Spending on election advertising in Trinidad & Tobago and new technology employed by helped One Caribbean Media to post strong profit for the September quarter with an increase in revenues of 9.4 percent to TT$147.4 million in the September quarter and with an increase of 60 percent in after tax profits of $30 million.
Earnings per stock unit for the nine months to September, is 93 cents and 43 cents for the quarter and could end around $1.30 for the year.
For the nine months, profits rose to $64.4 million from $57.8 million, in 2014 from nine months revenues of $385 million, that is down on the $402 million generated in 2014. The highest income generated period is the final quarter for the year, with increased demand during the Christmas period.
For the 12 months to December last year, revenues came in at $548 million with profit of $85 million. Helping the performance is a drop in Direct cost from $88 million in the 2014 quarter to $83 million for the 2015 period and for the nine months for 2015 to $234 million versus $260 million in 2014, administrative cost were held tightly with a small increase.
The company’s stock is traded on the Trinidad & Tobago Stock Exchange and closed on Wednesday at $22.50. the company operates radio, TV stations in Trinidad and Tobago and operates in the print media as well.
Election spend pushes One Caribbean Profit
22% percent increased cement sales in Q3
Carib Cement closed at a new 52 weeks’ high of $12
For the nine months to September 2015, the company ended with a profit after tax of $1.486 billion. In 2014 a profit of only $25 million was realised for the nine months last year. The 2015 results translate to earnings per share of $1.75 at September. For the quarter to September, profit after tax amounted to 72 cents per share or $617 million compared with just $78 million in the 2014 quarter. If the sales trend continues, earnings per share should hit $2.50 for 2015 which includes an exceptional income of $168 million or about 15 cents per share. The company’s stock traded at $15 on Friday and now carries a PE of 6.5 times this year earnings, and seems set to move up in price with these results with the valuation of the most valued stocks on the market being at 10.
Gross cash generated by operating activities amounted to $2 billion and after repaying loans ended at $997 million in cash funds.
Revenue for the third quarter grew by $741 million or 21 percent over the same period in 2014 mainly driven by improved domestic sales volumes and increased clinker exports which compensated for the decline in cement export sales volumes. The company benefited from lower costs of fuels and energy and Interest expense that decreased by 73 percent for the quarter to only $16 million, from $59 million in 2014. For the nine months interest expenses ended at $120 million from $196 million as a result of the company’s financial restructuring initiative resulting in some prepayments of long-term debt in excess of $800 million. Depreciation and amortisation cost, however, rose from $83 million in the September 2014 quarter to $102 million in 2015 and to $296 million for the nine months from $251 million in 2014.
The vastly improved results have changed the financial structure with net working capital jumping from just $360 million surplus to $2 million at September and equity rising to $6.4 billion from $4.8 at the end of September 2014.
Alphabet (Google) makes billions
Alphabet formerly Google reports total revenue was $18.7 billion up 13 percent year-over-year to September this year and 5 percent over the prior quarter. The strengthening of the U.S. dollar, resulted in negative currency on revenues amounting to $1.6 billion or $1.3 billion after the benefit of the company’s hedging program.
At constant currency to prior periods, total revenue grew 21 percent year-over-year and 7 percent quarter over quarter. On a General Accepted Account Principles (GAAP) basis, operating profit was $4.7 billion and the operating margin was 25 percent. Non-GAAP operating profit was $6.1 billion and the operating margin was 33 percent. GAAP operating income was up 26 percent versus last year and GAAP net income from continuing operations was up 36 percent year-over-year. The year-on-year increases reflect a non-cash impairment charge of $378 million in the third quarter of 2014. Non-GAAP operating income was up 15 percent year-over-year and non-GAAP net income was up 19 percent year-over-year.
Profit available to common shareholders excluding extraordinary items amounted to $3.4 billion for the June quarter and $3,515 billion in the March quarter.
GAAP earnings per diluted share were $5.73 non-GAAP earnings per diluted share were $7.35.
