Grupo TMM Reports Fourth-Quarter and Full-Year 2009 Financial Results

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

25 Feb 2010

Grupo TMM, S.A.B., a Mexican intermodal transportation and logistics company, reported yesterday its financial results for the fourth quarter and full year of 2009. MANAGEMENT OVERVIEW Jose 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.

Source: Gruppo TMM