Grupo TMM Reports 2020 First-Quarter Financial Results

Thursday, 02. July 2020 22:15

(In Millions of Mexican Pesos)

2020 First-Quarter Financial Results Include:

  • Consolidated Income of $358.9 million.
  • Free Cash Flow of $467.0 million.
  • No Net Debt; Total Debt is lower than the Free Cash Flow.
  • Stockholders’ Equity of $2,435.8 million.
  •  Financial Debt of 10.9 percent from Stockholders’ Equity.

MEXICO CITY, July 02, 2020 (GLOBE NEWSWIRE) -- Grupo TMM, S.A.B. (OTC: GTMAY and BMV: TMM A; “TMM” or the “Company”), a Mexican Maritime-management transportation and logistics Company, reported today its financial results for the first quarter.

MANAGEMENT OVERVIEW
José F. Serrano, Chairman and Chief Executive Officer of Grupo TMM, said, "The slowdown of the economy in Mexico and the world during 2019 and the first months of this year, which were mainly due to the downturn in oil prices, coupled with the declaration of a health emergency by the Federal Government in Mexico and suspension of non-essential activities due to COVID-19, have affected the entire transportation and logistics industry, in addition to creating uncertainty in the financial markets; the Company has found alternative strategies to reduce the potential impact as much as possible, while trying to maintain productivity levels in the main segments of its Maritime, Ports and Terminals divisions, as well as Warehousing Services.”

In the same way, the Company reaffirms its social responsibility with its human capital, it has also implemented all the necessary measures to avoid spreading of the Coronavirus (COVID-19) to its collaborators, both on-board personnel, local operating personnel, as well as administrative and management personnel.

Grupo TMM’s solid financial position, with excellent cash/debt management, has resulted in significant liquidity, combined with the measures it is taking to improve its structure, diversify clients, reduce costs and invest in modern technological systems, both operational and administrative, as well as an unbeatable holding of strategic assets, has enabled it to complete new projects and make investments and alliances with renowned companies.  In the short and medium-term these investments and alliances will generate new income with high profitability to benefit shareholders and collaborators.

With this strategy, Grupo TMM is investing in Mexico to continue to provide the best integrated transportation, logistics, warehousing and distribution services, which will result in significant profits for the company and benefits for the country.”

FIRST-QUARTER 2020 OPERATING AND FINANCIAL RESULTS

The following information with respect to 2019 includes the new accounting standard for leases under the International Financial Reporting Standards (IFRS-16) effective as of January 1, 2019.  All monetary amounts are in millions of Mexican Pesos.

Consolidated revenues for the first quarter of 2020 were $358.9 million, compared to $362.7 million reported in the same period of 2019, as a result of the effect in each business division by the low oil prices and health emergency due to COVID-19, partially offset by the Company’s client diversification strategy.

Consolidated operating income in the first quarter of 2020 was $15.7 million, compared to $28.8 million loss in the same period 2019.

Non-recurrent operations in the 2020 first quarter were income of $43.4 million, compared to $10.6 million expenses in the same period of 2019.

Consolidated EBITDA in the first quarter of 2020 was $58.9 million compared to $1.1 million reported in the same period of 2019.

Maritime revenues in the first quarter of 2020 were $205.6 million compared to $207.0 million in the same period last year, mainly due to the disincorporation of the Tugboats business, the reduction in the Shipyard segment of attended vessels due to the contraction in the oil industry, as well as lower volume of steel transported in Bulk Carriers; partially offset by increased income in the Offshore segment and a larger volume transported by Parcel Tankers.

Maritime operating income for the first quarter of 2020 was $6.8 million, compared to $14.9 million in the same period last year, mainly attributable to a lower margin in the mix of works in the Shipyard segment and the disincorporation of the Tugboats business; partially offset by a better margin in calls in the Bulk Carrier business due to costs efficiency, as well as an increase in productivity in the Offshore segment and Parcel Tankers.

Maritime EBITDA in the first quarter of 2020 was $19.1 million compared to $29.6 million reported in the same period last year; EBITDA margin was 9.3 percent.

Ports and Terminals revenues were $112.6 million in the first quarter of 2020 compared to $113.7 million in the same period last year, mainly due to a reduction of operations in the Maintenance and Repair of Containers segment because of decreased export activity, as well as the decrease of cruises attended and freighted cars in API Acapulco, due to the decrease of calls in Mexican ports and the contraction in automotive industry exports; partially offset by a larger volume of gravel maneuvered and a larger volume of operations in the Intermodal Terminal at Aguascalientes.

Ports and Terminals operating income in the first quarter of 2020 was $18.4 million compared to $18.6 million in the same period of 2019, mainly attributable to a significative decrease in calls of cruises and freighted cars in API Acapulco, as well as the result in the Maintenance and Repair of Containers segment by the decrease of the export activity; partially offset by a larger volume maneuvered in Tuxpan.

Ports and Terminals EBITDA was $28.9 million in the 2020 first quarter, compared to $23.5 million reported in the same period last year; EBITDA margin was 25.6 percent.

Warehousing Services revenue continued performing well, reporting $40.6 million in the first quarter of 2020, nearly the same level as the first quarter of 2019 which recorded $41.9 million.

DEBT
As of March 31, 2020, Grupo TMM has no net debt and has more free cash than total debt.  It should be noted that at the end of the first quarter of 2020, Short-Term Debt was $144.0 million and free cash was $467.0 million.

