March 26, 2018
Express Catering Limited (ECL) for the nine months ended February 28, 2018 reported a 12% increase in revenue to US$11.30 million (2017: US$10.02 million). Revenue for the quarter advanced 10% to close at US$4.39 million relative to US$4.00 million reported the previous year. Notably, the company stated, “Q3 is traditionally the second best earning Quarter for the fiscal year.”
Cost of sales (COS) increased by 17% for the period to US$2.99 million (2017: US$2.56 million). The Company noted, “There were some marginal selling price revisions during the Quarter in response to increase in cost of supplies in the prior periods.” As a result gross profit increased year-on-year for the nine month period by 11%, from US$7.46 million in 2017 to US$8.28 million in 2017. Gross profit for the third quarter improved from US$2.96 million in 2017 to US$3.25 million, a 10% increase year over year.
Total expenses decreased by 13% for the period in review to US$5.48 million for 2017, down from US$6.28 million booked for the nine months ended February 2017. The decrease was associated with a 13% decline in administrative expenses to US$5.05 million from US$5.83 million. Depreciation and Amortization saw a 4% decline to US$400,475 compared to US$418,968 for the comparable period in 2017. Promotional expenses saw a 4% increase from US$29,337 to US$30,380. Management noted, “Operating costs including rent, salaries and wages and utilities all increased to support the increase in revenue. However, combined expenditure decreased as a result of savings associated with the removal of Group related charges.” Total expenses for the quarter declined 14% to close at US$2.00 million (2017: $2.32 million). The company also noted, “The Starbucks locations will be fully rolled out in the fourth quarter so additional expenditure will be incurred.
Consequently, operating profit for the period grossly increased by 136% to US$2.80 million (2017: US$1.19 million). Operating profit for the quarter totalled US$1.25 million, a growth of 93% relative to US$646,862 booked for the corresponding quarter of 2017.
Finance cost of US$287,178 (2017: US$283,625) was incurred for the period, while foreign exchange gain declined to US$10,986 (2017: US$45,064). Consequently, profit for the period amounted to US$2.52 million, a 166% increase above the US$947,989 recorded for the first nine months of 2017. For the quarter, profits amounted to US$1.14 million versus US$558,267 booked for the comparable period in 2017, a 105% increase.
Earnings per share (EPS) for the nine months totaled US$0.15 cents (2017: US$0.06 cents). Earnings per share for the quarter amounted to US0.07 cents (2017: US0.03 cents).The trailing EPS amounted to US0.19 cents. The number of shares used in the calculation was 1,637,500,000 units. Notably, ECL’s stock price closed the trading period on March 23, 2018 at a price of JMD$4.60.
Balance Sheet Highlights:
The company, as at February 28, 2018, recorded total assets of US$10.68 million. Notably, property, plant and equipment as at February 28, 2018 amounted to 4.40 million, while ‘Owing by related companies’ totalled US$5.12 million. The company noted, “Fixed Assets expenditure for the nine months to date was US$ 303,103. This was spent primarily for the continuing work on the new Starbucks locations as well as replacement cost for fully depreciated and worn fixtures and equipment.”
Total Stockholders’ equity as at February 28, 2018, closed at US$5.56 million; this resulted in a book value of US$0.34 cents.
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