SOURCE: Grupo TMM

Grupo TMM

July 26, 2012 16:15 ET

Grupo TMM Reports Second-Quarter 2012 Financial Results

MEXICO CITY--(Marketwire - Jul 26, 2012) - Grupo TMM, S.A.B. (OTC: GTMAY) (BMV: TMM A) ("TMM" or the "Company"), a Mexican intermodal transportation and logistics Company, reported today its financial results for the second quarter of 2012.

MANAGEMENT OVERVIEW
José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "In the 2012 second quarter, consolidated revenue decreased compared to the 2011 period, driven mainly by lower tariffs and lower utilization at the product tanker segment, reduced operations at Acapulco and the volatility of the peso versus the dollar, all of which is more difficult to overcome in a contracted revenue environment.

"However, 2012 second-quarter and first six-month utilization at the offshore segment was 88.5 percent and 90.4 percent, respectively. In the first six months of 2012, we renewed six contracts for three-year terms each, and in July we renewed two contracts for two-year terms each, all of which will improve our Maritime division results going forward. To date, the Maritime division's backlog is $167.6 million."

Serrano concluded, "We believe we are close to reaching an agreement for the financial implementation of the development of a container and liquids terminal at the Port of Tuxpan. Once completed, this terminal will strategically position TMM in this lucrative sector. Additionally, we continue to work to expand the Company's revenue and profit base through the addition of specialized offshore vessels to TMM's fleet."

SECOND-QUARTER AND FIRST-HALF 2012 OPERATING AND FINANCIAL RESULTS
Compared to the same periods of last year, consolidated revenue in the 2012 second quarter and first six months decreased 12.8 percent and 8.7 percent, respectively.

Second-quarter and first six-month 2012 consolidated operating profit was $1.7 million and $6.0 million, respectively. Operating profit in the 2011 second quarter included other income net of $6.4 million, which was mainly attributable to the recovery of certain tax incentives. Excluding this one-time event, operating profit decreased $2.6 million in the second quarter of 2012 and decreased $3.7 million in the first six months of 2012, compared to the same periods of last year.

Consolidated EBITDA decreased 41.8 percent to $14.2 million in the 2012 second quarter compared to $24.4 million in the 2011 second quarter and decreased 26.6 percent to $31.4 million in the 2012 first six months compared to $42.8 million in the 2011 first six months.

Maritime revenue decreased 8.5 percent and 2.3 percent in the 2012 second quarter and first six months, respectively, compared to the same periods of last year, mainly driven by revenue losses at product tankers due to increased offhire days, as well as by lower average daily tariffs compared to the same periods of 2011. These losses were partially offset by $1.8 million of revenue from the Company's shipyard at Tampico recorded in the first six months of 2012.

Comparing the first six months of 2012 with the same period of 2011, offshore revenue increased 0.4 percent to $50.3 million, due mainly to increased revenue days; product tanker revenue decreased 16.8 percent to $13.9 million, attributable mainly to increased offhire days and lower average tariffs, as mentioned above; chemical tanker revenue decreased 18.4 percent to $8.0 million as a result of lower volumes; and harbor tugs revenue increased 7.5 percent to $7.2 million mainly due to higher tariffs per ship call and to the addition of tug services to a new Liquefied Natural Gas, or LNG, terminal at Manzanillo in March.

Maritime operating profit decreased 20.6 percent and 12.7 percent in the 2012 second quarter and first six months, respectively, compared to the same periods of last year, due mainly to operating losses at product tankers as a result of two vessels that were unemployed for the larger part of this year's first quarter and one unemployed vessel in the second quarter, which increased operating costs.

Maritime profit reductions were partially offset by improvements at chemical tankers in both reported periods compared to last year, as this business segment recorded $0.9 million of gross profit in the first six months of 2012 compared to a gross loss of $0.3 million in the first six months of 2011. Additionally, the Company's shipyard contributed $0.5 million of profit in the first six months of 2012.

Maritime's EBITDA for the first six months of 2012 fell 7.7 percent, or $3.1 million, to $37.0 million compared to $40.1 million in first six months of 2011.

Ports and Terminals revenue decreased 11.8 percent and 13.7 percent in the 2012 second quarter and first six months, respectively, compared to the same periods of last year, driven mainly by a dramatic reduction of ship calls at Acapulco due to safety issues at this port, which accounted for a $1.3 million revenue loss in the 2012 six-month period, as well as by lower volumes at shipping agencies, partially offset by improved revenue at the automotive segment due to higher volumes at Puebla and Saltillo.

