Jewett-Cameron Announces Fiscal 2016 Financial Results

Jewett-Cameron Announces Fiscal 2016 Financial Results

PR Newswire

NORTH PLAINS, Ore., Nov. 2, 2016 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2016.

For the fiscal year ended August 31, 2016 Jewett-Cameron reported net income of $2,125,099, or $0.87 per share, on sales of $48.11 million compared to net income of $1,773,971, or $0.69 per share, on sales of $42.24 million reported for fiscal 2015.

Sales for the fourth quarter of fiscal 2016 totaled $10.5 million compared to sales of $11.5 million for the fourth quarter of fiscal 2015. Net income was $552,164, or $0.23 per diluted share, compared to net income of $701,524, or $0.27 per diluted share, in the fourth quarter of fiscal 2015.

"The continued acceptance of several new products we introduced beginning in fiscal 2015 has had a positive effect on our sales and financial results" said CEO Don Boone. "We are also continuing construction of a warehouse expansion at our North Plains headquarters which will support the distribution of additional new products in the future".

During fiscal 2016, the Company settled all of the litigation with Greenwood Forest Products, Inc. The Company made a cash payment of $200,000 to Greenwood Forest Products, Inc., as full settlement and termination of the litigation.

As of August 31, 2016, the Company's cash position was $4.5 million, and currently there is no borrowing against its $3.0 million line of credit. During fiscal 2016, the Company repurchased and cancelled a total of 175,538 common shares at a cost of $2,124,579, which represents an average price of $12.10. Donald M. Boone, CEO, President and Director, also voluntarily returned 15,000 common shares to the Company's treasury for cancellation in June 2016, which was in addition to the 15,000 common shares he returned for cancellation in August 2015. The Company paid Mr. Boone no consideration for the 30,000 shares. The Company's most recent share repurchase plan terminated on August 25, 2016. 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.

 

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

AS OF AUGUST 31



2016


2015





ASSETS








Current assets




  Cash

$  4,519,922


$  4,416,297

  Accounts receivable, net of allowance of $Nil (August 31, 2015 - $Nil)

3,342,204


3,688,247

  Inventory, net of allowance of $176,717 (August 31, 2015 - $120,824)

8,069,017


8,351,575

  Note receivable

-


1,310

  Prepaid expenses

832,895


719,459

  Prepaid income taxes

596


26,570





  Total current assets

16,764,634


17,203,458





Property, plant and equipment, net

2,954,595


2,231,711





Intangible assets, net

150,543


223,250





Total assets

$  19,869,772


$  19,658,419









LIABILITIES AND STOCKHOLDERS' EQUITY








Current liabilities








  Accounts payable

$  839,972


$  984,955

  Litigation reserve

-


90,671

  Accrued liabilities

1,473,792


1,024,358





  Total current liabilities

2,313,764


2,099,984





Deferred tax liability

31,353


34,300





Total liabilities

2,345,117


2,134,284





Contingent liabilities and commitments








Stockholders' equity




  Capital stock




     Authorized




      21,567,564 common shares, without par value




      10,000,000 preferred shares, without par value




    Issued




      2,286,294 common shares (August 31, 2015 – 2,476,832)

1,078,759


1,168,712

  Additional paid-in capital

600,804


600,804

  Retained earnings

15,845,092


15,754,619





  Total stockholders' equity

17,524,655


17,524,135





  Total liabilities and stockholders' equity

$  19,869,772


$  19,658,419





 

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31



2016


2015









SALES

$  48,110,998


$  42,238,151





COST OF SALES

38,374,405


33,821,114





GROSS PROFIT

9,736,593


8,417,037





OPERATING EXPENSES




Selling, general and administrative

1,789,230


1,814,899

Depreciation and amortization

276,268


281,762

Wages and employee benefits

4,055,948


3,396,793






6,121,446


5,493,454









Income from operations

3,615,146


2,923,583





OTHER ITEMS




Gain on sale of property, plant and equipment

5,600


-

Interest and other income

15,164


31,993

Interest expense

(27)


-

Litigation expense

(115,990)


-


(95,253)


31,993





Income before income taxes

3,519,893


2,955,576





Income taxes




Current

1,394,794


1,208,277

Deferred

(2,947)


(26,672)





Net income for the year

2,125,099


1,773,971





Basic earnings per common share

$            0.87


$           0.69





Diluted earnings per common share

$            0.87


$           0.69





Weighted average number of common shares outstanding:




Basic

2,435,650


2,581,850

Diluted

2,435,650


2,581,850

 

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31



2016


2015









CASH FLOWS FROM OPERATING ACTIVITIES




Net income for the year

$  2,125,099


$  1,773,971

Items not affecting cash:




Depreciation and amortization

276,268


281,762

Gain on sale of property, plant and equipment

(5,600)


-

Deferred income taxes

(2,947)


(26,672)

Interest income on litigation

(6,661)


(26,716)

Decrease in litigation reserve

(84,010)


-





Changes in non-cash working capital items:




Decrease (increase) in accounts receivable

346,043


(1,245,319)

Decrease in note receivable

1,310


13,690

Decrease in inventory

282,558


802,554

(Increase) decrease in prepaid expenses

(113,436)


43,074

Decrease in prepaid income taxes

25,974


519,777

Increase in accounts payable and accrued liabilities

304,451


694,558





Net cash provided by operating activities

3,149,049


2,830,679





CASH FLOWS FROM INVESTING ACTIVITIES




Proceeds on sale of property, plant and equipment

5,600


-

Purchase of property, plant and equipment

(926,445)


(293,380)





Net cash used in investing activities

(920,845)


(293,380)





CASH FLOWS FROM FINANCING ACTIVITIES




Redemption of common stock

(2,124,579)


(2,448,542)





Net cash used in financing activities

(2,124,579)


(2,448,542)





Net increase in cash

103,625


88,757





Cash, beginning of year

4,416,297


4,327,540





Cash, end of year

4,519,922


4,416,297

 

Contact: Don Boone, President & CEO, (503) 647-0110

 

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SOURCE Jewett-Cameron Trading Company Ltd.

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