Home' Trinidad and Tobago Guardian : November 2nd 2014 Contents Today we review the perform-
ance for four companies that
have recently released their
Berger Paints Trinidad Ltd
In the second quarter to September 2014,
Berger delivered revenues of $15.18 million.
Those sales were higher than the $14.62 million
reported for the first quarter to June, but lower
than the $16.72 million delivered for the 2013
These changes resulted in the half-year sales
to September 2014 coming in at $29.79 million;
this was marginally lower than the $30.11 mil-
lion reported for the same period in 2013.
Despite this challenge, profit from operations
improved to $1.71 million from $493k in the
half-year to September 2013. Most of this
improvement was concentrated in the first
three months, when the profit from operations
of $1.14 million was reported. In the current
quarter, profit from operations came in at a
much lower $576k, due largely to dispropor-
tionately higher expenses.
Net profit for the current quarter came in
at $407k, which translated into EPS of $0.08.
When added to the first quarter s results of
$715k, the year-to-date profit of $1.12 million
reflects an EPS of $0.22. This result compares
favourably to last half-year s profit of $240k
and EPS of $0.05.
For the twelve months to March 2014, Berger
recorded a huge improvement in its EPS to
$0.56 from $0.15 in the year to March 2013;
however, much of that improvement seems
to have been related to a reduction in "other
expenses", which fell to $3 million from $7.18
million in the prior period.
In the year to March 2012, EPS came in at
$0.36. Perhaps, the wide swings in profitability
are one of the factors that keep the company s
share price at relatively low levels?
For the 2013/14 fiscal period, the company
paid a dividend of $0.08. Using the 2013/14
EPS of $0.56, the recent share price of $3.65
reflects a P/E multiple of 6.5 while the dividend
yield is 2.19 per cent.
One Caribbean Media Ltd
OCM delivered revenues of $133.8 million
for the three months ended September 2014.
This figure was 2.2 per cent lower than the
$136.8 million recorded for the same period
in 2013. While revenues in Trinidad & Tobago
continued to be strong, those in Barbados and
the Eastern Caribbean were adversely influ-
enced by challenging economies.
With the cost of sales coming in slightly
more than in the 2013 period (2014: $87.8 mil-
lion; 2013: $87.3 million), the gross profit figure
declined to $46 million from $49.5 million in
2013 s third quarter.
Higher administrative and marketing
expenses further pulled down the profit picture,
resulting in profit before other income reg-
istering at $23.94 million versus $28.18 million
for the third quarter in 2013.
Dividend and interest income, offset by
finance costs, came in at $1.127 million in the
current quarter; this was only slightly greater
that the $1.014 million recorded for the same
period in 2013.
After allowing for taxes, profit from con-
tinuing operations were $18.45 million versus
$21.11 million for the third quarter of 2013.
On a year-to-date basis, revenues were
almost $402 million; this represented an
increase of 2.5 per cent over the $392 million
recorded for the nine months ended September
After-tax profit came in at $57.8 million,
which was $1.8 million (or almost 3 per cent)
lower than the $59.5 million earned for 2013
nine-month period. EPS contracted from $0.88
in 2013 to $0.85 in the current session.
Using a trailing annual EPS of $1.22, the
recent share price of $25.25 reflects a P/E mul-
tiple of 20.7. With the total annual dividend
of $0.74 unlikely to change significantly, the
dividend yield is 2.93 per cent.
The recent resignation of one of OCM s
directors for "potential conflict of interest"
suggests that at least one of its subsidiaries
would soon be facing competition from a new
Readymix (West Indies) Ltd
For the three months ended September
2014, Readymix generated revenues of $61.4
million; this was 35.3 per cent higher than the
$45.4 million recorded for the same period in
2013. This improvement reflects continuing
strong demand for its products.
Operating profits rose by more than 24 per
cent to reach $8.52 million from $6.86 million
in the 2013 comparative period. After allowing
for net finance costs of $1.01 million, pre-tax
profits came in at $7.51 million.
After providing for taxation of $1.51 million
and the after-tax loss on discontinued oper-
ations of $3.38 million, total profit after tax
came in at $2.61 million. Of this total, $3.97
million in profit was attributable to shareholders
while non-controlling interests accounted for
a loss of $1.35 million.
In the 2013 period, restructuring costs of
$2.47 million and net finance costs of $348k
pulled down pre-tax profits to $4.04 million.
