138SL reports 64% decline in three months net profit

February 16, 2021

138SL’s Revenue decreased by 44% to $255.56 million relative to the $455.24 million recorded for the corresponding period last year. Management noted that, “The difference in revenue quarter over quarter is due  to the Irvine Hall variation claim.”  Other operating income for the period under review rose by 136% to $20.53 million compared to $8.70 million a year earlier.

Administrative expenses declined by 31% to amount to $141.72 million (2019: $205.01 million). Thus, Operating profit closed the period at $134.38 million, declining 48% compared to $258.94 million that was reported for the year prior.

The company reported finance cost of $59.11 million (2018: $67.68 million), a 13% decline year over year.

Profit before taxation for the three months period amounted to $75.27 million compared with a profit of $191.25 million last year. Tax charge of $9.35 million was reported for the period (2019: $8.39 million)

Consequently, net profit totalled $65.92 million compared to a profit of $182.86 million in the prior corresponding period.

Earnings per share (EPS) for the period was recorded at $0.16 relative to earnings per share of $0.44 a year earlier. The twelve-month trailing EPS amounted to $0.482. The number of shares used in this calculation was 414,500,000. As at February 15, 2021, the stock traded at $4.97 with a corresponding P/E of 10.31 times.

Notably, Management stated, “During the period under review, 138SL operated 1,464 world-class rooms at its 4 locations on the UWI Mona Campus consisting of 1,692 beds. While the Covid-19 pandemic continues to negatively impact the business operations, measures have been put in place to mitigate these negative effects as we manage the economic fallout.”

Balance Sheet at a Glance:

As at December 31, 2020, Total Assets decreased by 10% to $10.05 billion (2019: $11.15 billion). This movement was primarily driven by a 13% decrease in ‘Financial asset-service concession’ to close the period at $8.87 billion (2019: $10.18 billion).

Total Shareholders’ Equity’ totalled $4.60 billion (2019: $5.73 billion), which resulted in a book value of $11.10 (2019: $13.82).


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