Despite its operations being sent into hibernation by the spread of the COVID-19 virus, Dolphin Cove has eked out gains on its operational efficiency.
The company was able to negotiate new supplier arrangements, realising savings of US$60,000, before the onset of closures prompted by COVID-19.
Subsequently, the company has also been focussed on managing costs.
For the three months ended March 31, the pandemic pushed quarterly below the same period in 2019.
Revenue for the quarter was US$2.9 million compared to US$3.5 million in the corresponding quarter in 2019.
Net profit came out at US$0.7 million for March quarter 2020 compared to US$ 0.8 million for the similar period last year.
Direct costs were four per cent below the same period in 2019. Operating expenses decreased by seven per cent or US$60,000, as a result of negotiating better deals with suppliers.
Company directors outline that on March 21, 10 days after the government declared the first coronavirus case on the island, Dolphin Cove decided to close all its operations, consistent with social distancing recommendations.
Consequently, revenue for March 2020 was 53 per cent lower than March 2019.
In its latest report to stockholders, management pointed out that while revenue has been affected by COVID, the operations are debt-free with “a large base of tangible assets and a track record of profitable operations which puts in a good position to access additional cash should this be necessary.”
“Management has been working closely with the directors and senior members of the cruise lines and largest tour operators to have an idea of the expected times for reactivation of the industry in Jamaica.”
Based on these discussions, the plan is to resume operations gradually on July 1.
Further, the company indicates that it has adjusted incentives and commissions scheme and switched to spending on “more effective channels of publicity and promotion.”
Dolphin Cove also initiated an organisational restructure which led to payroll cuts of 10 per cent.