Jewett-Cameron Announces 2nd Quarter Financial Results
NORTH PLAINS, Ore., April 13, 2011 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF; TSX: JCT) today reported financial results for the second quarter and six month periods of fiscal 2011 ended February 28, 2011.
Sales for the second quarter of fiscal 2011 totaled $11.86 million compared to sales of $7.67 million for the second quarter of fiscal 2010. For the quarter, income from operations was $755,337 compared to $352,276 in the year-ago quarter. After other items and income taxes, the Company reported net income of $496,949 or $0.25 per share, compared to net income of $204,472, or $0.09 per diluted share in last year's second quarter.
For the six months ended February 28, 2011 Jewett-Cameron reported sales of $17.9 million compared to sales of $15.0 million for the same period a year ago. Due to a litigation reserve of ($1,595,151), the Company reported a net loss of ($349,386), or ($0.16) per share, compared to net income of $277,102, or $0.12 per diluted share in the first six months of fiscal 2010.
"We have aggressively worked to increase our market share on our current products with our existing customers," said CEO Don Boone. "However, we are not immune to rising material and transportation costs, both of which had a negative effect on our margins and income."
As of February 28, the Company's cash position was $4.73 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 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. As of April 13, 2011, the Company had not repurchased any shares under the additional repurchase program announced on January 13, 2011. The current repurchase program 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.
CONTACT: Don Boone, President and CEO of Jewett-Cameron Trading Company Ltd., +1-503-647-0110
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
||||
February 28, 2011 |
August 31, 2010 |
|||
ASSETS |
||||
Current assets |
||||
Cash and cash equivalents |
$ 4,733,701 |
$ 8,710,314 |
||
Accounts receivable, net of allowance of $nil (August 31, 2010 - $17,593) |
5,936,967 |
3,874,114 |
||
Inventory, net of allowance of $196,057 (August 31, 2010 - $221,200) (note 3) |
6,619,159 |
6,265,782 |
||
Note receivable |
41,500 |
41,500 |
||
Prepaid expenses |
161,166 |
56,696 |
||
Prepaid income taxes |
558,979 |
- |
||
Taxes receivable |
200,941 |
- |
||
Total current assets |
18,252,413 |
18,948,406 |
||
Property, plant and equipment, net (note 4) |
1,866,824 |
1,926,031 |
||
Intangible assets, net (note 5) |
548,242 |
585,714 |
||
Deferred income taxes (note 6) |
190,350 |
198,582 |
||
Total assets |
$ 20,857,829 |
$ 21,658,733 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current liabilities |
||||
Accounts payable |
$ 1,176,291 |
$ 465,165 |
||
Litigation reserve (note 12(a)) |
1,595,151 |
- |
||
Accrued liabilities |
840,048 |
1,138,866 |
||
Accrued income taxes |
- |
8,133 |
||
Total current liabilities |
3,611,490 |
1,612,164 |
||
Contingent liabilities and commitments (note 12) |
||||
Stockholders' equity |
||||
Capital stock (note 8) |
||||
Authorized |
||||
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 |
14,744,073 |
17,263,951 |
||
Total stockholders' equity |
17,246,339 |
20,046,569 |
||
Total liabilities and stockholders' equity |
$ 20,857,829 |
$ 21,658,733 |
||
JEWETT-CAMERON TRADING COMPANY LTD. STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
||||||||
Three Month Periods Ended February 28, |
Six Month Periods Ended February 28, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
