Grupo TMM Reports First-Quarter 2006 Financial Results.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 -- Grupo TMM TMM The ISO 4217 currency code for the Turkmenistan Manet. , S.A. (NYSE NYSE See: New York Stock Exchange :TMM)(BMV BMV Bolsa Mexicana de Valores BMV Bureau of Motor Vehicles BMV Bundesministerium für Verkehr (German: Federal Ministry of Transport) BMV Below Market Value BMV Brome Mosaic Virus BMV Bedside Medication Verification :TMM A): --Debt reduction of $331 million in Q1 --Guidance reaffirmed --Corporate SG&A to be reduced by a further 1.5% of revenues in 2006 --Acquisition of a modern 12,000 horse-power anchor handling vessel Grupo TMM, S.A. (NYSE:TMM)(BMV:TMM A)("TMM"), a Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum multi-modal See multimodal. transportation and logistics Company, reported earnings of $1.39 per share for the first quarter of 2006 compared to earnings of $2.73 per share a year ago. TMM reported the following results for the first quarter: --Revenue of $62.4 million, down 3.3 percent from $64.5 million the previous year. Revenues in the first quarter of 2005 included $4.9 million in revenue from the Company's port assets in Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. , which were sold in the fourth quarter of 2005 and were impacted by changes in accounting policies for recording shipping agencies results. --Operating income of $1.7 million, up 41.7 percent from 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. of $1.2 million a year ago --Operating margin of 2.8 percent, up 1.0 percentage point from the previous year --Net income of $79.1 million compared to net income in the first quarter of 2005 of $156.6 million. Of first quarter 2006 total net income, $0.2 million was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to minority interest and $78.9 million was attributable to Grupo TMM shareholders. Of first quarter 2005 total net income, $0.8 million was attributable to minority interest and $155.8 million was attributable to Grupo TMM shareholders. Net interest expense of $7.0 million was recorded in the first quarter of 2006, compared to net interest expense of $19.9 million in the first quarter of 2005. Comprehensive financial expenses of $24.5 million, including $17.2 million attributable to the amortization of expenses associated with the Company's 2007 Notes, were recorded in the first quarter of 2006 compared to comprehensive financial expenses of $23.5 million incurred in the first quarter of 2005, which included $3.4 million attributable to the amortization of expenses related to the Company's securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. program and expenses associated with the Company's 2007 Notes. SG&A increased $1.0 million in the first quarter of 2006 to $8.4 million compared to the 2005 period. This increase was due mainly to peso appreciation of $0.6 million, legal expenses of $0.3 million and $0.1 million in additional Sarbanes Oxley Oxley refers to several things: People
TMM will reduce its current annual corporate SG&A by a further 1.5 percent of revenue during 2006, which will provide approximately $5.0 million in additional free cash flow on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis per year. Cost reductions will include the simplification of procedures at all levels impacted by corporate activities. Additionally, each operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon is exploring additional cost-cutting measures, which should be formally announced in the Company's second quarter release. These steps will insure Insure can mean:
In the first quarter of 2006, the Company reported a $100.1 million gain mainly attributable to the $110.0 million contingent payment received from 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 ("KCS KCS keratoconjunctivitis sicca. "), which was due upon the final resolution of Kansas City Southern de 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. , S.A. de C.V.'s VAT/Put lawsuits. In the first quarter of 2005, the Company reported a $176.4 million gain, net of income taxes, which resulted from the sale of the Company's 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. assets to KCS. Additionally, shareholder equity improved $76.1 million in the first quarter of 2006. 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, "During the first quarter we took steps to grow our revenue base, greatly reduce our outstanding debt and set the stage for improved 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. performance during the remaining quarters of this year. The significant reduction of debt and the acquisition of minority interest joined with our intent to reduce SG&A will ensure that we improve performance and reach our goal of an annual EBITDA run rate for TMM of $63 million by the beginning of 2007. "In the quarter, we reduced our 2007 Notes by $331 million, leaving $157 million outstanding. As we have previously announced, we continue to explore ways to modify our outstanding debt, lower our interest costs and free up working capital, which would then allow the Company to increase its earnings and create options for longer-term growth. When a solution has been finalized See finalization. in this regard, we will make an announcement. Segovia continued, "Additionally, we purchased the minority interest in our offshore vessels business segment and agreed to purchase the minority interest in our harbor towing business segment. These two transactions, joined with last July's purchase of two double-hull tankers, the operation of parcel tankers, and other spot market tanker vessels currently in operation, will provide a projected annual EDITDA run rate of $56 million for this division by the end of 2006. As oil exploration in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east continues to flourish, the prospects for rapid growth in this division will continue into the next decade. "In the first quarter, our Logistics division exceeded its gross profit goal of $2.0 million. Operating profit was positive compared to the last three quarters, which amounted to a total operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $2.3 million. The division's operating profit was affected by the termination of a contract between Kansas City Southern de Mexico and Ford Motor Company