JEWETT-CAMERON TRADING COMPANY LTD.
North Plains, Oregon, January 14, 2015 - Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2015 ended November 30, 2014.
Sales were $7.98 million for the first quarter of fiscal 2015 compared to sales of $8.01 for the first quarter of fiscal 2014. Income from operations for the quarter was $529,899 compared to $543,924 in the year-ago quarter. Net income was $327,787, or $0.12 per share, for the quarter compared to net income of $332,579, or $0.11 per share, for the first quarter of fiscal 2014. The net income per share was higher for the current quarter due to a lower weighted average number of common shares outstanding as a result of the Company's repurchase of common shares.
"Our markets remained competitive in the first quarter of fiscal 2015, and continued higher raw material prices continue to negatively pressure our profit margins," said CEO Don Boone. "However, the sales initiatives we initiated during fiscal 2014 have been successful in beginning to expand and diversify our customer base."
As of November 30, the Company's cash position was $1.984 million, and currently there is no borrowing against its $1.0 million line of credit. During the first quarter, the Company repurchased and cancelled a total of 118,969 common shares at an average price of $10.86 per share. The Company's most recent share repurchase plan expired on November 14, 2014. The Board of Directors will consider implementing new share repurchase plans in the future as an effective use of the Company's cash position.
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.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars) (Prepared by Management) (Unaudited)
November 30,2014
August 31,2014
ASSETS Current assetsCash $ 1,984,977 $ 4,327,540
Accounts receivable, net of allowance
of $Nil (August 31, 2014 - $Nil) 2,720,614 2,442,928
Inventory, net of allowance
of $87,800 (August 31, 2014 - $111,756) (note 3) | 10,744,751 | 9,154,129 |
Note receivable | - | 15,000 |
Prepaid expenses | 569,976 | 762,533 |
Prepaid income taxes | 341,176 | 546,347 |
Total current assets 16,361,494 17,248,477
Property, plant and equipment, net (note 4) | 2,097,760 | 2,147,387 |
Intangible assets, net (note 5) | 277,780 | 295,956 |
Total assets | $ 18,737,034 | $ 19,691,820 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities | ||
Accounts payable | $ 377,496 | $ 240,825 |
Litigation reserve (note 13(a)) | 110,726 | 117,387 |
Accrued liabilities | 950,107 | 1,073,930 |
Total current liabilities | 1,438,329 | 1,432,142 |
Deferred tax liability (note 6) | 64,689 | 60,972 |
Total liabilities | 1,503,018 | 1,493,114 |
Contingent liabilities and commitments (note 13) | ||
Stockholders' equity |
Capital stock (note 8)
Authorized
21,567,564 common shares, without par value
10,000,000 preferred shares, without par value
Issued
2,585,661 common shares (August 31, 2014 - 2,704,630) | 1,220,064 | 1,276,201 |
Additional paid-in capital | 600,804 | 600,804 |
Retained earnings | 15,413,148 | 16,321,701 |
Total stockholders' equity | 17,234,016 | 18,198,706 |
Total liabilities and stockholders' equity | $ 18,737,034 | $ 19,691,820 |
(Prepared by Management) (Unaudited)
Three Months Ended November 30,2014 2013
SALES $ 7,982,617 $ 8,006,281COST OF SALES | 6,112,594 | 6,156,502 |
GROSS PROFIT | 1,870,023 | 1,849,779 |
OPERATING EXPENSES Selling, general and administrative expenses | 461,448 | 391,886 |
Depreciation and amortization | 69,083 | 70,019 |
Wages and employee benefits | 809,593 | 843,950 |
1,340,124 | 1,305,855 | |
Income from operations | 529,899 | 543,924 |
OTHER ITEMS Interest and other income | 6,895 | 6,661 |
Gain on sale of equipment | - | 4,109 |
6,895 | 10,770 |
Income before income taxes 536,794 554,694
Income tax expense (209,007) (222,115)
Net income $ 327,787 $ 332,579 Basic earnings per common share $ 0.12 $ 0.11 Diluted earnings per common share $ 0.12 $ 0.11 Weighted average number of common shares outstanding:Basic 2,688,942 3,134,936
Diluted 2,688,942 3,134,936
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars)(Prepared by Management) (Unaudited)
Three Month Periods Ended November 30,2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 327,787 | $ 332,579 |
Items not involving an outlay of cash: | ||
Depreciation and amortization | 69,083 | 70,019 |
Gain on sale of equipment | - | (4,109) |
Deferred income taxes | 3,717 | (4,564) |
Interest income on litigation | (6,661) | (6,661) |
Changes in non-cash working capital items:
e
Net cash used by operating activities CASH FLOWS FROM INVESTING ACTIVITIES | (1,048,806) | (159,255) |
Purchase of property, plant and equipment | (1,280) | (57,918) |
Proceeds from sale of equipment | - | 4,800 |
Net cash used in investing activities | (1,280) | (53,118) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Redemption of common stock | (1,292,477) | - |
Net cash used in financing activities | (1,292,477) | - |
Net decrease in cash | (2,342,563) | (212,373) |
Cash, beginning of period | 4,327,540 | 8,308,445 |
Cash, end of period | $ 1,984,977 | $ 8,096,072 |
Contact: Don Boone, President & CEO, (503) 647-0110
Source: Jewett-Cameron Trading Company Ltd.
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