Profits more than tripled in the September quarter, moving by 208 percent to $6.46 million from $2.1 million in 2022 at Transjamaican Highway, from a 15 percent increase in revenues over the September 2022 quarter to $19.2 million from $16.7 million. For the nine months, profit chipped in with a 327 percent surge to $17.5 million, up from $4.1 million in 2022, from a 17.8 percent rise in revenues to $55.4 million from $47 million in 2022.
Operating expenses fell from $9.9 million in the September 2022 quarter to $5.6 million and from $29 million to $16.6 million for the nine months to September. Administrative expenses rose from just $358,000 to $2 million for the quarter and year to date, it moved from $1 million to $6 million. Finance costs inched down from $3.75 million to $3.63 million and, for the nine months, from $11.2 million to $10.94 million.
Profit before tax amounts to $8.6 million versus $2.8 million in the previous year’s third quarter and year to date, it jumped to $23.2 million from just $5.8 million in 2022.
Taxation accounted for $2.1 million in the September 2023 quarter, up from $714,000 and for the nine months, to $5.77 million versus $1.7 million in the previous year.
Earnings per share reported for the quarter is 0.0005 US cents, up from 0.0002 US cents in 2022 and year to date, 0.0014 US cents versus 0.0003 US cents in the previous year. The full year results should be around 2 US cents per share.
The exceptional results emanate primarily from acquiring the majority shares in Jamaican Infrastructure Operators that lowered operating costs and raised revenues.
Gross cash flow of $35 million was generated, up from $17.9 million nine months to September in the prior year, resulting in $12.9 million in free funds available for use at the end of the fiscal period from $7.3 million at the end of September 2022 after repaying $5.4 million in loans, compared with $4.7 million for the same period in the previous year and after moving $17.7 million to restricted cash, up from $10.6 million in 2022, but before the payment of dividends.
Transjamaican Highway
Shareholders’ equity stands at $42 million, down from $51 million in September 2022 and $40 million at the end of 2022. Total current assets amount to $15.4 million, up from $8.4 million at the end of September 2022. Total current liabilities ended at $32.3 million, including a provision of $15 million for dividend payment and $7 million in 2022, the latter being a part of the $23 million in total current liabilities at the end of September 2022.
The Board of Directors approved an interim dividend of J$0.1866 per share paid on October 25, totalling J$2.33 billion. A dividend of $0.0855 per share amounting to J$1.069 billion was paid on October 25, 2022.
ICInsider.com projects 30 Jamaican cents per share earnings for the current year and 40 cents for 2024, which will be helped by the company earning income from the new leg of the highway from May Pen to Mandeville. The Jamaica dollar denominated stock traded at $2.58 on the Jamaica Stock Exchange on Tuesday, with a PE of 8.3 and is valued at 6 times 2024 earnings.
At the above price, the dividend yield is 7.23 percent per annum, but by 2024, the yield based on the present price will most likely be higher as the company increases the amount paid as profit grows.
In April with the price at $1.77, ICInsider.com placed the stock on a Stock to Watch list, since then the price is up 47 percent and 57 percent including the 2023 dividend.
