MTL reports 17% increase in nine months total comprehensive income

Date: April 11, 2019

In United States dollars (except where it is indicated otherwise):

Margaritaville Turks Limited (MTL), for the nine months ended February 28, 2019, reported revenues of $5.52 million versus $4.06 million in the prior corresponding period. Management stated that, “This was earned from the 827,320 passengers that descended on the port for the nine months. For the quarter, revenues closed at $1.96 million (2018: $1.81 million). MTL indicated that, “This was from the 296,318 passengers that cruised into the port which resulted in a spend rate of US$6.62 versus 266,675 passengers in the similar period in the prior year at a spend rate of US$6.80 per passenger. Revenue per passenger will vary marginally from one period to another. Even where aggregate passenger numbers are similar there can be variations due to dwell time, the time of day that the ship called and the differing weather patterns on the ship call days.”

Cost of sales increased by 33% for the period to $1.44 million (2018: $1.08 million), while for the quarter a 3% increase was observed to $504,892 (2017: $490,974).

As a result, gross profit grew year-on-year for the nine months period by 37%, to $4.08 million compared to $2.98 million reported as at February 2018. Gross profit for the third quarter closed at $1.46 million (2018: $1.32 million).

Total expenses increased by 29% for the period under review to $3.52 million (2018: $2.74 million). This increase was associated with a 34% uptick in administrative expense to $3.11 million compared to $2.32 million reported in the previous comparable period. Notably, this was offset by a 15% reduction in promotional expenses which closed at $48,580 from $57,023 reported in February 2018. Depreciation and amortization expense closed the nine months period at $171,120 (2018: $169,991). For the quarter, total expenses closed at $1.29 million (2018: $1.31 million).

Consequently, operating profit within the nine months grew by 42% to $564,067 (2018: $397,409). Operating profit for the third quarter totalled $166,750 versus $163,664 reported in the prior corresponding period. Profit for the nine months amounted to $563,731 (2018: $397,234), while for the quarter MTL’s profit closed at $166,750 relative to $163,547 in the previous comparable quarter.

The nine-months earnings per share was $0.0084 compared to $0.0059, while the EPS for the quarter amounted to $0.0025 compared to $0.0024 for the corresponding quarter of 2018. The twelve months earnings per share amounted to $0.018. The number of shares used in our calculations was 67,500,000. MTL closed the trading period on April 10, 2019 at US$0.25.

Balance Sheet Highlights:

The Company, as at February 28, 2019, recorded total assets of $5.31 million versus $5.56 million in 2018, a 4% decline. This was due to a 46% decline in ‘Trade and Other Receivables’ and a 16% decline in ‘Development Costs’ which closed at $79,657 (2018: $148,250) and $87,851 (2018: $104,931), respectively.

Management highlighted that, “most of the refurbishing and repairs necessitated as a result of damage associated with Hurricanes Irma and Marie in 2017 and now complete. Ongoing maintenance and replacement of fixed assets accounted for the later expenditure.”

Total Shareholders’ Equity as at February 2019 closed at $4.34 million (2018: $4.12 million), which resulted in a book value of $0.064 (2018: $0.061).

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