Jewett-Cameron Announces 1st Quarter Financial Results

PRNewswire 14-Jan-2019 4:25 PM

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

 

Cision View original content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-1st-quarter-financial-results-300777958.html

SOURCE Jewett-Cameron Trading Company Ltd.

Wait, Before You Leave...