Newly listed T&TNGL rules on TTSE
The Class B Shares of Trinidad and Tobago NGL Limited was listed on the Trinidad and Tobago Stock Exchange on Monday and gained TT$3 to close at $23 from the offering for sale price of $20. The company saw trading in 18,000 shares valued at $414,000. The stock closed with a bid of $23 to buy 362,287 shares with none on offer, a good sign that the price is headed higher with a PE ratio of less than 10 times this year’s earnings.
The company generated an operating profit of US$15 million for the March quarter of 2015, a fall of 65.5 percent compared to the 2014 quarter. Earnings per share based on the annualised first quarter results, is 25 TT cents. A total of 75.8 million out of 116,100,000 issued shares, were offered to the public to raise $1.5 billion for the government of Trinidad and Tobago.
Activity elsewhere on the Stock Exchange, on Monday ended with 11 securities trading. At the close, there was just 1 stock closing higher, declined and 9 remained unchanged as a total of 33,337 units traded, valued at $651,432. At the close the Composite Index ending with a rise of 3.57 points at 1,150.15, the All T&T Index gained 7.08 to 1,953.33 and the Cross Listed Index was unchanged at 45.52.
Losses| Clico Investment Fund closed with 800 shares changing hands to end at $22.50, after falling 1 cent.
Firm Trades| First Citizens Bank traded 2,851 shares and closed at $35, Flavorite Foods contributed 2,200 shares in trading, to close at $4.80, Grace Kennedy had 2,502 units changing hands at $3.60, 
Guardian Holdings with 4,986 shares trading, closed at $13.13. Guardian Media traded 888 shares with the price remaining at $19.76, Massy Holdings traded 50 shares with the price ending at $62.46, Republic Bank closed with 28 shares trading for $112, Sagicor Financial Corporation closed with 950 shares changing hands, to end at $6 and Scotiabank ended with 82 shares trading to end at $62.50.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 4 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.
191% profit surge for Jamaica Broilers
Jamaica Broilers stock traded at $8 for a gain of 98 percent this year to date, partially spurred by 191 percent jump in after tax profit for the July quarter, to $331 million from $114 million in 2014.
Revenues for the quarter climbed 13 percent to $9 billion which, compared to the $7.8 billion in 2014. Earnings per stock amounts to 27.58 cents against 9.47 cents in the corresponding period last year.
Gross profit grew much faster than revenues at 32 percent to $2.28 billion over the corresponding quarter last year and gross profit margin rose to 25.54 percent from 21.88 percent in 2014. The fall in world market prices for energy and corn along with the closure of the ethanol operation would have contributed to some of the reduction in direct cost. Distribution and selling cost climbed to $248 million from $226 million and administration and other expenses rose by 17.5 percent to $1.5 billion.
Free cash flow from operations generated $851 million leading to cash and investments of $1.8 billion at the end of the quarter, down from $2.3 billion in 2014 as the company repaid just over $300 million in loans and $545 million in payables while receivables growth consumes $380 million, year over year.
Segment results show the Jamaican operations enjoying a marked improvement over 2014 with segment profit of $697 million in the 2015 July quarter, from $448 million reported last year. “We are recording increased sale volumes in poultry and feed products. In addition our focus on cost containment and improvements in the production processes for poultry and feed are bearing fruit,” the company said in its report to shareholders. The US segment show 31 percent sales growth to $2.07 billion from $1.58 billion in 2014 but slightly lower segment profit of $266 million versus $271 million while the Haitian operation performed below that of the prior year period.
The company stated that “Operations are now at an optimal level with respect to the sale of our main product –fertile eggs for the broiler industry. We expect steady growth in other product lines in this segment. In the Other Caribbean Operations, Haiti Broilers SA has increased production and sale of table eggs to 13 percent of the market, compared to 8 percent at the end of the first quarter last year. The positive effect of this volume growth has however been neutralized by significant increases in operating costs due to the depreciation of the Haitian Gourde against the US dollars during this quarter. Our move into sustained profitability in Haiti has therefore been delayed. This segment was also impacted by impairment and mark- to- market adjustments, amounting to $44 million, on certain financial assets in two of our St. Lucian subsidiaries”.
