MEXICO CITY, MEXICO--(Marketwired - Aug 12, 2016) - Grupo TMM, S.A.B. (
Notwithstanding the Unprecedented Reduction in the Operations of Our Principal Customers, 2016 Second-Quarter Results Include:
- Income of $662.6 million.
- Consolidated EBITDA of $205.4 million.
- Maritime fleet utilization of 72 percent in offshore segment and 99 percent in product tankers and chemical tankers.
- Successful implementation of supply chain financing with NAFIN.
- $378.5 million payment of Company's Trust Certificates, including $70.0 million of principal.
Grupo TMM, S.A.B. (
MANAGEMENT OVERVIEW
José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "The drop in oil prices generated an unprecedented reduction in the demand for oil services around the world, as well as in all offshore vessels in México."
The Company implemented a strategic plan aiming to offset the impact of the aforementioned events, the most relevant actions include:
- Diversify sources of income and customers. The Company has made significant progress diversifying its customer's base in the product tankers, harbor tug vessels and the shipyard segments, business lines that registered positive results. In addition in Ports and Terminal Division, Grupo TMM recently announced a strategic alliance with TransCanada and Sierra Oil & Gas to jointly develop storage and transportation infrastructure to serve the growing demand for refined products in the central region of Mexico.
- Strategic reduction of Costs and SG&A expenses to partially offset the impact of afore mentioned events on the Company's EBITDA.
- Started operations with NAFIN (the supplier's chain program) to reduce liquidity risk and reduce the effect of the new payment policies of the Company's principal customers.
- Significant progress in its capitalization process.
These actions will be gradual and will most likely have a positive impact in our results in the following quarters.
SECOND-QUARTER AND FIRST-HALF 2016 OPERATING AND FINANCIAL RESULTS
Compared to the same period last year, consolidated revenues in the 2016 second quarter and first six months decreased 20.8 percent and 3.2 percent respectively, mainly due to lower revenues in the Maritime segment as the result of reduced demand by the Company's principal customers.
Consolidated operating income in the 2016 second quarter decreased 49.4 percent to $38.8 million compared to 76.5 million in the same period last year, mainly due to reduced revenue in Maritime segment, partially offset by a benefit of $111.4 million in proceeds from the sale of a strategic asset to a company related to Grupo TMM and directly linked to the development of a hydrocarbon storage terminal in Tuxpan. In the first six months of 2016 consolidated operating income decreased year over year 1.1 percent to $174.5 million compared to $176.4 million for the same period of 2015.
In the 2016 second quarter, non-recurrent operations reported $108.4 million income, due mainly to proceeds from the sale of the asset discussed above, compared to $5.3 million expenses in the same period 2015. In the first six months of 2016 non-recurrent operations was $109.5 million income compared to $10.9 million income in the same period last year.
Second-quarter 2016 consolidated EBITDA was $205.4 million compared to $257.5 million in the second quarter last year. In the 2016 six-month period, consolidated EBITDA was $498.5 million compared to $514.7 million for the same period of 2015.
Year over year, second-quarter free cash flow was $21.7 million in the 2016 period compared to $75.2 million in the 2015 period, and in the first six months was $140.8 million in the 2016 period compared to $158.6 million in the 2015 period.
Compared to the same period last year, Maritime revenues decreased 23.9 percent in the 2016 second quarter due mainly to decreased revenues in the offshore segment of 46.6 percent attributable to 59 percent utilization of vessels due to reduced demand of the Company's principal costumers, as well as an 11.2 percent reduction in revenues in product tankers, partially offset by higher revenues in chemical tankers of 46.4 percent attributable to the addition of a third vessel in May, an increase in harbor tugs vessel revenues of 31.7 percent due mainly to increased calls at the port of Manzanillo and LNG terminal, and an increase in shipyard revenues of 19.3 percent due to the type of work performed.
