NORTH PLAINS, Ore.,
July 11, 2012 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF; TSX:
JCT) today reported financial results for the third quarter and
nine month periods of fiscal 2012 ended May
31, 2012.
Sales for the third quarter of fiscal 2012 totaled $16.11 million compared to sales of $12.91 million for the third quarter of fiscal
2011. For the quarter, income from operations was
$1,556,199 compared to $1,035,785 in the year-ago quarter. After other
items and income taxes, the Company reported net income of
$937,090, or $0.59 per basic and diluted share, compared to
net income of $604,324, or
$0.30 per share, in last year's third
quarter.
For the nine months ended May 31,
2012, Jewett-Cameron reported sales of $35.10 million compared to sales of $30.85 million for the nine months ended
May 31, 2011. Due to the favorable
ruling from the Oregon Supreme Court regarding the Company's
lawsuit filed in relation to the acquisition of inventory by
Greenwood Products received in February
2012, the Company reversed $1,450,363 of its litigation reserve and accrued
interest during the current nine month period. This contributed to
the net income for the nine month period ended May 31, 2012 of $2,288,897, or $1.29 per share, compared to net income of
$254,938, or $0.12 per share, in the prior year's period which
was negatively affected by the Company accruing ($1,386,533) to the Litigation Reserve.
"Our continued focus of being a reliable and valuable supplier
of quality products to our customers is reflected in our higher
sales for both the quarter and nine month periods," said CEO
Don Boone. "We have also
successfully test marketed several new products, some of which have
begun shipping to customers. However, high material and
transportation costs continue to limit our margins."
As of May 31st, 2012, the
Company's cash position was $4.64
million, and currently there is no borrowing against its
$5.0 million line of credit. During
the nine months ended May 31, 2012,
the company repurchased and cancelled a total of 340,486 common
shares at a total cost of $3,075,559,
which represents an average cost of $9.03. On May 11,
2012, the Company announced the successful completion and
early termination of its 10b5-1 share repurchase plan previously
announced on January 17, 2012. As
part of its ongoing consideration of alternative ways to leverage
the Company's strong cash position, the Board of Directors is
evaluating the implementation of another 10b5-1 share repurchase
plan.
The Board of Directors is also evaluating the Company's dual
listing status, and is considering dropping its Toronto Stock
Exchange (TSX) listing.
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)
|
|
|
May
31,
2012
|
August
31,
2011
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash equivalents
|
$
4,639,288
|
$
6,774,127
|
|
Accounts receivable, net of allowance of $2,852 (August 31,
2011 - $Nil)
|
5,173,954
|
3,897,086
|
|
Inventory, net of allowance of $181,960 (August 31, 2011 -
$204,860) (note 3)
|
4,998,450
|
5,815,593
|
|
Note receivable
|
61,500
|
41,500
|
|
Prepaid expenses
|
1,707,970
|
848,341
|
|
Prepaid income taxes
|
-
|
682,527
|
|
|
|
|
Total current assets
|
16,581,162
|
18,059,174
|
|
|
|
|
Property, plant and equipment, net (note
4)
|
1,758,584
|
1,850,037
|
|
|
|
|
Intangible assets, net (note 5)
|
464,707
|
510,771
|
|
|
|
|
Deferred income taxes (note 6)
|
155,810
|
157,862
|
|
|
|
|
Total
assets
|
$
18,960,263
|
$
20,577,844
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable
|
$
677,042
|
$
519,265
|
|
Litigation reserve (note 12(a))
|
177,552
|
1,627,915
|
|
Accrued liabilities
|
1,199,343
|
941,846
|
|
Accrued income taxes
|
204,170
|
-
|
|
|
|
|
Total current liabilities
|
2,258,107
|
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
|
|
|
|
1,567,971 common shares (August 31, 2011 -
1,908,457)
|
1,479,721
|
1,801,043
|
|
Additional paid-in capital
|
600,804
|
600,804
|
|
Retained earnings
|
14,621,631
|
15,086,971
|
|
|
|
|
Total stockholders' equity
|
16,702,156
