Jewett-Cameron Announces 3rd Quarter Financial Results

PR Newswire

NORTH PLAINS, Ore., July 11, 2013 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (JCTCF) today reported financial results for the third quarter and nine month periods of fiscal 2013 ended May 31, 2013.

Sales for the third quarter of fiscal 2013 totaled $15.05 million compared to sales of $16.11 million for the third quarter of fiscal 2012.  For the quarter, income from operations were $1,686,508 compared to $1,556,199 in the year-ago quarter. After other items and income taxes, the Company reported net income of $1,018,564, or $0.32 per basic and diluted share, compared to net income of $937,090, or $0.29 per basic and diluted share, in last year's third quarter, after adjusting for the Company's 2 for 1 stock split effective May 2, 2013.

For the nine months ended May 31, 2013, Jewett-Cameron reported sales of $38.58 million compared to sales of $35.10 million for the nine months ended May 31, 2012. Income from operations was $3,437,952 in the current nine month period compared to income of $2,391,570 in the year-ago nine month period. The current nine month period was positively affected by the gain on sale of property of $353,852 while the year-ago nine month period was positively affected by the reversal of Litigation Reserves totaling $1,443,629. Including the one-time gains, net income for the nine months ended May 31, 2013 was $2,289,941, or $0.73 per basic and diluted share, compared to net income of $2,288,897, or $0.65 per basic and diluted share, in the prior nine month period, after adjustment for the 2 for 1 stock split.

"An increasing shift towards e-commerce sales of our metal products through our customer's online websites has resulted in lower costs and higher margins," said CEO Don Boone. "We also completed the 2 for 1 stock split of our common shares, and our strong cash position combined with the additional liquidity corresponds to our practice of implementing share re-purchase programs, which we believe is an effective method of enhancing shareholder value."

As of May 31st, 2013, the Company's cash position was $7.68 million, and there is currently no borrowing against its $5.0 million line of credit. During the nine months ended May 31, 2013, the company repurchased and cancelled a total of 814 common shares at a total cost of $4,884, which represents an average price of $6.00 per share. On May 29, 2013, the Company announced the implementation of a new share repurchase plan for the purchase and cancellation of up to 400,000 common shares, which represents approximately 13% of the approximately 3.1 million shares outstanding. The plan commenced on June 3, 2013, and will remain in place until August 16, 2013, 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 Lumber Corporation'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.

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,

2013


August 31,

2012





ASSETS








Current assets




  Cash

$    7,678,879


$     7,309,388

  Accounts receivable, net of allowance 

     of $0 (August 31, 2012 - $6,509)

 

4,820,700


 

3,092,842

  Inventory, net of allowance

      of $139,333 (August 31, 2012 - $139,869) (note 3)

 

4,674,912


 

7,085,389

  Note receivable

15,000


20,000

  Prepaid expenses

1,890,437


388,957

  Prepaid income taxes

125,868


-





  Total current assets

19,205,796


17,896,576





Property, plant and equipment, net (note 4)

1,995,645


1,997,109





Intangible assets, net (note 5)

384,767


444,203





Deferred income taxes (note 6)

-


101,573





Total assets

$  21,586,208


$  20,439,461





LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities








  Accounts payable

$      410,948


$  1,577,182

  Litigation reserve (note 12(a))

150,837


170,819

  Accrued liabilities

1,215,732


1,181,067

  Accrued income taxes

-


37,203





  Total current liabilities

1,777,517


2,966,271





Deferred tax liability (note 6)

50,444


-





Total liabilities

1,827,961


2,966,271





Contingent liabilities and commitments (note 12)








Stockholders' equity




  Capital stock (note 8)




Authorized




      21,567,564 common shares, without par value




      10,000,000 preferred shares, without par value




Issued




      3,135,128 common shares (August 31, 2012 – 3,135,942)

1,479,337


1,479,721

  Additional paid-in capital

600,804


600,804

  Retained earnings

17,678,106


15,392,665





  Total stockholders' equity

19,758,247


17,473,190





  Total liabilities and stockholders' equity

$  21,586,208


$  20,439,461

 

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)






