Black Panther

Miraculous turnaround at Palace

February 24, 2023 by IC Insider.com

After nearly three years in the doldrums and on life support, helped by a number of popular and well patronized movies, Palace Amusement surged back to life in the December 2022 quarter when it made the first quarterly profit since March 2020. The profit back then was $44 million from revenues of $255 million, with the latest results surpassing it and easing much of the pain and nervousness the company and its staff encountered over the past three years.

Carib Cinema, the flagship for Palace Amusement.

“The company staged three block-buster pictures in the same Quarter – Woman King, Black Panther 2: Wankanda Forever and Avatar 2: The Way of Water; Our patrons’ response was close to 215,000 visits in the Quarter and this helped to push the overall attendance at the end of the six months to over 80 percent of pre-pandemic numbers,” the company’s management stated in a report accompanying the financials.
Palace aced the December quarter with revenues of $486 million, up 222 percent from just $151 million in 2021 and $736 million for the half year, up 218 percent from a mere $232 million in 2021. Accumulated profit of $304 million at June 2019, melted away by $772 million of losses, to a deficit of $468 million up to September last year as revenues were lower than cost, but profit surged to $79 million in the December quarter from a massive loss of $112 million in 2021 and for the half year a profit of $25 million from a loss of $191 million in 2021.
While revenues surged over 200 percent, direct expenses rose a more modest 98 percent in the December quarter and 97 percent, year to date, helping to swell the profit for both periods, but administrative expenses fell from $75 million to $47 million in the quarter and from $104 million for the half year to $75 million. Finance cost rose from $12 million in the 2021 last quarter to $14 million and from $17 million to $28 million for the half year. Legal and professional fees is one of the major areas of cost reduction in the period, dropping from $44 million to just $2 million for the six months period.
Segment Results show revenues of $266 million for Carib Cinema, up from just $91 million in 2021, with a profit of $11 million versus a $21 million loss in 2021. Cineplex had no revenues in 2021 but suffered a loss of $14 million and bounced back in 2022 with revenues of $99 million and profit of $20 million. Sunshine Palace generated revenues of $203 million versus $54 million in 2021 with profit of $41 million compared with a loss of $35 million in 2021. The 2022 revenues include $43 million classified as other activities for Sunshine Palace. Multiplex delivered revenues of $143 million in 2022, up from just $35 million in 2021 with a profit of $20 million versus a loss of $23 million in 2021.
Cash flow brought in $53 million compared with outflows of $163 million in 2021 and helped in boosting funds on hand at the end of the calendar year.

Palace Multiplex in Montego Bay.

From all that can be seen movies are still attracting patronage with what have been described as some good films and by the end of the fiscal year in June, the company seems set to be on its way to justifying their new bankers backing the company with a $700 million loan some of which was used to close out the Scotiabank loan and when the full history of this period unfolds the name Carol Lee, the financial controller will be high on the list for helping to save and restore the company to financial health.
The company now boast equity of $404 million thanks to the above profit and some $772 million in revaluation surplus, with $606 million of it coming in 2020. The company has some more lifting to do to steer them out of the woods while hoping that there will be no major setback in the recovery as they have $756 million in long term debt to be cleared in addition to $60 million of short term loans. There are halfway there with cash funds of $379 million on hand that should grow in the second half of the fiscal year. Palace also has accounts payable amounting to $435 million at the end of 2022 which is up from $386 million at the end of December 2021 and is covered by current assets of $481 million.
At this year’s annual general meeting, shareholders approved a 600 to 1 split as a result the stock trades x-split starting Monday, February 27, with the record date of February 28. The split will take the total number of shares to 862 million from 1.437 million currently.
The company should deliver earnings for the full year ending in June at around $100 per share.

Filed Under: At the Movies, Company News, Company Results Tagged With: Avatar, Black Panther, Carol Less, Emerging markets, Jamaica Stock Exchange, Jamaican stocks, Palace Amusement, The Way of Water, Wankanda Forever, Woman King

Record profit for Palace Amusement

August 15, 2018 by IC Insider.com

Carib Cinema, the flagship for Palace Amusement.

