SOURCE: Grupo TMM

Grupo TMM

February 25, 2009 16:00 ET

Grupo TMM Reports Fourth-Quarter and Full-Year 2008 Financial Results

Revenues up 5.6 percent for quarter and 19.7 percent in 2008; Operating profit up 31.3 percent in 2008; Net profit of $91.7 million and EPS of $1.66 in Q4; Total stockholder's equity grew 48.7 percent to $176.8 million in 2008

MEXICO CITY--(Marketwire - February 25, 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 fourth-quarter and 12-month periods of 2008.

MANAGEMENT OVERVIEW

José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "Over the past several years we have built a solid operating business, modernizing and increasing the size of our maritime fleet and entering into valuable medium- and long-term contracts with Pemex and other clients. Through well thought out investment and operational decisions, our strategy to expand our maritime fleet has resulted in improved revenue and profit generation potential. Even in these very difficult economic times, we are announcing increased revenues of 19.7 percent and increased operating profit of 31.3 percent for 2008 over 2007.

"TMM, along with the vast majority of companies worldwide, faced a challenging business environment in the second half of 2008. Nonetheless, we recorded net income of $80.6 million and earnings per share of $1.43 for the full year of 2008. Also, at December 31, 2008, the Company had total assets of over $1.0 billion, a significant growth over total assets of $662 million at the end of last year. Total stockholders' equity improved to $176.8 million at December 31, 2008, compared to $118.9 million at the end of 2007."

Serrano continued, "Moreover, our strategy to structure a long-term, non-recourse, peso-denominated financing through our Trust Certificates Program has been extremely beneficial to TMM. Due to the strengthening of the U.S. dollar versus the peso in the second half of 2008, TMM recorded net exchange gains of $123.8 million and $145.5 million in the fourth quarter and full year 2008, respectively. I would also like to emphasize that 60 percent of the Company's revenues and 35 percent of its costs and expenses are U.S. dollar denominated.

"Demand for TMM's offshore and product tanker services continued to be strong throughout 2008. In the fourth quarter, we received three new offshore vessels which began operations under two- and three-year fixed-rate contracts with Pemex."

Serrano added, "We believe our results this year are indicative of the resilience of our maritime and port businesses. We are confident that our maritime business will continue to grow, as a result of our efficient operating position and the long-term contractual nature of our revenues, as will our port business, as we realize its full potential in 2009 and in years to come.

"During the second half of 2008, we began a number of initiatives that should allow TMM to remain well positioned in this uncertain economic environment. Among these actions, we reduced our non-union workforce by 23 percent, which we expect will result in cost savings of approximately $3 million in 2009. We also enacted an organizational restructuring which will improve operational efficiencies while focusing our efforts on execution.

"As a result of this organizational restructuring, corporate expenses in the fourth quarter were impacted by $1.1 million of non-recurring costs related to severance expenses. Excluding these non-recurring costs, the ratio of corporate expenses to total revenue in the full year of 2008 would have been 5.1 percent compared to 6.1 percent in the same period of 2007. We expect this ratio to continue a downward trend in 2009."

Serrano concluded, "We believe that 2009 will be a challenging year. Nevertheless, we are confident that we are well positioned to meet these challenges as we continue to take additional steps to reduce costs, sell non-productive and non-strategic assets and restructure our corporate debt. Additionally, we intend to grow our Port business according to the Mexican Government's development plan and to diversify our maritime business to international markets."

CONFERENCE CALL

TMM's management will host a conference call and Webcast to review financial and operational highlights on Thursday, February 26 at 11:00 a.m. Eastern time. To participate in the conference call, please dial (877) 723-9511 (domestic) or (719) 325-4767 (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=55590.

A replay of the conference call will be available through March 12 at 11:59 p.m. Eastern time, by dialing (888) 203-1112 or (719) 457-0820, and entering passcode 4652949. On the Internet a replay will be available for 30 days at http://www.visualwebcaster.com/event.asp?id=55590.

