Polaris Holding “Returned To Profitability”

August 23, 2022

In a filing with the Bermuda Stock Exchange [BSX], Polaris Holding reported its financial results, noting that “after an economically depressed period caused by Covid-19, Polaris returned to profitability.”

The full filing stated: “On 23 August 2022, 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, 2022.

“After an economically depressed period, caused by Covid-19, Polaris returned to profitability, reporting a consolidated gain of $1.13 million or $0.95 per share [March 31, 2021 – [$511K] or [$0.43] per share], with both Stevedoring Services and East End Asphalt reporting profits.

“Twenty-foot equivalent container unit moves [TEUs], traditionally a guidepost to Bermuda’s economic health, remained flat in fiscal 2022, with 34,217 TEUs moved during the 12 months, down 114 boxes or 1/3rd of 1% from prior year’s TEU activity.

“As a result of not fully recovering from the worldwide pandemic which enveloped the country in early 2020, coupled with Bermuda’s population base sitting at lows not seen in more than two-decades, TEU volumes remain below that enjoyed in the early 2000’s; however, strong breakbulk cargo volumes, cost containment, and a re-engineering of Stevedoring Services’ garage and operations in the middle of fiscal 2021, aided in its return to stability.

“East End Asphalt, which saw a solid pipeline of work get deferred in the wake of Covid-19, experienced a strong rebound, with revenue up 71.8% year over year, and the division shifting into profitability for the first time since acquisition.

“Having halted dividends last year, in June 2021 Polaris re-established its quarterly distributions, first at $0.08 per share, then effective September 2021 and over the past four quarters, paid a reliable dividend of $0.10 per share per quarter; ongoing consistency is anticipated. The Company’s stock last traded at $8.00 per share, slightly below book value, with that value representing a palatable dividend yield of 5.0%.”

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