April 16, 2021
Margaritaville Turks Limited (MTL), for the nine months ended February 28, 2021, reported revenues of $46,606 versus $5.82 million in the prior corresponding period, a 99% decrease. For the third quarter, revenues declined by 100% to $6,155 (2020: $1.96 million). Management stated, “The operating status of the company remains on pause since the last report of the November 2020 quarter. There were no cruises into the Grand Turk Port for the third quarter and, as of today’s date, no confirmed timeline has been determined for the resumption of cruising to the port.”
Cost of sales decreased by 97% for the period to $46,606 (2020: $1.46 million), while for the quarter there was a 99% decrease to $6,155 (2020: $493,644).
As a result, gross profit, for the nine months period was nil when compared to $4.36 million for the nine months ended February 2020. Gross profit for the third quarter closed also closed at nil (2020: $1.46 million).
Total expenses decreased by 71% for the period under review to $1.07 million (2020: $3.74 million). This contraction was associated with an 80% decline in administrative expense to $659,239 compared to $3.34 million reported in the previous comparable period. Notably, this was tempered by a 29% growth in depreciation and amortisation which closed at $219,280 from $169,692 reported in February 2020. No promotional expenses were booked for the period under review (2020: $44,588). Whereas, for the quarter, total expenses closed at $261,014 (2020: $1.29 million).
Consequently, operating loss within the nine months grew by totalled $1.07 million relative to the operating profit of $617,831 booked in the corresponding period last year. Operating loss for the third quarter totaled $261,014 versus operating profit of $172,520 reported in the prior corresponding period.
Net loss for the nine months amounted to $1.07 million when compared to profit of $617,831 a year prior. While for the quarter MTL’s net loss closed at $261,014 relative to profit of $172,520 in the previous comparable quarter.
The nine-months loss per share (LPS) was $0.0158 relative to the earning per share (EPS) of $0.0092 reported February 28, 2020. The LPS for the quarter amounted to $0.0039 compared to EPS of $0.0026 for the corresponding quarter of 2020. The twelve months loss per share amounted to $0.024. The number of shares used in our calculations was 67,500,000. MTL closed the trading period on April 15, 2021 at US$0.09.
Management noted, “Since the commencement of vaccination in the last quarter, the Cruise Industry is in high gear.” As such, “The location is in stand-by mode for commencement of cruising activities. All remedial work necessary has been identified and works plans prepared. We are awaiting timelines for commencement of cruising to schedule these necessary works.”
Balance Sheet Highlights:
The Company, as at February 28, 2021, recorded total assets of $4.18 million versus $6.09 million in 2020, a 31% decline. This was due to a 100% reduction in ‘Owing by related companies’ which closed at nil (2020: $1.32 million). ‘Trade and other receivables’ also contributed to the decline amounting $94,349 (2020: $260,730).
Total Shareholders’ Equity as at February 28, 2021, closed at $3.23 million (2020: $5 million), which resulted in a book value of $0.048 (2020: $0.074).
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