Margaritaville St. Thomas Sales Push Parent Company Into The Black
CHARLOTTE AMALIE — The tourism boom that the rest of the Caribbean was showing last year is also showing up in the numbers for the territory.
With Margaritaville St. Thomas helping to put its parent company Margaritaville Caribbean Limited (MCL) into the black according to the latest financials released by the company
Margaritaville Caribbean the parent company for a number of subsidiaries that own and operate Jimmy Buffet-themed attractions, restaurants, bars, nightclubs and retail outlets throughout the region, achieved a net profit in its third quarter on the heels of losses for the previous quarter, boosted by revenue from its new store in St Thomas.
In financials for the nine months to February 29, 2016, released last weekend, Margaritaville Caribbean reported net profit of $160,000. This compared to a net loss of $230,000 for the similar period in 2015.
Comparatively, Margaritaville Caribbean reported net losses for the previous quarter (November 30, 2015) of $451,000 compared to losses of $830,000 in the prior year.
Revenue for the third quarter this year stepped up to $1.1 million, a 13 percent increase quarter over quarter with most of this coming from the new store which started operations in August 2015.
The store, operating under the flagship of Margaritaville Vacation Club (MVC) in St Thomas, was established under a partnership created with Wyndham Vacation Ownership, described as the largest timeshare operators in the world.
The resort was formerly the Wyndham Renaissance Grand Beach Palace.
Revenue from MVC was $565,000 during the quarter under review, while the older operation brought in $723,000.
In its annual report for the year ended May 2015, Margaritaville said it expected to replicate and grow the concept as a part of its portfolio.
Year-to-date revenue for the group is $27.6 million – $2.6 million more than the $25 million seen over the same period in 2015.
The company said it benefited from the significant reduction in long-term bank loans owing during the quarter. It noted, however, that foreign exchange gains on Jamaican dollar loans were less this quarter than last year.
For the third quarter to February 29, 2015, gains were $263,000 compared to only $20,000 in the quarter this year.
Margaritaville Caribbean indicated in its annual report that it currently operates nine Jimmy Buffett Margaritaville locations across four islands, the last being St Thomas, USVI.
The company said it is focused around a strategy of targeting transportation hubs and high-traffic locations with captive markets, where it offers a range of food, beverage and entertainment options.
Since 2011, it has rolled out this strategy in partnership with international food and beverage franchises such as Quiznos Subs, American Dairy Queen (DQ Grill and Chill), Auntie Anne’s Pretzels, Cinnabon , Moe’s Southwest Grill, Wendy’s, Domino’s Pizza and Nathan’s Famous Hotdogs.
These brands, along with a number of the company’s own proprietary brands, are expected to meet demand from high-volume traffic reflecting different demographic requirements and demands, the annual report said.
Customers are primarily cruise ship passengers and resort guests representing 95 per cent of revenue sources, with most also coming from North America.