138SL reports 49% increase in year end net profit

November 11, 2022

 

138 Student Living (138SL)

Unaudited financials for the twelve months ended September 30, 2022:-

138SL’s revenue increased by 38% to $1.19 billion relative to the $860.48 million recorded for the corresponding period the year prior. Revenue for the fourth quarter amounted to $294.81 million (2021: $184.11 million).

Revenue consists of “Income” and “Other Income”. Income for the twelve months period increased 46% to 1.19 billion (2021: $813.21 million) while Other Income fell 93% to $3.14 million (2021: $47.27 million). For the fourth quarter, the company recorded Income of $301.27 million (2021: $178.97 million) and an ”Other operating loss” of $6.46 million (Operating income 2021: $5.15 million).

Administrative expenses increased by 16% for the period amounting to $489.84 million (2021: $422.02 million). As for the quarter, there was a 56% decline to $88.95 million versus $202.71 million reported in the prior year’s corresponding period.

Operating profit for the twelve months period ended September 30, 2022 closed at $698.54 million, an increase of 59% compared to $438.46 million that was recorded for the comparative period in 2021. Operating profit for the quarter closed at $205.86 million (Operating Loss 2021: $18.60 million).

The Company reported finance costs of $363.49 million (2021: $242.21 million), a 50% increase year over year. For the quarter, finance cost increased 40% to close at $91.56 million (2021: $65.56 million).

Profit before taxation for the year ended amounted to $335.05 million compared with a profit before taxation of $196.25 million for the similar period last year. For the quarter, profit before taxation amounted $114.30 million (Loss before taxation 2021: $84.15 million).

Following tax credits of $29.87 million (2021 tax credit: $48.31 million), net profit totalled $364.92 million versus a net profit of $244.56 million recorded in 2021. 138SL’s net profit for the quarter closed at $126.26 million relative to a net loss of $55.26 million the prior year.

Total comprehensive income for the twelve months ended September 30, 2022 amounted to $266.78 million relative to a loss of $111.26 million last year. For the quarter, total comprehensive income amounted to $28.11 million versus a total comprehensive loss of $411.08 million the prior year.

Earnings per share (EPS) for the twelve months ended September 30, 2022 amounted to 0.88 relative to an earning per share of $0.59 a year earlier. The EPS for the quarter totalled $0.31 relative to an Loss per share (LPS) of $0.13. The number of shares used in this calculation was 414,500,000. As at November 11, 2022, the stock traded at $4.50 with a corresponding P/E of 5.11 times.

138SL highlighted that, “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 90%. Under the Concession Agreement with the University of the West Indies, Mona (UWI), 138 SL is guaranteed a 90% occupancy. Our expectation is that this trend will continue as students seek for quality accommodation in a secured environment. As applications for student long-term accommodations are still being received, we expect to be at full capacity for the second semester beginning January 2023.”

 

Balance Sheet at a Glance:

As at September 30, 2022, Total assets decreased by 3% to $9.85 billion (2021: $10.14 billion). This decrease was primarily driven by ‘Receivables’ which closed at $903.29 million (2021: $1.28 billion). Tempered by ‘Cash and cash equivalents’ which closed at $170.44 million (2021: $38.94 million).

Shareholders’ equity totalled $4.69 billion (2021: $4.42 billion) which resulted in a book value per share of $11.31 (2021: $10.67).

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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.

2022-11-11T15:53:23-05:00