Visitor flow to its attractions has increased through the year

Durrant Pate/Contributor

Dolphin Cove ended the third quarter of the year with record financial results with the Jamaican attractions company producing US$3.9 million in revenues.

This is US$1.6 million more year-over-year and US$600,000 or 17 per cent more when compared to the third quarter of 2019, which was the year before the pandemic. The flow of visitors to Dolphin Cove’s various local attractions has increased throughout the year.

During the third quarter in review, Dolphin Cove welcomed double the number of guests in to its attractions than in Q3-2021 and 25 per cent more than in Q3-2019. This is the second quarter with better attendance levels than in pre-pandemic times.

Drivers of higher expenditure

However, there has been a marked increase in expenditure, year-over-year, attached to the greater flow of guests to Dolphin Cove’s parks, the main driver being payroll cost due to three main factors:

1) Increased operating hours because in Q3-2021 its parks opened for only three to four days per week but in Q3-2022 they were open for the full week,

2) the need to cater to the increased number of visitors to our parks and

3) the full reinstatement of salaries and benefits to the pre-pandemic levels.

However, the overall payroll cost is still below the 2019 level. The company is now experiencing hopefully temporary increases in items such as energy and utilities, fuel and goods for sale.

The management, in its quarterly report to shareholders, says: “Now that we are no longer operating under the remittance of tax concession afforded to Junior Market listed companies, we are incurring tax on profits to the full extent of a regular business. We are taking this extra cost in stride and are glad that during the incentive period we utilised the savings to reinvest in the operations.”

According to the management, “the exemplary performance by our professional and experienced team in park management and marketing has resulted in the group generating US$3 million in after tax profit, the largest for a nine-month period in its history, even when there was no tax on profits”.

Strong financial position

Dolphin Cove continues to benefit from a very strong financial position with significant available liquidity and cash flow generation. Cash and cash equivalents are 52 per cent or US$1 million greater than December 2021 even though dividends of US$2 million were paid year to date.

Cash flow from operating activities was US$4.2 million for the nine months ended September 30, 2022 which is 50 per cent greater than the cash generated in the full year 2021. This performance has allowed the mostly marine attractions company to make significant investments over the nine- month period such as renovations in facilities, new attractions in Yaaman as the Secret Blue Hole and the beginning of the construction of a five-station zip line and the increase in ATV and Buggy fleet.