September 27, 2019
Elite Diagnostic Limited (ELITE), audited results for the year ended June 30, 2019, booked a 36% increase in revenue to total $404.87 million compared to $297.76 million for the prior year. Revenue for the fourth quarter rose by 49% to $115.62 million (2018: $77.85 million). The Company highlighted that, “the increase in revenue was due to a greater utilization of the Liguanea branch which also extended their day of operations and opening hours to accommodate the increased demand for imaging services..”
Direct costs for the period increased 8%, closing at $126.26 million, up from $117.30 million reported the prior year, while for the quarter there was a 21% decrease closing at $36.66 million (2018: $46.45 million).
As such, gross profit for the twelve months amounted to $278.61 million, a growth of 54%, when compared to $180.46 million recorded last year. Gross profit for the final quarter increased 152% from $31.39 million in 2018 to $78.96 million for the corresponding period in 2019.
Administrative expenses climbed by 47% for the period, to total $147.98 million (2018: $100.65 million). Depreciation and amortization increased by 97% to total $55.83 million relative to the $28.33 million booked in 2018. This resulted in profit from operations of $75.02 million, a 44% increase relative to $51.96 million booked a year ago. While, for the quarter, administrative expenses and depreciation & amortization closed at $28.56 million (2018: $14.35 million) and $14.03 million (2018: $2.41 million), respectively.
Finance cost for the twelve months totalled $20.08 million, an increase of 25% when compared to the $16.05 million recorded for the same period last year, while foreign loss amounted to $3.12 million compared to a loss of $40,684 booked in 2018.
Profit before tax totalled $51.82 million compared to $35.86 million recorded last year, a 45% increase year over year. ELITE reported no taxation for the period under review relative to a tax credit of $9.05 million in 2018.
Consequently, Net Profit for the year totalled $51.82 million relative to $44.91 million recorded the prior financial year. Net profit for the quarter amounted to $29.02 million, 10% increase compared to $26.28 million booked for the final quarter of 2018.
Management also noted that, “the St Ann location opened its doors in September 2019 and the company is very optimistic with the potential of that location. The St Ann location offers MRI, CT Scan, Ultrasound and X-Ray along with doctor offices. Although in the short term, the new St Ann location expenses will weigh on the overall profit, the company expects a quick turn-around to profitability at that location. The St Ann branch is ideally located between St Ann’s Bay and Ocho Rios.”
Earnings per share (EPS) for the year totaled $0.15 (2018: $0.13). EPS for the fourth quarter amounted to $0.08 (2018: $0.07). The number of shares used in our calculations mounted to 353,400,000 units. ELITE’s stock price closed the trading period on September 27, 2019, at $5.32.
Balance Sheet at a glance:
As at June 30, 2019, total assets amounted to $664.07 million, up $72.28 million from $591.79 million as at the previous year. The increase in total assets was as a result of the increase in property, plant and equipment from $454.55 million in 2018 to $561.75 million in 2019. ‘Receivables’ also contributed to the increase closing at $25.24 million (2018: $10.66 million).
Shareholders’ Equity of $451.21 million was reported (2018: $399.49 million) which resulted in a book value per share of $1.28 (2018: $1.13).
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.