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.
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.
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