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Jewett-Cameron Announces 2nd Quarter Financial Results

NORTH PLAINS, Ore., April 13, 2017 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2017 ended February 28, 2017.

Sales for the second quarter of fiscal 2017 totaled $9.5 million compared to sales of $11.2 million for the second quarter of fiscal 2016. Income from operations was $548,234 compared to income of $340,617 for the quarter ended February 29, 2016. Net income was $309,013, or $0.14 per share, compared to net income of $131,960, or $0.05 per share, in the year-ago quarter.

For the six months ended February 28, 2017, sales totaled $19.9 million compared to sales of $23.1 million for the six months ended February 29, 2016, and income from operations was $1,340,739 compared to $1,225,821. Net income was $794,933, or $0.35 per share, compared to net income of $664,205, or $0.27 per share, in the first six months of fiscal 2016. Net income in the three and six month periods ended February 29, 2016 were negatively affected by the Company's one-time litigation expense of $115,990 from the settlement of all its ligation with Greenwood Forest Products Inc.

"We have begun stocking our new warehouse expansion with products in preparation for our historically busier second half of the fiscal year", said CEO Charlie Hopewell. "We have also begun several initiatives to increase our eCommerce and International revenues, including negotiating new sales and distribution agreements."

As of February 28, 2017, the Company's cash position was $2.0 million, and there was no borrowing against the Company's $3.0 million line of credit.

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)



February 28,
2017


August 31,
2016





ASSETS








Current assets




  Cash

$  2,018,532


$  4,519,922

  Accounts receivable, net of allowance of $1,308 (August 31, 2016 - $Nil)

4,547,741


3,342,204

  Inventory, net of allowance of $167,057 (August 31, 2016 - $176,717)

8,886,243


8,069,017

  Prepaid expenses

807,693


832,895

  Prepaid income taxes

149,487


596





  Total current assets

16,409,696


16,764,634





Property, plant and equipment, net

3,175,002


2,954,595





Intangible assets, net

114,190


150,543





Total assets

$ 19,698,888


$  19,869,772





LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities








  Accounts payable

$    302,684


$    839,972

  Accrued liabilities

1,049,803


1,473,792





  Total current liabilities

1,352,487


2,313,764





Deferred tax liability

26,813


31,353





Total liabilities

1,379,300


2,345,117





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




      2,286,294 common shares (August 31, 2016 – 2,286,294)

1,078,759


1,078,759

  Additional paid-in capital

600,804


600,804

  Retained earnings

16,640,025


15,845,092





  Total stockholders' equity

18,319,588


17,524,655





  Total liabilities and stockholders' equity

$  19,698,888


$  19,869,772





 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)



Three Month
Periods to the
end of February


Six Month
Periods to the
end of February


2017

2016


2017

2016







SALES

$  9,499,286

$ 11,188,133


$  19,921,089

$  23,129,641







COST OF SALES

7,370,224

9,152,554


15,397,585

18,714,207







GROSS PROFIT

2,129,062

2,035,579


4,523,504

4,415,434







OPERATING EXPENSES






  Selling, general and administrative expenses

453,668

531,423


1,004,717

1,074,216

  Depreciation and amortization

69,368

68,470


138,007

143,983

  Wages and employee benefits

1,057,792

1,095,069


2,040,041

1,971,414


1,580,828

1,694,962


3,182,765

3,189,613







Income from operations

548,234

340,617


1,340,739

1,225,821







OTHER ITEMS






  (Loss) gain on sale of property, plant and equipment

(393)

5,600


(393)

5,600

   Interest and other income

2,000

1,800


3,820

10,534

   Litigation expense

-

(115,990)


-

(115,990)


1,607

(108,590)


3,427

(99,856)







Income before income taxes

549,841

232,027


1,344,166

1,125,965







Income tax expense

(240,828)

(100,067)


(549,233)

(461,760)







Net income

$    309,013

$     131,960


$     794,933

$      664,205







Basic earnings per common share

$          0.14

$           0.05


$           0.35

$            0.27







Diluted earnings per common share

$          0.14

$           0.05


$           0.35

$            0.27







Weighted average number of common shares outstanding:






  Basic

2,286,294

2,476,832


2,286,294

2,476,832

  Diluted

2,286,294

2,476,832


2,286,294

2,476,832







 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)



Three Month Period
to the end of February


Six Month Period
to the end of February


2017


2016


2017


2016









CASH FLOWS FROM OPERATING ACTIVITIES








Net income

$  309,013


$  131,960


$  794,933


$  664,205

Items not involving an outlay of cash:








  Depreciation and amortization

69,368


68,470


138,007


143,983

  Loss (gain) on sale of property, plant and equipment

393


(5,600)


393


(5,600)

  Deferred income taxes

7,705


(9,301)


4,540


3,504

  Interest income on litigation

-


-


-


(6,661)

  Decrease in litigation reserve

-


(84,010)


-


(84,010)









Changes in non-cash working capital items:








  Decrease (increase) in accounts receivable

(1,161,352)


535,231


(1,205,537)


(96,348)

  Decrease (increase) in inventory

(1,197,634)


651,225


(817,226)


840,559

  Decrease in note receivable

-


360


-


1,310

  Decrease in prepaid expenses

54,425


543,620


25,202


210,611

  Increase in prepaid income taxes

(149,487)


(159,031)


(148,891)


(132,461)

  Decrease in accounts payable and accrued liabilities

 

(396,374)


(373,786)


(961,277)


 

(285,100)

  Decrease in income taxes payable

(310,974)


-


-


-









Net cash provided by (used in) operating activities

(2,774,917)


1,299,138


(2,169,856)


1,253,992









CASH FLOWS FROM INVESTING ACTIVITIES








  Purchase of property, plant and equipment

(109,393)


(37,376)


(335,014)


(47,902)

  Proceeds from sale of property, plant and

  equipment

3,480


5,600


3,480


5,600









Net cash used in investing activities

(105,913)


(31,776)


(331,534)


(42,302)









Net increase (decrease) in cash

(2,880,830)


1,267,362


(2,501,390)


1,211,690









Cash, beginning of period

4,899,362


4,360,625


4,519,922


4,416,297









Cash, end of period

$  2,018,532


$  5,627,987


$  2,018,532


$  5,627,987

 

Contact: Charlie Hopewell, President & CEO, (503) 647-0110

 

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