NORTH PLAINS, OR, Jan. 13 /CNW/ - Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF; TSX: JCT) today reported financial results for the first quarter of fiscal 2009, which is the three months ended November 30, 2008.
Sales for the first quarter of 2009 totaled $10.8 million compared to sales of $14.0 million for the first quarter of 2008. Net income for the first quarter of 2009 was $293 thousand or $.12 per diluted share compared to net income of $374 thousand or $.16 per diluted share in the same period a year ago.
Jewett-Cameron's financial condition continues to be strong. At November 30, 2008 the company had cash of $7.3 million and total debt of only $2.3 million. The company had no borrowing against its $5.0 million line of credit.
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
(Unaudited)
Three Month Periods Ended
November 30,
2008 2007
SALES $10,782,063 $14,005,330
COST OF SALES 8,565,598 11,516,955
GROSS PROFIT 2,216,465 2,488,375
OPERATING EXPENSES
Selling, general and administrative
expenses 554,125 631,075
Depreciation and amortization 79,401 79,006
Wages and employee benefits 1,061,884 1,118,421
1,695,410 1,828,502
Income from operations 521,055 659,873
OTHER ITEMS
Interest and other income 11,344 -
Interest expense (36,924) (42,208)
(25,580) (42,208)
Income before income taxes 495,475 617,665
Income taxes 202,000 243,750
Net income $293,475 $373,915
Basic earnings per common share $.12 $.16
Diluted earnings per common share $.12 $.16
Weighted average number of common shares
outstanding:
Basic 2,390,977 2,388,258
Diluted 2,390,977 2,391,265
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
November 30, August 31,
2008 2008
(Unaudited) (Audited)
ASSETS
Current assets
Cash and cash equivalents $7,277,532 $5,758,479
Accounts receivable, net of allowance
of $43 (August 31, 2008 - $10,474) 3,293,534 5,405,861
Inventory, net of allowance of
$100,000 (August 31, 2008 - $100,000) 8,332,732 8,068,284
Prepaid expenses 91,986 138,957
Prepaid income taxes - 13,753
Total current assets 18,995,784 19,385,334
Property, plant and equipment, net 1,814,000 1,861,652
Intangible assets, net 720,676 740,382
Deferred income taxes 204,810 192,870
Total assets $21,735,270 $22,180,238
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $1,183,458 $1,585,844
Accrued liabilities 729,852 1,245,154
Accrued income taxes 195,875 -
Current portion of long term
liabilities 368,931 367,807
Total current liabilities 2,478,116 3,198,805
Long term liabilities
Promissory note 1,933,250 1,951,004
Note payable - -
Total long term liabilities 1,933,250 1,951,004
Total liabilities 4,411,366 5,149,809
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,
2008 - 2,390,977) 2,256,112 2,256,112
Additional paid-in capital 600,804 600,804
Retained earnings 14,466,988 14,173,513
Total stockholders' equity 17,323,904 17,030,429
Total liabilities and stockholders' equity $21,735,270 $22,180,238
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Month Periods Ended
2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $293,475 $373,915
Items not involving an outlay of cash:
Depreciation and amortization 79,401 79,006
Deferred income taxes (11,940) -
Changes in non-cash working capital items:
Decrease in accounts receivable 2,112,327 1,588,468
(Increase) decrease in inventory (264,448) 1,668,017
Decrease in prepaid expenses 46,970 48,816
Decrease in accounts payable and
accrued liabilities (917,688) (1,142,902)
Increase in accrued income taxes 209,629 243,750
Net cash provided by operating activities 1,547,726 2,859,070
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (12,043) (30,837)
Net cash used in investing activities (12,043) (30,837)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of bank indebtedness - (1,059)
Promissory note (16,630) (15,582)
Proceeds from issuance of stock - 56,097
Net cash provided by (used in)
financing activities (16,630) 39,456
Net increase in cash and cash
equivalents 1,519,053 2,867,689
Cash and cash equivalents, beginning
of period 5,758,479 257,131
Cash and cash equivalents, end
of period $7,277,532 $3,124,820
JEWETT-CAMERON TRADING COMPANY LTD.
SEGMENT INFORMATION
(Unaudited)
Following is a summary of segment information for the three months ended
November 30:
2008 2007
Sales to unaffiliated customers:
Industrial wood products $3,281,558 $8,118,301
Lawn, garden, pet and other 5,526,956 3,502,370
Seed processing and sales 1,710,648 2,117,708
Industrial tools 262,901 266,951
$10,782,063 $14,005,330
Income (loss) from operations:
Industrial wood products $(101,707) $420,076
Lawn, garden, pet and other 513,329 145,250
Seed processing and sales 119,732 103,068
Industrial tools 17,295 12,969
Unallocated overhead (27,594) (21,490)
$521,055 $659,873
Certain reclassifications have been made to the prior years' financial
statements to conform to the classifications used in the current year.
