Jewett-Cameron Announces 3rd Quarter Financial Results

Jul 20, 2015, 16:35 ET from Jewett-Cameron Trading Company Ltd.

NORTH PLAINS, Ore., July 20, 2015 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine month periods of fiscal 2015 ended May 31, 2015.

Sales for the third quarter of fiscal 2015 totaled $13.3 million compared to sales of $15.3 million for the third quarter of fiscal 2014. Income from operations was $779,340 compared to $1,552,537 for the third quarter ended May 31, 2014. Net income after other items and income taxes for the current quarter was $461,100, or $0.18 per share, compared to net income of $936,329, or $0.33 per share, in the year-ago quarter.

For the nine months ended May 31, 2015, Jewett-Cameron reported sales of $30.7 million compared to sales of $33.1 million for the nine months ended May 31, 2014. Net income was $1,072,447, or $0.41 per share, compared to net income of $1,506,306, or $0.50 per share, in the first nine months of fiscal 2014.

"The extended winter weather and West Coast port slowdowns which adversely affected our results in the second quarter continued in the third quarter," said CEO Don Boone. "These conditions negatively impacted our revenues and margins. However, we launched several new products during the quarter which were well received by the marketplace, particularly by our established customer base."

As of May 31, 2015, the Company's cash position was $1.8 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. On February 17, 2015, the Company implemented a new share repurchase plan to purchase for cancellation up to 300,000 common shares under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934. During the second quarter, no common shares were repurchased. During the third quarter of fiscal 2015 ended May 31, 2015, the Company repurchased and cancelled 89,051 common shares at a total cost of $1,101,574 which represents an average price of $12.31 per share. Subsequent to the end of the third quarter, the Company re-purchased and is in the process of cancelling a total of 4,778 common shares. The total cost was $54,491 at an average share price of $11.40 per share. Effective July 17, 2015, the Board of Directors terminated the current 10b5-1 share re-purchase plan. 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)

May 31, 2015

August 31, 2014

ASSETS

Current assets

  Cash

$    1,836,849

$   4,327,540

  Accounts receivable, net of allowance of $Nil (August 31, 2014 - $Nil)

4,926,096

2,442,928

  Inventory, net of allowance of $81,249 (August 31, 2014 - $111,756) (note 3)

8,617,284

9,154,129

  Note receivable

1,425

15,000

  Prepaid expenses

721,339

762,533

  Prepaid income taxes

195,484

546,347

  Total current assets

16,298,477

17,248,477

Property, plant and equipment, net (note 4)

2,076,263

2,147,387

Intangible assets, net (note 5)

241,426

295,956

Total assets

$  18,616,166

$  19,691,820

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

  Accounts payable

$      626,523

$     240,825

  Litigation reserve (note 13(a))

97,404

117,387

  Accrued liabilities

959,037

1,073,930

  Total current liabilities

1,682,964

1,432,142

Deferred tax liability (note 6)

56,100

60,972

Total liabilities

1,739,064

1,493,114

Contingent liabilities and commitments (note 13)

Stockholders' equity

  Capital stock (note 8)

     Authorized

      21,567,564 common shares, without par value

      10,000,000 preferred shares, without par value

    Issued

      2,496,610 common shares (August 31, 2014 – 2,704,630)

1,178,044

1,276,201

  Additional paid-in capital

600,804

600,804

  Retained earnings

15,098,254

16,321,701

  Total stockholders' equity

16,877,102

18,198,706

  Total liabilities and stockholders' equity

$  18,616,166

$  19,691,820

 

JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited)

Three Month Period Ended May 31,

Nine Month Period Ended May 31,

2015

2014

2015

2014

SALES

$  13,289,408

$  15,335,570

$  30,755,429

$ 33,074,500

COST OF SALES

11,047,607

12,384,976

24,741,485

26,516,458

GROSS PROFIT

2,241,801

2,950,594

6,013,944

6,558,042

OPERATING EXPENSES

  Selling, general and administrative expenses

465,864

402,013

1,438,687

1,240,800

  Depreciation and amortization

71,211

73,145

210,894

212,694

  Wages and employee benefits

925,386

922,899

2,588,420

2,599,270

(1,462,461)

(1,398,057)

(4,238,001)

(4,052,764)

Income from operations

779,340

1,552,537

1,775,943

2,505,278

OTHER ITEMS

   Gain on sale of property, plant and equipment

-

-

-

4,109

   Interest and other income

8,534

6,734

22,617

20,008

   Interest expense

(658)

-

(658)

-

7,876

6,734

21,959

24,117

Income before income taxes

787,216

1,559,271

1,797,902

2,529,395

Income tax expense

(326,116)

(622,942)

(725,455)

(1,023,089)

Net income

$     461,100

$     936,329

$  1,072,447

$  1,506,306

Basic earnings per common share

$           0.18

$           0.33

$           0.41

$           0.50

Diluted earnings per common share

$           0.18

$           0.33

$           0.41

$           0.50

Weighted average number of common shares outstanding:

  Basic

2,561,702

2,866,273

2,612,199

3,042,692

  Diluted

2,561,702

2,866,273

2,612,199

3,042,692

 

JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited)

Three Month Period Ended May 31,

Nine Month Period Ended May 31,

2015

2014

2015

2014

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$  461,100

$    936,329

$ 1,072,447

$  1,506,306

Items not involving an outlay of cash:

  Depreciation and amortization

71,211

73,145

210,894

212,694

  Gain on sale of property, plant and equipment

-

-

-

(4,109)

  Deferred income tax expense (recovery)

(2,163)

2,355

(4,872)

(6,011)

  Interest income on litigation

(6,734)

(6,734)

(19,983)

(19,982)

Changes in non-cash working capital items:

  (Increase) decrease in accounts receivable

107,980

(666,858)

(2,483,168)

(1,578,367)

  Decrease in inventory

2,485,712

283,331

536,845

1,275,596

  (Increase) decrease in note receivable

275

(15,000)

13,575

-

  (Increase) decrease in prepaid expenses

104,098

762,010

41,194

(739,215)

  (Increase) decrease in prepaid income taxes

19,133

174,587

350,863

(47,022)

  Increase (decrease) in accounts payable and

  accrued liabilities

 

631,547

 

133,976

 

270,805

 

(774,746)

Net cash provided by (used in) operating activities

3,872,159

1,677,141

(11,400)

(174,856)

CASH FLOWS FROM INVESTING ACTIVITIES

  Purchase of property, plant and equipment

(70,543)

(18,899)

(85,240)

(94,274)

  Proceeds from sale of property, plant and equipment

-

-

-

4,800

Net cash used in investing activities

(70,543)

(18,899)

(85,240)

(89,474)

CASH FLOWS FROM FINANCING ACTIVITIES

  Proceeds from bank indebtedness

-

-

875,386

-

  Repayment of bank indebtedness

(875,386)

-

(875,386)

-

  Redemption of common stock

(1,101,574)

(3,234,699)

(2,394,051)

(3,803,718)

Net cash used in financing activities

(1,976,960)

(3,234,699)

(2,394,051)

(3,803,718)

Net increase (decrease) in cash

$   1,824,656

$ (1,576,457)

$ (2,490,691)

$ (4,068,048)

Cash, beginning of period

$        12,193

$  5,816,854

$  4,327,540

$  8,308,445

Cash, end of period

$   1,836,849

$  4,240,397

$  1,836,849

$  4,240,397

 

Contact: Don Boone, President & CEO, (503) 647-0110

 

SOURCE Jewett-Cameron Trading Company Ltd.



RELATED LINKS

http://www.jewettcameron.com