June 7, 2021
Express Catering Limited (ECL) for the nine months ended February 28, 2021, reported an 82% decline in revenue to US$2.27 million (2020: US$12.91 million). Revenue for the quarter fell by 79% to close at US$1.08 million relative to US$5.10 million reported the previous year. Notably, the company stated, “We are now closer to full resumption than ever before, and all are embracing it. Approximately 168 million Americans have taken at least one dose of Covid-19 vaccine and a large percentage of those are fully vaccinated. This statistic is important for our business because that country provides over 70% of our customer base.” Additionally, “ For the April to May 2021 period, MBJ Airports are reporting passenger numbers that averages to 38% of 2019 totals for the same period. Confidence is returning.”
Cost of sales (COS) contracted by 84% for the period to US$569,933 (2020: US$3.55 million). Gross profit decreased year-on-year for the nine-month period by 82%, from US$9.36 million in 2020 to US$1.70 million in 2021. Gross profit for the third quarter declined from US$3.67 million in 2020 to US$809,671 million, a 78% decline year over year.
Total expenses declined by 55% for the period in review to US$2.91 million, down from US$6.40 million booked for the nine months ended February 2020. The decrease was associated with an 81% contraction in administrative expenses to US$1.11 million from US$5.94 million booked twelve months earlier. Depreciation and Amortization increased to US$1.78 million compared to US$417,825 for the comparable period in 2020. Promotional expenses saw a 69% decline from US$45,452 in 2020 to US$14,023 for the period under review. Total expenses for the quarter fell by 59% to close at US$986,068 (2020: $2.43 million).
Operating loss for the period amounted to US$1.21 million (2020: operating profit of US$2.95 million). However, operating loss for the quarter totalled US$178,421 relative to an operating profit of US$1.24 million booked for the corresponding quarter of 2020.
Finance cost of US$1.24 million (2020: US$259,229) was incurred for the period, while foreign exchange gains amounted to US$5,758 (2020: FX losses: US$45,254). Net loss for the period amounted to US$2.44 million relative to profit of US$2.65 million recorded for the corresponding period in the prior year. For the quarter, net loss amounted to US$786,283 million versus net profit of US$1.12 million booked for the comparable period in 2020.
Loss per share (LPS) for the nine months totaled US0.149 cents relative to earnings per share (EPS) of US0.162 cents in 2020. Loss per share for the quarter amounted to US0.048 cents (2020 EPS: US0.068 cents). The trailing twelve months LPS amounted to US0.22 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 May 4, 2021 at a price of J$4.95.
Balance Sheet Highlights:
The Company, as at February 28, 2021, recorded total assets of US$34.16 million (2020: US$10.67 million). Notably, ‘Property, plant and equipment’ closed at US$24.87 million, this represents an increase of $20.75 million from the US$4.13 million booked as at February 2020. While ‘Owing by related companies’ rose by US$3.12 million to close at US$7.45 million. ECL noted, “ Fixed Assets expenditure of US$171,875 year to date was mainly in connection with the development work to revamp the post-security food and beverage lounge that is being carried out by MBJ Airport Ltd. Being the dominant food and beverage provider at the airport, ECL is required to invest in this expansion by relocating existing concepts to the new food court as well as to develop and introduce new offerings to widen the available options for food and beverage in the airport.”
Total Stockholders’ equity as at February 28, 2021, closed at US$1.53 million (2020: US$5.46 million); this resulted in a book value of US0.09 cents (2020: US0.33 cents).
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