NORTH PLAINS, Ore., Nov. 2, 2016 — Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2016.
For the fiscal year ended August 31, 2016 Jewett-Cameron reported net income of $2,125,099, or $0.87 per share, on sales of $48.11 million compared to net income of $1,773,971, or $0.69 per share, on sales of $42.24 million reported for fiscal 2015.
Sales for the fourth quarter of fiscal 2016 totaled $10.5 million compared to sales of $11.5 million for the fourth quarter of fiscal 2015. Net income was $552,164, or $0.23 per diluted share, compared to net income of $701,524, or $0.27 per diluted share, in the fourth quarter of fiscal 2015.
“The continued acceptance of several new products we introduced beginning in fiscal 2015 has had a positive effect on our sales and financial results” said CEO Don Boone. “We are also continuing construction of a warehouse expansion at our North Plains headquarters which will support the distribution of additional new products in the future”.
During fiscal 2016, the Company settled all of the litigation with Greenwood Forest Products, Inc. The Company made a cash payment of $200,000 to Greenwood Forest Products, Inc., as full settlement and termination of the litigation.
As of August 31, 2016, the Company’s cash position was $4.5 million, and currently there is no borrowing against its $3.0 million line of credit. During fiscal 2016, the Company repurchased and cancelled a total of 175,538 common shares at a cost of $2,124,579, which represents an average price of $12.10. Donald M. Boone, CEO, President and Director, also voluntarily returned 15,000 common shares to the Company’s treasury for cancellation in June 2016, which was in addition to the 15,000 common shares he returned for cancellation in August 2015. The Company paid Mr. Boone no consideration for the 30,000 shares. The Company’s most recent share repurchase plan terminated on August 25, 2016. The Board of Directors will consider implementing new share repurchase plans in the future as an effective use of the Company’s cash position.
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 Company’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. JC USA provides professional and administrative services, including accounting and credit services, to its subsidiary companies.
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.
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JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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(Expressed in U.S. Dollars) |
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AS OF AUGUST 31 |
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2016 |
2015 |
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ASSETS |
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Current assets |
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Cash |
$ 4,519,922 |
$ 4,416,297 |
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Accounts receivable, net of allowance of $Nil (August 31, 2015 – $Nil) |
3,342,204 |
3,688,247 |
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Inventory, net of allowance of $176,717 (August 31, 2015 – $120,824) |
8,069,017 |
8,351,575 |
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Note receivable |
– |
1,310 |
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Prepaid expenses |
832,895 |
719,459 |
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Prepaid income taxes |
596 |
26,570 |
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Total current assets |
16,764,634 |
17,203,458 |
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Property, plant and equipment, net |
2,954,595 |
2,231,711 |
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Intangible assets, net |
150,543 |
223,250 |
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Total assets |
$ 19,869,772 |
$ 19,658,419 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities |
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Accounts payable |
$ 839,972 |
$ 984,955 |
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Litigation reserve |
– |
90,671 |
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Accrued liabilities |
1,473,792 |
1,024,358 |
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Total current liabilities |
2,313,764 |
2,099,984 |
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Deferred tax liability |
31,353 |
34,300 |
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Total liabilities |
2,345,117 |
2,134,284 |
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Contingent liabilities and commitments |
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Stockholders’ equity |
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Capital stock |
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Authorized |
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21,567,564 common shares, without par value |
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10,000,000 preferred shares, without par value |
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Issued |
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2,286,294 common shares (August 31, 2015 – 2,476,832) |
1,078,759 |
1,168,712 |
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Additional paid-in capital |
600,804 |
600,804 |
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Retained earnings |
15,845,092 |
15,754,619 |
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Total stockholders’ equity |
17,524,655 |
17,524,135 |
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Total liabilities and stockholders’ equity |
$ 19,869,772 |
$ 19,658,419 |
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JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Expressed in U.S. Dollars) |
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YEARS ENDED AUGUST 31 |
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2016 |
2015 |
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SALES |
$ 48,110,998 |
$ 42,238,151 |
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COST OF SALES |
38,374,405 |
33,821,114 |
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GROSS PROFIT |
9,736,593 |
8,417,037 |
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OPERATING EXPENSES |
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Selling, general and administrative |
1,789,230 |
1,814,899 |
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Depreciation and amortization |
276,268 |
281,762 |
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Wages and employee benefits |
4,055,948 |
3,396,793 |
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6,121,446 |
5,493,454 |
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Income from operations |
3,615,146 |
2,923,583 |
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OTHER ITEMS |
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Gain on sale of property, plant and equipment |
5,600 |
– |
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Interest and other income |
15,164 |
31,993 |
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Interest expense |
(27) |
– |
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Litigation expense |
(115,990) |
– |
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(95,253) |
31,993 |
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Income before income taxes |
3,519,893 |
2,955,576 |
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Income taxes |
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Current |
1,394,794 |
1,208,277 |
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Deferred |
(2,947) |
(26,672) |
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Net income for the year |
2,125,099 |
1,773,971 |
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Basic earnings per common share |
$ 0.87 |
$ 0.69 |
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Diluted earnings per common share |
$ 0.87 |
$ 0.69 |
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Weighted average number of common shares outstanding: |
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Basic |
2,435,650 |
2,581,850 |
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Diluted |
2,435,650 |
2,581,850 |
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JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(Expressed in U.S. Dollars) |
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YEARS ENDED AUGUST 31 |
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2016 |
2015 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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Net income for the year |
$ 2,125,099 |
$ 1,773,971 |
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Items not affecting cash: |
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Depreciation and amortization |
276,268 |
281,762 |
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Gain on sale of property, plant and equipment |
(5,600) |
– |
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Deferred income taxes |
(2,947) |
(26,672) |
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Interest income on litigation |
(6,661) |
(26,716) |
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Decrease in litigation reserve |
(84,010) |
– |
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Changes in non-cash working capital items: |
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Decrease (increase) in accounts receivable |
346,043 |
(1,245,319) |
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Decrease in note receivable |
1,310 |
13,690 |
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Decrease in inventory |
282,558 |
802,554 |
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(Increase) decrease in prepaid expenses |
(113,436) |
43,074 |
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Decrease in prepaid income taxes |
25,974 |
519,777 |
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Increase in accounts payable and accrued liabilities |
304,451 |
694,558 |
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Net cash provided by operating activities |
3,149,049 |
2,830,679 |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Proceeds on sale of property, plant and equipment |
5,600 |
– |
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Purchase of property, plant and equipment |
(926,445) |
(293,380) |
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Net cash used in investing activities |
(920,845) |
(293,380) |
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CASH FLOWS FROM FINANCING ACTIVITIES |
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Redemption of common stock |
(2,124,579) |
(2,448,542) |
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Net cash used in financing activities |
(2,124,579) |
(2,448,542) |
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Net increase in cash |
103,625 |
88,757 |
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Cash, beginning of year |
4,416,297 |
4,327,540 |
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Cash, end of year |
4,519,922 |
4,416,297 |
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Contact: Don Boone, President & CEO, (503) 647-0110
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/jewett-cameron-announces-fiscal-2016-financial-results-300356108.html
SOURCE Jewett-Cameron Trading Company Ltd.