SOURCE: Grupo TMM

Grupo TMM

February 25, 2010 10:41 ET

Grupo TMM Reports Fourth-Quarter and Full-Year 2009 Financial Results

MEXICO CITY--(Marketwire - February 25, 2010) - Grupo TMM, S.A.B. (NYSE: TMM) (BMV: TMM A)

-- Consolidated operating profit up 32.6% for quarter and 33.7%
   in full year
-- Maritime operating profit up 74.7% for quarter and 34.0% in full year
-- Corporate expenses down 24.5% for quarter and 23.6% in full year
-- EBITDA up 22.2% for quarter and 32.4% in full year

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 full year of 2009.

MANAGEMENT OVERVIEW

José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "The fourth quarter of 2009 was our strongest of the year, both operationally and financially. The Maritime division's performance in the fourth quarter met our expectations, as the new vessels we acquired throughout 2009 contributed to the division's operating profit. Additionally, we completed the restructuring of our receivables securitization, which reduced the Company's debt.

"Although consolidated revenue decreased in the fourth-quarter and full-year periods of 2009 compared to the same periods of 2008, consolidated operating profit in the fourth quarter improved 32.6 percent, and in the 2009 full year improved 33.7 percent, compared to the same periods of 2008. The considerable improvement in operating profit in both periods was mainly due to lower costs and expenses, as well as a 74.7 percent increase in the Maritime division's operating profit in the 2009 fourth quarter over last year. Additionally, the Maritime division improved its EBITDA by 43.8 percent in the 2009 fourth quarter, and by 34.8 percent in the 2009 full year to $89.9 million. We anticipate this upward trend will continue."

Serrano concluded, "The fourth quarter of 2009 was a pivotal period for TMM. We completed the acquisition of thirteen vessels, which contributed to significant improvement in the Maritime division's results, thereby also significantly improving our consolidated results for the quarter and for all of 2009. We also completed the restructuring of our securitization facility, which improved our debt profile and will reduce our cash requirements going forward. Most importantly, our EBITDA exceeded our financial expenses, and TMM became free cash flow positive, which will consistently allow the Company to reduce debt. We remain focused on profitable operations and appropriately deploying our capital to optimize long-term value for our shareholders."

FOURTH-QUARTER AND FULL-YEAR 2009 FINANCIAL RESULTS

Consolidated revenues decreased 11.2 percent in the 2009 fourth quarter and 15.1 percent in the 2009 full year compared to the same periods of last year. Notwithstanding these revenue decreases, consolidated operating profit in the 2009 fourth quarter improved 32.6 percent to $11.8 million compared to $8.9 million in the same period of last year, and improved 33.7 percent to $26.6 million in 2009 compared to $19.9 million in 2008. These increases were mainly due to lower costs and expenses and to an increase in the Maritime division's operating profit in the 2009 fourth quarter compared to the 2008 period, attributable to improvements at all business segments except for product tankers, which lost $0.4 million in the fourth quarter.

In the 2009 fourth quarter, corporate expenses decreased 24.5 percent, or $1.2 million, and in 2009, decreased 23.6 percent, or $4.6 million, both compared to the same respective periods of last year. The ratio of corporate expenses to total revenue declined to 4.7 percent in the 2009 fourth quarter and to 4.8 percent in the 2009 full year.

Consolidated EBITDA in the 2009 fourth quarter increased 22.2 percent, or $4.1 million, to $22.6 million compared to $18.5 million in the same period last year. Year-over-year EBITDA improved 32.4 percent, or $17.4 million, to $71.1 million in 2009 compared to $53.7 million in 2008.

At Maritime, fourth-quarter 2009 revenues fell 12.3 percent compared to the fourth quarter of 2008, mainly due to lower revenues in the product tanker segment, partially offset by revenue increases at offshore, chemical tankers and harbor tugs. For 2009, Maritime revenues decreased 3.5 percent, or $7.2 million, due to reductions in every segment except for offshore. These reductions were mainly attributable to the redelivery of time-charter product tanker vessels during the second and third quarters, lower demand for chemical tankers and reduced vessel calls at Manzanillo, which impacted the harbor towage segment.

