March 21, 2018
CAC 2000 Limited revenues for the first quarter decreased by 21% to $239.51 million compared to $301.88 million recorded for the same period for the prior financial year. Management noted, “the portfolio of open jobs on hand and quotation activity was down (colder weather and persistent rain diminishing the demand for personal air conditioning). Management however noted, “the good news is that we expect to recover most (if not all) of this revenue shortfall in the second quarter as we won over $450M of new projects in this quarter (vs $72M in the same period last year) and our leads and quotations for residential units are also much more active.”
Cost of Sales decreased by 20% quarter on quarter to $157.09 million (2017: $197.51 million), as a result, Gross Profit has fell by $21.95 million or 21% to $82.42 million (2017: $104.37 million).
The Company had a 12% increase in Total Expenses to $86.25 million (2017: $77.31 million). A break- down of total expenses show that Selling & Distribution Expenses dipped to $8.27 million (2017: $8.91 million), while General Administration increased by $9.58 million to $77.98 million (2017: $68.40 million). The increase in General Administration Expenses was, “primarily due to increase in salaries, professional fees and travel related expensed.”
Other Income for the period rose by $4.31 million to total $4.41 relative to the $103,643 reported for the same period the prior year. Management noted this was, “due to gain on sale of a motor vehicle.” Consequently, Profit before Taxation and Finance Cost only fell by $26.58 million and amounted to $586,000 (2017: $27.16 million).
Net Finance Costs for the quarter dipped marginally by 6% to $2.82 million compared to $3 million booked for the same period last year. This was as a result of Interest Expense increasing by 50% to $5.64 million (2017: $3.75 million), whilst Interest Income declined by 4% to $266,000 (2017: $278,000). Other Gains however increased by 442% to $2.56 million (2017: $472,000). Thus, profit before taxation amounted to a loss of $2.23 million relative to the profit of $24.16 million recorded for the comparable period in 2017.
Consequently, Net loss for the quarter was reported at $2.23 million versus a net profit of $24.16reported as at January 2017. Notably, the Company is on the Junior Stock Exchange, and as such is currently exempted from paying taxes.
Loss per share (LPS) for the quarter totaled $0.02 compared to an earnings per share of $0.19 booked last year. The trailing EPS amounted to $0.57. The number of shares used in the calculation was 129,032,258 units. Notably, CAC’s stock price closed the trading period on March 20, 2018 at a price of $9.00.
Balance Sheet Highlights:
As at January 31, 2018, the Company reported total assets of $1.09 billion, a 31% increase when compared to $835.55 million a year ago. This was as a result of a 26% increase in Trade and Other Receivables to $520.51 million and a 143% increase in Cash and Cash Equivalents to $228.24 million (2017:$93.80).
Shareholders’ Equity as at January 31, 2018 was $420.86 million compared to $346.52million a year ago. This resulted in a book value per share of $3.26 compared to $2.69 in 2017.
Disclaimer:
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.