May 15, 2018

Palace Amusement Company (PAL) for the nine months ended March 31,2018 reported total revenues of $835.96 million, a 21% increase when compared with the $691.08 million recorded for corresponding period in 2017. Total revenue for the quarter increased 39% to total $342.97 million relative to the $247.34 million recorded for same period in 2017.

Direct Expenses for the period amounted to $647.41 million a 15% or $85.29 million increase when compared with the $562.12 million recorded for the same period in 2017. As such, gross profit for the period amounted to $188.55 million (2017: $128.96 million), a 46% or $59.59 million increase when compared to the corresponding period in 2017. Gross profit rose 73% for the quarter to $90.05 million compared to $51.96 million for the corresponding quarter of 2017.

Administrative Expenses increased by $9.64 million or 7% to total $138.65 million when compared to $129 million recorded for the comparable period in the prior year. Notably, other operating income for the nine months declined 82% to total $1.07 million relative to the $5.93 million booked in same period for 2017. Consequently, operating profit for the period amounted to $50.98 million, a 766% increase relative to an operating profit of $5.89 million in 2017. For the quarter, operating profit increased 242% to total $45.80 million relative to the $13.38 million booked in 2017.

For the nine months period, finance costs increased 76% moving to $1.68 million relative to the $958,000 recorded in 2017. Taxes incurred year-to-date for the period in review amounted to $7,000 relative to no taxes recorded for comparable period the prior year.

As a result, Net profit for the nine months period amounted to $49.29 million, a 900% improvement when compared with the net profit of $4.93 million recorded in the corresponding period for 2017. For the quarter, net profit amounted to $45.26 million, a 244% increase when compared with the $13.15 million recorded for the same quarter in 2017.

Total comprehensive income for the period amounted to $51.31 million compared to the $6.18 million for the corresponding period in 2017.

Consequently, Net profit attributable to shareholders for the period amounted to $49.41 million, versus the $5.04 million compared to the corresponding period in 2017. For the quarter, Net profit attributable to shareholders amounted to $45.31 million (2017:13.19 million).

Earnings per share for the quarter totaled $31.53 relative to $9.18 in 2017. For the period, the company recorded earnings per share of $34.38 relative to $3.51 for the comparable period in 2017. The twelve month trailing earnings per share is $56.99. The number of shares used in our calculations is 1,437,028 units. Notably, the stock price for PAL closed the trading period on May 15, 2018 at JMD $1425.00.

Balance Sheet Highlights:

As at March 31, 2018 the Company reported total assets of $582.14 million, a 32% increase when compared to $440.85 million in the prior year. This increase in assets was primary due to a 194% increase in ‘Cash and Bank Balances’ to total $112.97 million (2017: $38.44 million).

Shareholders’ Equity as at March 31, 2018 was $410.23 million compared to $324.38 million for the prior year. This resulted in a book value per share of $285.47 compared to $225.73 booked a year ago.

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