February 16, 2023
138SL’s Revenue increased by 23% to $341.07 million relative to the $276.27 million recorded for the corresponding period last year. Other operating income for the period under review rose by 102% to $5.29 million compared to $2.62 million a year earlier. 138SL noted, “The increase was driven by an increase in occupancy from short-term rental business as well as long-term occupancy rates being above 90%, a general increase in room rates for long-term resident and the Irvine Hall variation claim.”
Administrative expenses increased by 29% to amount to $173.79 million (2021: $134.50 million). Thus, Operating profit closed the period at $172.56 million, increasing 20% compared to $144.39 million that was reported for the year prior.
Profit before taxation for the three months period amounted to $81.01 million compared with a profit of $53.42 million last year. Tax charges of $96,000 were reported for the period (2021: tax credit of $6.18 million)
Consequently, net profit totalled $80.91 million compared to a profit of $59.60 million in the prior corresponding period. 138SL noted “Our Net cash position from operations grew significantly primarily due to the return to normalcy of revenue from long-term accommodation, the increase in short term rentals revenue and the strict collection measures that are in place. We continue to be nimble in our approach to managing the business recognising that good fiscal management is essential for long-term sustainability.”
Earnings per share (EPS) for the period was recorded at $0.20 relative to earnings per share of $0.14 a year earlier. The twelve-month trailing EPS amounted to $0.932. The number of shares used in this calculation was 414,500,000. As at February 15, 2023, the stock traded at $4.90 with a corresponding P/E of 5.26 times.
Notably, Management stated, “The lifting of the Covid-19 restrictions and the subsequent return to face-to-face classes has resulted in a return to normalcy in operations with average occupancy at the end of the quarter peaking at 94%. Under the Concession Agreement with the University of the West Indies, Mona (UWI), 138 SL is guaranteed a 90% occupancy.”
Balance Sheet at a Glance:
As at December 31, 2022, Total Assets decreased by 4% to $9.84 billion (2021: $10.28 billion). This movement was primarily driven by a 32% decrease in ‘Receivables’ to close the period at $976.58 million (2021: $1.43 billion).
Total Shareholders’ Equity’ totalled $4.64 billion (2021: $4.48 billion), which resulted in a book value of $11.18 (2021: $10.82).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.