January 15, 2024

Margaritaville (Turks) Limited (MTL)

Unaudited financials for the Six months ended November 30, 2023:

Margaritaville (Turks) Limited (MTL) for the Six months ended November 30, 2023, reported a 21% increase in Revenue totaling US$3.34 million compared to US$2.78 million in the corresponding period last year. Revenue for the second quarter had a 14% increase to close at US$1.54 million compared to US$1.35 million for the comparable quarter of 2022. Management attributed the improvement to higher levels of arrivals and higher average spend per passenger during the quarter, that is, 185,739 passengers with an average spend of US$8.29 per passenger versus 168,000 passengers with an average spend of US$8.05 per passenger in 2022.

Cost of Sales amounted to US$848,714 (2022: US$752,320), this represents an increase of 13% year over year. Consequently, gross profit increased by 23% to US$2.50 million compared to $2.02 million for the Six months ended November 30, 2022. The company booked gross profit of US$1.17 million for the second quarter versus US$990,219 reported for the similar quarter of 2022.

Administrative Expenses increased by 19% to close at US$1.99 million (2022: US$1.68 million), while Depreciation and Amortization decreased by 15% from US$137,584 in 2022 to US$116,286 in the period under review. As a result, total expenses for the Six months ended November 30, 2023, amounted to US$2.12 million, a 16% increase relative to US$1.83 million reported in 2022.

Operating profit for the Six months ended November 30, 2023, amounted to US$378,800, a 95% increase relative to US$193,844 reported in 2022. Operating profit for the second quarter amounted to US$100,144 (2022: US$70,403). Other operating expense totalled US$67,884, relative to other operating income of US$319,128 booked in the corresponding period last year.

Finance cost for the Six months ended November 30, 2023, amounted to US$11,215, an 81% decrease relative to US$57,619 reported in 2022.

No taxes were reported for the periods under review. As such, Net profit for the six months amounted to US$299,734, a 34% decrease from the US$455,197 reported in 2022. For the second quarter, net profit was US$70,106 (2022: US$360,759).

Consequently, Earnings Per Share for the six months amounted to US$0.44 (2022: EPS: US$0.67), while Earnings Per Share for the quarter totaled US$0.10 (2022: EPS: US$0.53). The twelve-month trailing EPS was US$0.02, and the number of shares used in these calculations was 67,500,000.

Notably, MTLJA AND MTLUSD closed the trading period on January 12, 2024, at J$17.58 and US$0.12, respectively.

Balance Sheet Highlights

The company’s assets totalled US$6.59 million (2022: US$5.32 million). The growth in total assets was primarily driven by a 136% increase in ‘Owing to related companies’ to US$2.95 million (2022: US$1.25 million).

Shareholder’s equity was US$4.27 million (2022: US$2.76 million), representing a book value per share of US$0.06 (2022: US$0.04).

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