Black Panther delivered record profit for Palace Amusement Company, the full year’s results show. Palace reported profit after tax of $152 million up from just $33 million for the full year in 2017 and earnings per share of $96.58.
For the final quarter the company posted profit of $102 million compared to just $28 million in 2017 but a $61 million gain on sale of the Harbour View property added $61 million to the company’s bottom-line. Revenues climbed nicely by 17 percent to $1.67 billion that flowed from a 25 percent rise in patronage income at Carib in Kingston 27 percent increase at Cineplex located in Kingston and just 11.5 percent at Montego Bay Multiplex.
The major contributor to the rise, was the blockbuster film Black Panther that ran from February to May this year. In the June quarter revenues rose 10 percent to $330 million and would have been generated form increase patrons coming to the movies. Cost rose with direct expenses climbing 13 percent for the year and 7 percent in the quarter while administrative cost was up 19 percent for the quarter and 10 percent for the year.
Palace ended the year with cash and bank balances of $284 million up from $141 million in 2017. The stock last traded on the main market of the Jamaica Stock Exchange at $1,500 at a PE of almost 15.

Filed Under: At the Movies, Company News, Company Results Tagged With: Black Panther, Jamaica Stock Exchange, Jamaican Stock, Palace Amusement Company

Investors shun Junior stocks for the oldsters

August 4, 2018 by IC Insider.com

Black Panther mash up Palace bottom-line with a huge increase in profit that pushed to stock to no 1 for 2018 in the main market.

Investors shunned Junior Market stocks in 2018 for the older more established Main market stocks. At least that is what the data from the exchange is showing.
According to the Jamaica Stock Exchange report of trading to the end of July, volume and value on the main market is up while that on the junior market is well down on 2017 figures, even as the gains in the overall market shows juniors up 14 percent for the year to the end of July and 9 percent for the main market.
Junior Market volume is down year to July by a stunning 69 percent to 571 million units while the value fell 64 percent to $2.69 billion, less than half of the $6.6 billion traded for all of 2017. In contrast main market stocks traded 1.57 billion units, up 28.5 percent over 2017, for a total value of $32 billion, a strong 79.4 percent increase over 2017 and just shy of the $35.7 million traded for all of 2017.
The big winners for the year to July are, Palace with an increase of 154 percent, that was helped by the huge success of the Black Panther film that ran for several months, Pulse Investments up 67 percent, Kingston Wharves 60 percent, Jamaica Broilers 45 percent and Salada Foods 41 percent, as investors responded to improved profit. In the Junior Market, C2W Music and Derrimon Trading beat all others by huge margins, rising 233 percent after it announced a 10 to 1 stock split and 197 percent respectively. Express Catering climbed 86 percent, Stationery and Office Supplies up 65 percent and CAC 2000 up 51 percent.
The big losers in the main market are, Ciboney, having sold off the property it owned and paid out most of the proceeds as a dividend is down 68 percent, 138 Student Living fell 35 percent, Kingston Properties 31 percent, Wisynco Group 24 percent, Portland JSX 20 percent and in the Junior Market, GWEST Corporation down 36 percent, AMG Packaging 33 percent, tTech 23 percent, Knutsford Express 23 percent and Eppley 17 percent.

Filed Under: Feature Stories, JSE Combined, Stock Market Tagged With: 138 Student Living, AMG Packaging, Black Panther, C2W Music, CAC 2000, Ciboney, Derrimon Trading, Emerging markets, Express Catering, Gwest Corporation, Jamaica Broilers, Jamaica Stock Exchange, Jamaican Stock, junior market, Kingston Properties, Kingston Wharves, Knutsford Express, Portland JSX, Pulse Investments, Salada Foods, Stationery and Office Supplies, Wisynco Group

Palace Q3 profit jumps 244%

May 14, 2018 by IC Insider.com

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Black Panther mash up Palace bottom-line with a huge increase in profit

