Date: November 15, 2018
Dolphin Cove Limited (DCOVE), For the nine months ended September 30, 2018 reported total revenue of US$11.62 million, an 11% decrease when compared to US$13.03 million booked the year prior. total revenue for the quarter amounted to US$3.89 million (2017: US$4.37 million). According to the company “Despite the fact that one of the major cruise lines with which we deal, Royal Caribbean, drastically reduced calls to Jamaica this year and despite the adverse effect of the state of emergency on the attractions business, we were able to hold the decline in revenue to just 12% year to date. We believe that we will see a recovery of calls to Jamaica by cruise ships with our customer demographic, but we are also working on new sales and marketing strategies to restore the revenue loss.”
Revenue from Dolphin Attraction contributed US$6.38 million to total revenue; this represents a 13% decline when compared to the US$7.35 million reported in the prior year. Revenues from the Ancillary Services totalled US$5.24 million, an 8% drop from last year’s US$5.68 million.
Total direct cost for the period totalled US$1.04 million, this was 42% hike when compared to the US$736,361 on reported in 2017.
As such, gross profit for the period went down by 14%, amounting to US$10.58 million relative to 2017’s total of US$12.29 million, while for the quarter gross profits closed at US$3.50 million, 15% less than US$4.11 million of the prior period.
Other income soared to US$193,784 million in 2018 relative to US$3,810 of last year.
Total operating expenses also saw a decline of 5%, moving from US$7.82 million in 2017 to US$7.30 million. This decrease was primarily due to a 13% fall in selling expense which amounted to US$2.84 million (2017: US$3.26 million). Other operations totaled US$2.53 million relative to US$2.63 million, while administrative expense had a marginal decline of 0.03% amounting to US$1.93 million. Also, for the third quarter total expenses marginally grew by 0.07% to US$2.49 million.
Finance income declined by 78%, totalling US$54,215 relative to US$241,593 last year, while finance cost moved down from US$284,924 for the same period in 2017 to US$209,444.
Profit before taxation saw a decline of 25% to US$3.32 million from US$4.44 million with taxes of US$367,553 (2017: US$315,620).
Net Profit for the period was US$2.95 million 28% less than the US$4.12 million charged the prior year. Net profit for the quarter amounted to US$915,198 (2017: US$1.52 million).
Earnings per stock unit for the nine months totalled US$0.008 relative to US$0.011 in 2017. EPS for the quarter amounted to US$0.0023 relative to US$0.0039 in 2017. The trailing twelve-month EPS amounted to U$0.006. The stock traded at JMD$14.80 as at November 14, 2018. The number of shares used in the calculation was 392,426,376.
DCOVE highlighted that, “Our Half Moon Hotel operation was closed due to the renovation of the hotel but the opening of the facility at Puerto Seco in the near future is expected to more than compensate for the loss of revenue from Half Moon. We continue to improve and renovate our facilities and spent approximately US$700,000 on fixed assets during the year to date. In addition, we have included lunch in almost all of our programmes and done special promotions to better incentivize Tour Operators Management has also been successful in managing expenses, but since most of our expenses are fixed the decline in profits was greater, at 40%, than the decline in revenues.”
Balance sheet Highlights :-
As at September 30, 2018, the company’s assets totalled US$30.38 million, 2% less than the US$31.04 million reported as at September 30, 2017. The was as a result of a decline in ‘Cash and Cash Equivalent’ and ‘Account Receivables’ which totalled US$1.01 million (2017: US$2.47 million) and US$1.47 million (2017: US$2.24 million). However, this was offset by the significant increase of US$1 million in ‘Due from related parties ‘to total US$1.11 million when compared to US$110,000 of 2017.
The company further added, “ Working Capital declined as a result of the renovation works and improvements to fixed assets and the reduction of the long-term liabilities as well as maintaining the level of dividends at a time of reduced profits.”
The company closed the financial period with shareholders’ equity in the amount of US$27.61 million (2017: US$27.75 million) which resulted in book value per share of US$0.070 (2017: US$0.071).
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