Grupo TMM Reports First Quarter 2002 Financial Results; Volume Improvements in March and April; Forecasts for 2002 Remain on Target; TexMex Returns to Profitable Operations.Business Editors MEXICO Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. CITY--(BUSINESS WIRE)--April 26, 2002 Grupo TMM TMM The ISO 4217 currency code for the Turkmenistan Manet. , S.A. de C.V. (NYSE NYSE See: New York Stock Exchange : TMM and TMM/L), the largest Latin Lat·in n. 1. a. The Indo-European language of the ancient Latins and Romans and the most important cultural language of western Europe until the end of the 17th century. b. American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of multi-modal See multimodal. transportation and logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. company and owner of the controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Mexico's busiest railway, TFM TFM Traffic Flow Management TFM TeX Font Metrics TFM Transportacion Ferroviaria Mexicana TFM Trusted Facility Manual TFM Testicular Feminization TFM Total Facility Management TFM Tentative Final Monograph TFM Transaction Flow Manager TFM Thermally Fused Melamine , reported revenues from consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: operations of $243.7 million for the first quarter of 2002, compared to $237.8 million for the same period of 2001, an increase of 2.5 percent. Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (Earnings Before Income, Taxes and Depreciation) was $69.3 million for the quarter, compared to EBITDA of $65.2 million in the first quarter of 2001, a 6.3 percent increase. Grupo TMM's consolidated first quarter 2002 operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased $3.1 million quarter over quarter, from $38.7 million in 2001 to $41.8 million in 2002. Net income for the quarter increased $7.3 million from last year's results, from $4.6 million in 2001 to $11.9 million in 2002. First quarter 2002 was impacted by a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. net gain of $8.1 million from the sale of MexRail to TFM during the quarter. TFM's profit from the sale of the redundant Repetitive. See redundancy. line impacted Grupo TMM's net result by $12.1 million in the first quarter of 2001. Grupo TMM reported revenues from unconsolidated operations of $89.6 million for the first quarter of 2002, compared to $83.2 million for the same period of 2001, an increase of 7.7 percent increase. (Unconsolidated TMM includes its Specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. Maritime INTEREST, MARITIME. By maritime interest is understood the profit of money lent on bottomry or respondentia, which is allowed to be greater than simple interest because the capital of the lender is put in jeopardy. , Logistics, Port and Terminal and TexMex operations.) Unconsolidated EBITDA was $12.6 million for the quarter, compared to $13.4 million in the first quarter of 2001, a 6 percent decrease. Grupo TMM's unconsolidated first quarter 2002 operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. decreased $1 million quarter over quarter, from $7.1 million in 2001 to $6.1 million in 2002. Net income for the quarter increased $7.3 million from last year's results, from $4.6 million in 2001 to $11.9 million in 2002. The reduction in operating profit quarter over quarter was impacted by reduced volume at Grupo TMM's Port Operations during January January: see month. and February February: see month. , by one-time start-up Start-up The earliest stage of a new business venture. costs at new logistics programs and from lost revenue caused by customer technical work stoppages at four outsourced Outsourced is a modern day comedy of cross-cultural conflict and romance, directed by John Jeffcoat, released in 2007. Synopsis Todd Anderson (Josh Hamilton) spends his days managing a customer call center for American Novelty Products in Seattle, until his job, logistics manufacturing sites over a period of 14 different weeks. The company also reported that the merger of its "A" and "L" shares should occur shortly, pending the completion of governmental review. Moreover, the company anticipates completion of the 24.6 percent purchase of additional equity of Grupo TFM during the second quarter of 2002. The acquisition of the final piece of government equity at TFM, representing 20 percent, is still anticipated through the successful completion of a Value-Added tax value-added tax (VAT), levy imposed on business at all levels of the manufacture and production of a good or service and based on the increase in price, or value, provided by each level. lawsuit lawsuit: see procedure; tort. against the Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum government. Consistent with the company's previous remarks, this lawsuit is now before the Mexican Supreme Court. Resolution of the case is expected within the next two to four months. BUSINESS OUTLOOK Javier Javier (also Xabier) may refer to:
Segovia, city (1990 pop. 55,188), capital of Segovia prov., central Spain, in Castile-León, on the Eresma River. It stands on a rocky hill (3,297 ft/1,005 m high) crowned by the cathedral and the turreted alcazar (fortified , president of Grupo TMM, said, "While the first quarter is seasonally our poorest performing period of the year, we did see strong volume trends in March and April that, we believe, are indicative indicative: see mood. of the growth we discussed during our fourth quarter conference call. We remain committed to our goal of overall revenue growth of 10 percent and EBITDA of $345 million for the consolidated company in 2002. Based upon AAR Aar, river: see Aare. (Association of American Railroads rail·road n. 1. A road composed of parallel steel rails supported by ties and providing a track for locomotive-drawn trains or other wheeled vehicles. 2. ) data, TFM's volume in April improved 12.4 percent compared to the moving average for the previous 12 weeks. Additionally, we reduced our SG & A for the consolidated company by 9.4 percent, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite peso appreciation, and will continue to tighten and reduce all operating costs operating costs npl → gastos mpl operacionales and take selected price increases as necessary. "Specialized Maritime represents a true turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. story within the company," Segovia continued. "The elimination of unprofitable businesses in 2001 has resulted in an increased gross profit of 93.7 percent during the first quarter as compared to the same period of last year. This division also saw dramatically improved gross and operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . We are also encouraged by the increase the division saw in supply ship revenue in the quarter. This is representative of the tremendous opportunity that we believe exists for Mexican oil production to play a greater role in the development of Mexico and to be a supplier to international markets. "In our Port and Terminal Operations The reception, processing, and staging of passengers; thereceipt, transit, storage, and marshalling of cargo; the loadingand unloading of modes of transport conveyances; and themanifesting and forwarding of cargo and passengers todestination. See also operation; terminal. , revenues grew 4.8 percent in the first quarter, in spite of an overall decrease in volume. Through a reduction in SG & A and improved volumes, we project that revenues will continue to grow. TexMex saw a return to positive operating results and operating margin, reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of an $8 million investment made to line improvements throughout 2001. Finally, in the first quarter the Logistics division reported increased revenue of 18.6 percent and is projecting stronger operating margins in the second quarter." Segovia concluded, "Based upon the trends seen in March and April, we remain confident that revenue, operating profit, and EBITDA targets will be met in 2002, and our rail, port operations, specialized maritime, trucking, and logistics businesses will generate cash and build profitability in the near and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. ." 2002 OUTLOOK The company anticipates Grupo TMM to reach a consolidated EBITDA of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $345 million in 2002. The company projects year-over-year top-line growth in the range of 10 to 12 percent, and forecasts a consolidated operating profit of approximately $240 million. In addition, corporate overhead and interest charges are projected to continue to decline compared with 2001. All projections include consolidated financials from TFM.
