Jewett-Cameron Announces 1st Quarter Financial Results

November 30,2015

August 31,2015

ASSETS

Current assets

  Cash

$  4,360,625

$  4,416,297

  Accounts receivable, net of allowance of $Nil (August 31, 2015 - $Nil)

4,319,826

3,688,247

  Inventory, net of allowance of $72,730 (August 31, 2015 - $120,824)

8,162,241

8,351,575

  Note receivable

360

1,310

  Prepaid expenses

1,052,468

719,459

  Prepaid income taxes

-

26,570

  Total current assets

17,895,520

17,203,458

Property, plant and equipment, net 

2,184,901

2,231,711

Intangible assets, net 

205,073

223,250

Total assets

$  20,285,494

$  19,658,419

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

  Accounts payable

$  955,516

$  984,955

  Litigation reserve 

84,010

90,671

  Accrued liabilities

1,142,483

1,024,358

  Total current liabilities

2,182,009

2,099,984

Deferred tax liability 

47,105

34,300

Total liabilities

2,229,114

2,134,284

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

      2,476,832 common shares (August 31, 2015 – 2,476,832)

1,168,712

1,168,712

  Additional paid-in capital

600,804

600,804

  Retained earnings

16,286,864

15,754,619

  Total stockholders' equity

18,056,380

17,524,135

  Total liabilities and stockholders' equity

$  20,285,494

$  19,658,419

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Months EndedNovember 30,

2015

2014

SALES

$  11,941,508

$  7,982,617

COST OF SALES

9,561,653

6,112,594

GROSS PROFIT

2,379,855

1,870,023

OPERATING EXPENSES

  Selling, general and administrative expenses

542,793

461,448

  Depreciation and amortization

75,513

69,083

  Wages and employee benefits

876,345

809,593

1,494,651

1,340,124

Income from operations

885,204

529,899

OTHER ITEMS

Interest and other income

8,734

6,895

8,734

6,895

Income before income taxes

893,938

536,794

Income tax expense

(361,693)

(209,007)

Net income

$  532,245

$   327,787

Basic earnings per common share

$        0.21

$         0.12

Diluted earnings per common share

$        0.21

$         0.12

Weighted average number of common shares outstanding:

  Basic

2,476,832

2,688,942

  Diluted

2,476,832

2,688,942

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Month PeriodsEnded November 30,

2015

2014

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$   532,245

$    327,787

Items not involving an outlay of cash:

  Depreciation and amortization

75,513

69,083

  Deferred income taxes

12,805

3,717

  Interest income on litigation

(6,661)

(6,661)

Changes in non-cash working capital items:

  Increase in accounts receivable

(631,579)

(277,686)

  (Increase) decrease in inventory

189,334

(1,590,622)

  Decrease in note receivable

950

15,000

  Decrease in prepaid income taxes

26,570

205,171

  (Increase) decrease in prepaid expenses

(333,009)

192,557

  Increase in accounts payable and accrued liabilities

88,686

12,848

Net cash used by operating activities

(45,146)

(1,048,806)

CASH FLOWS FROM INVESTING ACTIVITIES

  Purchase of property, plant and equipment

(10,526)

(1,280)

Net cash used in investing activities

(10,526)

(1,280)

CASH FLOWS FROM FINANCING ACTIVITIES

  Redemption of common stock

-

(1,292,477)

  Net cash used in financing activities

-

(1,292,477)

Net decrease in cash

(55,672)

(2,342,563)

Cash, beginning of period

4,416,297

4,327,540

Cash, end of period

$  4,360,625

$  1,984,977