-- Revenue of $73.3 million, up 19.6 percent from $61.3 million
-- Transportation income of $6.5 million, up 2.0 times from $3.2 million
-- Operating margin of 8.9 percent, up 3.7 percentage points
-- EBITDA of $13.5 million, up 53.4 percent from $8.8 million
-- Net loss of $0.6 million compared to a net loss of $7.4 million
Comparing the first six months of 2007 with the first six months of 2006,
TMM reported the following results:
-- Revenue of $141.9 million, up 14.7 percent from $123.7 million
-- Transportation income of $12.9 million, up 2.6 times from $4.9 million
-- Operating margin of 9.1 percent, up 5.1 percentage points
-- EBITDA of $26.3 million, up 63.4 percent from $16.1 million
-- Net loss of $5.7 million compared to net income of $71.5 million
Revenues in the second quarter of 2007 were impacted $2.4 million from the
cancellation of service agreements by Kansas City Southern de Mexico.
Increased consolidated transportation income is mainly attributable to
improved transportation income at the Maritime division of $3.6 million in
the second quarter of 2007 and $8.1 million in the first six months of 2007
compared to the same periods last year.
SG&A of $18.5 million in the first six months of 2007 increased 6.6
percent, or $1.2 million, over the same period of 2006 due mainly to higher
legal expenses associated with specific litigations and to expenses related
to new projects and acquisitions.
Net financial cost in the first half of 2007 was $20.9 million, which
included an exchange loss of $0.4 million, compared to $34.3 million in the
same period of 2006, which included an exchange loss of $2.4 million. The
decrease in the 2007 period resulted mainly to costs incurred in the first
six months of 2006 of $18.4 million and $9.8 million attributable to the
amortization of transaction costs and interest related to the Company's
2007 Notes, respectively. Additionally, in the first half of 2007 TMM
incurred $13.4 million of interest and amortization of expenses associated
with the Company's securitization program and $2.0 million of increased
interest related to other debt. Also in the first half of 2007 financial
income decreased $1.4 million.
BALANCE SHEET
As of June 30, 2007, TMM's total nominal debt was $397.0 million, of which
$187.9 million is related to the Company's securitization facility, $205.8
million is related to vessel financings and $3.3 million is related to
other debt.
Nominal Value of Debt as of June 30, 2007
(Millions of dollars)
Securitization Facility $ 187.9
Offshore Vessels $ 102.6
Two Chemical Tankers $ 52.2
Two Product Tankers $ 51.0
Other debt $ 3.3
------------
Total Nominal Value of Debt (1) $ 397.0
------------
(1) The Company's total debt as presented in its balance sheet as of June
30, 2007, includes $3.4 million of accrued unpaid interest and is
reduced by $8.0 million of related expenses to be amortized over time.
DIVISIONAL RESULTS (All numbers in thousands)
Second Quarter 2007
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ---------
Revenues 45,494 25,932 1,944 (66) 73,304
--------- --------- --------- --------- ---------
Costs 33,174 22,844 1,112 (64) 57,066
--------- --------- --------- --------- ---------
Gross Result 12,320 3,088 832 2 16,238
--------- --------- --------- --------- ---------
Gross Margin 27.1% 11.9% 42.8% n/a 22.2%
--------- --------- --------- --------- ---------
SG & A 808 2,175 392 6,336 9,711
--------- --------- --------- --------- ---------
Transportation
Income 11,512 913 440 (6,338) 6,527
--------- --------- --------- --------- ---------
Operating Margin 25.3% 3.5% 22.6% n/a 8.9%
--------- --------- --------- --------- ---------
Second Quarter 2006
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ---------
Revenues 36,945 22,607 1,729 (16) 61,265
--------- --------- --------- --------- ---------
Costs 27,712 20,168 1,199 35 49,114
--------- --------- --------- --------- ---------
Gross Result 9,233 2,439 530 (51) 12,151
--------- --------- --------- --------- ---------
Gross Margin 25.0% 10.8% 30.7% n/a 19.8%
--------- --------- --------- --------- ---------
SG & A 1,273 1,860 395 5,438 8,966
--------- --------- --------- --------- ---------
Transportation
Income 7,960 579 135 (5,489) 3,185
--------- --------- --------- --------- ---------
Operating Margin 21.5% 2.6% 7.8% n/a 5.2%
--------- --------- --------- --------- ---------
First Six Months 2007
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ---------
Revenues 87,378 50,017 4,678 (150) 141,923
--------- --------- --------- --------- ---------
Costs 63,525 44,836 2,328 (152) 110,537
--------- --------- --------- --------- ---------
Gross Result 23,853 5,181 2,350 2 31,386
--------- --------- --------- --------- ---------
Gross Margin 27.3% 10.4% 50.2% n/a 22.1%
--------- --------- --------- --------- ---------
SG & A 2,313 3,769 825 11,557 18,464
--------- --------- --------- --------- ---------
Transportation
Income 21,540 1,412 1,525 (11,555) 12,922
--------- --------- --------- --------- ---------
Operating Margin 24.7% 2.8% 32.6% n/a 9.1%
--------- --------- --------- --------- ---------
First Six Months 2006
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ---------
Revenues 68,134 51,766 3,833 (76) 123,657
--------- --------- --------- --------- ---------
