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Jewett-Cameron Announces Fiscal 2013 Financial Results
PR NewswirePress Release: Jewett-Cameron Trading Company Ltd. –
NORTH PLAINS, Ore., Oct. 30, 2013 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2013.
For the fiscal year ended August 31, 2013 Jewett-Cameron reported net income after other items and income taxes of $3,132,019, or $1.00 per diluted share, on sales of $49.29 million, compared to net income of $3,059,931, or $0.89 per diluted share, on sales of $45.95 million, reported for fiscal 2012. The net income in the current year was positively affected by a one-time gain on the sale of property of $353,852 and the prior year's net income was positively affected by litigation income and related interest of $1,457,096. Excluding other items and taxes, income from operations rose to $4,673,690 in fiscal 2013 from $3,563,140 in fiscal 2012.
Sales for the fourth quarter of fiscal 2013 totaled $10.7 million compared to sales of $10.8 million for the fourth quarter of fiscal 2012. The company reported net income of $842,078, or $0.27 per diluted share compared to net income of $771,034, or $0.23 per diluted share, in the fourth quarter of fiscal 2012. All per share amounts have been adjusted for the 2 for 1 stock split of the common shares effective May 2, 2013.
"Our higher sales were primarily due to successful sales efforts and the introduction of several new products," said CEO Don Boone. "We also completed an expansion of our North Plains warehouse which will more easily support the Company's sales growth."
As of August 31, 2013, the Company's cash position was $8.3 million, and currently there is no borrowing against its $5.0 million line of credit. During fiscal 2013, the company repurchased and cancelled a total of 1,006 common shares at a total cost of $7,188, which represents an average price of $7.15 per share.
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 is a wholesaler of wood products and a manufacturer and distributor of specialty metal products, sold principally 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
2013
2012
ASSETS
Current assets
Cash
$ 8,308,445
$ 7,309,388
Accounts receivable, net of allowance
of $Nil (August 31, 2012 - $6,509)
3,344,777
3,092,842
Inventory, net of allowance
of $134,259 (August 31, 2012 - $139,869) (note 3)
8,520,991
7,085,389
Note receivable
15,000
20,000
Prepaid expenses
587,609
388,957
Prepaid income taxes
270,423
-
Total current assets
21,047,245
17,896,576
Property, plant and equipment, net (note 4)
2,241,950
1,997,109
Intangible assets, net (note 5)
368,662
444,203
Deferred tax assets (note 6)
-
101,573
Total assets
$ 23,657,857
$ 20,439,461
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$ 1,715,458
$ 1,577,182
Litigation reserve (note 13(a))
144,103
170,819
Accrued liabilities
1,149,882
1,181,067
Accrued income taxes
-
37,203
Total current liabilities
3,009,443
2,966,271
Deferred tax liability (note 6)
50,393
-
Total liabilities
3,059,836
2,966,271
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
3,134,936 common shares (August 31, 2012 - 3,135,942)
1,479,246
1,479,721
Additional paid-in capital
600,804
600,804
Retained earnings
18,517,971
15,392,665
Total stockholders' equity
20,598,021
17,473,190
Total liabilities and stockholders' equity
$ 23,657,857
$ 20,439,461
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
YEAR ENDED AUGUST 31
2013
2012
SALES
$ 49,286,147
$ 45,945,530
COST OF SALES
39,455,054
37,306,129
GROSS PROFIT
9,831,093
8,639,401
OPERATING EXPENSES
Selling, general and administrative
1,503,226
1,463,550
Depreciation and amortization
256,487
244,216
Wages and employee benefits
3,397,690
3,368,495
5,157,403
5,076,261
Income from operations
4,673,690
3,563,140
OTHER ITEMS
Gain on sale of property, plant and equipment
353,852
-
Interest and other income
37,383
13,225
Litigation income (note 13(a))
-
1,443,629
391,235
1,456,854
Income before income taxes
5,064,925
5,019,994
Income taxes (note 6)
Current
1,780,940
1,903,774
Deferred
151,966
56,289
Net income for the year
$ 3,132,019
$ 3,059,931
Basic earnings per common share
$ 1.00
$ 0.89
Diluted earnings per common share
$ 1.00
$ 0.89
Weighted average number of common shares outstanding:
Basic
3,135,509
3,444,212
Diluted
3,135,509
3,444,212
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
YEAR ENDED AUGUST 31
2013
2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the year
$ 3,132,019
$ 3,059,931
Items not affecting cash:
Depreciation and amortization
256,487
244,216
Gain on sale of property, plant and equipment
(353,852)
-
Deferred income taxes
151,966
56,289
Litigation income
-
(1,443,629)
Interest income on litigation
(26,716)
(13,467)
Changes in non-cash working capital items:
Decrease (increase) in accounts receivable
(251,935)
804,244
Decrease in note receivable
5,000
21,500
Increase in inventory
(1,435,602)
(1,269,796)
Decrease (increase) in prepaid expenses
(198,652)
459,384
Decrease (increase) in prepaid income taxes
(270,423)
682,527
Increase in accounts payable and accrued liabilities
107,091
1,297,138
Increase (decrease) in accrued income taxes
(37,203)
37,203
Net cash provided by operating activities
1,078,180
3,935,540
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on sale of property, plant and equipment
410,000
-
Purchase of property, plant and equipment
(481,935)
(311,670)
Purchase of intangible assets and other
-
(13,050)
Net cash used in investing activities
(71,935)
(324,720)
CASH FLOWS FROM FINANCING ACTIVITIES
Redemption of common stock
(7,188)
(3,075,559)
Net cash used in financing activities
(7,188)
(3,075,559)
Net increase in cash
999,057
535,261
Cash, beginning of year
7,309,388
6,774,127
Cash, end of year
$ 8,308,445
$ 7,309,388
Contact: Don Boone, President & CEO, (503) 647-0110
