NORTH PLAINS, Ore.,
July 17, 2017 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today
reported financial results for the third quarter and nine month
periods of fiscal 2017 ended May 31,
2017.
Sales for the third quarter of fiscal 2017 totaled $16.7 million compared to sales of $14.5 million for the third quarter of fiscal
2016. Income from operations was $2,023,238 compared to $1,504,952 for the third quarter ended
May 31, 2016. Net income after other
items and income taxes for the current quarter was $1,206,135, or $0.53 per share, compared to $908,730, or $0.37
per share, in the year-ago quarter.
For the nine months ended May 31,
2017, Jewett-Cameron reported sales of $36.6 million compared to sales of $37.6 million for the nine months ended
May 31, 2016. Net income was
$2,001,068, or $0.88 per share, compared to net income of
$1,572,935, or $0.64 per share, in the first nine months of
fiscal 2016.
"Our investments in eCommerce and expanding our international
sales have started to be reflected in this quarter's revenues and
margins," said CEO Charlie Hopewell.
"We are continuing our efforts to grow our business, including
increased utilization of our recent warehouse expansion and adding
additional personnel to support our sales initiatives."
As of May 31, 2017, the Company's
cash position was approximately $4.9
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 May 23, 2017, the Company
announced the Board of Directors approved a share repurchase plan
to purchase for cancellation up to 225,000 common shares under Rule
10b5-1 of the U.S. Securities Exchange Act of 1934. Subsequent to
the end of the 3rd quarter, the Company has repurchased
for cancellation 40,660 common shares at a cost of $511,959, which is an average price of
$12.59 per share.
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, 2017
|
|
August
31, 2016
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
4,872,068
|
|
$
4,519,922
|
Accounts
receivable, net of allowance of $Nil (August 31, 2016 - $Nil)
|
5,532,541
|
|
3,342,204
|
Inventory, net
of allowance of $157,879 (August
31, 2016 - $176,717)
|
8,053,663
|
|
8,069,017
|
Prepaid
expenses
|
772,802
|
|
832,895
|
Prepaid income
taxes
|
-
|
|
596
|
|
|
|
|
Total current
assets
|
19,231,074
|
|
16,764,634
|
|
|
|
|
Property, plant and
equipment, net
|
3,150,916
|
|
2,954,595
|
|
|
|
|
Intangible assets,
net
|
96,014
|
|
150,543
|
|
|
|
|
Total
assets
|
$
22,478,004
|
|
$
19,869,772
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
$
891,623
|
|
$
839,972
|
Accrued
liabilities
|
1,710,069
|
|
1,473,792
|
Income taxes
payable
|
317,074
|
|
-
|
|
|
|
|
Total current
liabilities
|
2,918,766
|
|
2,313,764
|
|
|
|
|
Deferred tax
liability
|
33,515
|
|
31,353
|
|
|
|
|
Total
liabilities
|
2,952,281
|
|
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
|
17,846,160
|
|
15,845,092
|
|
|
|
|
Total
stockholders' equity
|
19,525,723
|
|
17,524,655
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
22,478,004
|
|
$
19,869,772
|
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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
SALES
|
$
16,718,234
|
|
$
14,458,713
|
|
$
36,639,323
|
|
$
37,588,354
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
12,906,533
|
|
11,281,973
|
|
28,304,118
|
|
29,996,180
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
3,811,701
|
|
3,176,740
|
|
8,335,205
|
|
7,592,174
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
466,014
|
|
542,581
|
|
1,470,731
|
|
1,616,796
|
Depreciation
and amortization
|
84,693
|
|
82,978
|
|
222,700
|
|
226,961
|
Wages and
employee benefits