Maritime operating profit and margins significantly improved in both 2009 periods compared to the previous year. In the 2009 fourth quarter, operating profit increased 74.7 percent, or $6.2 million, and in the full year of 2009 increased 34.0 percent, or $13.6 million, mainly as a result of having four additional offshore vessels in operation. Maritime's EBITDA increased 43.8 percent in the 2009 fourth quarter to $24.3 million and grew 34.8 percent to $89.9 million in the 2009 full year.

In the 2009 fourth quarter, Ports and Terminal revenue and operating profit increased 14.4 percent and 39.8 percent respectively, mainly due to increased revenues at the cruise ship segment at Acapulco, and to increased volumes at shipping agencies and at the maintenance and repair business segment. For the full year of 2009, revenue fell 26.7 percent, or $13.8 million, and operating profit fell 2.2 percent over 2008. These reductions were mainly due to lower revenues at Acapulco as a result of decreased automobile exports to South America and Japan, and to the cancellation of cruise ship calls throughout the year, due to the swine flu outbreak in May. These decreases were partially offset by improved container volumes at the maintenance and repair segment in 2009 over 2008.

Logistic division revenues reflected losses in the 2009 fourth quarter and in the 2009 full year. However, the trucking segment reflected improved profit in the fourth quarter as a result of higher volumes due to the seasonality.

MANAGEMENT CHANGES

As previously announced, TMM's former president resigned his position to pursue other endeavors. The Company's board of directors ratified José F. Serrano in his roles as chairman of the board and chief executive officer of TMM. Additionally, Jacinto Marina, previously chief financial officer, was appointed deputy chief executive officer (Director General Adjunto), and Carlos Aguilar, previously corporate administrative director, will serve as administrative and finance director. Mr. Marina will continue to work closely with Mr. Aguilar in all financing related transactions. Finally, Luis Ocejo was ratified as head of the Maritime division, and Roberto Martinez was appointed head of the Ports and Terminals division.

Mr. Marina has served in several executive positions with TMM since 1991, including most recently chief financial officer. He has a degree in Economics from the Instituto Tecnológico Autónomo de México.

Mr. Aguilar has served in various executive positions at companies owned by TMM since 1991, including corporate administrative director at TMM for the last two years. Mr. Aguilar has a degree in Accounting from the Universidad Nacional Autónoma de México.

Mr. Martínez has a degree in Urban Development from the Universidad Autónoma Metropolitana and a PhD in Regional Economics from the University of Pennsylvania. He specializes in strategic planning, process reengineering, and investment project coordination.

RECLASSIFICATION OF BUSINESS SEGMENTS

The financial information provided in the tables at the end of this release reflects new organizational responsibilities. Additionally, the income statement reflects depreciation and amortization as one item, whereas in previous reports, amortization was included in cost. Management believes the reclassification of business segments and the inclusion of amortization and depreciation as one item are important indicators of the Company's performance and provide management with a consistent measurement tool for evaluating the operating activities of the Company from period to period.

CONFERENCE CALL

TMM's management will host a conference call and Webcast to review financial and operational highlights on Friday, February 26 at 11:00 a.m. Eastern time. To participate in the conference call, please dial (877) 723-9509 (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=66233.

A replay of the conference call will be available through April 1 at 11:59 p.m. Eastern time, by dialing (888) 203-1112 or (719) 457-0820, and entering passcode 7854987. On the Internet a replay will be available for 30 days at http://www.visualwebcaster.com/event.asp?id=66233.

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 -

                                                  December 31, December 31,
                                                      2009         2008
                                                  -----------  -----------

