Grupo TMM Reports Third-Quarter 2009 Financial Results

SOURCE: Grupo TMM

Oct 28, 2009 16:30 ET
Grupo TMM Reports Third-Quarter 2009 Financial Results
MEXICO CITY--(Marketwire - October 28, 2009) - Grupo TMM, S.A.B. (NYSE: TMM) (BMV: TMM A)

-- Consolidated operating profit up $4.7 million for quarter and 34.5% in
first nine months
-- Maritime operating profit up 40.8% for quarter and 21.9% in first nine
months
-- EBITDA up 119.2% for quarter and 42.0% in first nine months

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 third quarter and first nine months of 2009.
MANAGEMENT OVERVIEW
José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "In the 2009 third quarter, weak economic conditions continued to negatively impact revenues at each of our business units. However, operating profit, operating margins and EBITDA in the third quarter and first nine months of 2009 exceeded last years' results.
"Consolidated revenues decreased 21.8 percent in the 2009 third quarter and 16.3 percent in the 2009 nine-month period compared to the same periods of last year. Notwithstanding these revenue decreases, consolidated operating profit in the 2009 third quarter improved to $3.8 million compared to an operating loss of $0.9 million in the same period last year, and improved to $14.8 million in the 2009 nine-month period compared to $11.0 million in the 2008 nine-month period. These improvements were mainly due to lower costs and expenses and to improved profits at Maritime in the 2009 periods compared to the 2008 periods."
Serrano continued, "In the 2009 third quarter, corporate expenses decreased 34.4 percent, or $2.1 million, and in the first nine months of 2009, decreased 22.5 percent, or $3.3 million, both compared to the same respective periods of last year. The ratio of corporate expenses to total revenue declined to 5.4 percent in the 2009 third quarter and to 5.0 percent in the 2009 nine-month period.
"Consolidated EBITDA grew year-over-year, up 119.2 percent from $7.8 million in the 2008 third quarter to $17.1 million in the 2009 third quarter. Consolidated EBITDA increased 42.0 percent, from $36.9 million in the 2008 period to $52.4 million, in the 2009 period.
"At Maritime, third-quarter 2009 revenues fell 6.5 percent compared to third-quarter 2008, mainly due to a decrease in product tanker revenue days and to fewer vessels in operation. For the nine-month period of 2009 compared to the same period of 2008, Maritime revenues remained stable at $151 million.
"However, Maritime operating profit and margins increased in both 2009 periods compared to last year. In the 2009 third quarter, operating profit improved 40.8 percent to $14.5 million, and in the 2009 nine-month period, increased 21.9 percent to $40.6 million, mainly due to improvements at our offshore segment as a result of more vessels in operation and to higher average daily rates when compared to 2008.
"We continue to enhance our vessel utilization and productivity at our Maritime division, as we have recently closed four new long-term contracts. One product tanker and one new offshore vessel each began five-year contracts in mid-August, contributing to 2009 third-quarter results. Additionally, one new offshore vessel began a five-year contract this month, and another vessel will begin a five-year contract in early November, both of which will contribute to our results in the fourth quarter."
Serrano continued, "In the first nine months of 2009, lower automobile production, decreasing total trade and negative economic indexes in Mexico and abroad have negatively impacted TMM's Ports and Logistics divisions' revenue and operations. Port revenue and operating profit decreased in the 2009 periods compared to the 2008 periods mainly due to reduced auto exports and fewer cruise ship calls in the Port of Acapulco. At Logistics, trucking, auto hauling and warehousing were negatively affected period over period by reduced volumes as a result of lower demand for consumer goods, retail and auto parts. Logistics revenue was also impacted by the depreciation of the peso versus the dollar in 2009 compared to 2008.
"Net financial costs in the 2009 periods were partially offset by peso depreciation versus the dollar, as we recorded a net exchange gain of $18.0 million in the third quarter, which in turn reduced the net exchange loss for the first nine months of 2009 to $7.4 million."
Serrano concluded, "As we have discussed previously, we continue to work on the restructuring of our dollar denominated debt and sale of our non-strategic and non-productive assets and operations. While we would have hoped to have these actions completed by today, global credit markets, the Mexican economy and Mexican regulations have made these dealings very complex and time consuming.
"I want to assure our shareholders that we are now in the final stages to reach an agreement to refinance this debt, which is necessary for TMM's renewed growth and improved shareholder returns. Completing these transactions will allow us to de-lever the Company, ease our financial costs, increase our financial flexibility and focus all of our efforts going forward on improving TMM's operating profit to become free cash flow positive in 2010, positioning the Company for long-term growth and profitability."
CONFERENCE CALL
TMM's management will host a conference call and Webcast to review financial and operational highlights on Thursday, October 29 at 11:30 a.m. Eastern time. To participate in the conference call, please dial (888) 554-1432 (domestic) or (719) 325-2172 (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=62685.
A replay of the conference call will be available through November 12 at 11:59 p.m. Eastern time, by dialing (888) 203-1112 or (719) 457-0820, and entering passcode 7939427. On the Internet a replay will be available for 30 days at http://www.visualwebcaster.com/event.asp?id=62685.
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 -



