JEMTEC INC. TSX-V: JTC
VANCOUVER BC, Nov. 27, 2020 /CNW/ - JEMTEC Inc. (TSX-V: JTC)
(the "Company") is pleased to provide an update on its financial
performance for the year ended July 31,
2020. The following results show the Company continues to
improve it's financial strength, with no debt, strong liquidity and
net worth.
2020 Y/E Revenues
Revenues have increased by 2.0% to
$2,367,179 during the year ended
July 31, 2020 compared to
$2,330,206 for the year ended
July 31, 2019 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.
2020 Y/E Expenses
During the year ended July 31, 2020, total pre-income tax expenses
remained consistent at $1,788,449
compared to $1,771,996 for the year
ended July 31, 2019 while
experiencing fluctuations in depreciation, equipment rent and
installation, monitoring and activation fees, salaries and benefits
and share-based payments.
2020 Y/E Income Tax
For the fiscal year ended
July 31, 2020, the Company recognized
a current income tax expense of $170,000 (2019 - $68,000). The increase in income tax is primarily
due to the non-capital loss fully utilized in the fiscal year of
2019. The current income tax expense was related to income tax in
Canada.
2020 Y/E Net Income
For the year ended July 31, 2020, the Company recorded a net income
of $408,730, compared to a net income
of $490,210 during the year ended
July 31, 2019. This decrease in net
income is primarily due to the increase in income tax.
2020 Y/E Liquidity
At July 31,
2020, the Company had cash and cash equivalents of
$2,093,645 and working capital of
$1,905,806. All cash and cash
equivalents are on deposit with a Schedule I bank in Canada in current or interest accruing
accounts.
Dividend Paid in 2020
On January 8, 2020, the Company declared a one-time
special dividend in the aggregate amount of $679,219 ($0.25 per
share) payable to the holders of the issued and outstanding common
shares in the capital of the Company. The dividend was payable on
or after January 8, 2020 to the
shareholders of record of the Company as of January 17, 2020 and distribution of the dividend
to shareholders took place on February 10,
2020.
Eric Caton, President and CEO
said, "We are pleased with the Y/E results which we believe stem
from our flexible business model and form a solid basis for future
growth". 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.
