Sociedad Matriz SAAM (SMSAAM) Q3 2024 earnings summary

Executive summary

• Operates in 13 countries, over 90 ports, with a fleet of 200+ tugs, and is the largest operator in the Americas and third worldwide.

• Provides cargo and ground handling at 8 airports, with ~37,000 m² of warehouses, and is a leading regional operator in South America.

• Net income for 9M24 was US$43.1M, down from US$486.4M in 9M23, which included a US$478.7M gain from discontinued operations; net income from continuing operations rose US$35.3M year-over-year.

• Revenue for 9M24 reached US$427M, up 8% year-over-year, with EBITDA at US$137M, a 14% increase.

• Towage consolidated acquisitions and renewed key contracts; Air Logistics benefited from new operations in Ecuador and increased export activity.

Financial highlights

• 9M24 revenue reached US$427 million, up 8% year-over-year; EBITDA was US$137 million, up 14%; net income from continuing operations was US$43 million, up 454% year-over-year.

• 3Q24 revenue was US$143.1M, up 4% from 3Q23; EBITDA was US$47M, up 14%.

• Net income from discontinued operations dropped to zero from US$482 million in 9M23 due to asset sales.

• Excluding discontinued operations, 9M24 net income compares to US$7.8M in 9M23.

• EBITDA margin for 9M24 at 32.1%, up from 30.4% in 9M23.

Outlook and guidance

• Plans for ~US$80 million in investments focused on infrastructure, sustainability, tug maintenance, and air logistics development.

• Activity levels and margins are returning to normal, with contract renewals and gradual recovery of Panama Canal traffic expected.

• Consolidation of new contracts and operations, with seasonal effects from the fruit season and new export warehouse contracts in Chile.

• Towage expects continued consolidation of new operations and stable performance despite weather and cost challenges.

• Air Logistics anticipates further growth from new contracts and expanded operations in Ecuador.