March 08, 2021
Palace Amusement Company (PAL) reported six months total revenues of $66.62 million, a 90% decrease when compared with the $669.90 million recorded for corresponding period in 2019. Total revenue for the quarter decreased 88% to total $37.14 million relative to the $299.91 million recorded for same period in 2019.
Direct Expenses for the six months period amounted to $192.98 million, a 66% decrease when compared with the $575.47 million recorded for the same period in 2019. As such, gross loss for the period amounted to $126.35 million versus a gross profit of $94.44 million booked for 2019 corresponding period. Meanwhile, gross loss for the quarter amounted to $55.14 million compared to a profit of $29.35 million for the corresponding quarter of 2019.
Administrative Expenses, for the six months ended December 31, 2020, decreased by 51% to total $46.77 million when compared to $96.33 million recorded for the comparable period in the prior year. Notably, other operating income for the six months totalled $3.70 million relative to the other operating income of $3.94 million booked in same period for 2019. Consequently, operating loss for the six months period amounted to $169.43 million relative to an operating profit of $2.04 million in 2019. For the quarter, operating loss totalled $78.01 million compared to the operating loss of $16.77 million booked in 2019.
For the six months period, finance costs rose from $1.89 million in 2019 to $6.75 million booked in 2020. As a result, loss before tax amounted to $176.18 million relative to a profit of $149,000 booked in 2019.
There was a taxation charge of $234,000 (2019: nil), as a result, net loss for the six months period amounted to $176.41 million relative to the net profit of $149,000 recorded in the corresponding period for 2019. For the quarter, net loss amounted to $81.70 million, compared to a loss of $17.98 million recorded for the same quarter in 2019.
Total comprehensive loss for the period amounted to $173.10 million compared to a comprehensive income of $2.52 million for the corresponding period in 2019.
Consequently, Net loss attributable to shareholders for the period amounted to $176.36, versus a profit of $94,000 million booked in the corresponding period in 2019. While comprehensive loss attributable to shareholders for the period amounted to $173.30 versus an income of $2.32 million booked twelve months earlier.
Loss per share (LPS) for the period totalled $122.73 relative to earnings per share of $0.07 in 2019. For the quarter, the company recorded loss per share of $56.85 relative to the loss per share of $12.52 for the comparable period in 2019. The twelve month trailing loss per share is $192.26 and the number of shares used in our calculations is 1,437,028 units. Notably, the stock price for PAL closed the trading period on March 05, 2021 at J$814.15.
Balance Sheet Highlights:
As at December 31, 2020, the Company reported total assets of $1.02 billion, a 35% increase when compared to $759.34 million in the prior year. This growth resulted from ‘Right of use Assets’ amounting to $318.75 million (2019: nil). This increase was tempered by a 80% decrease in ‘Cash and bank balance’ to $11.83 million (2019: $59.61 million).
Shareholders’ Equity as at December 31, 2020 was $222.39 million compared to $501.26 million for the prior year. This resulted in a book value per share of $154.76 compared to $348.81 booked a year ago.
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 effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.