NORTH PLAINS, Ore.,
Nov. 7, 2012 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today
reported financial results for its fourth quarter and fiscal year
ended August 31, 2012.
For the fiscal year ended August 31,
2012 Jewett-Cameron reported net income after other items
and income taxes of $3,059,931, or
$1.78 per diluted share, on sales of
$45.95 million, compared to net
income of $902,394, or $0.44 per diluted share, on sales of $42.06 million, reported for fiscal 2011. The net
income in the current year was positively affected by litigation
income and related interest of $1,457,096. The prior years' results were
negatively affected by a litigation loss and related interest
expenses of ($1,402,863).
Sales for the fourth quarter of fiscal 2012 totaled $10.8 million compared to sales of $11.2 million for the fourth quarter of fiscal
2011. The company reported net income of $771,034, or $0.45
per diluted share, compared to net income of $647,456, or $0.31
per diluted share, in the fourth quarter of fiscal 2011.
"We have continued to focus on our strengths of being a reliable
and valuable supplier of quality products to our customers. Our
successful efforts are reflected in our higher sales and income
from operations for the year," said CEO Don
Boone. "We also began shipping several new products to
complement our existing product lines. However, higher material and
transportation costs continue to have a negative effect on our
margins."
As of August 31, 2012, the
Company's cash position was $7.3
million, and currently there is no borrowing against its
$5.0 million line of credit.
During fiscal 2012, the Company re-purchased and cancelled a
total of 340,486 shares of its common stock at an average price of
$9.03 per share. The total cost of
these share repurchases in fiscal 2012 was $3,075,559. On August 17,
2012, the Company announced the Board of Directors had
authorized a new Rule 10b-18 share repurchase plan to purchase for
cancellation up to 400,000 common shares. This share repurchase
plan commenced on August 20, 2012 and
will remain in place until March 15,
2013 but may be limited or terminated at any time without
prior notice. As of November 7, 2012,
no common shares have been repurchased under the new plan.
About Jewett-Cameron Trading Company Ltd.
Jewett-Cameron Trading Company is a holding company that
operates through subsidiary companies as follows. Jewett-Cameron
Lumber Corporation is a wholesaler of wood products and a
manufacturer and distributor of specialty metal products, sold
principally to home centers and other retailers. Greenwood
Products is a processor and distributor of industrial wood and
other specialty building products principally to customers in the
marine and transportation industries. 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.
Contact: Don Boone, President
& CEO, (503) 647-0110
JEWETT-CAMERON TRADING COMPANY LTD. AND
SUBSIDIARIES
|
CONSOLIDATED BALANCE SHEETS
|
(Expressed
in U.S. Dollars)
|
AS OF
AUGUST 31
|
|
|
2012
|
|
2011
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
7,309,388
|
|
$
6,774,127
|
Accounts receivable, net of allowance
of $6,509 (August 31, 2011 -
$0)
|
3,092,842
|
|
3,897,086
|
Inventory, net of allowance
of $139,869 (August
31, 2011 - $204,860) (note 3)
|
7,085,389
|
|
5,815,593
|
Note receivable
|
20,000
|
|
41,500
|
Prepaid expenses
|
388,957
|
|
848,341
|
Prepaid income taxes
|
-
|
|
682,527
|
|
|
|
|
Total current assets
|
17,896,576
|
|
18,059,174
|
|
|
|
|
Property, plant and equipment, net (note
4)
|
1,997,109
|
|
1,850,037
|
Intangible assets, net (note 5)
|
444,203
|
|
510,771
|
|
|
|
|
Deferred income taxes (note 6)
|
101,573
|
|
157,862
|
|
|
|
|
Total
assets
|
$
20,439,461
|
|
$
20,577,844
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
$
1,577,182
|
|
$
519,265
|
Litigation reserve (Note 13(a))
|
170,819
|
|
