Reverses losses to post modest net profit of US$94,439

Durrant Pate/Contributor

Margaritaville (Turks) Limited (MTL) has seen an explosive jump of almost 262,000 per cent in its revenues for the first quarter ended August 31, 2022.

For that period, the entertainment and attractions company improved its revenues to US$1.42 million, up from the mere US$543 recorded in 2021, when the business was shuttered due to the pandemic. Cost of sales also increased to US$390,313 (2021: US$812), which resulted in a gross profit of US$1.03 million (2021: gross loss of US$269).

The management is highlighting that, “despite the challenges in logistics experienced from the effects of the COVID-19 pandemic and the shortages that the Ukraine war is causing, the company managed to deliver a respectable 27.4 per cent Cost of Sales for the Quarter.”

Big rise in expenses

Total expenses increased 223 per cent for the period under review to US$909,187 (2021: US$281,887). Promotional Expenses amounted to US$7,856 (2021: nil).

Depreciation and amortization dropped by six per cent to US$68,792 (2021: US$72,839).

Other operating income amounted to US$273 for the period (2021: expense of US$4,419). The 12-month trailing loss-per-share (LPS) was US$0.003, while for Q1 2022, there was an earning per share amounting to US$0.0014 compared to an LPS of US$0.0042 last year.

The company, as at August 31, 2022, recorded total assets of US$4.50 million, an increase of 11 per cent when compared to US$4.04 million as at August 31, 2021. This was mainly due to ‘Owing by related companies’ for the period totaling US$604,235 (2021: nil).

Total Stockholders’ equity as at August 31, 2022 closed at US$2.40 million, a nine per cent decrease from US$2.63 million for the corresponding period last year. This resulted in a book value of US$0.0355 (2021: US$0.039).