in late March, in which TMM Logistics participated as a subcontractor One who takes a portion of a contract from the principal contractor or from another subcontractor. When an individual or a company is involved in a large-scale project, a contractor is often hired to see that the work is done. . In the first quarter total one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges against operating profit were $1.2 million. Logistics is now well positioned for sustainable growth with the addition of new trucks that came online in March, yard improvements for maintenance and repair facilities completed during the first quarter, and other new services and product lines to be added. The previously announced estimated annual EBITDA run rate of $22 million for this division is on target. "Our Ports division remains consistent, and an estimated annual EBITDA run rate of $2.6 million will be 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. . Starting in the first quarter, we will only report net revenues at our shipping agencies segment due to changes in accounting standards." Segovia concluded, "As we move into the remainder of 2006, we see a Company focused on two major growth segments: 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. , based primarily upon oil exploration and transportation of oil products; and the growth of imports, exports, and distribution of products within Mexico. We believe both of these markets will provide TMM with opportunities to position its assets and expand current customer bases, which will accelerate our revenue and earnings. During this first quarter we have defined clear courses of action. We must now focus on execution." SEGMENT RESULTS Specialized Maritime In the first quarter, Specialized Maritime reported: --Revenue of $31.2 million, up 4.3 percent from last year's $29.9 million --Operating income of $5.5 million, up 77.4 percent from $3.1 million a year ago --Operating margin of 17.6 percent, up 7.3 percentage points from the previous year In the first quarter of 2006, Specialized Maritime's gross profit and gross margin increased 69.0 percent and 8.4 percentage points respectively, compared to the first quarter of 2005. In the first quarter of 2006, offshore revenues decreased 15.5 percent to $12.4 million compared to the same period last year due mainly to a reduction of vessel activity under time charter contracts compared to the same period last year. Additionally, first quarter 2006 revenues were negatively impacted by $0.5 million due to a significant increase of cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. dry dock maintenance compared to the same period last year. However, in the first quarter of 2006, costs decreased 21.1 percent and gross margin increased 2.6 percentage points compared to the same period last year, mainly due to the effect of cost reductions resulting from the conversion of vessels from a leased to an owned status in early March. In the first quarter of 2006, product tanker revenues increased 56.4 percent to $9.3 million compared to the same period last year, gross profit increased from $0.4 million to $2.8 million, and gross margin increased 23.1 percentage points. These increases were mainly due to contracted revenue from two new cabotage cab·o·tage n. 1. Trade or navigation in coastal waters. 2. The exclusive right of a country to operate the air traffic within its territory. contracts, which commenced last July July: see month. . These two new contracts generated EBITDA of $4.0 million in the three months ended March 31, 2006. In the first quarter of 2006, parcel tanker revenues decreased 7.5 percent to $6.7 million compared to the same period last year, as the division operated one less vessel in the first quarter of 2006 compared to the same period last year due to a decrease in demand for these services. Increased fuel costs during the first quarter of 2006 did not have a significant impact on this business segment, as the Company successfully negotiated a fuel surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. with several of its clients, which offset fuel price increases. During the first quarter of 2006, harbor towing revenues increased 44.3 percent to $2.8 million and gross profit increased 42.8 percent compared to the first quarter of 2005. These increases were mainly due to an increase of 34.0 percent in vessel calls at the Port of 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. compared to the first quarter of 2005. In the first quarter of 2006, costs increased $0.3 million due to the addition of one 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. in October October: see month. 2005, under a two-year bareboat bare·boat n. A boat, such as a yacht, that is chartered without a skipper or crew and usually without provisions. bare contract. In addition, on April 27, 2006 the Company purchased a modern, 12,000-horsepower anchor handling vessel built in 2004 at a price of $27.2 million from a Seacor subsidiary. The Company financed this purchase through a seven-year loan facility of $21.8 million. This new vessel will be on a two-year time charter contract with Pemex. Ports and Terminals For the first quarter, Ports and Terminals reported: --Revenue of $2.1 million, down 76.4 percent from last year's $8.9 million --Operating income of $0.5 million, down 44.4 percent from $0.9 million a year ago --Operating margin of 25.5 percent, up 15.8 percentage points from the previous year In the first quarter of 2006, the revenue decrease in Ports and Terminals was impacted by the elimination of $4.9 million of revenue generated by the Company's port assets in Colombia, which were sold in the fourth quarter of 2005 and also impacted by changes in accounting policies at the shipping agencies business segment. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the revenue loss, this division's gross margin increased 22.5 percentage points compared to the first quarter last year. In the first quarter of 2006, revenues at Acapulco Acapulco (äk'əp  l`kō), city (1990 pop. 515,374), Guerrero state, S Mexico. decreased $0.6
million to $1.4 million compared to the same period last year. This
decrease was mainly due to a 39.6 percent decrease in cruise ship
revenues, partially offset by an increase of 4.2 percent in car handling
revenues at this port.
