In his report to Shareholders, Company President Roger Davidson states, "In comparison with last year, net income from operations declined $124,437 with revenue not keeping pace with expenses. As a result of the recent significant investment in capital assets, depreciation has contributed substantially to this increase in expenses. The events of 11th September 2001 and their consequences contributed to these results and will have a continuing impact at least for the remainder of the year. While the negative impact of terrorism on our economy has been ameliorated by the growth of international business, this economic stimulus benefits primarily those who provide services directly to such business; prevents the real estate market from deflating and provides an immediate boost to sales of office furnishings and equipment. However, it may over-stimulate the labour market leading to a rise in local costs. Thus the economic impact on our markets is mixed.
Our response has been to maintain the quality of services and to reduce expenses wherever possible; at the same time seeking to create new revenue opportunities.
Bermuda's economy as never before is particularly vulnerable while events unfold as far away as the Israeli/Palestinian conflict. The degree of risk surrounding another potential terrorist attack in the United States may lead to a further downturn in the North American economy with world-wide consequences.
As the course of economic events unfold locally and internationally, your Company has a diversified base of revenue. With effective management we shall emerge from the current economic difficulties just as we have following previous recessions: leaner, more resilient and better prepared to meet the challenges ahead.
The total interests of all directors and officers of the Company in the shares of the Company at 31st March 2002 amounted to 162,294 shares. No rights to subscribe for shares in the Company have been granted to or exercised by any director or officer.
I should like to take this opportunity to acknowledge the support we have received from our customers and shareholders and in particular to thank our staff for their contributions during these difficult times."
Report highlights show Revenue at $14,076,003 up from $13,712,625 for the same period last year, but Net Income from Operations fell from $802,918 to $678,481. Net Income before Minority Interest also fell from $926,519 to $678,481. Net Income for the period was also down from $940,495 to $633,607 while earnings per share dropped from 68 cents to 46 cents. A 32 cent per share dividend totaling $441,678 was paid for the period, the same as in the previous year.