Jewett-Cameron Announces 1st Quarter Financial Results
NORTH PLAINS, Ore., Jan. 14, 2016 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2016 ended November 30, 2015.
Sales were $11.94 million for the first quarter of fiscal 2016 compared to sales of $7.98 million for the first quarter of fiscal 2015. Income from operations for the quarter was $885,204 compared to $529,899 in the year-ago quarter. Net income was $532,245, or $0.21 per share, for the current quarter compared to net income of $327,787, or $0.12 per share, for the first quarter of fiscal 2015.
"The increase in sales for the quarter was due to our efforts to expand our customer base to new smaller and mid-sized customers, as well as the continued acceptance of our new products introduced during fiscal 2015," said CEO Don Boone. "The new products have been particularly well-received by our established customer base, which has led to sales increases with our largest customers."
As of November 30, the Company's cash position was $4.36 million, and currently there is no borrowing against its $3.0 million line of credit. The Company has historically utilized its cash position by implementing share repurchase programs as an effective method of enhancing shareholder value. The Company's most recent share repurchase plan was terminated 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. CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
|||
| November 30, |
August 31, |
||
| ASSETS |
|||
| Current assets |
|||
| Cash |
$ 4,360,625 |
$ 4,416,297 |
|
| Accounts receivable, net of allowance of $Nil (August 31, 2015 - $Nil) |
4,319,826 |
3,688,247 |
|
| Inventory, net of allowance of $72,730 (August 31, 2015 - $120,824) |
8,162,241 |
8,351,575 |
|
| Note receivable |
360 |
1,310 |
|
| Prepaid expenses |
1,052,468 |
719,459 |
|
| Prepaid income taxes |
- |
26,570 |
|
| Total current assets |
17,895,520 |
17,203,458 |
|
| Property, plant and equipment, net |
2,184,901 |
2,231,711 |
|
| Intangible assets, net |
205,073 |
223,250 |
|
| Total assets |
$ 20,285,494 |
$ 19,658,419 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| Current liabilities |
|||
| Accounts payable |
$ 955,516 |
$ 984,955 |
|
| Litigation reserve |
84,010 |
90,671 |
|
| Accrued liabilities |
1,142,483 |
1,024,358 |
|
| Total current liabilities |
2,182,009 |
2,099,984 |
|
| Deferred tax liability |
47,105 |
34,300 |
|
| Total liabilities |
2,229,114 |
2,134,284 |
|
| 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, 2015 – 2,476,832) |
1,168,712 |
1,168,712 |
|
| Additional paid-in capital |
600,804 |
600,804 |
|
| Retained earnings |
16,286,864 |
15,754,619 |
|
| Total stockholders' equity |
18,056,380 |
17,524,135 |
|
| Total liabilities and stockholders' equity |
$ 20,285,494 |
$ 19,658,419 |
|
| JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
|||
| Three Months Ended |
|||
| 2015 |
2014 |
||
| SALES |
$ 11,941,508 |
$ 7,982,617 |
|
| COST OF SALES |
9,561,653 |
6,112,594 |
|
| GROSS PROFIT |
2,379,855 |
1,870,023 |
|
| OPERATING EXPENSES |
|||
| Selling, general and administrative expenses |
542,793 |
461,448 |
|
| Depreciation and amortization |
75,513 |
69,083 |
|
| Wages and employee benefits |
876,345 |
809,593 |
|
| 1,494,651 |
1,340,124 |
||
| Income from operations |
885,204 |
529,899 |
|
| OTHER ITEMS |
|||
| Interest and other income |
8,734 |
6,895 |
|
| 8,734 |
6,895 |
||
| Income before income taxes |
893,938 |
536,794 |
|
| Income tax expense |
(361,693) |
(209,007) |
|
| Net income |
$ 532,245 |
$ 327,787 |
|
| Basic earnings per common share |
$ 0.21 |
$ 0.12 |
|
| Diluted earnings per common share |
$ 0.21 |
$ 0.12 |
|
| Weighted average number of common shares outstanding: |
|||
| Basic |
2,476,832 |
2,688,942 |
|
| Diluted |
2,476,832 |
2,688,942 |
|
| JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
|||
| Three Month Periods |
|||
| 2015 |
2014 |
||
| CASH FLOWS FROM OPERATING ACTIVITIES |
|||
| Net income |
$ 532,245 |
$ 327,787 |
|
| Items not involving an outlay of cash: |
|||
| Depreciation and amortization |
75,513 |
69,083 |
|
| Deferred income taxes |
12,805 |
3,717 |
|
| Interest income on litigation |
(6,661) |
(6,661) |
|
| Changes in non-cash working capital items: |
|||
| Increase in accounts receivable |
(631,579) |
(277,686) |
|
| (Increase) decrease in inventory |
189,334 |
(1,590,622) |
|
| Decrease in note receivable |
950 |
15,000 |
|
| Decrease in prepaid income taxes |
26,570 |
205,171 |
|
| (Increase) decrease in prepaid expenses |
(333,009) |
192,557 |
|
| Increase in accounts payable and accrued liabilities |
88,686 |
12,848 |
|
| Net cash used by operating activities |
(45,146) |
(1,048,806) |
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|||
| Purchase of property, plant and equipment |
(10,526) |
(1,280) |
|
| Net cash used in investing activities |
(10,526) |
(1,280) |
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|||
| Redemption of common stock |
- |
(1,292,477) |
|
| Net cash used in financing activities |
- |
(1,292,477) |
|
| Net decrease in cash |
(55,672) |
(2,342,563) |
|
| Cash, beginning of period |
4,416,297 |
4,327,540 |
|
| Cash, end of period |
$ 4,360,625 |
$ 1,984,977 |
|
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
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