Jewett-Cameron Announces 3rd Quarter Financial Results
NORTH PLAINS, Ore., July 13, 2011 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF; TSX: JCT) today reported financial results for the third quarter and nine month periods of fiscal 2011 ended May 31, 2011.
Sales for the third quarter of fiscal 2011 totaled $12.91 million compared to sales of $12.48 million for the third quarter of fiscal 2010. For the quarter, income from operations was $1,035,785 compared to $1,320,202 in the year-ago quarter. After other items and income taxes, the Company reported net income of $604,324 or $0.30 per basic and diluted share, compared to net income of $796,967, or $0.33 per share in last year's third quarter.
For the nine months ended May 31, 2011 Jewett-Cameron reported sales of $30.85 million compared to sales of $27.53 million for the same period a year ago. Due to a litigation reserve of ($1,386,481), the Company reported net income of $254,938, or $0.12 per share, compared to net income of $1,074,069, or $0.45 per share in the first nine months of fiscal 2010.
"Our efforts to increase our market share with our existing customers is reflected in our higher sales for both the quarter and nine months," said CEO Don Boone. "However, rising material and transportation costs are having a negative effect on our margins and net income."
As of May 31st, the Company's cash position was $5.63 million, and currently there is no borrowing against its $5.0 million line of credit. Today, the Company announced a new share re-purchase plan where it can repurchase up to 300,000 common shares representing approximately 16% of the approximately 1.9 million common shares outstanding. This share repurchase plan may commence on July 25, 2011 and will remain in place until October 21, 2011, but may be limited or terminated at any time without prior notice. In the first nine months of fiscal 2011, the Company re-purchased and cancelled a total of a total of 392,980 common shares under prior formal plans of repurchase. The total cost was $3,361,970 at an average share price of $8.56 per share. These purchases were in addition to the 79,040 common shares repurchased and cancelled in the fourth quarter of fiscal 2010.
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) |
||||
May 31, 2011 |
August 31, 2010 |
|||
ASSETS |
||||
Current assets |
||||
Cash and cash equivalents |
$ 5,632,276 |
$ 8,710,314 |
||
Accounts receivable, net of allowance of $nil (August 31, 2010 - $17,593) |
4,551,128 |
3,874,114 |
||
Inventory, net of allowance of $188,233 (August 31, 2010 - $221,200) (note 3) |
6,877,356 |
6,265,782 |
||
Note receivable |
41,500 |
41,500 |
||
Prepaid expenses |
144,460 |
56,696 |
||
Prepaid income taxes |
647,530 |
- |
||
Total current assets |
17,894,250 |
18,948,406 |
||
Property, plant and equipment, net (note 4) |
1,838,829 |
1,926,031 |
||
Intangible assets, net (note 5) |
529,506 |
585,714 |
||
Deferred income taxes (note 6) |
195,000 |
198,582 |
||
Total assets |
$ 20,457,585 |
$ 21,658,733 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current liabilities |
||||
Accounts payable |
$ 873,982 |
$ 465,165 |
||
Litigation reserve (note 12(a)) |
1,611,533 |
- |
||
Accrued liabilities |
1,032,533 |
1,138,866 |
||
Accrued income taxes |
- |
8,133 |
||
Total current liabilities |
3,518,048 |
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 |
||||
1,918,957 common shares (August 31, 2010 - 2,311,937) |
1,810,952 |
2,181,814 |
||
Additional paid-in capital |
600,804 |
600,804 |
||
Retained earnings |
14,527,781 |
17,263,951 |
||
Total stockholders' equity |
16,939,537 |
20,046,569 |
||
Total liabilities and stockholders' equity |
$ 20,457,585 |
$ 21,658,733 |
||
JEWETT-CAMERON TRADING COMPANY LTD. STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
