The global cinema exhibition sector and CinemaONE delivered a significant rebound in Financial Year (FY) 2022 as Covid-19 (C19) restrictions waned and moviegoers demonstrated a willingness to return to the Big Screen.

Sony’s Spiderman No Way Home elevated to the highest grossing Spiderman film ever and the 6th highest grossing film of all time with US $1.9B at the global box office. Paramount’s Top Gun: Maverick was another ostensible performer and has become the 11th highest grossing film of all time and the highest earning Tom Cruise movie ever with US $1.5B from the Global Box Office.

CinemaONE similarly enjoyed a resurgence in moviegoing, particularly following the full relaxation of all government imposed C19 Safe Zone operating restrictions on April 4, 2022.

Buttressed by the June releases of major blockbuster titles from multiple studios highlighted by Paramount’s Top Gun: Maverick, Universal’s Jurassic World Dominion and Disney’s Thor – Love and Thunder, CinemaONE continued the positive trajectory highlighted by the Company’s June achievement of its highest single month attendance in the pandemic era which even surpassed its pre-C19 historical 3-year average by a marginal 2% coupled with encouraging per patron metrics.

Financial Performance
I am happy to summarize the following improved financial performance for FY 2022. Gross Revenue increased by 388% to TT $10.1M (FY 2021: TT$2.1M). Gross Profit increased by 486% to TT $5.6M (FY 2021: TT $1.0M) and the Company significantly narrowed the Operating Loss to TT -$.02M, a near breakeven benchmark, versus the previous year’s Operating Loss (FY 2021:TT -$6.5M). Net Loss was similarly constrained to TT -$1.4M (FY 2021: TT -$7.0M).

EBITDA positively rebounded by 315% to TT $3.1M versus the previous year’s negative result (FY 2021: TT $-2.2M). The above results were achieved amidst C19 constraints for the entire first half of FY 2022. Overall, the Company’s box office performance was -38% below the pre C19 historical 3-year average, which aligns with the cinema industry -34% box office deficit to the same pre C19 average as of September 2022.

Future Outlook
The cinema exhibition industry’s recovery from the global C19 pandemic is still underway and is contingent upon the volume and appeal of new film content available, consumer sentiment around movie-going and the continued cessation of government restrictions. The cinema industry is also adjusting to competition from streaming platforms, supply chain constraints, inflationary impacts and other macroeconomic factors.
However, in FY 2022, consumers reinforced their desire to see the newest movie releases in a larger-than-life cinematic environment which continues to propel CinemaONE towards an accelerated recovery.

CinemaONE’ s December 2022 opening of its second cinema site in Gulf City Mall, San Fernando, and its imminent capital markets activity which will infuse additional equity capital into the Company via a Rights Issue will position CinemaONE for newfound growth as it pragmatically pursues strategic opportunities.

Brian Jahra Chairman
December 25, 2022

For more information CLICK HERE

Results of Operations

The Group continued to unlock value from its major real estate investment assets by achieving another set of key milestones, namely:
• advancing the J$3.70 billion Belmont Road 9-storey commercial tower to 74.0% completion and remaining on track for completion in mid-2023, with four of the five floors effectively leased with 10-year renewable agreements;
• advanced the construction of the built-to-suit industrial warehouse facility on Spanish Town Road to 87.0% completion;
• made submissions to various agencies to secure approvals for the beachfront hospitality investment property in Mammee Bay, St. Ann;
• continued to engage in partnership discussions and financing options with international investors and financiers with regards to Sepheus Holdings Limited, the SRF subsidiary which holds the Mammee Bay asset.

Subsequent to the end of the quarter, Sygnus Real Estate Finance Limited (SRF) began exiting its J$1.00 billion investment in a REIN as the third-party project achieved practical completion in October 2022, thus leading to the start of inflows from the sale of units.

SRF completed the purchase of 58 Lady Musgrave Road, Kingston 10, post Q1 Nov 2022, and thus now owns both 56 Lady Musgrave Road and 58 Lady Musgrave Road, which are adjacent to each other.

The Group may be able to consider its first dividend payment during the 2023 calendar year, subsequent to completing its first investment life cycle, after exiting and or completing a number of investments and developments during the course of the year.

The Group remains fully focused on executing its strategy of unlocking value in real estate assets, as it seeks to continue increasing shareholder value.
Total investment income or core revenues was J$21.3 million for 3 Month 2022, compared with a loss of J$4.4 million for the three months ended November 2021 (“3 Month 2021”). This result was primarily driven by higher net interest income from a larger portfolio of REINs, which offset larger interest expense driven by an increase in loans and borrowings and notes payable.

