NORTH PLAINS, Ore.,
July 14, 2016 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today
reported financial results for the third quarter and nine month
periods of fiscal 2016 ended May 31,
2016.
Sales for the third quarter of fiscal 2016 totaled $14.5 million compared to sales of $13.3 million for the third quarter of fiscal
2015. Income from operations was $1,504,952 compared to $779,340 for the third quarter ended May 31, 2015. Net income after other items and
income taxes for the current quarter was $908,730, or $0.37
per share, compared to $461,100, or
$0.18 per share, in the year-ago
quarter.
For the nine months ended May 31,
2016, Jewett-Cameron reported sales of $37.6 million compared to sales of $30.8 million for the nine months ended
May 31, 2015. Net income was
$1,572,935, or $0.64 per share, compared to net income of
$1,072,447, or $0.41 per share, in the first nine months of
fiscal 2015.
"The new products we have introduced over the last 12 months
continue to be well received by our customers," said CEO
Don Boone. "We have also begun
construction of a warehouse expansion at our North Plains headquarters which will allow us
to introduce additional new product lines going forward."
As of May 31, 2016, the Company's
cash position was $6.3 million, and
there was 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.
On March 7, 2016, the Company
announced the Board of Directors approved a share repurchase plan
to purchase for cancellation up to 250,000 common shares under Rule
10b5-1 of the U.S. Securities Exchange Act of 1934. During the
3rd quarter of fiscal 2016 ended May 31, 2016, the Company repurchased and
cancelled 63,386 common shares at a cost of $745,878 which is an average price of
$11.77. Subsequent to the end of the
period, the Company repurchased and cancelled an additional 42,742
common shares at a cost of $489,274
which is an average price of $11.45
per share. Donald M. Boone, CEO,
President and Director, has also voluntarily returned 15,000 common
shares to the Company's treasury for cancellation in June 2016, which was in addition to the 15,000
common shares he returned to the Company for cancellation in
August 2015. The Company paid no
consideration for these 30,000 shares.
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)
|
|
|
May
31,
2016
|
|
August
31,
2015
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
$
6,285,575
|
|
$
4,416,297
|
|
Accounts
receivable, net of allowance of $Nil (August 31, 2015 - $Nil)
|
4,382,438
|
|
3,688,247
|
|
Inventory, net
of allowance of $189,761 (August
31, 2015 - $120,824) (note 3)
|
7,297,894
|
|
8,351,575
|
|
Note
receivable
|
-
|
|
1,310
|
|
Prepaid
expenses
|
780,708
|
|
719,459
|
|
Prepaid income
taxes
|
-
|
|
26,570
|
|
|
|
|
|
Total current
assets
|
18,746,615
|
|
17,203,458
|
|
|
|
|
|
Property, plant and
equipment, net (note 4)
|
2,138,800
|
|
2,231,711
|
|
|
|
|
|
Intangible assets,
net (note 5)
|
168,720
|
|
223,250
|
|
|
|
|
|
Total
assets
|
$
21,054,135
|
|
$
19,658,419
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
1,304,549
|
|
$
984,955
|
|
Litigation
reserve (note 12(a))
|
-
|
|
90,671
|
|
Accrued
liabilities
|
1,394,191
|
|
1,024,358
|
|
|
|
|
|
Total current
liabilities
|
2,698,740
|
|
2,099,984
|
|
|
|
|
|
Deferred tax
liability (note 6)
|
4,203
|
|
34,300
|
|
|
|
|
|
Total
liabilities
|
2,702,943
|
|
2,134,284
|
|
|
|
|
|
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
|
|
|
|
|
2,413,446 common
shares (August 31, 2015 – 2,476,832)
|
1,138,590
|
|
1,168,712
|
|
Additional
paid-in capital
|
600,804
|
|
600,804
|
|
Retained
earnings
|
16,611,798
|
|
15,754,619
|
|
|
|
|
|
Total
stockholders' equity
|
18,351,192
|
|
17,524,135
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
21,054,135
|
|
$
19,658,419
|
|
|
|
|
|
JEWETT-CAMERON
TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
|
|
|
Three
Month
Period
Ended
May
31,
|
|
Nine
Month
Period
Ended
May
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
SALES
|
$
14,458,713
|
|
$
13,289,408
|
|
$
37,588,354
|
|
$
30,755,429
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
11,281,973
|
|
11,047,607
|
|
29,996,180
|
|
24,741,485
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
3,176,740
|
|
