February 03, 2021
Express Catering Limited (ECL) for the six months ended November 30, 2020 reported an 85% decrease in revenue to US$1.19 million (2019: US$7.81 million). Revenue for the quarter fell 77% to close at US$748,372 relative to US$3.28 million reported the previous year.
Cost of sales (COS) decreased by 86% for the period to US$301,705 (2019: US$2.13 million). As a result, gross profit decreased year-on-year for the six-month period by 84%, from US$5.68 million in 2019 to US$890,807 in 2020. Gross profit for the second quarter deteriorated from US$2.38 million in 2019 to US$606,090 for the six months ended November 30, 2020.
ECL noted, “total departing passenger count for the quarter recorded a 76.2% decline compared to the same period in the prior year. This is based on passenger statistics published by MBJ Airports Limited, operators of the Sangster International Airport. The passenger count decline had a similar effect on revenue for the quarter.” However, it was further noted that, “there is an improving trend in departing passenger count as the first quarter was 88.83% compared to 76.2% in the current quarter.”
Other income grew to close the period at US$2,024 versus US$173 booked in the previous corresponding period. For the quarter, ECL posted other income of US$2,007 versus other loss of US$7,364 recorded in the prior comparable quarter.
Total expenses decreased by 57% for the period in review to US$1.92 million for 2020, down from the US$3.97 million booked for the six months ended November 30, 2019. This decrease was associated with a 78% decrease in administrative expenses to US$792,021 from US$3.63 million in the six months ended November 30, 2019. However, depreciation and amortization saw a 267% jump to US$1.13 million compared to US$306,929 for 2019. Promotional expenses saw an 88% decrease from US$30,668 in 2019 to US$3,814 documented in the period under review. Total expenses for the quarter fell 51% to close at US$867,494 (2019: US$1.77 million).
Consequently, operating loss amounted to US$1.03 million relative to an operating profit of US$1.71 million booked for the six months ended November 30, 2019. Operating loss for the quarter totalled US$259,397 relative to an operating profit of US$602,996 booked for the corresponding quarter of 2019.
Finance cost of US$628,800 (2019: US$160,064) was incurred, while foreign exchange gain for the six months amounted to US$2,966 compared to a loss of US$20,588 for the corresponding period in 2019.
There was no tax incurred, as such, net loss for the period amounted to US$1.66 million, relative to the profit of US$1.53 million recorded for the first six months of 2019. For the quarter, net loss amounted to US$571,047 versus the net profit of US$493,415 booked for the comparable period in 2019.
The twelve-month trailing loss per share (LPS) was US0.10 cent, while for first six month ended November 2020, LPS amounted to US0.101 cent relative to EPS of US0.094 cent in 2019. Loss per share for the quarter amounted to US0.035 cent relative to an EPS of US0.03 cent in 2019. The number of shares used in our calculations was 1,637,500,000. ECL stock price last traded on February 02, 2020 at J$3.67.
The Company noted, “Fixed asset expenditure of US$128, 071 was mainly in connection with the development work to revamp the post-security food and beverage lounge that is being carried out by MBJ Airports Ltd. Being the dominant food and beverage provider for the airport, Express Catering will incur some cost for the relocation to the new Food Court as well as additional cost for the new concepts to compliment the new Food Court.”
Balance Sheet Highlights:
The company, as at November 30, 2020, recorded total assets of US$31.27 million (2019: US$9.98 million). This increase was attributable to an increase in ‘Property, plant and equipment’ from US$4.20 million in 2019 to US$25.97 million in 2020.
Total Stockholders’ equity as at November 30, 2020, closed at US$2.32 million (2019: US$4.75 million); this resulted in a book value of US0.14 cent (2019: US0.29 cent).
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