NORTH PLAINS, Ore.,
April 16, 2018 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today
reported financial results for the second quarter and six month
periods of fiscal 2018 ended February 28,
2018.
Sales for the second quarter of fiscal 2018 totaled $13.3 million compared to sales of $9.5 million for the second quarter of fiscal
2017. Income from operations was $720,244 compared to income of $548,234 for the quarter ended February 28,
2017. Net income was $508,298, or
$0.23 per share, compared to net
income of $309,013, or $0.14 per share, in the year-ago quarter.
For the six months ended February 28,
2018, sales totaled $22.8
million compared to sales of $19.9
million for the six months ended February 28, 2017, and
income from operations was $1,290,546
compared to $1,340,739. Net income
was $830,731, or $0.37 per share, compared to net income of
$794,933, or $0.35 per share, in the first six months of
fiscal 2017. Sales and income in the current six month period ended
February 28, 2018 were negatively
affected by the recall of a "Black Friday" item produced for a
single customer during the first quarter of the fiscal year.
"Our higher sales during the current period were due to
increased sales of specialty lumber and the addition of several new
customers," said CEO Charlie
Hopewell. "We are continuing our efforts to add customers
through our domestic sales and distribution channels and through
new channels internationally."
As of February 28, 2018, the
Company's cash position was approximately $2.8 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 (Jewett-Cameron Companies), operate out of
facilities located in North Plains,
Oregon. Those businesses consist 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)
|
|
|
February
28, 2018
|
|
August
31, 2017
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
2,790,723
|
|
$
5,912,250
|
Accounts
receivable, net of allowance of
$Nil (August 31, 2017 - $1,725)
|
6,064,903
|
|
3,565,055
|
Inventory, net
of allowance of $139,704 (August
31, 2017 - $156,713)
|
9,289,193
|
|
8,807,545
|
Prepaid
expenses
|
883,204
|
|
595,776
|
Prepaid income
taxes
|
469,577
|
|
-
|
|
|
|
|
Total current
assets
|
19,497,600
|
|
18,880,626
|
|
|
|
|
Property, plant and
equipment, net
|
3,139,156
|
|
3,222,572
|
|
|
|
|
Intangible assets,
net
|
3,862
|
|
77,837
|
|
|
|
|
Total
assets
|
$
22,640,618
|
|
$
22,181,035
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
$
782,869
|
|
$
638,128
|
Accrued
liabilities
|
1,265,612
|
|
1,807,192
|
|
|
|
|
Total current
liabilities
|
2,048,481
|
|
2,445,320
|
|
|
|
|
Deferred tax
liability
|
37,035
|
|
11,344
|
|
|
|
|
Total
liabilities
|
2,085,516
|
|
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
|
18,899,982
|
|
18,069,251
|
|
|
|
|
Total
stockholders' equity
|
20,555,102
|
|
19,724,371
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
22,640,618
|
|
$
22,181,035
|
|
|
|
|
JEWETT-CAMERON
TRADING COMPANY LTD.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Expressed in U.S.
Dollars)
|
(Prepared by
Management)
|
(Unaudited)
|
|
|
Three
Month Periods
ended February
28,
|
|
Six
Month Periods
ended February
28,
|
|
2018
|
2017
|
|
2018
|
2017
|
|
|
|
|
|
|
SALES
|
$
13,341,338
|
$
9,499,286
|
|
$
22,755,308
|
$
19,921,089
|
|
|
|
|
|
|
COST OF
SALES
|
10,705,532
|
7,370,224
|
|
17,932,754
|
15,397,585
|
|
|
|
|
|
|
GROSS
PROFIT
|
2,635,806
|
2,129,062
|
|
4,822,554
|
4,523,504
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
Selling,
general and administrative expenses
|
616,074
|
453,668
|
|
1,061,951
|
1,004,717
|
Depreciation
and amortization
|
122,745
|
69,368
|
|
195,410
|
138,007
|
Wages and
employee benefits
|
1,176,743
|
1,057,792
|
|
2,274,647
|
2,040,041
|
|
1,915,562
|
1,580,828
|
|
3,532,008
|
3,182,765
|
|
|
|
|
|
|
Income from
operations
|
720,244
|
548,234
|
|
1,290,546
|
1,340,739
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
(Loss)
gain on sale of property, plant and equipment
|
530
|
(393)
|
|
(27,022)
|
(393)
|
Interest
and other income
|
5,793
|
2,000
|
|
8,483
|
3,820
|
|
6,323
|
1,607
|
|
(18,539)
|
3,427
|
|
|
|
|
|
|
Income before income
taxes
|
726,567
|
549,841
|
|
1,272,007
|
1,344,166
|
|
|
|
|
|
|
Income tax
expense
|
(218,269)
|
(240,828)
|
|
(441,276)
|
(549,233)
|
|
|
|
|
|
|
Net
income
|
$
508,298
|
$
309,013
|
|
$
830,731
|
$
794,933
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
0.23
|
$
0.14
|
|
$
0.37
|
$
0.35
|
|
|
|
|
|
|
Diluted earnings
per common share
|
$
0.23
|
$
0.14
|
|
$
0.37
|
$
0.35
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
Basic
|
2,234,494
|
2,286,294
|
|
2,234,494
|
2,286,294
|
Diluted
|
2,234,494
|
2,286,294
|
|
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)
|
|
|
Six Month
Period ended February
28,
|
|
2018
|
|
2017
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
830,731
|
|
$
794,933
|
Items not involving
an outlay of cash:
|
|
|
|
Depreciation
and amortization
|
195,410
|
|
138,007
|
Loss on sale
of property, plant and equipment
|
27,022
|
|
393
|
Deferred
income taxes
|
25,691
|
|
4,540
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
(Increase) in
accounts receivable
|
(2,499,848)
|
|
(1,205,537)
|
(Increase) in
inventory
|
(481,648)
|
|
(817,226)
|
(Increase)
decrease in prepaid expenses
|
(287,428)
|
|
25,202
|
(Increase) in
prepaid income taxes
|
(469,577)
|
|
(148,891)
|
(Decrease) in
accounts payable and accrued
liabilities
|
(396,839)
|
|
(961,277)
|
|
|
|
|
Net cash used in
operating activities
|
(3,056,486)
|
|
(2,169,856)
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Purchase of
property, plant and equipment
|
(66,041)
|
|
(335,014)
|
Proceeds from
sale of property, plant and equipment
|
1,000
|
|
3,480
|
|
|
|
|
Net cash used in
investing activities
|
(65,041)
|
|
(331,534)
|
|
|
|
|
Net decrease in
cash
|
(3,121,527)
|
|
(2,501,390)
|
|
|
|
|
Cash, beginning of
period
|
5,912,250
|
|
4,519,922
|
|
|
|
|
Cash, end of
period
|
$
2,790,723
|
|
$
2,018,532
|
Contact: Charlie Hopewell,
President & CEO, (503) 647-0110
View original
content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-2nd-quarter-financial-results-300630630.html
SOURCE Jewett-Cameron Trading Company Ltd.