$2.1-m net loss for Elite Diagnostic's Q3

$2.1-m net loss for Elite Diagnostic's Q3

...expects COVID-19 to continue to affect profitability

Business reporter

Friday, May 29, 2020

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HEALTH service company Elite Diagnostic Limited reported on Friday last an unaudited net loss of $2.1 million for its third quarter ended March 31, 2020, following a net profit of $16 million recorded in the previous corresponding quarter.

This loss, according to company Director Warren Chung, is attributed to the breakdown of equipment breaking at the Kingston and St Ann locations, and the impact of the COVID-19 outbreak towards the end of the third quarter.

“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 underperformed due to the breakdown of CT and MRI,” Chung stated in the company's report to its shareholders.

He added that the company continues to have challenges with getting the two machines operational.

The Drax Hall location in St Ann, which opened in September 2019, is the company's third and offers MRIs, CT scans, ultrasounds and X-rays, along with doctor's offices. Elite Diagnostic's other two locations are on Holborn Road and in Liguanea in Kingston.

Revenues for the three-month period amounted to $111.4 million, a 4.1 per cent increase when compared to $107 million recorded in the previous corresponding quarter..

According to Chung, the company expects performance to be negatively impacted by COVID-19 for the upcoming quarters. It has, however “taken prudent steps to mitigate the risk of COVID-19 on our staff and patients”.

Total assets stood at $687.3 million for the quarter under review, while total liabilities were $217 million.

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