May 18, 2022

Palace Amusement Company (PAL), for the nine months ended March 31, 2022, reported total revenues of $373.65 million, a 293% increase when compared with the $95 million recorded for corresponding period in 2021. Total revenue for the quarter increased 400% to total $141.98 million relative to the $28.38 million recorded for same period in 2021.

Direct Expenses for the nine months ended March 31, 2022, amounted to $476.40 million a 70% increase when compared with the $280.20 million recorded for the same period in 2021. As such, gross loss for the period amounted to $102.75 million a 45% fall when compared to the gross loss of $185.20 million in 2021. Gross loss for the quarter amounted to $30.47 million compared to a gross loss of $58.85 million for the corresponding quarter of 2021.

Administrative expenses for the nine months increased 85% to total $137.44 million when compared to $74.40 million recorded for the comparable period in the prior year. Other operating income for the nine months decreased 82% to total $2.84 million relative to the $15.90 million booked in same period for 2021.

Consequently, operating loss for the nine months period amounted to $237.35 million, relative to an operating loss of $243.69 million in 2021. For the quarter, operating loss totalled $63.22 million relative to an operating loss of $74.27 million booked in 2021.

For the nine months period, finance costs rose 191% to $31.39 million relative to the $10.80 million recorded in 2021. There was no taxation charge for the nine months ended March 31, 2022 relative to taxation charge of $234,000 in 2021.

As a result, net loss for the nine months ended March 31, 2022 amounted to $268.74 million when compared with a net loss of $254.73 million recorded for the corresponding period for 2021. For the quarter, net loss amounted to $77.40 million, compared with a net loss of $78.32 million recorded for the same quarter in 2021.

Consequently, net loss attributable to shareholders for the nine months period amounted to $268.73 million, versus the net loss attributable to shareholders of $254.61 million for the comparable period in 2021. For the quarter, net loss attributable to shareholders amounted to $77.44 million relative to a net loss attributable to shareholders of $78.25 million for the third quarter of 2021.

Total comprehensive loss for the nine months ended March 31, 2022 amounted to $262.14 million compared to a total comprehensive loss of $252.36 million for the corresponding period in 2021.

Loss per share (LPS) for the quarter totalled $53.89 relative to a LPS of $54.45 in 2021. For the nine months ended March 31, 2022, the Company recorded a LPS of $187.00 relative to a LPS of $177.18 for the comparable period in 2021. The twelve-month trailing LPS is $276.35. The number of shares used in our calculations is 1,437,028 units. Notably, the stock price for PAL closed the trading period on May 17, 2022 at J$954.94.

Balance Sheet Highlights:

As at March 31, 2022 the Company reported total assets of $1.84 billion, an 86% increase when compared to $986.80 million in the prior year. This increase in assets was primarily due to a 122% increase in ‘Property, plant and equipment’ to total $1.12 billion (2021: $497.43 million) but was tempered by an 18% decline in ‘Right of Use Assets’ to $262.32 million (2021: $318.75 million).

Shareholders’ Equity as at March 31, 2022 was $373.21 million compared to $131.30 million for the prior year. This resulted in a book value per share of $259.71 compared to $91.37 booked a year ago.

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