NORTH PLAINS, Ore.,
Jan. 14, 2019 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today
reported financial results for the first quarter of fiscal 2019
ended November 30, 2018.
Sales for the first quarter of fiscal 2019 totaled $9.1 million compared to sales of $9.4 million for the first quarter of fiscal
2018. Net income was $349,694, or
$0.08 per share, compared to net
income of $323,433, or $0.07 per share, in the year-ago quarter.
"The implementation of higher tariffs on our products
manufactured in China had a
negative effect on our sales during the current quarter," said CEO
Charlie Hopewell. "However, our
efforts to mitigate these higher costs including some price
increases, combined with a favorable product mix, did result in
higher margins during the quarter. We also added new customers and
will continue to work to expand our client base both domestically
and internationally."
As of November 30, 2018, the
Company's cash position was approximately $5.4 million, and there was no borrowing against
its $3.0 million line of credit.
During the quarter, 95,671 common shares were repurchased at a cost
of $893,376, which is an average
share price of $9.34 per share. These
purchases completed the 250,000 share repurchase plan originally
announced in June 2018. 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, 2018
|
|
August
31, 2018
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
5,427,820
|
|
$
|
6,097,463
|
Accounts
receivable, net of allowance of
$Nil (August 31, 2018 - $Nil)
|
|
3,734,550
|
|
|
4,152,492
|
Inventory, net
of allowance of $75,336 (August
31, 2018 - $75,336)
|
|
10,925,010
|
|
|
9,803,197
|
Note
receivable
|
|
2,097
|
|
|
4,000
|
Prepaid
expenses
|
|
504,612
|
|
|
347,251
|
Prepaid income
taxes
|
|
-
|
|
|
114,310
|
|
|
|
|
|
|
Total current
assets
|
|
20,594,089
|
|
|
20,518,713
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
3,054,525
|
|
|
3,105,260
|
|
|
|
|
|
|
Intangible assets,
net
|
|
3,455
|
|
|
3,590
|
|
|
|
|
|
|
Total
assets
|
$
|
23,652,069
|
|
$
|
23,627,563
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,478,454
|
|
$
|
377,092
|
Accrued
liabilities
|
|
1,229,877
|
|
|
1,795,207
|
Income taxes
payable
|
|
27,330
|
|
|
-
|
|
|
|
|
|
|
Total current
liabilities
|
|
2,735,661
|
|
|
2,172,299
|
|
|
|
|
|
|
Deferred tax
liability (note 6)
|
|
86,679
|
|
|
81,853
|
|
|
|
|
|
|
Total
liabilities
|
|
2,822,340
|
|
|
2,254,152
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Capital
stock
|
|
|
|
|
|
Authorized
|
|
|
|
|
|
21,567,564 common
shares, without par value
|
|
|
|
|
|
10,000,000 preferred
shares, without par value
|
|
|
|
|
|
Issued
|
|
|
|
|
|
4,218,988 common
shares (August 31, 2018 – 4,314,659)
|
|
995,337
|
|
|
1,017,908
|
Additional
paid-in capital
|
|
600,804
|
|
|
600,804
|
Retained
earnings
|
|
19,233,588
|
|
|
19,754,699
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
20,829,729
|
|
|
21,373,411
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
23,652,069
|
|
$
|
23,627,563
|
JEWETT-CAMERON
TRADING COMPANY LTD.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Expressed in U.S.
Dollars)
|
(Prepared by
Management)
|
(Unaudited)
|
|
|
Three Months
Ended November
30,
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
SALES
|
$
|
9,066,100
|
|
$
|
9,413,970
|
|
|
|
|
|
|
COST OF
SALES
|
|
6,757,014
|
|
|
7,227,222
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
2,309,086
|
|
|
2,186,748
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
Selling, general
and administrative expenses
|
|
556,148
|
|
|
445,877
|
Depreciation and
amortization
|
|
50,870
|
|
|
72,665
|
Wages and
employee benefits
|
|
1,223,059
|
|
|
1,097,904
|
|
|
|
|
|
|
|
|
1,830,077
|
|
|
1,616,446
|
|
|
|
|
|
|
Income from
operations
|
|
479,009
|
|
|
570,302
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
Loss on sale of
property, plant and equipment
|
|
-
|
|
|
(27,552)
|
Interest and
other income
|
|
17,151
|
|
|
2,690
|
|
|
17,151
|
|
|
(24,862)
|
|
|
|
|
|
|
Income before income
taxes
|
|
496,160
|
|
|
545,440
|
|
|
|
|
|
|
Income tax
expense
|
|
(146,466)
|
|
|
(223,007)
|
|
|
|
|
|
|
Net
income
|
$
|
349,694
|
|
$
|
322,433
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.08
|
|
$
|
0.07
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
0.08
|
|
$
|
0.07
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
Basic
|
|
4,256,361
|
|
|
4,468,988
|
Diluted
|
|
4,256,361
|
|
|
4,468,988
|
JEWETT-CAMERON
TRADING COMPANY LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Expressed in U.S.
Dollars)
|
(Prepared by
Management)
|
(Unaudited)
|
|
|
Three Months
Ended November
30,
|
|
2018
|
|
2017
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
|
|
|
|
|
Net income
|
$
|
349,694
|
|
$
|
322,433
|
Items not involving an
outlay of cash:
|
|
|
|
|
|
Depreciation and amortization
|
|
50,870
|
|
|
72,665
|
Loss on sale of property, plant and equipment
|
|
-
|
|
|
27,552
|
Deferred income taxes
|
|
4,826
|
|
|
(21,565)
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
Decrease (increase) in accounts receivable
|
|
417,942
|
|
|
201,514
|
(Increase) decrease in inventory
|
|
(1,121,813)
|
|
|
(312,590)
|
Decrease in note receivable
|
|
1,903
|
|
|
-
|
(Increase) in prepaid expenses
|
|
(157,361)
|
|
|
(444,782)
|
Increase (decrease) in accounts payable and accrued
liabilities
|
|
536,032
|
|
|
(135,512)
|
Decrease in prepaid income taxes
|
|
114,310
|
|
|
-
|
Increase in income taxes payable
|
|
27,330
|
|
|
-
|
|
|
|
|
|
|
Net cash provided by
(used by) operating activities
|
|
223,733
|
|
|
(290,285)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
-
|
|
|
(61,899)
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
-
|
|
|
(61,899)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Redemption of common stock
|
|
(893,376)
|
|
|
-
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(893,376)
|
|
|
-
|
|
|
|
|
|
|
Net decrease in
cash
|
|
(669,643)
|
|
|
(352,184)
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
6,097,463
|
|
|
5,912,250
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
5,427,820
|
|
$
|
5,560,066
|
Contact: Charlie Hopewell,
President & CEO, (503) 647-0110
View original
content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-1st-quarter-financial-results-300777958.html
SOURCE Jewett-Cameron Trading Company Ltd.