Jewett-Cameron Announces 1st Quarter Financial Results
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PR Newswire
Jewett-Cameron Trading Company Ltd.
January 14, 2016 4:20 PM
NORTH PLAINS, Ore., Jan. 14, 2016 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (JCTCF) today reported financial results for the first quarter of fiscal 2016 ended November 30, 2015.
Sales were $11.94 million for the first quarter of fiscal 2016 compared to sales of $7.98 million for the first quarter of fiscal 2015. Income from operations for the quarter was $885,204 compared to $529,899 in the year-ago quarter. Net income was $532,245, or $0.21 per share, for the current quarter compared to net income of $327,787, or $0.12 per share, for the first quarter of fiscal 2015.
"The increase in sales for the quarter was due to our efforts to expand our customer base to new smaller and mid-sized customers, as well as the continued acceptance of our new products introduced during fiscal 2015," said CEO Don Boone. "The new products have been particularly well-received by our established customer base, which has led to sales increases with our largest customers."
As of November 30, the Company's cash position was $4.36 million, and currently there is 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. The Company's most recent share repurchase plan was terminated on July 17, 2015. 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)
November 30,
2015
August 31,
2015
ASSETS
Current assets
Cash
$ 4,360,625
$ 4,416,297
Accounts receivable, net of allowance of $Nil (August 31, 2015 - $Nil)
4,319,826
3,688,247
Inventory, net of allowance of $72,730 (August 31, 2015 - $120,824)
8,162,241
8,351,575
Note receivable
360
1,310
Prepaid expenses
1,052,468
719,459
Prepaid income taxes
-
26,570
Total current assets
17,895,520
17,203,458
Property, plant and equipment, net
2,184,901
2,231,711
Intangible assets, net
205,073
223,250
Total assets
$ 20,285,494
$ 19,658,419
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$ 955,516
$ 984,955
Litigation reserve
84,010
90,671
Accrued liabilities
1,142,483
1,024,358
Total current liabilities
2,182,009
2,099,984
Deferred tax liability
47,105
34,300
Total liabilities
2,229,114
2,134,284
Contingent liabilities and commitments
Stockholders' equity
Capital stock
Authorized
21,567,564 common shares, without par value
10,000,000 preferred shares, without par value
Issued
2,476,832 common shares (August 31, 2015 – 2,476,832)
1,168,712
1,168,712
Additional paid-in capital
600,804
600,804
Retained earnings
16,286,864
15,754,619
Total stockholders' equity
18,056,380
17,524,135
Total liabilities and stockholders' equity
$ 20,285,494
$ 19,658,419
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Months Ended
November 30,
2015
2014
SALES
$ 11,941,508
$ 7,982,617
COST OF SALES
9,561,653
6,112,594
GROSS PROFIT
2,379,855
1,870,023
OPERATING EXPENSES
Selling, general and administrative expenses
542,793
461,448
Depreciation and amortization
75,513
69,083
Wages and employee benefits
876,345
809,593
1,494,651
1,340,124
Income from operations
885,204
529,899
OTHER ITEMS
Interest and other income
8,734
6,895
8,734
6,895
Income before income taxes
893,938
536,794
Income tax expense
(361,693)
(209,007)
Net income
$ 532,245
$ 327,787
Basic earnings per common share
$ 0.21
$ 0.12
Diluted earnings per common share
$ 0.21
$ 0.12
Weighted average number of common shares outstanding:
Basic
2,476,832
2,688,942
Diluted
2,476,832
2,688,942
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Month Periods
Ended November 30,
2015
2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 532,245
$ 327,787
Items not involving an outlay of cash:
Depreciation and amortization
75,513
69,083
Deferred income taxes
12,805
3,717
Interest income on litigation
(6,661)
(6,661)
Changes in non-cash working capital items:
Increase in accounts receivable
(631,579)
(277,686)
(Increase) decrease in inventory
189,334
(1,590,622)
Decrease in note receivable
950
15,000
Decrease in prepaid income taxes
26,570
205,171
(Increase) decrease in prepaid expenses
(333,009)
192,557
Increase in accounts payable and accrued liabilities
88,686
12,848
Net cash used by operating activities
(45,146)
(1,048,806)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
(10,526)
(1,280)
Net cash used in investing activities
(10,526)
(1,280)
CASH FLOWS FROM FINANCING ACTIVITIES
Redemption of common stock
-
(1,292,477)
Net cash used in financing activities
-
(1,292,477)
Net decrease in cash
(55,672)
(2,342,563)
Cash, beginning of period
4,416,297
4,327,540
Cash, end of period
$ 4,360,625
$ 1,984,977
Contact: Don Boone, President & CEO, (503) 647-0110
