Jewett-Cameron Announces 3rd Quarter Financial Results
NORTH PLAINS, Ore., July 17, 2017 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine month periods of fiscal 2017 ended May 31, 2017.
Sales for the third quarter of fiscal 2017 totaled $16.7 million compared to sales of $14.5 million for the third quarter of fiscal 2016. Income from operations was $2,023,238 compared to $1,504,952 for the third quarter ended May 31, 2016. Net income after other items and income taxes for the current quarter was $1,206,135, or $0.53 per share, compared to $908,730, or $0.37 per share, in the year-ago quarter.
For the nine months ended May 31, 2017, Jewett-Cameron reported sales of $36.6 million compared to sales of $37.6 million for the nine months ended May 31, 2016. Net income was $2,001,068, or $0.88 per share, compared to net income of $1,572,935, or $0.64 per share, in the first nine months of fiscal 2016.
"Our investments in eCommerce and expanding our international sales have started to be reflected in this quarter's revenues and margins," said CEO Charlie Hopewell. "We are continuing our efforts to grow our business, including increased utilization of our recent warehouse expansion and adding additional personnel to support our sales initiatives."
As of May 31, 2017, the Company's cash position was approximately $4.9 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.
On May 23, 2017, the Company announced the Board of Directors approved a share repurchase plan to purchase for cancellation up to 225,000 common shares under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934. Subsequent to the end of the 3rd quarter, the Company has repurchased for cancellation 40,660 common shares at a cost of $511,959, which is an average price of $12.59 per share.
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) | |||
May 31, | August 31, | ||
ASSETS | |||
Current assets | |||
Cash | $ 4,872,068 | $ 4,519,922 | |
Accounts receivable, net of allowance of $Nil (August 31, 2016 - $Nil) | 5,532,541 | 3,342,204 | |
Inventory, net of allowance of $157,879 (August 31, 2016 - $176,717) | 8,053,663 | 8,069,017 | |
Prepaid expenses | 772,802 | 832,895 | |
Prepaid income taxes | - | 596 | |
Total current assets | 19,231,074 | 16,764,634 | |
Property, plant and equipment, net | 3,150,916 | 2,954,595 | |
Intangible assets, net | 96,014 | 150,543 | |
Total assets | $ 22,478,004 | $ 19,869,772 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities | |||
Accounts payable | $ 891,623 | $ 839,972 | |
Accrued liabilities | 1,710,069 | 1,473,792 | |
Income taxes payable | 317,074 | - | |
Total current liabilities | 2,918,766 | 2,313,764 | |
Deferred tax liability | 33,515 | 31,353 | |
Total liabilities | 2,952,281 | 2,345,117 | |
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 | |||
2,286,294 common shares (August 31, 2016 – 2,286,294) | 1,078,759 | 1,078,759 | |
Additional paid-in capital | 600,804 | 600,804 | |
Retained earnings | 17,846,160 | 15,845,092 | |
Total stockholders' equity | 19,525,723 | 17,524,655 | |
Total liabilities and stockholders' equity | $ 22,478,004 | $ 19,869,772 | |
JEWETT-CAMERON TRADING COMPANY LTD. | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(Expressed in U.S. Dollars) | |||||||
(Prepared by Management) | |||||||
(Unaudited) | |||||||
Three Month | Nine Month | ||||||
2017 | 2016 | 2017 | 2016 | ||||
SALES | $ 16,718,234 | $ 14,458,713 | $ 36,639,323 | $ 37,588,354 | |||
COST OF SALES | 12,906,533 | 11,281,973 | 28,304,118 | 29,996,180 | |||
