferred taxes                                           97.276     97.276
                                                      ---------  ---------
Total assets                                          1,062.851  1,088.010
                                                      ---------  ---------
Current liabilities:
Bank loans and current maturities of long-term
 liabilities                                             16.419     21.063
                                                      ---------  ---------
Sale of accounts receivable                              16.306     14.976
                                                      ---------  ---------
Suppliers                                                29.930     33.039
                                                      ---------  ---------
Other accounts payable and accrued expenses              54.222     38.827
                                                      ---------  ---------
    Total current liabilities                           116.877    107.905
                                                      ---------  ---------
Long-term liabilities:
  Bank loans                                             62.865     64.795
                                                      ---------  ---------
  Trust certificates debt                               653.605    615.609
                                                      ---------  ---------
  Sale of accounts receivable                            90.116    101.035
                                                      ---------  ---------
  Other long-term liabilities                            27.760     27.483
                                                      ---------  ---------
Total long-term liabilities                             834.346    808.922
                                                      =========  =========
Total liabilities                                       951.223    916.827
                                                      ---------  ---------

Stockholders' equity
  Common stock                                          114.058    114.058
                                                      ---------  ---------
  Retained earnings                                      20.435     82.117
                                                      ---------  ---------
  Initial accumulated translation loss                  (17.757)   (17.757)
                                                      ---------  ---------
    Cumulative translation adjusted                     (11.573)   (13.312)
                                                      ---------  ---------
                                                        105.163    165.106
                                                      ---------  ---------
    Minority interest                                     6.465      6.077
                                                      ---------  ---------
Total stockholders' equity                              111.628    171.183
                                                      ---------  ---------

Total liabilities and stockholders' equity            1,062.851  1,088.010
                                                      ---------  ---------

*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 Operations*
                          - millions of dollars -



                                    Three months ended  Nine months ended
                                      September 30,       September 30,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------

  Ports                                0.924     1.343     3.772     5.578
  Maritime                            49.171    52.602   151.308   151.687
  Logistics                           22.900    36.656    68.617   106.027
  Corporate and others                 1.700     4.849     5.709    10.836
  Eliminations                        (0.098)   (0.091)   (0.298)   (0.292)
                                    --------  --------  --------  --------
Revenue from freight and services     74.597    95.359   229.108   273.836
                                    --------  --------  --------  --------

  Ports                               (0.987)   (1.481)   (3.189)   (4.454)
  Maritime                           (27.813)  (37.491)  (90.206) (106.116)
  Logistics                          (26.069)  (38.715)  (75.159) (109.291)
  Corporate and others                (2.574)   (5.195)   (7.374)  (11.269)
  Eliminations                         0.098     0.091     0.298     0.292
                                    --------  --------  --------  --------
Cost of freight and services         (57.345)  (82.791) (175.630) (230.838)
                                    --------  --------  --------  --------

  Ports                               (0.177)   (0.208)   (0.566)   (0.645)
  Maritime                            (6.853)   (4.782)  (20.499)  (12.282)
  Logistics                           (1.790)   (0.940)   (4.371)   (3.301)
  Corporate and others                (0.002)    0.001    (0.011)   (0.013)
                                    --------  --------  --------  --------
Depreciation of vessels and
 equipment                            (8.822)   (5.929)  (25.447)  (16.241)
                                    --------  --------  --------  --------

  Corporate expenses                  (4.035)   (6.147)  (11.359)  (14.736)
  Ports                               (0.240)   (0.346)    0.017     0.479
  Maritime                            14.505    10.329    40.603    33.289
  Logistics                           (4.959)   (2.999)  (10.913)   (6.565)
  Corporate and others                (0.876)   (0.345)   (1.676)   (0.446)
  Other (expenses) income - Net       (0.599)   (1.408)   (1.834)   (1.024)
                                    --------  --------  --------  --------
Operating Income                       3.796    (0.916)   14.838    10.997
                                    ========  ========  ========  ========
Financial (expenses) income - Net    (21.028)  (18.321)  (67.858)  (43.007)
Exchange gain (loss) - Net            17.967    32.051    (7.434)   21.663
                                    --------  --------  --------  --------
Net financial cost                    (3.061)   13.730   (75.292)  (21.344)
                                    --------  --------  --------  --------
Gain (loss) before taxes               0.735    12.814   (60.454)  (10.347)
                                    ========  ========  ========  ========
(Provision) benefit for taxes         (0.245)    1.155    (0.647)   (0.305)
                                    --------  --------  --------  --------
Net income (loss) for the period       0.490    13.969   (61.101)  (10.652)
                                    --------  --------  --------  --------