Cruise ship revenues at this port decreased in the first quarter of 2006 compared to the same period last year mainly attributable to a cruise line A cruise line is a company that operates cruise ships. Cruise lines have a dual character; they are partly in the transportation business, and partly in the leisure entertainment business, a duality that carries down into the ships themselves, which have both a crew headed by the that cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. several calls during the first quarter due to technical problems, which have since been resolved, and to another cruise line that canceled three calls as it switched routes from the Pacific to other destinations. Car handling volumes increased 26.0 percent in the first quarter of 2006 compared to the same period last year, as the division handled 6,813 automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of units to Japan and Asia, compared to 5,406 in the first quarter of last year. Logistics In the first quarter, Logistics reported: --Revenue of $29.2 million, up 13.2 percent from last year's $25.8 million --Operating income of $0.7 million, down 46.2 percent compared to operating income of $1.3 million a year ago --Operating margin of 2.3 percent, down 2.8 percentage points from the previous year The division's implementation of a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan continued during the first quarter of 2006, and the division posted positive operating profits for the first time in four quarters. Gross profit of $2.3 million demonstrated a $1.3 million improvement over the fourth quarter results of 2005. Had it not been for one-time charges of $1.2 million, operating profit would have been $1.9 million, an improvement of $2.8 million compared to fourth quarter of 2005. Comparing the first quarter of 2006 to the same period last year, revenues increased at several segments including: trucking 49.2 percent, automotive 10.3 percent, and dedicated inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound logistics services for major auto manufacturers 64.1 percent. Revenue increases in the trucking division were mainly attributable to the acquisition of 80 additional trucks and 60 additional trailers which were received in late March, as well as to increased efficiencies in the utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of existing equipment. Revenue increases in the automotive division were mainly due to a 25.2 percent increase in tariffs This is a list of tariffs and trade legislation:
adj. Outward bound; headed away: outbound trains. Adj. 1. outbound - that is going out or leaving; "the departing train"; "an outward journey"; "outward-bound ships" logistics for Volkswagen “VW” redirects here. For the airline using IATA designator VW, see Aeromar. Volkswagen AG (ISIN: DE0007664005), or VW, is an automobile manufacturer based in Wolfsburg, Germany. resulting in higher volumes. Revenue increases in dedicated logistics for major auto manufacturers resulted from the continued increase in exports of the new Volkswagen Bora bo·ra n. A violent, cold, northeasterly winter wind on the Adriatic Sea. [Italian dialectal, from Latin Bore model and to the increasing volume of automobiles No invention has so transformed the landscape of the United States as the automobile, and no other country has so thoroughly adopted the automobile as its favorite means of transportation. now being manufactured in Mexico instead of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , including certain models for GM, Chrysler Chrys·ler , Walter Percy 1875-1940. American automobile manufacturer who founded the Chrysler Corporation (1925). and Ford. For the full year of 2006, this division expects to generate operating profit of $10.0 million and gross profit of $14.0 million from its current asset base. With additional services and assets to be added in warehousing and freight forwarding in 2006, the division' s estimated annual EBITDA run rate will be $22.0 million by the beginning of 2007. BALANCE SHEET IMPROVEMENTS As of March 31, 2006, TMM's total debt was $296.4 million compared to $560.7 million at December December: see month. 31, 2005. It should be noted that the Company's total debt is supported by $196.0 million in a combination of cash on hand, marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has and 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 from KCS, and with 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. contracted revenues. The significant reduction in debt during the first quarter is the result of the Company's cash tender offer of its outstanding Senior Secured Notes due 2007 ("the Notes") on January January: see month. 