NORTH PLAINS, OR - 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.
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JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
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November 30, 2013 |
August 31, 2013 |
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ASSETS |
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Current assets |
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Cash |
$ 8,096,072 |
$ 8,308,445 |
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Accounts receivable, net of allowance of $Nil (August 31, 2013 - $Nil) |
2,237,734 |
3,344,777 |
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Inventory, net of allowance of $134,259 (August 31, 2013 - $134,259) (note 3) |
8,374,751 |
8,520,991 |
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Note receivable |
- |
15,000 |
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Prepaid expenses |
883,172 |
587,609 |
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Prepaid income taxes |
43,744 |
270,423 |
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Total current assets |
19,635,473 |
21,047,245 |
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Property, plant and equipment, net (note 4) |
2,247,334 |
2,241,950 |
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Intangible assets, net (note 5) |
350,486 |
368,662 |
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Total assets |
$ 22,233,293 |
$ 23,657,857 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable |
$ 453,525 |
$ 1,715,458 |
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Litigation reserve (note 13(a)) |
137,442 |
144,103 |
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Accrued liabilities |
665,897 |
1,149,882 |
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Total current liabilities |
1,256,864 |
3,009,443 |
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Deferred tax liability (note 6) |
45,829 |
50,393 |
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Total liabilities |
1,302,693 |
3,059,836 |
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Contingent liabilities and commitments (note 13) |
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Stockholders' equity |
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Capital stock (note 8) |
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Authorized |
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21,567,564 common shares, without par value |
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10,000,000 preferred shares, without par value |
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Issued |
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3,134,936 common shares (August 31, 2013 - 3,134,936) |
1,479,246 |
1,479,246 |
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Additional paid-in capital |
600,804 |
600,804 |
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Retained earnings |
18,850,550 |
18,517,971 |
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Total stockholders' equity |
20,930,600 |
20,598,021 |
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Total liabilities and stockholders' equity |
$ 22,233,293 |
$ 23,657,857 |
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JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
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Three Months Ended November 30, |
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2013 |
2012 |
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SALES |
$ 8,006,281 |
$ 9,296,405 |
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COST OF SALES |
6,156,502 |
7,305,399 |
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GROSS PROFIT |
1,849,779 |
1,991,006 |
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OPERATING EXPENSES |
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Selling, general and administrative expenses |
391,886 |
335,820 |
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Depreciation and amortization |
70,019 |
57,494 |
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Wages and employee benefits |
843,950 |
825,307 |
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1,305,855 |
1,218,621 |
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Income from operations |
543,924 |
772,385 |
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OTHER ITEMS |
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Interest and other income |
6,661 |
16,710 |
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Gain on sale of equipment |
4,109 |
- |
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10,770 |
16,710 |
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Income before income taxes |
554,694 |
789,095 |
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Income tax expense |
(222,115) |
(308,349) |
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Net income |
$ 332,579 |
$ 480,746 |
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Basic earnings per common share |
$ 0.11 |
$ 0.15 |
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Diluted earnings per common share |
$ 0.11 |
$ 0.15 |
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Weighted average number of common shares outstanding: |
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Basic |
3,134,936 |
3,135,942 |
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Diluted |
3,134,936 |
3,135,942 |
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JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) |
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Three Month Periods Ended November 30, |
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2013 |
2012 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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Net income |
$ 332,579 |
$ 480,746 |
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Items not involving an outlay of cash: |
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Depreciation and amortization |
70,019 |
57,494 |
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Gain on sale of equipment |
(4,109) |
- |
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Deferred income taxes |
(4,564) |
14,323 |
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Interest income on litigation |
(6,661) |
(6,661) |
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Changes in non-cash working capital items: |
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Decrease in accounts receivable |
1,107,043 |
426,020 |
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Decrease in inventory |
146,240 |
1,324,365 |
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Decrease in note receivable |
15,000 |
20,000 |
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Decrease in prepaid income taxes |
226,679 |
- |
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Increase in prepaid expenses |
(295,563) |
(1,579,612) |
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Decrease in accounts payable and accrued liabilities |
(1,745,918) |
(971,229) |
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Increase in accrued income taxes |
- |
293,754 |
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Net cash provided (used) by operating activities |
(159,255) |
59,200 |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Purchase of property, plant and equipment |
(57,918) |
(112,133) |
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Proceeds from sale of equipment |
4,800 |
- |
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Net cash used in investing activities |
(53,118) |
(112,133) |
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Net decrease in cash |
(212,373) |
(52,933) |
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Cash, beginning of period |
8,308,445 |
7,309,388 |
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Cash, end of period |
$ 8,096,072 |
$ 7,256,455 |
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Contact: Don Boone, President & CEO, (503) 647-0110
(503) 647-0110 (503) 647-0110
Source: Jewett-Cameron Trading Company Ltd.
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