Jewett-Cameron Announces 3rd Quarter Financial Results
NORTH PLAINS, Ore., July 14, 2016 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine month periods of fiscal 2016 ended May 31, 2016.
Sales for the third quarter of fiscal 2016 totaled $14.5 million compared to sales of $13.3 million for the third quarter of fiscal 2015. Income from operations was $1,504,952 compared to $779,340 for the third quarter ended May 31, 2015. Net income after other items and income taxes for the current quarter was $908,730, or $0.37 per share, compared to $461,100, or $0.18 per share, in the year-ago quarter.
For the nine months ended May 31, 2016, Jewett-Cameron reported sales of $37.6 million compared to sales of $30.8 million for the nine months ended May 31, 2015. Net income was $1,572,935, or $0.64 per share, compared to net income of $1,072,447, or $0.41 per share, in the first nine months of fiscal 2015.
"The new products we have introduced over the last 12 months continue to be well received by our customers," said CEO Don Boone. "We have also begun construction of a warehouse expansion at our North Plains headquarters which will allow us to introduce additional new product lines going forward."
As of May 31, 2016, the Company's cash position was $6.3 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 March 7, 2016, the Company announced the Board of Directors approved a share repurchase plan to purchase for cancellation up to 250,000 common shares under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934. During the 3rd quarter of fiscal 2016 ended May 31, 2016, the Company repurchased and cancelled 63,386 common shares at a cost of $745,878 which is an average price of $11.77. Subsequent to the end of the period, the Company repurchased and cancelled an additional 42,742 common shares at a cost of $489,274 which is an average price of $11.45 per share. Donald M. Boone, CEO, President and Director, has also voluntarily returned 15,000 common shares to the Company's treasury for cancellation in June 2016, which was in addition to the 15,000 common shares he returned to the Company for cancellation in August 2015. The Company paid no consideration for these 30,000 shares.
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. |
|||
| May 31, |
August 31, |
||
| ASSETS |
|||
| Current assets |
|||
| Cash |
$ 6,285,575 |
$ 4,416,297 |
|
| Accounts receivable, net of allowance of $Nil (August 31, 2015 - $Nil) |
4,382,438 |
3,688,247 |
|
| Inventory, net of allowance of $189,761 (August 31, 2015 - $120,824) (note 3) |
7,297,894 |
8,351,575 |
|
| Note receivable |
- |
1,310 |
|
| Prepaid expenses |
780,708 |
719,459 |
|
| Prepaid income taxes |
- |
26,570 |
|
| Total current assets |
18,746,615 |
17,203,458 |
|
| Property, plant and equipment, net (note 4) |
2,138,800 |
2,231,711 |
|
| Intangible assets, net (note 5) |
168,720 |
223,250 |
|
| Total assets |
$ 21,054,135 |
$ 19,658,419 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
| Current liabilities |
|||
| Accounts payable |
$ 1,304,549 |
$ 984,955 |
|
| Litigation reserve (note 12(a)) |
- |
90,671 |
|
| Accrued liabilities |
1,394,191 |
1,024,358 |
|
| Total current liabilities |
2,698,740 |
2,099,984 |
|
| Deferred tax liability (note 6) |
4,203 |
34,300 |
|
| Total liabilities |
2,702,943 |
2,134,284 |
|
| Contingent liabilities and commitments (note 12) |
|||
| Stockholders' equity |
|||
| Capital stock (note 8) |
|||
| Authorized |
|||
| 21,567,564 common shares, without par value |
|||
| 10,000,000 preferred shares, without par value |
|||
| Issued |
|||
| 2,413,446 common shares (August 31, 2015 – 2,476,832) |
1,138,590 |
1,168,712 |
|
| Additional paid-in capital |
600,804 |
600,804 |
|
| Retained earnings |
16,611,798 |
15,754,619 |
|
| Total stockholders' equity |
18,351,192 |
17,524,135 |
|
| Total liabilities and stockholders' equity |
$ 21,054,135 |
$ 19,658,419 |
|
| JEWETT-CAMERON TRADING COMPANY LTD. |
|||||||
| Three Month |
Nine Month |
||||||
| 2016 |
2015 |
2016 |
2015 |
||||
| SALES |
$ 14,458,713 |
