DCOVE reports US$2.03 million in six months net profit

Date: August 16, 2018

Dolphin Cove Limited (DCOVE), for the six months ended June 30, 2018 reported total revenue of US$7.73 million, a 11% decrease when compared to US$8.66 million booked the year prior. Revenue from dolphin attraction contributed US$4.24 million to total revenue, a 14% decline when compared to the US$4.91 million reported in 2017, while revenues from the ancillary services totalled US$3.49 million, down 7% from last year’s US$3.75 million. Total revenue for the quarter amounted to US$3.87 million (2017: US$4.37 million), with Dolphin Attraction and Ancillary Service contributing US$1.94 million (2017: US$2.49 million) and US$1.94 million (2017: US$1.88 million) respectively. DCOVE noted, “revenues decreased due mainly to the adverse effect of the implementation of the State of Emergency that we experienced in the first four months of the year.”

Direct costs of sales for the period totalled US$655,906, 39% more than the US$472,400 reported in 2017. As such, net revenue for the six months amounted to US$7.07 million (2017: US$8.18 million). DCOVE for the second quarter booked net revenue of US$3.51 million (2017:$4.12 million).

Other income for the period soared to US$131,299 compared to US$1,484 a year earlier.

Total operating expenses for the six month increased, moving from US$5.33 million in 2016 to US$4.80 million. Of this;
o Selling expenses decreased by 16% to total US$1.83 million relative to US$2.17 million.
o Other operations totalled US$1.69 million, 8% less than US$1.85 million recorded the prior year.
o Administrative expenses dipped by 1% to total US$1.29 million compared to US$1.31 million in 2017.

DCOVE indicated, “The improvements to our facilities have strengthened relationships with our commercial partners as has the outstanding service provided by our staff and this has mitigated the adverse effect of the State of Emergency.”

Finance income decreased by 82% totalling US$27,456 relative to US$151,690 last year. The company’s finance cost decreased by 28% from US$197,787 for the same period in 2017 to US$142,366.

Profit before tax fell by 19% to US$2.29 million from US$2.81 million. Tax charges for the period were US$250,811 (2017: US$211,200).

Profit for the period was US$2.03 million a 22% decline on the US$2.60 million booked the prior year. Profit for the second quarter also decline, moving from US$1.21 million in 2017 to US$988,386 for the nine months ended June 2018.

Earnings per stock unit for the six months totalled US$0.0052 relative to US$0.0066 in 2017, while EPS for the quarter amounted to US$0.0025 relative to US$0.0031 in 2017. The trailing twelve months EPS amounted to US$0.0076. DCOVE’s stock last traded on August 16, 2018 at $16.50.

Balance sheet as at June 30, 2018:-

The company’s assets totalled US$30.19 million, 2% less than the US$30.72 million reported as at June 30, 2017. This was as a result of a 37% increase ‘Cash and cash equivalents’ and ‘Accounts receivable’ which closed the period at US$ 898,393 (2017: US$2.55million) and US$1.41 million (2017: US$2.38 million) respectively.

DCOVE highlighted, “Working Capital declined as a result of the reduction of long term liabilities and improvements and additions to fixed assets. The increase in amounts due from related parties included in current assets is due to the increase in credit terms of our E-commerce entities as well as the “shelter fee” being charged to our sister company World of Dolphins Inc. for the Dolphins brought to Jamaica after the hurricanes that hit the BVI Islands last year, we expect an improvement in the collections from related parties during the Q3 based on the new agreement signed this year. Our overseas and local projects are still in the planning stages and are being refined to optimize the cost and benefits of the investments and we anticipate being able to provide a more definitive report on this matter in the third quarter of 2018.”

The company closed the financial period with shareholders’ equity in the amount of US$27.27 million (2016: US$26.83 million). The increase was due to a growth in retained earnings from US$12.52 million to US$13.07 million. The company now has a book value per share of US$0.069 (2017: US$0.068).

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.

2018-08-17T19:34:07+00:00