-- Revenue of $65.4 million, down 25.9 percent from $88.3 million
-- Operating income of $2.8 million, remained stable
-- Operating margin of 4.3 percent, up 1.2 percentage points
-- Net income of $7.5 million compared to net income of $23.1 million
Comparing the 2006 full year with the 2005 full year, TMM reported the
following results:
-- Revenue of $248.2 million, down 19.1 percent from $306.6 million
-- Operating income of $11.3 million, up $6.2 million from $5.1 million
-- Operating margin of 4.5 percent, up 2.9 percentage points
-- Net income of $71.0 million compared to net income of $171.3 million
Revenues in the fourth quarter and full year of 2006 compared to the same
periods of 2005 were impacted by the sale of TMM's port assets in Colombia
in 2005, reducing fourth quarter 2006 revenues by $3.3 million and twelve
months 2006 revenues by $19.5 million. Revenues in the 2006 periods were
also impacted by the cancellation of service agreements by Kansas City
Southern de Mexico, reducing revenues by $9.0 million in the fourth quarter
and $29.0 million in the full year.
Consolidated operating profit in fourth quarter 2006 was $2.8 million and
included $1.5 million of one-time costs and expenses. Had these one-time
charges not occurred, the consolidated operating profit run rate for the
quarter would have been $4.3 million, as shown in the Divisional Results
chart included below.
SG&A of $6.9 million in fourth quarter 2006 decreased 19.3 percent, or $1.6
million, over the same period of 2005, and SG&A of $31.8 million for
full-year 2006 remained stable compared to the same period of 2005.
Net interest expense in fourth quarter 2006 was $9.8 million compared to
$15.4 million in the same quarter last year. Net interest expense in the
2006 twelve-month period was $30.6 million compared to $68.2 million in the
2005 twelve-month period.
As of December 31, 2006, TMM's total debt was $362.3 million, of which
$195.2 million is related to the Company's securitization facility, $1.0
million is related to debt in an acquired subsidiary, and $166.1 million is
project finance debt and is related to the acquisition of maritime assets
and supported by approximately $116.7 million of long-term contracted
revenues, by the Mexican Navigation Law and by the total market value of
these assets, which is estimated to exceed their book value by $42 million.
Total Debt Composition as of December 31, 2006
(Millions of dollars)
Securitization Facility $195.2
Debt in acquired subsidiary $1.0
*Two Product Tankers $56.0
*Offshore Vessels $110.1
------
Total Debt (1): $362.3
*Project finance assets
(1) The Company's total debt as presented in its balance sheet as of
December 31, 2006, includes $3.6 million of accrued unpaid interest
and is reduced by $7.6 million of related expenses to be amortized
over time.
DIVISIONAL RESULTS (All numbers in thousands)
Fourth Quarter 2006
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- -------
Revenues 40,133 22,103 3,271 (65) 65,442
Costs 30,117 22,993 1,566 (81) 54,595
Gross Result 10,016 (890) 1,705 16 10,847
Gross Margin 25.0% (4.0%) 52.1% n/a 16.6%
SG & A 1,212 1,369 393 3,514 6,488
Operating Results 8,804 (2,259) 1,312 (3,498) 4,359
Operating Margin 21.9% (10.2%) 40.1% n/a 6.7%
*Fourth Quarter 2005
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ---------
Revenues 43,543 31,300 13,498 (32) 88,309
Costs 34,549 30,328 12,157 (52) 76,982
Gross Result 8,994 972 1,341 20 11,327
Gross Margin 20.7% 3.1% 9.9% n/a 12.8%
SG & A 1,225 1,907 907 4,493 8,532
Operating Results 7,769 (935) 434 (4,473) 2,795
Operating Margin 17.8% (3.0%) 3.2% n/a 3.2%
Full-Year 2006
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ---------
Revenues 146,425 93,895 8,121 (288) 248,153
Costs 109,977 89,266 5,104 (401) 203,946
Gross Result 36,448 4,629 3,017 113 44,207
Gross Margin 24.9% 4.9% 37.2% n/a 17.8%
SG & A 5,099 5,424 1,630 19,278 31,431
Operating Results 31,349 (795) 1,387 (19,165) 12,776
Operating Margin 21.4% (0.8%) 17.1% n/a 5.1%
*Full-Year 2005
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ---------
Revenues 159,575 108,402 38,853 (231) 306,599
Costs 133,028 103,479 33,574 (258) 269,823
Gross Result 26,547 4,923 5,279 27 36,776
Gross Margin 16.6% 4.5% 13.6% n/a 12.0%
SG & A 4,382 5,867 4,027 17,385 31,661
Operating Results 22,165 (944) 1,252 (17,358) 5,115
Operating Margin 13.9% (0.9%) 3.2% n/a 1.7%
*2005 results presented under continuing operations
SEGMENT RESULTS
Maritime
Comparing the fourth quarter and twelve months of 2006 with the same
periods of last year:
-- Revenues decreased 7.8 percent in the 2006 fourth-quarter and 8.2
percent in the 2006 twelve-month periods due mainly to fewer offshore and
