NORTH PLAINS, Ore., Jan. 13, 2014 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2014 ended November 30, 2013.
Sales were $8.01 million for the first quarter of fiscal 2014 compared to sales of $9.30 million for the first quarter of fiscal 2013. For the quarter, income from operations was $543,924 compared to $772,385 in the year-ago quarter. Net income for the quarter was $332,579, or $0.11 per share, compared to net income of $480,746, or $0.15 per share, in the first quarter of fiscal 2013. Per share amounts have been adjusted for the 2 for 1 stock split of the common shares effective May 2, 2013.
"Our markets have become much more competitive," said CEO Don Boone. "In response, we have increased our efforts to obtain new business and expand our customer base to smaller and mid-size customers. These initiatives resulted in higher selling expenses during the quarter."
As of November 30, 2013, the Company's cash position was $8.096 million, and currently there is no borrowing against its $5.0 million line of credit. Today, the Company announced a new share re-purchase plan where it can repurchase for cancellation up to 313,493 common shares representing 10% of the approximately 3.1 million common shares outstanding. This share repurchase plan may commence on January 20, 2014 and will remain in place until May 16, 2014 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) November 30, August 31, 2013 2013 ---- ---- ASSETS Current assets Cash $8,096,072 $8,308,445 Accounts receivable, net of allowance of $Nil (August 31, 2013 - $Nil) 2,237,734 3,344,777 Inventory, net of allowance of $134,259 (August 31, 2013 - $134,259) (note 3) 8,374,751 8,520,991 Note receivable - 15,000 Prepaid expenses 883,172 587,609 Prepaid income taxes 43,744 270,423 ------ ------- Total current assets 19,635,473 21,047,245 Property, plant and equipment, net (note 4) 2,247,334 2,241,950 Intangible assets, net (note 5) 350,486 368,662 ------- ------- Total assets $22,233,293 $23,657,857 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $453,525 $1,715,458 Litigation reserve (note 13(a)) 137,442 144,103 Accrued liabilities 665,897 1,149,882 ------- --------- Total current liabilities 1,256,864 3,009,443 Deferred tax liability (note 6) 45,829 50,393 ------ ------ Total liabilities 1,302,693 3,059,836 Contingent liabilities and commitments (note 13) Stockholders' equity Capital stock (note 8) Authorized 21,567,564 common shares, without par value 10,000,000 preferred shares, without par value Issued 3,134,936 common shares (August 31, 2013 -3,134,936) 1,479,246 1,479,246 Additional paid-in capital 600,804 600,804 Retained earnings 18,850,550 18,517,971 ---------- ---------- Total stockholders' equity 20,930,600 20,598,021 ---------- ---------- Total liabilities and stockholders' equity $22,233,293 $23,657,857 =================================== =========== ===========
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) Three Months Ended November 30, 2013 2012 ---- ---- SALES $8,006,281 $9,296,405 COST OF SALES 6,156,502 7,305,399 --------- --------- GROSS PROFIT 1,849,779 1,991,006 OPERATING EXPENSES Selling, general and administrative expenses 391,886 335,820 Depreciation and amortization 70,019 57,494 Wages and employee benefits 843,950 825,307 ------- ------- 1,305,855 1,218,621 Income from operations 543,924 772,385 OTHER ITEMS Interest and other income 6,661 16,710 Gain on sale of equipment 4,109 - ----- --- 10,770 16,710 Income before income taxes 554,694 789,095 Income tax expense (222,115) (308,349) -------- -------- Net income $332,579 $480,746 ========== ======== ======== Basic earnings per common share $0.11 $0.15 Diluted earnings per common share $0.11 $0.15 Weighted average number of common shares outstanding: Basic 3,134,936 3,135,942 Diluted 3,134,936 3,135,942 ======= ========= =========
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) Three Month Periods Ended November 30, 2013 2012 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net income $332,579 $480,746 Items not involving an outlay of cash: Depreciation and amortization 70,019 57,494 Gain on sale of equipment (4,109) - Deferred income taxes (4,564) 14,323 Interest income on litigation (6,661) (6,661) Changes in non-cash working capital items: Decrease in accounts receivable 1,107,043 426,020 Decrease in inventory 146,240 1,324,365 Decrease in note receivable 15,000 20,000 Decrease in prepaid income taxes 226,679 - Increase in prepaid expenses (295,563) (1,579,612) Decrease in accounts payable and accrued liabilities (1,745,918) (971,229) Increase in accrued income taxes - 293,754 --- ------- Net cash provided (used) by operating activities (159,255) 59,200 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (57,918) (112,133) Proceeds from sale of equipment 4,800 - ----- --- Net cash used in investing activities (53,118) (112,133) Net decrease in cash (212,373) (52,933) Cash, beginning of period 8,308,445 7,309,388 --------- --------- Cash, end of period $8,096,072 $7,256,455 =================== ========== ==========
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.