February 13,2018

Palace Amusement Company (PAL) reported six months total revenues of $492.99 million, an 11% increase when compared with the $443.74 million recorded for corresponding period in 2016. Total revenue for the quarter increased 10% to total $233.03 million relative to the $211.90 million recorded for same period in 2016.

Direct Expenses for the period amounted to $394.49, an 8% or $27.74 million increase when compared with the $366.74 million recorded for the same period in 2016. As such, gross profit for the period amounted to $98.51 million (2016: $77 million), a 28% or $21.51 million increase when compared to the corresponding period in 2016. Gross profit rose 34% to $43.20 million compared to $32.25 million for the corresponding quarter of 2016.

Administrative Expenses increased by $5.55 million or 6% to total $93.49 million when compared to $87.94 million recorded for the comparable period in the prior year. Notably, other operating income for the six months declined 95% to total $157,000 relative to the $3.45 million booked in same period for 2016. Consequently, operating profit for the period amounted to $5.17 million relative to an operating loss of $7.49 million in 2016. For the quarter, operating loss decreased 55% to total $4.72 million relative to the operating loss of $10.52 million booked in 2016.

For the six months period, finance costs increased 58% moving to $1.15 million relative to the $727,000 recorded in 2016. There was also no taxes incurred year-to-date for the period in review or for the comparable period the prior year.

As a result, Net profit for the six months period amounted to $4.02 million, an improvement when compared with the net loss of $8.22 million recorded in the corresponding period for 2016. For the quarter, net loss amounted to $5.28 million, a 52% increase when compared with the net loss of $10.90 million recorded for the same quarter in 2016.

Total comprehensive income for the period amounted to $6.18 million compared to a loss of $8.07 million for the corresponding period in 2016.Consequently, Net profit attributable to shareholders for the period amounted to $4.10 million, versus a loss of $8.14 million compared to the corresponding period in 2016.

Loss per share for the quarter totaled $3.65 relative to loss per share of $7.57 in 2016. For the period, the company recorded earnings per share of $2.85 relative to the loss per share of $5.67 for the comparable period in 2016. The twelve month trailing earnings per share is $34.63 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 February 12, 2018 at JMD $560.00.

Balance Sheet Highlights:

As at December 31, 2017, the Company reported total assets of $512.04 million, a 13% increase when compared to $452.5 million in the prior year.

Shareholders’ Equity as at December 31, 2017 was $362.68 million compared to $306.76 million for the prior year. This resulted in a book value per share of $252.38 compared to $213.47 booked a year ago.

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