Three Month Periods

to May 31,


Nine Month Periods

to May 31,


2013


2012


2013


2012









SALES

$ 15,051,509


$ 16,113,435


$ 38,575,738


$ 35,105,842









COST OF SALES

12,021,388


13,306,308


31,114,942


28,741,219









GROSS PROFIT

3,030,121


2,807,127


7,460,796


6,364,623









OPERATING EXPENSES








  Selling, general and administrative expenses

372,191


233,947


1,176,173


1,122,892

  Depreciation and amortization

66,735


61,279


188,431


186,773

  Wages and employee benefits

904,687


955,702


2,658,240


2,663,388


1,343,613


1,250,928


4,022,844


3,973,053









Income from operations

1,686,508


1,556,199


3,437,952


2,391,570









OTHER ITEMS








   Gain on sale of property, plant and equipment

 

-


 

-


 

353,852


 

-

   Interest and other income

6,734


7,234


30,049


7,234

   Interest expense (note 12(a))

-


(743)


(400)


(743)

   Litigation income (note 12(a))

-


-


-


1,443,629


6,734


6,491


383,501


1,450,120









Income before income taxes

1,693,242


1,562,690


3,821,453


3,841,690









Income tax expense

(674,678)


(625,600)


(1,531,512)


(1,552,793)









Net income

$   1,018,564


$     937,090


$  2,289,941


$  2,288,897









Basic earnings per common share

$            0.32


$           0.29


$            0.73


$            0.65









Diluted earnings per common share

$            0.32


$           0.29


$            0.73


$            0.65









Weighted average number of common shares outstanding:








  Basic

3,135,128


3,199,702


3,135,641


3,547,718

  Diluted

3,135,128


3,199,702


3,135,641


3,547,718









 

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)






Three Month Periods

to May 31,


Nine Month Periods

to May 31,


2013


2012


2013


2012









CASH FLOWS FROM OPERATING ACTIVITIES








Net income

$  1,018,564


$    937,090


$  2,289,941


$ 2,288,897

Items not involving an outlay of cash:








  Depreciation and amortization

66,735


61,279


188,431


186,773

  Gain on sale of property, plant and equipment

-


-


(353,852)


-

  Deferred income tax expense

594


495


152,017


2,052

  Interest income on litigation

(6,734)


-


(19,982)


-









Changes in non-cash working capital items:








  (Increase) decrease in accounts receivable

2,474,524


(1,219,911)


(1,727,858)


(1,276,868)

  Decrease in inventory

1,017,381


1,484,917


2,410,477


817,143

  (Increase) decrease in note receivable

(15,000)


-


5,000


(20,000)

  Increase in prepaid expenses

(459,525)


(506,245)


(1,501,480)


(859,629)

  (Increase) decrease in prepaid income taxes

128,084


-


(125,868)


682,527

  Decrease in accounts payable and

  accrued liabilities

 

(835,443)


 

(16,511)


 

(1,131,569)


 

(1,035,089)

  Increase (decrease) in accrued income taxes

-


(24,188)


(37,203)


204,170









Net cash provided by operating activities

3,389,180


716,926


148,054


989,976









CASH FLOWS FROM INVESTING ACTIVITIES








  Purchase of property, plant and equipment

(52,889)


(5,675)


(183,679)


(36,206)

  Purchase of intangible assets and other

-


-


-


(13,050)

  Proceeds from sale of property, plant and

  equipment

 

-


 

-


 

410,000


 

-









Net cash provided by (used in) investing activities

(52,889)


(5,675)


226,321


(49,256)









CASH FLOWS FROM FINANCING ACTIVITIES








  Redemption of common stock

-


(382,510)


(4,884)


(3,075,559)









Net cash used in financing activities

-


(382,510)


(4,884)


(3,075,559)









Net increase (decrease) in cash

3,336,291


328,741


369,491


(2,134,839)









Cash, beginning of period

4,342,588


4,310,547


7,309,388


6,774,127









Cash, end of period

$  7,678,879


$ 4,639,288


$  7,678,879


$ 4,639,288

 

Contact: Don Boone, President & CEO, (503) 647-0110

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