GROSS PROFIT | 3,811,701 | 3,176,740 | 8,335,205 | 7,592,174 | |||
OPERATING EXPENSES | |||||||
Selling, general and administrative expenses | 466,014 | 542,581 | 1,470,731 | 1,616,796 | |||
Depreciation and amortization | 84,693 | 82,978 | 222,700 | 226,961 | |||
Wages and employee benefits | 1,237,756 | 1,046,229 | 3,277,797 | 3,017,643 | |||
(1,788,463) | (1,671,788) | (4,971,228) | (4,861,400) | ||||
Income from operations | 2,023,238 | 1,504,952 | 3,363,977 | 2,730,774 | |||
OTHER ITEMS | |||||||
(Loss) gain on sale of property, plant and equipment | - | - | (393) | 5,600 | |||
Interest and other income | 2,400 | 2,978 | 6,220 | 13,538 | |||
Interest expense | - | - | - | (27) | |||
Litigation expense | - | - | - | (115,990) | |||
2,400 | 2,978 | 5,827 | (96,879) | ||||
Income before income taxes | 2,025,638 | 1,507,930 | 3,369,804 | 2,633,895 | |||
Income tax expense | (819,503) | (599,200) | (1,368,736) | (1,060,960) | |||
Net income | $ 1,206,135 | $ 908,730 | $ 2,001,068 | $ 1,572,935 | |||
Basic earnings per common share | $ 0.53 | $ 0.37 | $ 0.88 | $ 0.64 | |||
Diluted earnings per common share | $ 0.53 | $ 0.37 | $ 0.88 | $ 0.64 | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 2,286,294 | 2,458,170 | 2,286,294 | 2,470,566 | |||
Diluted | 2,286,294 | 2,458,170 | 2,286,294 | 2,470,566 | |||
JEWETT-CAMERON TRADING COMPANY LTD. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(Expressed in U.S. Dollars) | |||||||
(Prepared by Management) | |||||||
(Unaudited) | |||||||
Three Month | Nine Month | ||||||
2017 | 2016 | 2017 | 2016 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ 1,206,135 | $ 908,730 | $ 2,001,068 | $ 1,572,935 | |||
Items not involving an outlay of cash: | |||||||
Depreciation and amortization | 84,693 | 82,978 | 222,700 | 226,961 | |||
Loss (gain) on sale of property, plant and equipment | - | - | 393 | (5,600) | |||
Deferred income tax expense (recovery) | (2,378) | (33,601) | 2,162 | (30,097) | |||
Interest income on litigation | - | - | - | (6,661) | |||
Decrease in litigation reserve | - | - | - | (84,010) | |||
Changes in non-cash working capital items: | |||||||
(Increase) in accounts receivable | (984,800) | (597,843) | (2,190,337) | (694,191) | |||
Decrease in inventory | 832,580 | 213,122 | 15,354 | 1,053,681 | |||
Decrease in note receivable | - | - | - | 1,310 | |||
Decrease (increase) in prepaid expenses | 34,891 | (271,860) | 60,093 | (61,249) | |||
Decrease in prepaid income taxes | 149,487 | 159,031 | 596 | 26,570 | |||
Increase in accounts payable and accrued liabilities | 1,249,205 | 974,527 | 287,928 | 689,427 | |||
Increase in income taxes payable | 317,074 | - | 317,074 | - | |||
Net cash provided by operating activities | 2,886,887 | 1,435,084 | 717,031 | 2,689,076 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchase of property, plant and equipment | (33,351) | (31,618) | (368,365) | (79,520) | |||
Proceeds from sale of property, plant and equipment | - | - | 3,480 | 5,600 | |||
Net cash used in investing activities | (33,351) | (31,618) | (364,885) | (73,920) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Redemption of common stock | - | (745,878) | - | (745,878) | |||
Net cash used in financing activities | - | (745,878) | - | (745,878) | |||
Net increase in cash | 2,853,536 | 657,588 | 352,146 | 1,869,278 | |||
Cash, beginning of period | 2,018,532 | 5,627,987 | 4,519,922 | 4,416,297 | |||
Cash, end of period | $ 4,872,068 | $ 6,285,575 | $ 4,872,068 | $ 6,285,575 | |||
Contact: Charlie Hopewell, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