Profit at Palace Amusement jumped 244 percent in the March quarter, to a record $45 million from just $13 million in 2017. For the nine months to December, profit surged 746 percent to $49 million from $6 million in 2017.
Thanks to the high level of success of the Black Panther movie sale revenues rose a strong 39 percent for the quarter, to $343 million from $247 million and by 21 percent for the year to date, to $836 million from $692 million in 2017.
Gross profit rose 73 percent to $90 million and profit margin increased to 26 percent in the quarter from the 2017 out turn of 21 percent. For the nine months period to March gross profit rose a respectable 45 percent to $189 million and profit margin moved 23 percent from 19 percent in the 2017.
Administrative expenses rose 10 percent to $45 million in the quarter and by 7 percent in the nine months to $139 million.
Earnings per share came out at $31.53 for the quarter and $34.38 for the nine months and should end the fiscal year ending around $150 level, with the continued success of Black Panther and now The Avengers.

Carib Cinema, the flagship for Palace Amusement, the company’s stock climbed $200 on Monday.

Gross cash flow brought in $79 million but there was the payment of loans and dividends amounting to $9 million. At the end of March, shareholders’ equity stood at $406 million with borrowings at just $24 million. Net current assets ended the period at $180 million inclusive of trade and other receivables of $62 million, cash and equivalent of $203 million and current liabilities stood at 139 million.
The stock traded at a record $1,500 on the main market of the Jamaica Stock Exchange with a PE ratio of 10 times, estimated 2018 earnings.

Filed Under: Company News, Company Results Tagged With: Black Panther, Palace Amusement, The Avengers.

Sagicor Group & Wisynco back in TOP 10

May 13, 2018 by IC Insider.com

Salada Foods reported earnings of 78 cents for the half year and is now no 2 on the TOP 10.

Sagicor Group fell out of TOP 10 of main market stocks in the previous week, is back, with the price falling from $42 to $38 and Salada Foods surges to the number 2 spot with half year results.
Wisynco joins the TOP 10 after a very long absence as the price dipped to $10 on Friday. The two new listings replaced Grace Kennedy and PanJam Investment, with the latter jumping to a new 52 weeks’ high of $46.01. In the Junior Market there was only one change with Stationery and Office Supplies (SOS) climbing to a new record high of $7.50 after positing good first quarter results with earnings per share up 70 percent to 17 cents. Lasco Financial moved back into the TOP 10, replacing SOS that still have much more room to grow this year as profits should hit close to $1 per share for the year and investors could well see a stock split as a result of the rising profit and stock price.
Other changes of note, were the fall in price of Berger Paints to $20 from $22 at the end of the previous week, Caribbean Cement moved to $40.05 from $38.60 and Barita Investments rose to $11.50 from $10.49 as selling by investors dried up. Second quarter results may not be good enough to push the stock much higher but when the growth in other comprehensive income is factored in, the stocks is still extremely cheap.
On Thursday, a number of company results were released with some having the potential to help prices to move forward. On Friday, more results were released with Salada Foods and tTech posting good gains in profit. Salada earnings suggest full year results of $1.80 per share and pushed the stock to the number 2 choice in the TOP 10. Others will come on Monday and Tuesday, investors should be alert to news that they may provide that could impact prices in the short term.
The main market pulled back from record highs reached at the close of the previous week but is now sitting just below that level on Friday, as that market continues to grind its way slowly upwards ahead of the big breakout that is coming.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.2 compared to an average PE for the overall main market of 10 based on 2018 estimated earnings. The main market PE is 7.2 for the top stocks, compared to a market average of 13.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 38 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 44 percent to the market.
Stocks to Watch this week include, Stationery and Office Supplies that should go higher based on the first quarter results that were released on Thursday. It should be interesting to see how investors treat with the lack of supply of Barita and Berger shares while Palace that jumped $300 on Friday could be pushed when the company’s third quarter results are released this coming week that should see very positive impact of the Black Panther movies now still being shown, although less frequently than previously, with Avengers seems to have taken over from it. NCB Financial pulled back to $95 during the past week and should be another interesting stock to watch as it is undervalued. Grace Kennedy posted decent first quarter results that should encourage more buying of the stock and PanJam Investment is very scarce. Increasing interest in Radio Jamaica pushed the price to $1.20 and is another that could move higher during the week.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: Barita Investments, Berger Paints, Black Panther, Daily Trading, Emerging markets, Grace Kennedy, Jamaican Stock Exchange, Jamaican stocks, junior market, Palace Amusement, Radio Jamaica, Sagicor Group, Salada Foods, Stationery and Office, Stocks to Watch, TOP 10 stocks, Trading Activity, tTech, Wisynco Group

