NORTH PLAINS, Ore., Jan. 14, 2015 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2015 ended November 30, 2014.
Sales were $7.98 million for the first quarter of fiscal 2015 compared to sales of $8.01 for the first quarter of fiscal 2014. Income from operations for the quarter was $529,899 compared to $543,924 in the year-ago quarter. Net income was $327,787, or $0.12 per share, for the quarter compared to net income of $332,579, or $0.11 per share, for the first quarter of fiscal 2014. The net income per share was higher for the current quarter due to a lower weighted average number of common shares outstanding as a result of the Company's repurchase of common shares.
"Our markets remained competitive in the first quarter of fiscal 2015, and continued higher raw material prices continue to negatively pressure our profit margins," said CEO Don Boone. "However, the sales initiatives we initiated during fiscal 2014 have been successful in beginning to expand and diversify our customer base."
As of November 30, the Company's cash position was $1.984 million, and currently there is no borrowing against its $1.0 million line of credit. During the first quarter, the Company repurchased and cancelled a total of 118,969 common shares at an average price of $10.86 per share. The Company's most recent share repurchase plan expired on November 14, 2014. The Board of Directors will consider implementing new share repurchase plans in the future as an effective use of the Company's cash position.
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,
2014 2014
---- ----
ASSETS
Current assets
Cash $1,984,977 $4,327,540
Accounts
receivable,
net of
allowance of
$Nil (August
31, 2014 -
$Nil) 2,720,614 2,442,928
Inventory, net
of allowance
of $87,800
(August 31,
2014 -
$111,756)
(note 3) 10,744,751 9,154,129
Note receivable - 15,000
Prepaid
expenses 569,976 762,533
Prepaid income
taxes 341,176 546,347
------- -------
Total current
assets 16,361,494 17,248,477
Property, plant
and equipment,
net (note 4) 2,097,760 2,147,387
Intangible
assets, net
(note 5) 277,780 295,956
------- -------
Total assets $18,737,034 $19,691,820
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts
payable $377,496 $240,825
Litigation
reserve (note
13(a)) 110,726 117,387
Accrued
liabilities 950,107 1,073,930
------- ---------
Total current
liabilities 1,438,329 1,432,142
Deferred tax
liability
(note 6) 64,689 60,972
------ ------
Total
liabilities 1,503,018 1,493,114
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
2,585,661
common shares
(August 31,
2014 -
2,704,630) 1,220,064 1,276,201
Additional
paid-in
capital 600,804 600,804
Retained
earnings 15,413,148 16,321,701
---------- ----------
Total
stockholders'
equity 17,234,016 18,198,706
---------- ----------
Total
liabilities
and
stockholders'
equity $18,737,034 $19,691,820
============== =========== ===========
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Months Ended
November 30,
2014 2013
---- ----
SALES $7,982,617 $8,006,281
COST OF SALES 6,112,594 6,156,502
--------- ---------
GROSS PROFIT 1,870,023 1,849,779
OPERATING EXPENSES
Selling, general and
administrative
expenses 461,448 391,886
Depreciation and
amortization 69,083 70,019
Wages and employee
benefits 809,593 843,950
------- -------
1,340,124 1,305,855
Income from operations 529,899 543,924
OTHER ITEMS
Interest and other
income 6,895 6,661
Gain on sale of
equipment - 4,109
--- -----
6,895 10,770
Income before income
taxes 536,794 554,694
Income tax expense (209,007) (222,115)
-------- --------
Net income $327,787 $332,579
========== ======== ========
Basic earnings per
common share $0.12 $0.11
Diluted earnings per
common share $0.12 $0.11
Weighted average number of common shares outstanding:
Basic 2,688,942 3,134,936
Diluted 2,688,942 3,134,936
======= ========= =========
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,
2014 2013
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $327,787 $332,579
Items not involving an outlay of cash:
Depreciation and
amortization 69,083 70,019
Gain on sale of equipment - (4,109)
Deferred income taxes 3,717 (4,564)
Interest income on
litigation (6,661) (6,661)
Changes in non-cash working capital items:
(Increase) decrease in
accounts receivable (277,686) 1,107,043
(Increase) decrease in
inventory (1,590,622) 146,240
Decrease in note receivable 15,000 15,000
Decrease in prepaid income
taxes 205,171 226,679
(Increase) decrease in
prepaid expenses 192,557 (295,563)
Increase (decrease) in
accounts payable and
accrued liabilities 12,848 (1,745,918)
------ ----------
Net cash used by operating
activities (1,048,806) (159,255)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant
and equipment (1,280) (57,918)
Proceeds from sale of
equipment - 4,800
--- -----
Net cash used in investing
activities (1,280) (53,118)
CASH FLOWS FROM FINANCING ACTIVITIES
Redemption of common stock (1,292,477) -
---------- ---
Net cash used in financing
activities (1,292,477) -
Net decrease in cash (2,342,563) (212,373)
Cash, beginning of period 4,327,540 8,308,445
--------- ---------
Cash, end of period $1,984,977 $8,096,072
=================== ========== ==========
Contact: Don Boone, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
