Jewett-Cameron Announces 2nd Quarter Financial Results

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 8/20/2026

1. TGT
2. EL
3. SPY
4. ROST
5. BILL
6. WMT
7. ADI
8. MRK
9. MRNA
10. LOW

April 13, 2016 4:15 PM EDT

NORTH PLAINS, Ore., April 13, 2016 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2016 ended February 29, 2016.

Sales for the second quarter of fiscal 2016 totaled $11.2 million compared to sales of $9.5 million for the second quarter of fiscal 2015. Income from operations was $340,617 compared to income of $466,704 for the quarter ended February 28, 2015. Net income was $131,960, or $0.05 per share compared to net income of $283,560, or $0.11 per share, in the year-ago quarter.

For the six months ended February 29, 2016, sales totaled $23.1 million compared to sales of $17.5 million for the six months ended February 28, 2015. Net income was $664,205, or $0.27 per share, compared to net income of $611,347, or $0.23 per share, in the first six months of fiscal 2015.

During the current quarter, the Company settled all its litigation with Greenwood Forest Products Inc. dating from the acquisition of inventory in 2003. The settlement resulted in a one-time litigation expense of $115,990, which had a negative effect on the net income for the quarter and six month periods ended February 29, 2016.

"During the second quarter, our higher sales were primarily a result of our efforts to attract new customers and the introduction of several new products last year," said CEO Don Boone. "We also settled all our litigation with Greenwood Forest Products Inc. Although it negatively affected our net income for the current periods, we are pleased to put this lengthy litigation and the related costs behind us."

As of February 29, 2016, the Company's cash position was $5.6 million, and there was no borrowing against the Company's $3.0 million line of credit.

On March 7, 2016, the Company implemented a new share repurchase plan to purchase for cancellation up to 250,000 common shares under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934. This amount represents approximately 10.1% of the 2,476,832 common shares outstanding. Subsequent to the end of the period, the Company repurchased 5,042 common shares under the Plan. The total cost was $56,596 at an average share price of $11.22 per share. The Plan will remain in place until August 25, 2016 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 29,2016

August 31,2015

ASSETS

Current assets

  Cash

$  5,627,987

$  4,416,297

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

3,784,595

3,688,247

  Inventory, net of allowance of $147,730 (August 31, 2015 - $120,824)

7,511,016

8,351,575

  Note receivable

-

1,310

  Prepaid expenses

508,848

719,459

  Prepaid income taxes

159,031

26,570

  Total current assets

17,591,477

17,203,458

Property, plant and equipment, net

2,171,983

2,231,711

Intangible assets, net

186,897

223,250

Total assets

$  19,950,357

$  19,658,419

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

  Accounts payable

$  753,336

$  984,955

  Litigation reserve

-

90,671

  Accrued liabilities

970,877

1,024,358

  Total current liabilities

1,724,213

2,099,984

Deferred tax liability

37,804

34,300

Total liabilities

1,762,017

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

16,418,824

15,754,619

  Total stockholders' equity

18,188,340

17,524,135

  Total liabilities and stockholders' equity

$  19,950,357

$  19,658,419

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three MonthPeriods to theend of February

Six MonthPeriods to theend of February

2016

2015

2016

2015

SALES

$ 11,188,133

$  9,483,404

$  23,129,641

$  17,466,021

COST OF SALES

9,152,554

7,581,284

18,714,207

13,693,878

GROSS PROFIT

2,035,579

1,902,120

4,415,434

3,772,143

OPERATING EXPENSES

  Selling, general and administrative expenses

531,423

511,375

1,074,216

972,823

  Depreciation and amortization

68,470

70,600

143,983

139,683

  Wages and employee benefits

1,095,069

853,441

1,971,414

1,663,034

1,694,962

1,435,416

3,189,613

2,775,540

Income from operations

340,617

466,704

1,225,821

996,603

OTHER ITEMS

   Gain on sale of property, plant and equipment

5,600

-

5,600

-

   Interest and other income

1,800

7,188

10,534

14,083

   Litigation expense

(115,990)

-

(115,990)

-

(108,590)

7,188

(99,856)

14,083

Income before income taxes

232,027

473,892

1,125,965

1,010,686

Income tax expense

(100,067)

(190,332)

(461,760)

(399,339)

Net income

$     131,960

$    283,560

$      664,205

$     611,347

Basic earnings per common share

$           0.05

$          0.11

$            0.27

$           0.23

Diluted earnings per common share

$           0.05

$          0.11

$            0.27

$           0.23

Weighted average number of common shares outstanding:

  Basic

2,476,832

2,585,661

2,476,832

2,637,587

  Diluted

2,476,832

2,585,661

2,476,832

2,637,587

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Month Periodto the end of February

Six Month Periodto the end of February

2016

2015

2016

2015

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$  131,960

$  283,560

$  664,205

$  611,347

Items not involving an outlay of cash:

  Depreciation and amortization

68,470

70,600

143,983

139,683

  Gain on sale of property, plant and equipment

(5,600)

-

(5,600)

-

  Deferred income taxes

(9,301)

(6,426)

3,504

(2,709)

  Interest income on litigation

-

(6,588)

(6,661)

(13,249)

  Decrease in litigation reserve

(84,010)

-

(84,010)

-

Changes in non-cash working capital items:

  Decrease (increase) in accounts receivable

535,231

(2,313,462)

(96,348)

(2,591,148)

  Decrease (increase) in inventory

651,225

(358,245)

840,559

(1,948,867)

  (Increase) decrease in note receivable

360

(1,700)

1,310

13,300

  Decrease (increase) in prepaid expenses

543,620

(255,461)

210,611

(62,904)

  (Increase) decrease in prepaid income taxes

(159,031)

126,559

(132,461)

331,730

  (Decrease) in accounts payable and accrued liabilities

(373,786)

 

(373,590)

 

(285,100)

 

(360,742)

Net cash provided by (used in) operating activities

1,299,138

(2,834,753)

1,253,992

(3,883,559)

CASH FLOWS FROM INVESTING ACTIVITIES

  Purchase of property, plant and equipment

(37,376)

(13,417)

(47,902)

(14,697)

  Proceeds from sale of property, plant and equipment

5,600

-

5,600

-

Net cash used in investing activities

(31,776)

(13,417)

(42,302)

(14,697)

CASH FLOWS FROM FINANCING ACTIVITIES

  Proceeds from bank indebtedness

-

875,386

-

875,386

  Redemption of common stock

-

-

-

(1,292,477)

Net cash provided by (used in) financing activities

-

875,386

-

(417,091)

Net increase (decrease) in cash

1,267,362

(1,972,784)

1,211,690

(4,315,347)

Cash, beginning of period

4,360,625

1,984,977

4,416,297

4,327,540

Cash, end of period

$  5,627,987

$      12,193

$  5,627,987

$       12,193

 

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-300251149.html

SOURCE Jewett-Cameron Trading Company Ltd.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Press Releases

Related Entities

Stock Buyback, Earnings, Definitive Agreement