With a significant falloff in tourist arrivals and, by extension, revenue, Dolphin Cove has turned to its bankers for working capital support.
In its financial statements for the nine months ended March 31, 2021, the group indicated that it has drawn to date nearly US$600,000 from the credit line equivalent to US$2 million from Sagicor Bank.
As at March 31, working capital balances were US$0.9 million, compared to US$2.5 at the same time last year.
Management said that, despite the decline in the working capital, Dolphin Cove has a solid net assets base. Its debt to equity ratio has also remained geared at 0:1. At the end of the third quarter, the company had net assets of US$26.5 million, down seven per cent from its 2020 position of US$28.5 million.
“Given the current results and the outlook for the following months we expect to improve our cash position,” the company outlined.
For the third quarter, the company posted overall revenue of US$373,834, down from US$1.8 million at March 2020.
Similarly, operating expenses were significantly reduced for the current period, coming in at US$882,523 for the third quarter ended March 31, 2021. In 2020, Dolphin Cove reported operating expense o US$2.2 million for the same period.
However, net loss for the recent quarter was US$154,389 compared to net profit US$777,983 at March 2020. Loss per share was US0.04 cents compared to US.0.18 cents per unit at March 2020.
At March this year, cash and cash equivalents reflected a negative US$411, compared to a positive balance of US$817,521.
A listed equity on the Junior Market of the Jamaica Stock Exchange (JSE), Dolphin Cove Limited is controlled by Mexican company World of Dolphins Inc, which holds 79.99 per cent of shares issued.
The principal activities of the company are the operation of marine parks and adventure programmes and ancillary operations such as restaurants, gift shops, and photography at several locations in Jamaica.
Companies within the group are Dolphin Cove (Negril) Limited, located at Point Lucea, Hanover, Jamaica.
Too Cool Limited is incorporated in the Cayman Islands and owns land and buildings from which the company operates. Cheshire Hall Limited is a St Lucian International Business Company (IBC), controlled by the company through a deed. Its wholly-owned subsidiary, DCTCI Limited was incorporated in the Turks and Caicos Islands and owns land on which the group intends to develop an attraction.
Balmoral Dolphins Limited is a St Lucian IBC and has a wholly-owned subsidiary, Dolphin Cove TCI Limited, incorporated in the Turks & Caicos Islands for the intended purpose of operating the attraction to be developed by DCTCI Limited.
SB Holdings Limited was incorporated as a St Lucian IBC and has a wholly-owned subsidiary, Marine Adventure Park Limited, whic was also incorporated in St Lucia and purchased land in St Lucia on which the group intends to develop an attraction.
Management stated in the latest financial statements that visitor arrivals to Jamaica in the quarter were 50 per cent or 46,333 below Q1 2020.
In February 2021, the Jamaica Tourist Board reported a similar number of arrivals as in January 2021; however, in March the arrivals increased by 24 per cent, with management noting that this impacted positively sales for the second half of the month.
“The focus of our management has been to set strategies and generate more business but at the same time to ensure that the parks maintain a slim and controlled operation sufficient to provide a high-quality service to our guests and maintaining the well-being of our staff members and the animals under our care.” management stated.