JEMTEC INC.
TSX-V: JTC
VANCOUVER, March 30, 2021 /CNW/ - JEMTEC Inc. (TSXV: JTC)
(the "Company") is pleased to provide an update on its Second
Quarter performance for the period ended January 31, 2021 and the Companies improving
financial situation, with no debt, strong liquidity and net
worth.
Q2 Revenues
Revenues have increased by 9% during
the quarter ended January 31, 2021
compared to the quarter ended January 31,
2020 primarily due to increased revenues from CSC. The
Company earned revenues on its agreements with the Provinces of
Saskatchewan, Nova Scotia as well as the CSC and SOLGEN. The
Company also earned revenues from private bail clients by
presenting the release plans for court cases.
Q2 Expenses
During the quarter ended
January 31, 2021, expenses decreased
by 1% compared to the quarter ended January
31, 2020 primarily due to the fluctuations in depreciation,
equipment rent and installation, monitoring and activation fees,
office, professional fees, repairs and maintenance and travel.
Q2 Income Tax
For the quarter ended
January 31, 2021, the Company
recognized a provision for income tax expense of $45,000 (January 31,
2020 - $45,000). The current
income tax expense was related to income tax in Canada.
Q2 Net Income
For the quarter ended
January 31, 2021, the Company
recorded a 57% increase in net income of $149,396 compared to a net income of $94,871 during the quarter ended January 31, 2020. This increase in net income is
associated with the increase in monitoring and activation revenue
and decrease in depreciation expense.
Q2 Liquidity
At January 31, 2021, the
Company had cash and cash equivalents of $2,214,370 and working capital of
$1,536,037. 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 very pleased with the Q 2 results and 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.