Jewett-Cameron Announces Fiscal 2015 Financial Results

06 Nov, 2015, 16:20 ET from Jewett-Cameron Trading Company Ltd.

NORTH PLAINS, Ore., Nov. 6, 2015 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2015.

For the fiscal year ended August 31, 2015 Jewett-Cameron reported net income of $1,773,971, or $0.69 per share, on sales of $42.24 million, compared to net income of $1,858,453, or $0.63 per diluted share, on sales of $42.34 million, reported for fiscal 2014.

Sales for the fourth quarter of fiscal 2015 totaled $11.5 million compared to sales of $9.3 million for the fourth quarter of fiscal 2014. Net income was $701,524, or $0.27 per diluted share, compared to net income of $352,147, or $0.12 per diluted share, in the fourth quarter of fiscal 2014.

"The extended winter weather across much of the US in 2015 slowed the buying of lawn and garden products and adversely affected our results. The West Coast port slowdowns also delayed the delivery of our products from manufacturers and resulted in sales order delays and higher freight costs" said CEO Don Boone. "However, we launched several new products beginning in the 3rd quarter which were well received by the marketplace, particularly by our established customer base".

As of August 31, 2015, the Company's cash position was $4.4 million, and currently there is no borrowing against its $3.0 million line of credit. During fiscal 2015, the Company repurchased and cancelled a total of 227,798 common shares at a total cost of $2,448,542, which represents an average price of $10.75. The Company's most recent share repurchase plan was terminated by the Board of Directors on July 17, 2015. The Board of Directors will consider implementing new share repurchase plans in the future as an effective use of the Company's cash position.

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. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

AS OF AUGUST 31

2015

2014

ASSETS

Current assets

  Cash

$  4,416,297

$   4,327,540

  Accounts receivable, net of allowance of $Nil (August 31, 2014 - $Nil)

3,688,247

2,442,928

  Inventory, net of allowance of $120,824 (August 31, 2014 - $111,756)

8,351,575

9,154,129

  Note receivable

1,310

15,000

  Prepaid expenses

719,459

762,533

  Prepaid income taxes

26,570

546,347

  Total current assets

17,203,458

17,248,477

Property, plant and equipment, net

2,231,711

2,147,387

Intangible assets, net

223,250

295,956

Total assets

$  19,658,419

$  19,691,820

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

  Accounts payable

$  984,955

$    240,825

  Litigation reserve

90,671

117,387

  Accrued liabilities

1,024,358

1,073,930

  Total current liabilities

2,099,984

1,432,142

Deferred tax liability

34,300

60,972

Total liabilities

2,134,284

1,493,114

Contingent liabilities and commitments

Stockholders' equity

  Capital stock

     Authorized

      21,567,564 common shares, without par value

      10,000,000 preferred shares, without par value

    Issued

      2,476,832 common shares (August 31, 2014 – 2,704,630)

1,168,712

1,276,201

  Additional paid-in capital

600,804

600,804

  Retained earnings

15,754,619

16,321,701

  Total stockholders' equity

17,524,135

18,198,706

  Total liabilities and stockholders' equity

$  19,658,419

$  19,691,820

 

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31

2015

2014

SALES

$ 42,238,151

$ 42,339,563

COST OF SALES

33,821,114

33,961,367

GROSS PROFIT

8,417,037

8,378,196

OPERATING EXPENSES

Selling, general and administrative

1,814,899

1,700,030

Depreciation and amortization

281,762

276,340

Wages and employee benefits

3,396,793

3,317,228

5,493,454

5,293,598

Income from operations

2,923,583

3,084,598

OTHER ITEMS

Gain on sale of property, plant and equipment

-

3,546

Interest and other income

31,993

27,086

31,993

30,632

Income before income taxes

2,955,576

3,115,230

Income taxes

Current

1,208,277

1,246,198

Deferred

(26,672)

10,579

Net income for the year

1,773,971

1,858,453

Basic earnings per common share

$ 0.69

$ 0.63

Diluted earnings per common share

$ 0.69

$ 0.63

Weighted average number of common shares outstanding:

Basic

2,581,850

2,968,220

Diluted

2,581,850

2,968,220

 

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31

2015

2014

CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the year

$  1,773,971

$  1,858,453

Items not affecting cash:

                Depreciation and amortization

281,762

276,340

                Gain on sale of property, plant and equipment

-

(3,546)

                Deferred income taxes

(26,672)

10,579

                Interest income on litigation

(26,716)

(26,716)

Changes in non-cash working capital items:

Decrease (increase) in accounts receivable

(1,245,319)

901,849

Decrease in note receivable

13,690

-

Decrease (increase) in inventory

802,554

(633,138)

Decrease (increase) in prepaid expenses

43,074

(174,924)

Decrease (increase) in prepaid income taxes

519,777

(275,924)

Increase (decrease) in accounts payable and accrued liabilities

694,558

(1,550,585)

Net cash provided by operating activities

2,830,679

382,388

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds on sale of property, plant and equipment

-

4,800

Purchase of property, plant and equipment

(293,380)

(110,325)

Net cash used in investing activities

(293,380)

(105,525)

CASH FLOWS FROM FINANCING ACTIVITIES

Redemption of common stock

(2,448,542)

(4,257,768)

                Net cash used in financing activities

(2,448,542)

(4,257,768)

Net increase (decrease) in cash

88,757

(3,980,905)

Cash, beginning of year

4,327,540

8,308,445

Cash, end of year

4,416,297

$  4,327,540

 

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

 

SOURCE Jewett-Cameron Trading Company Ltd.



RELATED LINKS

http://www.jewettcameron.com