Jewett-Cameron Announces 1st Quarter Financial Results

Jan 14, 2013, 17:00 ET from Jewett-Cameron Trading Company Ltd.

NORTH PLAINS, Ore., Jan. 14, 2013 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2013 ended November 30, 2012.

Sales were $9.30 million for the first quarter of fiscal 2013 compared to sales of $7.24 million for the first quarter of fiscal 2012.  For the quarter, income from operations was $772,385 compared to $162,936 in the year-ago quarter. Net income for the quarter was $480,746, or $0.31 per share, compared to net income of $64,033, or $0.03 per share, in the first quarter of fiscal 2012.

"The increase in sales for the quarter was due to successful sales efforts to increase market share of our existing products, as well as our recent introduction of new pet containment products," said CEO Done Boone.

As of November 30, the Company's cash position was $7.26 million, and currently there is no borrowing against its $5.0 million line of credit.

On August 17, 2012, the Company announced the Board of Directors had authorized a Rule 10b-18 share repurchase plan to purchase for cancellation up to 400,000 common shares. This share repurchase plan commenced on August 20, 2012 and will remain in place until March 15, 2013 but may be limited or terminated at any time without prior notice. As of November 30, 2012, the Company had repurchased no common shares under the plan.

About Jewett-Cameron Trading Company Ltd.

Jewett-Cameron Trading Company is a holding company that, through its subsidiaries, operates out of facilities located in North Plains, Oregon. Jewett-Cameron Lumber Corporation's business consists of the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers and other retailers located primarily in the United States. Greenwood Products is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries in the United States. MSI-PRO is an importer and distributor of pneumatic air tools, industrial clamps, and the Avenger Products line of sawblades and other products.  Jewett-Cameron Seed Company is a processor and distributor of agricultural seeds.

Forward-looking Statements

The information in this release contains certain forward-looking statements that anticipate future trends and events.  These statements are based on certain assumptions that may prove to be erroneous and are subject to certain risks, including but not limited to, the uncertainties of the Company's new product introductions, the risks of increased competition and technological change in the Company's industry, and other factors detailed in the Company's SEC filings.  Accordingly, actual results may differ, possibly materially, from predictions contained herein.

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

November 30,

2012

August 31,

2012

ASSETS

Current assets

  Cash

$    7,256,455

$     7,309,388

  Accounts receivable, net of allowance 

     of $0 (August 31, 2012 - $6,509)

2,666,822

3,092,842

  Inventory, net of allowance

      of $125,756 (August 31, 2012 - $139,869) (note 3)

5,761,024

7,085,389

  Note receivable

-

20,000

  Prepaid expenses

1,968,569

388,957

  Total current assets

17,652,870

17,896,576

Property, plant and equipment, net (note 4)

2,072,050

1,997,109

Intangible assets, net (note 5)

423,901

444,203

Deferred income taxes (note 6)

87,250

101,573

Total assets

$  20,236,071

$  20,439,461

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

  Accounts payable

$       828,452

$  1,577,182

  Litigation reserve (Note 12(a))

164,158

170,819

  Accrued liabilities

958,568

1,181,067

  Accrued income taxes

330,957

37,203

  Total current liabilities

2,282,135

2,966,271

Contingent liabilities and commitments (note 12)

Stockholders' equity

  Capital stock (note 8)

     Authorized

      20,000,000 common shares, without par value

      10,000,000 preferred shares, without par value

    Issued

      1,567,971 common shares (August 31, 2012 - 1,567,971)

1,479,721

1,479,721

  Additional paid-in capital

600,804

600,804

  Retained earnings

15,873,411

15,392,665

  Total stockholders' equity

17,953,936

17,473,190

  Total liabilities and stockholders' equity

$  20,236,071

$  20,439,461

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Months Ended

November 30,

2012

2011

SALES

$  9,296,405

$  7,240,610

COST OF SALES

7,305,399

5,774,415

GROSS PROFIT

1,991,006

1,466,195

OPERATING EXPENSES

  Selling, general and administrative expenses

335,820

428,348

  Depreciation and amortization

57,494

61,198

  Wages and employee benefits

825,307

813,713

1,218,621

1,303,259

Income from operations

772,385

162,936

OTHER ITEMS

Interest and other income

16,710

-

Interest expense (note 12(a))

-

(16,204)

16,710

(16,204)

Income before income taxes

789,095

146,732

Income tax expense

(308,349)

(82,699)

Net income

$     480,746

$      64,033

Basic earnings per common share

$           0.31

$          0.03

Diluted earnings per common share

$           0.31

$          0.03

Weighted average number of common shares outstanding:

  Basic

1,567,971

1,900,215

  Diluted

1,567,971

1,900,215

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Month Periods

Ended November 30,

2012

2011

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$   480,746

$      64,033

Items not involving an outlay of cash:

  Depreciation and amortization

57,494

61,198

  Deferred income taxes

14,323

752

  Interest income on litigation

(6,661)

-

Changes in non-cash working capital items:

  Decrease in accounts receivable

426,020

1,044,596

  Decrease (increase) in inventory

1,324,365

(2,677,341)

  Decrease in note receivable

20,000

-

  (Increase) in prepaid expenses

(1,579,612)

(483)

  (Decrease) increase in accounts payable and accrued liabilities

(971,229)

509,154

  Increase in accrued income taxes

293,754

81,947

Net cash provided (used) by operating activities

59,200

(916,144)

CASH FLOWS FROM INVESTING ACTIVITIES

  Purchase of property, plant and equipment

(112,133)

(12,813)

  Purchase of intangible assets and other

-

(4,550)

Net cash used in investing activities

(112,133)

(17,363)

CASH FLOWS FROM FINANCING ACTIVITIES

  Redemption of common stock

-

(454,120)

Net cash used in financing activities

-

(454,120)

Net (decrease) in cash

(52,933)

(1,387,627)

Cash, beginning of period

7,309,388

6,774,127

Cash, end of period

$  7,256,455

$  5,386,500

Contact: Don Boone, President & CEO, (503) 647-0110

SOURCE Jewett-Cameron Trading Company Ltd.



RELATED LINKS

http://www.jewettcameron.com