TSX-V: JTC
VANCOUVER, March 30, 2020 /CNW/ - JEMTEC Inc. (TSX-V: JTC)
(the "Company") is pleased to provide an update on its Second
Quarter performance for the period
ended January 31, 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 January
31, 2020, $Nil of the dividend declared had been paid and
$679,219 is recorded in accounts
payable and accrued liabilities.
Subsequent New Agreements and Extensions
On
March 18, 2020, PWGSC confirmed that
JEMTEC won the Correctional Services Canada (CSC) RFP which will
result in a five duration if CSC selects all its options of one
year plus up to four additional one year extensions are exercised.
On March 13, 2020, Saskatchewan which has a three year plus one
year plus one year confirmed the current agreement was
extended for first one year, from April 1,
2020 to March 31, 2021.
Q2 Revenues and Expenses
Revenues have remained
consistent during the quarter ended January
31, 2020 compared to the quarter ended January 31, 2019 while Expenses increased by 2%
compared to 2019.
Q2 Income Tax
For the quarter ended January 31, 2020, the Company recognized a
provision for income tax expense of $45,000 (2019 - $Nil). The current income tax
expense was related to income tax in Canada.
Q2 Net Income
For the quarter ended January 31, 2020, the Company recorded a net
income of $94,871, compared to a net
income of $146,073 during the quarter
ended January 31, 2019. This decrease
in net income is primarily due to the increase in the income tax
provision.
Q2 Liquidity
At January 31,
2020, the Company had cash and cash equivalents of
$2,364,488 and working capital of
$1,665,490. 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 Q2 results and new and extended
agreements and we see a profitable and stable path ahead with the
Company well positioned to increase its 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.