138% pretax gains for Jetcon

Jetcon JSE listing ceremony last year March

Pre-owned car dealer Jetcon Corporation, generated strong growth in revenues of 75 percent to end with $258.5 million in the first quarter ending March, this year compared to 55 percent growth in the same period in 2016.
The company results benefited from gains in gross margin during the quarter, from 18.5 percent to 20.7 percent and an increase of 138 percent in pretax profit, to $37.3 million versus $15.7 million in 2016. Earnings per share ended at 19 cents versus 7.5 cents last year, partially due to taxation in the first quarter in 2016 and increase in pretax profit.
The growth in revenues for the quarter is in line with the increase in the December 2016 quarter, and slightly lower than the September quarter of 86 percent increase, but well ahead of the June 2016 quarter of 39 percent, the company reported in its release of the first quarter results to the Jamaica Stock Exchange.
Cost of sales for the 2016 quarter, was adjusted upward while some items in administrative expenses were reclassified to direct cost, the net result is downwards revision to the profit, reported in our first quarter results released in 2016. There are also major changes to inventories and amounts in receivables relating to amounts paid for goods in Transit.
Inventory of motor vehicles and parts more than doubled since March 2016 and is up by $51 million since December 2016, to $292 million, a deliberate strategy to increase choice for customers and sales, Jetcon stated in their quarterly report. The company stated that sales for the period after the quarter, continue to be ahead of 2016 with an increase of 52 percent.
Jetcon traded on the Jamaica Stock Exchange at $13.25 and is up from $2.25 when it listed in March 2016.
John Jackson is a director and Chairman of Jetcon Corporation.

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