NORTH PLAINS, Ore., July 13, 2011 -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF; TSX: JCT) today reported financial results for the third quarter and nine month periods of fiscal 2011 ended May 31, 2011.
Sales for the third quarter of fiscal 2011 totaled $12.91 million compared to sales of $12.48 million for the third quarter of fiscal 2010. For the quarter, income from operations was $1,035,785 compared to $1,320,202 in the year-ago quarter. After other items and income taxes, the Company reported net income of $604,324 or $0.30 per basic and diluted share, compared to net income of $796,967, or $0.33 per share in last year's third quarter.
For the nine months ended May 31, 2011 Jewett-Cameron reported sales of $30.85 million compared to sales of $27.53 million for the same period a year ago. Due to a litigation reserve of ($1,386,481), the Company reported net income of $254,938, or $0.12 per share, compared to net income of $1,074,069, or $0.45 per share in the first nine months of fiscal 2010.
"Our efforts to increase our market share with our existing customers is reflected in our higher sales for both the quarter and nine months," said CEO Don Boone. "However, rising material and transportation costs are having a negative effect on our margins and net income."
As of May 31st, the Company's cash position was $5.63 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 up to 300,000 common shares representing approximately 16% of the approximately 1.9 million common shares outstanding. This share repurchase plan may commence on July 25, 2011 and will remain in place until October 21, 2011, but may be limited or terminated at any time without prior notice. In the first nine months of fiscal 2011, the Company re-purchased and cancelled a total of a total of 392,980 common shares under prior formal plans of repurchase. The total cost was $3,361,970 at an average share price of $8.56 per share. These purchases were in addition to the 79,040 common shares repurchased and cancelled in the fourth quarter of fiscal 2010.
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 Lumber Corporation'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.
Sales for the third quarter of fiscal 2011 totaled $12.91 million compared to sales of $12.48 million for the third quarter of fiscal 2010. For the quarter, income from operations was $1,035,785 compared to $1,320,202 in the year-ago quarter. After other items and income taxes, the Company reported net income of $604,324 or $0.30 per basic and diluted share, compared to net income of $796,967, or $0.33 per share in last year's third quarter.
For the nine months ended May 31, 2011 Jewett-Cameron reported sales of $30.85 million compared to sales of $27.53 million for the same period a year ago. Due to a litigation reserve of ($1,386,481), the Company reported net income of $254,938, or $0.12 per share, compared to net income of $1,074,069, or $0.45 per share in the first nine months of fiscal 2010.
"Our efforts to increase our market share with our existing customers is reflected in our higher sales for both the quarter and nine months," said CEO Don Boone. "However, rising material and transportation costs are having a negative effect on our margins and net income."
As of May 31st, the Company's cash position was $5.63 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 up to 300,000 common shares representing approximately 16% of the approximately 1.9 million common shares outstanding. This share repurchase plan may commence on July 25, 2011 and will remain in place until October 21, 2011, but may be limited or terminated at any time without prior notice. In the first nine months of fiscal 2011, the Company re-purchased and cancelled a total of a total of 392,980 common shares under prior formal plans of repurchase. The total cost was $3,361,970 at an average share price of $8.56 per share. These purchases were in addition to the 79,040 common shares repurchased and cancelled in the fourth quarter of fiscal 2010.
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 Lumber Corporation'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.
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