iCreate reports nine months net loss of $12.51 million

November 15, 2019

iCreate Limited (ICREATE) for the nine months ended September 30, 2019 reported revenues of $41.40 million, up from $29.44 million reported a year ago. For the third quarter, ICREATE posted $16.38 million in revenue (2018: $9.69 million).

Management noted, “Of total revenues, our business to consumer (B2C) market is our strongest, showing a 50% increase when compared to the previous quarter ended June 30, 2019.”

Total direct costs amounted to $10.94 million for the nine months period compared to $11.02 million for the nine months of 2018. Thus, resulting in gross profit of $30.47 million relative to $18.41 million booked last year. Gross profit for the quarter amounted to $12.18 million versus $6.79 million booked for the third quarter of 2018. Other income for the nine month period amounted to $554,759 relative to $2,571 for 2018, while the other income for the quarter totalled $261,854 (2018: $256) for other income.

Administrative expenses rose 95% to $40.29 million (2018: $20.67 million) for the nine months. Depreciation and amortization expense increased year over year to close at $2.16 million versus $552,817 recorded for the corresponding period in 2018.

As such, operating loss for the period closed at $11.43 million in contrast to a loss of $2.81 million for the corresponding period of 2018. Operating loss for the third quarter closed at $2.88 million (2018: $33,337).

Finance cost for the nine months amounted to $1.08 million relative to $1.49 million a year ago. Consequently, net loss for the nine months period amounted to $12.51 million versus a loss of $4.30 million in 2018. For the third quarter, net loss totalled $3.17 million compared to $650,048 million booked in the corresponding quarter last year.

Loss per share (LPS) amounted to $0.06 compared to a LPS of $0.02 for the same period of 2018. The loss per share for the quarter amounted to $0.02 relative to $0.003 reported in 2018. The trailing twelve months LPS is $0.12. The number of shares used in this calculation was 197,592,500 shares. iCreate traded on November 14, 2019 at $0.60.

Management noted, “Our B2C segment is showing solid growth. We experienced a 93% increase in enrolment when compared to the corresponding quarter in 2018 and a 23% increase when compared to the previous quarter ending June 30, 2019. We continue to enjoy an 80%+ satisfactory rating among our creatives (students). We are also pleased to see our Montego Bay location growing, moving from 4% of the total student population in Q2 2019 (Apr – Jun), to 21% this quarter. The interest in our courses in our Western Jamaica Campus is encouraging and we continue to play our part in building the skill-sets in the cadre of creatives in Western Jamaica.”

Balance Sheet at a Glance:

As at September 30, 2019, total assets increased to close at $47.51 million (2018: $25.60 million). The increase was largely due to a $15.26 million growth in ‘Property, Plant & Equipment’ which closed at $21.22 million (2018: $5.96 million) as well as a 43% increase in ‘Trade and other receivables’ which closed at $17.56 million (2018: $12.30 million).

Shareholder’s equity totalled $26.71 million compared to a shareholders’ deficit of $3.80 million quoted as at September 30, 2018. This resulted in a book value of $0.135 (2018 shareholders’ deficit: $0.019).

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