Jewett-Cameron Announces 2nd Quarter Financial Results
NORTH PLAINS, Ore., April 13, 2015 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2015 ended February 28, 2015.
Sales for the second quarter of fiscal 2015 totaled $9.5 million compared to sales of $9.7 million for the second quarter of fiscal 2014. Income from operations was $466,704 compared to income of $408,818 for the quarter ended February 28, 2014. Net income was $283,560, or $0.11 per share, compared to net income of $237,398, or $0.08 per share, in the year-ago quarter.
For the six months ended February 28, 2015, sales totaled $17.5 million compared to sales of $17.7 million for the six months ended February 28, 2014. Net income was $611,347, or $0.23 per share, compared to net income of $569,977, or $0.18 per share, in the first six months of fiscal 2014.
"During the second quarter, we experienced delays in receiving certain products from our suppliers due to the West Coast port slowdowns", said CEO Don Boone. "These delays resulted in higher freight costs and, combined with the prolonged winter weather across much of the country, delayed many shipments to our customers."
These delays also resulted in higher inventory levels and a lower cash balance at the end of the period. As of February 28, 2015, the Company's cash position was $12 thousand, and there was $875 thousand borrowed against its $1.0 million line of credit. Subsequent to the end of the period, the Company increased the size of its line of credit to $3.0 million.
On February 17, 2015, the Company implemented a new share repurchase plan to purchase for cancellation up to 300,000 common shares under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934. This amount represents approximately 11.6% of the 2,585,661 common shares outstanding. During the second quarter, no common shares were repurchased. Subsequent to the end of the period, during the month of March 2015, the Company repurchased 1,103 common shares under the Plan. The total cost was $11,406 at an average share price of $10.34 per share. The Plan will remain in place until August 14, 2015 but may be limited or terminated at any time without prior notice.
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 Company'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. JC USA provides professional and administrative services, including accounting and credit services, to its subsidiary companies.
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) |
|||
February 28, |
August 31, |
||
ASSETS |
|||
Current assets |
|||
Cash |
$ 12,193 |
$ 4,327,540 |
|
Accounts receivable, net of allowance of $Nil (August 31, 2014 - $Nil) |
5,034,076 |
2,442,928 |
|
Inventory, net of allowance of $90,384 (August 31, 2014 - $111,756) (note 3) |
11,102,996 |
9,154,129 |
|
Note receivable |
1,700 |
15,000 |
|
Prepaid expenses |
825,437 |
762,533 |
|
Prepaid income taxes |
214,617 |
546,347 |
|
Total current assets |
17,191,019 |
17,248,477 |
|
Property, plant and equipment, net (note 4) |
2,058,754 |
2,147,387 |
|
Intangible assets, net (note 5) |
259,603 |
295,956 |
|
Total assets |
$ 19,509,376 |
$ 19,691,820 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities |
|||
Bank Indebtedness (note 7) |
$ 875,386 |
$ - |
|
Accounts payable |
189,777 |
240,825 |
|
Litigation reserve (note 13(a)) |
104,138 |
117,387 |
|
Accrued liabilities |
764,236 |
1,073,930 |
|
Total current liabilities |
1,933,537 |
1,432,142 |
|
Deferred tax liability (note 6) |
58,263 |
60,972 |
|
Total liabilities |
1,991,800 |
1,493,114 |
|
Contingent liabilities and commitments (note 13) |
|||
Stockholders' equity |
|||
Capital stock (note 8) |
|||
Authorized |
|||
21,567,564 common shares, without par value |
|||
10,000,000 preferred shares, without par value |
|||
Issued |
|||
2,585,661 common shares (August 31, 2014 – 2,704,630) |
1,220,064 |
1,276,201 |
|
Additional paid-in capital |