tanker vessels in operation
-- Revenues were also impacted by $0.9 million from atypical dry-docking
activity in the 2006 fourth quarter and by $4.0 million in the 2006 twelve-
month period
-- Improved operating profit and margins at all business segments in the
2006 twelve-month period due mainly to cost reductions of 17.3 percent in
the 2006 twelve-month period as a result of increased owned offshore and
tanker vessels
Logistics
Comparing the fourth quarter and twelve months of 2006 with the same
periods of last year:
-- Overall revenues and operating results were impacted in both periods
due to Kansas City Southern de Mexico contract losses and to the
termination of unprofitable operations
-- In the 2006 fourth quarter, trucking revenues increased 22.7 percent
to $9.7 million and 32.1 percent to $35.6 million in the 2006 twelve-month
period due to new tractors and trailers acquired throughout the year
-- In the 2006 twelve-month period, inbound logistics revenues increased
21.8 percent to $21.0 million due mainly to increased volumes at Volkswagen
Ports and Terminals
Comparing the fourth quarter and twelve months of 2006 with the same
periods of last year:
-- Revenues were impacted by the sale of port assets in Colombia and by a
reclassification of net revenue at the shipping agencies business segment
-- Revenues at Acapulco increased 8.9 percent to $5.7 million in the 2006
twelve-month period due to a 16.2 percent revenue increase in the cruise
ship business segment
-- Auto handling revenues at Acapulco improved 27.5 percent to $1.7
million in the 2006 twelve-month period as export volumes to the Middle
East and South America increased from 25,963 automobiles in 2005 to 37,452
in 2006
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.
CONFERENCE CALL
TMM's management will host a conference call and Webcast to review
financial and operational highlights on Wednesday, February 28 at 11:00
a.m. Eastern Time.
To participate in the conference call, please dial 888-802-8577 (domestic)
or 973-935-8754 (international) and provide conference ID 8363833 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=37587.
A replay of the conference call will be available through March 7, at 11:59
p.m. Eastern Time, by dialing 877-519-4471or 973-341-3080, and entering
conference ID 8363833. On the Internet, a replay will be available for 30
days at http://www.visualwebcaster.com/event.asp?id=37587.
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. and subsidiaries
* Balance Sheet (under discontinuing operations)
- millions of dollars -
December 31, December 31,
2006 2005
============ ============
Current assets:
Cash and cash equivalents 38.685 400.809
------------ ------------
Accounts receivable
Accounts receivable - Net 40.946 43.267
------------ ------------
Other accounts receivable 78.667 19.615
------------ ------------
Prepaid expenses and others current assets 9.882 7.295
Total current assets 168.180 470.986
============ ============
Long-term account receivable 40.000 48.763
============ ============
Property, machinery and equipment - Net 279.335 166.661
============ ============
Other assets 35.517 23.160
============ ============
Deferred taxes 112.833 83.556
============ ============
Total assets 635.865 793.126
============ ============
Current liabilities:
Bank loans and current maturities of long term
liabilities 27.555 35.546
------------ ------------
Sale of accounts receivable 16.727
------------ ------------
Suppliers 20.486 22.755
------------ ------------
Other accounts payable and accrued expenses 37.213 47.686
Total current liabilities 101.981 105.987
============ ============
Long-term liabilities:
Bank loans and other obligations 141.401 524.763
------------ ------------
Sale of accounts receivable 172.617
------------ ------------
Other long-term liabilities 23.917 25.630
------------ ------------
Total long-term liabilities 337.935 550.393
============ ============
============ ============
Total liabilities 439.916 656.380
============ ============
Stockholders´ equity
Common stock 121.158 121.158
------------ ------------
Retained earnings 85.190 14.454
------------ ------------
Initial accumulated translation loss (17.757) (17.757)
------------ ------------
Cumulative translation adjusted (1.170) 1.422
============ ============
187.421 119.277
Minority interest 8.528 17.469
------------ ------------
Total stockholders’ equity 195.949 136.746
============ ============
============ ============
Total liabilities and stockholders´ equity 635.865 793.126
============ ============
* Prepared in accordance with International Financial Reporting Standards.