Current assets:
Cash and cash equivalents                              84.241      168.447
                                                  -----------  -----------
Accounts receivable
  Accounts receivable - Net                            47.580       56.548
                                                  -----------  -----------
  Other accounts receivable                            32.799       23.750
                                                  -----------  -----------
  Prepaid expenses and others current assets            9.934       11.653
                                                  -----------  -----------
Total current assets                                  174.554      260.398
                                                  ===========  ===========
Property, machinery and equipment                     824.200      806.911
                                                  -----------  -----------
Cumulative Depreciation                              (145.482)    (124.396)
                                                  -----------  -----------
Property, machinery and equipment - Net               678.718      682.515
                                                  ===========  ===========
Other assets                                           54.853       47.821
                                                  -----------  -----------
Deferred taxes                                         97.274       97.276
                                                  -----------  -----------
Total assets                                        1,005.399    1,088.010
                                                  -----------  -----------
Current liabilities:
Bank loans and current maturities of long-term
 liabilities                                           14.800       21.063
                                                  -----------  -----------
Sale of accounts receivable                             7.869       14.976
                                                  -----------  -----------
Suppliers                                              28.156       33.039
                                                  -----------  -----------
Other accounts payable and accrued expenses            46.114       38.827
                                                  -----------  -----------
    Total current liabilities                          96.939      107.905
                                                  ===========  ===========
Long-term liabilities:
  Bank loans                                           72.171       64.795
                                                  -----------  -----------
  Trust certificates debt                             677.520      615.609
                                                  -----------  -----------
  Sale of accounts receivable                          12.047      101.035
                                                  -----------  -----------
  Other long-term liabilities                          26.131       27.483
                                                  -----------  -----------
Total long-term liabilities                           787.869      808.922
                                                  ===========  ===========
Total liabilities                                     884.808      916.827
                                                  -----------  -----------

Stockholders' equity
  Common stock                                        155.240      114.058
                                                  -----------  -----------
  Retained earnings                                   (12.177)      82.117
                                                  -----------  -----------
  Initial accumulated translation loss                (17.757)     (17.757)
                                                  -----------  -----------
   Cumulative translation adjusted                    (11.976)     (13.312)
                                                  -----------  -----------
                                                      113.330      165.106
                                                  -----------  -----------
   Minority interest                                    7.261        6.077
                                                  -----------  -----------
Total stockholders' equity                            120.591      171.183
                                                  -----------  -----------

Total liabilities and stockholders' equity          1,005.399    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 Income*
                         - millions of dollars -

                                    Three months ended      Year ended
                                       December 31,        December 31,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------

  Ports and Terminals                 13.547    11.843    37.901    51.665
  Maritime                            48.338    55.131   199.646   206.818
  Logistics                           17.362    22.273    71.106   104.893
  Eliminations                        (0.119)   (0.129)   (0.417)   (0.421)
                                    --------  --------  --------  --------
Revenue from freight and services     79.128    89.118   308.236   362.955
                                    --------  --------  --------  --------

  Ports and Terminals                (10.639)   (9.413)  (33.119)  (46.101)
  Maritime                           (24.076)  (38.264) (109.769) (140.086)
  Logistics                          (18.081)  (28.384)  (79.273) (114.752)
  Eliminations                         0.119     0.129     0.417     0.421
                                    --------  --------  --------  --------
Cost of freight and services         (52.677)  (75.932) (221.744) (300.518)
                                    --------  --------  --------  --------

  Ports and Terminals                 (0.421)   (0.652)   (1.580)   (2.289)
  Maritime                            (9.742)   (8.583)  (36.298)  (26.704)
  Logistics                           (0.681)   (0.347)   (6.675)   (4.796)
                                    --------  --------  --------  --------
Depreciation and amortization        (10.844)   (9.582)  (44.553)  (33.789)
                                    --------  --------  --------  --------

  Corporate expenses                  (3.652)   (4.904)  (14.857)  (19.472)
  Ports and Terminals                  2.487     1.778     3.202     3.275
  Maritime                            14.520     8.284    53.579    40.028
  Logistics                           (1.400)   (6.458)  (14.842)  (14.655)
  Other (expenses) income - Net       (0.194)   10.195    (0.483)   10.716
                                    --------  --------  --------  --------
Operating Income                      11.761     8.895    26.599    19.892
                                    ========  ========  ========  ========
Financial (expenses) income - Net    (19.743)  (26.856)  (87.601)  (69.863)
Exchange gain (loss) - Net           (23.285)  123.841   (30.719)  145.504
                                    --------  --------  --------  --------
Net financial cost                   (43.028)   96.985  (118.320)   75.641
                                    --------  --------  --------  --------
Gain (loss) before taxes             (31.267)  105.880   (91.721)   95.533
                                    ========  ========  ========  ========
(Provision) benefit for taxes         (1.033)  (19.788)   (1.680)  (20.093)
                                    --------  --------  --------  --------
Net income (loss) for the period     (32.300)   86.092   (93.401)   75.440
                                    --------  --------  --------  --------