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 -

                                                 December 31,  December 31,
                                                     2008          2007
                                                 -----------   -----------

Current assets:
Cash and cash equivalents                            168.445        52.235
                                                 -----------   -----------
Accounts receivable
   Accounts receivable - Net                          56.480        44.812
                                                 -----------   -----------
   Other accounts receivable                          23.940        32.698
                                                 -----------   -----------
   Prepaid expenses and others current assets         11.653        12.506
                                                 -----------   -----------
Total current assets                                 260.518       142.251
                                                 ===========   ===========

Property, machinery and equipment                    806.911       453.069
                                                 -----------   -----------
Cumulative depreciation                             (124.396)     (108.830)
                                                 -----------   -----------
Property, machinery and equipment - Net              682.515       344.239
                                                 ===========   ===========
Other assets                                          52.758        59.866
                                                 ===========   ===========
Deferred taxes                                        97.050       115.818
                                                 ===========   ===========
Total assets                                       1,092.841       662.174
                                                 -----------   -----------

Current liabilities:
Bank loans and current maturities of long-term
 liabilities                                          21.062        10.547
                                                 -----------   -----------
Sale of accounts receivable                           14.976        13.463
                                                 -----------   -----------
Suppliers                                             33.040        28.660
                                                 -----------   -----------
Other accounts payable and accrued expenses           37.318        40.127
                                                 -----------   -----------
      Total current liabilities                      106.396        92.797
                                                 ===========   ===========
Long-term liabilities:
   Bank loans                                         64.795        49.707
                                                 -----------   -----------
   Trust certificates debt                           612.016       260.762
                                                 -----------   -----------
   Sale of accounts receivable                       101.035       113.362
                                                 -----------   -----------
   Other long-term liabilities                        31.808        26.684
                                                 -----------   -----------
Total long-term liabilities                          809.654       450.515
                                                 ===========   ===========

Total liabilities                                    916.050       543.312
                                                 -----------   -----------

Stockholders´ equity
   Common stock                                      114.058       121.094
                                                 -----------   -----------
   Retained earnings                                  87.744        11.885
                                                 -----------   -----------
   Initial accumulated translation loss              (17.757)      (17.757)
                                                 -----------   -----------
 Cumulative translation adjusted                     (13.312)       (2.263)
                                                 -----------   -----------
                                                     170.733       112.959
                                                 -----------   -----------
 Minority interest                                     6.058         5.903
                                                 -----------   -----------
Total stockholders´ equity                           176.791       118.862
                                                 -----------   -----------

Total liabilities and stockholders´ equity         1,092.841       662.174
                                                 -----------   -----------

*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
                                       December 31,        December 31,
                                    ------------------  ------------------
                                      2008      2007      2008      2007
                                    --------  --------  --------  --------
Ports                                  2.454     2.643     8.032     8.495
Maritime                              55.131    47.194   206.818   178.983
Logistics                             28.338    33.956   134.365   112.918
Corporate and others                   3.245     0.618    13.789     2.860
                                    --------  --------  --------  --------
Revenue from freight and services     89.168    84.411   363.004   303.256
                                    --------  --------  --------  --------

Ports                                 (1.155)   (2.039)   (5.609)   (6.354)
Maritime                             (38.716)  (33.040) (144.832) (120.723)
Logistics                            (33.857)  (34.535) (143.148) (114.020)
Corporate and others                  (3.521)    0.407   (14.498)   (2.000)
                                    --------  --------  --------  --------
Cost of freight and services         (77.249)  (69.207) (308.087) (243.097)
                                    --------  --------  --------  --------

Ports                                 (0.165)   (0.189)   (0.810)   (0.760)
Maritime                              (6.657)   (3.680)  (18.939)  (14.202)
Logistics                             (0.191)   (1.406)   (3.492)   (3.034)
Corporate and others                  (0.003)   (0.005)   (0.016)   (0.016)
                                    --------  --------  --------  --------
Depreciation of vessels and
 equipment                            (7.016)   (5.280)  (23.257)  (18.012)
                                    --------  --------  --------  --------

Corporate expenses                    (4.962)   (4.399)  (19.698)  (18.450)
                                    --------  --------  --------  --------

Ports                                  1.134     0.415     1.613     1.381
Maritime                               9.758    10.474    43.047    44.058
Logistics                             (5.710)   (1.985)  (12.275)   (4.136)
Corporate and others                  (5.241)   (3.379)  (20.423)  (17.606)
Other (expenses) income  - Net        14.453    (6.859)   13.429    (4.356)
                                    --------  --------  --------  --------
Operating income (loss)               14.394    (1.334)   25.391    19.341
                                    ========  ========  ========  ========

Financial (expenses) income - Net    (26.857)  (15.680)  (69.864)  (49.969)
                                    --------  --------  --------  --------
Exchange gain (loss) - Net           123.840    (0.099)  145.503     1.435
                                    --------  --------  --------  --------
Net financial cost                    96.983   (15.779)   75.639   (48.534)
                                    --------  --------  --------  --------

Gain (loss) before taxes             111.377   (17.113)  101.030   (29.193)
                                    ========  ========  ========  ========