The weighted average fair value yield on REINs was 11.2% compared with 10.l% last year, while the weighted average cost of debt was 5.1% compared with 5.0% last year. Subsequent to the end of the quarter, SRF began exiting its J$1.0 billion investment in a REIN which achieved practical completion in October 2022, as the Group began to receive the sale proceeds for purchased units as buyers completed the financing for their purchases.

In addition to the interest charged by the REIN, SRF also receives a profit-sharing component.

There was no gain on investment property during the quarter as these assets are only valued once at the end of each financial year, with the last valuations occurring in August 2022.

Share of gain on joint ventures, which also captures SRF’s 70% ownership of the One Belmont development was immaterial during the quarter, as this development is only valued at the end of each financial year, with the last valuation occurring in August 2022.

Note, however, that One Belmont is scheduled to reach practical completion prior to the end of the current financial year, and as such, the revaluation of share of profit is likely to occur prior to the August 2023 year-end financial results. This revaluation may materially impact total investment income during the quarter in which it occurs. Note also, given One Belmont has already negotiated long term leases with tenants, to the extent where lease payments begin while SRF still maintains its share of the joint venture or a portion thereof, these lease flows may affect total investment income starting in the quarter during which this occurs.

SRF’s total investment income is typically comprised of all the activities that were involved in the unlocking of value from its portfolio of real estate investment assets, namely: interest income on its REINs and the commitment fees related to this activity; gain or loss on its property investments, namely, on its investment properties, or on any real estate assets that were exited; and share of gain or loss on its joint venture investments.

Based on the nature of its business model, SRF’s earnings during interim reporting quarters may experience “lumpiness” in total investment income and net profits, which is typically “smoothed out” at the end of each financial year, similar to what occurred in FYE Aug 2022 relative to the interim quarterly results.

The Group uses independent appraisers to value its investment assets annually. All investment properties are USD investment assets which are converted to JMD for financial reporting purposes. SRF’s key strategic assets are held via wholly owned subsidiaries or joint ventures.

Net investment income or core earnings was a loss of J$82.4 million vs a loss of J$87.4 million for 3 Month 2021, driven by the J$21.3 million outturn for total investment income which was offset by higher operating expenses of J$103.7 million versus J$83.0 million last year. For FYE August 2022 SRF generated J$983.6 million in net investment income.

Net loss attributable to shareholders was J$172.5 million compared with a net loss of J$99.9 million last year, driven by the negative net investment income of J$82.4 million, a fair value loss on financial instruments of J$23.4 million (3 Month 2021: gain of J$10.9 million) and a net foreign exchange loss of J$66.7 million (3 Month 2021: loss of J$23.5 million). Note that SRF’s net profit may be materially impacted by the completion of the One Belmont development and by the final net proceeds from exiting investments in REINs, which are scheduled to occur prior to the end of the current financial year.

At the end of the current financial year, SRF’s net profit may also be materially impacted by changes in the valuation of its underlying real estate investment assets, as valuation for existing assets only occur once at the end of each financial year. Book value per share for Q1 Nov 2022 increased to J$22.71 compared with J$20.81 last year.

Note: the Group’s return on average equity (ROE) was 11.3% at FYE Aug 2022 with an average ROE of 30.6% over the past three audited financial years. For FYE August 2022, SRF generated J$693.0 million in net profit.

Basic earnings per share (EPS) was negative J$0.53 compared with negative J$0.36 last year, while diluted EPS was negative J$0.49 compared with negative J$0.30 last year. Similarly, basic core earnings or net investment income per share (NIIPS) negative J$0.25 compared with negative J$0.31 last year, while diluted NIIPS was negative J$0.24 compared with negative J$0.27 last year. For FYE August 2022, SRF generated basic and diluted earnings per share of J$2.20 and J$2.06 respectively.

One Belmont | Commercial Tower: The J$3.70 billion 9-storey corporate office development is currently 74% completed, with construction remaining on track for the target April/May 2023 completion date. The substructure is 100% completed with pouring of concrete for all floors completed and the roof remaining to be poured. A fourth long-term agreement-to-lease which should have been executed in December 2022 was rescheduled for execution in January 2023. This means that four of the five floors are effectively leased once this fourth agreement is completed. The intended tenants have begun the process to select and execute their respective interior designs to meet their respective needs.

