TRAXION Announces Second Quarter 2020 Results

The figures presented in this report have been prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in nominal million Mexican Pesos (MXN), unless otherwise stated.

• Consolidated revenue reached Ps. 3,279 million in the quarter, a growth of 6.8% compared to 2Q19.
• Consolidated EBITDA¹ totaled Ps. 748 million, a 15.9% increase compared with the same period of 2019.
• EBITDA margin was 22.8%, expanding 180 basis points versus 2Q19.
• Total cost to revenue ratio was 70.3% in the period, a 210 basis-point efficiency compared to the same quarter of last year.
• General expenses decreased 3.1%, as a result of internal savings initiatives implemented given the sanitary contingency.
• Operating income grew 54.6% to reach Ps. 416 million.
• Net cash flow from operating activities totaled Ps. 593 million, a 27.8% growth compared to 2Q19.
• Net income reached Ps. 151 million, an increase of 112.5% versus 2Q19.
• CapEx in the quarter was Ps. 62 million.
• Net debt reached Ps. 4,792² million at the end of 2Q20, a 6.7% reduction compared to 2Q19, while net debt-to-EBITDA ratio was 1.80x³, compared to 2.19x at the end of 2Q19.
• The average fleet in 2Q20 was 8,206 units⁴, an increase of 1.5% compared to 2Q19.
• Kilometers driven in the quarter totaled 114.2 million kilometers, a decrease of 18.6% compared to 2Q19.
• On June 2, 2020, TRAXION released its first Integrated report, containing both financial and non-financial information for 2019. To Access the report, please click in the following link: https://traxion.global/wp-content/uploads/2020/06/TRAXION_integrado_2019_eng.pdf
• TRAXON is currently in the process of issuing public debt in the local markets and if conditions are favorable, expects close the transaction in the third quarter of 2020.

¹ EBITDA is operating income, plus depreciation and amortization.
² Net debt includes cash, cash equivalents and investments in equity.
³ To determine leverage ratios the effect of derivative financial instruments is included.
⁴ Includes Redpack’s last-mile fleet units consisting of 65 trucks, 355 light trucks, 39 cars and 159 motorcycles.

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Investor Relations Contact Details

Antonio Tejedo
Tel: +52 55 5046 7900 ext.3208
E-mail: a.tejedo@traxion.global  

Elba Salcedo
Tel: +52 55 5046 7900 ext. 3215
E-mail: e.salcedo@traxion.global

About the Company

TRAXION is the leading transportation and logistics company in Mexico. It offers a one-stop solution through the broadest and most diverse service portfolio in the country. TRAXION’s platform operates two main business segments: cargo & logistics, and personnel and student transportation. The Company has 7 highly recognized brands for their leadership in different niches of the sector. TRAXION was founded in 2011 and ended 2Q20 with an average fleet of 8,206 power units, 455,735 square meters of warehousing space, national footprint, more than 1,000 clients, and more than 15,000 employees. TRAXION’s most important competitive advantages are having an experienced and committed management team, being the only consolidator in a highly fragmented industry, being the only institutional company in a sector dominated by family-owned companies, having a diversified, premium service portfolio, having strong and long-lasting relationships with clients and suppliers, and having first-mover advantage.

Cargo and Logistics

This segment provides solutions in cargo and logistics throughout the supply chain. Amongst the services rendered are dedicated freight, truckload, less-than-truckload, intermodal, refrigerated freight, petrochemicals and specialized transportation, border transfers, warehouse management, last-mile logistics solutions, moving and relocation services, packaging and courier services. TRAXION operates 6 leading and recognized brands: Transportadora EGOBA, Muebles y Mudanzas MYM, Grupo SID, Auto Express Frontera Norte, Autotransportes El Bisonte, and Redpack. The Company operates one of the youngest, most modern, and flexible fleets in the industry with an average age of 4.5 years and an average of 2,131 power units, including 618 last-mile fleet units, at the end of 2Q20.

Personnel and Student Transportation

This segment provides personnel transportation services to corporates, industrial parks, and hotels as well as student transportation to schools and colleges, and complementary tourism services for private groups. Through its subsidiary LIPU, TRAXION operates a centralized platform under dedicated and spot contracts and the largest and most modern fleet of buses in Mexico with an average of 5,457 power units at the end of 2Q20.

Disclaimer

The information disclosed in this press release may contain statements with estimates regarding the future of Grupo Traxión, S.A.B. of C.V. and its subsidiaries (collectively “Traxión” or the “Company”), which are not historical facts and represent the current opinion of the Traxión administration based on the information available to the Company. Such statements are subject to certain risks and factors made based on assumptions. The words “anticipated”, “believe”, “estimate”, “expect”, “plan”, and other similar expressions, related or not with the Company, seek to give estimates or forecasts. Different factors may cause the results implicit in the statements to be materially different with respect to any future result or event of, or related to, Traxión that may be included expressly or implicitly within said statements. Also, if the assumptions used in the statements turn out to be incorrect, the actual results may vary materially from those described herein as anticipated, believed, estimated or expected. Traxión assumes no obligation to update the statements or information presented within this release.