Jewett-Cameron Announces 3rd Quarter Financial Results
PR Newswire
Jewett-Cameron Trading Company Ltd.
July 20, 2015 4:35 PM
NORTH PLAINS, Ore., July 20, 2015 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (JCTCF) today reported financial results for the third quarter and nine month periods of fiscal 2015 ended May 31, 2015.
Sales for the third quarter of fiscal 2015 totaled $13.3 million compared to sales of $15.3 million for the third quarter of fiscal 2014. Income from operations was $779,340 compared to $1,552,537 for the third quarter ended May 31, 2014. Net income after other items and income taxes for the current quarter was $461,100, or $0.18 per share, compared to net income of $936,329, or $0.33 per share, in the year-ago quarter.
For the nine months ended May 31, 2015, Jewett-Cameron reported sales of $30.7 million compared to sales of $33.1 million for the nine months ended May 31, 2014. Net income was $1,072,447, or $0.41 per share, compared to net income of $1,506,306, or $0.50 per share, in the first nine months of fiscal 2014.
"The extended winter weather and West Coast port slowdowns which adversely affected our results in the second quarter continued in the third quarter," said CEO Don Boone. "These conditions negatively impacted our revenues and margins. However, we launched several new products during the quarter which were well received by the marketplace, particularly by our established customer base."
As of May 31, 2015, the Company's cash position was $1.8 million, and there was no borrowing against its $3.0 million line of credit. The Company has historically utilized its cash position by implementing share repurchase programs as an effective method of enhancing shareholder value. 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. During the second quarter, no common shares were repurchased. During the third quarter of fiscal 2015 ended May 31, 2015, the Company repurchased and cancelled 89,051 common shares at a total cost of $1,101,574 which represents an average price of $12.31 per share. Subsequent to the end of the third quarter, the Company re-purchased and is in the process of cancelling a total of 4,778 common shares. The total cost was $54,491 at an average share price of $11.40 per share. Effective July 17, 2015, the Board of Directors terminated the current 10b5-1 share re-purchase plan. 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 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)
May 31,
2015
August 31,
2014
ASSETS
Current assets
Cash
$ 1,836,849
$ 4,327,540
Accounts receivable, net of allowance of $Nil (August 31, 2014 - $Nil)
4,926,096
2,442,928
Inventory, net of allowance of $81,249 (August 31, 2014 - $111,756) (note 3)
8,617,284
9,154,129
Note receivable
1,425
15,000
Prepaid expenses
721,339
762,533
Prepaid income taxes
195,484
546,347
Total current assets
16,298,477
17,248,477
Property, plant and equipment, net (note 4)
2,076,263
2,147,387
Intangible assets, net (note 5)
241,426
295,956
Total assets
$ 18,616,166
$ 19,691,820
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$ 626,523
$ 240,825
Litigation reserve (note 13(a))
97,404
117,387
Accrued liabilities
959,037
1,073,930
Total current liabilities
1,682,964
1,432,142
Deferred tax liability (note 6)
56,100
60,972
Total liabilities
1,739,064
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
2,496,610 common shares (August 31, 2014 – 2,704,630)
1,178,044
1,276,201
Additional paid-in capital
600,804
600,804
Retained earnings
15,098,254
16,321,701
Total stockholders' equity
16,877,102
18,198,706
Total liabilities and stockholders' equity
$ 18,616,166
$ 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
May 31,
Nine Month
Period Ended
May 31,
2015
2014
2015
2014
SALES
$ 13,289,408
$ 15,335,570
$ 30,755,429
$ 33,074,500
COST OF SALES
11,047,607
12,384,976
24,741,485
26,516,458
GROSS PROFIT
2,241,801
2,950,594
6,013,944
6,558,042
OPERATING EXPENSES
Selling, general and administrative expenses
465,864
402,013
1,438,687
1,240,800
Depreciation and amortization
71,211
73,145
210,894
212,694
Wages and employee benefits
925,386
922,899
2,588,420
2,599,270
(1,462,461)
(1,398,057)
(4,238,001)
(4,052,764)
Income from operations
779,340
1,552,537
1,775,943
2,505,278
OTHER ITEMS
Gain on sale of property, plant and equipment
-
-
-
4,109
Interest and other income
8,534
6,734
22,617
20,008
Interest expense
(658)
-
(658)
-
7,876
6,734
21,959
24,117
Income before income taxes
787,216
1,559,271
1,797,902
2,529,395
Income tax expense
(326,116)
(622,942)
(725,455)
(1,023,089)
Net income
$ 461,100
$ 936,329
$ 1,072,447
$ 1,506,306
Basic earnings per common share
$ 0.18
$ 0.33
$ 0.41
$ 0.50
Diluted earnings per common share
$ 0.18
$ 0.33
$ 0.41
$ 0.50
Weighted average number of common shares outstanding:
Basic
2,561,702
2,866,273
2,612,199
3,042,692
Diluted
2,561,702
2,866,273
2,612,199
3,042,692
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Month
Period Ended
May 31,
Nine Month
Period Ended
May 31,
2015
2014
2015
2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 461,100
$ 936,329
$ 1,072,447
$ 1,506,306
Items not involving an outlay of cash:
Depreciation and amortization
71,211
73,145
210,894
212,694
Gain on sale of property, plant and equipment
-
-
-
(4,109)
Deferred income tax expense (recovery)
(2,163)
2,355
(4,872)
(6,011)
Interest income on litigation
(6,734)
(6,734)
(19,983)
(19,982)
Changes in non-cash working capital items:
(Increase) decrease in accounts receivable
107,980
(666,858)
(2,483,168)
(1,578,367)
Decrease in inventory
2,485,712
283,331
536,845
1,275,596
(Increase) decrease in note receivable
275
(15,000)
13,575
-
(Increase) decrease in prepaid expenses
104,098
762,010
41,194
(739,215)
(Increase) decrease in prepaid income taxes
19,133
174,587
350,863
(47,022)
Increase (decrease) in accounts payable and
accrued liabilities
631,547
133,976
270,805
(774,746)
Net cash provided by (used in) operating activities
3,872,159
1,677,141
(11,400)
(174,856)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
(70,543)
(18,899)
(85,240)
(94,274)
Proceeds from sale of property, plant and equipment
-
-
-
4,800
Net cash used in investing activities
(70,543)
(18,899)
(85,240)
(89,474)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank indebtedness
-
-
875,386
-
Repayment of bank indebtedness
(875,386)
-
(875,386)
-
Redemption of common stock
(1,101,574)
(3,234,699)
(2,394,051)
(3,803,718)
Net cash used in financing activities
(1,976,960)
(3,234,699)
(2,394,051)
(3,803,718)
Net increase (decrease) in cash
$ 1,824,656
$ (1,576,457)
$ (2,490,691)
$ (4,068,048)
Cash, beginning of period
$ 12,193
$ 5,816,854
$ 4,327,540
$ 8,308,445
Cash, end of period
$ 1,836,849
$ 4,240,397
$ 1,836,849
$ 4,240,397
Contact: Don Boone, President & CEO, (503) 647-0110
