JCTCF out with their earnings. Minus a one time gain last year, EPS was .20 vs. .16. Revs were down from 18.9M to 16.4M. However, JCTCF recently signed on PetSmart and Fred Meyer to sell items from their new pet product line. On March 20th, they announced contracts w/ 2 major national home centers (724 stores) to sell their proprietary Adjust-A-Gate system. Once these new contracts start bearing fruit, JCTCF should start showing some improved numbers. Even if you annualize this Q, JCTCF is trading with a p/e of just 8.9 based on today's closing price of $7.12.
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Jewett-Cameron Announces Second Quarter 2007 Results
Tuesday April 10, 6:46 pm ET
Sales for the Quarter Were Down 14%, but Earnings from Operations Were up 29% vs. the Same Period a Year Ago; Outlook is Positive
NORTH PLAINS, Ore.--(BUSINESS WIRE)--Jewett-Cameron Trading Company Ltd. (NASDAQ:JCTCF - News; TSX:JCT - News) today reported financial results for the second quarter and six months ended February 28, 2007.
Sales for the second quarter of 2007 totaled $16.4 million compared to sales of $18.9 million for the second quarter of 2006. The company reported net income of $0.3 million or $.20 per diluted share compared to net income of $0.6 million or $.39 per diluted share in the same period a year ago. However, the year ago period included a pre-tax gain of $0.6 million related to the sale of the company's distribution center in Utah, and excluding this item net income a year ago was $.16 per diluted share.
For the six months ended February 28, 2007 Jewett-Cameron reported sales of $31.9 million compared to $37.2 million for the same period a year ago. Net income for the first six months of fiscal 2007 was $0.6 million or $.38 per diluted share compared to net income of $1.2 million or $.74 per diluted share in the same period a year ago. The year ago period included the gain on the sale of the distribution center, and if this is excluded, net income for that period was $.51 per diluted share.
"Total company sales for the second quarter were down about 14% from the prior year, yet net income and earnings per share excluding the gain from the sale of property last year were up about 29%," said CEO Don Boone. "This reflects a coupling of a year over year sales decline in our industrial wood segment with more steady sales in our lumber and building materials segment, which includes higher profit sales than the industrial segment. In fact we continue to experience good sales increases in our non-wood specialty products like dog kennels, our proprietary fence gate systems, perimeter fencing, and greenhouses."
Mr. Boone went on to add, "Market conditions are continuing to be difficult for our industrial wood segment. However, in the lumber and building materials segment the third quarter is shaping up to be a good one. A seasonal surge in fencing sales will positively impact our third quarter, and we continue to have good success in increasing sales of our specialty non-wood products."
Stock Split
At Jewett-Cameron's annual meeting, which was held on March 9, 2007, shareholders approved a three for two stock split, which was distributed on or about March 23, 2007 to holders of record on March 19, 2007. The stock started trading on a post-split basis on March 15, 2007.
Financial results for the second quarter and six months ended February 28, 2007 do not reflect this stock split.
About Jewett-Cameron Trading Company Ltd.
Jewett-Cameron is a wholesale distributor of specialty wood products principally for applications in the marine and transportation industries. The company is also a wholesaler of building materials and a manufacturer and distributor of specialty wood and metal products for home centers and other retailers. Other activities at Jewett-Cameron include the processing and distribution of agricultural seed and the distribution of pneumatic air tools and industrial clamps. The area of most significant growth within Jewett-Cameron is the manufacture and distribution of specialty metal products like dog kennels, gate support systems, perimeter fencing, and greenhouses.
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