Costs 52,097 47,073 2,370 (111) 101,429
--------- --------- --------- --------- ---------
Gross Result 16,037 4,693 1,463 35 22,228
--------- --------- --------- --------- ---------
Gross Margin 23.5% 9.1% 38.2% n/a 18.0%
--------- --------- --------- --------- ---------
SG & A 2,594 3,433 782 10,518 17,327
--------- --------- --------- --------- ---------
Transportation
Income 13,443 1,260 681 (10,483) 4,901
--------- --------- --------- --------- ---------
Operating Margin 19.7% 2.4% 17.8% n/a 4.0%
--------- --------- --------- --------- ---------
SEGMENT RESULTS Maritime Comparing the second quarter of 2007 with the same period of last year:
-- Revenues increased 33.3 percent to $17.6 million in the offshore
segment mainly due to an improved revenue mix and to one more vessel in
operation
-- Revenues increased 27.7 percent to $16.9 million in the product tanker
segment mainly due to more vessels in operation. Costs were impacted in
this segment by the redelivery of one vessel which was under a bareboat
contract and was no longer profitable. However, during this quarter the
division added another vessel to its fleet, which is currently in operation
under a time charter contract
-- Revenues increased 7.5 percent to $8.2 million in the chemical tanker
segment mainly due to higher volumes
-- Consolidated gross profit increased 33.4 percent mainly attributable
to a gross profit increase of 56.2 percent to $6.6 million in the offshore
segment and to a 70.0 percent increase to $1.0 million in the chemical
tanker segment as a result of increased owned vessels
Comparing the first six months of 2007 with the same period of last year:
-- Revenue increased 30.1 percent to $33.3 million in the offshore
segment mainly due to an improved revenue mix, to two additional vessels in
operation and to a 15 percent decrease in dry docking days
-- Revenue increase of 46.2 percent to $32.9 million in the product
tanker segment due mainly to more vessels in operation and increased
utilization, from 84 percent to 100 percent, excluding the re-delivery of
one vessel in June
-- Revenue increase of 10.8 percent to $15.9 million in the chemical
tanker segment mainly due to higher volumes
-- Revenue decrease of 7.0 percent to $5.3 million in the harbor towing
segment mainly due to a change in routes of container and refrigerated
cargo. As of June 15, tariffs increased 3 percent, which should positively
impact revenues going forward
-- Consolidated gross profit increased 48.7 percent mainly attributable
to a gross profit increase of 103.3 percent to $12.9 million in the
offshore segment and to an 81.7 percent increase to $1.4 million in the
chemical tanker segment as a result of increased owned vessels
Logistics
Comparing the second quarter of 2007 with the same period of last year:
-- Trucking revenues increased 16.4 percent to $10.4 million due to
increased freight volumes as a result of the acquisition of 130 new
tractors and 400 new trailers
-- Warehousing operations contributed $4.1 million of revenues and $1.0
million of gross profit, exceeding the Company's expectations prior to the
peak summer season
-- Maintenance and repair revenues increased 75.2 percent to $1.8
million, and gross profit increased 2.6 times due to rehabilitation and
expansion of maintenance facilities
-- Inbound logistics revenues were $5.3 million, unchanged compared to
the second quarter of 2006
Comparing the first six months of 2007 with the same period of last year:
-- Trucking revenues increased 14.9 percent to $20.0 million due to
expanded tractor and trailer fleets and growing customer contracts and
volumes
-- Warehousing operations contributed $7.7 million of revenues and $2.2
million of gross profit
-- Maintenance and repair revenues increased 62.5 percent to $3.4
million, and gross profit increased 2.2 times due to refurbished facilities
and new international accounts at port facilities
-- Inbound logistics revenues decreased 5.7 percent to $10.0 million due
mainly to a decrease in production in the automobile industry export output
-- Consolidated costs decreased 4.8 percent, impacted by a 66.7 percent
reduction in cost at auto yards and to reduced activity in intermodal rail
use. All other cost centers expanded proportionally with revenue increases
Ports and Terminals
Comparing the second quarter of 2007 with the same period of last year:
-- Revenues increased 12.4 percent, and transportation income increased
3.3 times
-- Revenues at Acapulco increased 22.0 percent to $1.5 million due mainly
to a 63.6 percent revenue increase in the cruise ship business segment,
partially offset by a 19 percent decrease in auto handling revenues due to
lower export volumes
Comparing the first six months of 2007 with the same period of last year:
-- Revenues increased 22.0 percent, and transportation income increased
2.2 times
-- Revenues at Acapulco increased 33.4 percent to $3.5 million due mainly
to a 58.1 percent revenue increase in the cruise ship business segment
-- Auto handling revenues at Acapulco decreased 5.3 percent to $0.8
million as export volumes decreased from 18,867 automobiles to 17,349
CONFERENCE CALL
TMM's management will host a conference call and Webcast to review
financial and operational highlights on Friday, July 27 at 11:00 a.m.
