Jewett-Cameron Announces 3rd Quarter Financial Results
NORTH PLAINS, Ore., July 12 /PRNewswire-FirstCall/ -- Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF; TSX: JCT) today reported financial results for the third quarter and nine months ended May 31, 2010.
Sales for the third quarter of fiscal 2010 totaled $12.48 million compared to sales of $11.41 million for the third quarter of 2009. The company reported net income of $796,967, or $.33 per diluted share compared to net income of $483,553 or $.20 per diluted share in the same period a year ago.
For the nine months ended May 31, 2010 Jewett-Cameron reported sales of $27.5 million compared to $31.5 million for the same period a year ago. Net income for the first nine months of fiscal 2010 was $1,074,069, or $.45 per diluted share, compared to net income of $1,033,143, or $.43 per diluted share in the same period a year ago.
"The higher sales and net income in the current quarter compared to 2009 reflect the successful execution of our business practices, including our strong partner relationships and ability to grow market share in our existing products," said CEO Don Boone.
Jewett-Cameron's financial position continues to be strong, and currently has no borrowing against its $5.0 million line of credit. As of May 31, 2010, the Company's cash position was $8.42 million. Subsequent to the end of the period, the Company began a Share Repurchase Plan (the "Plan") as authorized by the Board of Directors. Under the Plan, the Company may purchase for cancellation up to 425,000 common shares. If all the authorized 425,000 shares are repurchased, it would represent 17.8% of the total shares outstanding as of May 31, 2010. The price paid for the shares under the Plan will be the prevailing market price at the time of the purchase up to US$7.00 per share. The Plan commenced on June 1, 2010 and will remain in place until August 17, 2010 but may be limited or terminated at any time. As of July 6, 2010, the Company has repurchased 79,040 shares under this plan.
About Jewett-Cameron Trading Company Ltd.
Jewett-Cameron Trading Company is a holding company that operates through subsidiary companies as follows. Jewett-Cameron Lumber Corporation's business consists of warehouse distribution and direct sales of wood products and specialty metal products to home centers and other retailers. Greenwood Products is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries. 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. |
||||
May 31, |
August 31, |
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ASSETS |
||||
Current assets |
||||
Cash and cash equivalents |
$ 8,422,353 |
$ 6,828,571 |
||
Accounts receivable, net of allowance |
|
|
||
Inventory, net of allowance |
|
|
||
Note receivable |
41,500 |
41,500 |
||
Prepaid expenses |
172,650 |
160,809 |
||
Prepaid income taxes |
145,445 |
43,805 |
||
Total current assets |
18,906,206 |
17,633,412 |
||
Property, plant and equipment, net (note 4) |
1,936,871 |
1,872,191 |
||
Intangible assets, net (note 5) |
604,449 |
662,045 |
||
Deferred income taxes (note 6) |
177,700 |
261,780 |
||
Total assets |
$ 21,625,226 |
$ 20,429,428 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Liabilities |
||||
Accounts payable |
$ 757,161 |
$ 999,562 |
||
Accrued liabilities |
1,181,090 |
816,960 |
||
Total liabilities |
1,938,251 |
1,816,522 |
||
Contingent liabilities and commitments (note 11) |
||||
Stockholders' equity |
||||
Capital stock (note 8) |
||||
Authorized |
||||
20,000,000 common shares, without par value |
||||
10,000,000 preferred shares, without par value |
||||
Issued |
||||
2,390,977 common shares (August 31, 2009 - 2,390,977) |
2,256,112 |
2,256,112 |
||
Additional paid-in capital |
600,804 |
600,804 |
||
Retained earnings |
16,830,059 |
15,755,990 |
||
Total stockholders' equity |
19,686,975 |
18,612,906 |
||
Total liabilities and stockholders' equity |
$ 21,625,226 |
$20,429,428 |
||
JEWETT-CAMERON TRADING COMPANY LTD. |
||||||||
Three Months Periods to |
Nine Month Periods to |
|||||||
2010 |
2009 |
2010 |
2009 |
|||||
SALES |
$ 12,487,415 |
