Jewett-Cameron Announces 2nd Quarter Financial Results
NORTH PLAINS, Ore., April 11, 2012 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF; TSX: JCT) today reported financial results for the second quarter and six month periods of fiscal 2012 ended February 29, 2012.
Sales for the second quarter of fiscal 2012 totaled $11.75 million compared to sales of $11.86 million for the second quarter of fiscal 2011. For the quarter, income from operations was $672,436 compared to $755,337 in the year-ago quarter. In February 2012, the Company received a favorable decision from the Oregon Supreme Court in the Company's lawsuit filed in relation to the acquisition of inventory by Greenwood Products. As a result, the current quarter's results include a reversal of litigation reserves of $1,443,629 and interest expense of $16,023. These amounts have been treated as a one-time gain and contributed to net income after other items and income taxes of $1,287,774, or $0.71 per share, compared to net income of $496,949, or $0.25 per diluted share in last year's second quarter.
For the six months ended February 29, 2012 Jewett-Cameron reported sales of $19.0 million compared to sales of $17.9 million for the same period a year ago. Net income after other items and income taxes was $1,351,807, or $0.73 per share, compared to a net loss of ($349,386), or ($0.16) per share in the first six months of fiscal 2011. The current six month period was positively affected by the reversal of litigation reserves, while the year-ago six month period was negatively affected by the Company accruing ($1,370,151) to the litigation reserve.
"We are pleased with the higher level of sales for the six month period and the favorable ruling by the Oregon Supreme Court," said CEO Don Boone. "However, the higher material and transportation costs continue to negatively affect our margins and net income."
As of February 29, 2012, the Company's cash position was $4.31 million, and currently there is no borrowing against its $5.0 million line of credit. In the second quarter of fiscal 2012, the Company repurchased and cancelled 248,587 common shares at a cost of $2,238,929, which represents an average price of $9.01 per share. These repurchases were pursuant to a new share repurchase plan in accordance with Rule 10b-18 approved by the Board of Directors on January 17, 2012 for the purchase and cancellation of up to 300,000 common shares. These purchases are in addition to the repurchase and cancellation of 50,000 common shares at a total cost of $454,120 at an average share price of $9.08 which were completed in the first quarter of 2012 ended November 30, 2011. The current repurchase program will remain in place until May 18, 2012 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)
|
||
| February 29, 2012 |
August 31, 2011 |
|
| ASSETS |
||
| Current assets |
||
| Cash and cash equivalents |
$ 4,310,547 |
$ 6,774,127 |
| Accounts receivable, net of allowance of $6,299 (August 31, 2011 - $Nil) |
3,954,043 |
3,897,086 |
| Inventory, net of allowance of $192,810 (August 31, 2011 - $204,860) (note 3) |
6,483,367 |
5,815,593 |
| Note receivable |
61,500 |
41,500 |
| Prepaid expenses |
1,201,725 |
848,341 |
| Prepaid income taxes |
- |
682,527 |
| Total current assets |
16,011,182 |
18,059,174 |
| Property, plant and equipment, net (note 4) |
1,793,962 |
1,850,037 |
| Intangible assets, net (note 5) |
484,932 |
510,771 |
| Deferred income taxes (note 6) |
156,305 |
157,862 |
| Total assets |
$ 18,446,381 |
$ 20,577,844 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||
| Current liabilities |
||
| Accounts payable |
$ 994,410 |
$ 519,265 |
| Litigation reserve (note 12(a)) |
184,286 |
1,627,915 |
| Accrued liabilities |
891,752 |
941,846 |
| Accrued income taxes |
228,358 |
- |
| Total current liabilities |
2,298,806 |
3,089,026 |
| 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 |
||
| 1,609,870 common shares (August 31, 2011 - 1,908,457) |
1,519,261 |
