NORTH PLAINS, Ore., Nov. 18 /PRNewswire-FirstCall/ -- Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF; TSX: JCT) today reported financial results for its fourth quarter and fiscal year ended August 31, 2009.

For the fiscal year ended August 31, 2009 Jewett-Cameron reported sales of $42.13 million compared to $64.32 million fiscal year ended August 31, 2008. Net income for fiscal 2009 was $1,582,477 or $0.66 per diluted share compared to net income of $2,610,134 or $1.09 per diluted share in the same period a year ago.

Sales for the fourth quarter of fiscal 2009 totaled $10.6 million compared to sales of $17.3 million for the fourth quarter of fiscal 2008. The company reported net income of $549,335 or $0.23 per diluted share compared to net income of $762,645 or $0.32 per diluted share in the same period a year ago.

"Our fiscal 2009 sales were down about 34.5% from the prior year, which primarily reflects the ongoing weakness in industrial wood sales to pleasure boat manufacturers," said CEO Don Boone. "Excluding our Greenwood industrial wood products segment, overall sales declined by 15.6%, as the weak economy and housing market in the United States reduced overall demand for our products. However, due to effective cost controls and healthy demand for our specialty metal products, we have been able to maintain our gross margins and strong balance sheet."

As of August 31, the Company's cash position was $6.8 million. Jewett-Cameron's financial position continues to be strong, and currently has no borrowing against its $5.0 million line of credit. Management is exploring possible uses for its cash to increase shareholder value, which may include a common share repurchase program for a portion of its currently outstanding common shares.

About Jewett-Cameron Trading Company Ltd.

Jewett-Cameron Trading Company is a holding company that operates through subsidiary companies as follows. Jewett-Cameron Lumber Corporation's business consists of warehouse distribution and direct sales of wood products and specialty metal products to home centers and other retailers. Greenwood Products is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries. 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.

                                                         2009         2008
                                                         ----         ----
    ASSETS

    Current assets
      Cash and cash equivalents                       $6,828,571   $5,758,479
      Accounts receivable, net of allowance
       of $3,816 (August 31, 2008 - $10,474)           3,603,916    5,405,861
      Inventory, net of allowance of $313,000
       (August 31, 2008 - $100,000) (note 3)           6,954,811    8,068,284
      Note receivable                                     41,500            -
      Prepaid expenses                                   160,809      138,957
      Prepaid income taxes                                43,805       13,753
                                                          ------       ------

      Total current assets                            17,633,412   19,385,334

    Property, plant and equipment, net (note 4)        1,872,191    1,861,652

    Intangible assets, net (note 5)                      662,045      740,382

    Deferred income taxes (note 6)                       261,780      192,870
                                                         -------      -------

    Total assets                                     $20,429,428  $22,180,238

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities
      Accounts payable                                  $999,562   $1,585,844
      Accrued liabilities                                816,960    1,245,154
      Current portion of promissory note and note
       payable                                                 -      367,807
                                                             ---      -------

      Total current liabilities                        1,816,522    3,198,805

    Long term liabilities
      Promissory note (note 8)                                 -    1,951,004
                                                             ---    ---------

    Total liabilities                                  1,816,522    5,149,809
                                                       ---------    ---------
    Contingent liabilities and commitments (note 13)

    Stockholders' equity
      Capital stock (note 9)
        Authorized
          20,000,000 common shares, without par value
          10,000,000 preferred shares, without par
           value
        Issued
          2,390,977 common shares (August 31,
           2008 - 2,390,977)                           2,256,112    2,256,112
      Additional paid-in capital                         600,804      600,804
      Retained earnings                               15,755,990   14,173,513
                                                      ----------   ----------

      Total stockholders' equity                      18,612,906   17,030,429
                                                      ----------   ----------

      Total liabilities and stockholders' equity     $20,429,428  $22,180,238
      ==========================================     ===========  ===========

                                                         2009         2008
                                                         ----         ----

    SALES                                            $42,130,097  $64,321,034

    COST OF SALES                                     33,228,338   52,932,232
                                                      ----------   ----------

    GROSS PROFIT                                       8,901,759   11,388,802

    OPERATING EXPENSES
      Selling, general and administrative              2,182,143    2,166,535
      Depreciation and amortization                      316,964      313,561
      Wages and employee benefits                      3,743,847    4,535,823
                                                       ---------    ---------

                                                       6,242,954    7,015,919
                                                       ---------    ---------

    Income from operations                             2,658,805    4,372,883

    OTHER ITEMS
      Gain on sale of property, plant and equipment        2,850       16,115
      Interest and other income                            5,445        7,571
      Interest expense                                   (43,363)    (189,627)
                                                         -------     --------
                                                         (35,068)    (165,941)
                                                         -------     --------

    Income before income taxes                         2,623,737    4,206,942

    Income taxes (note 6)
      Current                                          1,041,260    1,669,978
      Deferred  (recovered)                                    -      (73,170)
                                                             ---      -------

                                                       1,041,260    1,596,808
                                                       ---------    ---------


    Net income for the year                           $1,582,477   $2,610,134

    Basic earnings per common share                        $0.66        $1.09

    Diluted earnings per common share                      $0.66        $1.09

    Weighted average number of common shares
     outstanding:
      Basic                                            2,390,977    2,390,284
      Diluted                                          2,390,977    2,391,004
      =======                                          =========    =========

                                                          2009         2008
                                                          ----         ----

    CASH FLOWS FROM OPERATING ACTIVITIES
      Net income                                      $1,582,477   $2,610,134
      Items not affecting cash:
        Depreciation and amortization                    316,964      313,561
        Gain on sale of property, plant and equipment     (2,850)     (16,115)
        Deferred income taxes                            (68,910)     (73,170)

      Changes in non-cash working capital items:
        Decrease in accounts receivable                1,801,945    1,039,423
        Increase in note receivable                      (41,500)           -
        Decrease in inventory                          1,113,473    2,810,259
        (Increase) decrease in prepaid expenses          (21,852)      63,198
        Decrease in accounts payable and accrued
         liabilities                                  (1,014,476)    (699,663)
        Decrease in accrued income taxes                 (30,052)    (187,510)
                                                         -------     --------

      Net cash provided by operating activities        3,635,219    5,860,117

    CASH FLOWS FROM INVESTING ACTIVITIES
      Proceeds on sale of property, plant and
       equipment                                           2,850       16,500
      Purchase of property, plant and equipment         (249,166)     (63,582)
      Purchase of intangible assets and other                  -       (3,595)
                                                             ---       ------

      Net cash used in investing activities             (246,316)     (50,677)

    CASH FLOWS FROM FINANCING ACTIVITIES
      Repayment of bank indebtedness                           -       (1,059)
      Issuance of capital stock for cash                       -       56,098
      Repayment of notes payable                        (300,000)    (300,000)
      Promissory note                                 (2,018,811)     (63,131)
                                                      ----------      -------

      Net cash used in financing activities           (2,318,811)    (308,092)

    Net increase in cash and cash equivalents          1,070,092    5,501,348

    Cash and cash equivalents, beginning of year       5,758,479      257,131
                                                       ---------      -------

    Cash and cash equivalents, end of year            $6,828,571   $5,758,479
    ======================================            ==========   ==========

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

SOURCE Jewett-Cameron Trading Company Ltd.

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