September December
30, 31,
2009 2008

--------- ---------

Current assets:
Cash and cash equivalents 99.770 168.447
--------- ---------
Accounts receivable
Accounts receivable - Net 62.252 56.548
--------- ---------
Other accounts receivable 42.806 23.750
--------- ---------
Prepaid expenses and others current assets 10.087 11.653
--------- ---------
Total current assets 214.915 260.398
========= =========
Property, machinery and equipment 830.676 806.911
--------- ---------
Cumulative Depreciation (137.800) (124.396)
--------- ---------
Property, machinery and equipment - Net 692.876 682.515
========= =========
Other assets 57.784 47.821
--------- ---------
Deferred taxes 97.276 97.276
--------- ---------
Total assets 1,062.851 1,088.010
--------- ---------
Current liabilities:
Bank loans and current maturities of long-term
liabilities 16.419 21.063
--------- ---------
Sale of accounts receivable 16.306 14.976
--------- ---------
Suppliers 29.930 33.039
--------- ---------
Other accounts payable and accrued expenses 54.222 38.827
--------- ---------
Total current liabilities 116.877 107.905
--------- ---------
Long-term liabilities:
Bank loans 62.865 64.795
--------- ---------
Trust certificates debt 653.605 615.609
--------- ---------
Sale of accounts receivable 90.116 101.035
--------- ---------
Other long-term liabilities 27.760 27.483
--------- ---------
Total long-term liabilities 834.346 808.922
========= =========
Total liabilities 951.223 916.827
--------- ---------

Stockholders' equity
Common stock 114.058 114.058
--------- ---------
Retained earnings 20.435 82.117
--------- ---------
Initial accumulated translation loss (17.757) (17.757)
--------- ---------
Cumulative translation adjusted (11.573) (13.312)
--------- ---------
105.163 165.106
--------- ---------
Minority interest 6.465 6.077
--------- ---------
Total stockholders' equity 111.628 171.183
--------- ---------

Total liabilities and stockholders' equity 1,062.851 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 Operations*
- millions of dollars -



Three months ended Nine months ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------

Ports 0.924 1.343 3.772 5.578
Maritime 49.171 52.602 151.308 151.687
Logistics 22.900 36.656 68.617 106.027
Corporate and others 1.700 4.849 5.709 10.836
Eliminations (0.098) (0.091) (0.298) (0.292)
-------- -------- -------- --------
Revenue from freight and services 74.597 95.359 229.108 273.836
-------- -------- -------- --------

Ports (0.987) (1.481) (3.189) (4.454)
Maritime (27.813) (37.491) (90.206) (106.116)
Logistics (26.069) (38.715) (75.159) (109.291)
Corporate and others (2.574) (5.195) (7.374) (11.269)
Eliminations 0.098 0.091 0.298 0.292
-------- -------- -------- --------
Cost of freight and services (57.345) (82.791) (175.630) (230.838)
-------- -------- -------- --------

Ports (0.177) (0.208) (0.566) (0.645)
Maritime (6.853) (4.782) (20.499) (12.282)
Logistics (1.790) (0.940) (4.371) (3.301)
Corporate and others (0.002) 0.001 (0.011) (0.013)
-------- -------- -------- --------
Depreciation of vessels and
equipment (8.822) (5.929) (25.447) (16.241)
-------- -------- -------- --------

