-- Revenue of $68.6 million, up 9.9 percent from $62.4 million
-- Operating income of $6.4 million, up 2.7 times from $1.7 million
-- Operating margin of 9.3 percent, up 6.5 percentage points
-- EBITDA of $12.8 million, up from $7.3 million
-- Net loss of $5.1 million compared to net income of $78.9 million
Revenues in the first quarter of 2007 were impacted by the cancellation of
service agreements by Kansas City Southern de Mexico, which reduced first
quarter 2007 revenues by $10.0 million.
The increase in operating profit in first quarter of 2007 compared to first
quarter 2006 was mainly attributable to an improvement of $4.5 million in
the Maritime division's operating profit.
SG&A of $8.8 million in the first quarter of 2007 increased 4.7 percent or
$0.4 million over the same period of 2006 due mainly to annual increases to
employees and to the addition of our new warehouse company, partially
offset by the devaluation of the peso versus the dollar.
Net financial cost in the first quarter of 2007 was $10.6 million compared
to $24.5 million in the same quarter last year. This decrease resulted from
the reduction of $17.0 million attributable to the amortization of expenses
associated with the Company's 2007 Notes, and a $4.3 million reduction
attributable to interest related to such Notes and other debt. This
reduction was partially offset by a $6.4 million interest increase
associated with the Company's securitization program.
As of March 31, 2007, TMM's total debt was $357.5 million, of which $191.5
million is related to the Company's securitization facility, $159.6 million
is project finance debt and is related to the acquisition of maritime
assets (which is supported by approximately $154.1 million of long-term
contracted revenues, by the Mexican Navigation Law and by the total market
value of these assets, which is estimated to exceed their book value by $42
million), and $6.4 million is related to other debt.
Total Debt Composition as of March 31, 2007
(Millions of dollars)
Securitization Facility $ 191.5
*Offshore Vessels $ 106.1
*Two Product Tankers $ 53.5
Other debt $ 6.4
-------
Total Debt (1): $ 357.5
-------
*Project finance assets
(1) The Company's total debt as presented in its balance sheet as of
March 31, 2007, includes $3.4 million of accrued unpaid interest and is
reduced by $7.2 million of related expenses to be amortized over time.
DIVISIONAL RESULTS (All numbers in thousands)
First Quarter 2007
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ------
Revenues 41,884 24,085 2,734 (84) 68,619
--------- --------- --------- --------- ------
Costs 30,351 21,992 1,216 (88) 53,471
--------- --------- --------- --------- ------
Gross Result 11,533 2,093 1,518 4 15,148
--------- --------- --------- --------- ------
Gross Margin 27.5% 8.7% 55.5% n/a 22.1%
--------- --------- --------- --------- ------
SG & A 1,505 1,594 433 5,221 8,753
--------- --------- --------- --------- ------
Operating Results 10,028 499 1,085 (5,217) 6,395
--------- --------- --------- --------- ------
Operating Margin 23.9% 2.1% 39.7% n/a 9.3%
--------- --------- --------- --------- ------
First Quarter 2006
Corporate
and
Maritime Logistics Ports Others Total
--------- --------- --------- --------- ------
Revenues 31,189 29,159 2,104 (60) 62,392
--------- --------- --------- --------- ------
Costs 24,385 26,905 1,171 (146) 52,315
--------- --------- --------- --------- ------
Gross Result 6,804 2,254 933 86 10,077
--------- --------- --------- --------- ------
Gross Margin 21.8% 7.7% 44.3% n/a 16.2%
--------- --------- --------- --------- ------
SG & A 1,321 1,573 387 5,080 8,361
--------- --------- --------- --------- ------
Operating Results 5,483 681 546 (4,994) 1,716
--------- --------- --------- --------- ------
Operating Margin 17.6% 2.3% 26.0% n/a 2.8%
--------- --------- --------- --------- ------
SEGMENT RESULTS
Maritime
Comparing the first quarter of 2007 with the same period of last year:
-- Revenue increased 26.7 percent to $15.7 million in the offshore
segment mainly attributable to average daily rate increases and to two
additional vessels in operation
-- Cost reduction of 23.1 percent in the offshore segment due to the
conversion of vessels from a leased to an owned status resulting in a gross
profit increase of 197.4 percent
-- Revenue increase of 72.5 percent to $16.0 million in the tanker
segment due mainly to more vessels in operation
-- Revenue increase of 14.6 percent to $7.7 million in the parcel tanker
segment due to higher rates and volumes
Logistics
Comparing the first quarter of 2007 with the same period of last year:
-- Trucking revenues increased 13.2 percent to $9.6 million due to
increased freight volumes as a result of the acquisition of 130 new
tractors and 305 new trailers
-- Recently acquired warehousing company contributed $3.5 million of
revenues and $1.1 million of gross profit in the first quarter of 2007
-- Maintenance and repair revenues increased 50.0 percent to $1.6 million
due to ongoing rehabilitation and expansion of maintenance facilities
-- Inbound logistics revenues decreased 11.6 percent to $4.7 million due
mainly to a decrease in production in the automobile industry export output
Ports and Terminals
Comparing the first quarter of 2007 with the same period of last year:
-- Revenues and operating profit increased 29.9 percent and 98.7 percent,
respectively
-- Revenues at Acapulco increased 43.6 percent to $2.0 million due mainly
to a 54.8 percent revenue increase in the cruise ship business segment
-- Auto handling revenues at Acapulco improved 44.8 percent to $0.4
million as export volumes to Japan and South America increased from 6,812
automobiles to 8,472
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.
CONFERENCE CALL
TMM's management will host a conference call and Webcast to review
financial and operational highlights on Thursday, May 3 at 11:00 a.m.
Eastern Time.
