NORTH PLAINS, Ore.,
April 13, 2017 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: 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
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/jewett-cameron-announces-2nd-quarter-financial-results-300439630.html
SOURCE Jewett-Cameron Trading Company Ltd.