Jewett-Cameron Announces 1st Quarter Financial Results
22 January 2019
NORTH PLAINS, Ore., Jan. 14, 2019 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2019 ended November 30, 2018.
Sales for the first quarter of fiscal 2019 totaled $9.1 million compared to sales of $9.4 million for the first quarter of fiscal 2018. Net income was $349,694, or $0.08 per share, compared to net income of $323,433, or $0.07 per share, in the year-ago quarter.
"The implementation of higher tariffs on our products manufactured in China had a negative effect on our sales during the current quarter," said CEO Charlie Hopewell. "However, our efforts to mitigate these higher costs including some price increases, combined with a favorable product mix, did result in higher margins during the quarter. We also added new customers and will continue to work to expand our client base both domestically and internationally."
As of November 30, 2018, the Company's cash position was approximately $5.4 million, and there was no borrowing against its $3.0 million line of credit. During the quarter, 95,671 common shares were repurchased at a cost of $893,376, which is an average share price of $9.34 per share. These purchases completed the 250,000 share repurchase plan originally announced in June 2018. The Company has historically utilized its cash position by implementing share repurchase programs as an effective method of enhancing shareholder value, and the Board of Directors will consider implementing new share repurchase plans in the future.
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. | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(Expressed in U.S. Dollars) | |||||
(Prepared by Management) | |||||
(Unaudited) | |||||
November 30, | August 31, | ||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 5,427,820 | $ | 6,097,463 | |
Accounts receivable, net of allowance of $Nil (August 31, 2018 - $Nil) | 3,734,550 | 4,152,492 | |||
Inventory, net of allowance of $75,336 (August 31, 2018 - $75,336) | 10,925,010 | 9,803,197 | |||
Note receivable | 2,097 | 4,000 | |||
Prepaid expenses | 504,612 | 347,251 | |||
Prepaid income taxes | - | 114,310 | |||
Total current assets | 20,594,089 | 20,518,713 | |||
Property, plant and equipment, net | 3,054,525 | 3,105,260 | |||
Intangible assets, net | 3,455 | 3,590 | |||
Total assets | $ | 23,652,069 | $ | 23,627,563 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 1,478,454 | $ | 377,092 | |
Accrued liabilities | 1,229,877 | 1,795,207 | |||
Income taxes payable | 27,330 | - | |||
Total current liabilities | 2,735,661 | 2,172,299 | |||
Deferred tax liability (note 6) | 86,679 | 81,853 | |||
Total liabilities | 2,822,340 | 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 | |||||
4,218,988 common shares (August 31, 2018 – 4,314,659) | 995,337 | 1,017,908 | |||
Additional paid-in capital | 600,804 | 600,804 | |||
Retained earnings | 19,233,588 | 19,754,699 | |||
Total stockholders' equity | 20,829,729 | 21,373,411 | |||
Total liabilities and stockholders' equity | $ | 23,652,069 | $ | 23,627,563 | |
JEWETT-CAMERON TRADING COMPANY LTD. | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(Expressed in U.S. Dollars) | |||||
(Prepared by Management) | |||||
(Unaudited) | |||||
Three Months Ended | |||||
2018 | 2017 | ||||
SALES | $ | 9,066,100 | $ | 9,413,970 | |
COST OF SALES | 6,757,014 | 7,227,222 | |||
GROSS PROFIT | 2,309,086 | 2,186,748 | |||
OPERATING EXPENSES | |||||
Selling, general and administrative expenses | 556,148 | 445,877 | |||
Depreciation and amortization | 50,870 | 72,665 | |||
Wages and employee benefits | 1,223,059 | 1,097,904 | |||
1,830,077 | 1,616,446 | ||||
Income from operations | 479,009 | 570,302 | |||
OTHER ITEMS | |||||
Loss on sale of property, plant and equipment | - | (27,552) | |||
Interest and other income | 17,151 | 2,690 | |||
17,151 | (24,862) | ||||
Income before income taxes | 496,160 | 545,440 | |||
Income tax expense | (146,466) | (223,007) | |||
Net income | $ | 349,694 | $ | 322,433 | |
Basic earnings per common share | $ | 0.08 | $ | 0.07 | |
Diluted earnings per common share | $ | 0.08 | $ | 0.07 | |
Weighted average number of common shares outstanding: | |||||
Basic | 4,256,361 | 4,468,988 | |||
Diluted | 4,256,361 | 4,468,988 | |||
JEWETT-CAMERON TRADING COMPANY LTD. | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(Expressed in U.S. Dollars) | |||||
(Prepared by Management) | |||||
(Unaudited) | |||||
Three Months Ended | |||||
2018 | 2017 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income | $ | 349,694 | $ | 322,433 | |
Items not involving an outlay of cash: | |||||
Depreciation and amortization | 50,870 | 72,665 | |||
Loss on sale of property, plant and equipment | - | 27,552 | |||
Deferred income taxes | 4,826 | (21,565) | |||
Changes in non-cash working capital items: | |||||
Decrease (increase) in accounts receivable | 417,942 | 201,514 | |||
(Increase) decrease in inventory | (1,121,813) | (312,590) | |||
Decrease in note receivable | 1,903 | - | |||
(Increase) in prepaid expenses | (157,361) | (444,782) | |||
Increase (decrease) in accounts payable and accrued liabilities | 536,032 | (135,512) | |||
Decrease in prepaid income taxes | 114,310 | - | |||
Increase in income taxes payable | 27,330 | - | |||
Net cash provided by (used by) operating activities | 223,733 | (290,285) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of property, plant and equipment | - | (61,899) | |||
Net cash used in investing activities | - | (61,899) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Redemption of common stock | (893,376) | - | |||
Net cash used in financing activities | (893,376) | - | |||
Net decrease in cash | (669,643) | (352,184) | |||
Cash, beginning of period | 6,097,463 | 5,912,250 | |||
Cash, end of period | $ | 5,427,820 | $ | 5,560,066 | |
Contact: Charlie Hopewell, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