600,804 |
600,804 |
|
Retained earnings |
15,696,708 |
16,321,701 |
|
Total stockholders' equity |
17,517,576 |
18,198,706 |
|
Total liabilities and stockholders' equity |
$ 19,509,376 |
$ 19,691,820 |
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
|||||||
Three Month |
Six Month |
||||||
2015 |
2014 |
2015 |
2014 |
||||
SALES |
$ 9,483,404 |
$ 9,732,649 |
$ 17,466,021 |
$17,738,930 |
|||
COST OF SALES |
7,581,284 |
7,974,979 |
13,693,878 |
14,131,481 |
|||
GROSS PROFIT |
1,902,120 |
1,757,670 |
3,772,143 |
3,607,449 |
|||
OPERATING EXPENSES |
|||||||
Selling, general and administrative expenses |
511,375 |
446,900 |
972,823 |
838,786 |
|||
Depreciation and amortization |
70,600 |
69,531 |
139,683 |
139,550 |
|||
Wages and employee benefits |
853,441 |
832,421 |
1,663,034 |
1,676,371 |
|||
1,435,416 |
1,348,852 |
2,775,540 |
2,654,707 |
||||
Income from operations |
466,704 |
408,818 |
996,603 |
952,742 |
|||
OTHER ITEMS |
|||||||
Gain on sale of property, plant and equipment |
- |
- |
- |
4,109 |
|||
Interest and other income |
7,188 |
6,612 |
14,083 |
13,273 |
|||
7,188 |
6,612 |
14,083 |
17,382 |
||||
Income before income taxes |
473,892 |
415,430 |
1,010,686 |
970,124 |
|||
Income tax expense |
(190,332) |
(178,032) |
(399,339) |
(400,147) |
|||
Net income |
$ 283,560 |
$ 237,398 |
$ 611,347 |
$ 569,977 |
|||
Basic earnings per common share |
$ 0.11 |
$ 0.08 |
$ 0.23 |
$ 0.18 |
|||
Diluted earnings per common share |
$ 0.11 |
$ 0.08 |
$ 0.23 |
$ 0.18 |
|||
Weighted average number of common shares outstanding: |
|||||||
Basic |
2,585,661 |
3,129,764 |
2,637,587 |
3,132,365 |
|||
Diluted |
2,585,661 |
3,129,764 |
2,637,587 |
3,132,365 |
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
|||||||
Three Month |
Six Month |
||||||
2015 |
2014 |
2015 |
2014 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||||
Net income |
$ 283,560 |
$ 237,398 |
$ 611,347 |
$ 569,977 |
|||
Items not involving an outlay of cash: |
|||||||
Depreciation and amortization |
70,600 |
69,531 |
139,683 |
139,550 |
|||
Gain on sale of property, plant and equipment |
- |
- |
- |
(4,109) |
|||
Deferred income taxes |
(6,426) |
(3,802) |
(2,709) |
(8,366) |
|||
Interest income on litigation |
(6,588) |
(6,588) |
(13,249) |
(13,249) |
|||
Changes in non-cash working capital items: |
|||||||
Increase in accounts receivable |
(2,313,462) |
(2,018,552) |
(2,591,148) |
(911,509) |
|||
(Increase) decrease in inventory |
(358,245) |
846,025 |
(1,948,867) |
992,265 |
|||
(Increase) decrease in note receivable |
(1,700) |
- |
13,300 |
15,000 |
|||
Increase in prepaid expenses |
(255,461) |
(1,205,662) |
(62,904) |
(1,501,225) |
|||
(Increase) decrease in prepaid income taxes |
126,559 |
(448,288) |
331,730 |
(221,609) |
|||
Increase (decrease) in accounts payable and accrued liabilities |
(373,590) |
837,196 |
(360,742) |
(908,722) |
|||
Net cash used in operating activities |
(2,834,753) |
(1,692,742) |
(3,883,559) |
(1,851,997) |
|||
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||||
Purchase of property, plant and equipment |
(13,417) |
(17,457) |
(14,697) |
(75,375) |
|||
Proceeds from sale of property, plant and equipment |
- |
- |
- |
4,800 |
|||
Net cash used in investing activities |
(13,417) |
(17,457) |
(14,697) |
(70,575) |
|||
CASH FLOWS FROM FINANCING ACTIVITIES |
|||||||
Proceeds from bank indebtedness |
875,386 |
- |
875,386 |
- |
|||
Redemption of common stock |
- |
(569,019) |
(1,292,477) |
(569,019) |
|||
Net cash provided by (used in) financing activities |
875,386 |
(569,019) |
(417,091) |
(569,019) |
|||
Net decrease in cash |
(1,972,784) |
(2,279,218) |
(4,315,347) |
(2,491,591) |
|||
Cash, beginning of period |
1,984,977 |
8,096,072 |
4,327,540 |
8,308,445 |
|||
Cash, end of period |
$ 12,193 |
$ 5,816,854 |
$ 12,193 |
$ 5,816,854 |
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
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