Eastern Time.
To participate in the conference call, please dial 866-540-8136 (domestic)
or 416-340-8010 (international) and provide conference ID 3227508 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=40626.
A replay of the conference call will be available through August 3, at
11:59 p.m. Eastern Time, by dialing 800-408-3053 or 416-695-5800, and
entering conference ID 3227508. On the Internet, a replay will be available
for 30 days at http://www.visualwebcaster.com/event.asp?id=40626.
Headquartered in Mexico City, TMM is a Latin American multimodal
transportation 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 (under discontinuing operations)
- millions of dollars -
June 30, December 31,
2007 2006
============ ============
Current assets:
Cash and cash equivalents 41.318 38.666
------------ ------------
Accounts receivable
Accounts receivable - Net 40.610 40.599
------------ ------------
Other accounts receivable 29.528 28.426
------------ ------------
Prepaid expenses and other current assets 12.987 9.882
------------ ------------
Account receivable to KCS 51.700 51.113
------------ ------------
Total current assets 176.143 168.686
============ ============
Long-term account receivable 40.000 40.000
============ ============
Property, machinery and equipment - Net 307.597 279.335
============ ============
Other assets 34.538 34.602
============ ============
Deferred taxes 112.834 112.833
============ ============
Total assets 671.112 635.456
============ ============
Current liabilities:
Bank loans and current maturities of long term
liabilities 36.080 27.555
------------ ------------
Sale of accounts receivable 17.505 16.727
------------ ------------
Suppliers 20.754 20.422
------------ ------------
Other accounts payable and accrued expenses 47.397 37.839
------------ ------------
Total current liabilities 121.736 102.543
============ ============
Long-term liabilities:
Bank loans and other obligations 173.709 141.401
------------ ------------
Sale of accounts receivable 165.086 172.617
------------ ------------
Other long-term liabilities 27.833 27.551
------------ ------------
Total long-term liabilities 366.628 341.569
============ ============
Total liabilities 488.364 444.112
============ ============
Stockholders´ equity
Common stock 121.158 121.158
------------ ------------
Retained earnings 74.734 80.440
------------ ------------
Initial accumulated translation loss (17.757) (17.757)
------------ ------------
Cumulative translation adjusted (1.672) (1.173)
============ ============
176.463 182.668
------------ ------------
Minority interest 6.285 8.676
------------ ------------
Total stockholders´ equity 182.748 191.344
============ ============
Total liabilities and stockholders´ equity 671.112 635.456
============ ============
* Prepared in accordance with International Financial Reporting Standards.