|
17,488,818
|
|
|
|
|
Total liabilities and stockholders' equity
|
$
18,960,263
|
$
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
May
31,
|
|
Nine
Month Periods to
May
31,
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
SALES
|
$16,113,435
|
|
$12,913,331
|
|
$35,105,842
|
|
$30,858,396
|
|
|
|
|
|
|
|
|
|
COST OF SALES
|
13,306,308
|
|
10,483,142
|
|
28,741,219
|
|
24,856,594
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
2,807,127
|
|
2,430,189
|
|
6,364,623
|
|
6,001,802
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
233,947
|
|
399,226
|
|
1,122,892
|
|
1,297,627
|
|
Depreciation and amortization
|
61,279
|
|
65,296
|
|
186,773
|
|
196,430
|
|
Wages and employee benefits
|
955,702
|
|
929,882
|
|
2,663,388
|
|
2,637,929
|
|
1,250,928
|
|
1,394,404
|
|
3,973,053
|
|
4,131,986
|
|
|
|
|
|
|
|
|
|
Income
from operations
|
1,556,199
|
|
1,035,785
|
|
2,391,570
|
|
1,869,816
|
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
|
Loss on sale of property, plant
and equipment
|
-
|
|
(6,988)
|
|
-
|
|
(2,652)
|
|
Interest and other income
|
7,234
|
|
-
|
|
7,234
|
|
23
|
|
Interest expense
|
(743)
|
|
(16,333)
|
|
(743)
|
|
(424,344)
|
|
Litigation gain (loss) (Note
12(a))
|
-
|
|
-
|
|
1,443,629
|
|
(962,137)
|
|
6,491
|
|
(23,321)
|
|
1,450,120
|
|
(1,389,110)
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
1,562,690
|
|
1,012,464
|
|
3,841,690
|
|
480,706
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
625,600
|
|
408,140
|
|
1,552,793
|
|
225,768
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
937,090
|
|
$
604,324
|
|
$
2,288,897
|
|
$
254,938
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share
|
$
0.59
|
|
$
0.30
|
|
$
1.29
|
|
$
0.12
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per common share
|
$
0.59
|
|
$
0.30
|
|
$
1.29
|
|
$
0.12
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
1,599,851
|
|
2,002,355
|
|
1,773,859
|
|
2,108,585
|
|
Diluted
|
1,599,851
|
|
2,002,355
|
|
1,773,859
|
|
2,108,585
|
|
|
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed
in U.S. Dollars)
(Prepared
by Management)
(Unaudited)
|
|
|
|
Nine
Month Periods
Ended
May 31,
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
|
|
|
|
Net
income
|
$
2,288,897
|
|
$
254,938
|
|
Items not
involving an outlay of cash:
|
|
|
|
|
Depreciation and amortization
|
186,773
|
|
196,430
|
|
Loss on sale of property, plant and equipment
|
-
|
|
2,652
|
|
Deferred income tax expense (recovery)
|
2,052
|
|
3,582
|
|
Changes in
non-cash working capital items:
|
|
|
|
|
(Increase) decrease in accounts receivable
|
(1,276,868)
|
|
(677,014)
|
|
(Increase) decrease in inventory
|
817,143
|
|
(611,574)
|
|
(Increase) in note receivable
|
(20,000)
|
|
-
|
|
(Increase) decrease in prepaid expenses
|
(859,629)
|
|
(87,764)
|
|
(Increase) decrease in prepaid income taxes
|
682,527
|
|
(647,530)
|
|
Decrease in taxes receivable
|
-
|
|
-
|
|
(Decrease) increase in accounts payable and
accrued
liabilities
|
(1,035,089)
|
|
1,905,884
|
|
(Decrease) increase in accrued income taxes
|
204,170
|
|
-
|
|
Net cash
provided by operating activities
|
989,976
|
|
339,604
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES
|
|
|
|
|
Purchase of property, plant and equipment
|
(36,206)
|
|
(61,122)
|
|
Purchase of intangible assets and other
|
(13,050)
|
|
|
|
Proceeds from sale of property, plant and equipment
|
-
|
|
5,450
|
|
Net cash
used in investing activities
|
(49,256)
|
|
(55,672)
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES
|
|
|
|
|
Redemption
of common stock
|
(3,075,559)
|
|
(3,361,970)
|
|
Net cash
used in financing activities
|
(3,075,559)
|
|
(3,361,970)
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents
|
(2,134,839)
|
|
(3,078,038)
|
|
|
|
|
|
Cash
and cash equivalents, beginning of period
|
6,774,127
|
|
8,710,314
|
|
|
|
|
|
Cash
and cash equivalents, end of period
|
$
4,639,288
|
|
$
5,632,276
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Don Boone,
President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.