Jewett-Cameron Announces 3rd Quarter Financial Results

Jewett-Cameron Announces 3rd Quarter Financial Results

PR Newswire

NORTH PLAINS, Ore., July 15, 2019 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine month periods of fiscal 2019 ended May 31, 2019.

Sales for the third quarter of fiscal 2019 totaled approximately $16.7 million compared to sales of $19.9 million for the third quarter of fiscal 2018. Income from operations was $1,506,638 compared to $2,008,845 for the third quarter ended May 31, 2018. Net income after other items and income taxes for the current quarter was $1,098,210, or $0.27 per share, compared to $1,389,209, or $0.31 per share, in the year-ago quarter.

For the nine months ended May 31, 2019, Jewett-Cameron reported sales of $33.6 million compared to sales of $42.7 million for the nine months ended May 31, 2018. Net income was $1,567,534, or $0.36 per share, compared to net income of $2,219,940, or $0.50 per share, in the first nine months of fiscal 2018.

"The rebound in sales during the third quarter from the slow start to the year is certainly encouraging, especially considering the sustained negative effects of poor weather and the higher China tariffs," said CEO Charlie Hopewell. "We are continuing our drive to develop additional revenue, including the introduction of several new products and the establishment of our new Chief Revenue Officer position."

As of May 31, 2019, the Company's cash position was approximately $3.4 million, and there was no borrowing against its $3.0 million line of credit. The Company has historically utilized its cash position by implementing share repurchase programs as an effective method of enhancing shareholder value. Since the start of a new repurchase plan on February 18, 2019, the Company has repurchased a total of 239,892 common shares at a cost of $2,076,609, or $8.66 per share.

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)



May 31,
2019


August 31,
2018







ASSETS












Current assets






  Cash and cash equivalents

$

3,437,995


$

6,097,463

  Accounts receivable, net of allowance of $Nil (August 31, 2018 - $Nil)


7,125,024



4,152,492

  Inventory, net of allowance of $67,276 (August 31, 2018 - $75,336)


8,629,973



9,803,197

  Note receivable


1,597



4,000

  Prepaid expenses


325,983



347,251

  Prepaid income taxes


180,285



114,310







  Total current assets


19,700,857



20,518,713







Property, plant and equipment, net


2,751,058



3,105,260







Intangible assets, net


3,183



3,590







Total assets

$

22,455,098


$

23,627,563













LIABILITIES AND STOCKHOLDERS' EQUITY












Current liabilities












  Accounts payable

$

643,340


$

377,092

  Accrued liabilities


1,446,811



1,795,207







  Total current liabilities


2,090,151



2,172,299







Deferred tax liability


85,850



81,853







Total liabilities


2,176,001



2,254,152







Stockholders' equity






  Capital stock






    Authorized






      21,567,564 common shares, without par value






      10,000,000 preferred shares, without par value






    Issued






      4,015,396 common shares (August 31, 2018 – 4,314,659)


947,310



1,017,908

  Additional paid-in capital


600,804



600,804

  Retained earnings


18,730,983



19,754,699







  Total stockholders' equity


20,279,097



21,373,411







  Total liabilities and stockholders' equity

$

22,455,098


$

23,627,563

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)



Three Month
Period Ended
May 31,


Nine Month
Period Ended
May 31,


2019


2018


2019


2018













SALES

$

16,692,241


$

19,934,709


$

33,615,516


$

42,690,017













COST OF SALES


13,054,487



15,944,995



25,907,388



33,877,749













GROSS PROFIT


3,637,754



3,989,714



7,708,128



8,812,268













OPERATING EXPENSES












  Selling, general and administrative expenses


759,708



596,830



1,721,743



1,658,781

  Depreciation and amortization


47,141



71,560



143,413



266,970

  Wages and employee benefits


1,324,267



1,312,479



3,799,700



3,587,126















(2,131,116)



(1,980,869)



(5,664,856)



(5,512,877)













Income from operations


1,506,638



2,008,845



2,043,272



3,299,391













OTHER ITEMS












  Gain (loss) on sale of property, plant and equipment


-



-



105,366



(27,022)

   Interest and other income


7,033



8,156



33,368



16,639



7,033



8,156



138,734



(10,383)













Income before income taxes


1,513,671



2,017,001



2,182,006



3,289,008













Income tax expense


(415,461)



(627,792)



(614,472)



(1,069,068)













Net income

$

1,098,210


$

1,389,209


$

1,567,534


$

2,219,940













Basic earnings per common share

$

0.27


$

0.31


$

0.36


$

0.50













Diluted earnings per common share

$

0.27


$

0.31


$

0.36


$

0.50













Weighted average number of common shares outstanding:












  Basic


4,022,587



4,468,988



4,318,128



4,468,988

  Diluted


4,022,587



4,468,988



4,318,128



4,468,988

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)



Nine Month
Period Ended
May 31,


2019


2018







CASH FLOWS FROM OPERATING ACTIVITIES






Net income

$

1,567,534


$

2,219,940

Items not involving an outlay of cash:






  Depreciation and amortization


143,413



266,970

  (Gain) loss on sale of property, plant and equipment


(105,366)



27,022

  Deferred income tax expense


3,997



41,435







Changes in non-cash working capital items:






  (Increase) in accounts receivable


(2,972,532)



(3,527,471)

  Decrease in inventory


1,173,224



1,094,535

  Decrease (increase) in prepaid expenses


21,268



(180,143)

  (Increase) in prepaid income taxes


(65,975)



(114,413)

  (Decrease) increase in accounts payable and accrued liabilities


(82,148)



609,313







Net cash (used in) provided by operating activities


(316,585)



437,188







CASH FLOWS FROM INVESTING ACTIVITIES






  Purchase of property, plant and equipment


(8,112)



(99,437)

  Proceeds from sale of property, plant and equipment


327,077



1,000







Net cash provided by (used in) investing activities


318,965



(98,437)







CASH FLOWS FROM FINANCING ACTIVITIES






  Redemption of common stock


(2,661,848)



-







Net (decrease) increase in cash


(2,659,468)



338,751







Cash, beginning of period


6,097,463



5,912,250







Cash, end of period

$

3,437,995


$

6,251,001

Contact: Charlie Hopewell, President & CEO, (503) 647-0110

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SOURCE Jewett-Cameron Trading Company Ltd.

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