March 16, 2020
CAC 2000 Limited (CAC) revenues for the first quarter ended January 31, 2020 increased 84% to $306.57 million relative to $166.43 million for the comparable period in 2019. CAC explained that, “the increased revenues and profits for this quarter demonstrates our recovery from the challenges arising from the road construction works in the prior year.”
Cost of sales also increased by 71% for the period to $191.76 million (2019: $111.86 million). Consequently, gross profit for the quarter improved $60.25 million or 110% to $114.81 million (2019: $54.57 million).
The Company reported a 5% reduction in Total Expenses to $105.78 million (2019: $111.79 million). This was as a result of an 8% decrease in general administration to $98.77 million (2019: $106.98 million). CAC stated this was due to, “the majority of the savings came from salaries, IT, Depreciation, bad debt provision, bad debt recovery and professional fees.” Also, selling & distribution expenses increased by 46% to $7.01 million for the first quarter, relative prior year’s corresponding quarter of $4.81 million.
Other Income of $5,000 was recorded for the period a drastic reduction from $27.22 million reported for the same period the prior year. The Company noted that, “Last year we had a large “other Income” number due to the Barbuda project, so in actuality, the profit turnaround of our Jamaica core Business is even higher the $39 million net profit improvement.” Consequently, Profit before Taxation and Finance Cost amounted to $9.03 million compared to a loss of $30.01 million experience in the first quarter of 2019.
Net Finance Costs had a marginal 0.5% increase for the period in review to $7.72 million (2019: $7.68 million).
Profit before taxation improved for the first quarter to close at $1.31 million relative to the loss experience in 2019 of $37.70 million. No taxes were recorded for the period, thus net profit for the quarter amounted to $1.31 million relative to a loss of $37.70 million reported for the same quarter ended January 31, 2019.
Earnings-per-share (EPS) for the first quarter amounted to $0.01 compared to a loss per share of $0.29 in 2019. The trailing twelve months earnings per share amounted to $0.10. The number of shares used in our calculations is 129,032,258 units. Notably, CAC’s stock price closed the trading period on March 16, 2020 at a price of $12.50.
The company highlighted that, “We are carefully following the Covid-19 and pandemic to identify solutions and products ( some of which we already offer) that can mitigate the risks of transmission of this virus for our customers and ourselves. Our risk mitigation strategy is also being refined as we anticipate that flexi-time work schedules, social responsibility and compassion will be required during the course of the outbreak.”
Balance Sheet Highlights:
As at January 31, 2020 the Company reported total assets of $1.18 billion, a 9% increase when compared to $1.08 billion as at January 31, 2019. This was as a result of ‘Cash and Bank Deposits’ which increased by 35% to $195.34 million (2019: $144.49 million). Additionally, ‘Trade and Other Receivables’ closed at $569.31 million compared to $490.31 million reported as at January 31, 2019.
Shareholders’ Equity as at January 31, 2020 was $368.26 million (2019: $449.84 million), an 18% decrease year over year. This resulted in a book value per share of $2.85 (2019: $3.49)
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