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Company: Jewett-Cameron Trading Company Ltd.
Ticker: NASDAQ: JCTCF
Sector: Industrials
Investor Contact: Robert Blum

Jewett-Cameron Announces Fiscal 2018 Financial Results

NORTH PLAINS, Ore., Nov. 15, 2018 — Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2018.

For the fiscal year ended August 31, 2018, Jewett-Cameron reported sales of $53.9 million and net income of $2,920,639, or $0.66 per share, compared to sales of $47.7 million and net income of $2,726,657, or $0.60 per share, for fiscal 2017.

Sales for the fourth quarter of fiscal 2018 totaled $11.2 million compared to sales of $11.1 in the prior year’s fourth quarter. Net income was $700,699, or $0.16 per share, compared to net income of $725,589, or $0.16 per share, in the fourth quarter of fiscal 2017.

“While we are pleased with our increased revenue, our margins were curtailed due to market competitive pressures and higher cost of materials. The recall we initiated in November hurt our bottom line in the first and second quarters,” said CEO Charlie Hopewell. “Uncertainty over the announcement of new tariffs to be imposed on certain imports into the US started to impact our business during the fourth quarter. The initial implementation of the higher tariffs on certain of our products in late September has reduced our margins and current demand for those products as we enter fiscal 2019. We are currently working with both our suppliers and customers to mitigate these additional costs as best we can while continuing to deliver high quality products on time to our customers.”

As of August 31, 2018, the Company’s cash position was $6.1 million, and currently there is no borrowing against its $3.0 million line of credit. During fiscal 2018, the Company repurchased for cancelation a total of 154,329 common shares at a cost of $1,271,599, which represents an average price of $8.24 per share. Subsequent to the fiscal year-end, the Company repurchased an additional 95,671 common shares at a cost of $893,376, which is an average share price of $9.34 per share. The current share repurchase plan was completed on October 24, 2018. 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 patented and patent pending specialty metal products, wholesale distribution of wood products, seed processing and sales, and sales of industrial tools and clamps. 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 INFINITY Euro fence 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. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

AS OF AUGUST 31

2018

2017

ASSETS

Current assets

Cash and cash equivalents

$

6,097,463

$

5,912,250

Accounts receivable, net of allowance of $Nil (August 31, 2017 – $1,725)

4,152,492

3,565,055

Inventory, net of allowance of $75,336 (August 31, 2017 – $156,713)

9,803,197

8,807,545

Note receivable

4,000

Prepaid expenses

347,251

595,776

Prepaid income taxes

114,310

Total current assets

20,518,713

18,880,626

Property, plant and equipment, net

3,105,260

3,222,572

Intangible assets, net

3,590

77,837

Total assets

$

23,627,563

$

22,181,035

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$

377,092

$

638,128

Accrued liabilities

1,795,207

1,807,192

Total current liabilities

2,172,299

2,445,320

Deferred tax liability

81,853

11,344

Total liabilities

2,254,152

2,456,664

Stockholders’ equity

Capital stock

Authorized

21,567,564 common shares, without par value

10,000,000 preferred shares, without par value

Issued

4,314,659 common shares (August 31, 2017 – 4,468,988)

1,017,908

1,054,316

Additional paid-in capital

600,804

600,804

Retained earnings

19,754,699

18,069,251

Total stockholders’ equity

21,373,411

19,724,371

Total liabilities and stockholders’ equity

$

23,627,563

$

22,181,035

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31

2018

2017

SALES

$

53,923,152

$

47,701,056

COST OF SALES

42,325,338

36,621,773

GROSS PROFIT

11,597,814

11,079,283

OPERATING EXPENSES

Selling, general and administrative

2,103,899

2,016,776

Depreciation and amortization

274,065

275,214

Wages and employee benefits

4,943,431

4,349,542

7,321,395

6,641,532

Income from operations

4,276,419

4,437,751

OTHER ITEMS

(Loss) on sale of property, plant and equipment

(27,022)

(394)

Interest and other income

30,026

27,894

3,004

27,500

Income before income taxes

4,279,423

4,465,251

Income taxes

Current

1,288,275

1,758,603

Deferred (recovery)

70,509

(20,009)

Net income for the year

$

2,920,639

$

2,726,657

Basic earnings per common share

$

0.66

$

0.60

Diluted earnings per common share

$

0.66

$

0.60

Weighted average number of common shares outstanding:

Basic

4,430,940

4,545,044

Diluted

4,430,940

4,545,044

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31

2018

2017

CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the year

$

2,920,639

$

2,726,657

Items not affecting cash:

Depreciation and amortization

274,065

275,214

Loss on sale of property, plant and equipment

27,022

394

Deferred income taxes

70,509

(20,009)

Changes in non-cash working capital items:

(Increase) in accounts receivable

(587,437)

(222,851)

(Increase) in note receivable

(4,000)

(Increase) in inventory

(995,652)

(738,528)

Decrease in prepaid expenses

248,525

237,119

(Increase) decrease in prepaid income taxes

(114,310)

596

(Decrease) increase in accounts payable and accrued liabilities

(273,021)

131,556

Net cash provided by operating activities

1,566,340

2,390,148

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds on sale of property, plant and equipment

1,000

3,480

Purchase of property, plant and equipment

(110,528)

(474,359)

Net cash used in investing activities

(109,528)

(470,879)

CASH FLOWS FROM FINANCING ACTIVITIES

Redemption of common stock

(1,271,599)

(526,941)

Net cash used in financing activities

(1,271,599)

(526,941)

Net increase in cash

185,213

1,392,328

Cash, beginning of year

5,912,250

4,519,922

Cash, end of year

$

6,097,463

$

5,912,250

Contact: Charlie Hopewell, President & CEO, (503) 647-0110

Cision View original content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-fiscal-2018-financial-results-300751678.html

SOURCE Jewett-Cameron Trading Company Ltd.

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