NORTH PLAINS, Ore.,
April 11, 2012 /PRNewswire/ --
Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF; TSX: JCT) today
reported financial results for the second quarter and six month
periods of fiscal 2012 ended February 29,
2012.
Sales for the second quarter of fiscal 2012 totaled $11.75 million compared to sales of $11.86 million for the second quarter of fiscal
2011. For the quarter, income from operations was
$672,436 compared to $755,337 in the year-ago quarter. In February 2012, the Company received a favorable
decision from the Oregon Supreme Court in the Company's lawsuit
filed in relation to the acquisition of inventory by Greenwood
Products. As a result, the current quarter's results include a
reversal of litigation reserves of $1,443,629 and interest expense of $16,023. These amounts have been treated as a
one-time gain and contributed to net income after other items and
income taxes of $1,287,774, or
$0.71 per share, compared to net
income of $496,949, or $0.25 per diluted share in last year's second
quarter.
For the six months ended February 29,
2012 Jewett-Cameron reported sales of $19.0 million compared to sales of $17.9 million for the same period a year ago. Net
income after other items and income taxes was $1,351,807, or $0.73 per share, compared to a net loss of
($349,386), or ($0.16) per share in the first six months of
fiscal 2011. The current six month period was positively affected
by the reversal of litigation reserves, while the year-ago six
month period was negatively affected by the Company accruing
($1,370,151) to the litigation
reserve.
"We are pleased with the higher level of sales for the six month
period and the favorable ruling by the Oregon Supreme Court," said
CEO Don Boone. "However, the higher
material and transportation costs continue to negatively affect our
margins and net income."
As of February 29, 2012, the
Company's cash position was $4.31
million, and currently there is no borrowing against its
$5.0 million line of credit. In the
second quarter of fiscal 2012, the Company repurchased and
cancelled 248,587 common shares at a cost of $2,238,929, which represents an average price of
$9.01 per share. These repurchases
were pursuant to a new share repurchase plan in accordance with
Rule 10b-18 approved by the Board of Directors on January 17, 2012 for the purchase and
cancellation of up to 300,000 common shares. These purchases are in
addition to the repurchase and cancellation of 50,000 common shares
at a total cost of $454,120 at an
average share price of $9.08 which
were completed in the first quarter of 2012 ended November 30, 2011. The current repurchase program
will remain in place until May 18,
2012 but may be limited or terminated at any time without
prior notice.
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 Lumber Corporation'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.
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)
|
|
February 29,
2012
|
August
31,
2011
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash equivalents
|
$
4,310,547
|
$
6,774,127
|
Accounts receivable, net of allowance
of $6,299 (August 31, 2011 -
$Nil)
|
3,954,043
|
3,897,086
|
Inventory, net of allowance of $192,810
(August 31, 2011 - $204,860)
(note 3)
|
6,483,367
|
5,815,593
|
Note receivable
|
61,500
|
41,500
|
Prepaid expenses
|
1,201,725
|
848,341
|
Prepaid income taxes
|
-
|
682,527
|
|
|
|
Total current assets
|
16,011,182
|
18,059,174
|
|
|
|
Property, plant and equipment, net (note
4)
|
1,793,962
|
1,850,037
|
|
|
|
Intangible assets, net (note 5)
|
484,932
|
510,771
|
|
|
|
Deferred income taxes (note 6)
|
156,305
|
157,862
|
|
|
|
Total
assets
|
$
18,446,381
|
$
20,577,844
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable
|
$
994,410
|
$
519,265
|
Litigation reserve (note 12(a))
|
184,286
|
1,627,915
|
Accrued liabilities
|
891,752
|
941,846
|
Accrued income taxes
|
228,358
|
-
|
|
|
|
Total current liabilities
|
2,298,806
|
3,089,026
|
|
|
|
|
|
|
Contingent liabilities and commitments (note
12)
|
|
|
|
|
|
Stockholders' equity
|
|
|
Capital stock (note 8)
|
|
|
Authorized
|
|
|
20,000,000 common
shares, without par value
|
|
|
10,000,000 preferred
shares, without par value
|
|
|
Issued
|
|
|
1,609,870 common shares (August 31, 2011 -
1,908,457)
|
1,519,261
|
1,801,043
|
