-- Revenues of $76.9 million, up 30.3 percent from $59.0 million
-- Transportation income of $5.2 million, up 48.6 percent from $3.5
million
-- Operating margin of 6.8 percent, up 0.8 percentage points
-- EBITDA of $12.0 million, up 39.5 percent from $8.6 million
-- Net loss of $45.6 million compared to a net loss of $8.0 million
Comparing the nine months of 2007 with the nine months of 2006, TMM
reported the following results:
-- Revenue of $218.8 million, up 19.8 percent from $182.7 million
-- Transportation income of $18.2 million, up 2.2 times from $8.4 million
-- Operating margin of 8.3 percent, up 3.7 percentage points
-- EBITDA of $38.3 million, up 55.1 percent from $24.7 million
-- Net loss of $51.3 million compared to net income of $63.5 million
Net loss in the 2007 period was impacted by a one time write-off of $38.6
million in the third quarter of 2007 resulting from the settlement of two
accounts receivable from Kansas City Southern.
Increased consolidated transportation income is mainly due to improved
transportation income in the Maritime division of $2.8 million in the third
quarter of 2007 and $10.9 million in the nine months of 2007 compared to
the same periods last year.
SG&A of $10.7 million in the third quarter increased 40.8 percent, or $3.1
million compared to the same period last year. SG&A in the first nine
months of 2007 increased 16.9 percent, or $4.2 million, over the same
period of 2006. The increase in the nine-month period of 2007 was
attributable to one-time expenses incurred in the third quarter, which
included $0.2 million of severance payments at the Logistics division and
$0.2 million of start-up costs in the Company's new auto hauling business;
increased costs of $0.9 million resulting from annual cost of living
adjustments to employee's salaries and $0.6 million attributable to the
Company's new warehouse business. Additionally, in the 2006 period the
Company recognized a benefit of approximately $2.0 million from the
disposition of non-operating assets.
Net financial cost in the third quarter of 2007 was $11.8 million, which
included an exchange gain of $2.0 million, increasing $0.4 million from a
net financial cost incurred in the same period of 2006 of $11.4 million,
which included an exchange gain of $1.5 million. This increase was mainly
attributable to $6.2 million of financial expenses associated with the
Company's securitization program, to $5.7 million of interests associated
with the Company's trust certificates program, and to $1.1 million of
interests related to the acquisition of two chemical tankers. This increase
was partially decreased by costs incurred in the 2006 period, by $9.4
million of financial expenses related to the Company's 2007 Notes and by
$1.9 million in prepayments of maritime assets and other debt.
Net financial cost in the first nine months of 2007 was $32.8 million which
included an exchange gain of $1.5 million decreasing $12.9 million from a
net financial cost incurred in the same period of 2006 of $45.7 million,
which included an exchange loss of $0.8 million. The decrease in the 2007
period resulted mainly from costs incurred in the 2006 period of $37.6
million attributable to financial expenses related to the Company's 2007
Notes and to $3.4 million in prepayments of maritime assets and other debt.
Additionally, in the first nine months of 2007, TMM incurred $20.0 million
of financial expenses associated with the Company's securitization program,
$5.7 million of interests associated with the Company's trust certificates
program, $1.5 million of interests related to the acquisition of two
chemical tankers, and prepaid $1.0 million of maritime assets.
BALANCE SHEET
As of September 30, 2007, TMM's total book value of debt was $505.0
million*. This debt is supported by approximately $374.0 million of
long-term contracted revenues. The total market value of the Company's
maritime assets is estimated to exceed their book value by $56 million.
**Proforma Total Net Debt as of September 30, 2007
(Millions of dollars)
Trust Certificates (1) $ 265.5
Securitization Facility (2) $ 130.4
Two Chemical Tankers $ 49.5
Other debt $ 11.6
Proforma Total Debt $ 457.0
Cash on hand $ 97.6
Proforma Total Net Debt $ 359.4
* Includes $7.5 million of accrued unpaid interest and is
reduced by $24.4 million of related expenses to be amortized
over time
** Book value of debt
(1). 20-year term peso denominated debt
(2). Outstanding balance of securitization facility after paying
down $50.0 million on October 15th
INVESTMENT IN FIXED ASSETS
As of September 30, 2007, the Company invested $95.5 million in fixed
assets, which included: $41.1 million in the acquisition of two chemical
tankers, $37.1 million in the acquisition of auto hauling equipment and
$17.3 million in the acquisition of trucks, trailers, operating equipment
and other assets.
