NORTH PLAINS, Ore., Jan. 13 /PRNewswire-FirstCall/ -- Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF; TSX: JCT) today reported financial results for the first quarter of fiscal 2010 ended November 30, 2009.
Sales for the first quarter of fiscal 2010 totaled $7.37 million compared to sales of $10.78 million for the first quarter of 2009. The company reported net income of $72,630, or $.03 per diluted share compared to net income of $293,475 or $.12 per diluted share in the same period a year ago.
"The current economic downturn has affected all our product segments, with total Company sales down about 32% for the quarter," said CEO Don Boone. "We also finalized a one-time $463,498 inventory write-down during the quarter due to the significant decrease in market value."
Jewett-Cameron's financial position continues to be strong, and currently has no borrowing against its $5.0 million line of credit. As of November 30, 2009 the Company's cash position was $7.6 million.
About Jewett-Cameron Trading Company Ltd.
Jewett-Cameron Trading Company is a holding company that operates through subsidiary companies as follows. Jewett-Cameron Lumber Corporation's business consists of warehouse distribution and direct sales of wood products and specialty metal products to home centers and other retailers. Greenwood Products is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries. 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.
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.
Three Month Periods Ended November 30, 2009 2008 ---- ---- SALES $7,374,926 $10,782,063 COST OF SALES 5,759,328 8,565,598 GROSS PROFIT 1,615,598 2,216,465 OPERATING EXPENSES Selling, general and administrative expenses 540,715 554,125 Depreciation and amortization 60,696 79,401 Wages and employee benefits 880,287 1,061,884 ------- --------- 1,481,698 1,695,410 Income from operations 133,900 521,055 OTHER ITEMS Interest and other income 1,760 11,344 Interest expense - (36,924) --- ------- 1,760 (25,580) Income before income taxes 135,660 495,475 Income taxes 63,030 202,000 ------ ------- Net income $72,630 $293,475 ========== ======= ======== Basic earnings per common share $.03 $.12 Diluted earnings per common share $.03 $.12 Weighted average number of common shares outstanding: Basic 2,390,977 2,390,977 Diluted 2,390,977 2,390,977 ======= ========= =========
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) (Prepared by Management) November 30, August 31, ------------ ---------- 2009 2009 (Unaudited) (Audited) ----------- --------- ASSETS Current assets Cash and cash equivalents $7,648,583 $6,828,571 Accounts receivable, net of allowance of $0 (August 31, 2009 - $3,816) 2,213,047 3,603,916 Inventory, net of allowance of $0 (August 31, 2009 -$313,000) (note 3) 6,805,391 6,954,811 Note receivable 41,500 41,500 Prepaid expenses 126,687 160,809 Prepaid income taxes 110,863 43,805 ------- ------ Total current assets 16,946,071 17,633,412 Property, plant and equipment, net (note 4) 1,873,852 1,872,191 Intangible assets, net (note 5) 642,476 662,045 Deferred income taxes (note 6) 132,100 261,780 ------- ------- Total assets $19,594,499 $20,429,428 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Accounts payable $243,194 $999,562 Accrued liabilities 665,769 816,960 ------- ------- Total liabilities 908,963 1,816,522 Contingent liabilities and commitments (note 11) Stockholders' equity Capital stock (note 8) Authorized 20,000,000 common shares, without par value 10,000,000 preferred shares, without par value Issued 2,390,977 common shares (August 31, 2009 - 2,390,977) 2,256,112 2,256,112 Additional paid-in capital 600,804 600,804 Retained earnings 15,828,620 15,755,990 ---------- ---------- Total stockholders' equity 18,685,536 18,612,906 ---------- ---------- Total liabilities and stockholders' equity $19,594,499 $20,429,428 =================================== =========== ===========
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, 2009 2008 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net income $72,630 $293,475 Items not involving an outlay of cash: Depreciation and amortization 60,696 79,401 Deferred income taxes 129,680 (11,940) Changes in non-cash working capital items: Decrease in accounts receivable 1,390,869 2,112,327 (Increase) decrease in inventory 149,420 (264,448) Decrease in prepaid expenses 34,121 46,970 (Decrease) in accounts payable and accrued liabilities (907,558) (917,688) Increase (decrease) in accrued income taxes (67,058) 209,629 ------- ------- Net cash provided by operating activities 862,800 1,547,726 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (42,788) (12,043) ------- ------- Net cash used in investing activities (42,788) (12,043) CASH FLOWS FROM FINANCING ACTIVITIES Promissory note - (16,630) --- ------- Net cash provided by (used in) financing activities - (16,630) Net increase in cash and cash equivalents 820,012 1,519,053 Cash and cash equivalents, beginning of period 6,828,571 5,758,479 --------- --------- Cash and cash equivalents, end of period $7,648,583 $7,277,532 ================================= ========== ==========
Following is a summary of segmented information for the three month periods ended November 30:
2009 2008 ---- ---- Sales to unaffiliated customers: Industrial wood products $2,419,765 $3,281,558 Lawn, garden, pet and other 3,651,100 5,526,956 Seed processing and sales 864,161 1,710,648 Industrial tools and clamps 439,900 262,901 ------- ------- $7,374,926 $10,782,063 Income (loss) before income taxes: Industrial wood products $(10,812) $(120,349) Lawn, garden, pet and other 640,591 539,684 Seed processing and sales (481,506) 97,510 Industrial tools and clamps 18,323 6,223 Unallocated overhead (30,936) (27,593) ------- ------- $135,660 $495,475 ======== ========
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.