Jewett-Cameron Announces 1st Quarter Financial Results
PR Newswire Jewett-Cameron Trading Company Ltd.
53 minutes ago
NORTH PLAINS, Ore., Jan. 13, 2014 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (JCTCF) today reported financial results for the first quarter of fiscal 2014 ended November 30, 2013.
Sales were $8.01 million for the first quarter of fiscal 2014 compared to sales of $9.30 million for the first quarter of fiscal 2013. For the quarter, income from operations was $543,924 compared to $772,385 in the year-ago quarter. Net income for the quarter was $332,579, or $0.11 per share, compared to net income of $480,746, or $0.15 per share, in the first quarter of fiscal 2013. Per share amounts have been adjusted for the 2 for 1 stock split of the common shares effective May 2, 2013.
"Our markets have become much more competitive," said CEO Don Boone. "In response, we have increased our efforts to obtain new business and expand our customer base to smaller and mid-size customers. These initiatives resulted in higher selling expenses during the quarter."
As of November 30, 2013, the Company's cash position was $8.096 million, and currently there is no borrowing against its $5.0 million line of credit. Today, the Company announced a new share re-purchase plan where it can repurchase for cancellation up to 313,493 common shares representing 10% of the approximately 3.1 million common shares outstanding. This share repurchase plan may commence on January 20, 2014 and will remain in place until May 16, 2014 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)
November 30,
2013
August 31,
2013
ASSETS
Current assets
Cash
$ 8,096,072
$ 8,308,445
Accounts receivable, net of allowance
of $Nil (August 31, 2013 - $Nil)
2,237,734
3,344,777
Inventory, net of allowance
of $134,259 (August 31, 2013 - $134,259) (note 3)
8,374,751
8,520,991
Note receivable
-
15,000
Prepaid expenses
883,172
587,609
Prepaid income taxes
43,744
270,423
Total current assets
19,635,473
21,047,245
Property, plant and equipment, net (note 4)
2,247,334
2,241,950
Intangible assets, net (note 5)
350,486
368,662
Total assets
$ 22,233,293
$ 23,657,857
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$ 453,525
$ 1,715,458
Litigation reserve (note 13(a))
137,442
144,103
Accrued liabilities
665,897
1,149,882
Total current liabilities
1,256,864
3,009,443
Deferred tax liability (note 6)
45,829
50,393
Total liabilities
1,302,693
3,059,836
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, 2013 - 3,134,936)
1,479,246
1,479,246
Additional paid-in capital
600,804
600,804
Retained earnings
18,850,550
18,517,971
Total stockholders' equity
20,930,600
20,598,021
Total liabilities and stockholders' equity
$ 22,233,293
$ 23,657,857
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Months Ended
November 30,
2013
2012
SALES
$ 8,006,281
$ 9,296,405
COST OF SALES
6,156,502
7,305,399
GROSS PROFIT
1,849,779
1,991,006
OPERATING EXPENSES
Selling, general and administrative expenses
391,886
335,820
Depreciation and amortization
70,019
57,494
Wages and employee benefits
843,950
825,307
1,305,855
1,218,621
Income from operations
543,924
772,385
OTHER ITEMS
Interest and other income
6,661
16,710
Gain on sale of equipment
4,109
-
10,770
16,710
Income before income taxes
554,694
789,095
Income tax expense
(222,115)
(308,349)
Net income
$ 332,579
$ 480,746
Basic earnings per common share
$ 0.11
$ 0.15
Diluted earnings per common share
$ 0.11
$ 0.15
Weighted average number of common shares outstanding:
Basic
3,134,936
3,135,942
Diluted
3,134,936
3,135,942
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,
2013
2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$ 332,579
$ 480,746
Items not involving an outlay of cash:
Depreciation and amortization
70,019
57,494
Gain on sale of equipment
(4,109)
-
Deferred income taxes
(4,564)
14,323
Interest income on litigation
(6,661)
(6,661)
Changes in non-cash working capital items:
Decrease in accounts receivable
1,107,043
426,020
Decrease in inventory
146,240
1,324,365
Decrease in note receivable
15,000
20,000
Decrease in prepaid income taxes
226,679
-
Increase in prepaid expenses
(295,563)
(1,579,612)
Decrease in accounts payable and accrued liabilities
(1,745,918)
(971,229)
Increase in accrued income taxes
-
293,754
Net cash provided (used) by operating activities
(159,255)
59,200
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
(57,918)
(112,133)
Proceeds from sale of equipment
4,800
-
Net cash used in investing activities
(53,118)
(112,133)
Net decrease in cash
(212,373)
(52,933)
Cash, beginning of period
8,308,445
7,309,388
Cash, end of period
$ 8,096,072
$ 7,256,455
Contact: Don Boone, President & CEO, (503) 647-0110