For more information on Sygnus Real Estate Finance Limited
Unaudited Results for the 3 Months Ended November 30, 2022 CLICK HERE

Business Objective
Mayberry Jamaican Equities Limited (MJE) is an investment Company whose objective is to achieve long term capital appreciation, while preserving capital, by investing in public equity securities in Jamaica (“Jamaican equities”). The Company employs a value – based approach to identifying and investing in high quality public businesses.

This approach is designed to compound book value per share over the long term. While the Company will seek attractive risk-adjusted returns, it will at all times seek downside protection and attempt to minimize loss of capital.

Performance Overview
The year was marked by high inflation, global conflicts and the tightening of monetary policies which resulted in increases in interest rates and a challenging financial landscape both locally and globally. Q4 2022 market conditions reflected continued moderate improvements and the local financial environment remained resilient compared to global counterparts.

For the year ended December 31, 2022, MJE reported profits of J$5.1 billion representing an increase of J$2.6 billion or 104% over the corresponding period in 2021. The pull back in the local equities market beginning in the third quarter of 2022 adversely impacted MJE’s half year results but several strategic stocks in the portfolio rebounded in the fourth quarter buttressing the full year’s solid performance with net unrealised gains on investments in associates increasing by J$2.7B or 105% to J$5.2 billion. This was complemented by dividend income increasing by 41% or J$160M to J$549
million. Full year earnings per share (EPS) was J$4.21 (2021: (EPS) J$2.06).

For the three months to December 31, 2022, the Company recorded a decline in net profits of J$921 million or 50% to J$911 million when compared to the J$1.8 billion earned in the similar quarter last year. This reduction is due primarily to the more significant uplift in the market and stock prices in 2021 arising from the recovery from the COVID-19 pandemic in 2020. Total operating expenses for the quarter ended December 31, 2022 increased by J$49 million to J$235 million when compared to the comparative period in the prior year. This resulted in earnings per share (EPS) of J$0.76 (2021: (EPS) J$1.52).

Total Comprehensive Income
MJE reported total comprehensive income of J$4.8 billion for the year ended December 31, 2022 representing an increase of 53% or J$1.7 billion due to solid overall performances on the managed Jamaican equities portfolio. The Company recorded total comprehensive income of J$891 million for the three-month period October to December 2022. This compares to a total comprehensive income of J$1.4 billion for the similar quarter in 2021.

The decrease noted was primarily attributable to unfavourable price movements on securities in the portfolio for the December 2022 quarter which can be attributable to increases in interest rates in the economy and a number of fixed income instruments coming to the market.

Total Revenues
Net revenues generated for the year ended December 31, 2022 increased by 99% or J$2.8 billion to J$5.5 billion attributed primarily to the significant appreciation in the market value of investments in associates.

For the quarter ended December 31, 2022, net revenues amounted to J$1.1 billion compared to net revenues of J$2 billion for the similar quarter in 2021.

This performance was primarily attributable to reduced unrealized gains on investments in associates of J$827 million. For the year ended December 31, 2022, dividend income grew by J$160M or 41% to J$549 million when compared to J$389 million for the 2021 comparative period. Dividend income of J$95.8 million was recorded in the quarter representing a marginal decline of 1.3% compared to J$97 million for the October to December 2021 quarter.

The largest contributors to the portfolio’s dividend revenues for the quarter were Supreme Ventures Limited, Jamaica Broilers Group Limited and General Accident Insurance Company Jamaica Limited with dividends of approximately J$83 million. For the year ended December 31, 2022, the major contributors to dividend revenues were Supreme Ventures Limited, GraceKennedy Limited, Jamaica Broilers Group Limited, Lasco Distributors Limited and Lumber Depot Limited.

Operating Expenses
Total operating expenses of J$492 million for the year ended December 31, 2022 increased by J$185 million or 61% over the corresponding 2021 period driven mainly by increased expenses incurred for management and incentive fees following the significant growth in the net asset value under management.

Total operating expenses for the Q4 2022 increased by J$49 million when compared to Q4 2021. This was mainly attributable to higher expenditure for broker fees, legal and professional fees and incentive fees. This was partially offset by reduced expenses for computer licensing fees and software impairment.

For more information click this link: Mayberry Jamaican Equities Limited (MJE) Unaudited Financial Results For The Twelve Months Ended December 31, 2022

Ian Dear Founder and Chief Executive Officer of Express Catering Limited has released the following Second Quarter 2023 Interim report to shareholders.

Passenger numbers for the Second Quarter continued the improving trend.

Total passenger count for the second Quarter increased by 49.17% to record 490,045, compared to 328,317 for the similar period in the prior year.

