Reverses 2019 growth into losses for 2020

Fierce competition within the medical diagnostic industry, aided and abetted by rising operational costs, has contributed to Elite Diagnostic Limited reversing its 2019 growth into losses for 2020.

For the six-month period ended December 2020, the company, which provides diagnostic imaging services including magnetic resonance imaging (MRI), CT scans, interventional procedures and x-rays, is reporting a loss of $7.3 million compared to a profit of $21.1 million for the comparable period in 2019. Revenues for the December quarter were marginally up to $126.4 million compared to $117.9 million booked for the December 2019 quarter.

Net profit for the December quarter amounted to $3.1 million as compared to $4.4 million in the previous year.

Despite the increase in revenue, net profit was impacted by increases in administrative and depreciation expenses.

There was a decrease in direct cost of $4.2 million. However, there were increases of $8 million and $7 million for administrative and depreciation expenses, respectively. Revenue for the months ending December 31, 2020 was $236.1 million compared to $235.9 million the previous year.

Total assets for the period under review were $687.1 million compared to $697.2 million the previous year. Total liabilities were $234.6 million compared to $224.8 million booked the previous year.

St Ann location revenues continue to climb

On the positive side, revenues at the St Ann location continue to increase month over month and the company remains optimistic for its future. Demand for medical imaging remains buoyant at the two Kingston locations.

However, intervention procedures are a bit sluggish due to concerns of around COVID-19. The management reports that the priority going into the third quarter is to safeguard against the negative effects of COVID-19 and equipment breakdowns.

Elite Diagnostic also offers endoscopic ultrasound, the only one of its kind in the English-speaking Caribbean. On the downside, tighter restrictions as a result of the coronavirus have impacted the company’s financial performance.

On the upside, rapid expansion of Elite Diagnostic’s service offerings and geographic footprint would provide faster than anticipated growth.