March 26, 2018. 

Margaritaville (Turks) Ltd (MTL) for the nine months ended February 28, 2018 reported Total Revenue of  US$4.06 million, a 12% decline relative to the US$4.64 recorded for the prior financial year. The company noted, “The revenue number is significant because the location suffered from two Category 5 hurricanes, back to back, during early September 2017.The location and the entire island were severely damaged and had to be closed for a portion of September and all of October.” Total revenue for the quarter amounted to US$1.81 million, a marginal decline of 1% compared with the US$1.82 million reported for the comparable quarter in 2017.

Cost of sales for the period amounted to US$1.08 million, a 12% contraction relative to US$1.23 million recorded the previous year. This resulted in gross profit for the period of US$2.98 million, 12% lower than last year’s US$3.41 million reported in 2017. The Company noted, “the management team has done a great job in containing the exposure to product loss from spoilage as a result of the loss of Electricity associated with the hurricanes.”

Total expenses for the period declined by 8% year over year, moving from US$3.07 million for the nine month ended February 2017 to US$2.83 million.  Of this,

• Administrative and general expenses closed at US$2.45 million, an 8% decline compared to US$2.67 million in 2017.
• Depreciation totalled US$144,991, a fall of 20% relative to the US$181,234 booked last year.
• Promotional Expenses amounted to US$57,023 (2017: US$28,353).
• Management Fee amounted to $187,500, a flat amounted for the past 3 years.

Consequently, operating profit year over year reflected a 57% decline to US$147,409, relative to the $339,122 booked for the comparable period in 2017.  Operating loss for the quarter amounted to US$86,336 in contrast to a profit of US$161,527 in 2017.

Finance cost of US$175 was charged for the nine months, compared to the US$525 recorded last year. As such, net profit declined 57% to US$147,234 versus US$339,122 booked for the same period of in 2017. Net Loss for the quarter amounted to US$86,336 , when compared with a net profit of US$161,527 recorded for the comparable quarter in 2017.

Loss per share for the nine months ended February 28, 2018 totaled US$0.22 cents versus an earnings per share of  US$0.50 cents for the corresponding period of 2017. Loss per share for the quarter amounted to US$0.13 cents relative to a earning per share of $0.24 cents in 2017. The trailing twelve months earnings per share amounted to US$0.46 cents. The number of shares used in our calculations 67,500,000 units. Notably, MTL’s stock price closed the trading period on March 26, 2018 at a price of US$0.25 cents

Balance Sheet at a glance:

Total Assets as at February 28,2018  amounted to US$5.56 million. Management noted, “The Company has expended US$335,756 on Fixed Assets acquisition during the nine month YTD, The larger share of this relates to replacement of assets associated with hurricane damages”

Shareholders’ Equity totalled US$4.12 million. As such, book value per share amounted to US$0.06 for FY2017.

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