Maritime revenues decreased 4.7 percent during the first six-month of 2016 compared to the same period last year, mainly due to lower offshore segment revenues of 19.9 percent and utilization of 72 percent, partially offset by an increase in product tankers revenues of 20.5 percent due to utilization of 99 percent, an increase in chemical tankers revenues of 31.3 percent, an increase in revenues of harbor tug vessels of 17.3 percent and improved shipyard revenues of 15.9 percent.
Second-quarter Maritime operating profit decreased from $148.1 million in 2015 to a loss of $10.6 million in 2016, mainly attributable to lower utilization of vessels in the offshore segment and considering that the strategic cost reductions will be shown in the coming months, partially offset by improved results in the product tankers, harbor tugs vessel and shipyard segments. During the first six months of 2016 Maritime operating profit decreased from $276.0 million in 2015 to $173.4 million in 2016, mainly due to lower utilization in the offshore segment, partially offset by improved results in product tankers, chemical tankers and shipyard segments, as well as a non-recurring charge of $63.6 million in the second quarter of 2015 attributable to the sale of a product tanker, as well as favorable exchange rates.
Second-quarter 2016 Maritime EBITDA decreased 53.3 percent to $151.1 million compared to 323.2 million in the same period of 2015. EBITDA margin was 26.5 percent in the 2016 second quarter. During the first six months of 2016 Maritime EBITDA decreased 19.1 percent to $487.6 million compared to $602.7 million in the same period last year. First-half 2016 Maritime EBITDA margin was 37.1 percent.
Ports and Terminals revenues increased 7.9 percent in the 2016 second quarter compared to the same period last year, primarily attributable to improved agencies revenues, as well as increased revenues in the Maintenance and Repair segment and in the intermodal terminal attributable to favorable exchange rates. During the first six months of 2016, Ports and Terminals revenues increased 11.8 percent compared to the same period last year.
Second-quarter 2016 Ports and Terminals operating profit increased 14.2 percent to $8.2 million compared to $7.2 million in the same period of 2015, mainly due to improved agencies and intermodal terminal revenues attributable to favorable exchange rates, partially offset by reduced results at the port operations in Tuxpan, Tampico and Acapulco. During first six months of 2016 Ports and Terminals operating profit increased 18.4 percent to $22.4 million compared to $19.0 million in the first six months of 2015.
Ports and Terminals EBITDA for the 2016 second quarter increased to $11.3 million, and EBITDA margin was 15.4 percent. During first six months of 2016 Ports and Terminals EBITDA increased to $28.6 million, EBITDA margin was 19.1 percent.
DEBT
As of June 30, 2016, TMM's total net debt was $9,686.8 million. In the second quarter, the Company paid approximately $378.5 million on its Trust Certificates debt, including $70 million of principal. Of TMM's total debt, $673.8 million, or 6.3 percent, is short term.
| Total Debt* | ||||||
| - Millions of Mexican Pesos- | ||||||
| As of 06/30/16 | As of 12/31/15 | |||||
| Mexican Trust Certificates (1) | $ | 9,724.3 | $ | 9,752.6 | ||
| Other Corporate Debt | 888.9 | 927.7 | ||||
| Total Debt | $ | 10,613.2 | $ | 10,680.3 | ||
| Cash | 926.4 | 1,045.4 | ||||
| Net Debt | $ | 9,686.8 | $ | 9,634.9 | ||
