Elite reports 23% increase in nine months revenues

Date: May 16, 2018

Elite Diagnostic Limited, for the nine months ended March 31, 2018 booked a 24% increase in revenue to total $219.91 million compared to $179.29 million for the same period in 2017. Revenue for the third quarter rose by 20% to $78.24 million (2017: $65.28 million). The company stated that this was due to “the increased demand for the company’s services and the opening of the Liguanea location in November 2017.”

Direct costs for the period increased 28%, closing at $70.85 million, up from $55.40 million reported the prior year, while for the quarter there was a 33% increase closing at $24.37 million (2017: $18.33 million).

As such, gross profit for the nine months amounted to $149.07 million, a growth of 20% when compared to $123.89 million recorded last year. Gross profit for the third quarter rose 15% from $53.88 million to $46.95 million for the corresponding period in 2017.

Administrative expenses climbed by 45% for the period, to total $86.30 million (2017: $59.65 million). Depreciation and amortization also increased by 24% to total $25.92 million relative to the $20.93 booked in 2017. This resulted in profit from operations of $36.85 million, a 15% decrease relative to $43.32 million booked a year ago.

Finance Cost for the nine months totalled $14.24 million, a significant increase of 157% when compared to the $5.55 million recorded for the same period last year.

Profit before tax totalled $22.61 million compared to $37.77 million recorded last year, a 40% reduction year over year.

The company booked income tax for the period of $3.98 million (2017: $4.80 million).

Consequently, Net Profit for the period totalled $18.64 million, a 43% decline compared to $32.97 million recorded the prior financial year. Net profit for the quarter amounted to $6.71 million, a 64% decline compared to $18.89 million booked for the third quarter of 2017. ELITE noted that this was primarily due to, “increased administrative costs related to the opening of the new location.”

Earnings per share (EPS) for the period totaled $0.05 (2017: $0.09). EPS for the third quarter amounted to $0.02 (2017: $0.05). The twelve-month trailing EPS is $0.09. The number of shares used in our calculations amounted to 353,400,000 units. ELITE’s stock price closed the trading period on May 16, 2018, at $3.23.

The company stated, “The 3T MRI that was scheduled to be operational in late April has been delayed until late May. It is expected that the new 3T will add significant revenue once that capacity is operational. The company also just recently purchased another MRI system with plans to expand its services outside of Kingston. The company continues to invest in, and expand its services to better serve the needs of our customers.”

Balance Sheet at a glance:

As at March 31, 2018, total assets amounted to $583.27 million, up $326.79 million from the balance of $256.48 million as at March 31, 2017. The increase in total assets was as a result of the increase in property, plant and equipment from $177.59 million to $434.26 million and ‘Cash and cash equivalents’ which amounted to $137.37 million (2017:$70.77 million) a 94% uptick.

Shareholders’ Equity of $377.82 million was reported (2017: $212.29 million) which resulted in a book value per share of $1.07 (2017: $0.60).


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.