Fake Avenger promto

May 4, 2018 by IC Insider.com

The popularity of the Palace Amusement’s the Avengers Infinity War, now showing on the company’s cinema circuit has elicited some fictitious email now in circulation offering members of the public the chance to win free tickets to the blockbuster, Avengers showing.
Palace Amusement has advised via a press release that they are conducting no such promotion and urges members of the public to be smart and aware when using the internet for their own safety and security, accordingly patrons should be an the alert to emails inviting persons to answer questions in order to participate.
The Avenger is another big movie for Palace who continues to show Black Panther now in its third month of showing.

Filed Under: At the Movies Tagged With: Black Panther, Palace Amusement, The Avenger

Good news push TOP 10 stocks

April 22, 2018 by IC Insider.com

There were no new entrants this past week, to the TOP 10 list of stocks on the Jamaican Stock Exchange, but there was some good news with the acquisition by Stationery and Office Supplies of a book making business.
The acquisition is set to add to profit in year one, and investors responded by driving the stock to a new high. The stock that was facing some challenge to get bids around the $5.50 level, the stock traded at in the past few weeks, jumped to $6 on the same day the announcement was made. With annual sales estimated around $130 million that could rise with greater focus on the operations and more capital available to support it, IC Insder.com has up graded the earnings to 90 cents for this year. The company is one of a number of Junior Market listings expected to post positive gains in the 2018 first quart over that of 2017.
The other good news for the market was a further fall in Treasury bill rates and another month of slightly negative inflation for March with the first quarter inflation also being negative. While the main market hit two new record highs during the week. While the JSE main market is caught up in a wedge formation and waiting for a big break out which could happen any time, the Junior Market that was in a downward drift from late 2017 now seems to have support from the 200 day and 120 day moving averages with the short term moving average now above both longer term ones. The market is being steered by two support lines with one going back to 2010 and another going back to early 2014.
Investors pressured recently listed Elite Diagnostic during the week as they reacted negatively to the December quarter results with lower profit that the previous year’s results. Investors seemed to have responded the Berger Paints bullish reading in the annual report as they bought the stock in increasing volumes during the week, leaving the price at $19. The Managing Director had reported that “the outlook for 2018 and beyond is extremely positive. The Berger brand remains strong and continues to dominate the local market with strong brand equity and a reputation for quality. With GDP projected to grow by at least 1.5% in 2018, construction activity and the demand for coatings is expected to remain relatively strong for the next two to three years. Plans are already being implemented to expand the company’s local distribution and product range as well as to improve our level of customer service and responsiveness. In 2018, there will also be greater emphasis on building out exports by targeting new markets in Central America and the Greater CARICOM region.”
Palace Amusement continues to enjoy expanded interest from investors with the continued success of the movie Black Panther. After more than two months of showing it still has two showings per day in all three cinemas, but the attraction for the stock is much more than this movie.
Strong buying came in for Barita Investments at $9.50 during the week. JMMB Group gained more ground, as the block out period for insiders to trade in the stock closes and the stock moved up to $28.32, resistance is just over $31 an area investors should be on the lookout for in the short run.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6 compared to an average PE for the overall main market of 10 based on 2018 estimated earnings. The main market PE remains at 7 for the top stocks, compared to a market average of 12.7.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 40 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 42 percent to the market.

