Jewett-Cameron Announces 2nd Quarter Financial Results
PR Newswire Jewett-Cameron Trading Company Ltd.
16 hours ago
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NORTH PLAINS, Ore., April 13, 2015 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2015 ended February 28, 2015.
Sales for the second quarter of fiscal 2015 totaled $9.5 million compared to sales of $9.7 million for the second quarter of fiscal 2014. Income from operations was $466,704 compared to income of $408,818 for the quarter ended February 28, 2014. Net income was $283,560, or $0.11 per share, compared to net income of $237,398, or $0.08 per share, in the year-ago quarter.
For the six months ended February 28, 2015, sales totaled $17.5 million compared to sales of $17.7 million for the six months ended February 28, 2014. Net income was $611,347, or $0.23 per share, compared to net income of $569,977, or $0.18 per share, in the first six months of fiscal 2014.
"During the second quarter, we experienced delays in receiving certain products from our suppliers due to the West Coast port slowdowns", said CEO Don Boone. "These delays resulted in higher freight costs and, combined with the prolonged winter weather across much of the country, delayed many shipments to our customers."
These delays also resulted in higher inventory levels and a lower cash balance at the end of the period. As of February 28, 2015, the Company's cash position was $12 thousand, and there was $875 thousand borrowed against its $1.0 million line of credit. Subsequent to the end of the period, the Company increased the size of its line of credit to $3.0 million.
On February 17, 2015, the Company implemented a new share repurchase plan to purchase for cancellation up to 300,000 common shares under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934. This amount represents approximately 11.6% of the 2,585,661 common shares outstanding. During the second quarter, no common shares were repurchased. Subsequent to the end of the period, during the month of March 2015, the Company repurchased 1,103 common shares under the Plan. The total cost was $11,406 at an average share price of $10.34 per share. The Plan will remain in place until August 14, 2015 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, 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)
February 28,
2015
August 31,
2014
ASSETS
Current assets
Cash
$ 12,193
$ 4,327,540
Accounts receivable, net of allowance of $Nil (August 31, 2014 - $Nil)
5,034,076
2,442,928
Inventory, net of allowance of $90,384 (August 31, 2014 - $111,756) (note 3)
11,102,996
9,154,129
Note receivable
1,700
15,000
Prepaid expenses
825,437
762,533
Prepaid income taxes
214,617
546,347
Total current assets
17,191,019
17,248,477
Property, plant and equipment, net (note 4)
2,058,754
2,147,387
Intangible assets, net (note 5)
259,603
295,956
Total assets
$ 19,509,376
$ 19,691,820
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Bank Indebtedness (note 7)
$ 875,386
$ -
Accounts payable
189,777
240,825
Litigation reserve (note 13(a))
104,138
117,387
Accrued liabilities
764,236
1,073,930
Total current liabilities
1,933,537
1,432,142
Deferred tax liability (note 6)
58,263
60,972
Total liabilities
1,991,800
1,493,114
Contingent liabilities and commitments (note 13)
Stockholders' equity
Capital stock (note 8)
Authorized
21,567,564 common shares, without par value
10,000,000 preferred shares, without par value
Issued
2,585,661 common shares (August 31, 2014 – 2,704,630)
1,220,064
1,276,201
Additional paid-in capital
600,804
600,804
Retained earnings
15,696,708
16,321,701
Total stockholders' equity
17,517,576
18,198,706
Total liabilities and stockholders' equity
$ 19,509,376
$ 19,691,820
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Month
Period Ended
February 28,
Six Month
Period Ended
February 28,
2015
2014
2015
2014
SALES
$ 9,483,404
$ 9,732,649
$ 17,466,021
$17,738,930
COST OF SALES
7,581,284
7,974,979
13,693,878
14,131,481
GROSS PROFIT
1,902,120
1,757,670
3,772,143
3,607,449
OPERATING EXPENSES
Selling, general and administrative expenses
511,375
446,900
972,823
838,786
Depreciation and amortization
70,600
69,531
139,683
139,550
Wages and employee benefits
853,441
832,421
1,663,034
1,676,371
1,435,416
1,348,852
2,775,540
2,654,707
Income from operations
466,704
408,818
996,603
952,742
OTHER ITEMS
Gain on sale of property, plant and equipment
-
-
-
4,109
Interest and other income
7,188
6,612
14,083
13,273
7,188
6,612
14,083
17,382
Income before income taxes
473,892
415,430
1,010,686
970,124
Income tax expense
(190,332)
(178,032)
(399,339)
(400,147)
Net income
$ 283,560
$ 237,398
$ 611,347
$ 569,977
Basic earnings per common share
$ 0.11
$ 0.08
$ 0.23
$ 0.18
Diluted earnings per common share
$ 0.11
$ 0.08
$ 0.23
$ 0.18
Weighted average number of common shares outstanding:
Basic
2,585,661
3,129,764
2,637,587
3,132,365
Diluted
2,585,661
3,129,764
2,637,587
3,132,365
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Month
Period Ended February 28,
Six Month
Period Ended February 28,
2015
2014
2015
2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 283,560
$ 237,398
$ 611,347
$ 569,977
Items not involving an outlay of cash:
Depreciation and amortization
70,600
69,531
139,683
139,550
Gain on sale of property, plant and equipment
-
-
-
(4,109)
Deferred income taxes
(6,426)
(3,802)
(2,709)
(8,366)
Interest income on litigation
(6,588)
(6,588)
(13,249)
(13,249)
Changes in non-cash working capital items:
Increase in accounts receivable
(2,313,462)
(2,018,552)
(2,591,148)
(911,509)
(Increase) decrease in inventory
(358,245)
846,025
(1,948,867)
992,265
(Increase) decrease in note receivable
(1,700)
-
13,300
15,000
Increase in prepaid expenses
(255,461)
(1,205,662)
(62,904)
(1,501,225)
(Increase) decrease in prepaid income taxes
126,559
(448,288)
331,730
(221,609)
Increase (decrease) in accounts payable and
accrued liabilities
(373,590)
837,196
(360,742)
(908,722)
Net cash used in operating activities
(2,834,753)
(1,692,742)
(3,883,559)
(1,851,997)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
(13,417)
(17,457)
(14,697)
(75,375)
Proceeds from sale of property, plant and
equipment
-
-
-
4,800
Net cash used in investing activities
(13,417)
(17,457)
(14,697)
(70,575)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank indebtedness
875,386
-
875,386
-
Redemption of common stock
-
(569,019)
(1,292,477)
(569,019)
Net cash provided by (used in) financing activities
875,386
(569,019)
(417,091)
(569,019)
Net decrease in cash
(1,972,784)
(2,279,218)
(4,315,347)
(2,491,591)
Cash, beginning of period
1,984,977
8,096,072
4,327,540
8,308,445
Cash, end of period
$ 12,193
$ 5,816,854
$ 12,193
$ 5,816,854
Contact: Don Boone, President & CEO, (503) 647-0110