Corporate expenses (4.035) (6.147) (11.359) (14.736)
Ports (0.240) (0.346) 0.017 0.479
Maritime 14.505 10.329 40.603 33.289
Logistics (4.959) (2.999) (10.913) (6.565)
Corporate and others (0.876) (0.345) (1.676) (0.446)
Other (expenses) income - Net (0.599) (1.408) (1.834) (1.024)
-------- -------- -------- --------
Operating Income 3.796 (0.916) 14.838 10.997
======== ======== ======== ========
Financial (expenses) income - Net (21.028) (18.321) (67.858) (43.007)
Exchange gain (loss) - Net 17.967 32.051 (7.434) 21.663
-------- -------- -------- --------
Net financial cost (3.061) 13.730 (75.292) (21.344)
-------- -------- -------- --------
Gain (loss) before taxes 0.735 12.814 (60.454) (10.347)
======== ======== ======== ========
(Provision) benefit for taxes (0.245) 1.155 (0.647) (0.305)
-------- -------- -------- --------
Net income (loss) for the period 0.490 13.969 (61.101) (10.652)
-------- -------- -------- --------

Attributable to:
Minority interest 0.559 (0.082) 0.581 0.482
-------- -------- -------- --------
Equity holders of GTMM, S.A.B. (0.069) 14.051 (61.682) (11.134)
-------- -------- -------- --------

Weighted average outstanding shares
(millions) 55.227 55.956 55.227 56.518
Income (loss) earnings per share
(dollars / share) (0.00) 0.25 (1.12) (0.20)

Outstanding shares at end of period
(millions) 55.227 55.252 55.227 55.252
Income (loss) earnings per share
(dollars / share) (0.00) 0.25 (1.12) (0.20)
-------- -------- -------- --------
*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
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------

Cash flow from operation
activities:
Net Income (loss) before
discontinuing operations 0.490 13.969 (61.101) (10.652)
-------- -------- -------- --------

Charges (credits) to income not
affecting resources:
Depreciation & amortization 13.283 8.674 37.545 25.909
-------- -------- -------- --------
Other non-cash items 5.901 (12.476) 71.036 32.515
-------- -------- -------- --------
Total non-cash items 19.184 (3.802) 108.581 58.424
-------- -------- -------- --------
Changes in assets & liabilities (9.147) (31.437) (22.070) (59.421)
-------- -------- -------- --------
Total adjustments 10.037 (35.239) 86.511 (0.997)
-------- -------- -------- --------
Net cash provided by (used in)
operating activities 10.527 (21.270) 25.410 (11.649)
======== ======== ======== ========

Cash flow from investing
activities:
Proceeds from sales of assets 4.383 0.489 11.835 1.008
-------- -------- -------- --------
Payments for purchases of assets (14.794) (196.136) (53.537) (298.137)
-------- -------- -------- --------
Common stock decrease of
subsidiaries (0.202) (0.202) (0.490)
-------- -------- -------- --------
Dividends from non-consolidated
subsidiaries 1.001 0.643 1.001
-------- -------- -------- --------
Net cash used in investment
activities (10.613) (194.646) (41.261) (296.618)
======== ======== ======== ========

Cash flow provided by financing
activities:
Short-term borrowings (net) (2.277) (0.939) 0.249
-------- -------- -------- --------
Sale (repurchase) of accounts
receivable (net) (7.222) (7.240) (21.667) (21.777)
-------- -------- -------- --------
Repayment of long-term debt (7.300) 0.615 (40.490) (56.248)
-------- -------- -------- --------
Proceeds from issuance of
long-term debt 8.832 426.404 8.832 628.815
-------- -------- -------- --------
Acquisition of treasury shares,
net (1.367) (2.208)
-------- -------- -------- --------
Net cash (used in) provided by
financing activities (5.690) 416.135 (54.264) 548.831
======== ======== ======== ========
Exchange losses on cash (2.609) (11.058) 1.438 (11.058)
======== ======== ======== ========
Net (decrease) increase in cash (8.385) 189.161 (68.677) 229.506
-------- -------- -------- --------
Cash at beginning of period 108.155 92.580 168.447 52.235
-------- -------- -------- --------
Cash at end of period 99.770 281.741 99.770 281.741
-------- -------- -------- --------


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


TMM COMPANY CONTACT:
Jacinto Marina
Chief Financial Officer
011-525-55-629-8866 ext. 2901
Email Contact

Monica Azar
Investor Relations
917-597-5361
011-525-55-629-8866 ext. 3421
Email Contact

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