ELITE reports 24% increase in six months revenue

Date: April 13, 2018

Elite Diagnostic Limited, for the six months ended December 31, 2017 booked a 24% increase in revenue to total $141.67 million compared to $114.12 million for the same period in 2016. Revenue for the second quarter rose by 26% to $71.85 million (2016: 57.24 million). The company stated that, “these increases were primarily due to the increased demand for Magnetic Resonance Imaging (MRI) and Computerized Axial Tomography (CT) scans at the New Kingston location.”

Elite mentioned, “Revenues from our Liguanea location, opened in November 2017, were $2,495,100 and rose from Ultrasound scans. Our Liguanea location is planned to house our Operating Suite as well as a high quality imaging 3T (3 tesla) MRI machine. The company received the Ministry of Health Certification for the Operating Suite in January 2018.”

Direct costs for the period increased 25%, closing at $46.48 million, up from $37.07 million reported the prior year, while for the quarter there was a 49% increase closing at $24.75 million (2016: $16.62 million).

As such, gross profit for the nine months amounted to $95.19 million, a growth of 24% when compared to $77.05 million recorded last year. Gross profit for the second quarter rose 16% from $40.62 million to $47.11 million for the corresponding period in 2016.

Administrative expenses climbed by 34% for the period, to total $52.54 million (2016: $39.32 million). Depreciation and amortization also increased by 18% to total $16.31 million relative to the $13.83 booked in 2016. This resulted in profit from operations of $26.34 million, a 10% increase relative to $23.90 million booked a year ago.

Finance Cost for the six months totalled $10.44 million, a significant increase of 108% when compared to the $5.02 million recorded for the same period last year.

Profit before tax totalled $15.91 million compared to $18.88 million recorded last year, a 16% reduction year over year.

The company booked income tax for the period of $3.98 million (2016: $4.80 million).

Consequently, Net Profit for the period totalled $11.93 million, a 15% decline compared to $14.08 million recorded the prior financial year. Net profit for the quarter amounted to $1.20 million, an 86% decline compared to $8.50 million booked for the second quarter of 2016. Net profit was greatly affected by the, “additional expenses incurred from the Liguanea branch along with costs assocated with the preparation of the IPO amounting to 12,300,000.”

Earnings per share (EPS) for the period totaled $0.03 (2016: $0.04). EPS for the second quarter amounted to $0.003 (2016: $0.024). The twelve-month trailing EPS is $0.12. The number of shares used in our calculations amounted to 353,400,000 units. ELITE’s stock price closed the trading period on April 12, 2018, at $3.43.
The company stated, “ growth in revenues are expected from the Liguanea branch starting in May 2018. Elite continues to invest and expand its services to better serve the needs of our customers.”

Balance Sheet at a glance:

As at December 31, 2017, total assets amounted to $449.92 million, up $199 million from the balance of $250.92 million as at December 31, 2016. The increase in total assets was as a result of the increase in property, plant and equipment from $178.05 million to $389.34 million. The Company noted this increase in assets is, “partially as a result of the investment in 3T MRI machine in response to the strong demand for MRI scans. The purchase of the 3T was financed through GE Capital also, the 3T MRI, the only one of its kind in Jamaica, was delayed and is now scheduled to be fully operational in the late April 2018.”

Shareholders’ Equity of $235.46 million was reported (2016: $193.41 million) which resulted in a book value per share of $0.67 (2016: $0.55).


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