May 11, 2021
Figures are quoted in United States dollars (except where it is indicated otherwise):
Transjamaican Highway Limited (TJH), for the three months ended March 31, 2021, reported a 5% decline in revenue which totalled US$12.28 million, relative to US$12.96 million in the corresponding quarter last year. TJH noted that, “This decrease is as a result of the first quarter 2021 being fully impacted by the ongoing COVID-19 pandemic and its associated implemented measures versus the revenue for first quarter 2020 where only the month of March 2020 was impacted by the implemented measures. We note that revenues for the month of March 2021 increased by 5.63% over that of March 2020.”
Other gains amounted to US$511,000 for the quarter ended March 31, 2020 (2020: US$63,000). The Company highlighted that, “This increase was primarily due to the exchange gains realized on the revaluation of the ‘8.0% (JMD) Cumulative Redeemable Preference Shares and also resulted from Interest earned on the investment of the Restricted Cash.”
For the three months ended March 31, 2021, operating expenses totalled US$8.13 million versus the US$8.61 million in the comparable quarter last year, a 6% decline year over year. The Company noted that, “This decrease was primarily due to lower amortization of the intangibles. This was offset by an increase in insurance cost and the Operator’s fixed fee.”
Administrative expense fell 24% to US$274,000 (2020: US$309,000). TJH mentioned that, “This decrease was primarily due to reduced travel and accommodation cost resulting from the COVID-19 restrictions.”
Finance cost for the quarter ended March 31, 2021, equalled US$3.81 million when compared to US$5.61 million for the corresponding quarter last year.
Profit before taxation closed at US$575,000 million versus loss before taxation of US$1.50 million as at March 2020.
The Company did not report taxation for the three months ended March 31, 2021 relative to the tax credit of US$3.77 million reported in the corresponding period last year. This resulted in a net profit of US$575,000, a 75% decline on the US$2.27 million for the corresponding quarter last year.
Consequently, earnings per share (EPS) amounted to US0.0046 cents for the quarter ended March 31, 2021 relative to US0.018 cents last year. The twelve months trailing amounted to US0.029 cents. The number of shares used in this calculation was 12,501,000,000 shares. TJH traded on May 11, 2021 at JMD$1.33 while TJHUSD closed at US$0.01.
Management highlighted that,, “Despite these unfavourable conditions, it should be noted that all of the Company’s financial obligations continued to be met and the company continues to maintain significant reserve balances. The heavy maintenance schedule also continues to be implemented and during the quarter, repaving works were carried out both on the T1 and T2 legs of the highway thus ensuring an optimal level of safety and service for our users.”
Balance Sheet at a Glance:
As at March 31, 2021, total assets closed at US$319.07 million relative to US$329.08 million the prior year. This decline was attributed to the 72% decrease in ‘Cash and bank balances’ which ended at US$2.46 million (2020: US$8.82 million). Additionally, ‘Intangible assets’ fell by 4% amounting to US$235.05 million (2020: US$245.09 million).
Shareholders’ equity totalled US$57.62 million (2020: US$67.78) resulting in a book value of US$0.0046 (2020: US$0.0054).
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