Jewett-Cameron Announces Fiscal 2018 Financial Results
NORTH PLAINS, Ore., Nov. 15, 2018 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2018.
For the fiscal year ended August 31, 2018, Jewett-Cameron reported sales of $53.9 million and net income of $2,920,639, or $0.66 per share, compared to sales of $47.7 million and net income of $2,726,657, or $0.60 per share, for fiscal 2017.
Sales for the fourth quarter of fiscal 2018 totaled $11.2 million compared to sales of $11.1 in the prior year's fourth quarter. Net income was $700,699, or $0.16 per share, compared to net income of $725,589, or $0.16 per share, in the fourth quarter of fiscal 2017.
"While we are pleased with our increased revenue, our margins were curtailed due to market competitive pressures and higher cost of materials. The recall we initiated in November hurt our bottom line in the first and second quarters," said CEO Charlie Hopewell. "Uncertainty over the announcement of new tariffs to be imposed on certain imports into the US started to impact our business during the fourth quarter. The initial implementation of the higher tariffs on certain of our products in late September has reduced our margins and current demand for those products as we enter fiscal 2019. We are currently working with both our suppliers and customers to mitigate these additional costs as best we can while continuing to deliver high quality products on time to our customers."
As of August 31, 2018, the Company's cash position was $6.1 million, and currently there is no borrowing against its $3.0 million line of credit. During fiscal 2018, the Company repurchased for cancelation a total of 154,329 common shares at a cost of $1,271,599, which represents an average price of $8.24 per share. Subsequent to the fiscal year-end, the Company repurchased an additional 95,671 common shares at a cost of $893,376, which is an average share price of $9.34 per share. The current share repurchase plan was completed on October 24, 2018. The Board of Directors will consider implementing new share repurchase plans in the future as an effective use of the Company's cash position.
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 patented and patent pending specialty metal products, wholesale distribution of wood products, seed processing and sales, and sales of industrial tools and clamps. The Company's brands include Lucky Dog, Animal House and AKC licensed products in the expanding pet market; fencing products under the Adjust-A-Gates, Fit-Right, Perimeter Patrol, and INFINITY Euro fence systems brands; Early Start, Spring Gardner, and Weatherguard for greenhouses; and TrueShade for patio umbrellas, furniture covers and canopies. Additional information about the Company and its products can be found the Company's website at www.jewettcameron.com.
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 |
||||||
2018 |
2017 |
|||||
ASSETS |
||||||
Current assets |
||||||
Cash and cash equivalents |
$ |
6,097,463 |
$ |
5,912,250 |
||
Accounts receivable, net of allowance of $Nil (August 31, 2017 - $1,725) |
4,152,492 |
3,565,055 |
||||
Inventory, net of allowance of $75,336 (August 31, 2017 - $156,713) |
9,803,197 |
8,807,545 |
||||
Note receivable |
4,000 |
- |
||||
Prepaid expenses |
347,251 |
595,776 |
||||
Prepaid income taxes |
114,310 |
- |
||||
Total current assets |
20,518,713 |
18,880,626 |
||||
Property, plant and equipment, net |
3,105,260 |
3,222,572 |
||||
Intangible assets, net |
3,590 |
77,837 |
||||
Total assets |
$ |
23,627,563 |
$ |
22,181,035 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Current liabilities |
||||||
Accounts payable |
$ |
377,092 |
$ |
638,128 |
||
Accrued liabilities |
1,795,207 |
