EPLY reports 70% decline in first quarter results

May 14, 2019


Eppley Limited (EPLY) for the three months ended March 31, 2019, reported interest income of $91.83 million a 25% or $18.12 million increase when compared $73.71 million recorded for the corresponding period in 2018.

Interest expenses for the period amounted to $45.30 million, a marginal increase when compared to $45.11 million recorded in the prior year.

Consequently, net interest income for the quarter rose 63% to total $46.53 million up from the $28.61 million recorded in the corresponding period of 2018.

Other operating income for the period declined by 85% to total $2.24 million relative to $15.38 million booked for 2018.

Administrative expenses rose 54% for the quarter to close at $37.47 million up from $24.31 million recoded the previous year’s first quarter.

Eppley recorded a total of $2.39 million for share of net profit from joint venture accounted for using the equity method for the period relative to the $1.01 million recorded for the corresponding period in 2018.

As such, pre-tax profit closed at $9.21 million for the first quarter of 2019, 55% less than the $20.68 million booked in 2018. Taxation of $2.95 (2018: nil) was incurred for the period resulting in a net profit attributable to shareholders of $6.27 million, a 70% decrease from the $20.68 million recorded for the same period in 2018.

Earnings per share for the quarter amounted to $0.03 (2017: $0.11). The trailing twelve months earnings per share amounted to $0.55. The total amount of shares outstanding used for this calculation was 192,468,300 units. Notably, the stock price for EPLY closed the trading period on March 29, 2018 at JMD $ 12.98.


Balance Sheet Highlights:

As at March 31, 2019, total assets amounted to $3.61 billion, relative to the $2.69 million recorded a year ago. The increase in assets was driven primarily by increases in ‘Loans receivables’ by $329.50 million to close at $1.41 billion (2018: $1.08 billion) and ‘IPF Receivables’ by $280.69 million from $231.89 million in 2018 to $512.57 million.

Shareholder’s Equity as at March 31, 2019 totalled $713.33 million (2018: $694.93 million) resulting in a book value per share of approximately $3.71 relative to $3.61 in 2018.



Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. 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.