NORTH PLAINS, Ore., Nov. 12 /CNW/ -- Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF; TSX: JCT) today reported financial results for the fourth quarter and 12 months ended August 31, 2008.
Sales for the fourth quarter of 2008 totaled $17.3 million compared to sales of $17.2 million for the fourth quarter of 2007. The company reported net income of $763 thousand or $.32 per diluted share compared to net income of $929 thousand or $.39 per diluted share in the same period a year ago.
For the 12 months and fiscal year ended August 31, 2008 Jewett-Cameron reported sales of $64.3 million compared to $69.0 million for the same period a year ago. Net income for the 12 months of fiscal 2008 was $2,610 thousand or $1.09 per diluted share compared to net income of $2,295 thousand or $.96 per diluted share in the prior fiscal year.
Also notable is Jewett-Cameron's very strong financial condition. At August 31, 2008 the company had cash of $5.8 million and total debt of only $2.3 million. The company had no borrowing against its $5.0 million line of credit.
In the current troubled economic environment Jewett-Cameron has been able to generate good financial results based on increasing market acceptance and growing sales for the company's specialty metal products.
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's business consists of warehouse distribution and direct sales of wood products and specialty metal products 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. The area of most significant growth within Jewett-Cameron is the manufacture and distribution of specialty metal products like dog kennels, gate support systems, and perimeter fencing.
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS
Three Month Periods Ended Twelve Month Periods Ended
August 31, August 31,
2008 2007 2008 2007
SALES $17,310,279 $17,160,648 $64,321,034 $69,038,464
COST OF SALES 14,302,861 13,835,638 52,932,232 57,920,241
GROSS PROFIT 3,007,418 3,325,010 11,388,802 11,118,223
OPERATING EXPENSES
Selling, general
and administrative
expenses 562,281 463,097 2,166,535 2,231,155
Depreciation and
amortization 78,578 81,334 313,561 315,302
Wages and employee
benefits 1,121,535 1,201,071 4,535,823 4,546,743
1,762,394 1,745,502 7,015,919 7,093,200
Income from operations 1,245,024 1,579,508 4,372,883 4,025,023
OTHER ITEMS
Gain on sale of
property, plant
and equipment - - 16,115 6,787
Interest and
other income 6,918 - 7,571 -
Interest expense (38,739) (43,860) (189,627) (234,589)
(31,821) (43,860) (165,941) (227,802)
Income before income taxes 1,213,203 1,535,648 4,206,942 3,797,221
Income taxes 450,558 606,921 1,596,808 1,502,366
Net income $762,645 $928,727 $2,610,134 $2,294,855
Basic earnings per common share $.32 $.39 $1.09 $.96
Diluted earnings per common share $.32 $.39 $1.09 $.96
Weighted average number of common shares outstanding: Basic 2,390,977 2,381,613 2,390,284 2,378,381 Diluted 2,390,977 2,384,964 2,391,004 2,379,085
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED BALANCE SHEETS
August 31, August 31,
2008 2007
ASSETS
Current assets Cash and cash equivalents $5,758,479 $257,131 Accounts receivable, net of allowance of $10,474 (August 31, 2007 - $15,396) 5,405,861 6,445,284 Inventory, net of allowance of $100,000 ( August 31, 2007 - $0) 8,068,284 10,878,543 Prepaid expenses 138,957 202,155 Prepaid income taxes 13,753 -
Total current assets 19,385,334 17,783,113
Property, plant and equipment, net 1,861,652 2,033,671
Intangible assets, net 740,382 815,132
Deferred income taxes 192,870 119,700
Total assets $22,180,238 $20,751,616
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities Bank indebtedness $- $1,059 Account payable 1,585,844 2,106,051 Accrued liabilities 1,245,154 1,424,610 Accrued income taxes - 173,757 Current portion of long term liabilities 367,807 363,896
Total current liabilities 3,198,805 4,069,373
Long term liabilities Promissory note 1,951,004 2,018,046 Note payable - 300,000
Total long term liabilities
1,951,004 2,318,046
Total liabilities 5,149,809 6,387,419
Contingent liabilities and commitments
Stockholders' equity
Capital stock
Authorized
20,000,000 common shares, without
par value
10,000,000 preferred shares, without
par value
Issued
2,390,977 common shares
(August 31, 2007 - 2,384,792) 2,256,112 2,200,014
Additional paid-in capital 600,804 600,804
Retained earnings 14,173,513 11,563,379
Total stockholders' equity 17,030,429 14,364,197
Total liabilities and stockholders' equity $22,180,238 $20,751,616
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS
2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $2,610,134 $2,294,855
Items not affecting cash:
Depreciation and amortization 313,561 315,302
Gain on sale of property, plant and equipment (16,115) (6,787)
Deferred income taxes (73,170) 23,200
Loss on write-off of note receivable - 4,000
Stock-based compensation expense - 26,389
Changes in non-cash working capital items:
(Increase) decrease in accounts receivable 1,039,423 376,913
(Increase) decrease in inventory 2,810,259 (2,127,682)
(Increase) decrease in prepaid expenses 63,198 (62,219)
Increase (decrease) in accounts payable and
accrued liabilities (699,663) (521,429)
Increase (decrease) in accrued income taxes (187,510) 132,886
Net cash provided by operating activities 5,860,117 455,428
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds on sale of property, plant and equipment 16,500 6,787 Purchase of property, plant and equipment (63,582) (73,550) Purchase of intangible assets and other (3,595) (872,700)
Net cash provided by (used in) investing activities (50,677) (939,463)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds (repayment) of bank indebtedness (1,059) 1,059 Issuance of capital stock for cash 56,098 52,750 Share subscriptions received in advance - - Proceeds (repayment) of notes payable (300,000) 600,000 Promissory note (63,131) (59,453)
Net cash provided by (used in) financing activities (308,092) 594,356
Net increase (decrease) in cash and cash equivalents 5,501,348 110,321
Cash and cash equivalents, beginning of year 257,131 146,810
Cash and cash equivalents, end of year $5,758,479 $257,131
JEWETT-CAMERON TRADING COMPANY LTD. SEGMENT INFORMATION
Following is a summary of segment information for the twelve months ended August 31:
2008 2007
Sales to unaffiliated customers:
Industrial wood products $27,988,051 $40,718,282
Lawn, garden, pet and other 27,840,099 20,271,872
Seed processing and sales 7,357,195 6,984,412
Industrial tools 1,135,689 1,063,898
$64,321,034 $69,038,464
Income (loss) from operations:
Industrial wood products $1,017,534 $1,136,948
Lawn, garden, pet and other 3,081,984 2,741,985
Seed processing and sales 265,670 183,991
Industrial tools 113,346 78,896
Unallocated overhead (105,651) (116,797)
$4,372,883 $4,025,023
Certain reclassifications have been made to the prior years' financial statements to conform to the classifications used in the current year.
Contact: Don Boone, President & CEO, (503) 647-0110
