Starbucks Coffee

Express Catering Q3 profit jumps 105%

March 25, 2018 by IC Insider.com

Ian Dear, Managing Director of Express Catering

Profit for Express Catering jumped 105 percent in the February quarter, to US$1.14 million from US$558,267 in 2017. For the nine months to February, profit surged 166 percent to US$2.52 million from US$947,989 in 2017.
Sale revenues rose 9.7 percent for the quarter, to US$4.39 million from US$4 million and rose 12.44 percent for the year to date, to US$11.27 million from US$10 million in 2017. Revenues benefited from strong increase in visitor arrivals during the period around 10 percent.
Gross profit margin remained stable at 74 percent in the quarter and 73 percent for the nine months with gross profit of $3.25 million for the quarter up 10 percent from $2.96 million in 2017 and $8.28 million for the year to date 11 percent more than $7.46 million in 2017.
Depreciation fell 8 percent in the quarter to US$128,754 million and was 4 percent lower for the year to date, to US$400,475.

Starbucks one of the brands Express Catering will sell at the Montego Bay Airport.

Administrative expenses fell 14 percent to US$1.87 million in the quarter and fell 13 percent in the nine months period to US$5.05 million. Finance cost rose 18 percent in the quarter, to US$112,418 and moved just 1 percent for the nine months period to US$287,176 from US$283,625.
Earnings per share came out at 0.07 US cents for the quarter and 0.154 US cents for the nine months and should end the fiscal year ending to May around 0.24 cents or 30 cents Jamaican.
Gross cash flow brought in US$3 million but growth of $1.49 million in amounts owing by related companies, additions to fixed assets of US$303,103 and paying US$1.5 million in dividends, reduced cash to just US$34,145 at the end of the period.
At the end of February, shareholders’ equity stands at US$5.56 million with preference shares of US$3.5 million. Current assets ended the period US$5.68 million of which amounts due from related parties amounts to $5.3 million and I up from US$3.6 million in the prior year. Current liabilities amounted to US$1.5 million.
The company will be rolling out the Starbucks Coffee stores in the final quarter and that should boost revenues and profit in the new fiscal year.
The stock traded at J$4.50 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 15 times 2018 earnings. The company will go into a new year, come June, that should result in a lowering of the PE with IC Insider.com forecasting 48 cents per share for PE of 9 times earnings.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Express Catering, Starbucks Coffee

Profit surges 137% at Express Catering

October 27, 2017 by IC Insider.com

Starbucks one of the brands Express Catering will sell at the Montego Bay Airport.

Recent Junior Market listed Express Catering, enjoyed a big surge in profit of 137 percent to US$834,447 for the quarter to August, this year.
With management fees removed and revenues jumping 9.7 percent, in line with increased visitor arrivals to Jamaica, Express Catering, operators of a series of restaurants within the Montego Bay’s Sangster International Airport good performance, came from revenues of US$3.8 million for the quarter.
The removal of management fees saw administrative and other expenses falling from US$2 million to US$1.7 million, but gross profit rose by US$157,000 as cost of sales grew faster than the top line, at 21 percent thus reducing profit margin. Management in their commentary on the results states that “they have since raised prices to compensate for increased input cost.” Express reported earnings per share of 0.051 US cents. IC Insider.com places full year’s earnings at 26 Jamaican cents and that for 2019 at 40 Jamaican cents.
“The addition of the Starbucks Coffee to the offerings in the airport is expected to be completed during the third quarter. Work as already commenced on this initiative and will see 3 locations within the Airport,” the directors’ report stated.
The balance sheet shows US$4.56 million due from related party an increase from $3.64 million at the end of May and cash funds at $497,000.
The stock currently trades at a PE ratio of 19 with the price at $4.95 against the market average of 13.6.

Filed Under: Company News, Company Results Tagged With: Daily Trading, Emerging market stock, Express Catering, Jamaica Stock Exchange, Jamaican Stock, junior market, Sangster International Airport, Starbucks Coffee

Express Catering stock a fair buy

July 6, 2017 by IC Insider.com

Ian Dear, Chief Executive Officer of Express Catering

The 100 percent shareholder of Express Catering, Margaritaville St Lucia, are offering up to 327,500,000 of existing shares for sale at $1.50 each, to raise approximately J$490 million from the public. Most of the shares are reserved for special interest groups.
The issue opens at 9 am on Wednesday 12 July and is scheduled to close at 4 pm, Wednesday 19 July 2017.
Up to 16,500,000 shares are Company Reserved Shares, 32,750,000 are Mayberry Reserved Shares, 245,625,000 shares are Key Partner Reserved Shares with 32,625,000 slated for the General Public Shares. The company has 1,637,500,000 issued and this will not change with the issue. The stock will be listed on the Junior Market of the Jamaica Stock Exchange. Mayberry Investments are the broker to the offer.
The stock appears to be a fair buy with growth to come from expansion into the Starbucks franchise to be located at the Sangster Airport and continued growth in visitor arrivals through that airport going forward as the sector expands.
The selling shareholder will use the funds raised in the Invitation for the purposes of the Group’s liquidity inclusive of the continued improvement and expansion of the Company’s operations, working capital and general corporate purposes. The proceeds of sale will also be used to pay the expenses of the Invitation out of the fundraising, which the Directors expect will not exceed J$27.5 million.
Franchises operated include; Quiznos Subs and Salads, Dairy Queen, Nathans Famous Hot Dogs, Domino’s Pizza, Auntie Anne’s Pretzels, Wendy’s, Cinnabon, Moe’s South Western Grill, Island Deli, Viva Fresh Market Grab & Go, Cricket Sports Bar, Connections Bar, Air Margaritaville Arrivals Bar, Jamaican Bobsled Cafe and The Groovy Grouper The Bar.
The Company achieved revenue of US$14.1 million in the financial year ended May 2016, an increase of US$460,000 or 3.4 percent over the previous financial year’s Revenue of US$13.6 million. Revenue for financial years 2013 and 2014 was US$10 million and US$12.2 million respectively. While the financial show gross margins stable around 73 percent of revenue, while administrative and other costs as reported accounts for 58 percent of revenue for 2016 and slightly more for the comparative period in 201. Administrative costs include some items that should be included in cost of sales as they are not administrative expenses. Included here for the 2017 figures in US dollars are; Franchise fee $1,264,282 fuel $39,098, bar and restaurant supplies $373,127, staff cost of $1.39 million and rent of $2.8 million as well as electricity.
Net Profit of US$1.1 million was realized in 2016 up from US$590,000 in 2015. For 10 months of financial year to March 2017 revenue grew to US$11.54 million with net profit before tax of US$1.15 million from revenues of US$11.52 million in the 10 months of the prior year and profit of US$904,144 in the same period the prior year. Profit before tax should end the 2017 fiscal year around $1.25 million for earnings per share of .076 US cents or 9.7 cents Jamaican.
In the period to March 2017 launched a 7 year preference share to raise US$3.5 million. Proceeds from this issue was earmarked for the construction of the Starbucks Coffee outlets at Sangster International Airport, and to settle certain Group obligations.
The board of directors comprises, Winston Dear, Ian Dear, Roland Clarke, John Byles, Tania Waldron-Gooden.
The stock is being sold at a big premium to net asset value of $0.36 with equity valued at US$4.6 million, but at a PE of 15 based on 2017 earnings. Earnings for the May 2018 period could rise to $1.65 million or earnings per share of US 1 cents per share or J$0.13, excluding the new franchise operation. The average of the Junior Market of approximately 12.5.