2006. The Company paid down approximately $331.0 million aggregate principal amount of the Notes plus approximately $16.0 million in interest, which reduced the outstanding principal amount of the Notes to approximately $157.0 million. As a result of the tender offer and pursuant to the terms of the 2007 Notes Indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. , the interest rate of the Notes outstanding was reduced 1.0 percent commencing February February: see month. 1, 2006, such that if the Company elects to pay interest in cash, the Notes will bear interest at 9 1/2 percent per annum Per annum Yearly. . On February 1, 2006, the Company paid the 2007 Notes coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer in cash. ACQUISITION OF MINORITY INTERESTS On March 6, the Company announced that it had purchased Seacor's 40 percent interest in Maritima Mexicana, S.A. de C.V. ("Marmex"), a joint venture Company dedicated to providing maritime offshore services in Mexico's Gulf Coast. As part of this transaction, TMM also purchased five offshore vessels owned by Seacor and flagged the vessels Mexican, and at the same time converted three additional offshore vessels from leased to owned status. All eight vessels are working under time charter contracts supporting offshore oil exploration and production activities in the Gulf of Mexico. The aggregate value of these transactions was $77 million, of which $70 million was financed. Interest expense will be $6.0 million during the first year going forward, to be reduced in subsequent periods as principal is repaid. In addition, on March 8, the Company announced that it had agreed to purchase the remaining 40 percent minority stake held by the Dutch Company Smit in Servicios Mexicanos en Remolcadores, S.A. de C.V. ("SMR (Specialized Mobile Radio) The communications services used by police, ambulances, taxicabs, trucks and other delivery vehicles. Throughout the U.S., approximately 3,000 independent operators are licensed by the FCC to offer this service, which provides always-on "), a joint venture Company dedicated to providing harbor towing services at the Port of Manzanillo, Mexico. The agreed purchase price was $9.5 million.
DIVISIONAL RESULTS (All numbers in thousands)
---------------------------------------------
First Quarter 2006
----------------------------------------------------------------------
Specialized
Ports Maritime Logistics Others Total
----------------------------------------------------------------------
Revenues 2,104 31,189 29,159 (60) 62,392
----------------------------------------------------------------------
Costs 1,181 24,376 26,904 (146) 52,315
----------------------------------------------------------------------
Gross Result 923 6,813 2,255 86 10,077
----------------------------------------------------------------------
Gross Margin 43.9% 21.8% 7.7% 143.3% 16.2%
----------------------------------------------------------------------
SG & A (Estimate) 387 1,321 1,573 5,080 8,361
----------------------------------------------------------------------
Operating Results 536 5,492 682 (4,994) 1,716
----------------------------------------------------------------------
Operating Margin 25.5% 17.6% 2.3% n.a. 2.8%
----------------------------------------------------------------------
(a) First Quarter 2005
----------------------------------------------------------------------
Specialized
Ports Maritime Logistics Others Total
----------------------------------------------------------------------
Revenues 8,888 29,930 25,760 (33) 64,545
----------------------------------------------------------------------
Costs 6,988 25,904 23,196 (27) 56,061
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Gross Result 1,900 4,026 2,564 (6) 8,484
----------------------------------------------------------------------
Gross Margin 21.4% 13.5% 10.0% (18.2%) 13.1%
----------------------------------------------------------------------
SG & A (Estimate) 1,036 943 1,246 4,092 7,317
----------------------------------------------------------------------
Operating Results 864 3,083 1,318 (4,098) 1,167
----------------------------------------------------------------------
Operating Margin 9.7% 10.3% 5.1% n.a. 1.8%
----------------------------------------------------------------------
(a) Under Continuing Operations
CONFERENCE CALL TMM's management will host a conference call and Webcast to review financial and operational highlights on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , April 28 at 11:00 a.m. Eastern Time. To participate in the conference call, please dial 800-219-6110 (domestic) or 303-262-2075 (international) at least five minutes prior to the start of the event. Accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. visuals and a simultaneous Webcast of the meeting will be available at http://www.actioncast.acttel.com, Event ID: 33091. A replay of the conference call will be available through May 5, at 11:59 p.m. Eastern Time, by dialing 800-405-2236 or 303-590-3000, and entering conference ID 11057517. On 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 a replay will be available for 30 days at http://www.actioncast.acttel.com, Event ID: 33091. Headquartered in Mexico City, TMM is a 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 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, TMM provides a dynamic combination of ocean and land transportation services. Visit TMM's web site at www.grupotmm.com. The site offers Spanish/English language options. Included in this press release 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 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 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. 