SALES |
$ 11,860,014 |
$ 7,675,454 |
$ 17,945,065 |
$ 15,050,380 |
||||
COST OF SALES |
9,734,195 |
5,913,667 |
14,373,452 |
11,672,995 |
||||
GROSS PROFIT |
2,125,819 |
1,761,787 |
3,571,613 |
3,377,385 |
||||
OPERATING EXPENSES |
||||||||
Selling, general and administrative expenses |
418,217 |
519,314 |
898,401 |
1,060,029 |
||||
Depreciation and amortization |
65,757 |
72,922 |
131,134 |
133,618 |
||||
Wages and employee benefits |
886,508 |
817,275 |
1,708,047 |
1,697,562 |
||||
1,370,482 |
1,409,511 |
2,737,582 |
2,891,209 |
|||||
Income from operations |
755,337 |
352,276 |
834,031 |
486,176 |
||||
OTHER ITEMS |
||||||||
Gain (loss) on sale of property, plant and equipment |
(1,114) |
(3,492) |
4,336 |
(3,492) |
||||
Interest and other income |
- |
2,658 |
26 |
4,418 |
||||
Interest expense (note 12(a)) |
(16,023) |
- |
(408,014) |
- |
||||
Litigation reserves (note 12(a)) |
- |
- |
(962,137) |
- |
||||
(17,137) |
(834) |
(1,365,789) |
926 |
|||||
Income (loss) before income taxes |
738,200 |
351,442 |
(531,758) |
487,102 |
||||
Income tax (expense) recovery |
(241,251) |
(146,970) |
182,372 |
(210,000) |
||||
Net income (loss) |
$ 496,949 |
$ 204,472 |
$ (349,386) |
$ 277,102 |
||||
Basic earnings (loss) per common share |
$ 0.25 |
$ 0.09 |
$ (0.16) |
$ 0.12 |
||||
Diluted earnings (loss) per common share |
$ 0.25 |
$ 0.09 |
$ (0.16) |
$ 0.12 |
||||
Weighted average number of common shares outstanding: |
||||||||
Basic |
2,014,865 |
2,390,977 |
2,162,580 |
2,390,977 |
||||
Diluted |
2,014,865 |
2,390,977 |
2,162,580 |
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 February 28, |
Six Month Periods Ended February 28, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net income (loss) |
$ 496,949 |
$ 204,472 |
$ (349,386) |
$ 277,102 |
||||
Items not involving an outlay of cash: |
||||||||
Depreciation and amortization |
65,757 |
72,922 |
131,134 |
133,618 |
||||
Gain (loss) on sale of property, plant and equipment |
1,114 |
3,492 |
(4,336) |
3,492 |
||||
Deferred income taxes |
8,826 |
(26,200) |
8,232 |
103,480 |
||||
Changes in non-cash working capital items: |
||||||||
(Increase) decrease in accounts receivable |
(4,176,909) |
(1,093,080) |
(2,062,853) |
297,789 |
||||
(Increase) decrease in inventory |
133,437 |
1,423,403 |
(353,377) |
1,572,823 |
||||
Increase in prepaid expenses |
(16,886) |
(141,459) |
(104,470) |
(107,338) |
||||
Increase in prepaid income taxes |
(144,083) |
- |
(567,112) |
- |
||||
Increase in taxes receivable |
(200,941) |
- |
(200,941) |
- |
||||
Increase (decrease) in accounts payable and accrued liabilities |
907,707 |
43,245 |
2,007,459 |
(864,313) |
||||
Decrease in accrued income taxes |
- |
(302,982) |
- |
(370,040) |
||||
Net cash provided by (used in) operating activities |
(2,925,029) |
183,813 |
(1,495,650) |
1,046,613 |
||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Purchase of property, plant and equipment |
(1,589) |
(138,793) |
(35,569) |
(181,581) |
||||
Proceeds from sale of property, plant and equipment |
- |
- |
5,450 |
- |
||||
Net cash used in investing activities |
(1,589) |
(138,793) |
(30,119) |
(181,581) |
||||
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 |
(2,926,618) |
45,020 |
(3,976,613) |
865,032 |
||||
Cash and cash equivalents, beginning of period |
7,660,319 |
7,648,583 |
8,710,314 |
6,828,571 |
||||
Cash and cash equivalents, end of period |
$ 4,733,701 |
$ 7,693,603 |
$ 4,733,701 |
$ 7,693,603 |
||||
SOURCE Jewett-Cameron Trading Company Ltd.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article