MTL books nine months net profit of US $1.18 million

April 17, 2023

Margaritaville (Turks) Limited (MTL)

For the nine months ended February 28, 2023:

Margaritaville (Turks) Limited (MTL) reported nine months revenue of US$4.98 million, an increase of US$4 million from the US$975,061 reported in February 2022. Revenue for the quarter amounted to US$2.20 million (2022: US$974,015). Management highlighted that, “Revenue for the Quarter of US$2.20 million represents the highest quarterly revenue ever reported by the company and resulted in an average spend rate per passenger of US$7.78.” Regarding performance over the three months the company stated, “A total of 283,113 passengers cruised into the Grand Turk Port for the third Quarter on 85 vessels, an average of 3,330 passengers per vessel.”

Cost of sales increased to US$1.33 million (2022: US$245,450), which resulted in a gross profit of US$3.65 million (2022: US$729,611). Management noted that “Cost of Sales (COS) ratio of 26.06% for the Quarter is satisfactory given the inflationary environment that the company has been operating in. The year-to-date ratio is marginally higher at 26.64% but is trending downwards. At the 6 months mark the COS ratio was above 27.0%. The company continues to review prices and ingredients to provide the best ingredients at the best prices for our business.”

Total expenses increased 110% for the period under review to US$3.11 million (2022: US$1.48 million). The drivers of this increase in total expenses include Administrative Expenses which increased 129% to $US2.88 million (2022: US$1.26 million) and promotional expenses which increased 195% to US$26,253 (2022: US$8,887).

Consequently, the Company reported an operating profit of US$537,432 (2022: loss of US$754,844). Operating profit for the quarter was US$343,589 compared to an operating loss of US$139,564 in February 2022.

Finance costs for the nine-month period was US$15,614 (2022: nil), third quarter finance costs amounted to US$42,004 (2022: nil).

The company reported no taxation charge for the period.

As a result of this the company reported a nine-month net profit of US$1.18 million compared to a net loss of US$776,593 in 2022. Net profit for the quarter amounted to US$725,182 compared to a loss of US$166,861 booked twelve months prior.

The twelve-month trailing earnings-per-share (EPS) was US$0.02, while for the nine months period, EPS amounted to US$0.018 compared to an LPS of US$0.012 of the corresponding period of last year. For the quarter, EPS amounted to US$0.011 versus LPS of US$0.0025 documented twelve months prior. The number of shares used in our calculations was 67,500,000. MTLJA and MTLUSD last traded on April 14, 2023 at $18.49 and $0.10, respectively.

Management stated, “The winter tourist season, to date, has been one of the better ones on record, the passenger counts are nearing pre-Covid19 totals and the spending patterns are much improved. We anticipate that this will continue for the rest of the fiscal 2023 and into fiscal 2024.”


Balance Sheet Highlights:

The company, as at February 28, 2023, recorded total assets of US$5.67 million, an increase of 33% when compared to US$4.26 million as at February 28, 2022. This was mainly due to ‘Owing by related companies’ for the period totalling US$1.77 million (2022: US$ 273,108).

Total Stockholders’ equity as at February 28, 2023 closed at US$3.48 million, a 51% increase from US$2.30 million for the corresponding period last year. This resulted in a book value of US$0.052  (2022: US$0.034).




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