Additional paid-in capital
|
600,804
|
600,804
|
Retained earnings
|
14,027,510
|
15,086,971
|
|
|
|
Total stockholders' equity
|
16,147,575
|
17,488,818
|
|
|
|
Total liabilities and stockholders' equity
|
$
18,446,381
|
$
20,577,844
|
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed
in U.S. Dollars)
(Prepared
by Management)
(Unaudited)
|
|
Three Month
Periods to the End
of
February
|
|
Six
Month
Periods to the End
of
February
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
SALES
|
$11,751,797
|
|
$11,860,014
|
|
$
18,992,407
|
|
$
17,945,065
|
|
|
|
|
|
|
|
|
COST OF SALES
|
9,660,496
|
|
9,734,195
|
|
15,434,911
|
|
14,373,452
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
2,091,301
|
|
2,125,819
|
|
3,557,496
|
|
3,571,613
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
460,595
|
|
418,217
|
|
888,944
|
|
898,401
|
Depreciation and amortization
|
64,297
|
|
65,757
|
|
125,495
|
|
131,134
|
Wages and employee benefits
|
893,973
|
|
886,508
|
|
1,707,686
|
|
1,708,047
|
|
|
|
|
|
|
|
|
|
1,418,865
|
|
1,370,482
|
|
2,722,125
|
|
2,737,582
|
|
|
|
|
|
|
|
|
Income
from operations
|
672,436
|
|
755,337
|
|
835,371
|
|
834,031
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
Gain (loss) on sale of property, plant
and
equipment
|
-
|
|
(1,114)
|
|
-
|
|
4,336
|
Interest and other income
|
-
|
|
-
|
|
-
|
|
26
|
Interest expense (note 12(a))
|
16,203
|
|
(16,023)
|
|
-
|
|
(408,014)
|
Litigation reserves (note
12(a))
|
1,443,629
|
|
-
|
|
1,443,629
|
|
(962,137)
|
|
1,459,832
|
|
(17,137)
|
|
1,443,629
|
|
(1,365,789)
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
2,132,268
|
|
738,200
|
|
2,279,000
|
|
(531,758)
|
|
|
|
|
|
|
|
|
Income tax
(expense) recovery
|
(844,494)
|
|
(241,251)
|
|
(927,193)
|
|
182,372
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
$
1,287,774
|
|
$
496,949
|
|
$
1,351,807
|
|
$
(349,386)
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per common share
|
$
0.71
|
|
$
0.25
|
|
$
0.73
|
|
$
(0.16)
|
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per common share
|
$
0.71
|
|
$
0.25
|
|
$
0.73
|
|
$
(0.16)
|
|
|
|
|
|
|
|
|
Weighted average number of common
shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
1,823,423
|
|
2,014,865
|
|
1,861,819
|
|
2,162,580
|
Diluted
|
1,823,423
|
|
2,014,865
|
|
1,861,819
|
|
2,162,580
|
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed
in U.S. Dollars)
(Prepared
by Management)
(Unaudited)
|
|
Six Month
Periods to the End
of February
|
|
2012
|
|
2011
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
|
|
|
Net income
(loss)
|
$
1,351,807
|
|
$
(349,386)
|
Items not
involving an outlay of cash:
|
|
|
|
Depreciation and amortization
|
125,495
|
|
131,134
|
Gain (loss) on sale of property, plant
and
equipment
|
-
|
|
(4,336)
|
Deferred income taxes
|
1,557
|
|
8,232
|
|
|
|
|
Changes in
non-cash working capital items:
|
|
|
|
Increase in accounts receivable
|
(56,957)
|
|
(2,062,853)
|
(Increase) decrease in inventory
|
(667,774)
|
|
(353,377)
|
Increase in note receivable
|
(20,000)
|
|
-
|
Increase in prepaid expenses
|
(353,385)
|
|
(104,470)
|
(Increase) decrease in prepaid income taxes
|
682,527
|
|
(567,112)
|
Increase in taxes receivable
|
-
|
|
(200,941)
|
Increase (decrease) in accounts payable and
accrued liabilities
|
(1,018,578)
|
|
2,007,459
|
Increase in accrued income taxes
|
228,358
|
|
-
|
|
|
|
|
Net cash
provided by (used in) operating activities
|
273,050
|
|
(1,495,650)
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES
|
|
|
|
Purchase of property, plant and equipment
|
(30,531)
|
|
(35,569)
|
Purchase of intangible assets and other
|
(13,050)
|
|
-
|
Proceeds from sale of property, plant and
equipment
|
-
|
|
5,450
|
|
|
|
|
Net cash
used in investing activities
|
(43,581)
|
|
(30,119)
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES
|
|
|
|
Redemption of common stock
|
(2,693,049)
|
|
(2,450,844)
|
|
|
|
|
Net cash
used in financing activities
|
(2,693,049)
|
|
(2,450,844)
|
|
|
|
|
Net
decrease in cash and cash equivalents
|
(2,463,580)
|
|
(3,976,613)
|
|
|
|
|
Cash
and cash equivalents, beginning of period
|
6,774,127
|
|
8,710,314
|
|
|
|
|
Cash
and cash equivalents, end of period
|
$
4,310,547
|
|
$
4,733,701
|
Contact: Don Boone, President
& CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.