NORTH PLAINS, Ore.,
April 15, 2019 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today
reported financial results for the second quarter and six month
periods of fiscal 2019 ended February 28,
2019.
Sales for the second quarter of fiscal 2018 totaled $7.86 million compared to sales of $13.3 million for the second quarter of fiscal
2018. Income from operations was $57,625 compared to income of $720,244 for the quarter ended February 28, 2018. Net income was $119,629, or $0.03
per share, compared to net income of $508,298, or $0.11
per share, in the year-ago quarter.
For the six months ended February 28,
2019, sales totaled $16.9
million compared to sales of $22.8
million for the six months ended February 28, 2018, and income from operations was
$536,634 compared to $1,290,546. Net income was $469,323, or $0.11
per share, compared to net income of $830,731, or $0.19
per share, in the first six months of fiscal 2018.
"The results from the second quarter were disappointing, but
were primarily from external factors," said CEO Charlie Hopewell. "The extended cold and wet
weather across much of the United
States caused retailers to delay purchases of Spring and
Summer merchandise, and the tariffs on Chinese goods has resulted
in continued uncertainty in the marketplace. So far in our fiscal
third quarter however, we are seeing improvement in some important
areas."
As of February 28, 2019, the
Company's cash position was approximately $3.7 million, and there was no borrowing against
its $3.0 million line of credit. The
Company has historically utilized its cash position by implementing
share repurchase programs as an effective method of enhancing
shareholder value. Since the start of a new repurchase plan on
February 18, 2019, the Company has
repurchased a total of 189,400 common shares at a cost of
$1,651,706, or $8.72 per share.
Jewett-Cameron Trading Company is a holding company that,
through its subsidiaries (Jewett-Cameron Companies), operate out of
facilities located in North Plains,
Oregon. Those businesses consist 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.
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(Expressed in U.S.
Dollars)
|
|
(Prepared by
Management)
|
|
(Unaudited)
|
|
|
February
28,
2019
|
|
August
31,
2018
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,706,604
|
|
$
|
6,097,463
|
|
Accounts
receivable, net of allowance of
$Nil (August 31, 2018 - $Nil)
|
|
3,197,120
|
|
|
4,152,492
|
|
Inventory, net
of allowance of $89,424 (August
31, 2018 - $75,336)
|
|
11,705,607
|
|
|
9,803,197
|
|
Note
receivable
|
|
1,797
|
|
|
4,000
|
|
Prepaid
expenses
|
|
565,516
|
|
|
347,251
|
|
Prepaid income
taxes
|
|
308,832
|
|
|
114,310
|
|
|
|
|
|
|
|
Total current
assets
|
|
19,485,476
|
|
|
20,518,713
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
2,789,951
|
|
|
3,105,260
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
3,319
|
|
|
3,590
|
|
|
|
|
|
|
|
Total
assets
|
$
|
22,278,746
|
|
$
|
23,627,563
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
368,673
|
|
$
|
377,092
|
|
Accrued
liabilities
|
|
944,758
|
|
|
1,795,207
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
1,313,431
|
|
|
2,172,299
|
|
|
|
|
|
|
|
Deferred tax
liability
|
|
79,886
|
|
|
81,853
|
|
|
|
|
|
|
|
Total
liabilities
|
|
1,393,317
|
|
|
2,254,152
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Capital
stock
|
|
|
|
|
|
|
Authorized
|
|
|
|
|
|
|
21,567,564 common
shares, without par value
|
|
|
|
|
|
|
10,000,000 preferred
shares, without par value
|
|
|
|
|
|
|
Issued
|
|
|
|
|
|
|
4,210,538 common
shares (August 31, 2018 – 4,314,659)
|
|
993,344
|
|
|
1,017,908
|
|
Additional
paid-in capital
|
|
600,804
|
|
|
600,804
|
|
Retained
earnings
|
|
19,291,281
|
|
|
19,754,699
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
20,885,429
|
|
|
21,373,411
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
22,278,746
|
|
$
|
23,627,563
|
|
JEWETT-CAMERON
TRADING COMPANY LTD.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Expressed in U.S.