CONSOLIDATED GRUPO TMM(a)
(a)All numbers in thousands
Grupo TMM - First Quarter 2002 vs. 2001
2002
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Specialized
First Quarter 2002 TFM Ports Maritime Logistics
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Revenue 157,472 24,191 33,137 19,108
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Costs 121,737 16,538 27,019 16,766
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Gross Result 7,653 6,118 2,342
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Gross Margin 31.6% 18.5% 12.3%
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SG & A (Estimate) 2,114 2,268 1,272
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Operating Results 35,735 5,539 3,850 1,070
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Operating Margin 22.7% 22.9% 11.6% 5.6%
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2002
----------------------------------------------------------------------
First Quarter
2002 Tex-Mex Other Total
----------------------------------------------------------------------
Revenue 13,311 (3,571) 243,648
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Costs 11,946 (3,466) 190,540
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Gross Result 1,365 (105) n.a.
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Gross Margin 10.3% 2.9% n.a.
----------------------------------------------------------------------
SG & A (Estimate) 1,173 4,449 11,276
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Operating Results 192 (4,554) 41,832
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Operating Margin 1.4% 127.5% 17.2%
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2001
----------------------------------------------------------------------
First Quarter 2001 TFM Ports Specialized Logistics
Maritime
----------------------------------------------------------------------
Revenue 156,085 23,133 29,956 16,075
----------------------------------------------------------------------
Costs 124,527 12,472 26,768 11,007
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Gross Result 10,661 3,188 5,068
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Gross Margin 46.1% 10.6% 31.5%
----------------------------------------------------------------------
SG & A (Estimate) 2,690 2,588 1,868
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Operating Results 31,558 7,971 600 3,200
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Operating Margin 20.2% 34.5% 2.0% 19.9%
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2001
----------------------------------------------------------------------
First Quarter
2001 Tex-Mex Other Total
----------------------------------------------------------------------
Revenue 14,614 (2,079) 237,784
----------------------------------------------------------------------
Costs 13,968 (2,101) 186,641
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Gross Result 646 22 n.a.
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Gross Margin 4.4% -1.1% n.a.
----------------------------------------------------------------------
SG & A (Estimate) 1,206 4,105 12,457
----------------------------------------------------------------------
Operating Results (560) (4,083) 38,686
----------------------------------------------------------------------
Operating Margin -3.8% 196.4% 16.3%
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FIRST QUARTER ACCOMPLISHMENTS POSITION GRUPO TMM FOR GROWTH AND IMPROVING CASH RETURNS -- Sold MexRail to TFM, consolidating operating control under TFM and simplifying the division's capital structure -- Initiated the purchase of 24.6 percent of Grupo TFM's equity from the Mexican government. This transaction is expected to be highly accretive and is anticipated to be closed prior to July -- Continued to position Port, Specialized Maritime, and Logistics for growth, as volume increases throughout the remainder of the year -- Explored options to extend Grupo TMM's debt maturity profile and enhance its balance sheet -- Positioned Grupo TMM for expanded outsourcing opportunities with Pemex by ship and rail -- Continued to pursue the TFM Value Added Tax lawsuit, the proceeds of which would be used to acquire the final portion of the Mexican government's equity at TFM Grupo TMM's Mexican-based business components include: 1) multi-modal logistics facilities throughout the country; 2) the TFM Railroad railroad or railway, form of transportation most commonly consisting of steel rails, called tracks, on which freight cars, passenger cars, and other rolling stock are drawn by one locomotive or more. ; 3) the Texas Mexican Railway The Texas Mexican Railway Company is a Class II railroad (formerly a Class I railroad) that operates as a subsidiary of Kansas City Southern Railway in Texas.[1] It is often referred to as the Tex-Mex, or TexMex, Railway. ; 4) ownership and management of key Mexican port facilities; 5) diverse trucking operations; 6) a specialized marine transport division; and 7) the continuation continuation - continuation passing style of alliances with leading transportation and distribution companies. These units collectively allow Grupo TMM to continue to market a full range of non-owned alliance assets. Grupo TFM TFM's net revenue grew one percent in the first quarter of 2002 over the same period of last year. EBITDA of $57.5 million in the quarter was 98 percent of plan for the quarter, and operating profit improved 13 percent in the quarter versus 2001. Additionally, March volume, operating profit, net profit and EBITDA margin were considerably higher than in the same month last year. While the quarter produced an operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: of 77.3 percent (operating margin of 22.7 percent), an improvement of 2.5 percent compared to the first quarter of 2001, March alone produced an operating ratio of 67.3 percent (operating margin of 32.7 percent), indicating a strong resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. of normal market conditions and a reflection of strong cost controls and fuel cost reductions. Based on improving volume and continued cost reductions, the rail operator reaffirmed its previously projected 2002 goals of 10 percent revenue growth, $290 million in EBITDA and an operating ratio of 71.6 