November 15, 2019
Eppley Limited (EPLY), for the nine months ended September 30, 2019, reported Interest Income for the period of $269.52 million relative to $234.42 million the previous year, a 15% increase. While for the third quarter interest income amounted to $89.85 million relative to $84.61 million in 2018.
Interest Expenses amounted to $146.69 million, up 15% from $127.58 million for the corresponding period in 2018. While, for the quarter, interest expense closed at $51.56 million (2018: $44.59 million).
Consequently, net interest income rose 15% to $122.83 million, up from $106.83 million in the corresponding period of 2018. Net interest income for the third quarter amounted to $38.29 million relative to $40.02 million for the corresponding quarter of 2018.
Other operating income increased by 50% to total $102.68 million relative to $68.48 million in 2018, while administrative expenses increased by 27% to close at $125.01 million (2018: $98.15 million).
Share of net profit from joint venture amounted to $10.55 million relative to $3.50 million booked the year prior.
As such, pre-tax profit closed at $111.21 million for the nine months ended September 30, 2019, 38% more than the $80.67 million booked in 2018. Taxes for the nine months ended September 30, 2019 amounted to $1.69 million relative to no taxes for the prior period and as such net profit amounted to $109.52 million, relative to net profit of $80.67 million in 2018. Third quarter net profit amounted to $33.09 million relative to $36.05 million in last year.
Earnings per share for the nine months ended September 30, 2019 totalled $0.57 compared to $0.42 for the corresponding period in 2018, while earnings per share for the quarter amounted to $0.17 (2018: $0.19). The trailing twelve months EPS is $0.78. The total amount of shares outstanding used for this calculation was 192,468,300 units. EPLY closed the trading period at $16.00 on November 14, 2019.
The company highlighted that “the net interest income on our proprietary investments and the management fees from our funds both increased significantly so far this year highlighting the continued improvement in the quality of our underlying business.”
In addition, Eppley further stated, “At the end of the quarter we owned a $3.7 billion investment portfolio consisting of loans, leases, receivables and investments in our real estate and asset management joint ventures and subsidiaries. The average income yield of our portfolio was 13%. Our capital-at-risk was less than 1% of capital.” “We also managed the equivalent of US$70 million of committed capital for investors at the end of the first quarter through the Caribbean Mezzanine Fund and the Eppley Caribbean Property Fund.”
Balance Sheet Highlights:
As at September 30, 2019, total assets amounted to $3.77 billion, 19% more than last year’s $3.16 billion in 2018. This was attributed to a rise in Loans receivables of $490.95 million to close the period at $1.64 billion (2018: $1.15 billion). Additionally, the growth in cash and deposits contributed to the overall increase in the company’s assets, closing at $484.44 million (2018: $383.95 million).
Shareholder’s Equity increased by 6% as at September 2019, to total $785.60 million compared to the previous year’s total of $739.91 million, this resulted in a book value per share of approximately $4.08 relative to $3.85 in 2018.
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