November 15, 2023
Dolphin Cove Limited (DCOVE) for the nine months ended September 30, 2023, reported an 18% increase in revenue totalling US$13.21 million compared to US$11.20 million in the corresponding period last year. Of this, revenue from dolphin attraction advanced 19% to US$6.85 million (2022: US$5.74 million), while ancillary services revenue amounted to US$6.35 million (2022: US$5.46 million). Total revenue for the third quarter had a 9% decrease to close at US$3.94 million compared to US$4.33 million for the comparable quarter of 2022.
Management noted that, “During the third quarter of 2023, the number of stopover visitors to Jamaica was consistent with pre-pandemic levels. However, there was a decrease in cruise line arrivals compared to Q3-2022 due to cancellations or changes in itineraries, which impacted sales production. The rise in park visitors in the first quarter of the year was partially due to the effects of the pandemic in early 2022. Notably, the number of visitors to the parks during the nine-month period ended September matched those of the same period in 2019.”
Direct costs amounted to US$1.36 million (2022: US$1.17 million), this represents an increase of 16% year over year. Consequently, gross profit improved 18% to US$11.85 million compared to US$10.03 million for the nine months ended September 30, 2022. The Company booked gross profit of US$3.58 million for the third quarter versus US$3.96 million reported for the similar quarter of 2022.
Total operating expenses for the nine months ended September 30, 2023, amounted to US$7.00 million, a 17% uptick relative to US$5.97 million reported in 2022. This was largely due to selling expenses, which increased by 20% to close at US$2.57 million (2022: US$2.14 million), followed by administrative expenses, which rose by 30% from US$1.01 million in 2022 to US$1.31 million in the period under review. Other operating expenses inched up 10% to US$3.12 million compared to US$2.83 million reported for September 2022.
Profit before finance income and costs for the nine months ended September 30, 2023, amounted to US$4.72 million, up 14% in contrast to US$4.13 million reported twelve months earlier. Profit before finance income and costs for the third quarter amounted to US$1.30 million (2022: US$1.83 million). Net finance costs totalled US$283,401, a 65% jump from the corresponding period last year (2022: US$171,781).
Pretax profit for the nine months ended September 30, 2023, amounted to US$4.44 million, a 12% growth relative to US$3.95 million reported in 2022. Pretax profit for the third quarter amounted to US$1.27 million (2022: US$1.81 million).
Taxation for the nine months ended September 30, 2023, had a 23% decrease to reach US$758,839 (2022: US$988,439). Consequently, net profit for the nine months amounted to US$3.68 million, a 24% increase from the US$2.97 million reported in 2022. For the third quarter, net profit declined by 20% to US$952,962 (2022: US$1.18 million).
DCOVE noted that, “Since January 2021, we are no longer operating under the remittance of tax concession afforded to Junior Market listed companies we are incurring tax on profits to the full extent of a regular business. The exemplary performance by our professional and experienced team in park management and marketing, coupled with strategic capital investments has resulted in the group generating US$3.7 million in after tax profit, the largest for a 9-month period in its history even when there was no tax on profits.”
Earnings per share (EPS) for the nine months amounted to US$0.0094/J$1.46 (2022: US$0.0076/J$1.15), while EPS for the quarter totalled US$0.0024/J$0.38 (2022: US$0.003/J$0.46). The twelve-month trailing EPS was US$0.009/J$1.46 and the number of shares used in these calculations was 392,426,376.
Notably, DCOVE’s stock price closed the trading period on November 15, 2023, at a price of J$18.62 with a corresponding P/E ratio of 12.77x.
Balance Sheet Highlights:
The company’s assets totalled US$35.08 million; a 5% increase from US$33.43 million booked in 2022. This upward trend follows increases in ‘Due from parent company’, which closed at US$2.08 million (2022: US$717,200) and ‘Investments’, which closed at US$1.02 (2022: US$18,157).
Shareholder’s equity was US$29.78 million (2022: US$28.14 million), representing a book value per share of US$0.08/J$11.80 (2022: US$0.07/J$10.95).
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