February 14, 2020

Palace Amusement Company (PAL) reported six months total revenues of $669.90 million, a 29% increase when compared with the $520.09 million recorded for corresponding period in 2018. Total revenue for the quarter increased 20% to total $299.91 million relative to the $250.71 million recorded for same period in 2018.

Direct Expenses for the period amounted to $575.47 million, a 37% increase when compared with the $421.05 million recorded for the same period in 2018. As such, gross profit for the period amounted to $94.44 million (2018: $99.04 million), a 5% decrease when compared to the corresponding period in 2018. Meanwhile, gross profit for the quarter fell 35% to $29.35 million compared to $45.45 million for the corresponding quarter of 2018.

Administrative Expenses, for the six months ended December 31, 2019, decreased by 4% to total $96.33 million when compared to $99.90 million recorded for the comparable period in the prior year. Notably, other operating income for the six months totalled $3.94 million relative to the other operating loss of $2.78 million booked in same period for 2018. Consequently, operating profit for the six months period amounted to $2.04 million relative to an operating loss of $3.65 million in 2018. For the quarter, operating loss totalled $16.77 million compared to the operating loss of $14.03 million booked in 2018.

For the six months period, finance costs rose 110% moving from $901,000 in 2018 to $1.89 million booked in 2019. There was no taxation charge, as a result, net profit for the six months period amounted to $149,000 relative to the net loss of $4.55 million recorded in the corresponding period for 2018. For the quarter, net loss amounted to $17.98 million, compared to a loss of $14.49 million recorded for the same quarter in 2018.

Total comprehensive income for the period amounted to $2.52 million compared to a comprehensive loss of $265,000 for the corresponding period in 2018.

Consequently, Net profit attributable to shareholders for the period amounted to $94,000, versus a loss of $4.59 million booked in the corresponding period in 2018.

Earnings per share for the period totalled $0.07 relative to loss per share of $3.19 in 2018. For the quarter, the company recorded loss per share of $12.52 relative to the loss per share of $10.10 for the comparable period in 2018. The twelve month trailing earnings per share is $60.62 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 13, 2020 at JMD$2,789.00.

 Balance Sheet Highlights:

As at December 31, 2019, the Company reported total assets of $759.34 million, a 21% increase when compared to $627.57 million in the prior year. This growth resulted from the 121% increase in ‘Property, Plant and Equipment’ to $505.01 million (2018: $228.52 million). This increase was tempered by a 78% decrease in ‘Investments’ to $37.88 million (2018: $173.70 million).

Shareholders’ Equity as at December 31, 2019 was $501.26 million compared to $483.06 million for the prior year. This resulted in a book value per share of $348.81 compared to $336.15 booked a year ago.

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