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 overhead costs see fixed costs. ; the ability of management to manage growth and successfully compete in new businesses; and the ability of the Company to restructure or 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. its indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . 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. and subsidiaries
(a) Balance Sheet (under discontinuing operations)
- millions of dollars -
----------------------------------------------------------------------
March 31, December 31,
2006 2005
----------------------------------------------------------------------
Current assets:
---------------
Cash and cash equivalents 70.222 400.809
----------------------------------------------------------------------
Marketable securities 36.390
----------------------------------------------------------------------
106.612 400.809
----------------------------------------------------------------------
Accounts receivable
Accounts receivable - Net 39.479 43.267
----------------------------------------------------------------------
Other accounts receivable 22.906 19.615
----------------------------------------------------------------------
Prepaid expenses and others current assets 9.767 7.295
----------------------------------------------------------------------
Total current assets 178.764 470.986
======================================================================
Long-term account receivable 89.350 48.763
======================================================================
Property, machinery and equipment - Net 214.317 166.661
======================================================================
Other assets 19.919 23.160
======================================================================
Deferred taxes 85.697 83.556
======================================================================
Total assets 588.047 793.126
----------------------------------------------------------------------
Current liabilities:
--------------------
Bank loans and current maturities of long
term liabilities 28.487 35.546
----------------------------------------------------------------------
Suppliers 20.905 22.755
----------------------------------------------------------------------
Other accounts payable and accrued expenses 35.037 48.845
----------------------------------------------------------------------
Total current liabilities 84.429 107.146
======================================================================
Long-term liabilities:
----------------------
Bank loans and other obligations 266.526 524.763
----------------------------------------------------------------------
Other long-term liabilities 24.302 24.471
----------------------------------------------------------------------
Total long-term liabilities 290.828 549.234
======================================================================
Total liabilities 375.257 656.380
----------------------------------------------------------------------
Stockholders' equity
Common stock 121.158 121.158
----------------------------------------------------------------------
Retained earnings 93.356 14.454
----------------------------------------------------------------------
Initial accumulated translation loss (17.757) (17.757)
----------------------------------------------------------------------
Cumulative translation adjusted (1.414) 1.422
----------------------------------------------------------------------
195.343 119.277
----------------------------------------------------------------------
Minority interest 17.447 17.469
----------------------------------------------------------------------
Total stockholder's equity 212.790 136.746
----------------------------------------------------------------------
Total liabilities and stockholders' equity 588.047 793.126
----------------------------------------------------------------------
(a) Prepared in accordance with International Financial Reporting
Standards (IFRS).
Note: In accordance with International Financial Reporting Standards
(IFRS) number 5 "Non-current assets held for sale and discontinued
operations" and International Accounting Standards (IAS) number 21
(reviewed) "The effects of changes in foreign exchange rates"; Grupo
TMM, S. A. shows the effect of the applications of its Financial
Statements.
