May 15, 2019
Elite Diagnostic Limited (ELITE) for the nine months ended March 31, 2019 booked a 32% increase in revenue to total $289.25 million compared to $219.91 million for the same period in 2018. Revenue for the 3rd quarter rose by 37% to $107.01 million (2018: $78.24 million). Management noted, “the increase for the 3rd quarter was due to the increase in demand for imaging scans and increase in intervention procedures.”
Direct costs for the period increased 26%, closing at $89.59 million, up from $70.85 million reported the prior year, while for the third quarter there was a 27% increase closing at $31.05 million (2017: $24.37 million).
As such, gross profit for the nine months amounted to $199.66 million, a growth of 38% when compared to $86.30 million recorded last year. Gross profit for the third quarter increased 41% from $53.88 million to $75.96 million for the corresponding period in 2018.
Administrative expenses climbed by 38% for the period, to total $119.43 million (2018: $86.30 million). Depreciation and amortization also increased by 61% to total $41.80 million relative to the $25.92 booked in 2018. This resulted in profit from operations of $20.31 million, a 93% increase relative to $10.51 million booked a year ago.
Finance Cost for the nine months totalled $13.82 million, a decrease of 3% when compared to the $14.24 million recorded for the same period last year, while foreign loss amounted to $1.80 relative to nil the prior year.
Profit before tax totalled $22.81 million compared to $22.61 million recorded last year, an advance of 1% year over year. Profit before tax for the quarter jumped $16.02 million relative to $6.71 million booked for the prior year’s corresponding period.
Following no income tax for the period (2018: $3.98 million), Net Profit for the period totalled $22.81 million relative to $18.64 million recorded the prior financial year. Net profit for the quarter amounted to $16.02 million, a 139% increase compared to $6.71 million booked for the same quarter in prior year.
Earnings per share (EPS) for the period totalled $0.06 (2018: $0.05). EPS for the third quarter amounted to $0.05 (2018: $0.02). 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 15th, 2019, at $3.06.
ELITE stated, “while the demand for imaging services remains strong and still maintaining steady growth the company is increasing their focus on Interventional Procedures. Elite being the only company in the English speaking Caribbean to offer Endoscopic Ultrasound )EUS), the company is well positioned for growth in these types of procedures.”
Management also noted, “Construction of the new St. Ann location is well underway and the company is expecting a 1st quarter opening. The company is beginning its marketing efforts on the new location. The new medical center will offer full imaging service along with doctors’ offices. Elite continues to execute its long term goal of increasing its market share while continuing to provide excellent patient care and outstanding services.”
Balance Sheet at a glance:
As at March 31, 2019, total assets amounted to $690.45 million, up $107.18 million from the balance of $583.27 million as at the previous year. The increase in total assets was as a result of the increase in ‘Property, Plant and Equipment’ from $434.26 million to $507.76 million. ‘Cash and Cash Equivalents’ also contributed to the increase in the total asset base with a 13% growth year over year to close at $155.03 million relative to $137.37 million as at March 31, 2018.
Shareholders’ Equity of $422.30 million was reported (2018: $377.82 million) which resulted in a book value per share of $1.19 (2018: $1.07).
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