(Provision) benefit for taxes        (19.677)    1.420   (19.982)    0.844
                                    --------  --------  --------  --------

Net  Income (loss) before
 discontinuing operations             91.700   (15.693)   81.048   (28.349)
                                    ========  ========  ========  ========
Loss from disposal discontinuing
 business                                                          (38.563)
                                    --------  --------  --------  --------
Net income (loss) for the period      91.700   (15.693)   81.048   (66.912)
                                    --------  --------  --------  --------

Attributable to:
 Minority interest                     0.006     0.087     0.488     0.160
                                    --------  --------  --------  --------
Equity holders of GTMM, S.A.B.        91.694   (15.780)   80.560   (67.072)
                                    --------  --------  --------  --------

Weighted average outstanding shares
 (millions)                           55.227    56.959    56.189    56.962
Income (loss) earnings per share
 (dollars / share)                      1.66     (0.28)     1.43     (1.18)
Outstanding shares at end of period
 (millions)                           55.227    56.933    55.227    56.933
Income (loss) earnings per share
 (dollars / share)                      1.66     (0.28)     1.46     (1.18)
                                    --------  --------  --------  --------

*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      Year ended
                                       December 31,        December 31,
                                    ------------------  ------------------
                                      2008      2007      2008      2007
                                    --------  --------  --------  --------

Cash flow from operation
 activities:
Net  Income (loss) before
 discontinuing operations             91.700   (15.693)   81.048   (28.349)
                                    --------  --------  --------  --------

Charges (credits) to income not
 affecting resources:
      Depreciation & amortization      9.354     8.649    35.263    28.743
                                    --------  --------  --------  --------
      Deferred income taxes           18.768    (2.985)   18.768    (2.985)
                                    --------  --------  --------  --------
      Other non-cash items          (105.099)   (0.455)  (72.584)   37.387
                                    --------  --------  --------  --------
   Total non-cash items              (76.977)    5.209   (18.553)   63.145
                                    --------  --------  --------  --------
      Changes in assets &
       liabilities                    27.575   (25.868)  (31.846)  (33.268)
                                    --------  --------  --------  --------
   Total adjustments                 (49.402)  (20.659)  (50.399)   29.877
                                    --------  --------  --------  --------

   Net cash provided by (used in)
    operating activities              42.298   (36.352)   30.649     1.528
                                    ========  ========  ========  ========

Cash flow from investing
 activities:
   Proceeds from sales of assets       1.096     0.189     2.104     7.186
                                    --------  --------  --------  --------
   Payments for purchases of assets  (93.916)   (3.999) (392.053)  (97.861)
                                    --------  --------  --------  --------
   Sale of share of subsidiaries      15.258     3.254    15.258     3.254
                                    --------  --------  --------  --------
   Paid to minority partners                    (0.490)    1.001    (2.745)
                                    --------  --------  --------  --------
   Common stock decrease of
    subsidiaries                                11.074    (0.490)   11.074
                                    --------  --------  --------  --------

   Net cash (used in) provided by
    investment activities            (77.562)   10.028  (374.180)  (79.092)
                                    ========  ========  ========  ========

   Proceeds from discontinued
    business                                    54.137              54.137
                                    --------  --------  --------  --------

Cash flow provided by financing
 activities:
   Short-term borrowings (net)         0.336    (0.908)    0.585    (0.474)
                                    --------  --------  --------  --------
   Sale (repurchase) of accounts
    receivable (net)                  (7.233)  (58.195)  (29.010)  (88.334)
                                    --------  --------  --------  --------
   Repayment of long-term debt       (37.904)  (13.988)  (94.152) (193.502)
                                    --------  --------  --------  --------
   Proceeds from issuance of
    long-term debt                     4.037             632.852   319.377
                                    --------  --------  --------  --------
   Acquisition of treasury shares,
    net                               (0.023)   (0.071)   (2.231)   (0.071)
                                    --------  --------  --------  --------

   Net cash (used in) provided by
    financing activities             (40.787)  (73.162)  508.044    36.996
                                    ========  ========  ========  ========

   Exchange losses on cash           (37.245)            (48.303)
                                    --------  --------  --------  --------
   Net (decrease) increase in cash  (113.296)  (45.349)  116.210    13.569
                                    --------  --------  --------  --------
   Cash at beginning of period       281.741    97.584    52.235    38.666
                                    --------  --------  --------  --------
   Cash at end of period             168.445    52.235   168.445    52.235
                                    --------  --------  --------  --------

*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