SOURCE: Grupo TMM

Grupo TMM

April 29, 2009 16:01 ET

Grupo TMM Reports First-Quarter 2009 Financial Results

Corporate Costs Reduced 23.2 Percent; EBITDA of $17.0 Million Improved 11.1 Percent Year Over Year; Net Income of $4.7 Million and EPS of $0.09

MEXICO CITY--(Marketwire - April 29, 2009) - 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 2009.

MANAGEMENT OVERVIEW

José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "Our first-quarter results were affected by the worldwide financial crisis and global economic recession. Mexico's economy was acutely affected in the first quarter of 2009. The Mexican automotive industry's total production and exports decreased 40 percent in the first quarter of 2009 compared to the same period of last year. Additionally, in the first quarter of 2009, product tanker rates were lower compared to last year, and transportation services volumes were negatively impacted by lower demand for consumer goods, retail and auto parts.

"While our first-quarter results do not reflect the full potential of TMM's assets, we believe our maritime business continues to be strong as a result of the medium- and long-term contractual nature of the division's revenues.

"In the first quarter of 2009, Maritime revenues increased 11.2 percent compared to the same quarter last year, specifically due to revenue improvements at the offshore and product tanker segments. Demand continued to meet our expectations, as fleet utilization was 100 percent for tankers and 88 percent for offshore vessels, both above the average for the industry. However, operating results at this division were impacted by the addition of new vessels to our fleet in the second half of 2008, which increased this division's depreciation and amortization costs, and by not having all of our new offshore vessels working at full capacity in the first quarter of 2009."

Serrano added, "Our near- and long-term outlook for the Company remains positive, and we are confident our results will demonstrate the earnings power of our maritime and port assets going forward. Based on our current revenue expectations, we anticipate TMM's operating profit to improve throughout 2009. While we acknowledge that challenges remain, we continue to see a trend towards greater demand for offshore vessel services in the Mexican market. We remain focused on profitable operations, appropriately deploying our capital, the sale of non-productive and non-strategic assets and the restructure of our corporate debt, all while building long-term value for our shareholders. Each quarter we get closer to meeting these goals.

"Our strategy to structure a long-term, non-recourse, peso-denominated financing through our Trust Certificates Program continues to benefit TMM. In the first quarter of 2009, we recorded a net exchange gain of $22.1 million. Additionally, this debt is tied to the 28-day TIIE, or Mexico's Interbank Equilibrium Interest Rate. At March 31, the 28-TIIE decreased 154 basis points to 7.15 percent, and on April 23, this rate decreased further to 6.37 percent. The Central Bank of Mexico anticipates further cuts, which would serve to reduce the debt service of this Program, starting in June, when the next coupon payment of the first and third tranches are due.

"As a result of the organizational restructuring we implemented in 2008, the Company's costs and operating expenses were 8.9 percent lower, and our corporate expenses were reduced 23.2 percent, or $1.1 million, quarter over quarter. In the first quarter of 2009, the ratio of corporate expenses to total revenues was 4.4 percent compared to 5.4 percent in the same quarter last year. Additionally, in the first quarter of 2009 we recorded net income of $4.7 million compared to a net loss of $10.3 million in the first quarter of last year."

Serrano concluded, "The remainder of 2009 and into 2010 will be challenging times for the world's economy. However, the fundamentals of our business remain solid, with our maritime and port businesses well positioned for growth. We continue to seek opportunities to selectively grow our revenue and profit. TMM's management continues to be focused on enhancing shareholder value over the short- and long-terms."

CONFERENCE CALL

Due to the fact that Mexican authorities have declared a state of alert in Mexico City and other Mexican states because of the swine flu outbreak, and out of concern for the health of TMM's employees and their families, this quarter's conference call has been cancelled. Please contact Monica Azar at monica.azar@tmm.com.mx, or Jacinto Marina at jacinto.marina@tmm.com.mx if you have any questions.

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 (under discontinuing operations)*
                         - millions of dollars -


                                                  March 31,   December 31,
                                                    2009          2008
                                                ============  ============

Current assets:
Cash and cash equivalents                            142.117       168.447
                                                ------------  ------------
Accounts receivable
  Accounts receivable - Net                           51.566        56.548
                                                ------------  ------------
  Other accounts receivable                           32.925        23.750
                                                ------------  ------------
  Prepaid expenses and other current assets           10.569        11.653
                                                ------------  ------------
Total current assets                                 237.177       260.398
                                                ============  ============

Property, machinery and equipment                    825.402       806.911
                                                ------------  ------------
Cumulative Depreciation                             (130.749)     (124.396)
                                                ------------  ------------
Property, machinery and equipment - Net              694.653       682.515
                                                ============  ============
Other assets                                          48.671        47.821
                                                ============  ============
Deferred taxes                                        97.276        97.276
                                                ============  ============
Total assets                                       1,077.777     1,088.010
                                                ============  ============

Current liabilities:
Bank loans and current maturities of long-term
 liabilities                                          22.533        21.063
                                                ------------  ------------
Sale of accounts receivable                           15.457        14.976
                                                ------------  ------------
Suppliers                                             32.245        33.039
                                                ------------  ------------
Other accounts payable and accrued expenses           47.036        38.827
                                                ------------  ------------
    Total current liabilities                        117.271       107.905
                                                ============  ============
Long-term liabilities:
  Bank loans                                          62.336        64.795
                                                ------------  ------------
  Trust certificates debt                            598.302       615.609
                                                ------------  ------------
  Sale of accounts receivable                         97.408       101.035
                                                ------------  ------------
  Other long-term liabilities                         26.909        27.483
                                                ------------  ------------
Total long-term liabilities                          784.955       808.922
                                                ============  ============

