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.
Q3 Liquidity
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.
FORWARD-LOOKING STATEMENTS
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.