Total Debt*
Millions of Mexican Pesos
 
   As of 03/31/20As of 12/31/19
Short-Term Debt$144.0$139.2
Long-Term Debt 122.7 118.7
Total Debt $266.7$257.9
Cash 467.0 512.8
Net Debt$0.00$0.00
   
Short-Term Leases$38.8$60.6
Long-Term Leases 53.8 526.8
Leases IFRS 16$92.6$587.4
   
Stockholders’ Equity$2,435.8$2,422.8
Book value per share$23.84$23.71

*Book Value

Headquartered in Mexico City, Grupo TMM is a Mexican Maritime-management transportation and logistics Company.  Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of Maritime services port management and logistics. For more information on Grupo TMM, please visit the company’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.

Financial tables follow…

Grupo TMM, S.A.B. and Subsidiaries
Balance Sheet*
- Millions of Pesos -
     
 March 31,
 December 31, 
 2020 2019 
     
     
Current assets:    
Cash and cash equivalents 467.0   512.8  
Accounts receivable    
Accounts receivable – Net 544.5   507.4  
Other accounts receivable 485.4   421.8  
Prepaid expenses and others current assets 79.3   83.7  
Total current assets 1,576.3   1,525.6  
Property, machinery and equipment 2,613.4   2,629.3  
Cumulative Depreciation (338.7)  (345.8) 
Property, machinery and equipment – Net 2,274.7   2,283.5  
Rights of use 86.2   560.1  
Other assets 191.2   194.6  
Total assets 4,128.4   4,563.8  
     
Current liabilities:    
Bank loans and current maturities of long-term liabilities 144.0   139.2  
Leases short-term 38.8   60.6  
Suppliers 227.6   262.2  
Other accounts payable and accrued expenses 738.7   587.1  
Total current liabilities 1,149.2   1,049.0  
Long-term liabilities:    
Bank loans 122.7   118.7  
Leases long-term 53.8   526.8  
Deferred taxes 171.9   248.2  
Other long-term liabilities 195.1   198.2  
Total long-term liabilities  543.4 1,092.0 
Total liabilities 1,692.6   2,141.0  
Total stockholders´ equity 2,435.8  2,422.8  
Total liabilities and stockholders´ equity 4,128.4   4,563.8  

*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 Pesos -

   Three months ended
   March 31,
   2020 2019 
       
Maritime   205.6   207.0  
Ports and Terminals   112.6   113.7  
Warehousing Services   40.6   41.9  
Revenue from freight and services   358.9   362.7  
Maritime   (186.4)  (177.4) 
Ports and Terminals   (83.7)  (90.2) 
Warehousing Services   (30.8)  (42.0) 
Corporate and others   (0.1)  (0.1) 
Cost of freight and services   (301.1)  (309.8) 
Maritime   (12.3)  (14.7) 
Ports and Terminals   (10.4)  (4.9) 
Warehousing Services   (10.3)  (0.2) 
Corporate and others   (10.2)  (10.1) 
Depreciation and amortization   (43.3)  (29.9) 
Corporate expenses   (42.1)  (41.2) 
Maritime   6.8   14.9  
Ports and Terminals   18.4   18.6  
Warehousing Services   (0.5)  (0.3) 
Corporate and others   (10.3)  (10.2) 
Other income (expenses) - Net   43.4   (10.6) 
Operating gain (loss)   15.7   (28.8) 
Financial (expenses) income - Net   (9.2)  (18.0) 
Leases financial expenses    (14.9)  (13.8) 
Exchange gain (loss) - Net   (42.5)  12.1  
Net financial cost   (66.6)  (19.6) 
Loss before taxes   (51.0)  (48.4) 
Benefit (provision) for taxes   64.0   (0.5) 
Net gain (loss) for the period   13.0   (49.0) 
       
Attributable to:      
Minority interest   (0.7)  1.3  
Equity holders of GTMM, S.A.B.   13.7   (50.3) 
       
Weighted average outstanding shares (millions)  102.183  102.183  
Income (loss) earnings per share (pesos/share)  0.1  (0.5) 
       
Outstanding shares at end of period (millions)  102.183  102.183  
Income (loss) earnings per share (pesos/share)   0.1   (0.5) 

*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 Flow
- Millions of Pesos -

  Three months ended 
  March 31,
  2020 2019 
    
Cash flow from operation activities:   
Net income (loss) for the period 13.0  (49.0)
Charges (credits) to income not affecting resources:   
Depreciation & amortization 43.4  29.9  
Deferred taxes (76.3)  - 
Other non-cash items 30.9  24.4  
Total non-cash items (2.0) 54.3  
Changes in assets & liabilities (54.0) 16.0  
Total adjustments (56.0) 70.3  
Net cash provided by (used in) operating activities (43.0) 21.3  
    
Cash flow from investing activities:   
Proceeds from sales of assets 4.1 77.8 
Payments for purchases of assets (6.2) (7.9) 
Net cash (used in) provided by investment activities (2.1) 69.9  
    
Cash flow provided by financing activities:   
Short-term borrowings (net) (28.1) (20.0) 
Repayment of leases (33.6) (14.7) 
Repayment of long-term debt (15.4) (16.5) 
Net cash used in financing activities (77.1) (51.2) 
Exchange effect on cash 76.4  (3.5) 
  Net increase (decrease) in cash (45.8) 36.6  
Cash at beginning of period 512.8  318.2  
Cash at end of period 467.0  354.8  

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

TMM COMPANY CONTACT:AT DRESNER CORPORATE SERVICES:
Carlos Aguilar, Deputy CEO and CFONathan Abler (investors, analysts, media)
011-52-55-5629-8729714-742-4180
carlos.aguilarm@tmm.com.mx nabler@dresnerco.com
  
Mauricio Monterrubio, Investor Relations 
011-52-55-5629-8712 
mauricio.monterrubio@tmm.com.mx 

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