Attributable to:
  Minority interest                    0.559    (0.082)    0.581     0.482
                                    --------  --------  --------  --------
Equity holders of GTMM, S.A.B.        (0.069)   14.051   (61.682)  (11.134)
                                    --------  --------  --------  --------

Weighted average outstanding shares
 (millions)                           55.227    55.956    55.227    56.518
Income (loss) earnings per share
 (dollars / share)                     (0.00)     0.25     (1.12)    (0.20)

Outstanding shares at end of period
 (millions)                           55.227    55.252    55.227    55.252
Income (loss) earnings per share
 (dollars / share)                     (0.00)     0.25     (1.12)    (0.20)
                                    --------  --------  --------  --------
*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
                                      September 30,       September 30,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------

Cash flow from operation
 activities:
Net Income (loss) before
 discontinuing operations              0.490    13.969   (61.101)  (10.652)
                                    --------  --------  --------  --------

Charges (credits) to income not
 affecting resources:
    Depreciation & amortization       13.283     8.674    37.545    25.909
                                    --------  --------  --------  --------
    Other non-cash items               5.901   (12.476)   71.036    32.515
                                    --------  --------  --------  --------
  Total non-cash items                19.184    (3.802)  108.581    58.424
                                    --------  --------  --------  --------
    Changes in assets & liabilities   (9.147)  (31.437)  (22.070)  (59.421)
                                    --------  --------  --------  --------
  Total adjustments                   10.037   (35.239)   86.511    (0.997)
                                    --------  --------  --------  --------
  Net cash provided by (used in)
   operating activities               10.527   (21.270)   25.410   (11.649)
                                    ========  ========  ========  ========

Cash flow from investing
 activities:
  Proceeds from sales of assets        4.383     0.489    11.835     1.008
                                    --------  --------  --------  --------
  Payments for purchases of assets   (14.794) (196.136)  (53.537) (298.137)
                                    --------  --------  --------  --------
  Common stock decrease of
   subsidiaries                       (0.202)             (0.202)   (0.490)
                                    --------  --------  --------  --------
  Dividends from non-consolidated
   subsidiaries                                  1.001     0.643     1.001
                                    --------  --------  --------  --------
  Net cash used in investment
   activities                        (10.613) (194.646)  (41.261) (296.618)
                                    ========  ========  ========  ========

Cash flow provided by financing
 activities:
  Short-term borrowings (net)                   (2.277)   (0.939)    0.249
                                    --------  --------  --------  --------
  Sale (repurchase) of accounts
   receivable (net)                   (7.222)   (7.240)  (21.667)  (21.777)
                                    --------  --------  --------  --------
  Repayment of long-term debt         (7.300)    0.615   (40.490)  (56.248)
                                    --------  --------  --------  --------
  Proceeds from issuance of
   long-term debt                      8.832   426.404     8.832   628.815
                                    --------  --------  --------  --------
  Acquisition of treasury shares,
   net                                (1.367)             (2.208)
                                    --------  --------  --------  --------
  Net cash (used in) provided by
   financing activities               (5.690)  416.135   (54.264)  548.831
                                    ========  ========  ========  ========
  Exchange losses on cash             (2.609)  (11.058)    1.438   (11.058)
                                    ========  ========  ========  ========
  Net (decrease) increase in cash     (8.385)  189.161   (68.677)  229.506
                                    --------  --------  --------  --------
  Cash at beginning of period        108.155    92.580   168.447    52.235
                                    --------  --------  --------  --------
  Cash at end of period               99.770   281.741    99.770   281.741
                                    --------  --------  --------  --------


*Prepared in accordance with International Financial Reporting Standards as
 issued by the International Accounting Standards Board.


Contact Information

  • TMM COMPANY CONTACT:
    Jacinto Marina
    Chief Financial Officer
    011-525-55-629-8866 ext. 2901
    Email Contact

    Monica Azar
    Investor Relations
    917-597-5361
    011-525-55-629-8866 ext. 3421
    Email Contact

    AT DRESNER CORPORATE SERVICES:
    Kristine Walczak (investors, analysts, media)
    312-726-3600
    Email Contact