JEWETT-CAMERON TRADING COMPANY LTD. 
By NORTH PLAINS, Ore., Jan. 13 /PRNewswire-FirstCall/ -- Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF; TSX: JCT) today reported financial results for the first quarter of fiscal 2010 ended November 30, 2009.
Sales for the first quarter of fiscal 2010 totaled $7.37 million compared to sales of $10.78 million for the first quarter of 2009. The company reported net income of $72,630, or $.03 per diluted share compared to net income of $293,475 or $.12 per diluted share in the same period a year ago.
"The current economic downturn has affected all our product segments, with total Company sales down about 32% for the quarter," said CEO Don Boone. "We also finalized a one-time $463,498 inventory write-down during the quarter due to the significant decrease in market value."
Jewett-Cameron's financial position continues to be strong, and currently has no borrowing against its $5.0 million line of credit. As of November 30, 2009 the Company's cash position was $7.6 million.
About Jewett-Cameron Trading Company Ltd.
Jewett-Cameron Trading Company is a holding company that operates through subsidiary companies as follows. Jewett-Cameron Lumber Corporation's business consists of warehouse distribution and direct sales of wood products and specialty metal products to home centers and other retailers. Greenwood Products is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries. 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.
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.
Three Month
Periods Ended
November 30,
2009 2008
---- ----
SALES $7,374,926 $10,782,063
COST OF SALES 5,759,328 8,565,598
GROSS PROFIT 1,615,598 2,216,465
OPERATING EXPENSES
Selling, general and administrative
expenses 540,715 554,125
Depreciation and amortization 60,696 79,401
Wages and employee benefits 880,287 1,061,884
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1,481,698 1,695,410
Income from operations 133,900 521,055
OTHER ITEMS
Interest and other income 1,760 11,344
Interest expense - (36,924)
--- -------
1,760 (25,580)
Income before income taxes 135,660 495,475
Income taxes 63,030 202,000
------ -------
Net income $72,630 $293,475
========== ======= ========
Basic earnings per common share $.03 $.12
Diluted earnings per common share $.03 $.12
Weighted average number of common
shares outstanding:
Basic 2,390,977 2,390,977
Diluted 2,390,977 2,390,977
======= ========= =========
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)
(Prepared by Management)
November 30, August 31,
------------ ----------
2009 2009
(Unaudited) (Audited)
----------- ---------
ASSETS
Current assets
Cash and cash equivalents $7,648,583 $6,828,571
Accounts receivable, net of allowance
of $0 (August 31, 2009 - $3,816) 2,213,047 3,603,916
Inventory, net of allowance of $0
(August 31, 2009 -$313,000) (note 3) 6,805,391 6,954,811
Note receivable 41,500 41,500
Prepaid expenses 126,687 160,809
Prepaid income taxes 110,863 43,805
------- ------
Total current assets 16,946,071 17,633,412
Property, plant and equipment, net (note 4) 1,873,852 1,872,191
Intangible assets, net (note 5) 642,476 662,045
Deferred income taxes (note 6) 132,100 261,780
------- -------
Total assets $19,594,499 $20,429,428
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accounts payable $243,194 $999,562
Accrued liabilities 665,769 816,960
------- -------
Total liabilities 908,963 1,816,522
Contingent liabilities and commitments
(note 11)
Stockholders' equity
Capital stock (note 8)
Authorized
20,000,000 common shares, without par
value
10,000,000 preferred shares, without par
value
Issued
2,390,977 common shares
(August 31, 2009 - 2,390,977) 2,256,112 2,256,112
Additional paid-in capital 600,804 600,804
Retained earnings 15,828,620 15,755,990
---------- ----------
Total stockholders' equity 18,685,536 18,612,906
---------- ----------
Total liabilities and stockholders'
equity $19,594,499 $20,429,428
=================================== =========== ===========
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,
2009 2008
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $72,630 $293,475
Items not involving an outlay of cash:
Depreciation and amortization 60,696 79,401
Deferred income taxes 129,680 (11,940)
Changes in non-cash working capital
items:
Decrease in accounts receivable 1,390,869 2,112,327
(Increase) decrease in inventory 149,420 (264,448)
Decrease in prepaid expenses 34,121 46,970
(Decrease) in accounts payable and
accrued liabilities (907,558) (917,688)
Increase (decrease) in accrued income
taxes (67,058) 209,629
------- -------
Net cash provided by operating
activities 862,800 1,547,726
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and
equipment (42,788) (12,043)
------- -------
Net cash used in investing activities (42,788) (12,043)
CASH FLOWS FROM FINANCING ACTIVITIES
Promissory note - (16,630)
--- -------
Net cash provided by (used in)
financing activities - (16,630)
Net increase in cash and cash
equivalents 820,012 1,519,053
Cash and cash equivalents, beginning
of period 6,828,571 5,758,479
--------- ---------
Cash and cash equivalents, end of
period $7,648,583 $7,277,532
================================= ========== ==========
Following is a summary of segmented information for the three month periods ended November 30:
2009 2008
---- ----
Sales to unaffiliated customers:
Industrial wood products $2,419,765 $3,281,558
Lawn, garden, pet and other 3,651,100 5,526,956
Seed processing and sales 864,161 1,710,648
Industrial tools and clamps 439,900 262,901
------- -------
$7,374,926 $10,782,063
Income (loss) before income taxes:
Industrial wood products $(10,812) $(120,349)
Lawn, garden, pet and other 640,591 539,684
Seed processing and sales (481,506) 97,510
Industrial tools and clamps 18,323 6,223
Unallocated overhead (30,936) (27,593)
------- -------
$135,660 $495,475
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Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