2,241,801
|
|
7,592,174
|
|
6,013,944
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
542,581
|
|
465,864
|
|
1,616,796
|
|
1,438,687
|
|
Depreciation
and amortization
|
82,978
|
|
71,211
|
|
226,961
|
|
210,894
|
|
Wages and
employee benefits
|
1,046,229
|
|
925,386
|
|
3,017,643
|
|
2,588,420
|
|
|
|
|
|
|
|
|
|
(1,671,788)
|
|
(1,462,461)
|
|
(4,861,400)
|
|
(4,238,001)
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
1,504,952
|
|
779,340
|
|
2,730,774
|
|
1,775,943
|
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
|
Gain on
sale of property, plant and equipment
|
-
|
|
-
|
|
5,600
|
|
-
|
|
Interest
and other income
|
2,978
|
|
8,534
|
|
13,538
|
|
22,617
|
|
Interest
expense
|
-
|
|
(658)
|
|
(27)
|
|
(658)
|
|
Litigation expense (Note 12(a))
|
-
|
|
-
|
|
(115,990)
|
-
|
|
|
2,978
|
|
7,876
|
|
(96,879)
|
|
21,959
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
1,507,930
|
|
787,216
|
|
2,633,895
|
|
1,797,902
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(599,200)
|
|
(326,116)
|
|
(1,060,960)
|
|
(725,455)
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
908,730
|
|
$
461,100
|
|
$
1,572,935
|
|
$
1,072,447
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
0.37
|
|
$
0.18
|
|
$
0.64
|
|
$
0.41
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share
|
$
0.37
|
|
$
0.18
|
|
$
0.64
|
|
$
0.41
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
2,458,170
|
|
2,561,702
|
|
2,470,566
|
|
2,612,199
|
|
Diluted
|
2,458,170
|
|
2,561,702
|
|
2,470,566
|
|
2,612,199
|
|
|
|
|
|
|
|
|
|
JEWETT-CAMERON
TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three
Month
Period
Ended
May
31,
|
|
Nine
Month
Period
Ended
May
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
|
$
908,730
|
|
$
461,100
|
|
$
1,572,935
|
|
$ 1,072,447
|
|
Items not involving
an outlay of cash:
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
82,978
|
|
71,211
|
|
226,961
|
|
210,894
|
|
Gain on sale
of property, plant and equipment
|
-
|
|
-
|
|
(5,600)
|
|
-
|
|
Deferred
income tax expense (recovery)
|
(33,601)
|
|
(2,163)
|
|
(30,097)
|
|
(4,872)
|
|
Interest
income on litigation
|
-
|
|
(6,734)
|
|
(6,661)
|
|
(19,983)
|
|
Decrease in
litigation reserve
|
-
|
|
-
|
|
(84,010)
|
|
-
|
|
|
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
|
|
|
(Increase)
decrease in accounts receivable
|
(597,843)
|
|
107,980
|
|
(694,191)
|
|
(2,483,168)
|
|
Decrease in
inventory
|
213,122
|
|
2,485,712
|
|
1,053,681
|
|
536,845
|
|
(Increase)
decrease in note receivable
|
-
|
|
275
|
|
1,310
|
|
13,575
|
|
(Increase)
decrease in prepaid expenses
|
(271,860)
|
|
104,098
|
|
(61,249)
|
|
41,194
|
|
(Increase)
decrease in prepaid income taxes
|
159,031
|
|
19,133
|
|
26,570
|
|
350,863
|
|
Increase
(decrease) in accounts payable and
accrued
liabilities
|
974,527
|
|
631,547
|
|
689,427
|
|
270,805
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
1,435,084
|
|
3,872,159
|
|
2,689,076
|
|
(11,400)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchase of
property, plant and equipment
|
(31,618)
|
|
(70,543)
|
|
(79,520)
|
|
(85,240)
|
|
Proceeds from
sale of property, plant and
equipment
|
-
|
|
-
|
|
5,600
|
|
-
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
(31,618)
|
|
(70,543)
|
|
(73,920)
|
|
(85,240)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from
bank indebtedness
|
-
|
|
-
|
|
-
|
|
875,386
|
|
Repayment of
bank indebtedness
|
-
|
|
(875,386)
|
|
-
|
|
(875,386)
|
|
Redemption of
common stock
|
(745,878)
|
|
(1,101,574)
|
|
(745,878)
|
|
(2,394,051)
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
(745,878)
|
|
(1,976,960)
|
|
(745,878)
|
|
(2,394,051)
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
$
657,588
|
|
$
1,824,656
|
|
$
1,869,278
|
|
$
(2,490,691)
|
|
|
|
|
|
|
|
|
|
Cash, beginning of
period
|
$
5,627,987
|
|
$
12,193
|
|
$
4,416,297
|
|
$
4,327,540
|
|
|
|
|
|
|
|
|
|
Cash, end of
period
|
$
6,285,575
|
|
$
1,836,849
|
|
$
6,285,575
|
|
$
1,836,849
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Don Boone, President
& CEO, (503) 647-0110
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/jewett-cameron-announces-3rd-quarter-financial-results-300299068.html
SOURCE Jewett-Cameron Trading Company Ltd.