November 14, 2019

The Palace Amusement Company (1921) Limited (PAL), for the three months ended September 30, 2019, booked a 37% improvement in revenue to $369.99 million (2018: $269.38 million), while direct expenses increased by 41% to $304.90 million (2018: $215.79 million). As a result, gross profit rose by 21% to $65.09 million (2018: $53.59 million).

Other operating income declined 52% to $3.34 million (2018: $6.90 million), while administrative expenses decreased by 1% to $49.62 million (2018: $50.11 million). Consequently, operating profit for the period grew to $18.81 million relative to the $10.38 million reported for the corresponding period in 2018.

Interest expense rose to $678,000, a 56% increase compared to $436,000 recorded in 2018.

As such, net profit for the period was 82% higher than the prior year, totalling $18.13 million (2018: $9.95 million) due to no taxes being incurred during the quarter.

Profits attributable to stockholder’s of the Company amounted to $18.09 million for the period relative to $9.93 million in 2018, an 82% increase year over year.

As such, the earnings-per-share for the period amounted to $12.59 (2018: $6.91). The twelve month earnings-per-share amounted to $63.04.  The amount of shares used in our calculation is 1,437,028. PAL closed the trading period on November 14, 2019 at a price of $2100.00.

Balance Sheet Highlights:

The company, as at September 30, 2019, recorded total assets of $741.57 million, an increase of 15% when compared to $645.41 million recorded last year. The growth year over year was due mainly to a 124% increase in  Property, plant and equipment which closed at $513.29 million (2018: $228.87 million).

Total Stockholders’ Equity as at September 30, 2019 closed at $518.95 million, compared to $496.16 million for the corresponding period last year. This resulted in a book value of $361.13 per share compared to $345.27 as at September 30, 2018.

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