CABROKERS reports three months net loss of $4.64 million

May 15, 2020

Caribbean Assurance Brokers (CABROKERS), for the three months ended March 31, 2020, reported revenue of $70.10 million compared to the $74.91 million booked for the corresponding period in the prior year, a 6% decrease. This was mainly due to, “foreign exchange gain which declined by $4.44 million,” according to CABROKERS.

Other operating income totalled $12.42 million (2019: $16.98 million) for the three months ended March 31, 2020. As such, total operating income amounted to $82.51 million (2019: $91.89 million) for the twelve months ended March 31, 2020. The Company noted, “the decline in overall commission income was the result of a 2% reduction in International Health Commission rate, and adjustments in the economy due to the sudden advent of the COVID-19 Pandemic.”

Total operating expenses totalled $84.88 million for the three months ended March 31, 2020, representing a slight decrease of 2% on the $86.72 million recorded in the prior year. Of this, Administrative expenses amounted to $55.85 million, 11% lower when compared to the $62.60 million in the same quarter of 2019. Selling expenses recorded an increase of 20% for the three months, totalling $29.02 million (2019: $24.12 million).

Operating loss, therefore, amounted to $2.36 million for the three months ended March 31, 2020  relative to an operating profit of $5.17 million the prior comparable quarter.

Finance cost increased to total $1.34 million (2019: $959,289).

Consequently, loss before taxation amounted to $3.70 million compared to a profit of $4.21 million in 2019. After incurring tax charges of $939,569 (2019: nil), net loss amounted to $4.64 million, compared to a net profit of $4.21 million in the prior corresponding period.

Total comprehensive loss amounted to $4.64 million compared to a total comprehensive income of $4.21 million recorded twelve months earlier.

Loss per share (LPS) closed the period at $0.02 relative to an earnings per share of $0.02 the prior year. Twelve months trailing EPS amounted to $0.11. The total number of shares used in the computation amounted to 262,500,000 units. Notably, CABROKERS closed the trading period on May 15, 2020 at a price of $2.32.

Balance Sheet Highlights:

As at March 31, 2020, the Company’s assets totalled $515.22 million (2019: $367.07 million), 40% more than its value as at March 31, 2019. This was due to a 23% increase in ‘Property, plant and equipment’ which amounted to $235.28 million (2019: $191.80 million). Cash and cash balances’ and ‘receivables’ also increased to close at $139.03 million (2019: $46.04 million) and $115.29 million (2019: $111.77 million), respectively.

 Total Shareholders’ Equity totalled $296.21 million (2019: $133.60 million), which translated to a book value of $1.31 per share (2019: $0.51).

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer(s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.