percent. During the quarter, chemicals grew by 23 percent, automotive by -8 percent, agroindustrial ag·ro·in·dus·tri·al adj. Of or relating to the production or supply of various needs, such as water or power, for agriculture and industry. remained constant, industrials by 7 percent, cement cement, binding material used in construction and engineering, often called hydraulic cement, typically made by heating a mixture of limestone and clay until it almost fuses and then grinding it to a fine powder. and minerals by -8 percent and intermodal in·ter·mod·al adj. Relating to transportation by more than one means of conveyance, as by truck and rail: intermodal transport. by 10 percent. Intermodal, which receives 90% of its volume from the automotive segment, continued to grow from all types of truck to rail conversions, allowing for expansion of this segment. TexMex As announced in the first quarter, Grupo TMM and Kansas City Southern Industries Kansas City Southern Industries (NYSE: KSU) is the former diversified parent company of the Kansas City Southern Railway, a Class I railroad headquartered in the Quality Hill neighborhood of Kansas City, Missouri, USA. (KCSI KCSI Kansas City Southern Industries, Inc KCSI Knight Commander of the Star of India ) approved the sale of MexRail, Inc. to TFM. As a result of this first quarter sale, Grupo TMM received $32.6 million, $12.6 million net of previously reported results. MexRail, Inc. is the holding company for The Texas Mexican Railway Company (TexMex), which operates from Laredo Laredo (lərā`dō), city (1990 pop. 122,899), seat of Webb co., S Tex., on the Rio Grande; founded 1755, inc. 1852. It is a port of entry on the U.S.-Mexican border, with a thriving export-import trade and a tourist industry. to Corpus Christi Corpus Christi, in Christianity Corpus Christi [Lat.,=body of Christ], feast of the Western Church, observed on the Thursday after Trinity Sunday (or on the following Sunday). , and over trackage track·age n. 1. Railway tracks. 2. a. The right of one railroad company to use the track system of another. b. The charge for this right. rights to Beaumont, Texas Beaumont is a city and county seat of Jefferson County, Texas and is within the Beaumont-Port Arthur metropolitan area. As of the 2000 U.S. Census, the city had a population of 113,866. , where it connects with Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). Southern. MexRail also owns the northern half of the International Bridge at Laredo, the primary railway bridge connecting Mexico and the United States Relations between the United States and Mexico are among the most important and complex that each nation maintains. They are shaped by a mixture of mutual interests, shared problems, and growing interdependence. . The company anticipates an improvement in overall operating results following the consolidation of MexRail into TFM and through additional synergies from Kansas City Southern Rail operations. In the first quarter, TexMex saw a return to positive operating results and operating margin, reflective of an $8 million investment in line improvements throughout 2001. Port and Terminal Operations The company reported that worldwide shipping volume declined in the first quarter of 2002 by approximately 20 percent, affecting operations at Manzanillo Manzanillo, city, Cuba Manzanillo (mänsänē`yō), city (1994 est. pop. 98,000), Granma prov., SE Cuba, a port on the Guacanayabo Gulf of the Caribbean Sea. , Grupo TMM's largest port, and at other freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or operations. Volume declines negatively impacted demurrage A separate freight charge, in addition to ordinary shipping costs, which is imposed according to the terms of a carriage contract upon the person responsible for unreasonable delays in loading or unloading cargo. , as well as car carrier warehouse traffic at Acapulco Acapulco (äk'əp  l`kō), city (1990 pop. 515,374), Guerrero state, S Mexico. . However, car carrier and bulk
movements primarily composed of minerals to Mexican producers at
Veracruz Veracruz, city, MexicoVeracruz, city (1990 pop. 303,152), Veracruz state, E central Mexico, on the Gulf of Mexico. Rivaling Tampico as the country's main port, it is also the commercial and industrial center of an important oil region, as well as a major continued to increase during the quarter. In spite of an overall decrease in volume, the division's revenues grew 4.8 percent in the first quarter of 2002 compared to 2001. Due to the anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, in the fourth quarter of increased volume, costs, however, negatively impacted gross margin and operating margin for the quarter. The division anticipates a reduction in SG & A of $500,000 in the second quarter. Grupo TMM believes that port and terminal volume will improve in the second quarter and revenue will continue to grow. The company has planned construction of a third berth at Manzanillo in anticipation of two new transpacific trans·pa·cif·ic adj. 1. Situated on or coming from the other side of the Pacific Ocean. 2. Spanning or crossing the Pacific Ocean. services, making the port an improved facility for feeder ships Feeder vessels or feeder ships are ships of various sizes, but mostly understood to be sea going vessels with an average capacity of carrying 300-500 TEU. Feeders collect containers from different ports and transport them to central container terminals where they are loaded serving both North and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . Within the year, construction of the yard for the new berth should be completed. Additionally, the division reported an overall increase in the number of containers moved per crane crane, in zoology crane, large wading bird found in marshes in the Northern Hemisphere and in Africa. Although sometimes confused with herons, cranes are more closely related to rails and limpkins. per hour of 16 percent. Finally, passenger activity at Cozumel Cozumel (kōzə`mel), resort island, c.190 sq mi (490 sq km), Quintana Roo state, Mexico, in the Caribbean Sea off the E coast of the Yucatán peninsula. It is famed for its beaches and coral reef (declared a national park in 1996). increased 28% percent compared to the first quarter of last year, and Royal Caribbean has recently