DIVISIONAL RESULTS (All numbers in thousands)
Third Quarter 2007
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ---------
Revenues 44,671 31,150 1,174 (73) 76,922
--------- --------- --------- --------- ---------
Costs 31,483 28,516 1,080 (76) 61,003
--------- --------- --------- --------- ---------
Gross Result 13,188 2,634 94 3 15,919
--------- --------- --------- --------- ---------
Gross Margin 29.5% 8.5% 8.0% n/a 20.7%
--------- --------- --------- --------- ---------
SG & A 1,278 1,959 426 7,006 10,669
--------- --------- --------- --------- ---------
Transportation
Income 11,910 675 (332) (7,003) 5,250
--------- --------- --------- --------- ---------
Operating Margin 26.7% 2.2% (28.3%) n/a 6.8%
--------- --------- --------- --------- ---------
Third Quarter 2006
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ---------
Revenues 38,158 20,026 1,017 (147) 59,054
--------- --------- --------- --------- ---------
Costs 27,763 19,200 1,168 (209) 47,922
--------- --------- --------- --------- ---------
Gross Result 10,395 826 (151) 62 11,132
--------- --------- --------- --------- ---------
Gross Margin 27.2% 4.1% (14.8%) n/a 18.9%
--------- --------- --------- --------- ---------
SG & A 1,293 622 455 5,246 7,616
--------- --------- --------- --------- ---------
Transportation
Income 9,102 204 (606) (5,184) 3,516
--------- --------- --------- --------- ---------
Operating Margin 23.9% 1.0% (59.6%) n/a 6.0%
--------- --------- --------- --------- ---------
Nine Months 2007
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ---------
Revenues 132,049 81,167 5,852 (223) 218,845
--------- --------- --------- --------- ---------
Costs 95,008 73,352 3,408 (228) 171,540
--------- --------- --------- --------- ---------
Gross Result 37,041 7,815 2,444 5 47,305
--------- --------- --------- --------- ---------
Gross Margin 28.1% 9.6% 41.8% n/a 21.6%
--------- --------- --------- --------- ---------
SG & A 3,591 5,728 1,251 18,563 29,133
--------- --------- --------- --------- ---------
Transportation
Income 33,450 2,087 1,193 (18,558) 18,172
--------- --------- --------- --------- ---------
Operating Margin 25.3% 2.6% 20.4% n/a 8.3%
--------- --------- --------- --------- ---------
Nine Months 2006
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ---------
Revenues 106,292 71,792 4,850 (223) 182,711
--------- --------- --------- --------- ---------
Costs 79,860 66,273 3,538 (320) 149,351
--------- --------- --------- --------- ---------
Gross Result 26,432 5,519 1,312 97 33,360
--------- --------- --------- --------- ---------
Gross Margin 24.9% 7.7% 27.1% n/a 18.3%
--------- --------- --------- --------- ---------
SG & A 3,887 4,055 1,237 15,764 24,943
--------- --------- --------- --------- ---------
Transportation
Income 22,545 1,464 75 (15,667) 8,417
--------- --------- --------- --------- ---------
Operating Margin 21.2% 2.0% 1.5% n/a 4.6%
--------- --------- --------- --------- ---------
SEGMENT RESULTS
Maritime
Comparing the third quarter of 2007 with the third quarter of 2006:
-- Offshore revenues increased 25.4 percent to $15.2 million due mainly
to an improved revenue mix
-- Product tanker revenues increased 10.0 percent to $17.3 million due
mainly to one additional vessel in operation. Increased revenues in this
segment were partially offset by revenue losses from one vessel operating
in the spot market during this period, as tariffs were volatile during the
third quarter
-- Chemical tanker revenues improved 17.0 percent to $9.2 million due
mainly to higher tariffs and to $0.6 million of incremental revenues from
customer related demurrages
-- Consolidated gross profit improved 26.6 percent. Gross profit in the
offshore segment improved 47.2 percent to $7.1 million, and in the chemical
tanker segment improved 308.9 percent to $1.9 million due mainly to the
purchase of two vessels that were previously leased, which impacted gross
profit in the quarter by $0.7 million
Comparing the nine months of 2007 with the nine months of 2006:
