MTL reports a 23% increase in net profits for first quarter 2018

Margaritaville (Turks) Limited (MTL)

For the three months ended August 31, 2017

Revenues increased by 15% for the period to US$1.86 million (Q1 2017: US$1.61 million). The company commented that “the location recorded increased ship calls and passenger counts during the quarter compared to the same period in the prior year.”

Cost of sales (COS) also increased by 16% for the period to US$483,803 (Q1 2017: US$418,507) which resulted in COS margin of 26% the same as last year. The company stated that “the location is maximizing all saving opportunities from this cost category.”

As a result, gross profit grew year-on-year for the three-month period by 15%, from US$1.19 million in Q1 2017 to US$1.38 million in Q1 2018.

Total expenses rose by 13% for the period in review to US$1.08 million in Q1 2018, up from US$953,302 in Q1 2017. The increase was associated with a 15% increase in administrative expenses to US$948,665 from US$823,535. For both periods, the portion of the total expenses associated with management fees amounted to US$62,500, while promotional expenses increased 172% from US$6,031 to US$16,408.

Consequently, operating profit grew by 23% to US$296,412 (Q1 2017: US$953,370). Total comprehensive income for the quarter amounted to US$296,412 relative to US$241,579 million the previous year, a 23% increase.

The twelve-month earnings-per-share was US$0.0082, while for Q1 2017, it amounted to US$ 0.0044. The number of shares used in our calculations was 67,500,000.


Balance Sheet Highlights:  

The company, as at August 31, 2017, recorded total assets of US$4.62 million, a decline of 11% when compared to US$5.2 million for the Q1 2017.

Total Stockholders’ equity as at August 31, 2017 closed at US$4.02 million, a 6% decline from US$4.27 million for the corresponding period last year.  This resulted in a book value of US$ 0.059.







Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.