Cargo Handlers made profit of $31.6 million for the third quarter, ending June and $83 million for the nine months. The 2014 results are up 40 percent from $22.6 million and 31 percent over the $63.6 million earned last year, respectively.
Revenues excluding interest income, grew 32 percent for the Montego Bay based and junior listed company, over the June 2013 quarter, to hit $56 million, and reached $155 million for the nine months to June, an increase of 23.5 percent over the $126 million in the prior year. Some of the growth is driven by $3 million in management fees relating to management of the petroleum transport business, pending finalization of acquisition of the transport company. Movement in the value for the local dollar also played a role in the revenue growth, management confirmed with IC Insider.
Other operating expenses grew from $17.7 million to $22.6 million, an increase of 12.7 percent for the June quarter, and reached $65 million in the nine months, up by 17 percent. Administrative cost were flat for the quarter at $2 million and up from $6.4 million to $7.8 million for the year to date.
Earnings per share rose from 60 cents to 84 cents in the quarter and $2.22 for the nine months. Earnings for 2014 which ends in September, should be $3 per share. For the year to September 2013, the company earned $2.27 per share.
The company had earlier indicated that the acquisition of the transportation business should be concluded during February. At the time of reporting, this has not yet been concluded. From all indications, concerns regarding the transport company’s audited financial reports seem to be at the heart of the delay. Cargo Handlers had deposited $69 million against the purchase. Most of these funds seem have been used to acquire fixed assets which jumped by $48 million in June this year. Cash is down to $77 million and investments at $16 million at the end of June. The company remains debt free.
A dividend of 50 cents per share was just declared by the company and is payable in March 6 and another of $1.30 per stock unit will be paid on September 16. The dividend yield at the current stock price of $14.10 is 12.76 percent. The stocks is priced at a PE of just under 5 times 2014 earnings, but supply and liquidity are very low.