JEMTEC INC. TSX-V: JTC
VANCOUVER, BC, June 29, 2020 /CNW/ - JEMTEC Inc. (TSXV: JTC) (the "Company") is pleased to provide an update on its Third Quarter performance for the period ended April 30, 2020 and the Companies improving financial situation, with no debt, strong liquidity and net worth.
One Time Dividend
On January 8, 2020, the Company announced that the board of directors approved the payment of a onetime special dividend of $0.25 per common share (the "Special Dividend"). The Special Dividend was payable to shareholders of record as of the close of business on January 17, 2020, resulting in a dividend declaration of $679,219. As of April 30, 2020, the dividend declared had been paid.
Q3 Revenues and Expenses
Revenues have increased by 2% during the quarter ended April 30, 2020 compared to the quarter ended April 30, 2019 due to an increase in revenues from CSC. The Company earned revenues on its agreements with the Provinces of Saskatchewan, Nova Scotia, Ontario and Correctional Service Canada, as well the Company earned revenues from private bail clients by presenting the release plans for court cases. Expenses increased by 8% compared to 2019 due mainly to different equipment mix and foreign exchange.
Q3 Income Tax
For the quarter ended April 30, 2020, the Company recognized a provision for income tax expense of $35,000 (2019 - $Nil). The current income tax expense was related to income tax in Canada.
Q3 Net Income
For the quarter ended April 30, 2020, the Company recorded a net income of $86,847, compared to a net income of $142,929 during the quarter ended April 30, 2019. This decrease in net income is primarily due to the increase in the income tax provision.
At April 30, 2020, the Company had cash and cash equivalents of $1,869,932 and working capital of $1,781,414. All cash and cash equivalents are on deposit with a Schedule I bank in Canada in current or interest accruing accounts.
Eric Caton, President and CEO said, "We are pleased with the Q3 results and the new and extended agreements are up and working well, we see a profitable and stable path ahead with the Company well positioned to grow its core business and increase market share. "Jemtec has provided a full spectrum of monitoring technologies and services to provincial and federal correctional and border services across Canada since 1987 and in doing so has built a reputation for offering the best technological solutions and support for use in this demanding environment.
This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward - looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Jemtec Inc.
For further information: Eric Caton, President Phone (877) 929-4559, Fax (877) 929-4198, www.jemtec.ca