Margaritaville posted flat profit for the first quarter of the May 2019 fiscal year, with net earnings of US$290,815, down slightly from US$296,412 in 2017.
Revenue was also down moderately to $1.8 million, from $1.86 million in the 2017 period, but growth should be coming when Carnival Lines expands the port facilities in Turks and Caicos in 2019.
Cost declined modestly, with direct expenses falling to $471,386 from $483,803 in 2017, resulting in a gross profit margin of 74 percent, while administrative and other cost declined to $1.057 million, modestly down from $1.082 million in the prior period in 2017.
Earnings per share came in at 0.43 cents. For the full year to May 2018, earnings per share was 1.58 cents resulting from net profit of $1.067 million. The stock trades on the Jamaica Stock Exchange US market at 25 US cents at a PE of 16.
Equity capital stood at $5 million while current assets amounted to $2.7 million with current liabilities of $1.1 million.
Going forward Chairman Ian Dear, told IC Insider.com that Carnival Line is expanding the docking facility in Turks and Caicos Islands that will allow much larger ships to dock and will result in increase in the number of passengers landing and will bring more business for the company. According to Dear, the ships currently in use can accommodate up 3,000 passengers plus crew but the newer ships will carry 8,000 passengers and they could have two of these ships on a typical day. The expectation that the first ship should dock in Turks next year. The coming on stream of the increased business will see Margaritaville adding another restaurant, with construction to commence shortly after carnival advises them of date the news ships will commence operations.