Margaritaville (Turks) Limited (MTL)
For the three months ended August 31, 2017
Revenues increased by 15% for the period to US$1.86 million (Q1 2017: US$1.61 million). The company commented that “the location recorded increased ship calls and passenger counts during the quarter compared to the same period in the prior year.”
Cost of sales (COS) also increased by 16% for the period to US$483,803 (Q1 2017: US$418,507) which resulted in COS margin of 26% the same as last year. The company stated that “the location is maximizing all saving opportunities from this cost category.”
As a result, gross profit grew year-on-year for the three-month period by 15%, from US$1.19 million in Q1 2017 to US$1.38 million in Q1 2018.
Total expenses rose by 13% for the period in review to US$1.08 million in Q1 2018, up from US$953,302 in Q1 2017. The increase was associated with a 15% increase in administrative expenses to US$948,665 from US$823,535. For both periods, the portion of the total expenses associated with management fees amounted to US$62,500, while promotional expenses increased 172% from US$6,031 to US$16,408.
Consequently, operating profit grew by 23% to US$296,412 (Q1 2017: US$953,370). Total comprehensive income for the quarter amounted to US$296,412 relative to US$241,579 million the previous year, a 23% increase.
The twelve-month earnings-per-share was US$0.0082, while for Q1 2017, it amounted to US$ 0.0044. The number of shares used in our calculations was 67,500,000.
Balance Sheet Highlights:
The company, as at August 31, 2017, recorded total assets of US$4.62 million, a decline of 11% when compared to US$5.2 million for the Q1 2017.
Total Stockholders’ equity as at August 31, 2017 closed at US$4.02 million, a 6% decline from US$4.27 million for the corresponding period last year. This resulted in a book value of US$ 0.059.
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