NORTH PLAINS, Ore., Jan. 14, 2016 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2016 ended November 30, 2015.
Sales were $11.94 million for the first quarter of fiscal 2016 compared to sales of $7.98 million for the first quarter of fiscal 2015. Income from operations for the quarter was $885,204 compared to $529,899 in the year-ago quarter. Net income was $532,245, or $0.21 per share, for the current quarter compared to net income of $327,787, or $0.12 per share, for the first quarter of fiscal 2015.
"The increase in sales for the quarter was due to our efforts to expand our customer base to new smaller and mid-sized customers, as well as the continued acceptance of our new products introduced during fiscal 2015," said CEO Don Boone. "The new products have been particularly well-received by our established customer base, which has led to sales increases with our largest customers."
As of November 30, the Company's cash position was $4.36 million, and currently there is 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. The Company's most recent share repurchase plan was terminated on July 17, 2015. 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,
2015 2015
---- ----
ASSETS
Current assets
Cash $4,360,625 $4,416,297
Accounts receivable, net of allowance
of $Nil (August 31, 2015 -$Nil) 4,319,826 3,688,247
Inventory, net of allowance of $72,730
(August 31, 2015 -$120,824) 8,162,241 8,351,575
Note receivable 360 1,310
Prepaid expenses 1,052,468 719,459
Prepaid income taxes - 26,570
--- ------
Total current assets 17,895,520 17,203,458
Property, plant and equipment, net 2,184,901 2,231,711
Intangible assets, net 205,073 223,250
------- -------
Total assets $20,285,494 $19,658,419
============ =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $955,516 $984,955
Litigation reserve 84,010 90,671
Accrued liabilities 1,142,483 1,024,358
--------- ---------
Total current liabilities 2,182,009 2,099,984
Deferred tax liability 47,105 34,300
------ ------
Total liabilities 2,229,114 2,134,284
--------- ---------
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
2,476,832 common shares (August 31,
2015 - 2,476,832) 1,168,712 1,168,712
Additional paid-in capital 600,804 600,804
Retained earnings 16,286,864 15,754,619
---------- ----------
Total stockholders' equity 18,056,380 17,524,135
---------- ----------
Total liabilities and stockholders'
equity $20,285,494 $19,658,419
=================================== =========== ===========
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Months Ended
November 30,
2015 2014
---- ----
SALES $11,941,508 $7,982,617
COST OF SALES 9,561,653 6,112,594
--------- ---------
GROSS PROFIT 2,379,855 1,870,023
OPERATING EXPENSES
Selling, general and
administrative
expenses 542,793 461,448
Depreciation and
amortization 75,513 69,083
Wages and employee
benefits 876,345 809,593
------- -------
1,494,651 1,340,124
Income from
operations 885,204 529,899
OTHER ITEMS
Interest and other
income 8,734 6,895
----- -----
8,734 6,895
Income before income
taxes 893,938 536,794
Income tax expense (361,693) (209,007)
-------- --------
Net income $532,245 $327,787
========== ======== ========
Basic earnings per
common share $0.21 $0.12
Diluted earnings per
common share $0.21 $0.12
Weighted average number of common shares outstanding:
Basic 2,476,832 2,688,942
Diluted 2,476,832 2,688,942
======= ========= =========
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,
2015 2014
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $532,245 $327,787
Items not involving an outlay of cash:
Depreciation and
amortization 75,513 69,083
Deferred income taxes 12,805 3,717
Interest income on
litigation (6,661) (6,661)
Changes in non-cash working capital items:
Increase in accounts
receivable (631,579) (277,686)
(Increase) decrease in
inventory 189,334 (1,590,622)
Decrease in note receivable 950 15,000
Decrease in prepaid income
taxes 26,570 205,171
(Increase) decrease in
prepaid expenses (333,009) 192,557
Increase in accounts
payable and accrued
liabilities 88,686 12,848
------ ------
Net cash used by operating
activities (45,146) (1,048,806)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant
and equipment (10,526) (1,280)
------- ------
Net cash used in investing
activities (10,526) (1,280)
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 (55,672) (2,342,563)
Cash, beginning of period 4,416,297 4,327,540
--------- ---------
Cash, end of period $4,360,625 $1,984,977
=================== ========== ==========
Contact: Don Boone, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
