Jetcon reports a 20% increase in first quarter net profits

Date: May 17, 2018

Jetcon Corporation Limited (JETCON), for the first quarter ended March 31, 2018 reported Revenue increased 18% to total $305.94 million, up $47.38 million from the $258.57 million recorded in the prior year.

Costs of Sales amounted to $241.55 million, an increase of 18% compared to $204.87 million booked in the corresponding period for 2017. As such, Gross Profit moved from $53.70 million to $64.40 million an improvement of 20% year over year.

Jetcon recorded Other Operating Income of $44,273 for the first three months of 2018 relative to $268,101 in the prior year. As a result, Total Operating Income for the period amounted to $64.44 million relative to $53.97 million in 2017.

Total Expenses for the first quarter increase 18% year over year to $19.97 million, relative to $16.95 million. Of this, Selling & Marketing Expenses rose by 11% to $5.91 million relative to $5.34 million reported the prior year. Administrative and Other Expenses increased 34%, to $11.06 million compared to $8.22 million in March 2017.

Finance cost grew to a total of $601,910 relative to $19,866 for the prior year’s corresponding period.

Consequently, Profit before Taxation improved to a total of $44.48 million compared to $37.02 million recorded for the first quarter of 2017.

Net Profit after Tax increased 20% to $44.48 million relative to $37.02 million booked for the comparable period in 2017.

Consequently, Earnings Per Share (EPS) for the first quarter amounted to $0.08 (2017: $0.06). The twelve months Trailing Earnings Per Share amounted $0.28.The total number of shares used in this calculation were 194,500,000. Jetcon’s stock price last traded on May 17, 2018 at $4.20.

Jetcon noted, “The implementation of the pre-inspection initiative for the importation of all used cars has lengthened the delivery time for vehicles by a few weeks, but we do not expect any adverse effects on sales, as any delays in shipment is covered by current levels of inventory. There will possibly be opportunities to supply other dealers with stock, whose inventory may not be sufficient to outlast the delays.”

Balance Sheet Highlights:

The company’s assets totaled $517.92 million, 25% more than its value of $364.58 million as at March 31, 2017. Contributing to the increase in total assets were ‘Receivables’ and ‘Inventories’ which amounted to $83.46 million (2017: $12.88 million) and $335.63 million (2017: 292.20 million) respectively. The company noted that this is, “a continuing deliberate strategy to increase choice for customers and sales.”

Shareholders’ equity was $478.70 million (2017: $317.44 million), representing a book value per share of $0.82 (2017: $0.54).


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