Jewett-Cameron Announces Fiscal 2011 Financial Results
NORTH PLAINS, Ore., Nov. 14, 2011 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF; TSX: JCT) today reported financial results for its fourth quarter and fiscal year ended August 31, 2011.
For the fiscal year ended August 31, 2011 Jewett-Cameron reported net income after other items and income taxes of $902,394, or $0.44 per diluted share, on sales of $42.06 million, compared to net income of $1,982,814, or $0.83 per diluted share, on sales of $41.57 million, in the same period a year ago. The net income in the current year was negatively affected by a litigation loss and related interest expenses of ($1,402,863).
Sales for the fourth quarter of fiscal 2011 totaled $11.2 million compared to sales of $14.0 million reported for the fourth quarter of fiscal 2010. The company reported net income of $647,456, or $0.34 per diluted share, compared to net income of $908,745, or $0.38 per diluted share, in the fourth quarter a year ago.
"Continued strong demand for our Lawn, Garden and Pet products combined with our efforts to increase market share with our existing customers resulted in the higher sales for the year," said CEO Don Boone. "However, our business is not immune to the difficult economy, and rising material and transportation costs are having a negative effect on our margins and net income."
As of August 31, the Company's cash position was $6.8 million, and currently there is no borrowing against its $5.0 million line of credit. In the fourth quarter of fiscal 2011, the Company re-purchased and cancelled a total of 10,500 shares of its common stock, and an additional 50,000 common shares were repurchased subsequent to the end of the fiscal year. These repurchases were made under the 10b5-1 share re-purchase plan which terminated on October 21, 2011. For the fiscal year, the Company repurchased and cancelled under formal plans of repurchase a total of 403,480 common shares at an average price of $8.58 per share. The total cost of these share repurchases in fiscal 2011 was $3,460,145.
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 |
||||
2011 |
2010 |
|||
ASSETS |
||||
Current assets |
||||
Cash and cash equivalents |
$ 6,774,127 |
$ 8,710,314 |
||
Accounts receivable, net of allowance of $0 (August 31, 2010 - $17,593) |
3,897,086 |
3,874,114 |
||
Inventory, net of allowance of $204,860 (August 31, 2010 - $221,200) (note 3) |
5,815,593 |
6,265,782 |
||
Note receivable |
41,500 |
41,500 |
||
Prepaid expenses |
848,341 |
56,696 |
||
Prepaid income taxes |
682,527 |
- |
||
Total current assets |
18,059,174 |
18,948,406 |
||
Property, plant and equipment, net (note 4) |
1,850,037 |
1,926,031 |
||
Intangible assets, net (note 5) |
510,771 |
585,714 |
||
Deferred income taxes (note 6) |
157,862 |
198,582 |
||
Total assets |
$ 20,577,844 |
$ 21,658,733 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current liabilities |
||||
Accounts payable |
$ 519,265 |
$ 465,165 |
||
Litigation reserve (Note 13(a)) |
1,627,915 |
- |
||
Accrued liabilities |
941,846 |
1,138,866 |
||
Accrued income taxes |
- |
8,133 |
||
Total current liabilities |
3,089,026 |
1,612,164 |
||
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 |
||||
1,908,457 common shares (August 31, 2010 - 2,311,937) |
1,801,043 |
2,181,814 |
||
Additional paid-in capital |
600,804 |
600,804 |
||
Retained earnings |
15,086,971 |
17,263,951 |
||
Total stockholders' equity |
17,488,818 |
20,046,569 |
||
Total liabilities and stockholders' equity |
$ 20,577,844 |
$ 21,658,733 |
||
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) YEAR ENDED AUGUST 31 |
||||
2011 |
2010 |
|||
SALES |
$ 42,056,470 |
$ 41,572,336 |
||
COST OF SALES |
33,930,109 |
32,499,766 |
||
GROSS PROFIT |
8,126,361 |
9,072,570 |
||
OPERATING EXPENSES |
||||
Selling, general and administrative |
1,680,428 |
2,162,812 |
||
Depreciation and amortization |
261,542 |
264,303 |
||
Wages and employee benefits |
3,348,143 |
3,386,353 |
||
5,290,113 |
5,813,468 |
|||
Income from operations |
2,836,248 |
3,259,102 |
||
OTHER ITEMS |
||||
Gain (loss) on sale of property, plant and equipment |
(2,652) |
3,008 |
||
Interest and other income (loss) |
(30) |
12,223 |
||
Interest expense |
(440,726) |
(16,231) |
||
Litigation loss (note 13(a)) |
(962,137) |
- |
||
(1,405,545) |
(1,000) |
|||
Income before income taxes |
1,430,703 |
3,258,102 |
||
Income taxes (note 6) |
||||
Current |
487,589 |
1,212,090 |
||
Deferred |
40,720 |
63,198 |
||
Net income for the year |
$ 902,394 |
$ 1,982,814 |
||
Basic earnings per common share |
$ 0.44 |
$ 0.83 |
||
Diluted earnings per common share |
$ 0.44 |
$ 0.83 |
||
Weighted average number of common shares outstanding: |
||||
Basic |
2,060,587 |
2,389,894 |
||
Diluted |
2,060,587 |
2,389,894 |
||
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) YEAR ENDED AUGUST 31 |
||||
2011 |
2010 |
|||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||
Net income |
$ 902,394 |
$ 1,982,814 |
||
Items not affecting cash: |
||||
Depreciation and amortization |
261,542 |
264,303 |
||
Gain (loss) on sale of property, plant and equipment |
2,652 |
(3,008) |
||
Deferred income taxes |
40,720 |
63,198 |
||
Changes in non-cash working capital items: |
||||
Increase in accounts receivable |
(22,972) |
(270,198) |
||
Decrease in inventory |
450,189 |
689,029 |
||
(Increase) decrease in prepaid expenses |
(791,645) |
104,113 |
||
Increase in prepaid income taxes |
(682,527) |
- |
||
Increase (decrease) in accounts payable and accrued liabilities |
1,484,995 |
(212,491) |
||
Increase (decrease) in accrued income taxes |
(8,133) |
51,938 |
||
Net cash provided by operating activities |
1,637,215 |
2,669,698 |
||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||
Proceeds on sale of property, plant and equipment |
5,450 |
6,500 |
||
Purchase of property, plant and equipment |
(118,707) |
(245,380) |
||
Net cash used in investing activities |
(113,257) |
(238,880) |
||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||
Redemption of common stock |
(3,460,145) |
(549,075) |
||
Net cash used in financing activities |
(3,460,145) |
(549,075) |
||
Net increase / (decrease) in cash and cash equivalents |
(1,936,187) |
1,881,743 |
||
Cash and cash equivalents, beginning of year |
8,710,314 |
6,828,571 |
||
Cash and cash equivalents, end of year |
$ 6,774,127 |
$ 8,710,314 |
||
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
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