-- Offshore revenues improved 28.6 percent to $48.5 million due mainly to
an 18.5 percent tariff increase, to one additional vessel in operation and
to a 42.0 percent decrease in dry docking days
-- Product tanker revenues increased 31.3 percent to $50.1 million due
mainly to two more vessels in operation and to improved utilization, from
90 percent to 100 percent
-- Chemical tanker revenues improved 13.0 percent to $25.1 million due
mainly to higher volumes and higher tariffs
-- Harbor towing revenue decreased 1.7 percent to $8.0 million due mainly
to a change in routes of container and refrigerated cargo
-- Consolidated gross profit improved 40.0 percent. Gross profit in the
offshore segment increased 79.1 percent to $20.0 million, and in the
chemical tanker segment improved 165.7 percent to $3.3 million due mainly
to the purchase of two vessels that were previously leased
Logistics
Comparing the third quarter of 2007 with the third quarter of 2006:
-- Trucking revenues increased 30.6 percent to $11.1 million due to
improved freight volumes as a result of new tractors and trailers in
operation
-- Warehousing operations contributed $4.6 million of revenues and $1.3
million of gross profit reflective of the start of the peak season
-- Auto hauling contributed $2.9 million of revenues; however planned
start-up costs impacted the division's results
-- Maintenance and repair revenues increased 112.6 percent to $2.0
million due to the rehabilitation and expansion of maintenance facilities
-- Inbound logistics revenues improved 13.0 percent to $5.8 million due
to increased volumes from a new client; however revenues were offset by
$0.5 million from a disruption of natural gas supply
-- Automotive revenues decreased $0.2 million to $2.6 million; however
gross profit improved 5.8 times to $0.4 million due to cost reductions
-- Consolidated gross profit improved 3.2 times to $2.6 million mainly
due to a gross profit increase in the maintenance and repair segment
Comparing the nine months of 2007 with the nine months of 2006:
-- Trucking revenues increased 20.0 percent to $31.0 million due to
expanded tractor and trailer fleets and growing customer contracts and
volumes
-- Warehousing operations contributed $12.2 million of revenues and $3.4
million of gross profit
-- Maintenance and repair revenues improved 78.1 percent to $5.4 million
due mainly to refurbished facilities and new international accounts at port
facilities
-- Inbound logistics revenues remained unchanged at $15.7 million due
mainly to a decrease in production in the automobile industry export output
in the first and second quarters of 2007
-- Consolidated gross profit improved 41.7 percent, mainly attributable
to a gross profit increase of 152.2 percent in the maintenance and repair
segment, from $0.9 million to $2.3 million and to a 58.6 percent cost
reduction in the automotive segment
Ports and Terminals
Comparing the third quarter of 2007 with the third quarter of 2006:
-- Consolidated revenues improved 15.4 percent, and consolidated
transportation income improved from a loss of $0.6 million to a loss of
$0.3 million
-- Revenues at Acapulco increased 19.0 percent to $0.7 million due mainly
to a 26.7 percent increase in auto handling revenues
Comparing the nine months of 2007 with the nine months of 2006:
-- Consolidated revenues improved 20.7 percent, and consolidated
transportation income increased from $75,000 to $1.2 million mainly due to
increased activity at the Port of Acapulco
-- Revenues at Acapulco increased 30.7 percent to $4.3 million due mainly
to a 53.3 percent revenue increase in the cruise ship business segment, as
two major liners that had changed routes last year re-scheduled calls at
this Port
-- Auto handling revenues at Acapulco increased 5.5 percent to $1.3
million, as export volumes to Japan and South America improved from 28,234
automobiles to 29,244
CONFERENCE CALL
TMM's management will host a conference call and Webcast to review
financial and operational highlights on Friday, October 26 at 11:00 a.m.