| *Book Value(1) 20-year term, non-recourse to the Company and rated "AA" with Stable Outlook by HR Ratings de México. | ||||||
Headquartered in Mexico City, Grupo TMM is a Latin American maritime transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of maritime services port management and logistics. Visit Grupo 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 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 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 Pesos - | |||||||
| June 30, | December 31, | ||||||
| 2016 | 2015 | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | 926.4 | 1,045.4 | |||||
| Accounts receivable | |||||||
| Accounts receivable - Net | 983.0 | 1,048.4 | |||||
| Other accounts receivable | 313.6 | 191.6 | |||||
| Prepaid expenses and others current assets | 174.7 | 124.0 | |||||
| Non-current assets held for sale | 184.2 | 194.2 | |||||
| Total current assets | 2,582.0 | 2,603.6 | |||||
| Property, machinery and equipment | 10,038.8 | 10,056.5 | |||||
| Cumulative Depreciation | (799.7 | ) | (517.8 | ) | |||
| Property, machinery and equipment - Net | 9,239.1 | 9,538.6 | |||||
| Other assets | 259.6 | 273.8 | |||||
| Total assets | 12,080.7 | 12,416.1 | |||||
| Current liabilities: | |||||||
| Bank loans and current maturities of long-term liabilities | 673.8 | 684.7 | |||||
| Suppliers | 258.1 | 279.0 | |||||
| Other accounts payable and accrued expenses | 505.0 | 486.5 | |||||
| Liabilities directly associated with non-current assets held for sale | 56.4 | 107.7 | |||||
| Total current liabilities | 1,493.4 | 1,558.0 | |||||
| Long-term liabilities: | |||||||
| Bank loans | 302.7 | 320.9 | |||||
| Trust certificates debt | 9,636.7 | 9,674.6 | |||||
| Deferred taxes | 218.1 | 219.6 | |||||
| Other long-term liabilities | 218.2 | 211.2 | |||||
| Total long-term liabilities | 10,375.7 | 10,426.3 | |||||
| Total liabilities | 11,869.0 | 11,984.3 | |||||
| Total stockholders´ equity | 211.7 | 431.8 | |||||
| Total liabilities and stockholders´ equity | 12,080.7 | 12,416.1 | |||||
| *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 (Under Discontinuing Operations) | |||||||||||||
| - Millions of Pesos - | |||||||||||||
| Three months ended | Six months ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| Ports and Terminals | 571.1 | 750.3 | 1,313.6 | 1,378.6 | |||||||||
| Maritime | 72.9 | 67.6 | 150.3 | 134.5 | |||||||||
| Corporate and others | 18.5 | 18.5 | 37.0 | 37.0 | |||||||||
| Revenues from freight and services | 662.6 | 836.4 | 1,500.9 | 1,550.1 | |||||||||
| Ports and Terminals | (420.1 | ) | (427.1 | ) | (826.1 | ) | (776.0 | ) | |||||
| Maritime | (61.7 | ) | (56.4 | ) | (121.7 | ) | (107.6 | ) | |||||
| Corporate and others | (18.7 | ) | (18.2 | ) | (36.9 | ) | (36.3 | ) | |||||
| Cost of freight and services | (500.4 | ) | (501.7 | ) | (984.6 | ) | (919.9 | ) | |||||
| Ports and Terminals | (161.7 | ) | (175.0 | ) | (314.1 | ) | (326.7 | ) | |||||
| Maritime | (3.1 | ) | (4.1 | ) | (6.2 | ) | (7.9 | ) | |||||
| Corporate and others | (1.8 | ) | (1.9 | ) | (3.6 | ) | (3.7 | ) | |||||
| Depreciation and amortization | (166.6 | ) | (181.0 | ) | (324.0 | ) | (338.3 | ) | |||||
| Corporate expenses | (65.1 | ) | (72.0 | ) | (127.3 | ) | (126.3 | ) | |||||
| Ports and Terminals | (10.6 | ) | 148.1 | 173.4 | 276.0 | ||||||||
| Maritime | 8.2 | 7.2 | 22.4 | 19.0 | |||||||||
| Corporate and others | (2.0 | ) | (1.6 | ) | (3.6 | ) | (3.1 | ) | |||||
| Other (expenses) income - Net | 108.4 | (5.3 | ) | 109.5 | 10.9 | ||||||||
