• Lopez Holdings’ Q1 profit plunges 49%

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    Back to profitability. Sta. Lucia Land Inc. is not yet ready to declare dividend either in cash or in stock for lack of enough surplus.

    As of December 31, its retained earnings amounted to only P389.008 million, when divided among holders of 10.796 billion outstanding shares would be equal to P0.036 per share.

    Sta. Lucia Land successfully wiped out its accumulated deficits of P427.137 million as of December 31, 2010, with its net profits of P146.137 million in 2010; P358.793 million in 2011; and P311.214 million in 2012.

    With its profitability, the question that investors might ask is, will Sta. Lucia Land be able to sustain it?

    Capital expansion. Sta. Lucia Land will hold its annual stockholders’ meeting on June 21, when it will submit for ratification a 100-million-share stock option plan; the sale of three billion shares through a follow-up offering; and a borrowing of up to P6 billion.

    Because Sta. Lucia Realty and Development Inc. owns 9.701 billion equivalent to 89.853 percent, all three resolutions are sure to get the stockholders’ approval. But the question is which of the three would be implemented?

    Sta. Lucia Land has been trading below par, even hitting a low of P0.71 on May 27 after surging to a 30-day high of P1.05 on April 19. With this kind of performance, who would invest in its shares at par value of P1?

    Even insiders might even reject the company’s stock option plan where shares are usually at a huge discount to market.

    Insiders’ trades. Wilfredo Rodriguez, senior vice president of Asia United Bank, bought 16,000 AUB shares on May 24 when AUB closed at P98.70 and fell to P97.50 the following day. The acquisition increased the number of AUB shares he owns to 78,970 . . . Magdaleno Albarracin Jr., a member of the board of Holcim Philippines Inc., bought 10,000 Holcim shares at P15.10 each-P0.10 off the day’s close, on May 28, increasing his holdings to 495,452 shares. The following session, Holcim closed at P15.32 . . . Walter Brown, executive chairman of Brown Co. Inc., increased his indirect holdings in the company from 135.342 million shares to 135.559 million shares, or 9,78 percent, after buying additional shares on May 27 and 28 at prices ranging from a low of P2.38 to a high of P2.40 each. He also directly owns 249.523 million shares, or 18 percent.

    49-percent plunge. The board of Lopez Holdings Corp., which belongs to the Lopez group that also controls ABS-CBN Corp., approved yesterday the distribution of P0.125 dividend to stockholders as of June 14, which will be paid on or before June 28, according to a filing signed by lawyer Enrique Quiason, corporate secretary.

    The dividend of P572.947 million will be taken from the company’s retained earnings of P44.161 billion as of March 31, 2013, which is 9.634 times its outstanding capital of P4.584 billion.

    In the first quarter of 2013, Lopez Holdings reported that its revenues dropped 12.659 percent to P22.155 billion from P25.366 billion in the same period last year. As a result, its net profit fell plunged 48.837 percent to P4.090 billion from P7.994 billion.

    Capital profile. The authorized capital stock of Anchor Land Holdings Inc. consists of 2.30 billion common shares with par value of P1 per share with 693.334 million issued; and 1.30 billion preferred shares with par value of P1 each, with 346.667 million issued, which earns 8 percent per annum.

    The issued common shares included 86.667 million shares, which were sold in August 2007 at P8.93 per share through an initial public offering. As of December 31, 2012, Anchor Land had 102 stockholders.

    In the first quarter of 2013, Anchor Land reported net income of P295.414 million, up 12.651 percent from P262.239 million in the same period in 2012. These profits resulted from revenues which increased 28.560 percent to P1.580 billion from P1.229 billion.

    Dividend. The capital profile of Anchor Land is undergoing some changes because of the declaration of stock dividend, which will entitle its stockholders to receive one common share for every two common shares they own. The peso equivalent will be taken from retained earnings which amounted to P2.678 billion as of March 31, 2013.

    The stock dividend will effectively increase the company’s outstanding common shares to 1.040 billion shares.

    The holders of 346.667 million preferred shares, on the other hand, will receive their yearly 8-percent dividend, or P27.733 million.

    A filing posted on the website of the Philippine Stock Exchange listed three of its significant stockholders such as Sybase Equity Investments Corp., 135.073 million common shares and 67.609 million preferred shares, or 19.5 percent; LTC Prime Holdings Corp., 240.268 million common shares, 120.134 million preferred shares, or 34.65 percent; and Cindy Mei Ngar Sze, 103.999 million common shares, 51.999 million preferred shares, or 15 percent.

    esdperez@gmail.com

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