1,807,192 |
||||
Total current liabilities |
2,172,299 |
2,445,320 |
||||
Deferred tax liability |
81,853 |
11,344 |
||||
Total liabilities |
2,254,152 |
2,456,664 |
||||
Stockholders' equity |
||||||
Capital stock |
||||||
Authorized |
||||||
21,567,564 common shares, without par value |
||||||
10,000,000 preferred shares, without par value |
||||||
Issued |
||||||
4,314,659 common shares (August 31, 2017 – 4,468,988) |
1,017,908 |
1,054,316 |
||||
Additional paid-in capital |
600,804 |
600,804 |
||||
Retained earnings |
19,754,699 |
18,069,251 |
||||
Total stockholders' equity |
21,373,411 |
19,724,371 |
||||
Total liabilities and stockholders' equity |
$ |
23,627,563 |
$ |
22,181,035 |
||
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES |
|||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
(Expressed in U.S. Dollars) |
|||||
YEARS ENDED AUGUST 31 |
|||||
2018 |
2017 |
||||
SALES |
$ |
53,923,152 |
$ |
47,701,056 |
|
COST OF SALES |
42,325,338 |
36,621,773 |
|||
GROSS PROFIT |
11,597,814 |
11,079,283 |
|||
OPERATING EXPENSES |
|||||
Selling, general and administrative |
2,103,899 |
2,016,776 |
|||
Depreciation and amortization |
274,065 |
275,214 |
|||
Wages and employee benefits |
4,943,431 |
4,349,542 |
|||
7,321,395 |
6,641,532 |
||||
Income from operations |
4,276,419 |
4,437,751 |
|||
OTHER ITEMS |
|||||
(Loss) on sale of property, plant and equipment |
(27,022) |
(394) |
|||
Interest and other income |
30,026 |
27,894 |
|||
3,004 |
27,500 |
||||
Income before income taxes |
4,279,423 |
4,465,251 |
|||
Income taxes |
|||||
Current |
1,288,275 |
1,758,603 |
|||
Deferred (recovery) |
70,509 |
(20,009) |
|||
Net income for the year |
$ |
2,920,639 |
$ |
2,726,657 |
|
Basic earnings per common share |
$ |
0.66 |
$ |
0.60 |
|
Diluted earnings per common share |
$ |
0.66 |
$ |
0.60 |
|
Weighted average number of common shares outstanding: |
|||||
Basic |
4,430,940 |
4,545,044 |
|||
Diluted |
4,430,940 |
4,545,044 |
|||
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES |
|||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||
(Expressed in U.S. Dollars) |
|||||
YEARS ENDED AUGUST 31 |
|||||
2018 |
2017 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||
Net income for the year |
$ |
2,920,639 |
$ |
2,726,657 |
|
Items not affecting cash: |
|||||
Depreciation and amortization |
274,065 |
275,214 |
|||
Loss on sale of property, plant and equipment |
27,022 |
394 |
|||
Deferred income taxes |
70,509 |
(20,009) |
|||
Changes in non-cash working capital items: |
|||||
(Increase) in accounts receivable |
(587,437) |
(222,851) |
|||
(Increase) in note receivable |
(4,000) |
- |
|||
(Increase) in inventory |
(995,652) |
(738,528) |
|||
Decrease in prepaid expenses |
248,525 |
237,119 |
|||
(Increase) decrease in prepaid income taxes |
(114,310) |
596 |
|||
(Decrease) increase in accounts payable and accrued liabilities |
(273,021) |
131,556 |
|||
Net cash provided by operating activities |
1,566,340 |
2,390,148 |
|||
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||
Proceeds on sale of property, plant and equipment |
1,000 |
3,480 |
|||
Purchase of property, plant and equipment |
(110,528) |
(474,359) |
|||
Net cash used in investing activities |
(109,528) |
(470,879) |
|||
CASH FLOWS FROM FINANCING ACTIVITIES |
|||||
Redemption of common stock |
(1,271,599) |
(526,941) |
|||
Net cash used in financing activities |
(1,271,599) |
(526,941) |
|||
Net increase in cash |
185,213 |
1,392,328 |
|||
Cash, beginning of year |
5,912,250 |
4,519,922 |
|||
Cash, end of year |
$ |
6,097,463 |
$ |
5,912,250 |
|
Contact: Charlie Hopewell, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
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