Date: August 14, 2019

Palace Amusement Company (PAL) for the year ended June 30, 2019 reported total revenues of $1.11 billion, a 4% decrease when compared with the $1.16 billion recorded for the corresponding period in 2018. The total revenue for the quarter increased 3% to total $338 million relative to the $327.07 million recorded for the same period in 2018.

Direct Expenses for the period amounted to $896.24 million a 1% increase when compared with $890.60 million recorded for the same period in 2018. As such, gross profit for the period amounted to $216.40 million (2018: $272.43 million), a 21% decrease when compared to 2018. Gross profit declined 5% for the quarter to $80.08 million compared to $83.88 million for the corresponding quarter of 2018.

Administrative Expenses increased by $10.08 million or 6% to total $193.25 million when compared with the $183.17 million recorded for the comparable period in the prior year. Notably, other operating income for the year ended decreased 89% to total $7.55 million relative to the $67.78 million booked in the same period for 2018. Notably, the company booked non-operating income of $46.56 million relative to nil the prior year.

Consequently, operating profit for the period amounted to $77.26 million, a 51% decrease relative to an operating profit of $157.04 million in 2018. For the quarter, operating profit decreased 65% to total $36.74 million relative to the $106.07 million booked in 2018.

For the period, finance cost decreased 21% moving to $1.70 million relative to the $2.14 million recorded in 2018. Taxes incurred for the period in review amounted to $9,000 relative to $17.59 million recorded for the comparable period for the prior year.

As a result, Net profit amounted to $75.56 million, a 45% decline when compared with the net profit of $137.31 million recorded in 2018. For the quarter, net profit amounted to $36.37 million, a 59% decrease when compared with the $88.03 million recorded for the same quarter in 2018.

Total comprehensive income for the year amounted to $85.22 million compared to the $143.01 million for the corresponding period in 2018.

Consequently, Net profit attributable to shareholders for the year amounted to $87.63 million, versus the $123.84 million documented for 2018.

Earnings per share (EPS) for the year ended totaled $60.98 (2018: $86.18), while EPS for the quarter totaled $25.30 relative to $51.79 in 2018. The number of shares used in our calculations is 1,437,028 units. Notably, the stock price for PAL closed the trading period on August 14, 2019 at JMD $2,500.00.

 Balance Sheet Highlights:

As at June 30, 2019 the Company reported total assets of $719.07 million, a 6% increase when compared to $678.23 million in the prior year. This increase in assets was primary due to a 104% in ‘Property, plant and equipment’ to total $454.38 million (2018: $222.45 million).

Shareholders’ Equity as at June 30, 2019 was $516.67 million compared to $483.35 million for the prior year. This resulted in a book value per share of $359.54 compared to $336.35 booked a year ago.

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