Grupo TMM, S.A. and subsidiaries
* Statement of Income (under discontinuing operations)
- millions of dollars -
Three months ended Year ended
December 31, December 31,
2006 2005 2006 2005
======== ======== ======== ========
Revenue from freight and services 65.442 88.309 248.153 306.599
-------- -------- -------- --------
-------- -------- -------- --------
Cost of freight and services (52.196) (74.959) (191.632) (262.569)
-------- -------- -------- --------
Depreciation of vessels and
operating equipment (3.521) (2.023) (13.436) (7.254)
-------- -------- -------- --------
9.725 11.327 43.085 36.776
-------- -------- -------- --------
-------- -------- -------- --------
Administrative expenses (6.886) (8.532) (31.829) (31.661)
-------- -------- -------- --------
Operating Income 2.839 2.795 11.256 5.115
======== ======== ======== ========
-------- -------- -------- --------
Other expenses - Net (1.354) (9.567) (1.724) (1.023)
-------- -------- -------- --------
-------- -------- -------- --------
Financial (expenses) income - Net (9.787) (15.358) (30.587) (68.177)
-------- -------- -------- --------
Amortization of expenses related to
debt (0.800) (3.851) (24.845) (22.701)
-------- -------- -------- --------
Exchange gain (loss) - Net 0.448 1.152 (0.395) 1.290
-------- -------- -------- --------
Net financial cost (10.139) (18.057) (55.827) (89.588)
-------- -------- -------- --------
Loss before taxes (8.654) (24.829) (46.295) (85.496)
======== ======== ======== ========
Benefit for taxes 23.934 55.053 27.580 61.624
-------- -------- -------- --------
Net Income (loss) before
discontinuing operations 15.280 30.224 (18.715) (23.872)
======== ======== ======== ========
Income from discontinuing
operations 1.364
-------- -------- -------- --------
(Loss) income from disposal
discontinuing business (8.510) (5.623) 90.100 197.999
-------- -------- -------- --------
Net income for the period 6.770 24.601 71.385 175.491
======== ======== ======== ========
Attributable to:
-------- -------- -------- --------
Minority interest (0.708) 1.487 0.360 4.188
-------- -------- -------- --------
Equity holders of GTMM, S.A. 7.478 23.114 71.025 171.303
======== ======== ======== ========
Weighted average outstanding shares
(millions) 56.963 56.963 56.963 56.963
Income earnings per share
(dollars / share) 0.13 0.41 1.25 3.01
Outstanding shares at end of period
(millions) 56.963 56.963 56.963 56.963
Income earnings per share
(dollars / share) 0.13 0.41 1.25 3.01
======== ======== ======== ========
* Prepared in accordance with International Financial Reporting Standards.
Grupo TMM, S.A. and subsidiaries
* Statement of Cash Flow (under discontinuing operations)
- millions of dollars -
Three months ended Year ended
December 31, December 31,
2006 2005 2006 2005
======== ======== ======== ========
Cash flow from operation
activities:
Net Income (loss) before
discontinuing operations 15.280 30.224 (18.715) (23.872)
-------- -------- -------- --------
Charges (credits) to income not
affecting resources:
Depreciation & amortization 4.161 7.674 20.435 28.789
-------- -------- -------- --------
Deferred income taxes (24.117) (53.501) (29.288) (63.186)
-------- -------- -------- --------
Other non-cash items (1.162) 12.278 15.279 (1.364)
-------- -------- -------- --------
Total non-cash items (21.118) (33.549) 6.426 (35.761)
-------- -------- -------- --------
Changes in assets & liabilities (4.198) 17.515 (22.211) 46.266
-------- -------- -------- --------
Total adjustments (25.316) (16.034) (15.785) 10.505
-------- -------- -------- --------
Net cash (used in ) provided by
operating activities (10.036) 14.190 (34.500) (13.367)
======== ======== ======== ========
Cash flow from investing
activities:
Proceeds from sales of assets
(net) 3.204 (0.067) 12.293 1.693
-------- -------- -------- --------
Payments for purchases of assets (15.346) (14.053) (150.644) (105.058)
-------- -------- -------- --------
Acquisition of shares of
subsidiaries (8.827) (4.013) (28.289) (38.072)
-------- -------- -------- --------
Dividends paid to minority
partners (1.680)
-------- -------- -------- --------
Net cash used in investment
activities (20.969) (18.133) (168.320) (141.437)
======== ======== ======== ========
Proceeds from discontinued
business and Sale of share of
subsidiaries (net) (3.100) 370.374 68.754 581.054
-------- -------- -------- --------
Cash flow provided by financing
activities:
Short-term borrowings (net) (0.150) (0.150) (0.600)
-------- -------- -------- --------
Principal payments under capital
lease obligations (0.151)
-------- -------- -------- --------
Sale (repurchase) of accounts
receivable (net) (3.435) 188.535 (75.607)
-------- -------- -------- --------
Repayment of long-term debt (11.128) 8.143 (538.246) (75.201)
-------- -------- -------- --------
Proceeds from issuance of
long-term debt 121.803 72.970
-------- -------- -------- --------
Net cash (used in) provided by
financing activities (14.563) 7.993 (228.058) (78.589)
======== ======== ======== ========
Net (decrease) increase in cash (48.668) 374.424 (362.124) 347.661
-------- -------- -------- --------
Cash at beginning of period 87.353 26.385 400.809 53.148
-------- -------- -------- --------
Cash at end of period 38.685 400.809 38.685 400.809
======== ======== ======== ========
* Prepared in accordance with International Financial Reporting Standards.
Contact Information: TMM COMPANY CONTACT: Juan Fernandez Chief Financial Officer 011-52-55-5629-8778 (Email Contact) Brad Skinner Investor Relations Director TMM Logistics 011-52-55-5629-8725 203-247-2420 (Email Contact) Monica Azar Manager, Investor Relations 212-659-4975 (Email Contact) AT DRESNER CORPORATE SERVICES: Kristine Walczak (investors, analysts, media) 312-726-3600 (Email Contact)