Jewett-Cameron Announces 3rd Quarter Financial Results

News provided by

Jewett-Cameron Trading Company Ltd.

Jul 17, 2017, 16:35 ET

NORTH PLAINS, Ore., July 17, 2017 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine month periods of fiscal 2017 ended May 31, 2017.

Sales for the third quarter of fiscal 2017 totaled $16.7 million compared to sales of $14.5 million for the third quarter of fiscal 2016. Income from operations was $2,023,238 compared to $1,504,952 for the third quarter ended May 31, 2016. Net income after other items and income taxes for the current quarter was $1,206,135, or $0.53 per share, compared to $908,730, or $0.37 per share, in the year-ago quarter.

For the nine months ended May 31, 2017, Jewett-Cameron reported sales of $36.6 million compared to sales of $37.6 million for the nine months ended May 31, 2016. Net income was $2,001,068, or $0.88 per share, compared to net income of $1,572,935, or $0.64 per share, in the first nine months of fiscal 2016.

"Our investments in eCommerce and expanding our international sales have started to be reflected in this quarter's revenues and margins," said CEO Charlie Hopewell. "We are continuing our efforts to grow our business, including increased utilization of our recent warehouse expansion and adding additional personnel to support our sales initiatives."

As of May 31, 2017, the Company's cash position was approximately $4.9 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 May 23, 2017, the Company announced the Board of Directors approved a share repurchase plan to purchase for cancellation up to 225,000 common shares under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934. Subsequent to the end of the 3rd quarter, the Company has repurchased for cancellation 40,660 common shares at a cost of $511,959, which is an average price of $12.59 per share.

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,
2017

August 31,
2016




ASSETS






Current assets


  Cash

$  4,872,068

$  4,519,922

  Accounts receivable, net of allowance of $Nil (August 31, 2016 - $Nil)

5,532,541

3,342,204

  Inventory, net of allowance of $157,879 (August 31, 2016 - $176,717)

8,053,663

8,069,017

  Prepaid expenses

772,802

832,895

  Prepaid income taxes

-

596




  Total current assets

19,231,074

16,764,634




Property, plant and equipment, net

3,150,916

2,954,595




Intangible assets, net

96,014

150,543




Total assets

$ 22,478,004

$  19,869,772








LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities






  Accounts payable

$     891,623

$      839,972

  Accrued liabilities

1,710,069

1,473,792

  Income taxes payable

317,074

-




  Total current liabilities

2,918,766

2,313,764




Deferred tax liability

33,515

31,353




Total liabilities

2,952,281

2,345,117




Contingent liabilities and commitments






Stockholders' equity


  Capital stock


     Authorized


      21,567,564 common shares, without par value


      10,000,000 preferred shares, without par value


    Issued


      2,286,294 common shares (August 31, 2016 – 2,286,294)

1,078,759

1,078,759

  Additional paid-in capital

600,804

600,804

  Retained earnings

17,846,160

15,845,092




  Total stockholders' equity

19,525,723

17,524,655




  Total liabilities and stockholders' equity

$  22,478,004

$  19,869,772

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,

2017

2016

2017

2016








SALES

$  16,718,234

$  14,458,713

$  36,639,323

$  37,588,354








COST OF SALES

12,906,533

11,281,973

28,304,118

29,996,180








GROSS PROFIT

3,811,701

3,176,740

8,335,205

7,592,174








OPERATING EXPENSES






  Selling, general and administrative expenses

466,014

542,581

1,470,731

1,616,796

  Depreciation and amortization

84,693

82,978

222,700

226,961

  Wages and employee benefits

1,237,756

1,046,229

3,277,797

3,017,643









(1,788,463)

(1,671,788)

(4,971,228)

(4,861,400)








Income from operations

2,023,238

1,504,952

3,363,977

2,730,774








OTHER ITEMS






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

-

-

(393)

5,600

   Interest and other income

2,400

2,978

6,220

13,538

   Interest expense

-

-

-

(27)

   Litigation expense

-

-

-

(115,990)

2,400

2,978

5,827

(96,879)








Income before income taxes

2,025,638

1,507,930

3,369,804

2,633,895








Income tax expense

(819,503)

(599,200)

(1,368,736)

(1,060,960)








Net income

$   1,206,135

$      908,730

$  2,001,068

$  1,572,935








Basic earnings per common share

$            0.53

$            0.37

$           0.88

$           0.64








Diluted earnings per common share

$            0.53

$            0.37

$           0.88

$           0.64








Weighted average number of common shares outstanding:






  Basic

2,286,294

2,458,170

2,286,294

2,470,566

  Diluted

2,286,294

2,458,170

2,286,294

2,470,566

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,

2017

2016

2017

2016








CASH FLOWS FROM OPERATING ACTIVITIES






Net income

$ 1,206,135

$    908,730

$  2,001,068

$  1,572,935

Items not involving an outlay of cash:






  Depreciation and amortization

84,693

82,978

222,700

226,961

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

-

-

393

(5,600)

  Deferred income tax expense (recovery)

(2,378)

(33,601)

2,162

(30,097)

  Interest income on litigation

-

-

-

(6,661)

  Decrease in litigation reserve

-

-

-

(84,010)








Changes in non-cash working capital items:






  (Increase) in accounts receivable

(984,800)

(597,843)

(2,190,337)

(694,191)

  Decrease in inventory

832,580

213,122

15,354

1,053,681

  Decrease in note receivable

-

-

-

1,310

  Decrease (increase) in prepaid expenses

34,891

(271,860)

60,093

(61,249)

  Decrease in prepaid income taxes

149,487

159,031

596

26,570

  Increase in accounts payable and accrued liabilities

1,249,205

974,527

287,928

689,427

  Increase in income taxes payable

317,074

-

317,074

-








Net cash provided by operating activities

2,886,887

1,435,084

717,031

2,689,076








CASH FLOWS FROM INVESTING ACTIVITIES






  Purchase of property, plant and equipment

(33,351)

(31,618)

(368,365)

(79,520)

  Proceeds from sale of property, plant and equipment

-

-

3,480

5,600








Net cash used in investing activities

(33,351)

(31,618)

(364,885)

(73,920)








CASH FLOWS FROM FINANCING ACTIVITIES






  Redemption of common stock

-

(745,878)

-

(745,878)








Net cash used in financing activities

-

(745,878)

-

(745,878)








Net increase in cash

2,853,536

657,588

352,146

1,869,278








Cash, beginning of period

2,018,532

5,627,987

4,519,922

4,416,297








Cash, end of period

$ 4,872,068

$ 6,285,575

$  4,872,068

$  6,285,575

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

SOURCE Jewett-Cameron Trading Company Ltd.

Related Links

http://www.jewettcameron.com

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