Palaces’ $22M profit swing

Profit before tax for Palace Amusement Company had a major swing around of $22 million for the nine months to March this year to $6.8 million compared with a loss of $15.6 million and for the quarter a profit of $1.6 million was made, up from a loss of $9 million.

Revenues grew by 9 percent for the nine months to $650 million helped by strong growth in the March 2015 quarter that saw revenues increasing 12.7 percent year over year and 19.4 percent when the numbers for the Odeon Mandeville cinema that was closed late 2014 revenues are excluded. In the quarter revenues came in at $209 million from what is said to be more appealing movies than in 2014. There was minimal increase in administrative expenses while direct expenses rose less than revenues at 5.5 percent for the year to date and 10.8 percent for the quarter.
IC Insider is forecasting earnings of $24 per shares on much higher revenues in the June quarter than in the March quarter, with around 50 percent of the increase flowing to the bottom line as administrative cost should be held close to what obtained in the March quarter and losses that were incurred I the Mandeville operations removed.
Palace ended with cash funds at $66 million and has borrowed loan of only $25 million and equity of $280 million. The stock which is listed on the Jamaica Stock Exchange hardly trades with only 1.4 million units issued and closed last at $80.