CAC 2000, in its nine month financials released this week, indicates that the settlement reached over court-awarded damages to a claimant and a provision for legal costs incurred is twice what was set aside to meet the expected obligation.
Included in payables was $35.86 million. The claimant is X-Ray Diagnostics.
On May 28, 2020, as outlined, “the claimant made an offer without prejudice for the and settling in full by December 31, 2020 in six installments.” The offer was accepted by the company.
However, the settlement reached earlier this year was J$1,159,864.46 and US$445,000, almost twice that which was set aside. At today’s rate (US$1 =J$141.8), the USD portion amounts to J$63.1 million.
CAC 2000 Limited is engaged in the sale of air conditioning equipment and installation and maintenance of such systems.
Revenue for the nine month period to July 2020 was $928.23 million compared to $737.69 million in the similar period last year.
The company booked $28 million in profit for the three months to July, made on revenue of $354.67 million. However, for the complete nine month period, net profit (total comprehensive income) was $7.2 million, compared to a loss of $39.47 million for the similar period in 2019.
Steven Marston, Chairman and CEO commented in remarks attached to the nine month report: “Like everyone else in Jamaica, and most of the world, CAC has been coping with the COVID-19 pandemic that has disrupted our employees, customer operations, supply chain and financing.
“The good news is that we are managing and even pivoting to build on new growth opportunities.”
Marston said the company posted its highest quarterly revenues for this financial year and continues to work on maximizing jobs closed in Q4 from “a healthy portfolio of open jobs.”
He said, “Gross profit margins generally remain unaffected.”
He outlined that the company has introduced a work from home/rostering system and reduced costs as much as possible without having to lay off any employees.
Marston noted, “On the balance sheet we continue to work on driving down inventory, but cash inflows are down due to processing delays and hence accounts receivables and borrowings have temporarily trended upwards.
“The pandemic will continue to change our lives and work for the rest of 2020, and seemingly 2021, and one of the most compelling needs of every business is a desire to keep employees and customers safe,” he stated.
Marston said that with energy, costs rising, and affordability reduced, there is a major need to help customers quickly reduce these, preferably with minimal capital spend.
In light of this, the company has worked “aggressively with suppliers and customers to design and rapidly execute IEQ solutions and we are happy to state that we have been making major inroads while helping customers to minimize downtime,” the CEO said.