J.S. Johnson reports 27 percent decline in net income

J.S. Johnson’s third quarter financial statement revealed that the company saw a decline of 27 percent in its net income from $5.3 million to $3.9 million, owing partly to the effects of the competent authority’s emergency orders to stem the spread of the COVID-19 in The Bahamas.

In the statement, J.S. Johnson Managing Director Alister McKellar explained that the company reduced its expenses by seven percent in the review period.

“Financially, third quarter results were in line with our expectations,” McKellar said.

“The pandemic has had a negative impact on operating results throughout the company. The one positive to date has been the absence of a major weather event impacting our islands.

“Our agency division saw lower net revenue from business loss, that translated into a decline in net income of some 27 percent from $5,366,902 to $3,912,803. In part, some of this reduction was due to the restrictions imposed by the various emergency orders and there may be some return as these are eased.

“From our underwriting division there was a gradual normalization in insurance expenses after the significant negative impact of claims stemming from Hurricane Dorian last year.”

McKellar also said in his review that “Irregular revenue streams during the year-to-date resulted in a $792,655 swing in net revenue from contracts with customers but should stabilize in the final quarter.”

The company also recognized a dip in its investment portfolio results because of the struggling local economy, going from a $56,072 gain in 2019 to a $440,200 loss to date.

McKellar said the company has been improving its office facilities to combat the spread of COVID-19 and keep customers safe as the COVID-19 threat continues.

“We have been steadily improving our office environment to help battle the spread of COVID-19, with wall hand sanitizers, temperature checks, regular wipe downs and cleaning and a social distancing regime,” he said.

“We want to assure our customers and visitors that we take your health and safety seriously and that we remain committed to serving you as we maneuver through ever-developing COVID-19 prevention directives. To comply with government-mandated protocols, we’ve also separated staff members into two teams, with separate in-office days each week.”

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