Ports and Terminals operating profit decreased 30.8 percent and 51.5 percent in the 2012 second quarter and first six months, respectively, compared to the same periods of last year, driven by a $1.4 million gross profit reduction at Acapulco. This decrease was partially offset by a 16.7 percent gross profit improvement at the maintenance and repair segment in the first six months of 2012, over the 2011 period.

Logistics revenue decreased 23.4 percent and 2.6 percent in the second quarter and first six months of 2012, respectively, compared to last year. Operating losses in the 2012 reported periods were partially offset by profit improvements at trucking due to cost efficiencies.

DEBT
As of June 30, 2012, TMM's total debt was $784.5 million. The book value of the Company's Trust Certificates debt increased $30.0 million from December 31, 2011, as a result of a 3.9 percent appreciation of the peso against the dollar in the first six months of 2012. On February 15, 2012, the Company paid approximately $30.4 million of its Trust Certificates debt, including a capital prepayment of $1.2 million.

 
Total Debt*
Million of U.S. Dollars
 
    As of 12/31/11   As of 6/30/12
Mexican Trust Certificates (1)   $ 684.3   $ 716.9
Other Corporate Debt     68.2     67.6
Total Debt (2)   $ 752.5   $ 784.5
Cash     77.1     70.1
Net Debt   $ 675.4   $ 714.4
             

*Book Value
(1) 20-year term, non recourse to the Company and rated "AA" by HR Ratings de México
(2) Of total debt, only $20.3 million, or 2.6 percent, is short term
Exchange Rate: 13.95 pesos/dollar at December 31, 2012, and 13.41 pesos/dollar at June 30, 2012

Included in this press release are certain forward-looking statements within the meaning of Section27A 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 10-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 -  
   
    June 30,     December 31,  
    2012     2011  
             
Current assets:            
Cash and cash equivalents   70.057     77.123  
Accounts receivable            
  Accounts receivable - Net   40.382     38.963  
  Other accounts receivable   17.073     17.556  
  Prepaid expenses and others current assets   12.449     11.568  
Total current assets   139.961     145.210  
Property, machinery and equipment   923.906     914.809  
Cumulative Depreciation   (220.791 )   (203.985 )
Property, machinery and equipment - Net   703.115     710.824  
Other assets   34.468     28.447  
Deferred taxes   67.599     67.583  
Total assets   945.143     952.064  
             
Current liabilities:            
  Bank loans and current maturities of long-term liabilities   20.277     17.190  
  Suppliers   23.013     21.475  
  Other accounts payable and accrued expenses   65.845     53.848  
Total current liabilities   109.135     92.513  
Long-term liabilities:            
  Bank loans   55.804     59.378  
  Trust certificates debt   708.369     675.933  
  Other long-term liabilities   18.288     15.828  
             
Total long-term liabilities   782.461     751.139  
Total liabilities   891.596     843.652  
             
Stockholders´ equity            
  Common stock   155.577     155.577  
  Retained earnings   (134.463 )   (75.096 )
  Revaluation surplus   63.907     63.907  
  Initial accumulated translation loss   (17.757 )   (17.757 )
  Cumulative translation adjusted   (17.571 )   (22.111 )
      49.693     104.520  
  Minority interest   3.854     3.892  
Total stockholders´ equity   53.547     108.412  
             
Total liabilities and stockholders´ equity   945.143     952.064  
             

*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     Six months ended  
    June 30,     June 30,  
    2012     2011     2012     2011  
                         
  Ports and Terminals   6.053     6.835     12.048     13.949  
  Maritime   39.934     43.568     81.284     83.225  
  Logistics   14.669     19.234     30.485     38.389  
Revenue from freight and services   60.656     69.637     123.817     135.563  
                         
  Ports and Terminals   (4.864 )   (5.178 )   (9.841 )   (10.007 )
  Maritime   (21.505 )   (22.468 )   (44.262 )   (43.078 )
  Logistics   (16.464 )   (19.661 )   (32.453 )   (38.396 )
Cost of freight and services   (42.833 )   (47.307 )   (86.556 )   (91.481 )
                         
