Jewett-Cameron Announces 1st Quarter Financial Results
NORTH PLAINS, Ore., Jan. 13, 2011 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF; TSX: JCT) today reported financial results for the first quarter of fiscal 2011 ended November 30, 2010.
Sales for the first quarter of fiscal 2011 totaled $6.08 million compared to sales of $7.37 million for the first quarter of fiscal 2010. For the quarter, income from operations was $78,694 compared to $133,900 in the year-ago quarter. Due to a litigation reserve of ($1,579,125), the Company reported a net loss of ($846,335), or ($0.37) per share, compared to net income of $72,630, or $0.03 per diluted share in last year's first quarter.
"The litigation loss eclipsed what was an otherwise profitable first quarter," said CEO Don Boone. "Each of our operating companies continue to execute on their business plans, and contributed a combined $1.4 million in additional cash from operating activities during the quarter. At this time, we believe the best utilization of our large cash position is to continue our Company's share re-purchase program."
As of November 30, the Company's cash position was $7.66 million, and currently there is no borrowing against its $5.0 million line of credit. In the first quarter of fiscal 2011, the Company re-purchased and cancelled a total of 297,072 shares. The total cost was $2,450,844 at an average share price of $8.25 per share. These purchases were in addition to the 79,040 common shares repurchased and cancelled in the fourth quarter of fiscal 2010. Today, the Company announced a new share re-purchase plan where it can repurchase up to 350,000 common shares representing approximately 17% of the approximately 2.0 million common shares outstanding. This share repurchase plan may commence on January 24, 2011 and will remain in place until May 6, 2011, 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 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) |
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November 30, 2010 |
August 31, 2010 |
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ASSETS |
||||
Current assets |
||||
Cash and cash equivalents |
$ 7,660,319 |
$ 8,710,314 |
||
Accounts receivable, net of allowance of $20,697 (August 31, 2010 - $17,593) |
1,760,058 |
3,874,114 |
||
Inventory, net of allowance of $213,570 (August 31, 2010 - $221,200) (note 3) |
6,752,596 |
6,265,782 |
||
Note receivable |
41,500 |
41,500 |
||
Prepaid expenses |
144,280 |
56,696 |
||
Prepaid income taxes |
414,896 |
- |
||
Total current assets |
16,773,649 |
18,948,406 |
||
Property, plant and equipment, net (note 4) |
1,913,369 |
1,926,031 |
||
Intangible assets, net (note 5) |
566,978 |
585,714 |
||
Deferred income taxes (note 6) |
199,176 |
198,582 |
||
Total assets |
$ 19,453,172 |
$ 21,658,733 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current liabilities |
||||
Accounts payable |
$ 665,982 |
$ 465,165 |
||
Litigation reserve (note 12(a)) |
1,579,125 |
- |
||
Accrued liabilities |
458,675 |
1,138,866 |
||
Accrued income taxes |
- |
8,133 |
||
Total current liabilities |
2,703,782 |
1,612,164 |
||
Contingent liabilities and commitments (note 12) |
||||
Stockholders' equity |
||||
Capital stock (note 8) |
||||
Authorized |
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20,000,000 common shares, without par value |
||||
10,000,000 preferred shares, without par value |
||||
Issued |
||||
2,014,865 common shares (August 31, 2010 - 2,311,937) |
1,901,462 |
2,181,814 |
||
Additional paid-in capital |
600,804 |
600,804 |
||
Retained earnings |
14,247,124 |
17,263,951 |
||
Total stockholders' equity |
16,749,390 |
20,046,569 |
||
Total liabilities and stockholders' equity |
$ 19,453,172 |
$ 21,658,733 |
||
JEWETT-CAMERON TRADING COMPANY LTD. STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
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Three Month Periods Ended November 30, |
||||
2010 |
2009 |
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SALES |
$ 6,085,051 |
$ 7,374,926 |
||
COST OF SALES |
4,639,257 |
5,759,328 |
||
GROSS PROFIT |
1,445,794 |
1,615,598 |
||
OPERATING EXPENSES |
||||
Selling, general and administrative expenses |
480,184 |
540,715 |
||
Depreciation and amortization |
65,377 |
60,696 |
||
Wages and employee benefits |
821,539 |
880,287 |
||
1,367,100 |
1,481,698 |
|||
Income from operations |
78,694 |
133,900 |
||
OTHER ITEMS |
||||
Gain on sale of property, plant and equipment |
5,450 |
- |
||
Interest and other income |
23 |
1,760 |
||
Interest expense (note 12(a)) |
(391,988) |
- |
||
Litigation reserves (note 12(a)) |
(962,137) |
- |
||
(1,348,652) |
1,760 |
|||
Income (loss) before income taxes |
(1,269,958) |
135,660 |
||
Income tax (expense) recovery |
423,623 |
(63,030) |
||
Net income (loss) |
$ (846,335) |
$ 72,630 |
||
Basic earnings (loss) per common share |
$ (0.37) |
$ .03 |
||
Diluted earnings (loss) per common share |
$ (0.37) |
$ .03 |
||
Weighted average number of common shares outstanding: |
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Basic |
2,308,672 |
2,390,977 |
||
Diluted |
2,308,672 |
2,390,977 |
||
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, |
||||
2010 |
2009 |
|||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||
Net income (loss) |
$ (846,335) |
$ 72,630 |
||
Items not involving an outlay of cash: |
||||
Depreciation and amortization |
65,377 |
60,696 |
||
Gain on sale of property, plant and equipment |
(5,450) |
- |
||
Deferred income taxes |
(594) |
129,680 |
||
Changes in non-cash working capital items: |
||||
Decrease in accounts receivable |
2,114,056 |
1,390,869 |
||
(Increase) decrease in inventory |
(486,814) |
149,420 |
||
(Increase) decrease in prepaid expenses |
(87,584) |
34,121 |
||
Increase (decrease) in accounts payable and accrued liabilities |
1,099,752 |
(907,558) |
||
Decrease in accrued income taxes |
(423,029) |
(67,058) |
||
Net cash provided by operating activities |
1,429,379 |
862,800 |
||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||
Purchase of property, plant and equipment |
(33,980) |
(42,788) |
||
Proceeds from sale of property, plant and equipment |
5,450 |
- |
||
Net cash used in investing activities |
(28,530) |
(42,788) |
||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||
Redemption of common stock |
(2,450,844) |
- |
||
Net cash used in financing activities |
(2,450,844) |
- |
||
Net increase (decrease) in cash and cash equivalents |
(1,049,995) |
820,012 |
||
Cash and cash equivalents, beginning of period |
8,710,314 |
6,828,571 |
||
Cash and cash equivalents, end of period |
$ 7,660,319 |
$ 7,648,583 |
||
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
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