January 15, 2020
Margaritaville (Turks) Limited (MTL), for the six months ended November 30, 2019 reported that revenues increased by 8% for the period to US$3.86 million (2018: US$3.56 million). The second quarter’s revenue totalled US$1.83 million (2018: US$1.74 million), a 5% increase. For the six months, Management stated that revenue, “was earned from the 538,339 passengers that visited the port, spending an average of US$7.17 each. The comparative revenue for the same period in the prior year was US$3.56 million form 509,059 passengers, at a spend rate of US$6.99.” However, for the quarter, MTL noted, “This was earned from the 256,299 passengers that cruised into the port during the period, realizing a spend- per- passenger of US $7.13.This compared favourably to revenue of US$1.74 million earned from the 246,467 passengers in the similar period in the prior year, at a spend rate of US$7.06 per passenger.”
Cost of sales (COS) also increased by 4% for the period to US$969,861 (2018: US$932,368), while for the quarter a 2% increase was observed totalling US$468,941 (2018: US$460,982). The company noted that they, “improved on scheduling and logistics planning so there were reduced requirements to source higher priced supplies from the local purveyors. The change in the regulations relating to the administration of Gratuity resulted in additional cost to the company for employee benefits. All other categories were in line with prior year or increased in line with the revenue increase.”
As a result, gross profit grew year-on-year for the six-month period by 10%, from the US$2.63 million reported as at November 2018 to US$2.89 million in 2019. Gross profit for the second quarter rose to US$1.36 million (2018: US$1.28 million).
Other Operating Income totalled US$1,200 for the six months ended November 30, 2019 (2018: nil)
Total expenses increased by 10% for the period in review to US$2.45 million (2018: US$2.23 million). This increase was associated with a 11% uptick in the company’s administrative expenses to US$2.18 million compared to US$1.96 million in 2018. Notably, this was offset by an 8% reduction in promotional Expenses which closed the period at US$28,937 from US$31,380 reported in the prior year’s corresponding period. Depreciation and amortisation and management fees closed the six month period at US$113,128 (2018: US$111,345) and US$125,000 (2018: US$125,000), respectively. However, for the second quarter ended November 30, 2019, total expenses increased by 5% to US$1.23 million (2018: US$1.17 million).
Consequently, operating profit for the first six months grew by 12% to US$445,312 (2018: US$397,318). Operating profit for the second quarter totalled US$128,010 versus an operating profit of US$106,328 in the previous comparable period.
There was no finance cost incurred for the first six months ended November 2019 versus finance cost of US$336 reported in the similar period last year.
Total comprehensive income for the six months amounted US$445,312 (2018: US$396,982), while for the quarter MTL’s total comprehensive profit saw a 21% increase to US$128,010 relative to a profit of US$106,167 million the previous comparable quarter.
The six-months earnings-per-share was US$0.0066 compared to US$0.0059 reported in 2018, while the EPS for the quarter amounted to US$0.0019 (2018:US$0.0016). The twelve months earnings per share amounted to US$0.017 The number of shares used in our calculations was 67,500,000. MTL closed the trading period on January 15, 2020 at US$0.35.
The Company noted that, “Expenditure for the 6 months was just under US$79,000 moving from US$74,0000 at the close of the first Quarter. Expenditure was mainly in Building repairs and embellishment carried out by the Landlord, with changes being passed on to us. These repairs relate to Hurricanes Irma and Marie in 2017.”
MTL stated, “We are now deep into the Third Quarter and approaching the busier part of the winter tourist season. Approximately 60% of the revenue and profits are earned in the second half of our fiscal year and we are encouraged by the trend so far. The processing of work permits has been going at a satisfactory pace. A number of open vacancies were filled prior ro the start of winter season, albeit at increased costs to the company.”
Balance Sheet Highlights:
The company, as at November 30, 2019, recorded total assets of US$6.16 million versus US$5.23 million in 2018, an 18% increase. This was due to the ‘Owing by related companies’ for the period surging to US$1.74 million when compared to US$757,203 documented in 2018. However, the total asset base was tempered by the reduction in the company’s ‘Property, plant and equipment’ which closed the period at US$3.26 million (2018: US$3.34 million).
Total Stockholders’ equity as at November 30, 2019 closed the period at US$4.97 million (2018: US$4.17 million). This resulted in a book value of US$0.074 (2018: US$0.0618).
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