Grupo TMM, S.A.B. and subsidiaries
* Statement of Income (under discontinuing operations)
- millions of dollars -
Three months ended Year ended
June 30, June 30,
2007 2006 2007 2006
======== ======== ======== ========
Revenue from freight and services 73.304 61.265 141.923 123.657
-------- -------- -------- --------
Cost of freight and services (52.888) (45.463) (102.335) (95.082)
-------- -------- -------- --------
Depreciation of vessels and
operating equipment (4.178) (3.651) (8.202) (6.347)
-------- -------- -------- --------
16.238 12.151 31.386 22.228
-------- -------- -------- --------
Administrative expenses (9.711) (8.966) (18.464) (17.327)
-------- -------- -------- --------
Transportation Income 6.527 3.185 12.922 4.901
======== ======== ======== ========
Other income (expenses) - Net 3.055 (0.615) 3.163 (0.461)
-------- -------- -------- --------
Operating Income 9.582 2.570 16.085 4.440
======== ======== ======== ========
Financial (expenses) income - Net (10.657) (7.758) (20.495) (31.956)
-------- -------- -------- --------
Exchange gain (loss) - Net 0.350 (2.065) (0.432) (2.356)
-------- -------- -------- --------
Net financial cost (10.307) (9.823) (20.927) (34.312)
-------- -------- -------- --------
Loss before taxes (0.725) (7.253) (4.842) (29.872)
======== ======== ======== ========
(Provision) benefit for taxes (0.230) 1.124 (0.799) 2.799
-------- -------- -------- --------
Net loss before discontinuing
operations (0.955) (6.129) (5.641) (27.073)
======== ======== ======== ========
Income from disposal discontinuing
business (0.675) 99.391
-------- -------- -------- --------
(0.955) (6.804) (5.641) 72.318
======== ======== ======== ========
Attributable to:
Minority interest (0.308) 0.554 0.066 0.773
-------- -------- -------- --------
Equity holders of GTMM, S.A.B. (0.647) (7.358) (5.707) 71.545
======== ======== ======== ========
Weighted average outstanding shares
(millions) 56.963 56.963 56.963 56.963
(Loss) income earnings per share
(dollars / share) (0.01) (0.13) (0.10) 1.26
Outstanding shares at end of period
(millions) 56.963 56.963 56.963 56.963
(Loss) income earnings per share
(dollars / share) (0.01) (0.13) (0.10) 1.26
======== ======== ======== ========
* Prepared in accordance with International Financial Reporting Standards.
Grupo TMM, S.A.B. and subsidiaries
* Statement of Cash Flow (under discontinuing operations)
- millions of dollars -
Three months ended Year ended
June 30, June 30,
2007 2006 2007 2006
======== ======== ======== ========
Cash flow from operation
activities:
Net loss before discontinuing
operations (0.955) (6.129) (5.641) (27.073)
-------- -------- -------- --------
Charges (credits) to income not
affecting resources:
Depreciation & amortization 6.974 5.590 13.337 11.177
-------- -------- -------- --------
Deferred income taxes (2.216) (1.260) (2.216) (3.401)
-------- -------- -------- --------
Other non-cash items 0.654 2.978 0.618 17.167
-------- -------- -------- --------
Total non-cash items 5.412 7.308 11.739 24.943
-------- -------- -------- --------
Changes in assets &
liabilities 17.765 3.461 30.138 (8.614)
-------- -------- -------- --------
Total adjustments 23.177 10.769 41.877 16.329
-------- -------- -------- --------
Net cash provided (used in) by
operating activities 22.222 4.640 36.236 (10.744)
======== ======== ======== ========
Cash flow from investing
activities:
Proceeds from sales of assets
(net) 6.214 0.381 6.834 8.901
-------- -------- -------- --------
Payments for purchases of assets (44.179) (30.419) (48.349) (96.755)
-------- -------- -------- --------
Acquisition of shares of
subsidiaries (3.771) (19.070) (3.771) (19.070)
-------- -------- -------- --------
Paid to minority partners (2.450) (1.680) (2.450) (1.680)
-------- -------- -------- --------
Net cash used in investment
activities (44.186) (50.788) (47.736) (108.604)
======== ======== ======== ========
Proceeds from discontinued
business and Sale of share of
subsidiaries (net) (0.675) 68.715
-------- -------- -------- --------
Cash flow provided by financing
activities:
Short-term borrowings (net) (3.079) (0.150) 2.317 (0.150)
-------- -------- -------- --------
Sale (repurchase) of accounts
receivable (net) (10.030) (20.138)
-------- -------- -------- --------
Repayment of long-term debt (10.020) (10.036) (20.527) (370.086)
-------- -------- -------- --------
Proceeds from issuance of
long-term debt 52.500 21.800 52.500 91.463
-------- -------- -------- --------
Net cash provided (used in) by
financing activities 29.371 11.614 14.152 (278.773)
======== ======== ======== ========
Net increase (decrease) in cash 7.407 (35.209) 2.652 (329.406)
-------- -------- -------- --------
Cash at beginning of period 33.911 106.612 38.666 400.809
-------- -------- -------- --------
Cash at end of period 41.318 71.403 41.318 71.403
======== ======== ======== ========
*Prepared in accordance with International Financial Reporting Standards.
Contact Information: TMM COMPANY CONTACT: Juan Fernandez Chief Financial Officer 011-52-55-5629-8778 () Brad Skinner Investor Relations, Director TMM Logistics 011-52-55-5629-8725 203-247-2420 () Monica Azar Manager, Investor Relations 212-659-4975 () AT DRESNER CORPORATE SERVICES: Kristine Walczak (investors, analysts, media) 312-726-3600 ()