$ 11,419,331 |
$ 27,537,794 |
$ 31,556,356 |
||||
COST OF SALES |
9,612,612 |
8,992,870 |
21,285,607 |
24,866,945 |
||||
GROSS PROFIT |
2,874,803 |
2,426,461 |
6,252,187 |
6,689,411 |
||||
OPERATING EXPENSES |
||||||||
Selling, general and administrative expenses |
554,635 |
535,418 |
1,614,662 |
1,599,000 |
||||
Depreciation and amortization |
69,465 |
80,733 |
203,084 |
239,121 |
||||
Wages and employee benefits |
930,501 |
948,812 |
2,628,063 |
3,021,579 |
||||
1,554,601 |
1,564,963 |
4,445,809 |
4,859,700 |
|||||
Income from operations |
1,320,202 |
861,498 |
1,806,378 |
1,829,711 |
||||
OTHER ITEMS |
||||||||
Gain on sale of property, plant and |
|
|
|
|
||||
Interest and other income |
265 |
705 |
4,683 |
19,637 |
||||
Interest expense |
- |
- |
- |
(57,533) |
||||
4,765 |
1,055 |
5,691 |
(35,546) |
|||||
Income before income taxes |
1,324,967 |
862,553 |
1,812,069 |
1,794,165 |
||||
Income taxes |
528,000 |
379,000 |
738,000 |
761,022 |
||||
Net income |
$ 796,967 |
$ 483,553 |
$ 1,074,069 |
$ 1,033,143 |
||||
Basic earnings per common share |
$ 0.33 |
$ 0.20 |
$ 0.45 |
$ 0.43 |
||||
Diluted earnings per common share |
$ 0.33 |
$ 0.20 |
$ 0.45 |
$ 0.43 |
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Weighted average number of common shares outstanding: |
||||||||
Basic |
2,390,977 |
2,390,977 |
2,390,977 |
2,390,977 |
||||
Diluted |
2,390,977 |
2,390,977 |
2,390,977 |
2,390,977 |
||||
JEWETT-CAMERON TRADING COMPANY LTD. |
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Nine Month Periods |
||||
2010 |
2009 |
|||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||
Net income |
$1,074,069 |
$1,033,143 |
||
Items not involving an outlay of cash: |
||||
Depreciation and amortization |
203,084 |
239,121 |
||
Gain on sale of property, plant and equipment |
(1,008) |
(2,350) |
||
Deferred income taxes |
84,080 |
20,440 |
||
Changes in non-cash working capital items: |
||||
(Increase) decrease in accounts receivable |
(633,479) |
1,120,583 |
||
(Increase) in note receivable |
- |
(41,500) |
||
(Increase) decrease in inventory |
1,067,948 |
1,389,685 |
||
(Increase) decrease in prepaid expenses |
(11,841) |
(145,345) |
||
(Decrease) increase in accounts payable and accrued liabilities |
121,729 |
(1,468,855) |
||
(Increase) decrease in prepaid income taxes |
(101,640) |
(399,661) |
||
Net cash provided by operating activities |
1,802,942 |
1,745,261 |
||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||
Purchase of property, plant and equipment |
(213,660) |
(249,165) |
||
Proceeds from sale of property, plant and equipment |
4,500 |
2,350 |
||
Net cash (used in) investing activities |
(209,160) |
(246,815) |
||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||
Promissory note |
- |
(2,018,811) |
||
Note payable |
- |
(300,000) |
||
Net cash (used in) financing activities |
- |
(2,318,811) |
||
Net increase (decrease) in cash and cash equivalents |
1,593,782 |
(820,365) |
||
Cash and cash equivalents, beginning of period |
6,828,571 |
5,758,479 |
||
Cash and cash equivalents, end of period |
$ 8,422,353 |
$ 4,938,114 |
||
SEGMENT INFORMATION Following is a summary of segmented information for the nine month periods ended May 31: |
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2010 |
2009 |
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Sales to unaffiliated customers: |
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Industrial wood products |
$ 6,455,924 |
$ 8,834,109 |
||
Lawn, garden, pet and other |
16,036,387 |
18,570,621 |
||
Seed processing and sales |
3,601,377 |
3,153,539 |
||
Industrial tools and clamps |
1,444,106 |
998,087 |
||
$ 27,537,794 |
$ 31,556,356 |
|||
Income (loss) before income taxes: |
||||
Industrial wood products |
$ (304,376) |
$ (368,749) |
||
Lawn, garden, pet and other |
2,444,299 |
2,216,707 |
||
Seed processing and sales |
(281,401) |
51,831 |
||
Industrial tools and clamps |
28,649 |
(8,202) |
||
Unallocated overhead |
(75,102) |
(97,422) |
||
$ 1,812,069 |
$ 1,794,165 |
|||
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
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