Jamaica Broilers should end up with earnings in the region of $1.30 for the 2016 fiscal year ending April compared with 86.4 cents for 2015. The PE for the stock is just over 6 at the current price of $8. The company declared the payment of an interim dividend of 10 cents per share, payable on November 13. In May this year a payment of 9 cents per share was paid.
Knutsford doubles profit
Knutsford Express more than doubled its profit for the first quarter to August, with a jump of 109 percent to $35.7 million, from $17 million in 2014 and revenues that climbed 38.5 percent to $143 million. The increased revenue “was due to growth in passenger travel” the company stated in its report to shareholders.
Administrative and general operating expenses grew by a much slower 23 percent to $104 million than revenue. Depreciation climbed from $5.4 million to $7.55 million and finance amounts to $3.9 million and is up from $2.3 million in 2014.
Unfortunately the company has not provided information on the composition of administrative and general operating expenses. Based on the last audited financials, the largest cost items are fuel, accounting for around 19 percent of cost, labour for 34 percent and repairs around 10 percent for a total of 43 percent or thereabout.
Earnings per share is 36 cents for the 2015 quarter, putting full year earnings in the $1.60 region.
The company provides a popular coach bus service that plies between Kingston and the North and South coasts of Jamaica. Service was extended to Port Antonio from Ocho Rios earlier in 2015 but will take time to build as more persons become familiar with it. Going forward it is unsure what the opening of the highway to Ocho Rios from Kingston will mean for growth. What is sure it will take less time to cover the route with less operating cost per trip and will allow them to better compete with air travel as the time factor to and from Montego Bay and Kingston will be reduced.
The stock is listed on the junior market of the Jamaica Stock Exchange and has been trading around $6.10, for some time. These results should give the price a lift as the value is very low compared to others on the market, but management needs to improve on the inadequate manner of reporting the results, if not investors will be skeptical about the financial performance and shy away from the stock.
At the end of the quarter, shareholders equity stands at $250 million and liabilities of just $91 million and current assets of $157 million which includes cash and investments of $79 million and other assets of $61 million that rose from $21 million in May this year.
The company paid a dividend of 15 cents per share on September 15.
Paramount rolls along with more profits
Paramount office
“Year over year, operating expenses as a percentage of total revenue increased 16.9 percent versus 14.9 percent as the company continued to strengthen its team and streamline operations. Paramount has a positive outlook for the rest of the year as it continues to aggressively pursue growth opportunities,” Hugh Graham, CEO & Managing Director stated in a report to shareholders accompanying the financials.
During the quarter the company generated $44 million in cash from operations and ended up with new cash funds of $69 million after reducing the level of receivables by $20 million, payables grew by $33 and Inventory rose by $15 million, putting cash and equivalent at $164 million at the end of the August.
Some of the products the company handles
Earnings per share for the quarter ended at 28 cents compared with 22 cents, in the August 2014 quarter and 95 cents for the 2015 year that ended in May. IC Insider forecast $1.45 per share for the full year. The stock trades at $6.10 on the Junior market, placing the PE ratio at 4 with much room for growth in the stock price with nearly half of the junior stocks valued at an average of 8.6 times current year’s earnings with all of those above 7.7 times.
The company will be considering a dividend at a directors’ meeting to be held on Thursday, October 29. The last dividend paid, was 15.1 cents per share on December 12, last year and in December 2013, 13.5 cents. With the 2015 full year profit being up by 57 percent over 2014, investors should see an increase to about 23.5 cents per share being paid this time around.
Kremi’s big surge forward
Sharp reduction in cost of sales and a 7 percent increase in revenues that ended at $271 million swelled profit in the August quarter for Caribbean Cream by more than 4,000 percent to $45.5 million and for the six months by 375 percent to $84.7 million from an 11 percent increase in sales to $560 million.
Cost of sales dropped 18 percent from $195.4 million to $161 million for the August quarter due mainly to a fall in the price or raw material input and from $378 million incurred for the half year in 2014, cost dropped to $339.4 million, lifting gross profit by 88 percent for the quarter to $110 million and by 73 percent for the six months versus that of 2014, to $221 million.