||||||||
Three Month Periods to May 31, |
Nine Month Periods to May 31, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
SALES |
$ 12,913,331 |
$ 12,487,415 |
$ 30,858,396 |
$ 27,537,794 |
||||
COST OF SALES |
10,483,142 |
9,612,612 |
24,856,594 |
21,285,607 |
||||
GROSS PROFIT |
2,430,189 |
2,874,803 |
6,001,802 |
6,252,187 |
||||
OPERATING EXPENSES |
||||||||
Selling, general and administrative expenses |
399,226 |
554,635 |
1,297,627 |
1,614,662 |
||||
Depreciation and amortization |
65,296 |
69,465 |
196,430 |
203,084 |
||||
Wages and employee benefits |
929,882 |
930,501 |
2,637,929 |
2,628,063 |
||||
1,394,404 |
1,554,601 |
4,131,986 |
4,445,809 |
|||||
Income from operations |
1,035,785 |
1,320,202 |
1,869,816 |
1,806,378 |
||||
OTHER ITEMS |
||||||||
Gain (loss) on sale of property, plant and equipment |
(6,988) |
4,500 |
(2,652) |
1,008 |
||||
Interest and other income |
- |
265 |
23 |
4,683 |
||||
Interest expense (Note 12(a)) |
(16,333) |
- |
(424,344) |
- |
||||
Litigation reserves (Note 12(a)) |
- |
- |
(962,137) |
- |
||||
(23,321) |
4,765 |
(1,389,110) |
5,691 |
|||||
Income before income taxes |
1,012,464 |
1,324,967 |
480,706 |
1,812,069 |
||||
Income taxes |
408,140 |
528,000 |
225,768 |
738,000 |
||||
Net income |
$ 604,324 |
$ 796,967 |
$ 254,938 |
$ 1,074,069 |
||||
Basic earnings per common share |
$ 0.30 |
$ 0.33 |
$ 0.12 |
$ 0.45 |
||||
Diluted earnings per common share |
$ 0.30 |
$ 0.33 |
$ 0.12 |
$ 0.45 |
||||
Weighted average number of common shares outstanding: |
||||||||
Basic |
2,002,355 |
2,390,977 |
2,108,585 |
2,390,977 |
||||
Diluted |
2,002,355 |
2,390,977 |
2,108,585 |
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 May 31, |
Nine Month Periods Ended May 31, |
|||||||
2011 |
2010 |
2011 |
2010 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net income |
$ 604,324 |
$ 796,967 |
$ 254,938 |
$1,074,069 |
||||
Items not involving an outlay of cash: |
||||||||
Depreciation and amortization |
65,296 |
69,465 |
196,430 |
203,084 |
||||
Gain (loss) on sale of property, plant and equipment |
6,988 |
(4,500) |
2,652 |
(1,008) |
||||
Deferred income taxes |
(4,650) |
(19,400) |
3,582 |
84,080 |
||||
Changes in non-cash working capital items: |
||||||||
(Increase) decrease in accounts receivable |
1,385,839 |
(931,268) |
(677,014) |
(633,479) |
||||
(Increase) decrease in inventory |
(258,197) |
(504,874) |
(611,574) |
1,067,948 |
||||
(Increase) decrease in prepaid expenses |
16,706 |
95,497 |
(87,764) |
(11,841) |
||||
(Decrease) increase in accounts payable and accrued liabilities |
(93,442) |
986,042 |
1,905,884 |
121,729 |
||||
(Increase) decrease in prepaid income taxes |
(88,551) |
268,399 |
(647,530) |
(101,640) |
||||
Decrease in taxes receivable |
200,941 |
- |
- |
- |
||||
Net cash provided by operating activities |
1,835,254 |
756,328 |
339,604 |
1,802,942 |
||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Purchase of property, plant and equipment |
(25,553) |
(32,078) |
(61,122) |
(213,660) |
||||
Proceeds from sale of property, plant and equipment |
- |
4,500 |
5,450 |
4,500 |
||||
Net cash (used in) investing activities |
(25,553) |
(27,578) |
(55,672) |
(209,160) |
||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Redemption of common stock |
(911,126) |
- |
(3,361,970) |
- |
||||
Net cash (used in) financing activities |
(911,126) |
- |
(3,361,970) |
- |
||||
Net increase (decrease) in cash and cash equivalents |
898,575 |
728,750 |
(3,078,038) |
1,593,782 |
||||
Cash and cash equivalents, beginning of period |
4,733,701 |
7,693,603 |
8,710,314 |
6,828,571 |
||||
Cash and cash equivalents, end of period |
$ 5,632,276 |
$ 8,422,353 |
5,632,276 |
$ 8,422,353 |
||||
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
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