February 23, 2021
iCreate Limited (ICREATE) for the year ended December 31, 2020 reported revenues of $63.79 million, up from the $46.16 million reported a year ago. For the fourth quarter, ICREATE posted $16.66 million in revenue (2019: $6.88 million).
The company noted, “while there seems to be no ending in sight as it relates to the current pandemic, iCreate continues to push its virtual classes and maintain social distancing protocols for physical classes. We continue to build out our corporate partnerships with companies such as Heart Trust/NTA. The company has also diversified into production, which saw the introduction of Reggae Sunsplash in a virtual form in Q4. This contributed significantly to the revenues made and break-even from a profit and loss perspective. The festival was extremely successful, bringing in viewership from over 20 countries with over 300,000 viewers. We are thankful for sponsors such as Visa and Jamaica Tourist Board who ensured the success of the festival.”
Total direct costs amounted to $19.80 million for the twelve months period compared to $24.12 million for the twelve months of 2019. Thus, resulting in gross profit of $43.98 million relative to $22.04 million booked last year. Gross profit for the quarter amounted to $5.29 million versus $3.01 million booked for the fourth quarter of 2019.
iCreate reported other income for the year end amounted to $343,376 relative to $559,258 for 2019, while the other income for the quarter totalled $215,931 (2019: $4,499).
Administrative expenses declined 27% to $37.79 million (2019: $51.90 million). Depreciation and amortization expense increased year over year to close at $3.90 million versus $3.18 million recorded for the corresponding period in 2019.
As such, operating profit for the period closed at $2.63 million in contrast to a loss of $32.48 million for the corresponding period of 2019. Operating loss for the fourth quarter closed at $3.56 million (2019: $21.07 million).
Finance cost for the year ended December 31, 2020 amounted to $12.13 million relative to $12.96 million a year ago. No taxes were recorded for the period (2019: $510,122), however an adjustment of $69,290 was added. Consequently, net loss for the year ended December 2020 amounted to $9.57 million versus a loss of $45.95 million in 2019. For the fourth quarter, net loss totalled $6.49 million compared to $21.55 million booked in the corresponding quarter last year.
Total comprehensive loss closed the twelve months period at $2.50 million versus a loss of $45.95 million booked at the end of 2019.
Loss per share (LPS) amounted to $0.05 compared to a LPS of $0.23 for the same period of 2019. The loss per share for the quarter amounted to $0.03 relative to $0.11 reported in 2019. The number of shares used in this calculation was 197,592,500 shares. iCreate closed the trading period on February 22, 2021 at $0.59.
iCreate stated, “During a pandemic year, we were able to stabilize the company with a combination of diversification of revenues, introduction of new digital marketing courses, securing new partnerships and a company wide reduction of losses. We have moved from losses of $45.9 million to a loss of $2.5 million for the year ending December 31, 2020. We are pleased with this result and look forward to further implementation of the strategies going into 2021.”
Balance Sheet at a Glance:
As at December 31, 2020, total assets increased to close at $54.04 million (2019: $42.19 million). The increase was largely due to a $14.44 million growth in ‘Accounts Receivables’ which closed at $25.46 million (2019: $9.29 million).
Shareholder’s deficit totalled $7.78 million compared to a shareholders’ equity of $5.16 million quoted as at December 31, 2019. This resulted in a shareholders’ deficit per share of $0.039, versus a book value per share of 0.026 booked 2019.
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