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Dolphin Cove records no revenue in second quarter

Tourist attraction company Dolphin Cove Limited became the only listed company on the Jamaica Stock Exchange during the second quarter to record no revenue.

Dolphin Cove recorded no revenue in its second quarter ended June 30.

This followed the closure of its facility from March 20 until mid-July.

This is a new phenomenon as no other company had ever gone a quarter of collecting no revenue from general operations, which spoke to the effect COVID-19 had on the company and by extension the tourism market.

As a result, the World of Dolphins subsidiary recorded a gross loss of US$153, 000 relating to the costs associated to maintain the dolphins and operations of the park.

Dolphin Cove’s facility was closed from March 20 to mid-July amid the coronavirus pandemic.

Apart from finance and other income, the group still recorded a US$982,400 loss, despite operating expenses falling 69 per cent to US$828,500 mainly due to the lay-off of approximately 85 per cent off its staff and less activities at its respective locations.

The loss dragged the company’s usually profitable six-month period into a net loss of US $273, 400 versus the US$1.7 million generated in the same period last year.

This is the second significant event in the last three years to affect the company following the imposition of the state of emergency along the north coast.

The group recorded loss of US$982,400 over the quarter, despite cutting operating expenses by 69 per cent due to COVID-related layoffs.

Total assets declined by six per cent to US$31.2 million as the company paid out a US$858,000 dividend along with a decline in receivables over the period.

Total liabilities declined by three per cent with a sharp fall decrease in current liabilities and relatively higher current liability standing at US$2 million. Shareholder’s equity declined by six per cent as well to US$27.5 million due to the loss and dividend payment over the period.

Due to the company facing such extremes during the period, Dolphin Cove has taken steps to manage its operations carefully. This included the reduction of executive and director’s fees by up to 50 per cent until general operations for the parks return to substantially normal operations, the reduction of capital expenditures, the suspending of management fees for the rest of the year, and a solid focus on collecting receivables.

Receivables collections have become more difficult in the second quarter as the company’s clients face their own liquidity constraints. Dolphin Cove also had low leverage and US$1.6 million in working capital at the end of June to proceed through the difficult times ahead.

As part of its reopening plans, the company has offered massive discounts and package deals to guests to incentivise visits back to the park complemented by a four-day week which targets locals on three days and tourists on the other day.

–David Rose