|
1,237,756
|
|
1,046,229
|
|
3,277,797
|
|
3,017,643
|
|
|
|
|
|
|
|
|
|
(1,788,463)
|
|
(1,671,788)
|
|
(4,971,228)
|
|
(4,861,400)
|
|
|
|
|
|
|
|
|
Income from
operations
|
2,023,238
|
|
1,504,952
|
|
3,363,977
|
|
2,730,774
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
(Loss) gain on
sale of property, plant and equipment
|
-
|
|
-
|
|
(393)
|
|
5,600
|
Interest
and other income
|
2,400
|
|
2,978
|
|
6,220
|
|
13,538
|
Interest
expense
|
-
|
|
-
|
|
-
|
|
(27)
|
Litigation expense
|
-
|
|
-
|
|
-
|
|
(115,990)
|
|
2,400
|
|
2,978
|
|
5,827
|
|
(96,879)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
2,025,638
|
|
1,507,930
|
|
3,369,804
|
|
2,633,895
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(819,503)
|
|
(599,200)
|
|
(1,368,736)
|
|
(1,060,960)
|
|
|
|
|
|
|
|
|
Net
income
|
$
1,206,135
|
|
$
908,730
|
|
$
2,001,068
|
|
$
1,572,935
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
0.53
|
|
$
0.37
|
|
$
0.88
|
|
$
0.64
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share
|
$
0.53
|
|
$
0.37
|
|
$
0.88
|
|
$
0.64
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
2,286,294
|
|
2,458,170
|
|
2,286,294
|
|
2,470,566
|
Diluted
|
2,286,294
|
|
2,458,170
|
|
2,286,294
|
|
2,470,566
|
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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net income
|
$
1,206,135
|
|
$
908,730
|
|
$
2,001,068
|
|
$
1,572,935
|
Items not involving
an outlay of cash:
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
84,693
|
|
82,978
|
|
222,700
|
|
226,961
|
Loss (gain) on
sale of property, plant and equipment
|
-
|
|
-
|
|
393
|
|
(5,600)
|
Deferred
income tax expense (recovery)
|
(2,378)
|
|
(33,601)
|
|
2,162
|
|
(30,097)
|
Interest
income on litigation
|
-
|
|
-
|
|
-
|
|
(6,661)
|
Decrease in
litigation reserve
|
-
|
|
-
|
|
-
|
|
(84,010)
|
|
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
|
|
(Increase) in
accounts receivable
|
(984,800)
|
|
(597,843)
|
|
(2,190,337)
|
|
(694,191)
|
Decrease in
inventory
|
832,580
|
|
213,122
|
|
15,354
|
|
1,053,681
|
Decrease in
note receivable
|
-
|
|
-
|
|
-
|
|
1,310
|
Decrease
(increase) in prepaid expenses
|
34,891
|
|
(271,860)
|
|
60,093
|
|
(61,249)
|
Decrease in
prepaid income taxes
|
149,487
|
|
159,031
|
|
596
|
|
26,570
|
Increase in
accounts payable and accrued liabilities
|
1,249,205
|
|
974,527
|
|
287,928
|
|
689,427
|
Increase in
income taxes payable
|
317,074
|
|
-
|
|
317,074
|
|
-
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
2,886,887
|
|
1,435,084
|
|
717,031
|
|
2,689,076
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Purchase of
property, plant and equipment
|
(33,351)
|
|
(31,618)
|
|
(368,365)
|
|
(79,520)
|
Proceeds from
sale of property, plant and equipment
|
-
|
|
-
|
|
3,480
|
|
5,600
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
(33,351)
|
|
(31,618)
|
|
(364,885)
|
|
(73,920)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Redemption of
common stock
|
-
|
|
(745,878)
|
|
-
|
|
(745,878)
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
-
|
|
(745,878)
|
|
-
|
|
(745,878)
|
|
|
|
|
|
|
|
|
Net increase in
cash
|
2,853,536
|
|
657,588
|
|
352,146
|
|
1,869,278
|
|
|
|
|
|
|
|
|
Cash, beginning of
period
|
2,018,532
|
|
5,627,987
|
|
4,519,922
|
|
4,416,297
|
|
|
|
|
|
|
|
|
Cash, end of
period
|
$
4,872,068
|
|
$
6,285,575
|
|
$
4,872,068
|
|
$
6,285,575
|
Contact: Charlie Hopewell,
President & CEO, (503) 647-0110
View original
content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-3rd-quarter-financial-results-300489278.html
SOURCE Jewett-Cameron Trading Company Ltd.