Jewett-Cameron Announces Fiscal 2010 Financial Results
NORTH PLAINS, Ore., Nov. 3, 2010 /PRNewswire-FirstCall/ -- Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF; TSX: JCT) today reported financial results for its fourth quarter and fiscal year ended August 31, 2010.
For the fiscal year ended August 31, 2010 Jewett-Cameron reported net income of $1,982,814, or $0.83 per diluted share, on sales of $41.57 million, compared to net income of $1,582,477, or $0.66 per diluted share, on sales of $42.13 million in the same period a year ago.
Sales for the fourth quarter of fiscal 2010 totaled $14.0 million compared to sales of $10.6 million for the fourth quarter of fiscal 2009. The company reported net income of $908,745, or $0.38 per diluted share, compared to net income of $549,335, or $0.23 per diluted share in the fourth quarter a year ago.
"Despite the struggling economy, we were able to increase net income by 25.3% and maintain our strong balance sheet," said CEO Don Boone. "Effective cost controls, combined with higher demand for our Lawn, Garden, and Pet products, largely offset the continued weakness in industrial wood sales to the marine and transportation industries."
As of August 31, the Company's cash position was $8.7 million, and currently there is no borrowing against its $5.0 million line of credit. In the fourth quarter of fiscal 2010, the Company re-purchased and cancelled a total of 79,040 shares of its common stock under a 10b5-1 share re-purchase plan. The total cost was $549,151 at an average share price of $6.95 per share. Today, the Company announced a new share re-purchase plan where it can repurchase up to 345,960 common shares representing approximately 15% of the approximately 2.3 million common shares outstanding. This share repurchase plan may commence on November 8, 2010 and will remain in place until January 21, 2011 but may be limited or terminated at any time without prior notice.
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. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) AS OF AUGUST 31 |
||||
2010 |
2009 |
|||
ASSETS |
||||
Current assets |
||||
Cash and cash equivalents |
$ 8,710,314 |
$ 6,828,571 |
||
Accounts receivable, net of allowance of $17,593 (August 31, 2009 - $3,816) |
3,874,114 |
3,603,916 |
||
Inventory, net of allowance of $221,200 (August 31, 2009 - $313,000) (note 3) |
6,265,782 |
6,954,811 |
||
Note receivable |
41,500 |
41,500 |
||
Prepaid expenses |
56,696 |
160,809 |
||
Prepaid income taxes |
- |
43,805 |
||
Total current assets |
18,948,406 |
17,633,412 |
||
Property, plant and equipment, net (note 4) |
1,926,031 |
1,872,191 |
||
Intangible assets, net (note 5) |
585,714 |
662,045 |
||
Deferred income taxes (note 6) |
198,582 |
261,780 |
||
Total assets |
$ 21,658,733 |
$ 20,429,428 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current liabilities |
||||
Accounts payable |
$ 465,165 |
$ 999,562 |
||
Accrued liabilities |
1,138,866 |
816,960 |
||
Accrued income taxes |
8,133 |
- |
||
Total current liabilities |
1,612,164 |
1,816,522 |
||
Contingent liabilities and commitments (note 13) |
||||
Stockholders' equity |
||||
Capital stock (note 8) |
||||
Authorized |
||||
20,000,000 common shares, without par value |
||||
10,000,000 preferred shares, without par value |
||||
Issued |
||||
2,311,937 common shares (August 31, 2009 - 2,390,977) |
2,181,814 |
2,256,112 |
||
Additional paid-in capital |
600,804 |
600,804 |
||
Retained earnings |
17,263,951 |
15,755,990 |
||
Total stockholders' equity |
20,046,569 |
18,612,906 |
||
Total liabilities and stockholders' equity |
$ 21,658,733 |
$ 20,429,428 |
||
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) YEAR ENDED AUGUST 31 |
||||
2010 |
2009 |
|||
SALES |
$ 41,572,336 |
$ 42,130,097 |
||
COST OF SALES |
32,499,766 |
33,228,338 |
||
GROSS PROFIT |
9,072,570 |
8,901,759 |
||
OPERATING EXPENSES |
||||
Selling, general and administrative |
2,162,812 |
2,182,143 |
||
Depreciation and amortization |
264,303 |
316,964 |
||
Wages and employee benefits |
3,386,353 |
3,743,847 |
||
5,813,468 |
6,242,954 |
|||
Income from operations |
3,259,102 |
2,658,805 |
||
OTHER ITEMS |
||||
Gain on sale of property, plant and equipment |
3,008 |
2,850 |
||
Interest and other income |
12,223 |
5,445 |
||
Interest expense |
(16,231) |
(43,363) |
||
(1,000) |
(35,068) |
|||
Income before income taxes |
3,258,102 |
2,623,737 |
||
Income taxes (note 6) |
||||
Current |
1,275,288 |
1,110,170 |
||
Deferred (recovered) |
- |
(68,910) |
||
1,275,288 |
1,041,260 |
|||
Net income for the year |
$ 1,982,814 |
$ 1,582,477 |
||
Basic earnings per common share |
$ 0.83 |
$ 0.66 |
||
Diluted earnings per common share |
$ 0.83 |
$ 0.66 |
||
Weighted average number of common shares outstanding: |
||||
Basic |
2,389,894 |
2,390,977 |
||
Diluted |
2,389,894 |
2,390,977 |
||
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) YEAR ENDED AUGUST 31 |
||||
2010 |
2009 |
|||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||
Net income |
$ 1,982,814 |
$ 1,582,477 |
||
Items not affecting cash: |
||||
Depreciation and amortization |
264,303 |
316,964 |
||
Gain on sale of property, plant and equipment |
(3,008) |
(2,850) |
||
Deferred income taxes |
63,198 |
(68,910) |
||
Changes in non-cash working capital items: |
||||
(Increase) decrease in accounts receivable |
(270,198) |
1,801,945 |
||
Increase in note receivable |
- |
(41,500) |
||
Decrease in inventory |
689,029 |
1,113,473 |
||
(Increase) decrease in prepaid expenses |
104,113 |
(21,852) |
||
Decrease in accounts payable and accrued liabilities |
(212,491) |
(1,014,476) |
||
(Increase) decrease in accrued income taxes |
51,938 |
(30,052) |
||
Net cash provided by operating activities |
2,669,698 |
3,635,219 |
||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||
Proceeds on sale of property, plant and equipment |
6,500 |
2,850 |
||
Purchase of property, plant and equipment |
(245,380) |
(249,166) |
||
Net cash used in investing activities |
(238,880) |
(246,316) |
||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||
Redemption of common stock |
(549,075) |
- |
||
Repayment of notes payable |
- |
(300,000) |
||
Promissory note |
- |
(2,018,811) |
||
Net cash used in financing activities |
(549,075) |
(2,318,811) |
||
Net increase in cash and cash equivalents |
1,881,743 |
1,070,092 |
||
Cash and cash equivalents, beginning of year |
6,828,571 |
5,758,479 |
||
Cash and cash equivalents, end of year |
$ 8,710,314 |
$ 6,828,571 |
||
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
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