Grupo TMM, S.A. and subsidiaries
(a) Statement of Income (under discontinuing operations)
- millions of dollars -
----------------------------------------------------------------------
Three months ended
March 31,
2006 2005
----------------------------------------------------------------------
Revenue from freight and services 62.392 64.545
----------------------------------------------------------------------
Cost of freight and services (49.619) (54.696)
----------------------------------------------------------------------
Depreciation of vessels and operating
equipment (2.696) (1.365)
----------------------------------------------------------------------
10.077 8.484
----------------------------------------------------------------------
Administrative expenses (8.361) (7.317)
----------------------------------------------------------------------
Operating Income 1.716 1.167
======================================================================
Other income (expenses) - Net 0.154 0.057
----------------------------------------------------------------------
----------------------------------------------------------------------
Financial (expenses) income - Net (6.957) (19.911)
----------------------------------------------------------------------
Amortization of expenses related to debt (17.241) (3.415)
----------------------------------------------------------------------
Exchange (loss) gain - Net (0.291) (0.173)
----------------------------------------------------------------------
Net financial cost (24.489) (23.499)
----------------------------------------------------------------------
Loss before taxes and profit sharing (22.619) (22.275)
======================================================================
Benefit for taxes and profit sharing 1.675 1.129
----------------------------------------------------------------------
Net loss before discontinuing operations (20.944) (21.146)
======================================================================
Income from discontinuing operations 1.364
----------------------------------------------------------------------
Income from disposal discontinuing business 100.066 176.412
----------------------------------------------------------------------
Net income for the period 79.122 156.630
----------------------------------------------------------------------
Attributable to:
Minority interest (0.219) (0.838)
----------------------------------------------------------------------
Equity holders of the GTMM, S.A. 78.903 155.792
----------------------------------------------------------------------
Weighted average outstanding shares
(millions) 56.963 56.963
Income (loss) earnings per share (dollars /
share) 1.39 2.73
Outstanding shares at end of period
(millions) 56.963 56.963
Income (loss) earnings per share (dollars /
share) 1.39 2.73
----------------------------------------------------------------------
(a) Prepared in accordance with International Financial Reporting
Standards (IFRS).
Note: In accordance with International Financial Reporting Standards
(IFRS) number 5 "Non-current assets held for sale and discontinued
operations" and International Accounting Standards (IAS) number 21
(reviewed) "The effects of changes in foreign exchange rates"; Grupo
TMM, S. A. shows the effect of the applications of its Financial
Statements.
Grupo TMM, S.A. and subsidiaries
(a) Statement of Cash Flow (under discontinuing operations)
- millions of dollars -
----------------------------------------------------------------------
Three months ended
March 31,
2006 2005
----------------------------------------------------------------------
Cash flow from operation activities:
------------------------------------
Net loss before discontinuing operations (20.944) (21.146)
----------------------------------------------------------------------
Charges (credits) to income not affecting
resources:
Depreciation & amortization 5.587 7.709
----------------------------------------------------------------------
Deferred income taxes (2.141) (1.453)
----------------------------------------------------------------------
Income from discontinued operation 69.390
----------------------------------------------------------------------
Other non-cash items 14.189 5.950
----------------------------------------------------------------------
Total non-cash items 87.025 12.206
----------------------------------------------------------------------
Changes in assets & liabilities (38.179) (0.580)
----------------------------------------------------------------------
Total adjustments 48.846 11.626
----------------------------------------------------------------------
Net cash provided (used in) by operating
activities 27.902 (9.520)
======================================================================
Cash flow from investing activities:
------------------------------------
Proceeds from sales of assets (net) 8.520 0.089
----------------------------------------------------------------------
Payments for purchases of assets (66.336) (3.256)
----------------------------------------------------------------------
Sale of share of subsidiaries 8.092
----------------------------------------------------------------------
Net cash (used in) provided by investment
activities (57.816) 4.925
======================================================================
Cash flow provided by financing activities:
-------------------------------------------
Short-term borrowings (net) (0.150)
----------------------------------------------------------------------
Principal payments under capital lease
obligations (0.025)
----------------------------------------------------------------------
(Repurchase) sale of accounts receivable
(net) (4.998)
----------------------------------------------------------------------
Repayment of long-term debt (333.946) (0.475)
----------------------------------------------------------------------
Proceeds from issuance of long-term debt 69.663 1.736
----------------------------------------------------------------------
Net cash used in financing activities (264.283) (3.912)
======================================================================
Net decrease in cash (294.197) (8.507)
----------------------------------------------------------------------
Cash at beginning of period 400.809 53.148
----------------------------------------------------------------------
Cash at end of period 106.612 44.641
----------------------------------------------------------------------
(a) Prepared in accordance with International Financial Reporting
Standards (IFRS).
Note: In accordance with International Financial Reporting Standards
(IFRS) number 5 "Non-current assets held for sale and discontinued
operations" and International Accounting Standards (IAS) number 21
(reviewed) "The effects of changes in foreign exchange rates"; Grupo
TMM, S. A. shows the effect of the applications of its Financial
Statements.
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