Administrative expenses climbed 37.8 percent to $102 million due mainly to implementation of sanitation measures that had to be implemented while selling and distribution expenses grew from $23.5 million to $25 million for the six months period, compared to that of 2014 and for the quarter, administrative expenses climbed by a more sedate 13.6 percent to $46 million while selling and distribution expenses grew from $12 million to $14 million.
Earnings per share amounted to 22 cents for the half year and 12 cents for the quarter. IC Insider is now forecasting earnings of 65 cents per share for the full year ending February 2016, due to the lower increase in sales in the August quarter than the 15 percent increase in the first quarter. The stock ended at a record close of $2.55 on Tuesday and has gained 240 percent for the year to date. IC Insider expects it to make further gains, as it is priced well below other stocks on the junior market that are selling above 7.6 times this year’s earnings with an average of 8.4.
A lot of the gains in profit came from the decline in raw material input, helping to push gross profit margin from 27 percent to 43 percent. Going forward increased input cost can place pressure on margins unless investment measures plan by Caribbean Cream to lower cost and create a more efficient operation are able to improve revenues and cut cost to compensate for any potential raw material cost increase that may arise. Cost increase in the medium term seems unlikely with downward pressure on input cost, the company has cash that it could be used to build up inventory at low prices if they sense the potential for prices to rise and thus mitigate against sharp price increases for the rest of the fiscal year.
Radio Jamaica increased profit
Radio Jamaica increased profits for the quarter to June this year over that of 2014 by 44 percent after taxation, to reach $22 million from a 6 percent increase in sales revenues that hit $516 million. Other revenues contributed $25 million versus $20.7 million in 2014 to income.
RJR said that the provision of news services such as “Over the Top” (OTT) which relates to video, television and other services provided over the internet generated added revenues for them as well as added cost.
Administrative expenses jumped 15.4 percent to $126 million and selling expenses rose to $84.5 or 16.4 percent over the same period in 2014, the cost increase was partially due to the introduction of the OTT service, but wage increase and commission payments also contributed to the increase RJR said. Other operating expenses declined by $20 million to $79 million helped by lower energy and fuel cost.
The company reported earnings of 6 cents per share for the quarter and 32 cents for 2015 fiscal year and seems headed to earn 40 cents for the fiscal year ending March 2016. There is talk of general elections being held soon although that is just talk, with no concrete evidence to support it and with several developments in the country suggesting it may be later in 2016, that is will be held. Whenever it is held, RJR will benefit from added revenues as well as increased cost covering the event.
RJR entered into an agreement with the Gleaner to merge the two media operations which will involve RJR splitting the number of existing issued shares into approximately three and for the Gleaner shareholders to get 1 of the new RJR shares for each Gleaner share. If successful the expanded RJR should see reduction in cost as certain areas are combined thus reducing cost and should result in an improved profit per share going forward. It probably won’t be until the 2017 fiscal year that full effect of the merger will be seen.
RJR last traded on the Jamaica Stock Exchange at $3.08 but had a bid at $3.50.
38% jump in Prestige’s profit
A 38 percent jump in fast food restauranteur Prestige Holdings’ profit in the quarter to August this year over the similar quarter last year pushed quarterly profits to $17.2 million from an increase of 6 percent in revenues to $254 million for the same periods.
For the nine months to date, revenues climbed 4 percent to $723 million and profit 14 percent after tax to $41 million over the similar 2014 period.
Expenses have been kept tight, for the restaurant operator with 112 locations within the Caribbean, but mostly in Trinidad, with Franchises for KFC, Pizza Hut, Subway and TGFI brands. The small revenue growth is indicative of a company operating in tight economies, with that of Trinidad, estimated to have fallen by 2 percent in real terms, for the year to June.
Earnings per share for the quarter is 28 cents and for the nine months 66 cents. The stock traded last on the Trinidad and Tobago Stock Exchange at TT$9.90.
