May 26, 2020
Elite Diagnostic Limited (ELITE) for the nine months ended March 31, 2020 booked a 20% increase in revenue to total $347.29 million compared to $289.25 million for the same period in 2019. Revenue for the third quarter rose by 4% to $111.37 million (2019: $107.01 million). Management noted, “The breakdown of MRI and CT equipment at the Kingston locations were unusually lengthy amounting to a potential revenue loss of $12 Million. Both CT and MRI in the Kingston locations were repaired during the quarter. Revenues at the St. Ann location under-performed due to the breakdown of CT and MRI. We continue to have challenges with getting the 2 machines operational. The company revenues were also impacted by the COVID-19 outbreak towards the end of the 3rd quarter.”
Direct costs for the nine months increased 41%, closing at $126.68 million, up from $89.59 million reported the prior year, while for the third quarter there was a 25% increase in direct costs, closing at $38.68 million (2019: $31.05 million).
As such, gross profit for the nine months amounted to $220.61 million, a growth of 10% when compared to $199.66 million recorded last year. However, gross profit for the third quarter decreased 4% from $75.96 million in 2019 to $72.69 million for the corresponding quarter in 2019.
Administrative expenses climbed by 8% for the nine months to total $129.03 million (2019: $119.43 million). Depreciation and amortization increased 32% to total $55.20 million relative to the $41.80 million booked in 2019. This resulted in profit from operations of $36.38 million for the nine months ended March 31,2020, a 5% decrease relative to $38.43 million booked a year ago.
Finance cost for the nine months totalled $15.62 million, an increase of 13% when compared to the $13.82 million recorded for the same period last year, while exchange loss amounted to $1.69 compared to a loss of $1.80 million the prior year.
Profit before tax for the nine months ended March 31,2020 totalled $19.07 million compared to $22.81 million recorded last year, a decline of 16% year over year. Loss before tax for the quarter amounted to $2.05 million relative to a profit before tax of $16.02 million booked for the prior year’s corresponding quarter.
Net profit for the period totalled $19.07 million relative to $22.81 million recorded the prior financial year’s corresponding period. Net loss for the quarter amounted to $2.05 million, compared to a net profit of $16.02 million booked for the same quarter in prior year.
Earnings per share (EPS) for the period totalled $0.05 (2019: $0.06). Loss per share (LPS) for the third quarter amounted to $0.01 relative to an EPS of $0.05 in corresponding quarter of 2019. The trailing twelve-month EPS amounted to $0.14. The number of shares used in our calculations amounted to 353,400,000 units. ELITE’s stock price closed the trading period on May 22, 2020, at $3.40.
ELITE stated that, “the company expects performance to be negatively impacted by Covid-19 for the upcoming quarters. The company has taken prudent steps to mitigate the risk of COVID-19 on our staff and patients.”
Balance Sheet at a glance:
As at March 31, 2020, total assets amounted to $687.31 million, down $3.14 million from the balance of $690.45 million as at the previous year. The decrease in total assets was as a result of the 55% decrease in ‘Cash and Cash Equivalents’ which closed at $70.39 million relative to $155.03 million as at March 31, 2019. This was tempered by a 14% increase in ‘Property, Plant and Equipment’ from $507.76 million to $580.38 million in 2020.
Shareholders’ equity of $470.28 million was reported (2019: $422.30 million) which resulted in a book value per share of $1.33 (2019: $1.19).
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.