KEX reports 7% increase in nine months net profits

Date: April 12, 2018

Knutsford Express Services Limited (KEX), for the nine months ended February 28, 2018  reported total revenue of $677.13 million, a 23% or $124.46 million increase when compared with the $552.67 million reported for the same period in 2017. For the third quarter, revenues amounted to $231.71 million, a 14% increase relative to the $202.90 million booked for the corresponding period in 2017. According to KEX, “the increase was tempered somewhat by the establishment of the state of emergency in St. James.”

Administrative and general expenses for the period grew 25% to total $535.18 million (2017: $429.24 million). Consequently, gross profit for the period rose 15% to close at $141.95 million compared to the $123.43 million reported for the same period a year ago. For the quarter, Gross profit fell by 18% from $50.08 million in 2017 to $41.07 million for 2017.

Other Income saw a significant decline of 82% or $7.03 million over the nine months to total $1.50 million relative to the $8.53 million recorded the prior year.

In addition, Finance Income moved from $1.28 million in 2017 to the close the period at $1.53 million, a 20% increase. Finance costs also climbed 24%, to total $16.67 million for the period up from $13.43 million recorded for 2017.

Profit before taxation for the nine months amounted to $128.31 million relative to $119.81 million reported in 2017, a 7% increase year over year. No taxes were incurred this year as a result of Junior Market Tax holiday.

Consequently, net profit for the period also amounted to $128.31 million, representing a 7% increase over the prior year’s corresponding period net profit of $119.81 million. Net Profit for the quarter however declined by 31% to close at $37.33 million relative to the $53.74 million booked for the corresponding period in 2017. The Company noted this was as a result of, “higher fuel, salary and toll costs.”

As such, earnings per share (EPS) for the nine months ended amounted to $0.26 (2017: $0.24) whilst earning per share for the quarter amounted to $0.07 (2017:$0.11). The twelve-month trailing EPS amounted to $0.36. The number of shares used in our calculations is 500,000,015. KEX stock price closed the trading period at a price of $14.40 on April 12, 2018.

KEX noted, “ We are proud to have won the National Commercial Bank’s Nation Builder Award. Also, in the quarter we officially opened our Sangster International Airport Depot with its new and expanded facilities. The feedback from our customers flying into Montego Bay has been tremendous and we expect continued passenger growth as a result of its initiative.”

Balance Sheet at a Glance:

As February 28, 2018 assets totalled $661.79 million, $128.96 million more than the $532.83 million recorded last year. The increase in total assets was largely due to increases in ‘property, plant and equipment’ and ‘short term investments’ by $74.80 million and $71.98 million respectively to total $415.94 million and $92.24 million respectively.

Shareholder’s equity closed at $576.94 million (2017: $432.10 million). As such, the book value per share was $1.15 (2017: $0.86).


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