Revenue generated was US$4.20 million, at a spend-per-passenger rate of US$8.58. Revenue for the corresponding period in the prior year was US$2.49 million at a spend-per-passenger rate of US$7.58, resulting in a spend-rate increase of 13.75%.

Passenger numbers for the current Quarter surpassed totals for the same period in 2019 and pre-Covid-19. We are delighted that the spend-per-passenger rate continues to increase. This is a strong indicator that additional passengers are being converted into customers. The increase in passenger count for the six months was 42.37%. Total passenger count was 1.11 million compared to 781,504 for the same period in the prior year. This generated revenue of US$9.12 million for a spend-per-passenger rate of US$8.19. Revenue for the similar period in the prior year was US$6.13 million at a spend rate of US$7.84.

Net profit for the Quarter returned US$126,808 for an EPS of 0.008 US Cents per share. This is compared to a net loss of US$320,810 and Loss Per Share 0.02 US Cents per share in the similar period in the prior year.

Profit for the six months was US$779,649 for earnings per share (EPS) of 0.048 US Cents. This is compared to a profit of US$244,258 and EPS of 0.015 US Cents in the prior year. The company continues to be in recovery mode.

Revision of selling prices to counter the increase in raw materials costs continues to be monitored closely. We are, however, constrained as our table service options requires extended time to respond to price changes. Based on the outlook, inflationary pressures will continue to be a feature for a while more.

The company continues to manage expenses as efficiently as possible.

There was an official opening ceremony, organized by the operators of the airport, for the revamped and expanded post-security food and beverage lounge on December 15, 2022. Jamaica’s Minister of Transport & Mining, Hon. Audley Shaw, was on hand to lead this process. Additional outlets were opened, including the Guitar Bar, (an ECL proprietary location), which sits in the center of the Rotunda and is outfitted with wraparound LED television screens. This bar was created to be the centerpiece of the Rotunda and we look forward to it contributing incrementally to our revenue. Work continues on the Bob Marley One Love experience and other concepts for opening later in the fiscal year.

The 2022/23 winter tourist season is off to a great start. There have been record passenger numbers, the airport operators have even had to appeal for earlier than usual check-in efforts in order to effectively manage the increased passenger numbers. The Third Quarter revenue plan is benefiting from these increased passenger flows.

For more information CLICK HERE

Ian Dear Founder and Chief Executive Officer of Margaritaville (Turks) Ltd. Has released the following second Quarter report for fiscal 2023.

Revenue of US$1.35 million was earned at a spending rate of US$8.05 per passenger. The second Quarter saw a total of just under 168,000 passengers cruising into the port on 53 vessels, making an average of 3,169 passengers per ship call. The last Q2 report with passenger counts was pre-pandemic. At that time, a total of just under 253,000 passengers cruised into the port.

A total of ten ship calls with passenger count projection of 31,000 were lost due to the passage of the hurricane in September 2022. Hurricane Fiona made landfall in the Turks and Caicos as a Category 3 hurricane in the third week of September 2022, leaving areas flooded and lots of equipment and building damage. Notwithstanding the passage of the Hurricane, the shortfall indicates that the company is still in recovery mode.

Profit for the Quarter returned $360,756 to provide shareholders with Earnings Per share (EPS) of 0.534 US Cents.

Peril Insurance proceeds relating to the Hurricane Fiona contributed $318,799 to the net profit for the Quarter. For the similar Quarter in the prior year, cruising had not yet resumed following the declaration of the pandemic. Net Loss was $327,577 for loss per share of 0.485 US Cents.

Total passenger count for the six months to November 2022 was 343,456. This produced revenue of $2.78 million for a spending rate of US$8.08 per passenger. There was a slight reduction in the spending rate for the second Quarter compared to the first — US$8.11 vs US$8.05 – but this is typical as this period is considered low season on the Caribbean tourism calendar. For the similar period in the prior year there were no ship calls due to the pandemic and so there was negligible revenue.

Profit for the year to date was US$455,196 for EPS of 0.674 US Cents. The similar period in the prior year saw loss of US$606,269 for a loss per share of 0.898 US Cents.

Cost of Sales ratio of 27.1% for the year to date is approximately 2% points higher than the pre-pandemic rate. Considering the continuous inflationary pressures since COVID-19 and the more recent Ukraine war, the company is doing well to contain the cost of ingredients.

There were no unusual expenditures during the year (to date); the team is doing a good job in managing cost in relation to the revenue increase.

For more information CLICK HERE