May 12, 2022
Figures are quoted in United States dollars (except where it is indicated otherwise):
Transjamaican Highway Limited (TJH), for the three months ended March 31, 2022, reported a 21% increase in revenue which totalled US$14.88 million, relative to US$12.28 million in the corresponding quarter last year. TJH noted that the increase was “attributable to the relaxation and further lifting of the measures implemented to combat the spread of the COVID-19.”
Other gains amounted to US$11,000 for the quarter ended March 31, 2021 (2021: US$511,000). The Company noted, “other gains and losses are comprised primarily of the gains produced by financial market operations and resulting financial income on investment instruments and the change in value of equity investments. Under the Concession Agreement, the Company also has the right to collect revenues generated from commercial exploitation of the areas surrounding the Toll Road, including gas stations and related ancillary services, electricity and telecommunication cables and fiber optics.”
The growth is other gains was due to, “foreign exchange losses realized on the revaluation of the 8.0% (JMD) Cumulative Redeemable Preference Shares for the quarter and was offset by slightly higher interest earned from the investment of the Restricted Cash.”
For the three months ended March 31, 2022, operating expenses totalled US$9.75 million versus the US$8.09 million in the comparable quarter last year, a 21% increase year over year. “This increase was primarily due to higher amortization of intangibles associated with the traffic recovery for the quarter and higher Operator’s fee associated with the movement of the exchange rate and CPI. Other increases included costs relating to the acquisition of our new My T-Tag App and for equipment and spares purchased to improve the services offered in the Tag lanes,” as per TJH.
Administrative expense rose 8% to US$347,000 (2021: US$320,000).
Finance cost for the quarter ended March 31, 2022, equalled US$3.64 million when compared to US$3.81 million for the corresponding quarter last year. According to management, the decrease was due to “slightly lower first quarter interest payments for the secured notes since principal is being repaid on a quarterly basis.”
Profit before taxation closed at US$1.51 million versus a profit before taxation of US$575,000 as at March 2021.
The Company report taxation of $477,000 for the three months ended March 31, 2022 (2021: nil). This resulted in a net profit of US$674,000, a 17% growth on the US$575,000 for the corresponding quarter last year.
Consequently, earnings per share (EPS) amounted to US0.0054 cents for the quarter ended March 31, 2022 relative to US0.0046 cents last year. The twelve months trailing amounted to US0.033 cents. The number of shares used in this calculation was 12,501,000,000 shares. TJH traded on May 12, 2022 at JMD$1.63 while TJHUSD closed at US$0.01 with a corresponding P/E of 32.40 times.
Balance Sheet at a Glance:
As at March 31, 2022, total assets closed at US$307.99 million relative to US$319.14 million the prior year. This decline was attributed to the 5% decrease in ‘Intangible asset’ which ended at US$222.18 million (2021: US$235.05 million), “this decrease resulted primarily from further amortization of the Intangible asset, a reduction of the deferred tax asse” as per TJH . The movement was offset by a 224% increase in ‘Cash and bank balances’ amounting to US$7.96 million (2021: US$2.46 million).
Shareholders’ equity totalled US$54.81 million (2021: US$57.62) resulting in a book value of US$0.0044 (2021: US$0.0046).
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.