Apr. 12, 2010 (PR Newswire) --
NORTH PLAINS, Ore., April 12 /PRNewswire-FirstCall/ -- Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF; TSX: JCT) today reported financial results for the second quarter and six months ended February 28, 2010.
Sales for the second quarter of fiscal 2010 totaled $7.67 million compared to sales of $9.35 million for the second quarter of 2009. The company reported net income of $204,472, or $.09 per diluted share compared to net income of $256,114, or $.11 per diluted share in the same period a year ago.
For the six months ended February 28, 2010, Jewett-Cameron reported sales of $15.0 million compared to $20.1 million for the same period a year ago. Net income for the first six months of fiscal 2010 was $277,102, or $.12 per diluted share, compared to net income of $549,589, or $.23 per diluted share in the same period a year ago.
"All of the Company's segments continue to be negatively affected by the difficult economic conditions, with total Company sales down about 25% for the six month period," said CEO Don Boone. "However, we successfully reduced our operating expenses by 12% compared to the same period in fiscal 2009."
Jewett-Cameron's financial position continues to be strong, and currently has no borrowing against its $5.0 million line of credit. As of February 28, 2010, the Company's cash position was $7.69 million.
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.
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. STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) | ||||||||
Three Month Periods to February 28, | Six Month Periods to February 28, | |||||||
2010 | 2009 | 2010 | 2009 | |||||
SALES | $ 7,675,454 | $ 9,354,961 | $15,050,380 | $20,137,024 | ||||
COST OF SALES | 5,913,667 | 7,308,477 | 11,672,995 | 15,874,075 | ||||
GROSS PROFIT | 1,761,787 | 2,046,484 | 3,377,385 | 4,262,949 | ||||
OPERATING EXPENSES | ||||||||
Selling, general and administrative expenses | 519,314 | 509,457 | 1,060,029 | 1,063,582 | ||||
Depreciation and amortization | 72,922 | 78,986 | 133,618 | 158,387 | ||||
Wages and employee benefits | 817,275 | 1,010,883 | 1,697,562 | 2,072,767 | ||||
1,409,511 | 1,599,326 | 2,891,209 | 3,294,736 | |||||
Income from operations | 352,276 | 447,158 | 486,176 | 968,213 | ||||
OTHER ITEMS | ||||||||
Gain (loss) on sale of property, plant and equipment | (3,492) | 2,000 | (3,492) | 2,000 | ||||
Interest and other income | 2,658 | 7,586 | 4,418 | 18,930 | ||||
Interest expense | - | (20,608) | - | (57,532) | ||||
(834) | (11,022) | 926 | (36,602) | |||||
Income before income taxes | 351,442 | 436,136 | 487,102 | 931,611 | ||||
Income taxes | 146,970 | 180,022 | 210,000 | 382,022 | ||||
Net income | $ 204,472 | $ 256,114 | $ 277,102 | $ 549,589 | ||||
Basic earnings per common share | $ 0.09 | $ 0.11 | $ 0.12 | $ 0.23 | ||||
Diluted earnings per common share | $ 0.09 | $ 0.11 | $ 0.12 | $ 0.23 | ||||
Weighted average number of common shares outstanding: | ||||||||
Basic | 2,390,977 | 2,390,977 | 2,390,977 | 2,390,977 | ||||
Diluted | 2,390,977 | 2,390,977 | 2,390,977 | 2,390,977 | ||||
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) (Prepared by Management) | ||||
February 28, | August 31, | |||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | $ 7,693,603 | $ 6,828,571 | ||
Accounts receivable, net of allowance of $3,615 (August 31, 2009 - $3,816) | 3,306,127 | 3,603,916 | ||
Inventory, net of allowance of $20,000 (August 31, 2009 - $313,000) (note 3) | 5,381,988 | 6,954,811 | ||
Note receivable | 41,500 | 41,500 | ||
Prepaid expenses | 268,147 | 160,809 | ||
Prepaid income taxes | 413,845 | 43,805 | ||
Total current assets | 17,105,210 | 17,633,412 | ||
Property, plant and equipment, net (note 4) | 1,955,522 | 1,872,191 | ||
Intangible assets, net (note 5) | 623,185 | 662,045 | ||
Deferred income taxes (note 6) | 158,300 | 261,780 | ||
Total assets | $ 19,842,217 | $ 20,429,428 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Liabilities | ||||
Accounts payable | $ 140,350 | $ 999,562 | ||
Accrued liabilities | 811,859 | 816,960 | ||
Total liabilities | 952,209 | 1,816,522 | ||
Contingent liabilities and commitments (note 11) | ||||
Stockholders' equity | ||||
Capital stock (note 8) | ||||
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, 2009 - 2,390,977) | 2,256,112 | 2,256,112 | ||
Additional paid-in capital | 600,804 | 600,804 | ||
Retained earnings | 16,033,092 | 15,755,990 | ||
Total stockholders' equity | 18,890,008 | 18,612,906 | ||
Total liabilities and stockholders' equity | $ 19,842,217 | $20,429,428 | ||
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) | ||||
Six Month Periods | ||||
2010 | 2009 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ 277,102 | $ 549,589 | ||
Items not involving an outlay of cash: | ||||
Depreciation and amortization | 133,618 | 158,387 | ||
Gain (loss) on sale of property, plant and equipment | 3,492 | (2,000) | ||
Deferred income taxes | 103,480 | (11,940) | ||
Changes in non-cash working capital items: | ||||
(Increase) decrease in accounts receivable | 297,789 | 1,545,242 | ||
(Increase) in note receivable | - | (41,500) | ||
(Increase) decrease in inventory | 1,572,823 | (340,677) | ||
(Increase) decrease in prepaid expenses | (107,338) | (287,133) | ||
Increase (decrease) in accounts payable and accrued liabilities | (864,313) | (638,979) | ||
Increase (decrease) in accrued income taxes | (370,040) | (349,532) | ||
Net cash provided by (used in) operating activities | 1,046,613 | 581,457 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of property, plant and equipment | (181,581) | (15,310) | ||
Proceeds from sale of property, plant and equipment | - | 2,000 | ||
Net cash used in investing activities | (181,581) | (13,310) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Promissory note | - | (2,018,811) | ||
Note payable | - | (300,000) | ||
Net cash provided by (used in) financing activities | - | (2,318,811) | ||
Net increase (decrease) in cash and cash equivalents | 865,032 | (1,750,663) | ||
Cash and cash equivalents, beginning of period | 6,828,571 | 5,758,479 | ||
Cash and cash equivalents, end of period | $ 7,693,603 | $ 4,007,815 | ||
SEGMENT INFORMATION Following is a summary of segmented information for the six month periods ended February 28: | |||||
2010 | 2009 | ||||
Sales to unaffiliated customers: | |||||
Industrial wood products | $ 4,565,359 | $ 6,137,398 | |||
Lawn, garden, pet and other | 7,413,406 | 10,787,250 | |||
Seed processing and sales | 2,220,267 | 2,714,442 | |||
Industrial tools and clamps | 851,348 | 497,934 | |||
$ 15,050,380 | $ 20,137,024 | ||||
Income (loss) before income taxes: | |||||
Industrial wood products | $ (95,197) | $ (265,338) | |||
Lawn, garden, pet and other | 1,051,915 | 1,141,559 | |||
Seed processing and sales | (419,188) | 108,802 | |||
Industrial tools and clamps | (428) | 10,045 | |||
Unallocated overhead | (50,000) | (63,457) | |||
$ 487,102 | $ 931,611 | ||||
Contact: Don Boone, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