$ 13,289,408 |
$ 37,588,354 |
$ 30,755,429 |
|||
| COST OF SALES |
11,281,973 |
11,047,607 |
29,996,180 |
24,741,485 |
|||
| GROSS PROFIT |
3,176,740 |
2,241,801 |
7,592,174 |
6,013,944 |
|||
| OPERATING EXPENSES |
|||||||
| Selling, general and administrative expenses |
542,581 |
465,864 |
1,616,796 |
1,438,687 |
|||
| Depreciation and amortization |
82,978 |
71,211 |
226,961 |
210,894 |
|||
| Wages and employee benefits |
1,046,229 |
925,386 |
3,017,643 |
2,588,420 |
|||
| (1,671,788) |
(1,462,461) |
(4,861,400) |
(4,238,001) |
||||
| Income from operations |
1,504,952 |
779,340 |
2,730,774 |
1,775,943 |
|||
| OTHER ITEMS |
|||||||
| Gain on sale of property, plant and equipment |
- |
- |
5,600 |
- |
|||
| Interest and other income |
2,978 |
8,534 |
13,538 |
22,617 |
|||
| Interest expense |
- |
(658) |
(27) |
(658) |
|||
| Litigation expense (Note 12(a)) |
- |
- |
(115,990) |
- |
|||
| 2,978 |
7,876 |
(96,879) |
21,959 |
||||
| Income before income taxes |
1,507,930 |
787,216 |
2,633,895 |
1,797,902 |
|||
| Income tax expense |
(599,200) |
(326,116) |
(1,060,960) |
(725,455) |
|||
| Net income |
$ 908,730 |
$ 461,100 |
$ 1,572,935 |
$ 1,072,447 |
|||
| Basic earnings per common share |
$ 0.37 |
$ 0.18 |
$ 0.64 |
$ 0.41 |
|||
| Diluted earnings per common share |
$ 0.37 |
$ 0.18 |
$ 0.64 |
$ 0.41 |
|||
| Weighted average number of common shares outstanding: |
|||||||
| Basic |
2,458,170 |
2,561,702 |
2,470,566 |
2,612,199 |
|||
| Diluted |
2,458,170 |
2,561,702 |
2,470,566 |
2,612,199 |
|||
| JEWETT-CAMERON TRADING COMPANY LTD. |
||||||||||
| Three Month |
Nine Month |
|||||||||
| 2016 |
2015 |
2016 |
2015 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||||
| Net income |
$ 908,730 |
$ 461,100 |
$ 1,572,935 |
$ 1,072,447 |
||||||
| Items not involving an outlay of cash: |
||||||||||
| Depreciation and amortization |
82,978 |
71,211 |
226,961 |
210,894 |
||||||
| Gain on sale of property, plant and equipment |
- |
- |
(5,600) |
- |
||||||
| Deferred income tax expense (recovery) |
(33,601) |
(2,163) |
(30,097) |
(4,872) |
||||||
| Interest income on litigation |
- |
(6,734) |
(6,661) |
(19,983) |
||||||
| Decrease in litigation reserve |
- |
- |
(84,010) |
- |
||||||
| Changes in non-cash working capital items: |
||||||||||
| (Increase) decrease in accounts receivable |
(597,843) |
107,980 |
(694,191) |
(2,483,168) |
||||||
| Decrease in inventory |
213,122 |
2,485,712 |
1,053,681 |
536,845 |
||||||
| (Increase) decrease in note receivable |
- |
275 |
1,310 |
13,575 |
||||||
| (Increase) decrease in prepaid expenses |
(271,860) |
104,098 |
(61,249) |
41,194 |
||||||
| (Increase) decrease in prepaid income taxes |
159,031 |
19,133 |
26,570 |
350,863 |
||||||
| Increase (decrease) in accounts payable and accrued liabilities |
974,527 |
631,547 |
689,427 |
270,805 |
||||||
| Net cash provided by (used in) operating activities |
1,435,084 |
3,872,159 |
2,689,076 |
(11,400) |
||||||
| CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||||
| Purchase of property, plant and equipment |
(31,618) |
(70,543) |
(79,520) |
(85,240) |
||||||
| Proceeds from sale of property, plant and equipment |
- |
- |
5,600 |
- |
||||||
| Net cash used in investing activities |
(31,618) |
(70,543) |
(73,920) |
(85,240) |
||||||
| CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||||
| Proceeds from bank indebtedness |
- |
- |
- |
875,386 |
||||||
| Repayment of bank indebtedness |
- |
(875,386) |
- |
(875,386) |
||||||
| Redemption of common stock |
(745,878) |
(1,101,574) |
(745,878) |
(2,394,051) |
||||||
| Net cash used in financing activities |
(745,878) |
(1,976,960) |
(745,878) |
(2,394,051) |
||||||
| Net increase (decrease) in cash |
$ 657,588 |
$ 1,824,656 |
$ 1,869,278 |
$ (2,490,691) |
||||||
| Cash, beginning of period |
$ 5,627,987 |
$ 12,193 |
$ 4,416,297 |
$ 4,327,540 |
||||||
| Cash, end of period |
$ 6,285,575 |
$ 1,836,849 |
$ 6,285,575 |
$ 1,836,849 |
||||||
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
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