September 30, 2019

Palace Amusement Company’s (PAL) audited results 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 year amounted to $900.09 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 $212.55 million (2018: $272.43 million), a 22% decrease when compared to 2018. Gross profit declined 9% for the quarter to $76.23 million compared to $83.88 million for the corresponding quarter of 2018.

Administrative Expenses increased by $3.57 million or 2% to total $186.74 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 91% to total $6.14 million relative to the $67.78 million booked in the same period for 2018 this was due to ‘Gain on sale of property, plant and equipment’ of $61.46 million for 2018 relative to a loss of $8.92 million. 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 $78.51 million, a 50% decrease relative to an operating profit of $157.04 million in 2018. For the quarter, operating profit decreased 64% to total $37.98 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 $6.45 million relative to $17.59 million recorded for the comparable period for the prior year.

As a result, Net profit amounted to $70.36 million, a 49% decline when compared with the net profit of $137.31 million recorded in 2018. For the quarter, net profit amounted to $31.17 million, a 65% decrease when compared with the $88.03 million recorded for the same quarter in 2018.

Total comprehensive income for the year amounted to $67.49 million compared to the $143.01 million for the corresponding period in 2018.

Consequently, Net profit attributable to shareholders for the year amounted to $82.43 million, versus the $123.84 million documented for 2018.

Earnings per share (EPS) for the year ended totaled $57.38 (2018: $86.18), while EPS for the quarter totaled $21.68 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 September 27, 2019 at JMD $ 2,100.00.

 Balance Sheet Highlights:

As at June 30, 2019 the Company reported total assets of $702.88 million, a 4% increase when compared to $678.23 million in the prior year. This increase in assets was primary due to a 103% in ‘Property, plant and equipment’ to total $452.42 million (2018: $222.45 million).

Shareholders’ Equity as at June 30, 2019 was $498.34 million compared to $483.35 million for the prior year. This resulted in a book value per share of $347.20 compared to $336.35 booked a year ago.

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