Eastern Time.
To participate in the conference call, please dial 866-542-4238 (domestic)
or 416-641-6127 (international) and provide conference ID 3238423 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=42831.
A replay of the conference call will be available through Friday, November
2, at 11:59 p.m. Eastern Time, by dialing 800-408-3053 or 416-695-5800 and
entering conference ID 3238423. On the Internet, a replay will be available
for 30 days at http://www.visualwebcaster.com/event.asp?id=42831.
Headquartered in Mexico City, TMM is a Latin American multimodal
transportation 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 (under discontinuing operations)
- millions of dollars -
September 30, December 31,
2007 2006
------------- -------------
Current assets:
Cash and cash equivalents 97.584 38.666
------------- -------------
Accounts receivable
Accounts receivable - Net 45.148 40.599
------------- -------------
Other accounts receivable 33.201 28.426
------------- -------------
Prepaid expenses and others current assets 13.027 9.882
------------- -------------
Account receivable to KCS 54.137 51.113
------------- -------------
Total current assets 243.097 168.686
============= =============
Long-term account receivable to KCS 40.000
============= =============
Property, machinery and equipment - Net 349.313 279.335
============= =============
Other assets 35.883 34.602
============= =============
Deferred taxes 112.833 112.833
============= =============
Total assets 741.126 635.456
============= =============
Current liabilities:
Bank loans and current maturities of long
term liabilities 28.759 27.555
------------- -------------
Sale of accounts receivable 17.982 16.727
------------- -------------
Suppliers 24.499 20.422
------------- -------------
Other accounts payable and accrued expenses 46.609 37.839
Total current liabilities 117.849 102.543
============= =============
Long-term liabilities:
Bank loans and other obligations 297.871 141.401
------------- -------------
Sale of accounts receivable 160.402 172.617
------------- -------------
Other long-term liabilities 27.752 27.551
------------- -------------
Total long-term liabilities 486.025 341.569
============= =============
Total liabilities 603.874 444.112
============= =============
Stockholders' equity
Common stock 121.158 121.158
------------- -------------
Retained earnings 29.149 80.440
------------- -------------
Initial accumulated translation loss (17.757) (17.757)
Cumulative translation adjusted (1.603) (1.173)
============= =============
130.947 182.668
------------- -------------
Minority interest 6.305 8.676
------------- -------------
Total stockholders' equity 137.252 191.344
============= =============
Total liabilities and stockholders' equity 741.126 635.456
============= =============
* Prepared in accordance with International Financial Reporting Standards.
Grupo TMM, S.A.B. and subsidiaries
* Statement of Income (under discontinuing operations)
- millions of dollars -
Three months ended Year ended
September 30, September 30,
2007 2006 2007 2006
-------- -------- -------- --------
Revenue from freight and services 76.922 59.054 218.845 182.711
-------- -------- -------- --------
Cost of freight and services (56.473) (44.354) (158.808) (139.436)
-------- -------- -------- --------
Depreciation of vessels and
operating equipment (4.530) (3.568) (12.732) (9.915)
-------- -------- -------- --------
15.919 11.132 47.305 33.360
-------- -------- -------- --------
Administrative expenses (10.669) (7.616) (29.133) (24.943)
-------- -------- -------- --------
Transportation Income 5.250 3.516 18.172 8.417
======== ======== ======== ========
Other (expenses) income - Net (0.660) 0.091 2.503 (0.370)
-------- -------- -------- --------
Operating Income 4.590 3.607 20.675 8.047
======== ======== ======== ========
Financial (expenses) income - Net (13.794) (12.889) (34.289) (44.845)
-------- -------- -------- --------
Exchange gain (loss) - Net 1.966 1.513 1.534 (0.843)
-------- -------- -------- --------
Net financial cost (11.828) (11.376) (32.755) (45.688)
-------- -------- -------- --------
Loss before taxes (7.238) (7.769) (12.080) (37.641)
======== ======== ======== ========
Benefit (provision) for taxes 0.223 0.847 (0.576) 3.646
-------- -------- -------- --------
Net loss before discontinuing
operations (7.015) (6.922) (12.656) (33.995)
======== ======== ======== ========
Income from disposal discontinuing
business (38.563) (0.781) (38.563) 98.610
-------- -------- -------- --------
Net (loss) income for the period (45.578) (7.703) (51.219) 64.615
======== ======== ======== ========
Attributable to:
Minority interest 0.007 0.295 0.073 1.068
-------- -------- -------- --------
Equity holders of GTMM, S.A.B. (45.585) (7.998) (51.292) 63.547
======== ======== ======== ========
Weighted average outstanding shares
(millions) 56.963 56.963 56.963 56.963
(Loss) income earnings per share
(dollars / share) (0.80) (0.14) (0.90) 1.12
Outstanding shares at end of period
(millions) 56.963 56.963 56.963 56.963
(Loss) income earnings per share
(dollars / share) (0.80) (0.14) (0.90) 1.12
======== ======== ======== ========
* Prepared in accordance with International Financial Reporting Standards.