To participate in the conference call, please dial 888-459-5609 (domestic)
or 973-321-1024 (international) and provide conference ID 8685861 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=39093.
A replay of the conference call will be available through May 10, at 11:59
p.m. Eastern Time, by dialing 877-519-4471or 973-341-3080, and entering
conference ID 8685861. On the Internet, a replay will be available for 30
days at http://www.visualwebcaster.com/event.asp?id=39093.
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 -
March 31, December 31,
2007 2006
============= =============
Current assets:
Cash and cash equivalents 33.911 38.666
------------- -------------
Accounts receivable
Accounts receivable - Net 38.663 40.599
------------- -------------
Other accounts receivable 81.968 79.539
------------- -------------
Prepaid expenses and other current
assets 12.270 9.882
------------- -------------
Total current assets 166.812 168.686
============= =============
Long-term account receivable 40.000 40.000
============= =============
Property, machinery and equipment - Net 275.715 279.335
============= =============
Other assets 34.072 34.602
============= =============
Deferred taxes 112.833 112.833
============= =============
Total assets 629.432 635.456
============= =============
Current liabilities:
Bank loans and current maturities of long
term liabilities 32.404 27.555
------------- -------------
Sale of accounts receivable 17.111 16.727
------------- -------------
Suppliers 21.631 20.422
------------- -------------
Other accounts payable and accrued expenses 41.517 37.839
------------- -------------
Total current liabilities 112.663 102.543
============= =============
Long-term liabilities:
Bank loans and other obligations 135.273 141.401
------------- -------------
Sale of accounts receivable 168.884 172.617
------------- -------------
Other long-term liabilities 27.407 27.551
------------- -------------
Total long-term liabilities 331.564 341.569
============= =============
Total liabilities 444.227 444.112
============= =============
Stockholders' equity
Common stock 121.158 121.158
------------- -------------
Retained earnings 75.381 80.440
------------- -------------
Initial accumulated translation loss (17.757) (17.757)
------------- -------------
Cumulative translation adjusted (2.639) (1.173)
============= =============
176.143 182.668
------------- -------------
Minority interest 9.062 8.676
------------- -------------
Total stockholders' equity 185.205 191.344
============= =============
Total liabilities and stockholders´ equity 629.432 635.456
============= =============
* 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
March 31,
2007 2006
============= =============
Revenue from freight and services 68.619 62.392
------------- -------------
Cost of freight and services (49.447) (49.619)
------------- -------------
Depreciation of vessels and operating
equipment (4.024) (2.696)
------------- -------------
15.148 10.077
------------- -------------
Administrative expenses (8.753) (8.361)
------------- -------------
Operating Income 6.395 1.716
============= =============
Other income - Net 0.108 0.154
------------- -------------
------------- -------------
Financial (expenses) income - Net (9.838) (24.198)
------------- -------------
Exchange (loss) gain - Net (0.782) (0.291)
------------- -------------
Net financial cost (10.620) (24.489)
------------- -------------
Loss before taxes (4.117) (22.619)
============= =============
(Provision) benefit for taxes (0.569) 1.675
------------- -------------
Net loss before discontinuing operations (4.686) (20.944)
============= =============
Income from disposal discontinuing business 100.066
------------- -------------
Net (loss) income for the period (4.686) 79.122
============= =============
Attributable to:
Minority interest 0.374 0.219
------------- -------------
Equity holders of GTMM, S.A. (5.060) 78.903
============= =============
Weighted average outstanding shares
(millions) 56.963 56.963
(Loss) income earnings per share (dollars /
share) (0.09) 1.39
Outstanding shares at end of period
(millions) 56.963 56.963
(Loss) income earnings per share (dollars /
share) (0.09) 1.39
============= =============
* 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
March 31,
2007 2006
============= =============
Cash flow from operation activities:
Net loss before discontinuing operations (4.686) (20.944)
------------- -------------
Charges (credits) to income not affecting
resources:
Depreciation & amortization 6.363 5.587
------------- -------------
Deferred income taxes (2.141)
------------- -------------
Other non-cash items (0.036) 14.189
------------- -------------
Total non-cash items 6.327 17.635
------------- -------------
Changes in assets & liabilities 12.373 (12.075)
------------- -------------
Total adjustments 18.700 5.560
------------- -------------
Net cash provided (used in) by operating
activities 14.014 (15.384)
============= =============
Cash flow from investing activities:
Proceeds from sales of assets (net) 0.620 8.520
------------- -------------
Payments for purchases of assets (4.170) (66.336)
------------- -------------
Net cash used in investment activities (3.550) (57.816)
============= =============
Proceeds from discontinued business and
Sale of share of subsidiaries (net) 69.390
------------- -------------
Cash flow provided by financing activities:
Short-term borrowings (net) 5.396
------------- -------------
Sale (repurchase) of accounts receivable
(net) (10.108)
------------- -------------
Repayment of long-term debt (10.507) (360.050)
------------- -------------
Proceeds from issuance of long-term debt 69.663
------------- -------------
Net cash used in financing activities (15.219) (290.387)
============= =============
Net decrease in cash (4.755) (294.197)
------------- -------------
Cash at beginning of period 38.666 400.809
------------- -------------
Cash at end of period 33.911 106.612
============= =============
*Prepared in accordance with International Financial Reporting Standards.
Contact Information: TMM COMPANY CONTACT: Juan Fernandez Chief Financial Officer 011-52-55-5629-8778 (Email Contact) Brad Skinner Investor Relations Director TMM Logistics 011-52-55-5629-8725 203-247-2420 (Email Contact) Monica Azar Manager Investor Relations 212-659-4975 (Email Contact) AT DRESNER CORPORATE SERVICES: Kristine Walczak (investors, analysts, media) 312-726-3600 (Email Contact)