NORTH PLAINS, Ore. - Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF; TSX: JCT) today reported financial results for the third quarter and nine month periods of fiscal 2012 ended May 31, 2012.
Sales for the third quarter of fiscal 2012 totaled $16.11 million compared to sales of $12.91 million for the third quarter of fiscal 2011. For the quarter, income from operations was $1,556,199 compared to $1,035,785 in the year-ago quarter. After other items and income taxes, the Company reported net income of $937,090, or $0.59 per basic and diluted share, compared to net income of $604,324, or $0.30 per share, in last year's third quarter.
For the nine months ended May 31, 2012, Jewett-Cameron reported sales of $35.10 million compared to sales of $30.85 million for the nine months ended May 31, 2011. Due to the favorable ruling from the Oregon Supreme Court regarding the Company's lawsuit filed in relation to the acquisition of inventory by Greenwood Products received in February 2012, the Company reversed $1,450,363 of its litigation reserve and accrued interest during the current nine month period. This contributed to the net income for the nine month period ended May 31, 2012 of $2,288,897, or $1.29 per share, compared to net income of $254,938, or $0.12 per share, in the prior year's period which was negatively affected by the Company accruing ($1,386,533) to the Litigation Reserve.
"Our continued focus of being a reliable and valuable supplier of quality products to our customers is reflected in our higher sales for both the quarter and nine month periods," said CEO Don Boone. "We have also successfully test marketed several new products, some of which have begun shipping to customers. However, high material and transportation costs continue to limit our margins."
As of May 31st, 2012, the Company's cash position was $4.64 million, and currently there is no borrowing against its $5.0 million line of credit. During the nine months ended May 31, 2012, the company repurchased and cancelled a total of 340,486 common shares at a total cost of $3,075,559, which represents an average cost of $9.03. On May 11, 2012, the Company announced the successful completion and early termination of its 10b5-1 share repurchase plan previously announced on January 17, 2012. As part of its ongoing consideration of alternative ways to leverage the Company's strong cash position, the Board of Directors is evaluating the implementation of another 10b5-1 share repurchase plan.
The Board of Directors is also evaluating the Company's dual listing status, and is considering dropping its Toronto Stock Exchange (TSX) listing.
Source: Jewett-Cameron Trading Company Ltd.
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