October 12, 2023
Margaritaville (Turks) Limited (MTL)
Unaudited financials for the first quarter ended August 31, 2023:
Margaritaville (Turks) Limited (MTL) for the first quarter ended August 31, 2023 reported a 27% increase in revenue totalling US$1.81 million compared to US$1.42 million in the corresponding three months last year. Management attributed this improvement to the rate of increase in passenger totals, 225,991 passengers relative to 175,000 passengers for the same period in the prior year.
Cost of Sales amounted to US$475,245 (2022: US$390,313), this represents an increase of 22% year over year. Consequently, gross profit increased by 29% to US$1.33 million compared to $1.03 million for the first quarter ended August 31, 2022.
Administrative Expenses increased by 18% to close at US$978,619 (2022: US$832,539), while Depreciation and Amortization decreased from US$68,792 in 2022 to US$68,579 for the three months in 2023. As a result, Total Expenses for the first quarter amounted to US$1.05 million, a 16% increase relative to US$909,187 reported in 2022.
Operating profit for the three months amounted to US$279,526, a 126% increase relative to US$123,496 reported in 2022.
Other operating expense totalled US$44,138 relative to other operating income of US$273 recorded in the corresponding period last year.
Finance cost for the first quarter ended August 31, 2023, amounted to US$5,760, a 80% decrease relative to US$29,322 reported in 2022.
There was no taxation for the period under review. As such, Net profit for the three months amounted to US$229,628, a 143% increase from the US$94,438 reported in 2022.
Consequently, Earnings Per Share for the three months amounted to US0.34 cents (2022: EPS: US0.14 cents). The twelve-month trailing EPS was US2.68 cents and the number of shares used in these calculations was 67,500,000.
Notably, MTLJA and MTLUSD closed the trading period on October 11, 2023 at a price of J$16.60 and US$0.13, respectively.
Balance Sheet Highlights
The company’s assets totalled US$6.32 million (2022: US$4.50 million). The increase in total assets was primarily due to ‘Owing by Related Companies’ growing 347% to close at US$2.70 million, (2022: US$604,235).
Shareholder’s equity was US$4.20 million (2022: US$2.40 million), representing a book value per share of US6.23 cents (2022: US3.55 cents).
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