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.
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
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