August 18, 2020

Palace Amusement Company (PAL) for the year ended June 30, 2020 reported total revenues of $904.18 million, a 19% decrease when compared with the $1.11 billion recorded for the corresponding period in 2019. The total revenue for the quarter decreased 99% to total $5.01 million relative to the $338 million recorded for the same period in 2019.

Direct expenses for the period amounted to $863.36 million a 4% decrease when compared with $900.09 million recorded for the same period in 2019. As such, gross profit for the period amounted to $40.82 million (2019: $212.55 million), an 81% decrease when compared to 2019. Gross loss for the quarter amounted to $46.95 million compared to a gross profit of $76.23 million for the corresponding quarter of 2019.

Administrative Expenses decreased by $13.89 million or 7% to total $172.85 million when compared with the $186.74 million recorded for the comparable period in the prior year. Notably, other non-operating expense for the year end stood at nil relative to the $46.56 million booked in the same period for 2019. The Company booked other operating income of $6.25 million relative to $6.14 million the prior year.

Consequently, operating loss for the period amounted to $125.78 million, relative to an operating profit of $78.51 million in 2019. For the quarter, operating loss totalled $79.82 million relative to a profit of $37.98 million booked in 2019.

For the period, finance cost increased 223% moving to $5.47 million relative to the $1.70 million recorded in 2019. There were no taxes incurred for the period in review relative to $6.45 million recorded for the comparable period for the prior year.

As a result, net loss amounted to $131.25 million, relative to a net profit of $70.36 million recorded in 2019. For the quarter, net loss amounted to $82.19 million, relative to a profit of $31.17 million recorded for the same quarter in 2019.

Total comprehensive loss for the year amounted to $134.72 million, relative an income of $67.49 million for the corresponding period in 2019. As for the quarter comprehensive loss amounted to $81.44 million, relative to an income of $23.23 million booked for 2019 comparative quarter.

Consequently, Net loss attributable to shareholders for the year amounted to $131.42 million, versus a profit of $82.43 million documented for 2019. While for the quarter, net loss attributable to shareholders amounted to $82.20 million, relative to a profit of $31.16 million.

Loss per share (LPS) for the year ended totalled $91.45 (2019 EPS: $57.36), while LPS for the quarter totalled $57.20 relative to an EPS of $21.68 in 2019. 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 18, 2020 at JMD $1,552.00.

 Balance Sheet Highlights:

As at June 30, 2020 the Company reported total assets of $692.46 million, a 1% decrease when compared to $702.88 million in the prior year. This decrease in assets was primary due to a 63%, 81% and 36% decrease in ‘Investment’, ‘Cash and Banks Balances’ and ‘Receivables’ which amounted to $24.58 million (2019: $65.92 million), $7.48 million (2019: $39.24 million) and $29.36 million (2019: $46.05 million), respectively. However, the decrease was offset by an increase in ‘Property, plant and equipment’ which closed at $531.17 million (2019: $452.42 million).

Shareholders’ Equity as at June 30, 2020 was $363.92 million compared to $498.94 million for the prior year. This resulted in a book value per share of $253.25 compared to $347.20 booked a year ago.

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