announced 50 additional ship calls per year at this port. Specialized Maritime The company reported that the elimination of unprofitable car carrier and bulk routes in 2001 in its Specialized Maritime division has produced an increase of 93.7 percent in gross profit for the first quarter of 2002, and an improvement of 7.9 percent in gross margin and 9.6 percent in operating margin in that period. Remaining car carrier segments were profitable in the quarter, but parcel tanker volume did decline caused by a reduced demand by chemical manufacturers. The company does anticipate that parcel tanker volume should normalize normalize to convert a set of data by, for example, converting them to logarithms or reciprocals so that their previous non-normal distribution is converted to a normal one. in the second quarter. Supply ship revenue in the first quarter of 2002 increased 70.1 percent compared to the same period of 2001, indicative of the development of Pemex oil production due to increased worldwide oil demand. Additionally, tugboat tugboat, small, strongly built vessel, used to guide large oceangoing ships into and out of port and to tow barges, dredging and salvage equipment, and disabled vessels. revenue continues to grow and remains highly profitable. Finally, the company anticipates renewal of its three oil tanker contracts with Pemex this year. Logistics The company reported an increase in revenue for its logistics division of 18.6 percent, or $3 million, in the first quarter of 2002 compared to the same period in 2001. However, costs incurred for leases of equipment and for new projects affected gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. and operating profit margin Operating profit margin The ratio of operating profit to net sales. , which decreased 19.2 percent and 14.3 percent respectively in the quarter versus last year. The division anticipates an operating margin of 15 percent in the second quarter. During the quarter, the company finalized See finalization. agreements with JB Hunt to end its cross-border trucking joint venture. The division reported average intermodal logistics movements of 2,000 loads per month during the quarter. The company anticipates continued growth in this area between Laredo and the interior cities of Mexico and between Monterrey Monterrey (mōntārā`), city (1990 pop. 1,068,996), capital of Nuevo León state, NE Mexico, the third largest city of Mexico. Located c.150 mi (240 km) S of Laredo, Tex. and Mexico City Mexico City Spanish Ciudad de México City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi , as truck to rail conversion continues at the border and within Mexico. New leasing agreements for intermodal equipment, including RoadRailer In railroad terminology a Roadrailer or RoadRailer is a highway trailer, or semi-trailer, that is specially-equipped for use in railroad intermodal service. Overview , will further reduce costs. Grupo TMM will broadcast its first quarter conference call and presentation for investors over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.videonewswire.com on Monday Monday: see week. , April 29, 2002, at 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . To listen to the live call, please go to the http://www.videonewswire.com/event.asp?id=4654 early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software, or dial (888) 609-7337 (domestic) or (706) 679-3378 (international). A replay will also be available for 90 days after the conclusion of the call at this web site. Headquartered in Mexico City, Grupo TMM is Latin America's largest multimodal Two or more modes of operation. The term is used to refer to a myriad of functions and conditions in which two or more different methods, processes or forms of delivery are used. On the Web, it refers to asking for something one way and receiving the answer another; for example requesting transportation company. Through its branch offices and network of subsidiary companies, Grupo TMM provides a dynamic combination of ocean and land transportation services. Grupo TMM also has a significant interest in Transportacion Ferroviaria Mexicana (TFM), which operates Mexico's Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. railway and carries over 40 percent of the country's rail cargo. Visit Grupo TMM's web site at www.grupotmm.com.mx and TFM's web site at www.gtfm.com.mx. Both sites offer Spanish/English language options. Included in this report are certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on the beliefs of the company's management, as well as on assumptions made by and information currently available to the company at the time such statements were made. The words "believe", "expect" and "anticipate" and similar expressions identify some of these forward-looking statements. Statements looking forward in time involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such factors include, among others, global, U.S. and Mexican economic and social conditions; the effect of the North American Free Trade Agreement North American Free Trade Agreement (NAFTA), accord establishing a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994. ("NAFTA NAFTA in full North American Free Trade Agreement Trade pact signed by Canada, the U.S., and Mexico in 1992, which took effect in 1994. Inspired by the success of the European Community in reducing trade barriers among its members, NAFTA created the world's ") on the level of U.S. -Mexico trade; the company's ability to convert customers from using trucking services to rail transport services The collective functions of layers 1 through 4 of the OSI model. ; competition from other rail carriers and trucking companies in Mexico; the company's ability to control expenses; and the effect of the company's employee training, technological improvements and capital expenditures on labor productivity, operating efficiencies and service reliability. Actual results could differ materially from those included in such forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of their respective dates. The company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These risk factors and additional information are included in the company's reports on Forms 6K and 20-F on file with the Securities and Exchange Commission. Financial Tables to Follow...
