J.S. Johnson saw its income decline by 41 percent as a result of the economic fallout caused by COVID-19, the company’s fourth quarter 2020 interim financial report explains, adding that items lost in Hurricane Dorian are taking a long time to be replaced.
Managing Director Alister McKellar said in the report that the recovery on Grand Bahama and Abaco continues at a “painfully slow” pace.
“It will be some time yet before the homes, cars, boats and businesses lost in the storm will be replaced,” said McKellar.
“Who could have imagined we would face a challenge like a global pandemic, less than one year after suffering the destruction of Hurricane Dorian?
“What was once considered fantastic material for science fiction movies before 2020, COVID-19 seems to have become modern reality around the world.”
McKellar said the slow-paced recovery post-Dorian is having negative effects on the company’s financial results. COVID-19 has “also had a significant impact” on the company’s operation, McKellar said, explaining that the company’s total income declined as a result of lockdowns and the growth in unemployment.
“Thanks to a series of proactive measures to reduce our key operational costs, we managed to mitigate much of the income decline and to date, have not needed to take further drastic measures,” he said.
“We actually reported a slight gain of some six percent in consolidated results over 2019. However, that figure is somewhat misleading, as it was influenced largely by a 68 percent decrease in Hurricane Dorian expenses from $4.8 million to $1.5 million. Coupled with a zero-storm 2020 hurricane season, our underwriting division realized a $2,214,878 increase in net income.”
He added that on the agency side, net profits decreased 33 percent, while net revenue from sales took a 14 percent hit due to the pandemic.
McKellar called the depressed and changed climate a short-term inconvenience.
“We returned to normal operating hours in January 2021 and have taken all necessary preventative measures to ensure the safety of both our customers and staff,” he said.
“I sincerely appreciate the patience our customers have shown, as we all try our best to adjust to a new way of doing business.”