Total liabilities                                    902.226       916.827
                                                ============  ============

Stockholders' equity
  Common stock                                       114.058       114.058
                                                ------------  ------------
  Retained earnings                                   86.849        82.117
                                                ------------  ------------
  Initial accumulated translation loss               (17.757)      (17.757)
                                                ------------  ------------
   Cumulative translation adjusted                   (13.757)      (13.312)
                                                ------------  ------------
                                                     169.393       165.106
                                                ------------  ------------
   Minority interest                                   6.158         6.077
                                                ------------  ------------
Total stockholders´ equity                           175.551       171.183
                                                ============  ============

Total liabilities and stockholders´ equity         1,077.777     1,088.010
                                                ============  ============


*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
                                                          March 31,
                                                    ----------------------
                                                       2009        2008
                                                    ==========  ==========

     Ports                                               1.887       2.431
     Maritime                                           54.450      48.953
     Logistics                                          21.881      32.667
     Corporate and others                                1.863       1.962
     Eliminations                                       (0.116)     (0.096)
                                                    ----------  ----------
Revenue from freight and services                       79.965      85.917
                                                    ----------  ----------

     Ports                                              (1.164)     (1.556)
     Maritime                                          (36.297)    (32.010)
     Logistics                                         (23.197)    (33.521)
     Corporate and others                               (2.167)     (1.864)
     Eliminations                                        0.116       0.096
                                                    ----------  ----------
Cost of freight and services                           (62.709)    (68.855)
                                                    ----------  ----------

     Ports                                              (0.182)     (0.216)
     Maritime                                           (6.825)     (3.625)
     Logistics                                          (0.946)     (1.219)
     Corporate and others                               (0.004)     (0.002)
                                                    ----------  ----------
Depreciation of vessels and equipment                   (7.957)     (5.062)
                                                    ----------  ----------

Corporate expenses                                      (3.537)     (4.606)
                                                    ----------  ----------

     Ports                                               0.541       0.659
     Maritime                                           11.328      13.318
     Logistics                                          (2.262)     (2.073)
     Corporate and others                               (0.308)      0.096
     Corporate expenses                                 (3.537)     (4.606)
     Other (expenses) income - Net                      (0.583)     (0.899)
                                                    ----------  ----------
Operating Income                                         5.179       6.495
                                                    ==========  ==========
Financial (expenses) income - Net                      (22.564)    (14.512)
                                                    ----------  ----------
Exchange gain (loss) - Net                              22.065      (1.890)
                                                    ----------  ----------
Net financial cost                                      (0.499)    (16.402)
                                                    ----------  ----------
Gain (loss) before taxes                                 4.680      (9.907)
                                                    ==========  ==========
Benefit (provision) for taxes                            0.155
                                                    ----------  ----------
Net income (loss) for the period                         4.835      (9.907)
                                                    ==========  ==========

Attributable to:
     Minority interest                                   0.102       0.372
                                                    ----------  ----------
Equity holders of GTMM, S.A.B.                           4.733     (10.279)
                                                    ==========  ==========

Weighted average outstanding shares (millions)          55.227      56.897
Income (loss) earnings per share (dollars / share)        0.09       (0.18)

Outstanding shares at end of period (millions)          55.227      56.888
Income (loss) earnings per share (dollars / share)        0.09       (0.18)
                                                    ==========  ==========

*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
                                                            March 31,
                                                      --------------------
                                                        2009       2008
                                                      =========  =========

Cash flow from operation activities:
Net  Income (loss) before discontinuing operations        4.835     (9.907)
                                                      ---------  ---------

Charges (credits) to income not affecting resources:

      Depreciation & amortization                        11.835      8.766
                                                      ---------  ---------
      Other non-cash items                                1.738     17.376
                                                      ---------  ---------
   Total non-cash items                                  13.573     26.142
                                                      ---------  ---------
      Changes in assets & liabilities                     2.758     (0.656)
                                                      ---------  ---------
   Total adjustments                                     16.331     25.486
                                                      ---------  ---------

   Net cash provided by operating activities             21.166     15.579
                                                      =========  =========

Cash flow from investing activities:
   Proceeds from sales of assets                          1.311      0.038
                                                      ---------  ---------
   Payments for purchases of assets                     (27.024)   (54.390)
                                                      ---------  ---------
   Common stock decrease of subsidiaries                            (0.490)
                                                      ---------  ---------

   Net cash used in investment activities               (25.713)   (54.842)
                                                      =========  =========

Cash flow provided by financing activities:
   Short-term borrowings (net)                           (0.427)     2.743
                                                      ---------  ---------
   Sale (repurchase) of accounts receivable (net)        (7.224)    (7.296)
                                                      ---------  ---------
   Repayment of long-term debt                           (8.626)    (4.744)
                                                      ---------  ---------
   Proceeds from issuance of long-term debt                         53.250
                                                      ---------  ---------
   Acquisition of treasury shares, net                              (0.095)
                                                      ---------  ---------

   Net cash (used in) provided by financing
    activities                                          (16.277)    43.858
                                                      =========  =========

   Exchange losses on cash                               (5.506)
                                                      ---------  ---------

   Net (decrease) increase in cash                      (26.330)     4.595
                                                      ---------  ---------
   Cash at beginning of period                          168.447     52.235
                                                      ---------  ---------
   Cash at end of period                                142.117     56.830
                                                      =========  =========

*Prepared in accordance with International Financial Reporting Standards.

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 or
    011-525-55-629-8866 ext. 3421
    Email Contact

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