May 16, 2023
Palace Amusement Company (PAL) reported total revenues of $1.04 billion, a 178% increase when compared with the $373.65 million recorded for corresponding period in 2022. Total revenue for the quarter increased 113% to total $303.09 million relative to the $141.98 million recorded for same period in 2022.
Direct Expenses for the nine months amounted to $859.62 million, an 80% increase when compared with the $476.40 million recorded for the same period in 2022. As such, gross profit for the period amounted to $179.53 million when compared to the gross loss of $102.75 million in 2022.
Administrative expenses for the nine months fell 3% to a total of $133.29 million when compared to $137.44 million recorded for the comparable period in the prior year. Other operating income for the nine months increased 104% to total $5.78 million relative to the $2.84 million booked in same period for 2022.
Consequently, operating profit for the nine months period amounted to $52.02 million, relative to an operating loss of $237.35 million in 2022. For the quarter, operating loss totalled $943,000 relative to an operating loss of $63.22 million booked in 2022.
For the nine months period, finance costs rose 53% to $48.17 million relative to the $31.39 million recorded in 2022. There were no taxation charges for the current nor corresponding period.
As a result, net profit for the nine months amounted to $3.85 million when compared with a net loss of $268.74 million recorded for the corresponding period of 2022. For the quarter, net loss amounted to $20.83 million, compared with a net loss of $77.40 million recorded for the same quarter in 2022.
Consequently, net profit attributable to shareholders for the nine-month period amounted to $3.92 million, versus the net loss attributable to shareholders of $268.73 million for the comparable period in 2022. For the quarter, net loss attributable to shareholders amounted to $20.82 million relative to a net loss attributable to shareholders of $77.44 million for the corresponding quarter.
Loss per share (LPS) for the quarter totalled $0.02 relative to a LPS of $0.09 in 2022. For the nine months, the Company recorded an EPS of $0.005 relative to a LPS of $0.312 for the comparable period in 2022. The twelve-month trailing EPS is $0.014. The number of shares used in our calculations is 862,216,00 units. Notably, the stock price for PAL last traded on May 15, 2023 at $2.91 with a corresponding P/E ratio of 209.58x.
Balance Sheet Highlights:
As at March 31, 2023 the Company reported total assets of $1.61 billion, a 12% decline when compared to $1.84 billion in the prior year. The decline in assets was primarily due to a 59% decline in ‘Right of Use Assets’ to $106.42 million (2022: $262.32 million).
Shareholders’ Equity as at March 31, 2023 was $383.28 million compared to $373.21 million for the prior year. This resulted in a book value per share of $0.44 compared to $0.43 booked a year ago.
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.