Polaris Holdings Six Month Financial Results

November 15, 2016

Polaris Holding – the parent company of Stevedoring Services Limited — reported its financial results for the six months ended September 30, 2016.

“Polaris reported profits of $647K or $0.55 per share [September 30, 2015 - $737K or $0.59 per share],” the company said.

“Dividends were stepped up 20% at the start of the year, with shareholders benefiting from a $0.06 per share distribution in each of the first two quarters.

“The prior year ended March 31, 2016 was a watershed period for the Company, punctuated by $1.383 million in its twelve month comprehensive income, but represented by deeper less obvious hallmarks including the notable pride from Stevedoring Services’ staff, the benefits garnered from upgraded equipment, improved maintenance and better training, the enhanced corporate governance, and the strengthening bond between its key stakeholders including the Company’s three freight lines and their consignees.

Former Chairman J. Henry Hayward stated, “Polaris is in an enviable position because of [Warren] Jones’ visionary leadership, and a unique ability to inspire and make change happen.”

“Stevedoring Services handled 18,858 twenty-foot equivalent container movements during the six-month period, with volumes nudging 3.5% above the prior year’s first half. In addition, break bulk and loose cargo, which soared in the first half of fiscal 2016, continued to rise in the current year, up 6.1% for the period ended September 30, 2016,” the company said.

“The island’s ongoing economic recovery and the continued economic boon from America’s Cup were factors management sited to account for the growth, buoyancy which should carry through calendar year 2017 as the Cup races draw nearer.

“Dock Operations Manager, Eric Berkeley, boasted of first half productivity, with Stevedoring Services processing 19.4 containers per gang hour, an improvement from the 17.8 containers per gang hour average just two years earlier.

“The more effective cargo handling helped Stevedoring Services’ freight lines maintain consistent schedules, and reduced their overtime burden, with overtime costs to the lines shaved [15%] during the first half of fiscal 2017.

“Additionally, Mr. Berkeley highlighted that Stevedoring Services has signed a minimum service level agreement with its freight line customers, financially guaranteeing a stepped up level of productivity and efficiency into the future.

“For the six-months ended September 30, 2016 expenses of $5.06 million were consistent with plan and 4.2% or $205K above prior year. Twenty-five percent of that uplift in spending was added costs in the parent company, as part of its corporate strategic planning and business expansion efforts.

“In core operations, cost increases included inflationary uplifts, a modest 1.5% labour raise after two years of frozen wages, higher spending on marketing and promotion, an increase in the Company’s terminal software costs, and an upshift in rates from Stevedoring Services new five year terminal operators license.

“The ongoing investment in SSL’s capital equipment further created increased burden in fiscal 2017, with repairs and maintenance totaling $293K during the six months vs. the $195K spent in the first half of fiscal 2016; $364K in capital spending occurred during the first half.

CEO Warren Jones was asked now that the heavy lifting was done, if he plans to relax and enjoy the spoils of Polaris’ success. Mr. Jones pointed to the words on Polaris’ recently released annual report.“Quietly Powering Bermuda” it read. Mr. Jones stated that, ‘We’re not done yet’.”

Polaris Consolidated Statement follows below [PDF here]:

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