Grupo TMM, S.A. de C.V. and subsidiaries
(a) Consolidated Statement of Income
- millions of dollars -
----------------------------------------------------------------------
Three months ended
March, 31
2002 2001
----------------------------------------------------------------------
Revenue from freight and services 243.648 237.784
----------------------------------------------------------------------
Cost & expenses of operation (167.170) (164.245)
----------------------------------------------------------------------
Depreciation & amortization of
vessels and operating equipment (23.370) (22.396)
----------------------------------------------------------------------
53.108 51.143
----------------------------------------------------------------------
Administrative expenses (11.276) (12.457)
----------------------------------------------------------------------
Operating income 41.832 38.686
======================================================================
Financial (expenses) income,net (33.295) (33.647)
----------------------------------------------------------------------
Exchange and derivatives gain
(loss) - Net 1.508 2.753
----------------------------------------------------------------------
(31.787) (30.894)
----------------------------------------------------------------------
Other income (expense) - Net 2.224 52.566
----------------------------------------------------------------------
Income before taxes 12.269 60.358
======================================================================
Provision for taxes 14.429 (29.713)
----------------------------------------------------------------------
Income before minority interest 26.698 30.645
======================================================================
Minority interest (14.753) (26.084)
----------------------------------------------------------------------
Net income 11.945 4.561
----------------------------------------------------------------------
Weighted average outstanding shares
(millions) 56.963 56.698
Earnings per share (dollars / share) 0.21 0.08
Outstanding shares at end of period
(millions) 56.963 56.698
Earnings per share (dollars / share) 0.21 0.08
----------------------------------------------------------------------
(a) Prepared in accordance with International Accounting Standards
Grupo TMM, S.A. de C.V. and subsidiaries
(a) Consolidated Balance Sheet
- millions of dollars -
----------------------------------------------------------------------
March, 31 December, 31
2001 2001
----------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 117.678 87.628
----------------------------------------------------------------------
Accounts receivable
Customers 150.933 151.610
----------------------------------------------------------------------
Other accounts receivable 155.385 154.846
----------------------------------------------------------------------
Prepaid expenses 39.085 42.072
----------------------------------------------------------------------
Total current assets 463.081 436.156
======================================================================
ACCOUNTS RECEIVABLE AND MARKETABLE
SECURITIES (LONG-TERM) 83.345 81.892
======================================================================
VESSELS, EQUIPMENT AND PROPERTY 1,957.837 1968.289
======================================================================
OTHER ASSETS 98.689 99.426
======================================================================
DEFERRED TAXES 279.118 267.549
======================================================================
ASSETS OF DISCONTINUING BUSINESS 0.500 0.500
======================================================================
2,882.570 2,853.812
----------------------------------------------------------------------
CURRENT LIABILITIES
Bank loans and current maturities of
long term liabilities 363.239 332.957
----------------------------------------------------------------------
Suppliers 56.082 77.454
----------------------------------------------------------------------
Other accounts payable and accrued
expenses 165.131 133.814
----------------------------------------------------------------------
Total current liabilities 584.452 544.225
======================================================================
REVENUE AND COSTS OF VOYAGES IN
PROCESS-NET, AND OTHER DEFERRED
CREDITS 0.353 0.008
======================================================================
DEFERRED TAXES 25.668 28.798
======================================================================
LONG-TERM LIABILITIES
Bank loans and other obligations 964.965 953.171
----------------------------------------------------------------------
Other long-term liabilities 76.751 61.282
----------------------------------------------------------------------
Total long-term liabilities 1,041.716 1,014.453
======================================================================
1,652.189 1,587.484
----------------------------------------------------------------------
MINORITY INTEREST 1,046.709 1,089.397
======================================================================
STOCKHOLDER'S EQUITY
Capital stock 121.158 121.158
----------------------------------------------------------------------
Retained earnings 80.271 73.530
----------------------------------------------------------------------
Initial translation loss (17.757) (17.757)
----------------------------------------------------------------------
183.672 176.931
----------------------------------------------------------------------
2,882.570 2,853.812
----------------------------------------------------------------------
(a) Prepared in accordance with International Accounting Standards
Grupo TMM, S.A. de C.V. and subsidiaries
(a) Consolidated Statement of Cash Flow
- millions of dollars -
----------------------------------------------------------------------
Three months ended
March, 31
2002 2001
----------------------------------------------------------------------
OPERATIONS
Income before results 11.945 4.561
----------------------------------------------------------------------
Charges (credits) to income not
affecting resources:
Depreciation & amortization 27.468 26.473
----------------------------------------------------------------------
Minority interest 14.753 26.084
----------------------------------------------------------------------
Results on sale of assets 1.635 (25.486)
----------------------------------------------------------------------
Deferred income taxes (14.700) 29.645
----------------------------------------------------------------------
Other non-cash items 4.507 (19.395)
----------------------------------------------------------------------
Total non-cash items 33.663 37.321
----------------------------------------------------------------------
Changes in assets & liabilities 9.836 (11.219)
----------------------------------------------------------------------
Total adjustments 43.499 26.102
----------------------------------------------------------------------
Net cash (used in) provided by
operating activities 55.444 30.663
======================================================================
INVESTMENT
Proceeds from sales of assets (net) 0.402 1.456
----------------------------------------------------------------------
Payments for purchases of assets (54.358) (27.544)
----------------------------------------------------------------------
Dividends paid to minority
shareholders (0.673)
----------------------------------------------------------------------
Dividends from non-consolidates
subsidiaries 1.173
----------------------------------------------------------------------
Net cash (used in) provided by
investment activities (53.456) (26.088)
======================================================================
FINANCING
Short-term borrowings (net) 28.333 (0.074)
----------------------------------------------------------------------
Principal payments under capital
lease obligations (0.372) (4.775)
----------------------------------------------------------------------
Repayment of long-term debt (0.247) (10.981)
----------------------------------------------------------------------
Proceeds from issuance of
long-term debt 8.800
----------------------------------------------------------------------
New capital lease obligations 0.348 2.980
----------------------------------------------------------------------
Net cash (used in) provided by
financing activities 28.062 (4.050)
======================================================================
Net increase (decrease) in cash 30.050 0.525
----------------------------------------------------------------------
Cash at beginning of period 87.628 87.247
----------------------------------------------------------------------
Cash at end of period 117.678 87.772
----------------------------------------------------------------------
(a) Prepared in accordance with International Accounting Standards
Grupo TMM, S.A. de C.V. and subsidiaries
Statement of Income (without Railroad)
- millions of dollars -
----------------------------------------------------------------------
Three months ended
March, 31
2002 2001
