NORTH PLAINS, Ore.,
Jan. 14, 2020 /PRNewswire/ --
Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported
financial results for the first quarter of fiscal 2020 ended
November 30, 2019.
Sales for the first quarter of fiscal 2020 totaled $7.1 million compared to sales of $9.1 million for the first quarter of fiscal
2019. Net loss for the current quarter was ($6,621), or ($0.00) per share, compared to net income of
$349,694, or $0.08 per share, in the year-ago quarter.
"Several of our major accounts postponed their expected
purchases during the quarter," said CEO Charlie Hopewell. "The delay may be related to
the timing of reduced tariffs on some of our products, as we
received notice during the quarter that a number of our metal
products imported from China have
been reclassified and are no longer subject to the 25% tariff.
During the quarter, we also continued to invest in our
infrastructure while rationalizing our product offerings by
deciding to discontinue our involvement in Industrial Tools through
the closure of our MSI-Pro Division. Although all these changes
come with initial costs, we believe they will help to better
position the Company for the future."
As of November 30, 2019, the
Company's cash position was approximately $8.97 million, and there was no borrowing against
its $3.0 million line of credit. The
Company has also continued to use its excess cash to repurchase and
cancel common shares. Subsequent to the end of the fiscal period,
the Company privately repurchased for cancelation a total of
490,120 common shares from two large shareholders. The shares were
repurchased by the Company at a price of $7.89 per share, calculated as the Volume
Weighted Average Price (VWAP) of all the shares traded on NASDAQ
during the first quarter of fiscal 2020. The total cost of the
share repurchases was $3,867,047. 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, and seed
processing and sales. 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 LIFETIME POST™ 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, 2019
|
|
August
31, 2019
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
8,969,249
|
|
$
|
9,652,310
|
Accounts
receivable, net of allowance of $Nil (August 31, 2019 - $Nil)
|
|
2,164,026
|
|
|
2,835,952
|
Inventory, net
of allowance of $165,000 (August
31, 2019 - $119,357)
|
|
7,280,126
|
|
|
6,377,805
|
Note
receivable
|
|
997
|
|
|
1,197
|
Prepaid
expenses
|
|
568,815
|
|
|
393,539
|
Prepaid income
taxes
|
|
201,956
|
|
|
223,420
|
|
|
|
|
|
|
Total current
assets
|
|
19,185,169
|
|
|
19,484,223
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
2,708,144
|
|
|
2,727,406
|
|
|
|
|
|
|
Intangible assets,
net
|
|
2,912
|
|
|
3,048
|
|
|
|
|
|
|
Total
assets
|
$
|
21,896,225
|
|
$
|
22,214,677
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
238,133
|
|
$
|
410,027
|
Accrued
liabilities
|
|
1,186,744
|
|
|
1,312,580
|
|
|
|
|
|
|
Total current
liabilities
|
|
1,424,877
|
|
|
1,722,607
|
|
|
|
|
|
|
Deferred tax
liability
|
|
47,103
|
|
|
61,204
|
|
|
|
|
|
|
Total
liabilities
|
|
1,471,980
|
|
|
1,783,811
|
|
|
|
|
|
|
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, 2019 – 3,971,282)
|
|
936,903
|
|
|
936,903
|
Additional
paid-in capital
|
|
618,707
|
|
|
618,707
|
Retained
earnings
|
|
18,868,635
|
|
|
18,875,256
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
20,424,245
|
|
|
20,430,866
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
21,896,225
|
|
$
|
22,214,677
|
JEWETT-CAMERON
TRADING COMPANY LTD.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Expressed in U.S.
Dollars)
|
(Prepared by
Management)
|
(Unaudited)
|
|
|
Three
Months
Ended
November
30,
2019
|
|
Three Months
Ended
November
30,
2018
|
|
|
|
|
|
|
SALES
|
$
|
7,055,178
|
|
$
|
9,066,100
|
|
|
|
|
|
|
COST OF
SALES
|
|
5,006,835
|
|
|
6,757,014
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
2,048,343
|
|
|
2,309,086
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
Selling, general
and administrative expenses
|
|
649,010
|
|
|
556,148
|
Depreciation and
amortization
|
|
48,148
|
|
|
50,870
|
Wages and
employee benefits
|
|
1,362,059
|
|
|
1,223,059
|
|
|
|
|
|
|
|
|
2,059,217
|
|
|
1,830,077
|
|
|
|
|
|
|
Income from continuing
operations
|
|
(10,874)
|
|
|
479,009
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
Interest and
other income
|
|
11,615
|
|
|
17,151
|
|
|
|
|
|
|
Income before income
taxes
|
|
741
|
|
|
496,160
|
|
|
|
|
|
|
Income tax
expense
|
|
(7,362)
|
|
|
(146,466)
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(6,621)
|
|
$
|
349,694
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
(0.00)
|
|
$
|
0.08
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
(0.00)
|
|
$
|
0.08
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
Basic
|
|
3,971,282
|
|
|
4,256,361
|
Diluted
|
|
3,971,282
|
|
|
4,256,361
|
JEWETT-CAMERON
TRADING COMPANY LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Expressed in U.S.
Dollars)
|
(Prepared by
Management)
|
(Unaudited)
|
|
|
Three
Months Ended November 30,
|
|
Three Months
Ended November
30,
|
|
2019
|
|
2018
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
|
|
|
|
|
Net (loss)
income
|
$
|
(6,621)
|
|
$
|
349,694
|
Items not involving an
outlay of cash:
|
|
|
|
|
|
Depreciation and amortization
|
|
48,148
|
|
|
50,870
|
Deferred income taxes
|
|
(14,101)
|
|
|
4,826
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
Decrease (increase) in accounts receivable
|
|
671,926
|
|
|
417,942
|
(Increase) in inventory
|
|
(902,321)
|
|
|
(1,121,813)
|
Decrease in note receivable
|
|
200
|
|
|
1,903
|
(Increase) in prepaid expenses
|
|
(175,276)
|
|
|
(157,361)
|
Increase (decrease) in accounts payable and accrued
liabilities
|
|
(297,730)
|
|
|
536,032
|
Decrease in prepaid income taxes
|
|
21,464
|
|
|
114,310
|
Increase in income taxes payable
|
|
-
|
|
|
27,330
|
|
|
|
|
|
|
Net cash provided by
(used by) operating activities
|
|
(654,311)
|
|
|
223,733
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
(28,750)
|
|
|
-
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(28,750)
|
|
|
-
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Redemption of common stock
|
|
-
|
|
|
(893,376)
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
-
|
|
|
(893,376)
|
|
|
|
|
|
|
Net decrease in
cash
|
|
(683,061)
|
|
|
(669,643)
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
9,652,310
|
|
|
6,097,463
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
8,969,249
|
|
$
|
5,427,820
|
Contact: Charlie Hopewell,
President & CEO, (503) 647-0110
View original
content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-1st-quarter-financial-results-300986969.html
SOURCE Jewett-Cameron Trading Company Ltd.