Polaris Holding Reports Financial Results
In a filing with the Bermuda Stock Exchange [BSX], Polaris Holding Company Limited reported its financial results for the year ended March 31, 2020.
The full filing stated: “On August 14, 2020, Polaris Holding Company Ltd. [“Polaris”], parent company to Stevedoring Services Limited [“Stevedoring Services”] and East End Asphalt Company Limited [“East End Asphalt”], reported its financial results for the year ended March 31, 2020.
“Polaris reported profits of $168K or $0.14 per share [March 31, 2019 - $801K or $0.68 per share].
“Cargo volumes flowing into, and out of, the island are a bellwether for Bermuda’s economy. For the year ended March 31, 2020 while 20-foot equivalent container volumes [“TEUs”] rose incrementally to 37,504 TEUs, up from the 37,425 TEUs in the prior year, break bulk cargo, an indicator of construction and development on Island, reflected its second consecutive year of decline, and at 26,394 freight tons [fiscal 2019 – 34,237] represented a [23%] fall.
“Fiscal 2020 was Polaris’ first year operating East End Asphalt, the business having been acquired on March 14, 2019. Given factors at play, including the ravages of Covid-19 at the end of fiscal 2020 which sidelined the asphalt operator during the island’s shelter in place, East End Asphalt had a respectable year, with $3.26 million in revenue [fiscal 2019 - $80K].
“Higher operating costs and $1.91 million in capital spending, on the heels of fiscal 2019’s $3.58 million in capital outlays [exclusive of the East End Asphalt acquisition], put pressure on Polaris’ income statement and cash flow; however in fiscal 2020, liquidity remained strong with Polaris’ cash and cash equivalents at year end, $1.85 million, up from the $1.39 million cash position a year earlier.
“One-off charges further affected fiscal 2020’s bottom line, including spending on the Corporation of Hamilton’s tender process to continue facilitation of the Port of Hamilton’s Cargo Dock Area for the coming 20 years.
“Although the year’s results were softer than hoped, and fiscal 2021 will prove challenging for all businesses, with 54 years of experience, a well-capitalized balance sheet, and key leadership in place in the form of Stevedoring Service’s Operation’s Manager Eric Berkley, East End Asphalt’s General Manager Travis Gilbert, and Polaris’ President and CEO Warren Jones, the Company’s future remains favorable, despite short term hurdles ahead.”