----------------------------------------------------------------------
Revenue from freight and services 89.592 83.165
----------------------------------------------------------------------
Cost of freight and services (68.738) (60.278)
----------------------------------------------------------------------
Depreciation of vessels and
operating equipment (3.480) (3.302)
----------------------------------------------------------------------
17.374 19.585
----------------------------------------------------------------------
Administrative expenses (11.276) (12.457)
----------------------------------------------------------------------
Operating income 6.098 7.128
======================================================================
Financial (expenses) income,net (13.305) (11.642)
----------------------------------------------------------------------
Exchange and derivatives gain (loss)
- Net 0.693 (0.293)
----------------------------------------------------------------------
(12.612) (11.935)
----------------------------------------------------------------------
Other income (expense) - Net 7.996 (0.476)
----------------------------------------------------------------------
Income before taxes 1.482 (5.283)
======================================================================
Provision for taxes 11.365 5.185
----------------------------------------------------------------------
Income before minority interest 12.847 (0.098)
======================================================================
Minority interest (5.098) (4.911)
----------------------------------------------------------------------
Net income before results for
investment in TFM 7.749 (5.009)
======================================================================
Interest in TFM 4.196 9.570
----------------------------------------------------------------------
Net income 11.945 4.561
----------------------------------------------------------------------
Weighted average outstanding shares
(millions) 56.963 56.698
Earnings per share (dollars / share) 0.21 0.08
Outstanding shares at end of period
(millions) 56.963 56.698
Earnings per share (dollars / share) 0.21 0.08
----------------------------------------------------------------------
(a) Prepared in accordance with International Accounting Standards
Grupo TMM, S.A. de C.V. and subsidiaries
Balance Sheet (without Railroad)
- millions of dollars -
----------------------------------------------------------------------
March, 31 December, 31
2002 2001
----------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents 41.027 34.842
----------------------------------------------------------------------
Marketable securities
----------------------------------------------------------------------
41.027 34.842
----------------------------------------------------------------------
Accounts receivable
Customers 53.764 63.837
----------------------------------------------------------------------
Other accounts receivable 79.114 76.357
----------------------------------------------------------------------
Prepaid expenses 8.238 10.165
----------------------------------------------------------------------
Total current assets 182.143 185.201
======================================================================
ACCOUNTS RECEIVABLE AND MARKETABLE
SECURITIES (LONG-TERM)
======================================================================
VESSELS, EQUIPMENT AND PROPERTY 140.070 201.566
======================================================================
INVESTMENT IN TFM 397.961 406.309
======================================================================
OTHER ASSETS 43.386 43.134
======================================================================
DEFERRED TAXES 142.567 134.062
======================================================================
ASSETS OF DISCONTINUING BUSINESS 0.500 0.500
======================================================================
906.627 970.772
----------------------------------------------------------------------
CURRENT LIABILITIES
Bank loans and current maturities of
long term liabilities 68.195 68.021
----------------------------------------------------------------------
Suppliers 16.980 34.916
----------------------------------------------------------------------
Other accounts payable and accrued
expenses 102.015 135.295
----------------------------------------------------------------------
Total current liabilities 187.190 238.232
======================================================================
REVENUE AND COSTS OF VOYAGES IN
PROCESS-NET, AND OTHER DEFERRED
CREDITS 0.353 0.008
======================================================================
DEFERRED TAXES 22.351 28.798
======================================================================
LONG-TERM LIABILITIES
Bank loans and other obligations 379.858 380.096
----------------------------------------------------------------------
Other long-term liabilities 50.251 39.123
----------------------------------------------------------------------
Total long-term liabilities 430.109 419.219
======================================================================
640.003 686.257
----------------------------------------------------------------------
MINORITY INTEREST 82.952 107.584
======================================================================
STOCKHOLDER'S EQUITY
Capital stock 121.158 121.158
----------------------------------------------------------------------
Retained earnings 80.271 73.530
----------------------------------------------------------------------
Initial translation loss (17.757) (17.757)
----------------------------------------------------------------------
183.672 176.931
----------------------------------------------------------------------
906.627 970.772
----------------------------------------------------------------------
(a) Prepared in accordance with International Accounting Standards
Grupo TMM, S.A. de C.V. and subsidiaries
Statement of Cash Flow (without Railroad)
- millions of dollars -
----------------------------------------------------------------------
Three months ended
March, 31
2002 2001
----------------------------------------------------------------------
OPERATIONS
Income before results from discontinuing
business 11.945 4.561
----------------------------------------------------------------------
Charges (credits) to income not affecting resources:
Depreciation & amortization 6.536 6.349
----------------------------------------------------------------------
Interest in TFM (4.196) (9.570)
----------------------------------------------------------------------
Minority interest 5.098 4.911
----------------------------------------------------------------------
Results on sale of assets (8.209)
----------------------------------------------------------------------
Deferred income taxes (11.636) (5.253)
----------------------------------------------------------------------
Other non-cash items 1.875 2.260
----------------------------------------------------------------------
Total non-cash items (10.532) (1.303)
----------------------------------------------------------------------
Changes in assets & liabilities (0.356) 1.756
----------------------------------------------------------------------
Total adjustments (10.888) 0.453
----------------------------------------------------------------------
Net cash (used in) provided by operating
activities 1.057 5.014
======================================================================
INVESTMENT
Proceeds from sales of assets (net) 0.310 0.995
----------------------------------------------------------------------
Payments for purchases of assets (5.801) (13.108)
----------------------------------------------------------------------
Proceeds from discontinued business (net) 31.996
----------------------------------------------------------------------
Dividends paid to minority shareholders (0.673)
----------------------------------------------------------------------
Dividends from non-consolidates subsidiaries 1.173
----------------------------------------------------------------------
Refound Dividends and tax to Gtfm (20.000)
----------------------------------------------------------------------
Net cash (used in) provided by
investment activities 7.005 (12.113)
======================================================================
FINANCING
Short-term borrowings (net) (1.612) (1.786)
----------------------------------------------------------------------
Principal payments under capital
lease obligations (0.018) (0.016)
----------------------------------------------------------------------
(Repurchase) sale of accounts
receivable (net)
----------------------------------------------------------------------
Repayment of long-term debt (0.247) (0.438)
----------------------------------------------------------------------
Net cash (used in) provided by
financing activities (1.877) (2.240)
======================================================================
Net increase (decrease) in cash 6.185 (9.339)
----------------------------------------------------------------------
Cash at beginning of period 34.842 54.209
----------------------------------------------------------------------
