NORTH PLAINS, Ore.,
Nov. 2, 2016 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today
reported financial results for its fourth quarter and fiscal year
ended August 31, 2016.
For the fiscal year ended August 31,
2016 Jewett-Cameron reported net income of $2,125,099, or $0.87 per share, on sales of $48.11 million compared to net income of
$1,773,971, or $0.69 per share, on sales of $42.24 million reported for fiscal 2015.
Sales for the fourth quarter of fiscal 2016 totaled $10.5 million compared to sales of $11.5 million for the fourth quarter of fiscal
2015. Net income was $552,164, or
$0.23 per diluted share, compared to
net income of $701,524, or
$0.27 per diluted share, in the
fourth quarter of fiscal 2015.
"The continued acceptance of several new products we introduced
beginning in fiscal 2015 has had a positive effect on our sales and
financial results" said CEO Don
Boone. "We are also continuing construction of a warehouse
expansion at our North Plains
headquarters which will support the distribution of additional new
products in the future".
During fiscal 2016, the Company settled all of the litigation
with Greenwood Forest Products, Inc. The Company made a cash
payment of $200,000 to Greenwood
Forest Products, Inc., as full settlement and termination of the
litigation.
As of August 31, 2016, the
Company's cash position was $4.5
million, and currently there is no borrowing against its
$3.0 million line of credit. During
fiscal 2016, the Company repurchased and cancelled a total of
175,538 common shares at a cost of $2,124,579, which represents an average price of
$12.10. Donald M. Boone, CEO, President and Director,
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 for cancellation in August
2015. The Company paid Mr. Boone no consideration for the
30,000 shares. The Company's most recent share repurchase plan
terminated on August 25, 2016. The
Board of Directors will consider implementing new share repurchase
plans in the future as an effective use of the Company's cash
position.
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. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(Expressed in U.S.
Dollars)
|
|
AS OF AUGUST
31
|
|
|
2016
|
|
2015
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
$
4,519,922
|
|
$
4,416,297
|
|
Accounts
receivable, net of allowance of $Nil (August 31, 2015 - $Nil)
|
3,342,204
|
|
3,688,247
|
|
Inventory, net
of allowance of $176,717 (August
31, 2015 - $120,824)
|
8,069,017
|
|
8,351,575
|
|
Note
receivable
|
-
|
|
1,310
|
|
Prepaid
expenses
|
832,895
|
|
719,459
|
|
Prepaid income
taxes
|
596
|
|
26,570
|
|
|
|
|
|
Total current
assets
|
16,764,634
|
|
17,203,458
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,954,595
|
|
2,231,711
|
|
|
|
|
|
Intangible assets,
net
|
150,543
|
|
223,250
|
|
|
|
|
|
Total
assets
|
$
19,869,772
|
|
$
19,658,419
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
839,972
|
|
$
984,955
|
|
Litigation
reserve
|
-
|
|
90,671
|
|
Accrued
liabilities
|
1,473,792
|
|
1,024,358
|
|
|
|
|
|
Total current
liabilities
|
2,313,764
|
|
2,099,984
|
|
|
|
|
|
Deferred tax
liability
|
31,353
|
|
34,300
|
|
|
|
|
|
Total
liabilities
|
2,345,117
|
|
2,134,284
|
|
|
|
|
|
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, 2015 – 2,476,832)
|
1,078,759
|
|
1,168,712
|
|
Additional
paid-in capital
|
600,804
|
|
600,804
|
|
Retained
earnings
|
15,845,092
|
|
15,754,619
|
|
|
|
|
|
Total
stockholders' equity
|
17,524,655
|
|
17,524,135
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
19,869,772
|
|
$
19,658,419
|
|
|
|
|
|
JEWETT-CAMERON
TRADING COMPANY LTD. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Expressed in U.S.
