Jewett-Cameron Announces Fiscal 2019 Financial Results

Jewett-Cameron Announces Fiscal 2019 Financial Results

PR Newswire

NORTH PLAINS, Ore., Nov. 13, 2019

NORTH PLAINS, Ore., Nov. 13, 2019 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2019.

For the fiscal year ended August 31, 2019, Jewett-Cameron reported sales of $45.4 million and net income of $2,100,452, or $0.50 per shares, compared to sales of $53.9 million and net income of $2,920,639, or $0.66 per share, for fiscal 2018.

Sales for the fourth quarter of fiscal 2019 totaled $11.8 million compared to sales of $11.2 in the prior year's fourth quarter.

Net income was $532,918, or $0.13 per share, compared to net income of $700,699, or $0.16 per share, in the fourth quarter of fiscal 2018.

"The prolonged wet weather during the spring and early summer across North America delayed the purchase of lawn and garden products," said CEO Charlie Hopewell. "The poor weather, combined with the increase in US tariffs on many of our Chinese manufactured metal products, were primarily responsible for the decline in our 2019 sales and earnings. However, we were notified in September 2019 that many of our Chinese manufactured products will be exempted from tariffs going forward. This reclassification should help the Company's products to remain competitive in the marketplace."

As of August 31, 2019, the Company's cash position was $9.65 million, and currently there is no borrowing against its $3.0 million line of credit. During fiscal 2019, the Company repurchased for cancellation a total of 345,671 common shares at a cost of $3,061,441, which represents an average price of $8.86 per share. The Board may consider utilizing a portion of the Company's cash position to repurchase additional shares in the future.

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 patented and patent pending specialty metal products, wholesale distribution of wood products, seed processing and sales, and sales of industrial tools and clamps. The Company's brands include Lucky Dog, Animal House and AKC licensed products in the expanding pet market; fencing products under the Adjust-A-Gates, Fit-Right, Perimeter Patrol, and INFINITY Euro fence systems brands; Early Start, Spring Gardner, and Weatherguard for greenhouses; and TrueShade for patio umbrellas, furniture covers and canopies. Additional information about the Company and its products can be found the Company's website at www.jewettcameron.com.

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



2019


2018







ASSETS












Current assets






  Cash and cash equivalents

$

9,652,310


$

6,097,463

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


2,835,952



4,152,492

  Inventory, net of allowance of $119,357 (August 31, 2018 - $75,336)


6,377,805



9,803,197

  Note receivable


1,197



4,000

  Prepaid expenses


393,539



347,251

  Prepaid income taxes


223,420



114,310







  Total current assets


19,484,223



20,518,713







Property, plant and equipment, net


2,727,406



3,105,260







Intangible assets, net


3,048



3,590







Total assets

$

22,214,677


$

23,627,563







LIABILITIES AND STOCKHOLDERS' EQUITY












Current liabilities












  Accounts payable

$

410,027


$

377,092

  Accrued liabilities


1,312,580



1,795,207







  Total current liabilities


1,722,607



2,172,299







Deferred tax liability


61,204



81,853







Total liabilities


1,783,811



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






      3,971,282 common shares (August 31, 2018 – 4,314,659)


936,903



1,017,908

  Additional paid-in capital


618,707



600,804

  Retained earnings


18,875,256



19,754,699







  Total stockholders' equity


20,430,866



21,373,411







  Total liabilities and stockholders' equity

$

22,214,677


$

23,627,563

 

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31



2019


2018







SALES

$

45,446,362


$

53,923,152







COST OF SALES


35,481,931



42,325,338







GROSS PROFIT


9,964,431



11,597,814







OPERATING EXPENSES






Selling, general and administrative


2,127,296



2,103,899

Depreciation and amortization


191,819



274,065

Wages and employee benefits


4,907,766



4,943,431









7,226,881



7,321,395







Income from operations


2,737,550



4,276,419







OTHER ITEMS






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


105,366



(27,022)

Interest and other income


45,228



30,026



150,594



3,004







Income before income taxes


2,888,144



4,279,423







Income taxes






Current


808,341



1,288,275

Deferred (recovery)


(20,649)



70,509







Net income for the year

$

2,100,452


$

2,920,639







Basic earnings per common share

$

0.50


$

0.66







Diluted earnings per common share

$

0.50


$

0.66







Weighted average number of common shares outstanding:






Basic


4,233,304



4,430,940

Diluted


4,233,304



4,430,940

 

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31



2019


2018







CASH FLOWS FROM OPERATING ACTIVITIES






Net income for the year

$

2,100,452


$

2,920,639

Items not affecting cash:






Depreciation and amortization


191,819



274,065

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


(105,366)



27,022

Deferred income taxes


(20,649)



70,509







Changes in non-cash working capital items:






Decrease (increase) in accounts receivable


1,316,540



(587,437)

Decrease (increase) in note receivable


2,803



(4,000)

Decrease (increase) in inventory


3,425,392



(995,652)

(Increase) decrease in prepaid expenses


(46,288)



248,525

(Increase) in prepaid income taxes


(109,110)



(114,310)

(Decrease) in accounts payable and accrued liabilities


(449,692)



(273,021)







Net cash provided by operating activities


6,305,901



1,566,340







CASH FLOWS FROM INVESTING ACTIVITIES






Proceeds on sale of property, plant and equipment


324,675



1,000

Purchase of property, plant and equipment


(32,732)



(110,528)







Net cash used in investing activities


291,943



(109,528)







CASH FLOWS FROM FINANCING ACTIVITIES






Issuance of common stock


18,444



-

Redemption of common stock


(3,061,441)



(1,271,599)







Net cash used in financing activities


(3,042,997)



(1,271,599)







Net increase in cash


3,554,847



185,213







Cash, beginning of year


6,097,463



5,912,250







Cash, end of year

$

9,652,310


$

6,097,463

 

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

 

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SOURCE Jewett-Cameron Trading Company Ltd.

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