Cash at end of period 41.027 44.870
----------------------------------------------------------------------
-- Prepared in accordance with International Accounting Standards
GRUPO TFM REPORTS FIRST QUARTER 2002 FINANCIAL RESULTS Grupo Transportacion Ferroviaria Mexicana, S.A. De C.V. reported that, in spite of the impact of the continued slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. of the Mexican and the U.S. economies and the persistent Permanent. See persistent data, persistent name and persistent object. persistent - persistence deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of international trade flow for Mexico of -8 percent, consolidated net revenues for the first quarter of 2002 were $157.5 million, which represents an increase of $1.4 million or 0.9 percent from revenues of $156.1 million for the same period in 2001. TFM's first quarter revenues for 2002 were further impacted by the continued strategy of the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. to reduce inventories and from a strike at the main steel mill in the Lazaro Cardenas Cár·de·nas A city of northern Cuba on the Bay of Cárdenas, an inlet of the Straits of Florida. Cárdenas is a processing and shipping center. Population: 93,900. Port, which lasted until January 17, 2002. Chemicals contributed positively, with pet coke traffic for cement plants increasing by 71 percent and new transloading centers contributing to the conversion of plastic pellets. Intermodal traffic increased as a result of the conversion from truck to rail, and from synergies with Grupo TMM companies. Industrial segments contributed with increased volume from conversion of paper products and from home appliances. In March, TFM experienced some recovery, especially in the domestic market, which has continued into April. Consolidated operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the first quarter of 2002 decreased to $121.7 million from $124.5 million for the same period in 2001. The decrease in operating expenses resulted from various cost reduction actions in different areas of the company, especially in salaries and fringe benefits fringe benefits, n.pl the benefits, other than wages or salary, provided by an employer for employees (e.g., health insurance, vacation time, disability income). , car hire and insurance, the result of a reduction of personnel in late 2001, and from more efficient operations. Operating expenses benefited by a 38.3 percent decrease in fuel costs as a consequence of diminishing di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. diesel fuel prices in the first quarter of 2002 compared to the first quarter of 2001. Consolidated operating profit for the first quarter of 2002 was $35.7 million, representing an increase of $4.1 million from the first quarter of 2001. The increase in consolidated operating profit for the first quarter of 2002 was due mainly to the effects of cost reduction actions and from a decrease in fuel prices. As a result of the foregoing, TFM's operating ratio (operating expenses as a percentage of revenues) for the first quarter of 2002 was 77.3 percent, which represents an improvement of 2.5 points from the first quarter of 2001. During March, TFM attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. an operating ratio of 67.3 percent, the best in the company's history. FINANCIAL EXPENSES Net financial expenses incurred in the first quarter of 2002 were $19.2 million and include $12 million of amortization from discount debentures. TFM recognized a $0.8 million foreign exchange gain resulting from an appreciation of the peso against the dollar during the first quarter of 2002. NET INCOME Net income for the first quarter of 2002 was positively impacted by a deferred income tax gain of $3.1 million, attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk mainly to the indexation of the tax loss carry-forward See Loss Carry-Back. (NOL's). EBITDA EBITDA for the first quarter of 2002 was $57.5 million, which represented an increase of $5.3 million or 10.2 percent from EBITDA for the first quarter of 2001. EBITDA margin (EBITDA as a percentage of revenues) for the first quarter of 2002 was 36.5 percent. However, EBITDA margin during the month of March was 45.3 percent, a result of increased truck to rail conversion and a stringent cost discipline policy. ACQUISITION OF MEXRAIL During March 2002, TFM acquired the MexRail company that includes the TexMex railroad and the Laredo railroad-bridge. The balance sheet shown in this release includes the consolidation of the MexRail into TFM. As a result of the consolidation, the assets and the liabilities of Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (Grupo TFM) increased $11.3 million. LIQUIDITY AND CAPITAL RESOURCES As of March 31, 2002, accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying decreased by 20.1 percent to $175.8 million from $ 219.9 million at December December: see month. 31, 2001. This decrease is mainly a result of the recovery of a large interline in·ter·line 1 tr.v. in·ter·lined, in·ter·lin·ing, in·ter·lines To insert between printed or written lines. in account for $17.5 million, as well as from tax refunds Tax refund Money back from the government when too much tax has been paid or withheld from a salary. . The balance also reflects restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of the operations due to the annulment annulment Legal invalidation of a marriage. It announces the invalidity of a marriage that was void from its inception. It is to be distinguished from dissolution or divorce. To justify annulment, the marriage contract must have a defect (e.g. of certain provisions previously approved in the company's shareholder meeting held at the end of 2001. Outstanding trade receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed were below 30 days, which meets TFM's objectives in the management of working capital. Accounts receivable include, among other items, VAT VAT See: Value-added tax VAT See value-added tax (VAT). (Value-Added Tax) and IEPS IEPS International Education Programs Service (US) IEPS Institute for Education Policy Studies IEPS Institute for Environmental Policy and Stewardship (Canada) (fuel tax) credits from ongoing business transactions. As of March 31, 2002, accounts payable and accrued expenses Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. were $105.4 million, an increase of $9.3 million or 9.7 percent from December 31, 2001. From this balance, $10.5 million corresponds to MexRail. TFM's capital expenditures were $13.6 million during the first quarter of 2002. At the end of the first quarter, TFM had an outstanding net debt balance of $803.5 million, including the discounted value of a $295.0 million U.S. commercial paper issuance, and $76.6 million of cash and cash equivalents. TFM refinanced its Senior Secured Credit Facility through the U.S. Commercial Paper Program backed by a letter of credit in September September: see month. 2000, resulting in a substantial reduction in debt service. The U.S. Commercial Paper Program matures in September 2002, and TFM intends to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. and extend the program at that time. During March 2002, a ruling from a Mexican court was issued which annulled Grupo TFM's Ordinary Stockholder Meeting held on December 21, 2001. As a consequence, resolutions passed at that meeting were annulled , canceling the dividend paid to TFM's shareholders and the lease of the Laredo Railroad-Bridge. Finally, the company anticipates completion of the 24.6 percent purchase of equity owned by FNM FNM Faith No More (band) FNM Fábrica Nacional de Motores (Brazilian truck/motor company)) FNM Free National Movement (Bahamas) FNM Foot and Mouth in Grupo TFM during second quarter of 2002. This report contains historical information and forward-looking statements regarding the current belief or expectations of the company concerning the company's future financial condition and results of operations. The words "believe", "expect" and "anticipate" and similar expressions identify some of these forward-looking statements. Statements looking forward in time involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, global, U.S. and Mexican economic and social conditions; the effect of the North American Free Trade Agreement ("NAFTA") on the level of U.S.-Mexico trade; the company's ability to convert customers from using trucking services to rail transport services; competition from other rail carriers and trucking companies in Mexico; the company's ability to control expenses; and the effect of the company's employee training, technological improvements and capital expenditures on labor productivity, operating efficiencies and service reliability. Readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of their respective dates. The company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, reference should be made to the company's filings with the Securities and Exchange Commission, including the company's most recent Annual Report on Form 20-F. Financial Tables to Follow...