1,627,915
|
Accrued liabilities
|
1,181,067
|
|
941,846
|
Accrued income taxes
|
37,203
|
|
-
|
|
|
|
|
Total current liabilities
|
2,966,271
|
|
3,089,026
|
|
|
|
|
|
|
|
|
Contingent liabilities and commitments (note
13)
|
|
|
|
|
|
|
|
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
|
15,392,665
|
|
15,086,971
|
|
|
|
|
Total stockholders' equity
|
17,473,190
|
|
17,488,818
|
|
|
|
|
Total liabilities and stockholders' equity
|
$
20,439,461
|
|
$
20,577,844
|
|
|
|
|
JEWETT-CAMERON TRADING COMPANY LTD. AND
SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Expressed
in U.S. Dollars)
|
YEAR ENDED
AUGUST 31
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
SALES
|
$
45,945,530
|
|
$
42,056,470
|
|
|
|
|
COST OF SALES
|
37,306,129
|
|
33,930,109
|
|
|
|
|
GROSS
PROFIT
|
8,639,401
|
|
8,126,361
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
Selling, general and administrative
|
1,463,550
|
|
1,680,428
|
Depreciation and amortization
|
244,216
|
|
261,542
|
Wages and employee benefits
|
3,368,495
|
|
3,348,143
|
|
5,076,261
|
|
5,290,113
|
|
|
|
|
|
|
|
|
Income
from operations
|
3,563,140
|
|
2,836,248
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
Loss on sale of property, plant and
equipment
|
-
|
|
(2,652)
|
Interest and other income (loss)
|
13,968
|
|
(30)
|
Interest expense
|
(743)
|
|
(440,726)
|
Litigation income (loss) (note 13(a))
|
1,443,629
|
|
(962,137)
|
|
1,456,854
|
|
(1,405,545)
|
|
|
|
|
Income
before income taxes
|
5,019,994
|
|
1,430,703
|
|
|
|
|
Income
taxes (note 6)
|
|
|
|
Current
|
1,903,774
|
|
487,589
|
Deferred
|
56,289
|
|
40,720
|
|
|
|
|
Net
income for the year
|
$
3,059,931
|
|
$
902,394
|
|
|
|
|
Basic
earnings per common share
|
$
1.78
|
|
$
0.44
|
|
|
|
|
Diluted
earnings per common share
|
$
1.78
|
|
$
0.44
|
|
|
|
|
Weighted average number of common shares
outstanding:
|
|
|
|
Basic
|
1,722,106
|
|
2,060,587
|
Diluted
|
1,722,106
|
|
2,060,587
|
JEWETT-CAMERON TRADING COMPANY LTD. AND
SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Expressed
in U.S. Dollars)
|
YEAR ENDED
AUGUST 31
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
|
|
|
Net income for the year
|
$
3,059,931
|
|
$
902,394
|
Items not affecting cash:
|
|
|
|
Depreciation and amortization
|
244,216
|
|
261,542
|
Loss on sale of property, plant and
equipment
|
-
|
|
2,652
|
Deferred income taxes
|
56,289
|
|
40,720
|
Litigation (income) loss
|
(1,443,629)
|
|
962,137
|
Interest (income) expense on litigation
|
(13,467)
|
|
440,726
|
|
|
|
|
Changes in non-cash working capital items:
|
|
|
|
Decrease (increase) in accounts receivable
|
804,244
|
|
(22,972)
|
Decrease in note receivable
|
21,500
|
|
-
|
(Increase) decrease in inventory
|
(1,269,796)
|
|
450,189
|
Decrease (increase) decrease in prepaid
expenses
|
459,384
|
|
(791,645)
|
Decrease (increase) in prepaid income
taxes
|
682,527
|
|
(682,527)
|
Increase (decrease) in accounts payable and accrued
liabilities
|
1,297,138
|
|
82,132
|
Increase (decrease) in accrued income
taxes
|
37,203
|
|
(8,133)
|
|
|
|
|
Net cash provided by operating activities
|
3,935,540
|
|
1,637,215
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES
|
|
|
|
Proceeds on sale of property, plant and
equipment
|
-
|
|
5,450
|
Purchase of property, plant and equipment
|
(311,670)
|
|
(118,707)
|
Purchase of intangible assets and other
|
(13,050)
|
|
-
|
|
|
|
|
Net cash used in investing activities
|
(324,720)
|
|
(113,257)
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES
|
|
|
|
Redemption of common stock
|
(3,075,559)
|
|
(3,460,145)
|
|
|
|
|
Net cash used in financing activities
|
(3,075,559)
|
|
(3,460,145)
|
|
|
|
|
Net
increase (decrease) in cash
|
535,261
|
|
(1,936,187)
|
|
|
|
|
Cash,
beginning of year
|
6,774,127
|
|
8,710,314
|
|
|
|
|
Cash,
end of year
|
$
7,309,388
|
|
$
6,774,127
|
SOURCE Jewett-Cameron Trading Company Ltd.