Dollars)
|
|
(Prepared by
Management)
|
|
(Unaudited)
|
|
|
Three
Month
Periods
ended
February
28,
|
|
Six
Month
Periods
ended
February
28,
|
|
2019
|
2018
|
|
2019
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
$
|
7,857,175
|
$
|
13,341,338
|
|
$
|
16,923,275
|
$
|
22,755,308
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
6,095,887
|
|
10,705,532
|
|
|
12,852,901
|
|
17,932,754
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,761,288
|
|
2,635,806
|
|
|
4,070,374
|
|
4,822,554
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
405,888
|
|
616,074
|
|
|
962,036
|
|
1,061,951
|
|
Depreciation
and amortization
|
|
45,401
|
|
122,745
|
|
|
96,271
|
|
195,410
|
|
Wages and
employee benefits
|
|
1,252,374
|
|
1,176,743
|
|
|
2,475,433
|
|
2,274,647
|
|
|
1,703,663
|
|
1,915,562
|
|
|
3,533,740
|
|
3,532,008
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
57,625
|
|
720,244
|
|
|
536,634
|
|
1,290,546
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
|
|
|
(Loss)
gain on sale of property, plant and equipment
|
|
105,365
|
|
530
|
|
|
105,365
|
|
(27,022)
|
|
Interest
and other income
|
|
9,184
|
|
5,793
|
|
|
26,335
|
|
8,483
|
|
|
114,549
|
|
6,323
|
|
|
131,700
|
|
(18,539)
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
172,174
|
|
726,567
|
|
|
668,334
|
|
1,272,007
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(52,545)
|
|
(218,269)
|
|
|
(199,011)
|
|
(441,276)
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
119,629
|
$
|
508,298
|
|
$
|
469,323
|
$
|
830,731
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.03
|
$
|
0.11
|
|
$
|
0.11
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share
|
$
|
0.03
|
$
|
0.11
|
|
$
|
0.11
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
4,218,348
|
|
4,468,988
|
|
|
4,218,672
|
|
4,468,988
|
|
Diluted
|
|
4,218,348
|
|
4,468,988
|
|
|
4,218,672
|
|
4,468,988
|
|
JEWETT-CAMERON
TRADING COMPANY LTD.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Expressed in U.S.
Dollars)
|
|
(Prepared by
Management)
|
|
(Unaudited)
|
|
|
Six Month
Period
ended February
28,
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
|
$
|
469,323
|
|
$
|
830,731
|
|
Items not involving
an outlay of cash:
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
96,271
|
|
|
195,410
|
|
(Gain) loss on
sale of property, plant and equipment
|
|
(105,365)
|
|
|
27,022
|
|
Deferred
income taxes
|
|
(1,967)
|
|
|
25,691
|
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
|
Decrease
(increase) in accounts receivable
|
|
955,372
|
|
|
(2,499,848)
|
|
(Increase) in
inventory
|
|
(1,902,410)
|
|
|
(481,648)
|
|
Decrease in
note receivable
|
|
2,203
|
|
|
-
|
|
(Increase) in
prepaid expenses
|
|
(218,265)
|
|
|
(287,428)
|
|
(Increase) in
prepaid income taxes
|
|
(194,522)
|
|
|
(469,577)
|
|
(Decrease) in
accounts payable and accrued
liabilities
|
|
(858,868)
|
|
|
(396,839)
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(1,758,228)
|
|
|
(3,056,486)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Purchase of
property, plant and equipment
|
|
-
|
|
|
(66,041)
|
|
Proceeds from
sale of property, plant and equipment
|
|
324,674
|
|
|
1,000
|
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
324,674
|
|
|
(65,041)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Redemption of
common stock
|
|
(957,305)
|
|
|
-
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(957,305)
|
|
|
-
|
|
|
|
|
|
|
|
Net decrease in
cash
|
|
(2,390,859)
|
|
|
(3,121,527)
|
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
6,097,463
|
|
|
5,912,250
|
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
3,706,604
|
|
$
|
2,790,723
|
Contact: Charlie Hopewell,
President & CEO, (503) 647-0110
View original
content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-2nd-quarter-financial-results-300832336.html
SOURCE Jewett-Cameron Trading Company Ltd.