MTL reports 30% decrease in year end net profits

Date: July 30, 2019.

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

Margaritaville Turks Limited (MTL), for the twelve months ended May 2019, reported revenues of $7.59 million versus $6.02 million in the prior corresponding period. Cost of sales increased by 21% for the period to $2.32 million (2018: $1.91 million), while for the quarter a 6% increase was observed to $879,227 (2018: $830,378)

As a result, gross profit grew 28% year-on-year to total $5.28 million compared to $4.11 million reported for the comparable period last year.

Total expenses increased by 21% for the year ended to $4.53 million (2018: $3.75 million). This increase was associated with a 21% uptick in administrative expense to $4.16 million compared to $3.43 million reported in the previous comparable period. Notably, this was offset by a 9% reduction in promotional expenses which closed at $75,125  from $82,574 reported in 2018. Depreciation and amortization expense closed the year end at $ 293,515 (2018: $ 241,470). For the quarter, total expenses closed at $1.01 million (2018: $1.02 million).

Consequently, operating profit for the year ended declined by 30% to $750,580 (2018: $1.07 million). Profit for the year ended amounted to $750,245 (2018: $1.07 million). The twelve-months earnings per share was $0.011 compared to $0.016.The number of shares used in our calculations was 67,500,000. MTL closed the trading period on July 30, 2019 at US$0.25 while MTLJA closed the trading period on July 30, 2019 at J$32.21.

Balance Sheet Highlights:  

As at May 31, 2019, the Company recorded total assets of $5.79 million versus $5.82 million in 2018, a marginal decline of 0.39%. This was due to a 33% increase in ‘Owing by related companies’ to $1.32 million (2018: 994,466) but however offset by a 69% decline in ‘Trade and Other Receivables’ which closed at $164,398 (2018: $527,709).

Total Shareholders’ Equity as at May 2019 closed at $4.53 million (2018: $4.79 million), which resulted in a book value of $0.067 (2018: $0.071).


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