1,801,043 |
| Additional paid-in capital |
600,804 |
600,804 |
| Retained earnings |
14,027,510 |
15,086,971 |
| Total stockholders' equity |
16,147,575 |
17,488,818 |
| Total liabilities and stockholders' equity |
$ 18,446,381 |
$ 20,577,844 |
| JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited)
|
|||||||
| Three Month Periods to the End of February |
Six Month Periods to the End of February |
||||||
| 2012 |
2011 |
2012 |
2011 |
||||
| SALES |
$11,751,797 |
$11,860,014 |
$ 18,992,407 |
$ 17,945,065 |
|||
| COST OF SALES |
9,660,496 |
9,734,195 |
15,434,911 |
14,373,452 |
|||
| GROSS PROFIT |
2,091,301 |
2,125,819 |
3,557,496 |
3,571,613 |
|||
| OPERATING EXPENSES |
|||||||
| Selling, general and administrative expenses |
460,595 |
418,217 |
888,944 |
898,401 |
|||
| Depreciation and amortization |
64,297 |
65,757 |
125,495 |
131,134 |
|||
| Wages and employee benefits |
893,973 |
886,508 |
1,707,686 |
1,708,047 |
|||
| 1,418,865 |
1,370,482 |
2,722,125 |
2,737,582 |
||||
| Income from operations |
672,436 |
755,337 |
835,371 |
834,031 |
|||
| OTHER ITEMS |
|||||||
| Gain (loss) on sale of property, plant and equipment |
- |
(1,114) |
- |
4,336 |
|||
| Interest and other income |
- |
- |
- |
26 |
|||
| Interest expense (note 12(a)) |
16,203 |
(16,023) |
- |
(408,014) |
|||
| Litigation reserves (note 12(a)) |
1,443,629 |
- |
1,443,629 |
(962,137) |
|||
| 1,459,832 |
(17,137) |
1,443,629 |
(1,365,789) |
||||
| Income (loss) before income taxes |
2,132,268 |
738,200 |
2,279,000 |
(531,758) |
|||
| Income tax (expense) recovery |
(844,494) |
(241,251) |
(927,193) |
182,372 |
|||
| Net income (loss) |
$ 1,287,774 |
$ 496,949 |
$ 1,351,807 |
$ (349,386) |
|||
| Basic earnings (loss) per common share |
$ 0.71 |
$ 0.25 |
$ 0.73 |
$ (0.16) |
|||
| Diluted earnings (loss) per common share |
$ 0.71 |
$ 0.25 |
$ 0.73 |
$ (0.16) |
|||
| Weighted average number of common shares outstanding: |
|||||||
| Basic |
1,823,423 |
2,014,865 |
1,861,819 |
2,162,580 |
|||
| Diluted |
1,823,423 |
2,014,865 |
1,861,819 |
2,162,580 |
|||
| JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited)
|
|||
| Six Month Periods to the End of February |
|||
| 2012 |
2011 |
||
| CASH FLOWS FROM OPERATING ACTIVITIES |
|||
| Net income (loss) |
$ 1,351,807 |
$ (349,386) |
|
| Items not involving an outlay of cash: |
|||
| Depreciation and amortization |
125,495 |
131,134 |
|
| Gain (loss) on sale of property, plant and equipment |
- |
(4,336) |
|
| Deferred income taxes |
1,557 |
8,232 |
|
| Changes in non-cash working capital items: |
|||
| Increase in accounts receivable |
(56,957) |
(2,062,853) |
|
| (Increase) decrease in inventory |
(667,774) |
(353,377) |
|
| Increase in note receivable |
(20,000) |
- |
|
| Increase in prepaid expenses |
(353,385) |
(104,470) |
|
| (Increase) decrease in prepaid income taxes |
682,527 |
(567,112) |
|
| Increase in taxes receivable |
- |
(200,941) |
|
| Increase (decrease) in accounts payable and accrued liabilities |
(1,018,578) |
2,007,459 |
|
| Increase in accrued income taxes |
228,358 |
- |
|
| Net cash provided by (used in) operating activities |
273,050 |
(1,495,650) |
|
| CASH FLOWS FROM INVESTING ACTIVITIES |
|||
| Purchase of property, plant and equipment |
(30,531) |
(35,569) |
|
| Purchase of intangible assets and other |
(13,050) |
- |
|
| Proceeds from sale of property, plant and equipment |
- |
5,450 |
|
| Net cash used in investing activities |
(43,581) |
(30,119) |
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|||
| Redemption of common stock |
(2,693,049) |
(2,450,844) |
|
| Net cash used in financing activities |
(2,693,049) |
(2,450,844) |
|
| Net decrease in cash and cash equivalents |
(2,463,580) |
(3,976,613) |
|
| Cash and cash equivalents, beginning of period |
6,774,127 |
8,710,314 |
|
| Cash and cash equivalents, end of period |
$ 4,310,547 |
$ 4,733,701 |
|
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
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