By NORTH PLAINS, Ore., Jan. 13, 2014 /PRNewswire/ -- 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.
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.
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
November 30, August 31,
2013 2013
---- ----
ASSETS
Current assets
Cash $8,096,072 $8,308,445
Accounts receivable, net of allowance
of $Nil (August 31, 2013 - $Nil) 2,237,734 3,344,777
Inventory, net of allowance
of $134,259 (August 31, 2013 -
$134,259) (note 3) 8,374,751 8,520,991
Note receivable - 15,000
Prepaid expenses 883,172 587,609
Prepaid income taxes 43,744 270,423
------ -------
Total current assets 19,635,473 21,047,245
Property, plant and equipment, net
(note 4) 2,247,334 2,241,950
Intangible assets, net (note 5) 350,486 368,662
------- -------
Total assets $22,233,293 $23,657,857
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $453,525 $1,715,458
Litigation reserve (note 13(a)) 137,442 144,103
Accrued liabilities 665,897 1,149,882
------- ---------
Total current liabilities 1,256,864 3,009,443
Deferred tax liability (note 6) 45,829 50,393
------ ------
Total liabilities 1,302,693 3,059,836
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
3,134,936 common shares (August 31,
2013 -3,134,936) 1,479,246 1,479,246
Additional paid-in capital 600,804 600,804
Retained earnings 18,850,550 18,517,971
---------- ----------
Total stockholders' equity 20,930,600 20,598,021
---------- ----------
Total liabilities and stockholders'
equity $22,233,293 $23,657,857
=================================== =========== ===========
JEWETT-CAMERON TRADING COMPANY
LTD.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Months Ended
November 30,
2013 2012
---- ----
SALES $8,006,281 $9,296,405
COST OF SALES 6,156,502 7,305,399
--------- ---------
GROSS PROFIT 1,849,779 1,991,006
OPERATING EXPENSES
Selling, general and
administrative expenses 391,886 335,820
Depreciation and amortization 70,019 57,494
Wages and employee benefits 843,950 825,307
------- -------
1,305,855 1,218,621
Income from operations 543,924 772,385
OTHER ITEMS
Interest and other income 6,661 16,710
Gain on sale of equipment 4,109 -
----- ---
10,770 16,710
Income before income taxes 554,694 789,095
Income tax expense (222,115) (308,349)
-------- --------
Net income $332,579 $480,746
========== ======== ========
Basic earnings per common share $0.11 $0.15
Diluted earnings per common
share $0.11 $0.15
Weighted average number of
common shares outstanding:
Basic 3,134,936 3,135,942
Diluted 3,134,936 3,135,942
======= ========= =========
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,
2013 2012
---- ----
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income $332,579 $480,746
Items not involving an outlay of
cash:
Depreciation and amortization 70,019 57,494
Gain on sale of equipment (4,109) -
Deferred income taxes (4,564) 14,323
Interest income on litigation (6,661) (6,661)
Changes in non-cash working
capital items:
Decrease in accounts receivable 1,107,043 426,020
Decrease in inventory 146,240 1,324,365
Decrease in note receivable 15,000 20,000
Decrease in prepaid income taxes 226,679 -
Increase in prepaid expenses (295,563) (1,579,612)
Decrease in accounts payable and
accrued liabilities (1,745,918) (971,229)
Increase in accrued income taxes - 293,754
--- -------
Net cash provided (used) by
operating activities (159,255) 59,200
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of property, plant and
equipment (57,918) (112,133)
Proceeds from sale of equipment 4,800 -
----- ---
Net cash used in investing
activities (53,118) (112,133)
Net decrease in cash (212,373) (52,933)
Cash, beginning of period 8,308,445 7,309,388
--------- ---------
Cash, end of period $8,096,072 $7,256,455
=================== ========== ==========
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