Filed Under: Buy Rated Tagged With: Berger Paints, Black Panther, Daily Trading, Elite Diagnostic, Emerging markets, Jamaican Stock Exchange Trading Activity, Jamaican stocks, JMMB Group, junior market, Key Insurance, Palace Amusement, TOP 10 stocks, treasury bill

Standoff for TOP 10 stocks

April 16, 2018 by IC Insider.com

Berger Paints annual report had some good news for investors to digest.

The up and down nature of the markets this past week left most stocks fairly stable resulting in no new entrant to the TOP 10 list of stocks on the Jamaican Stock Exchange.
The past week got greeted by a series of company results that were not inspiring with most reporting lower profits for the first quarter this year. On a positive note, most of the results were affected by increased cost resulting from expansion ahead of full flow of new income from the expanded facilities.
Companies affected include recently listed Elite Diagnostic, Paramount Trading and Knutsford Express. Berger Paints released their annual report that was filled with some good talk of going after market share, new product lines to be added and upgrading of equipment to increase efficiency.
“The outlook for 2018 and beyond is extremely positive. The Berger brand remains strong and continues to dominate the local market with strong brand equity and a reputation for quality. With GDP projected to grow by at least 1.5% in 2018, construction activity and the demand for coatings is expected to remain relatively strong for the next two to three years. Plans are already being implemented to expand the company’s local distribution and product range as well as to improve our level of customer service and responsiveness. In 2018, there will also be greater emphasis on building out exports by targeting new markets in Central America and the Greater CARICOM region,” the Managing Director reported.
For Palace Amusement with the bid at $781 at the close of the week down to $750 the movie Black Panther continues to pull in the crowd after two months of showing and still has two showings per day in all three cinemas, the same as shows that opened during the past week.
Barita Investments rose to close the week at $9.50 as investors sucked out most of the supply under $10. Key Insurance fell to $3 as the company reported that two directors sold shares during the week, while JMMB Group gained more ground, as the block out period for insiders to trade in the stock, comes to a close, until after mid May.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.2 compared to an average PE for the overall main market is 10 based on 2018 estimated earnings. The main market PE remains at 6.5 for the top stocks, compared to a market average of 12.3.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 39 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 47 percent to the market.

Filed Under: Buy Rated Tagged With: Barita Investments, Berger Paints, Black Panther, Daily Trading, Emerging markets, Jamaican Stock Exchange Trading Activity, Jamaican stocks, JMMB Group, junior market, Key Insurance, Palace Amusement, PE ratio, TOP 10 stocks

Palace is much more than Black Panther

March 28, 2018 by IC Insider.com

Carib Cinema, the flagship for Palace Amusement.

Revenues and profit are getting a big lift from the strong showing of the Black Panther movie currently playing at the Palace Amusement cinemas in Jamaica.
The stock jumped sharply in March, more than doubling the previous price of $560. Some investors are of the view that interest in the stock is purely as a result of the movie. While it may be a factor, Palace’s story goes well beyond that.
Although in the public eyes daily, the shares of Palace are not the focus of attention for many . One main reason is the 1,437,000 shares issued by the company, resulting in limited liquidity in the stock. The other is that historically profit can be a bit erratic. Management’s failure to split the stock for greater liquidity only adds to investors’ concerns.
Palace is reminiscent of Lascelles deMercado back in 1983 when the stock hardly traded due to liquidity issues and a lousy dividend policy. Asked then why the stock was so cheap, around $6, a broker responded —no one buys

