MEXICO CITY -- (Marketwire) -- 05/02/12 -- 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 first quarter of 2012.
José F. Serrano, chairman and chief executive officer of Grupo TMM, said, "In the 2012 first quarter, the continued economic downturn negatively impacted TMM's revenue and operating profit. Additionally, the appreciation of the peso against the dollar in the 2012 first quarter resulted in a significant net exchange loss, which negatively impacted net income, and in turn reduced the value of TMM's stockholders' equity in the quarter."
Serrano continued, "At Maritime, 2012 first-quarter operating profit was impacted by increased offhire days at product tankers compared to the same period last year. However, all of our product tanker vessels are currently employed. Additionally, we continue to strategically manage our fleet in favor of medium and long-term contracts. At offshore, 2012 first-quarter utilization was at 92.4 percent, and so far this year, we have renewed three offshore contracts for three-year terms each. To date, the Maritime division's backlog is $192.6 million.
"As recently announced, TMM acquired a shipyard at the Port of Tampico, which is working at full capacity and contributing to Maritime's revenue and profit. In the short term, the Company expects to have the necessary capabilities to build vessels at this facility, which is in line with PEMEX's intention to add 32 offshore vessels to its fleet, of which 21 are required to be Mexican built vessels."
Serrano concluded, "We remain optimistic of market improvements over the long term. We continue to work on the development of the container and liquids terminal at the Port of Tuxpan, which will strategically position TMM in this lucrative sector, and also in the addition of specialized offshore vessels to TMM's fleet, which will expand our already well positioned maritime business."
FIRST-QUARTER 2012 OPERATING AND FINANCIAL RESULTS
TMM's revenues in the first quarter of 2012 totaled $63.2 million compared to $65.9 million in the same period of last year. This decrease was partially offset by a 4.0 percent revenue increase at the Maritime division. First-quarter 2012 consolidated operating profit declined 17.0 percent over the same period of last year, largely due to profit reductions at Ports and Terminals, mainly attributable to decreased ship calls at Acapulco, and to operating losses at the Logistics division.
In the 2012 first quarter, consolidated EBITDA decreased 6.0 percent, or $0.9 million, to $17.3 million compared to $18.4 million in the 2011 first quarter. Interest expense in the 2012 first quarter was $15.9 million versus $17.2 million in the same period of 2011. Notwithstanding profit reductions in the 2012 first quarter, EBITDA minus interest expense resulted in free cash flow of $1.3 million compared to $1.2 million in the 2011 first-quarter.
Maritime revenue in the first quarter of 2012 increased 4.0 percent compared to the same period of last year. This increase was due to revenue improvements at offshore and at harbor tugs, and to the revenue contribution of the Company's recently acquired shipyard.
Operating profit at Maritime decreased 4.4 percent, or $0.4 million, due mainly to an operating loss at product tankers as a result of two vessels that for the larger part of the quarter were unemployed, increasing operating costs.
Comparing the 2012 first-quarter to the 2011 first quarter, offshore revenue increased 4.4 percent to $26.4 million due mainly to more revenue days and to operating one vessel in the spot market at a high daily tariff during the reported quarter. Product tanker revenue decreased 2.9 percent to $6.8 million mainly attributable to increased offhire days. Chemical tanker revenue decreased 9.1 percent to $4.0 million as a result of lower volumes, but operating profit improved to $0.3 million from a $0.4 million loss in the same period of last year. Harbor tugs revenue increased 16.7 percent mainly due to higher tariffs per ship call. Additionally, in March the division began providing tug services to a new Liquefied Natural Gas or LNG, terminal at Manzanillo. The Company anticipates these services to continue contributing to revenue and profit going forward.
Maritime's EBITDA for the 2012 first quarter fell 2.1 percent, or $0.4 million, to $18.6 million compared to $19.0 million in the 2011 first quarter. EBITDA margin remained fairly stable at 44.7 percent in the 2012 period in contrast to 47.8 percent in the 2011 period.
In the 2012 first quarter, Ports and Terminals revenue decreased 15.5 percent, and operating profit decreased 65.0 percent, both compared to the 2011 first quarter. Lower revenue and profit was mainly attributable to decreased ship calls at Acapulco, lower volumes at shipping agencies and to low volumes at the automotive segment in Puebla early in the quarter, which began to improve in mid-February. The maintenance and repair segment contributed $0.7 million of gross profit, remaining similar to the 2011 period.
At Logistics, operating income decreased 23.8 percent, or $0.5 million, on lower revenues of 17.3 percent when compared with the first quarter of 2011.
As of March 31, 2012, TMM's total debt was $806.5 million. The book value of the Company's Trust Certificates debt increased $68.0 million from December 31, 2011, as a result of an 8.2 percent appreciation of the peso against the dollar in the first quarter of 2012. On February 15, 2012, the Company paid approximately $30.4 million of its Trust Certificates debt, including a capital prepayment of $1.2 million.
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