November 30, 2020
Palace Amusement Company’s (PAL) audited results for the year ended June 30, 2020 reported total revenues of $919.84 million, a 17% decrease when compared with the $1.11 billion recorded for the corresponding period in 2019. The total revenue for the quarter decreased 94% to total $20.67 million relative to the $338 million recorded for the same period in 2019.
Direct Expenses for the year amounted to $880.58 million a 2% decrease when compared with $900.09 million recorded for the same period in 2019. As such, gross profit for the period amounted to $39.26 million (2019: $212.55 million), an 82% decrease when compared to 2019. For the quarter PAL recorded a gross loss of $48.50 million, relative a gross profit of $76.23 million for the corresponding quarter of 2019.
Notably, the company booked an operating income of $6.88 million, versus $6.14 million recorded for the prior year.
Administrative Expenses decreased by $12.25 million or 7% to total $174.49 million when compared with the $186.74 million recorded for the comparable period in the prior year. Consequently, operating loss for the period amounted to $128.34 million, relative to an operating profit of $78.51 million in 2019 corresponding period. For the quarter, operating loss totalled $84.74 million relative to an operating profit of $37.61 million booked in 2019.
For the period, finance cost increased significantly to $5.47 million relative to the $1.70 million recorded in 2019; resulting in profit loss before of $133.81 million, versus a profit of $76.81 million booked in 2019. Tax credit for the period in review amounted to $34.20 million relative to tax charges of $6.45 million recorded for the comparable period for the prior year.
As a result, Net loss amounted to $99.61 million, relative to a net profit of $70.36 million recorded in 2019. For the quarter, net loss amounted to $50.54 million, relative to a net profit of $31.17 million recorded for the same quarter in 2019.
Total comprehensive loss for the year amounted to $102.89 million compared to an income of $67.49 million for the corresponding period in 2019.
Consequently, Net loss attributable to shareholders for the year amounted to $99.84 million, versus an attributable profit of $82.43 million documented for 2019.
Loss per share (LPS) for the year ended totaled $69.47 (2019: EPS $57.36), while LPS for the quarter totaled $35.22 relative to an EPS of $21.68 in 2019. The number of shares used in our calculations is 1,437,028 units. Notably, the stock price for PAL closed the trading period on November 30, 2020 at J$1,300.00.
Balance Sheet Highlights:
As at June 30, 2020 the Company reported total assets of $1.04 billion, a 48% increase when compared to $702.88 million in the prior year. This increase in assets was primary due to ‘Right of use assets’ to total $318.75 million (2019: nil) and ‘Property, Plant &Equipment’ which closed at $533.61 million (2019: $452.42 million).
Shareholders’ Equity as at June 30, 2020 was $395.69 million compared to $498.94 million for the prior year. This resulted in a book value per share of $275.35 compared to $347.20 booked a year ago.
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