Grupo TMM, S.A.B. and subsidiaries
* Statement of Cash Flow (under discontinuing operations)
- millions of dollars -
Three months ended Year ended
September 30, September 30,
2007 2006 2007 2006
-------- -------- -------- --------
Cash flow from operation
activities:
Net loss before discontinuing
operations (7.015) (6.922) (12.656) (33.995)
-------- -------- -------- --------
Charges (credits) to income not
affecting resources:
Depreciation & amortization 6.757 5.097 20.094 16.274
-------- -------- -------- --------
Deferred income taxes (1.770) (5.171)
-------- -------- -------- --------
Other non-cash items 5.240 (0.726) 3.642 16.441
-------- -------- -------- --------
Total non-cash items 11.997 2.601 23.736 27.544
-------- -------- -------- --------
Changes in assets &
liabilities (3.338) 13.900 26.800 5.286
-------- -------- -------- --------
Total adjustments 8.659 16.501 50.536 32.830
-------- -------- -------- --------
Net cash provided (used in) by
operating activities 1.644 9.579 37.880 (1.165)
======== ======== ======== ========
Cash flow from investing
activities:
Proceeds from sales of assets
(net) 0.163 0.188 6.997 9.089
-------- -------- -------- --------
Payments for purchases of assets (30.242) (38.543) (78.591) (135.298)
-------- -------- -------- --------
Acquisition of shares of
subsidiaries (0.392) (3.771) (19.462)
-------- -------- -------- --------
Paid to minority partners (2.450) (1.680)
-------- -------- -------- --------
Dividends from non-consolidated
subsidiaries 0.195 0.195
-------- -------- -------- --------
Net cash used in investment
activities (29.884) (38.747) (77.620) (147.351)
======== ======== ======== ========
Proceeds from discontinued
business and Sale of share of
subsidiaries (net) 3.139 71.854
-------- -------- -------- --------
Cash flow provided by financing
activities:
Short-term borrowings (net) (1.883) 0.434 (0.150)
-------- -------- -------- --------
Sale (repurchase) of accounts
receivable (net) (10.001) 191.624 (30.139) 191.624
-------- -------- -------- --------
Repayment of long-term debt (158.987) (179.985) (179.514) (550.071)
-------- -------- -------- --------
Proceeds from issuance of
long-term debt 255.377 30.340 307.877 121.803
-------- -------- -------- --------
Net cash provided (used in) by
financing activities 84.506 41.979 98.658 (236.794)
======== ======== ======== ========
Net increase (decrease) in cash 56.266 15.950 58.918 (313.456)
-------- -------- -------- --------
Cash at beginning of period 41.318 71.403 38.666 400.809
-------- -------- -------- --------
Cash at end of period 97.584 87.353 97.584 87.353
======== ======== ======== ========
* Prepared in accordance with International Financial Reporting Standards.
Contact Information: TMM COMPANY CONTACT: Juan Fernandez Chief Financial Officer 011-525-55-629-8778 Brad Skinner Investor Relations 011-525-55-638-8725 203-247-2420 Monica Azar Investor Relations 917-597-5361 or 011-525-55-629-8866 ext. 3421 AT DRESNER CORPORATE SERVICES: Kristine Walczak (investors, analysts, media) 312-726-3600