Jewett-Cameron Announces 2nd Quarter Financial Results

News provided by

Jewett-Cameron Trading Company Ltd.

Apr 15, 2019, 16:50 ET

NORTH PLAINS, Ore., April 15, 2019 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2019 ended February 28, 2019.

Sales for the second quarter of fiscal 2018 totaled $7.86 million compared to sales of $13.3 million for the second quarter of fiscal 2018. Income from operations was $57,625 compared to income of $720,244 for the quarter ended February 28, 2018. Net income was $119,629, or $0.03 per share, compared to net income of $508,298, or $0.11 per share, in the year-ago quarter.

For the six months ended February 28, 2019, sales totaled $16.9 million compared to sales of $22.8 million for the six months ended February 28, 2018, and income from operations was $536,634 compared to $1,290,546. Net income was $469,323, or $0.11 per share, compared to net income of $830,731, or $0.19 per share, in the first six months of fiscal 2018.

"The results from the second quarter were disappointing, but were primarily from external factors," said CEO Charlie Hopewell. "The extended cold and wet weather across much of the United States caused retailers to delay purchases of Spring and Summer merchandise, and the tariffs on Chinese goods has resulted in continued uncertainty in the marketplace. So far in our fiscal third quarter however, we are seeing improvement in some important areas."

As of February 28, 2019, the Company's cash position was approximately $3.7 million, and there was 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. Since the start of a new repurchase plan on February 18, 2019, the Company has repurchased a total of 189,400 common shares at a cost of $1,651,706, or $8.72 per share.

Jewett-Cameron Trading Company is a holding company that, through its subsidiaries (Jewett-Cameron Companies), operate out of facilities located in North Plains, Oregon. Those businesses consist of the manufacturing and distribution of patented and patent pending specialty metal products, wholesale distribution of wood products, seed processing and sales, and sales of industrial tools and clamps. The Company's brands include Lucky Dog, Animal House and AKC licensed products in the expanding pet market; fencing products under the Adjust-A-Gates, Fit-Right, Perimeter Patrol, and INFINITY Euro fence systems brands; Early Start, Spring Gardner, and Weatherguard for greenhouses; and TrueShade for patio umbrellas, furniture covers and canopies. Additional information about the Company and its products can be found the Company's website at www.jewettcameron.com.

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 28,
2019

August 31,
2018






ASSETS










Current assets




  Cash and cash equivalents

$

3,706,604

$

6,097,463

  Accounts receivable, net of allowance of $Nil (August 31, 2018 - $Nil)

3,197,120

4,152,492

  Inventory, net of allowance of $89,424 (August 31, 2018 - $75,336)

11,705,607

9,803,197

  Note receivable

1,797

4,000

  Prepaid expenses

565,516

347,251

  Prepaid income taxes

308,832

114,310






  Total current assets

19,485,476

20,518,713






Property, plant and equipment, net

2,789,951

3,105,260






Intangible assets, net

3,319

3,590






Total assets

$

22,278,746

$

23,627,563






LIABILITIES AND STOCKHOLDERS' EQUITY










Current liabilities










  Accounts payable

$

368,673

$

377,092

  Accrued liabilities

944,758

1,795,207






  Total current liabilities

1,313,431

2,172,299






Deferred tax liability

79,886

81,853






Total liabilities

1,393,317

2,254,152






Stockholders' equity




  Capital stock




    Authorized




      21,567,564 common shares, without par value




      10,000,000 preferred shares, without par value




    Issued




      4,210,538 common shares (August 31, 2018 – 4,314,659)

993,344

1,017,908

  Additional paid-in capital

600,804

600,804

  Retained earnings

19,291,281

19,754,699






  Total stockholders' equity

20,885,429

21,373,411






  Total liabilities and stockholders' equity

$

22,278,746

$

23,627,563

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)


Three Month
Periods ended
February 28,

Six Month
Periods ended
February 28,

2019

2018

2019

2018










SALES

$

7,857,175

$

13,341,338

$

16,923,275

$

22,755,308










COST OF SALES

6,095,887

10,705,532

12,852,901

17,932,754










GROSS PROFIT

1,761,288

2,635,806

4,070,374

4,822,554










OPERATING EXPENSES








  Selling, general and administrative expenses

405,888

616,074

962,036

1,061,951

  Depreciation and amortization

45,401

122,745

96,271

195,410

  Wages and employee benefits

1,252,374

1,176,743

2,475,433

2,274,647


1,703,663

1,915,562

3,533,740

3,532,008










Income from operations

57,625

720,244

536,634

1,290,546










OTHER ITEMS








   (Loss) gain on sale of property, plant and equipment

105,365

530

105,365

(27,022)

   Interest and other income

9,184

5,793

26,335

8,483


114,549

6,323

131,700

(18,539)










Income before income taxes

172,174

726,567

668,334

1,272,007










Income tax expense


(52,545)

(218,269)

(199,011)

(441,276)










Net income

$

119,629

$

508,298

$

469,323

$

830,731










Basic earnings per common share

$

0.03

$

0.11

$

0.11

$

0.19










Diluted earnings per common share

$

0.03

$

0.11

$

0.11

$

0.19










Weighted average number of common shares outstanding:








  Basic

4,218,348

4,468,988

4,218,672

4,468,988

  Diluted

4,218,348

4,468,988

4,218,672

4,468,988

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)


Six Month Period
ended February 28,

2019

2018






CASH FLOWS FROM OPERATING ACTIVITIES




Net income

$

469,323

$

830,731

Items not involving an outlay of cash:




  Depreciation and amortization

96,271

195,410

  (Gain) loss on sale of property, plant and equipment

(105,365)

27,022

  Deferred income taxes

(1,967)

25,691






Changes in non-cash working capital items:




  Decrease (increase) in accounts receivable

955,372

(2,499,848)

  (Increase) in inventory

(1,902,410)

(481,648)

  Decrease in note receivable

2,203

-

  (Increase) in prepaid expenses

(218,265)

(287,428)

  (Increase) in prepaid income taxes

(194,522)

(469,577)

  (Decrease) in accounts payable and accrued liabilities

(858,868)

(396,839)






Net cash used in operating activities

(1,758,228)

(3,056,486)






CASH FLOWS FROM INVESTING ACTIVITIES




  Purchase of property, plant and equipment

-

(66,041)

  Proceeds from sale of property, plant and equipment

324,674

1,000






Net cash provided by (used in) investing activities

324,674

(65,041)






CASH FLOWS FROM FINANCING ACTIVITIES




  Redemption of common stock

(957,305)

-






Net cash used in financing activities

(957,305)

-






Net decrease in cash

(2,390,859)

(3,121,527)






Cash, beginning of period

6,097,463

5,912,250






Cash, end of period

$

3,706,604

$

2,790,723

Contact: Charlie Hopewell, President & CEO, (503) 647-0110

SOURCE Jewett-Cameron Trading Company Ltd.

Related Links

http://www.jewettcameron.com

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