Jewett-Cameron Announces 2nd Quarter Financial Results

April 16, 2018 | By forimmediaterele | Filed in: Press Releases.

Travel & Tourism Industry release:

NORTH PLAINS, Ore., April 16, 2018 /PRNewswire/ — Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2018 ended February 28, 2018.

Sales for the second quarter of fiscal 2018 totaled $13.3 million compared to sales of $9.5 million for the second quarter of fiscal 2017. Income from operations was $720,244 compared to income of $548,234 for the quarter ended February 28, 2017. Net income was $508,298, or $0.23 per share, compared to net income of $309,013, or $0.14 per share, in the year-ago quarter.

For the six months ended February 28, 2018, sales totaled $22.8 million compared to sales of $19.9 million for the six months ended February 28, 2017, and income from operations was $1,290,546 compared to $1,340,739. Net income was $830,731, or $0.37 per share, compared to net income of $794,933, or $0.35 per share, in the first six months of fiscal 2017. Sales and income in the current six month period ended February 28, 2018 were negatively affected by the recall of a “Black Friday” item produced for a single customer during the first quarter of the fiscal year.

“Our higher sales during the current period were due to increased sales of specialty lumber and the addition of several new customers,” said CEO Charlie Hopewell. “We are continuing our efforts to add customers through our domestic sales and distribution channels and through new channels internationally.”

As of February 28, 2018, the Company’s cash position was approximately $2.8 million, and there was no borrowing against its $3.0 million line of credit. 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 (Jewett-Cameron Companies), operate out of facilities located in North Plains, Oregon. Those businesses consist 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)

February 28,
2018

August 31,
2017

ASSETS

Current assets

  Cash

$  2,790,723

$   5,912,250

  Accounts receivable, net of allowance of $Nil (August 31, 2017 – $1,725)

6,064,903

3,565,055

  Inventory, net of allowance of $139,704 (August 31, 2017 – $156,713)

9,289,193

8,807,545

  Prepaid expenses

883,204

595,776

  Prepaid income taxes

469,577

  Total current assets

19,497,600

18,880,626

Property, plant and equipment, net

3,139,156

3,222,572

Intangible assets, net

3,862

77,837

Total assets

$  22,640,618

$  22,181,035

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

  Accounts payable

$     782,869

$    638,128

  Accrued liabilities

1,265,612

1,807,192

  Total current liabilities

2,048,481

2,445,320

Deferred tax liability

37,035

11,344

Total liabilities

2,085,516

2,456,664

Stockholders’ equity

  Capital stock

      Authorized 21,567,564 common shares, without par value 10,000,000 preferred shares, without par value

      Issued 2,234,494 common shares (August 31, 2017 – 2,234,494)

1,054,316

1,054,316

  Additional paid-in capital

600,804

600,804

  Retained earnings

18,899,982

18,069,251

  Total stockholders’ equity

20,555,102

19,724,371

  Total liabilities and stockholders’ equity

$  22,640,618

$  22,181,035

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Month
Periods ended
February 28,

Six Month
Periods ended
February 28,

2018

2017

2018

2017

SALES

$  13,341,338

$  9,499,286

$  22,755,308

$  19,921,089

COST OF SALES

10,705,532

7,370,224

17,932,754

15,397,585

GROSS PROFIT

2,635,806

2,129,062

4,822,554

4,523,504

OPERATING EXPENSES

  Selling, general and administrative expenses

616,074

453,668

1,061,951

1,004,717

  Depreciation and amortization

122,745

69,368

195,410

138,007

  Wages and employee benefits

1,176,743

1,057,792

2,274,647

2,040,041

1,915,562

1,580,828

3,532,008

3,182,765

Income from operations

720,244

548,234

1,290,546

1,340,739

OTHER ITEMS

   (Loss) gain on sale of property, plant and equipment

 

530

 

(393)

 

(27,022)

 

(393)

   Interest and other income

5,793

2,000

8,483

3,820

6,323

1,607

(18,539)

3,427

Income before income taxes

726,567

549,841

1,272,007

1,344,166

Income tax expense

(218,269)

(240,828)

(441,276)

(549,233)

Net income

$     508,298

$    309,013

$      830,731

$     794,933

Basic earnings per common share

$           0.23

$          0.14

$            0.37

$           0.35

Diluted earnings per common share

$           0.23

$          0.14

$            0.37

$           0.35

Weighted average number of common shares outstanding:

  Basic

2,234,494

2,286,294

2,234,494

2,286,294

  Diluted

2,234,494

2,286,294

2,234,494

2,286,294

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Six Month Period
ended February 28,

2018

2017

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$   830,731

$  794,933

Items not involving an outlay of cash:

  Depreciation and amortization

195,410

138,007

  Loss on sale of property, plant and equipment

27,022

393

  Deferred income taxes

25,691

4,540

Changes in non-cash working capital items:

  (Increase) in accounts receivable

(2,499,848)

(1,205,537)

  (Increase) in inventory

(481,648)

(817,226)

  (Increase) decrease in prepaid expenses

(287,428)

25,202

  (Increase) in prepaid income taxes

(469,577)

(148,891)

  (Decrease) in accounts payable and accrued liabilities

(396,839)

(961,277)

Net cash used in operating activities

(3,056,486)

(2,169,856)

CASH FLOWS FROM INVESTING ACTIVITIES

  Purchase of property, plant and equipment

(66,041)

(335,014)

  Proceeds from sale of property, plant and equipment

1,000

3,480

Net cash used in investing activities

(65,041)

(331,534)

Net decrease in cash

(3,121,527)

(2,501,390)

Cash, beginning of period

5,912,250

4,519,922

Cash, end of period

$  2,790,723

$  2,018,532

Contact: Charlie Hopewell, President & CEO, (503) 647-0110

Cision View original content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-2nd-quarter-financial-results-300630630.html

SOURCE Jewett-Cameron Trading Company Ltd.

Related Links

http://www.jewettcameron.com

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