NORTH PLAINS, Ore., Jan. 17, 2017 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2017 ended November 30, 2016.
Sales for the first quarter of fiscal 2017 totaled $10.4 million compared to sales of $11.9 million for the first quarter of fiscal 2016. Income from operations was $792,505 compared to $885,204 for the first quarter ended November 30, 2016. Net income after other items and income taxes for the current quarter was $485,920, or $0.21 per share, compared to $532,245, or $0.21 per share, in the year-ago quarter.
"Our new warehouse expansion is now complete, and we will begin to utilize the additional space for both existing and new products this year," said CEO Don Boone. "In November, we added Charlie Hopewell as our new Chief Operating Officer. Charlie's extensive experience will help us grow our product lines and sales channels going forward."
As of May 31, 2016, the Company's cash position was $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.
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,
2016 2016
---- ----
ASSETS
Current assets
Cash $4,899,362 $4,519,922
Accounts receivable, net of allowance
of $Nil (August 31, 2016 -$Nil) 3,386,389 3,342,204
Inventory, net of allowance of
$167,584 (August 31, 2016 -$176,717)
(note 3) 7,688,609 8,069,017
Prepaid expenses 862,118 832,895
Prepaid income taxes - 596
--- ---
Total current assets 16,836,478 16,764,634
Property, plant and equipment, net
(note 4) 3,129,753 2,954,595
Intangible assets, net (note 5) 132,367 150,543
------- -------
Total assets $20,098,598 $19,869,772
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $618,293 $839,972
Accrued liabilities 1,130,568 1,473,792
Income taxes payable 310,974 -
------- ---
Total current liabilities 2,059,835 2,313,764
Deferred tax liability (note 6) 28,188 31,353
------ ------
Total liabilities 2,088,023 2,345,117
Contingent liabilities and commitments (note 12)
Stockholders' equity
Capital stock (note 8, 9)
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 16,331,012 15,845,092
---------- ----------
Total stockholders' equity 18,010,575 17,524,655
---------- ----------
Total liabilities and stockholders'
equity $20,098,598 $19,869,772
=================================== =========== ===========
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Months Ended
November 30,
2016 2015
---- ----
SALES $10,421,804 $11,941,508
COST OF SALES 8,027,362 9,561,653
--------- ---------
GROSS PROFIT 2,394,442 2,379,855
OPERATING EXPENSES
Selling, general and
administrative
expenses 551,048 542,793
Depreciation and
amortization 68,640 75,513
Wages and employee
benefits 982,249 876,345
------- -------
1,601,937 1,494,651
Income from operations 792,505 885,204
OTHER ITEM
Interest and other
income 1,820 8,734
----- -----
1,820 8,734
Income before income
taxes 794,325 893,938
Income tax expense (308,405) (361,693)
-------- --------
Net income $485,920 $532,245
========== ======== ========
Basic earnings per
common share $0.21 $0.21
Diluted earnings per
common share $0.21 $0.21
Weighted average number of common shares outstanding:
Basic 2,286,294 2,476,832
Diluted 2,286,294 2,476,832
======= ========= =========
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,
2016 2015
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $485,920 $532,245
Items not involving an outlay of cash:
Depreciation and
amortization 68,640 75,513
Deferred income taxes (3,165) 12,805
Interest income on
litigation - (6,661)
Changes in non-cash working capital items:
Increase in accounts
receivable (44,185) (631,579)
Decrease in inventory 380,408 189,334
Decrease in note receivable - 950
Decrease in prepaid income
taxes 596 26,570
(Increase) in prepaid
expenses (29,223) (333,009)
(Decrease) increase in
accounts payable and
accrued liabilities (564,903) 88,686
Increase in income taxes
payable 310,974 -
------- ---
Net cash provided by (used
by) operating activities 605,062 (45,146)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant
and equipment (225,622) (10,526)
-------- -------
(225,622)
Net cash used in investing activities (10,526)
Net increase (decrease) in
cash 379,440 (55,672)
Cash, beginning of period 4,519,922 4,416,297
--------- ---------
Cash, end of period $4,899,362 $4,360,625
=================== ========== ==========
Contact: Don Boone, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