Further, taxes of $458k and losses from dis-
continued operations of $2.89 million resulted
in a net after-tax profit of $693k. Similar to
the 2014 allocation, profit attributable to share-
holders came in at $1.85 million while minority
interests accounted for losses of $1.16 million.
For the nine-month period, revenues of
$162.3 million were 24.4 per cent greater than
the $130.4 million recorded for the comparative
2013 period. Net profits for the period came
in at $10.33 million; of this total, $12 million
was attributable to shareholders while non-
controlling interests accounted for a loss of
Year-to-date EPS rose strongly from $0.43
in 2013 to $1.00 in the current period. On the
basis of the third quarter trend and barring
unforeseen circumstances, the full year s EPS
could reach as high as $1.50.
Using a recent share price of $18.80 along
with the projected EPS, the P/E multiple is
(or would be) 12.53.
As at the end of September 2014, RML
closed the operations of its Barbados Company,
Premix & Precast Concrete Inc.; the cost of
$4.18 million is reflected in these accounts.
Presumably, no further year-end adjustment
would be required.
Trinidad Cement Ltd
Since the change of directors occurred in
August 2014, this is the first interim report
under the new board of directors. It is note-
worthy that the third quarter report was
released 14 business days after the end of the
period. Perhaps, this heralds both timelier
reporting and more forthright relationships
with its various publics, including shareholders,
lenders and employees?
For the July to September quarter, TCL s
revenues improved by less than 1 per cent to
$513.7 million from $496 million in the same
period in 2013. Despite this lethargic top-line
growth, EBITDA rose by 34 per cent; this pri-
mary result moved from $93 million in the
2013 period to $124.6 million in the current
This quarter s results were characterised by
four significant changes: (1) a non-recurring
charge of $2.84 million; (2) $4.18 million less
in finance costs; (3) a $7.63 million tax charge
(2013: a tax credit of $1.25 million); and (4)
loss from discontinued operations of Premix
& Precast of $3.38 million (2013: $2.89 million).
These changes helped TCL produce a period
net profit of $31.71 million. Of this total, $30.1
million was attributable to shareholders while
non-controlling interests represented $1.62
It is noteworthy that the current quarter s
net profit represents 50 per cent of the $60
million earned for the nine-month period to
September 2014. Assuming that this momen-
tum is maintained, (and) then TCL s full year s
profits could end very close to the $100 million
Due to the temporary suspension of pay-
ments under the restructured loan agreements
on September 30, 2014, TCL was in default.
This event triggered a change in the presen-
tation of its statement of financial position.
Consequently, both short-term and long-
term assets and liabilities have been amalga-
mated and appropriately offset. This presen-
tation shows net assets of $571.3 million, which
is balanced by shareholders equity of $600.1
million, before being reduced by non-con-
trolling interests of $28.8 million.
The movement of the TCL share price over
that past several weeks was interesting. On
August 15, 2014, which was just prior to the
meeting called to change directors, the share
price closed at $2.02.
Following the decisive results of that meet-
ing, the price rose quickly, peaking at $3.06
on August 26, 2014. As the magnitude of the
turnaround began to sink in, the price drifted
down, closing at $2.24 on September 30, 2014.
This decline persisted and the price sank
to $1.85 on October 14, 2014. The release of
the third quarter results at the end of that
week saw the price spurt to $1.93 and, on
October 28, 2014, it was quoted at $2.00;
essentially, the price was back to its mid-
Clinker sales by the Jamaican subsidiary to
Venezuela under the Petro Caribe arrangement
helped that subsidiary s performance. Carib
Cement has now entered a new arrangement,
starting in October 2014, to supply Venezuela
with 240k tonnes of clinker.
The PetroCaribe arrangement, which is
heavily dependent on Venezuela s economic
health, represents a significant value for both
Carib Cement and the TCL group. With oil
prices currently on the decline, it remains to
be seen how long this arrangement can con-
After some self-imposed delays, which have
now been removed, the company will hold its
AGM for both 2012 and 2013 on November
(It was expected that, by last Friday, October
31, 2014, TCL would have emerged from its
period of uncertainty, after having hammered
out an acceptable agreement with its bankers
that assures the continuing operations and
future long-term viability of the group.)
NOVEMBER 2 • 2014 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG11
• Berger Paints Trinidad Ltd
• One Caribbean Media Ltd
• Readymix WI Ltd
• Trinidad Cement Ltd
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