NORTH PLAINS, Ore.,
Jan. 16, 2018 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today
reported financial results for the first quarter of fiscal 2018
ended November 30, 2017.
Sales for the first quarter of fiscal 2018 totaled $9.4 million compared to sales of $10.4 million for the first quarter of fiscal
2017. Net income was $322,433, or
$0.14 per share, compared to
$485,920, or $0.21 per share, in the year-ago quarter.
During the current quarter, the Company was advised by a
customer for whom we annually source and supply a "Black Friday"
item that is not related to our core products that they had
experienced returns due to breakage. Since it was a child's
product, we jointly decided with the customer to immediately stop
selling the product and take the added precaution of destroying all
remaining inventory. In addition, we advised through direct email
as well as public announcement that we were aware of a defect that
may or may not be apparent on the products consumers had purchased,
but that they could return the item to the retailer for refund. We
also advised the Consumer Products Safety Commission of our
voluntary actions and are awaiting further guidance. This entire
incident applied to only one retail source and one product, but it
caused significant impact on our first quarter results as we
recognized the financial costs of this incident during the period.
Based on our continuing analysis, we anticipate limited additional
costs related to the issue.
As of November 30, 2017, the
Company's cash position was approximately $5.6 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, and the Board of Directors will consider
implementing new share repurchase plans in the future.
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 patented and patent pending specialty metal
products, wholesale distribution of wood products, seed processing
and sales, and sales of industrial tools and clamps. The Company's
brands include Lucky Dog, Animal House and AKC licensed products in
the expanding pet market; fencing products under the
Adjust-A-Gates, Fit-Right, Perimeter Patrol, and INFINITY Euro
fence systems brands; Early Start, Spring
Gardner, and Weatherguard for greenhouses; and TrueShade for
patio umbrellas, furniture covers and canopies. Additional
information about the Company and its products can be found the
Company's website at www.jewettcameron.com.
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)
|
|
|
|
|
|
November
30, 2017
|
|
August
31, 2017
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
5,560,066
|
|
$
5,912,250
|
Accounts
receivable, net of allowance
of $Nil (August 31, 2017 -
$1,725)
|
3,363,541
|
|
3,565,055
|
Inventory, net
of allowance
of
$186,713 (August 31, 2017 - $156,713)
|
9,120,135
|
|
8,807,545
|
Prepaid
expenses
|
1,040,558
|
|
595,776
|
|
|
|
|
Total current
assets
|
19,084,300
|
|
18,880,626
|
|
|
|
|
Property, plant and
equipment, net
|
3,201,768
|
|
3,222,572
|
|
|
|
|
Intangible assets,
net
|
60,323
|
|
77,837
|
|
|
|
|
Deferred income
taxes
|
10,221
|
|
-
|
|
|
|
|
Total
assets
|
$
22,356,612
|
|
$
22,181,035
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
$
544,736
|
|
$
638,128
|
Accrued
liabilities
|
1,765,072
|
|
1,807,192
|
|
|
|
|
Total current
liabilities
|
2,309,808
|
|
2,445,320
|
|
|
|
|
Deferred tax
liability
|
-
|
|
11,344
|
|
|
|
|
Total
liabilities
|
2,309,808
|
|
2,456,664
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Capital
stock
|
|
|
|
Authorized
|
|
|
|
21,567,564 common
shares, without par value
|
|
|
|
10,000,000 preferred
shares, without par value
|
|
|
|
Issued
|
|
|
|
2,234,494 common
shares (August 31, 2017 – 2,234,494)
|
1,054,316
|
|
1,054,316
|
Additional
paid-in capital
|
600,804
|
|
600,804
|
Retained
earnings
|
18,391,684
|
|
18,069,251
|
|
|
|
|
Total
stockholders' equity
|
20,046,804
|
|
19,724,371
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
22,356,612
|
|
$
22,181,035
|
|
|
|
|
|
|
|
|
|
JEWETT-CAMERON
TRADING COMPANY LTD.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Expressed in U.S.
Dollars)
|
(Prepared by
Management)
|
(Unaudited)
|
|
|
|
Three Months
Ended November
30,
|
|
2017
|
|
2016
|
|
|
|
|
SALES
|
$
9,413,970
|
|
$
10,421,804
|
|
|
|
|
COST OF
SALES
|
7,227,222
|
|
8,027,362
|
|
|
|
|
GROSS
PROFIT
|
2,186,748
|
|
2,394,442
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
Selling, general
and administrative expenses
|
445,877
|
|
551,048
|
Depreciation and
amortization
|
72,665
|
|
68,640
|
Wages and
employee benefits
|
1,097,904
|
|
982,249
|
|
|
|
|
|
1,616,446
|
|
1,601,937
|
|
|
|
|
Income from
operations
|
570,302
|
|
792,505
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
Loss on sale of
property, plant and equipment
|
(27,552)
|
|
-
|
Interest and
other income
|
2,690
|
|
1,820
|
|
(24,862)
|
|
1,820
|
|
|
|
|
Income before income
taxes
|
545,440
|
|
794,325
|
|
|
|
|
Income tax
expense
|
(223,007)
|
|
(308,405)
|
|
|
|
|
Net
income
|
$
322,433
|
|
$
485,920
|
|
|
|
|
Basic earnings per
common share
|
$
0.14
|
|
$
0.21
|
|
|
|
|
Diluted earnings per
common share
|
$
0.14
|
|
$
0.21
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
Basic
|
2,234,494
|
|
2,286,294
|
Diluted
|
2,234,494
|
|
2,286,294
|
JEWETT-CAMERON
TRADING COMPANY LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Expressed in U.S.
Dollars)
|
(Prepared by
Management)
|
(Unaudited)
|
|
|
|
Three Months
Ended November
30,
|
|
2017
|
|
2016
|
|
|
|
|
|
|
CASH FLOWS
FROM OPERATING ACTIVITIES
|
|
|
|
|
Net income
|
$
322,433
|
|
$
485,920
|
|
Items not involving an
outlay of cash:
|
|
|
|
|
Depreciation and
amortization
|
72,665
|
|
68,640
|
|
Loss on sale
of property, plant and equipment
|
27,552
|
|
-
|
|
Deferred income
taxes
|
(21,565)
|
|
(3,165)
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
Decrease
(increase) in accounts receivable
|
201,514
|
|
(44,185)
|
|
(Increase)
decrease in inventory
|
(312,590)
|
|
380,408
|
|
Decrease in
prepaid income taxes
|
-
|
|
596
|
|
(Increase) in
prepaid expenses
|
(444,782)
|
|
(29,223)
|
|
Decrease in
accounts payable and accrued liabilities
|
(135,512)
|
|
(564,903)
|
|
Increase in
income taxes payable
|
-
|
|
310,974
|
|
|
|
|
|
|
Net cash provided by
(used by) operating activities
|
(290,285)
|
|
605,062
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Purchase of
property, plant and equipment
|
(61,899)
|
|
(225,622)
|
|
|
|
|
|
|
Net cash used in
investing activities
|
(61,899)
|
|
(225,622)
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
(352,184)
|
|
379,440
|
|
|
|
|
|
|
Cash, beginning of
period
|
5,912,250
|
|
4,519,922
|
|
|
|
|
|
|
Cash, end of
period
|
$
5,560,066
|
|
$
4,899,362
|
|
Contact: Charlie Hopewell,
President & CEO, (503) 647-0110
View original
content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-1st-quarter-financial-results-300583450.html
SOURCE Jewett-Cameron Trading Company Ltd.