Dollars)
|
|
YEARS ENDED AUGUST
31
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
SALES
|
$
48,110,998
|
|
$
42,238,151
|
|
|
|
|
|
COST OF
SALES
|
38,374,405
|
|
33,821,114
|
|
|
|
|
|
GROSS
PROFIT
|
9,736,593
|
|
8,417,037
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
Selling, general and
administrative
|
1,789,230
|
|
1,814,899
|
|
Depreciation and
amortization
|
276,268
|
|
281,762
|
|
Wages and employee
benefits
|
4,055,948
|
|
3,396,793
|
|
|
|
|
|
6,121,446
|
|
5,493,454
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
3,615,146
|
|
2,923,583
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
Gain on sale of
property, plant and equipment
|
5,600
|
|
-
|
|
Interest and other
income
|
15,164
|
|
31,993
|
|
Interest
expense
|
(27)
|
|
-
|
|
Litigation
expense
|
(115,990)
|
|
-
|
|
(95,253)
|
|
31,993
|
|
|
|
|
|
Income before income
taxes
|
3,519,893
|
|
2,955,576
|
|
|
|
|
|
Income
taxes
|
|
|
|
|
Current
|
1,394,794
|
|
1,208,277
|
|
Deferred
|
(2,947)
|
|
(26,672)
|
|
|
|
|
|
Net income for the
year
|
2,125,099
|
|
1,773,971
|
|
|
|
|
|
Basic earnings per
common share
|
$
0.87
|
|
$
0.69
|
|
|
|
|
|
Diluted earnings per
common share
|
$
0.87
|
|
$
0.69
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
Basic
|
2,435,650
|
|
2,581,850
|
|
Diluted
|
2,435,650
|
|
2,581,850
|
|
JEWETT-CAMERON
TRADING COMPANY LTD. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Expressed in U.S.
Dollars)
|
|
YEARS ENDED AUGUST
31
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM OPERATING ACTIVITIES
|
|
|
|
|
Net income for the
year
|
$
2,125,099
|
|
$
1,773,971
|
|
Items not affecting
cash:
|
|
|
|
|
Depreciation and
amortization
|
276,268
|
|
281,762
|
|
Gain on sale of
property, plant and equipment
|
(5,600)
|
|
-
|
|
Deferred income
taxes
|
(2,947)
|
|
(26,672)
|
|
Interest income on
litigation
|
(6,661)
|
|
(26,716)
|
|
Decrease in litigation
reserve
|
(84,010)
|
|
-
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
Decrease (increase) in
accounts receivable
|
346,043
|
|
(1,245,319)
|
|
Decrease in note
receivable
|
1,310
|
|
13,690
|
|
Decrease in
inventory
|
282,558
|
|
802,554
|
|
(Increase) decrease in
prepaid expenses
|
(113,436)
|
|
43,074
|
|
Decrease in prepaid
income taxes
|
25,974
|
|
519,777
|
|
Increase in accounts
payable and accrued liabilities
|
304,451
|
|
694,558
|
|
|
|
|
|
Net cash provided by
operating activities
|
3,149,049
|
|
2,830,679
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES
|
|
|
|
|
Proceeds on sale of
property, plant and equipment
|
5,600
|
|
-
|
|
Purchase of property,
plant and equipment
|
(926,445)
|
|
(293,380)
|
|
|
|
|
|
Net cash used in
investing activities
|
(920,845)
|
|
(293,380)
|
|
|
|
|
|
CASH FLOWS
FROM FINANCING ACTIVITIES
|
|
|
|
|
Redemption of common
stock
|
(2,124,579)
|
|
(2,448,542)
|
|
|
|
|
|
Net cash used in
financing activities
|
(2,124,579)
|
|
(2,448,542)
|
|
|
|
|
|
Net increase in
cash
|
103,625
|
|
88,757
|
|
|
|
|
|
Cash, beginning of
year
|
4,416,297
|
|
4,327,540
|
|
|
|
|
|
Cash, end of
year
|
4,519,922
|
|
4,416,297
|
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-fiscal-2016-financial-results-300356108.html
SOURCE Jewett-Cameron Trading Company Ltd.