| Operating Income | 38.7 | 76.5 | 174.5 | 176.4 | |||||||||
| Financial (expenses) income - Net | (204.8 | ) | (205.2 | ) | (398.6 | ) | (398.6 | ) | |||||
| Exchange gain (loss) - Net | 8.2 | 2.1 | 4.2 | 5.2 | |||||||||
| Net financial cost | (196.6 | ) | (203.1 | ) | (394.4 | ) | (393.4 | ) | |||||
| Loss before taxes | (157.9 | ) | (126.6 | ) | (219.9 | ) | (217.0 | ) | |||||
| Provision for taxes | (0.7 | ) | (0.8 | ) | (1.5 | ) | (1.3 | ) | |||||
| Net loss before discontinuing operations | (158.6 | ) | (127.4 | ) | (221.4 | ) | (218.3 | ) | |||||
| Loss from discontinuing operations | 16.5 | (9.6 | ) | 1.2 | (31.2 | ) | |||||||
| Net loss for the period | (142.1 | ) | (137.0 | ) | (220.1 | ) | (249.4 | ) | |||||
| Attributable to: | |||||||||||||
| Minority interest | (0.8 | ) | (0.8 | ) | (0.4 | ) | (0.7 | ) | |||||
| Equity holders of GTMM, S.A.B. | (141.3 | ) | (136.2 | ) | (219.7 | ) | (248.7 | ) | |||||
| Weighted average outstanding shares (millions) | 102.183 | 102.183 | 102.183 | 102.183 | |||||||||
| Income (loss) earnings per share (dollars / share) | (1.4 | ) | (1.3 | ) | (2.1 | ) | (2.4 | ) | |||||
| Outstanding shares at end of period (millions) | 102.183 | 102.183 | 102.183 | 102.183 | |||||||||
| Income (loss) earnings per share (dollars / share) | (1.4 | ) | (1.3 | ) | (2.1 | ) | (2.4 | ) | |||||
| *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 (Under Discontinuing Operations) | |||||||||||||
| - Millions of Pesos - | |||||||||||||
| Three months ended | Six months ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| Cash flow from operation activities: | |||||||||||||
| Net loss before discontinuing operations | (158.6 | ) | (127.4 | ) | (221.4 | ) | (218.3 | ) | |||||
| Charges (credits) to income not affecting resources: | |||||||||||||
| Depreciation & amortization | 184.8 | 201.6 | 361.2 | 378.1 | |||||||||
| Other non-cash items | 110.3 | 242.1 | 292.0 | 442.5 | |||||||||
| Total non-cash items | 295.0 | 443.7 | 653.2 | 820.7 | |||||||||
| Changes in assets & liabilities | 219.4 | (193.1 | ) | (75.3 | ) | (261.1 | ) | ||||||
| Total adjustments | 514.5 | 250.6 | 577.9 | 559.5 | |||||||||
| Net cash provided by operating activities | 355.9 | 123.2 | 356.6 | 341.3 | |||||||||
| Cash flow from investing activities: | |||||||||||||
| Proceeds from sales of assets | 7.2 | 51.8 | 7.2 | 62.9 | |||||||||
| Payments for purchases of assets | (6.6 | ) | (5.1 | ) | (11.1 | ) | (55.2 | ) | |||||
| Proceeds from sales of subsidiaries | 696.6 | 696.6 | |||||||||||
| Net cash provided by (used in) investment activities | 0.6 | 743.3 | (3.8 | ) | 704.4 | ||||||||
| Cash flow provided by financing activities: | |||||||||||||
| Short-term borrowings (net) | (15.4 | ) | (141.5 | ) | (22.1 | ) | (201.9 | ) | |||||
| Repayment of long-term debt | (419.4 | ) | (43.7 | ) | (474.2 | ) | (311.3 | ) | |||||
| Proceeds from issuance of long-term debt | 30.0 | ||||||||||||
| Net cash used in financing activities | (434.8 | ) | (185.2 | ) | (496.3 | ) | (483.2 | ) | |||||
| Exchange losses on cash | 26.1 | 7.7 | 24.7 | 11.3 | |||||||||
| Net (decrease) increase in cash | (52.2 | ) | 689.1 | (118.9 | ) | 573.8 | |||||||
| Cash at beginning of period | 978.6 | 627.8 | 1,045.4 | 743.0 | |||||||||
| Cash at end of period | 926.4 | 1,316.9 | 926.4 | 1,316.9 | |||||||||
| *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
011-525-55-629-8718
Benjamin Ampudia
CFO
011-525-55-629-8704
Mauricio Monterrubio
Investor Relations
011-525-55-629-8712