A seen from Black Panther

Lascelles’ shares. That of course was a terrible error by investors as the stock went on to deliver one of the best returns on the local market with Campari ultimately buying out the company.
Stocks that are not sexy don’t get much attention from investors, but in many cases, these are the ones to record massive gains when the story is fully told. A reader of IC Insider.com indicated that a look at the last two years’ results revealed flat revenues. That prompted a review of the numbers. The history may not be spectacular but closer examination shows a high degree of attractiveness that is not based solely on the pile of added income Black Panther will rake in.
Revenues have been climbing since 2014 when it reached $833 million, rising to $916 million in 2015, with a slight dip in 2016 to $909 million. Revenues rose 9 percent in 2017 to $990 million and for the half year to December 2017, growth was 11 percent to $493 million with profit rising 138 percent.
Revenues will hit the billion mark for the first time in the company’s history, for the current fiscal year and remain over that level going forward. The performance of the economy is critical to the future fortunes and to a lesser degree, the quality of films. Data indicates that with a tight economy, patronage in Kingston suffered badly with the downturn in the economy from 2008 onwards. At the same time, strong growth, said to be around 7 percent per annum in the Montego Bay economy, showed up in strong revenue gains there compared to Kingston for a number of years. With the overall economy recovering and employment growing, Palace is benefitting and it’s reflected in the numbers to December 2017.

Palace Multiplex in Montego Bay.

Segment results tell the story of the strong impact of the economy on operations. For the six months to December, Box office patronage at Carib Cinema in Cross Roads rose 14 percent to $147 million, while at Palace Cineplex, the gains were 10 percent to $55 million and 8 percent at Palace Multiplex in Montego Bay to $77 million. Sales from the concessionaires surged 29 percent to $80 million at Carib, 22 percent at Cineplex to $27 million and 21 percent to $34 million at Multiplex. The fact that Carib has outgrown the other two cinemas is not an accident but is reflective of the recovery in disposable income of a large number of Jamaicans.
While revenues are on the rise, cost has been kept under control. Direct operating cost increased by 6 percent to $190 million for the quarter and 8 percent for the half year.

Another Palace movie – Bruce Willis and Cole Hauser star in Acts of Violence.

Administrative Expenses rose just 4 percent to $37 million in the December quarter and 7 percent for the six months to $76 million. Depreciation for the six months period rose just 5 percent to $17 million. If the trend continues into 2019 fiscal year earnings should be close to $100 per share range. Prior to Black Panther, earnings were set to reach around $45 per share but the phenomenal success of Black Panther is Projected by IC Insider.com to push 2018 earnings to be well over $100 per share when the fiscal year closes in June.
The company concluded the year with equity capital of $343 million, borrowings at just $25 million with cash funds of $130 million helping to push Current assets to $242 million as Current liabilities stand at $110 million.
The stock traded at $1,300 earlier in the month is poised to fall back with the lowest offer being $1,000. Palace trades on the main market of the Jamaica Stock Exchange at a PE around 10 times projected 2019 earnings and much lower based on the 2018 earnings.

Filed Under: Company News, Company Results Tagged With: Black Panther, Emerging markets, Jamaica Stock Exchange, Lascelles deMercado, Palace Amusement Company

Black Panther applauded by patrons & Palace

March 6, 2018 by IC Insider.com

One of the many gripping scenes from Marvel Studios’ Black Panther.

Palace Amusement Company continues to reap sweet rewards from the phenomenally popular movie, Black Panther that Jamaicans are queuing in droves to see.
Now in its third big week, this Marvel Studios’ phenomenon, in keeping with growing demand island wide has resulted in Palace Amusement adding extra shows at all its cinemas, to satisfy it patrons who are eager to be a part of the film’s astounding appeal and drawing power.
According to a release from Palace its flagship Carib in Cross Roads, have moved to 6 shows daily up from 4, Palace Cineplex, Liguanea, has added daytime matinees on the weekend, in addition to 2 shows daily and in Montego Bay, Palace Cineplex will now have 4 shows daily up from 3. For show times check www.palaceamusement.com or see the press.
Palace reported a loss of $5.3 million in the December quarter from revenues of $233 million and a profit of $4 million for the six months period, from revenues of $493 million. By IC Insider.com computation the success of Black Panther should blast the December quarter’s numbers way out of the waters and well into the black and is likely to make 2018 the most successful year in the movie house’s history.
Palace Amusement Company is listed on the Jamaica Stock Exchange and last traded at $560.