Attributable to:
  Minority interest                    0.799     0.025     1.380     0.507
                                    --------  --------  --------  --------
Equity holders of GTMM, S.A.B.       (33.099)   86.067   (94.781)   74.933
                                    --------  --------  --------  --------

Weighted average outstanding shares
 (millions)                           61.840    55.227    56.894    56.189
Income (loss) earnings per share
 (dollars / share)                    (0.535)    1.558    (1.666)    1.334

Outstanding shares at end of period
 (millions)                          102.024    55.227   102.024    55.227
Income (loss) earnings per share
 (dollars / share)                    (0.324)    1.558    (0.929)    1.357
                                    --------  --------  --------  --------

*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
                                       December 31,        December 31,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------

Cash flow from operation
 activities:
Net (loss) Income before
 discontinuing operations            (32.300)   86.092   (93.401)   75.440
                                    --------  --------  --------  --------
Charges (credits) to income not
 affecting resources:
    Depreciation & amortization       12.948    14.295    51.489    40.095
                                    --------  --------  --------  --------
    Deferred income taxes                       18.542              18.542
                                    --------  --------  --------  --------
    Other non-cash items              37.487  (105.099)  108.523   (72.584)
                                    --------  --------  --------  --------
  Total non-cash items                50.435   (72.262)  160.012   (13.947)
                                    --------  --------  --------  --------
    Changes in assets & liabilities    3.908    30.845   (19.158)  (28.467)
                                    --------  --------  --------  --------
  Total adjustments                   54.343   (41.417)  140.854   (42.414)
                                    --------  --------  --------  --------
  Net cash provided by operating
   activities                         22.043    44.675    47.453    33.026
                                    ========  ========  ========  ========

Cash flow from investing
 activities:
  Proceeds from sales of assets        3.949     1.096    15.784     2.104
                                    --------  --------  --------  --------
  Payments for purchases of assets    (7.404)  (96.291)  (60.941) (394.428)
                                    --------  --------  --------  --------
  Sale of share of subsidiaries                 15.258              15.258
                                    --------  --------  --------  --------
  Common stock  decrease of
   subsidiaries                                           (0.202)   (0.490)
                                    --------  --------  --------  --------
  Dividends from non-consolidated
   subsidiaries                                            0.643     1.001
                                    --------  --------  --------  --------
  Net cash used in investment
   activities                         (3.455)  (79.937)  (44.716) (376.555)
                                    ========  ========  ========  ========

Cash flow provided by financing
 activities:
  Short-term borrowings (net)                    0.336    (0.939)    0.585
                                    --------  --------  --------  --------
  Sale (repurchase) of accounts
   receivable (net)                  (34.721)   (7.233)  (56.388)  (29.010)
                                    --------  --------  --------  --------
  Repayment of long-term debt        (15.252)  (37.904)  (55.742)  (94.152)
                                    --------  --------  --------  --------
  Proceeds from issuance of
   long-term debt                     12.241     4.037    21.073   632.852
                                    --------  --------  --------  --------
  Acquisition of treasury shares,
   net                                          (0.023)             (2.231)
                                    --------  --------  --------  --------
  Net cash (used in) provided by
   financing activities              (37.732)  (40.787)  (91.996)  508.044
                                    ========  ========  ========  ========
  Exchange losses on cash              3.615   (37.245)    5.053   (48.303)
                                    ========  ========  ========  ========
  Net (decrease) increase in cash    (15.529) (113.294)  (84.206)  116.212
                                    --------  --------  --------  --------
  Cash at beginning of period         99.770   281.741   168.447    52.235
                                    --------  --------  --------  --------
  Cash at end of period               84.241   168.447    84.241   168.447
                                    --------  --------  --------  --------

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

Contact Information

  • TMM COMPANY CONTACT:
    Jacinto Marina
    Deputy CEO
    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