  Ports and Terminals   (0.293 )   (0.303 )   (0.558 )   (0.616 )
  Maritime   (9.890 )   (10.424 )   (19.846 )   (20.443 )
  Logistics   (2.145 )   (2.699 )   (4.555 )   (5.257 )
  Corporate and others   (0.228 )   (0.211 )   (0.453 )   (0.396 )
Depreciation and amortization   (12.556 )   (13.637 )   (25.412 )   (26.712 )
                         
  Corporate expenses   (3.632 )   (4.348 )   (7.499 )   (8.477 )
  Ports and Terminals   0.896     1.354     1.649     3.326  
  Maritime   8.539     10.676     17.176     19.704  
  Logistics   (3.940 )   (3.126 )   (6.523 )   (5.264 )
  Corporate and others   (0.228 )   (0.211 )   (0.453 )   (0.396 )
  Other (expenses) income - Net   0.043     6.385     1.687     7.170  
Operating Income   1.678     10.730     6.037     16.063  
Financial (expenses) income - Net   (16.668 )   (27.797 )   (35.132 )   (43.196 )
Exchange gain (loss) - Net   36.475     (10.313 )   (29.919 )   (41.674 )
Net financial cost   19.807     (38.110 )   (65.051 )   (84.870 )
Gain (loss) before taxes   21.485     (27.380 )   (59.014 )   (68.807 )
Provision for taxes   (0.235 )   (2.382 )   (0.389 )   (2.821 )
                         
Net gain (loss) for the period   21.250     (29.762 )   (59.403 )   (71.628 )
                         
Attributable to:                        
  Minority interest   (0.209 )   0.365     (0.036 )   0.827  
Equity holders of GTMM, S.A.B.   21.459     (30.127 )   (59.367 )   (72.455 )
                         
Weighted average outstanding shares (millions)   102.183     102.183     102.183     102.169  
Income (loss) earnings per share (dollars / share)   0.21     (0.29 )   (0.58 )   (0.71 )
                         
Outstanding shares at end of period (millions)   102.183     102.183     102.183     102.183  
Income (loss) earnings per share (dollars / share)   0.21     (0.29 )   (0.58 )   (0.71 )
                         

*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     Six months ended  
    June 30,     June 30,  
    2012     2011     2012     2011  
                         
Cash flow from operation activities:                        
Net gain (loss) for the period   21.250     (29.762 )   (59.403 )   (71.628 )
Charges (credits) to income not affecting resources:                        
  Depreciation & amortization   14.052     16.030     28.414     32.043  
  Other non-cash items   (18.167 )   29.336     63.073     77.050  
Total non-cash items   (4.115 )   45.366     91.487     109.093  
  Changes in assets & liabilities   (2.475 )   (0.968 )   (2.260 )   (20.401 )
Total adjustments   (6.590 )   44.398     89.227     88.692  
Net cash provided by operating activities   14.660     14.636     29.824     17.064  
                         
Cash flow from investing activities:                        
  Proceeds from sales of assets   1.379     0.462     1.513     2.808  
  Payments for purchases of assets   (0.606 )   (3.018 )   (1.622 )   (5.525 )
  (Acquisition) sale of share of subsidiaries   0.192           (4.175 )      
Net cash providad by (used in) investment activities   0.965     (2.556 )   (4.284 )   (2.717 )
                         
Cash flow provided by financing activities:                        
  Short-term borrowings (net)   (0.502 )         0.356        
  Sale (repurchase) of accounts receivable (net)         (9.119 )         (11.559 )
  Repayment of long-term debt   (3.649 )   (12.039 )   (39.683 )   (62.560 )
  Proceeds from issuance of long-term debt   2.389     4.600     2.839     4.600  
Net cash used in financing activities   (1.762 )   (16.558 )   (36.488 )   (69.519 )
Exchange losses on cash   (1.783 )   0.712     3.882     3.989  
  Net (decrease) increase in cash   12.080     (3.766 )   (7.066 )   (51.183 )
  Cash at beginning of period   57.977     94.902     77.123     142.319  
  Cash at end of period   70.057     91.136     70.057     91.136  
                         

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

Contact Information

  • TMM COMPANY CONTACT:
    Jacinto Marina
    Deputy CE
    011-525-55-629-8718
    Email Contact

    Monica Azar
    Investor Relations
    011-525-55-629-8703
    Email Contact

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