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Jewett-Cameron Announces 2nd Quarter Financial Results

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April 13, 2015 4:20 PM EDT

NORTH PLAINS, Ore., April 13, 2015 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2015 ended February 28, 2015.

Sales for the second quarter of fiscal 2015 totaled $9.5 million compared to sales of $9.7 million for the second quarter of fiscal 2014. Income from operations was $466,704 compared to income of $408,818 for the quarter ended February 28, 2014. Net income was $283,560, or $0.11 per share, compared to net income of $237,398, or $0.08 per share, in the year-ago quarter.

For the six months ended February 28, 2015, sales totaled $17.5 million compared to sales of $17.7 million for the six months ended February 28, 2014. Net income was $611,347, or $0.23 per share, compared to net income of $569,977, or $0.18 per share, in the first six months of fiscal 2014.

"During the second quarter, we experienced delays in receiving certain products from our suppliers due to the West Coast port slowdowns", said CEO Don Boone. "These delays resulted in higher freight costs and, combined with the prolonged winter weather across much of the country, delayed many shipments to our customers."

These delays also resulted in higher inventory levels and a lower cash balance at the end of the period. As of February 28, 2015, the Company's cash position was $12 thousand, and there was $875 thousand borrowed against its $1.0 million line of credit. Subsequent to the end of the period, the Company increased the size of its line of credit to $3.0 million.

On February 17, 2015, the Company implemented a new share repurchase plan to purchase for cancellation up to 300,000 common shares under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934. This amount represents approximately 11.6% of the 2,585,661 common shares outstanding. During the second quarter, no common shares were repurchased. Subsequent to the end of the period, during the month of March 2015, the Company repurchased 1,103 common shares under the Plan. The total cost was $11,406 at an average share price of $10.34 per share. The Plan will remain in place until August 14, 2015 but may be limited or terminated at any time without prior notice.

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, 2015

August 31, 2014

ASSETS

Current assets

  Cash

$         12,193

$   4,327,540

  Accounts receivable, net of allowance of $Nil (August 31, 2014 - $Nil)

5,034,076

2,442,928

  Inventory, net of allowance of $90,384 (August 31, 2014 - $111,756) (note 3)

11,102,996

9,154,129

  Note receivable

1,700

15,000

  Prepaid expenses

825,437

762,533

  Prepaid income taxes

214,617

546,347

  Total current assets

17,191,019

17,248,477

Property, plant and equipment, net (note 4)

2,058,754

2,147,387

Intangible assets, net (note 5)

259,603

295,956

Total assets

$  19,509,376

$  19,691,820

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

  Bank Indebtedness (note 7)

$    875,386

$                -

  Accounts payable

189,777

240,825

  Litigation reserve (note 13(a))

104,138

117,387

  Accrued liabilities

764,236

1,073,930

  Total current liabilities

1,933,537

1,432,142

Deferred tax liability (note 6)

58,263

60,972

Total liabilities

1,991,800

1,493,114

Contingent liabilities and commitments (note 13)

Stockholders' equity

  Capital stock (note 8)

     Authorized

      21,567,564 common shares, without par value

      10,000,000 preferred shares, without par value

    Issued

      2,585,661 common shares (August 31, 2014 – 2,704,630)

1,220,064

1,276,201

  Additional paid-in capital

600,804

600,804

  Retained earnings

15,696,708

16,321,701

  Total stockholders' equity

17,517,576

18,198,706

  Total liabilities and stockholders' equity

$  19,509,376

$  19,691,820

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Month Period Ended February 28,

Six Month Period Ended February 28,

2015

2014

2015

2014

SALES

$  9,483,404

$  9,732,649

$ 17,466,021

$17,738,930

COST OF SALES

7,581,284

7,974,979

13,693,878

14,131,481

GROSS PROFIT

1,902,120

1,757,670

3,772,143

3,607,449

OPERATING EXPENSES

  Selling, general and administrative expenses

511,375

446,900

972,823

838,786

  Depreciation and amortization

70,600

69,531

139,683

139,550

  Wages and employee benefits

853,441

832,421

1,663,034

1,676,371

1,435,416

1,348,852

2,775,540

2,654,707

Income from operations

466,704

408,818

996,603

952,742

OTHER ITEMS

   Gain on sale of property, plant and equipment

-

-

-

4,109

   Interest and other income

7,188

6,612

14,083

13,273

7,188

6,612

14,083

17,382

Income before income taxes

473,892

415,430

1,010,686

970,124

Income tax expense

(190,332)

(178,032)

(399,339)

(400,147)

Net income

$    283,560

$    237,398

$     611,347

$     569,977

Basic earnings per common share

$          0.11

$          0.08

$           0.23

$           0.18

Diluted earnings per common share

$          0.11

$          0.08

$           0.23

$           0.18

Weighted average number of common shares outstanding:

  Basic

2,585,661

3,129,764

2,637,587

3,132,365

  Diluted

2,585,661

3,129,764

2,637,587

3,132,365

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Month Period Ended February 28,

Six Month Period Ended February 28,

2015

2014

2015

2014

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$  283,560

$   237,398

$  611,347

$ 569,977

Items not involving an outlay of cash:

  Depreciation and amortization

70,600

69,531

139,683

139,550

  Gain on sale of property, plant and equipment

-

-

-

(4,109)

  Deferred income taxes

(6,426)

(3,802)

(2,709)

(8,366)

  Interest income on litigation

(6,588)

(6,588)

(13,249)

(13,249)

Changes in non-cash working capital items:

  Increase in accounts receivable

(2,313,462)

(2,018,552)

(2,591,148)

(911,509)

  (Increase) decrease in inventory

(358,245)

846,025

(1,948,867)

992,265

  (Increase) decrease in note receivable

(1,700)

-

13,300

15,000

  Increase in prepaid expenses

(255,461)

(1,205,662)

(62,904)

(1,501,225)

  (Increase) decrease in prepaid income taxes

126,559

(448,288)

331,730

(221,609)

  Increase (decrease) in accounts payable and

  accrued liabilities

(373,590)

837,196

(360,742)

(908,722)

Net cash used in operating activities

(2,834,753)

(1,692,742)

(3,883,559)

(1,851,997)

CASH FLOWS FROM INVESTING ACTIVITIES

  Purchase of property, plant and equipment

(13,417)

(17,457)

(14,697)

(75,375)

  Proceeds from sale of property, plant and

  equipment

-

-

-

4,800

Net cash used in investing activities

(13,417)

(17,457)

(14,697)

(70,575)

CASH FLOWS FROM FINANCING ACTIVITIES

  Proceeds from bank indebtedness

875,386

-

875,386

-

  Redemption of common stock

-

(569,019)

(1,292,477)

(569,019)

Net cash provided by (used in) financing activities

875,386

(569,019)

(417,091)

(569,019)

Net decrease in cash

(1,972,784)

(2,279,218)

(4,315,347)

(2,491,591)

Cash, beginning of period

1,984,977

8,096,072

4,327,540

8,308,445

Cash, end of period

$      12,193

$ 5,816,854

$       12,193

$ 5,816,854

 

Contact: Don Boone, 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-300064911.html

SOURCE Jewett-Cameron Trading Company Ltd.


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