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V.
and Subsidiary
(a)Consolidated Statement of Income
(Amounts expressed in thousands of US dollars)
(Unaudited)
Three months ended
March 31,
----------------------------------
2002 2001
---------------- -----------------
Transportation revenues 157,472 $156,085
---------------- ----------------
Operating expenses (101,848) (105,433)
Depreciation and amortization (19,890) (19,094)
---------------- ----------------
(121,738) (124,527)
---------------- ----------------
Operating profit 35,734 31,558
---------------- ----------------
Other income (expenses) - net (5,772) 53,042
---------------- ----------------
Financial expenses - net (19,990) (22,005)
Exchange profit - net 815 3,046
---------------- ----------------
Net comprehensive financing cost (19,175) (18,959)
---------------- ----------------
Income before taxes 10,787 65,641
and minority interest
Deferred income tax 3,064 (34,898)
---------------- ----------------
Income before minority interest 13,851 30,743
Minority interest (2,935) (6,146)
---------------- ----------------
Net income for the period $10,916 $24,597
---------------- ----------------
(a) The consolidated financial statements were prepared in accordance
with International Accounting Standards
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V.
and Subsidiaries
(a)Consolidated Balance Sheet
(Amounts expressed in thousands of US dollars)
(Unaudited)
(1) March 31, December 31,
2002 2001
--------------- ---------------
Assets
Current assets
Cash and cash equivalents $76,653 $52,786
Accounts receivable - net 175,830 219,939
Materials and supplies 21,911 22,262
Other current assets 8,937 9,645
--------------- ---------------
Total current assets 283,331 304,632
Due from Mexican Government - net 83,345 81,892
Concession, property
and equipment - net 1,824,166 1,773,361
Other assets 51,447 11,942
Deferred income tax 133,234 133,487
--------------- ---------------
Total assets $2,375,523 $2,305,314
--------------- ---------------
Liabilities and stockholders' equity
Current liabilities
Commercial paper and capital
lease due within one year $295,044 $264,936
Accounts payable and
accrued expenses 105,382 96,125
--------------- ---------------
Total current liabilities 400,426 361,061
Long-term debt and capital
lease obligation 585,107 573,075
Other non-current liabilities 25,730 20,769
--------------- ---------------
Total long-term liabilities 610,837 593,844
--------------- ---------------
Total liabilities 1,011,263 954,905
--------------- ---------------
Minority interest 394,524 391,589
--------------- ---------------
Stockholders' equity
Capital stock 807,008 807,008
Retained earnings 162,728 151,812
--------------- ---------------
Total stockholders' equity 969,736 958,820
--------------- ---------------
Total liabilities and
stockholders' equity $2,375,523 $2,305,314
--------------- ---------------
(1) It includes Mexrail Inc. and Subsidiary.
(a)The consolidated financial statements were prepared in accordance
with International Accounting Standards
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V.
and Subsidiary
(a)Consolidated Statement of Cash Flows
(Amounts expressed in thousands of US dollars)
(Unaudited)
Three months ended
--------------------------------
March 31,
--------------------------------
2002 2001
-------------- -------------
Cash flows from operating activities:
Net income for the period $10,916 $24,597
-------------- -------------
Adjustments to reconcile net
income to net cash provided
by operating activities :
Depreciation and amortization 19,890 19,094
Discount on senior
secured debentures 12,032 10,733
Amortization of deferred
financing costs 794 783
Other non cash item 1,773 (14,774)
Changes in working capital 25,383 (12,739)
-------------- -------------
Total adjustments 59,872 3,097
-------------- -------------
Net cash provided by
operating activities 70,788 27,694
-------------- -------------
Cash flows from investing activities:
Investment in Mex-Rail (64,000) 0
Acquisitions of property
and equipment - net (13,607) (14,359)
Sale of equipment 96 51
-------------- -------------
Net cash used in investing activities (77,511) (14,308)
-------------- -------------
Cash flows from financing activities:
Proceeds from (payments of)
commercial paper - net 29,945 (1,743)
Proceeds from capital
lease obligations 0 2,980
Principal payments under
capital lease obligations 0 (4,759)
-------------- -------------
Net cash used in by
financing activities 29,945 (3,522)
-------------- -------------
Increase in cash and cash equivalents 23,222 9,864
Cash and cash equivalents
Beginning of period 52,786 33,038
-------------- -------------
End of period $76,008 $42,902
-------------- -------------
(a)The consolidated financial statements were prepared in accordance
with International Accounting Standards
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