December 2, 2021

Palace Amusement Company’s (PAL) for the year ended June 30, 2021, reported total revenues of $105.77 million, an 89% decrease when compared with the $919.84 million recorded for the corresponding period in 2020. The total revenue for the quarter decreased 48% to total $10.77 million relative to the $20.67 million recorded for the same period in 2020.

Direct Expenses for the year amounted to $341.79 million a 61% decrease when compared with $880.58 million recorded for the same period in 2020. As such, gross loss for the period amounted to $236.02 million, relative to a profit of $39.26 million booked in 2020. For the quarter, PAL recorded a gross loss of $50.82 million, relative a gross loss of $48.50 million for the corresponding quarter of 2020.

Notably, the company booked an operating income of $6.62 million, versus $6.88 million recorded for the prior year.

Administrative Expenses decreased by $61.39 million or 35% to total $113.10 million when compared with the $174.49 million recorded for the comparable period in the prior year. Consequently, operating loss for the period amounted to $342.49 million, relative to an operating loss of $128.34 million in the corresponding period of 2020. For the quarter, operating loss totalled $98.80 million relative to an operating loss of $82.37 million booked in 2020.

For the period, finance cost increased significantly to $15.90 million relative to the $5.47 million recorded in 2020; resulting in loss before tax of $358.39 million, versus a loss of $133.81 million booked in 2020. Tax charge for the period in review amounted to $24.68 million relative to tax credit of $34.20 million recorded for the comparable period for the prior year.

As a result, Net loss amounted to $383.08 million, relative to a net loss of $99.61 million recorded in 2020. For the quarter, net loss amounted to $128.34 million, relative to a net loss of $50.54 million recorded for the same quarter in 2020.

Total comprehensive income for the year amounted to $240.89 million compared to a loss of $102.89 million for the corresponding period in 2020. While for the quarter, comprehensive income amounted to $493.25 million (2020: loss of $49.61 million).

Consequently, Net loss attributable to shareholders for the year amounted to $383.01 million, versus an attributable loss of $99.84 million documented for 2020.

Loss per share (LPS) for the year ended totaled $266.53 (2020: LPS $69.47), while LPS for the quarter totaled $89.35 relative to an LPS of $35.22 in 2020. The number of shares used in our calculations is 1,437,028 units. Notably, the stock price for PAL closed the trading period on December 1, 2021 at J$1,010.36.

Balance Sheet Highlights:

As at June 30, 2021, the Company reported total assets of $1.56 billion, a 50% increase when compared to $1.04 billion in the prior year. This increase in assets was primary due to ‘Property, Plant &Equipment’ which closed at $1.15 billion (2020: $533.61 million).

Shareholders’ Equity as at June 30, 2021 was $636 million compared to $395.69 million for the prior year. This resulted in a book value per share of $442.58 compared to $275.35 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.