NORTH PLAINS, Ore., July 11 /CNW/ -- Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF, TSX: JCT) today reported financial results for the third quarter and nine months ended May 31, 2007.
Sales for the third quarter of 2007 totaled $20.9 million compared to sales of $20.6 million for the third quarter of 2006. The company reported net income of $757 thousand or $.32 per diluted share compared to net income of $561 thousand or $.24 per diluted share in the same period a year ago. Net income and earnings per share for this most recent quarter are the best in the company's history.
For the nine months ended May 31, 2007 Jewett-Cameron reported sales of $52.8 million compared to $57.7 million for the same period a year ago. Net income for the first nine months of fiscal 2007 was $1,366 thousand or $.57 per diluted share compared to net income of $1,728 thousand or $.73 per diluted share in the same period a year ago. The year ago period included the gain on the sale of the company's distribution center in Utah, and if this is excluded, net income for that period was $.57 per diluted share.
CEO Don Boone commented, "We have continued to experience good sales and profit increases in our lumber and building materials segment. This reflects the rapid growth in our non-wood specialty products like dog kennels, our proprietary gate support systems, perimeter fencing, and greenhouses coupled with seasonal strength in wood products like fencing and landscape timbers. The record earnings are all the more impressive given the fact that our industrial wood segment, while profitable, continues to struggle." Mr. Boone concluded by saying, "The outlook overall for the fourth quarter looks good."
Stock Split
At Jewett-Cameron's annual meeting, which was held on March 9, 2007, shareholders approved a three for two stock split, which was distributed on or about March 23, 2007 to holders of record on March 19, 2007. The stock started trading on a post-split basis on March 15, 2007, and per share financial results have been restated to reflect this stock split.
About Jewett-Cameron Trading Company Ltd.
Jewett-Cameron is a wholesale distributor of specialty wood products principally for applications in the marine and transportation industries. The company is also a wholesaler of building materials and a manufacturer and distributor of specialty wood and metal products for home centers and other retailers. Other activities at Jewett-Cameron include processing and distribution of agricultural seed and the distribution of tools and clamps. The area of most significant growth within Jewett-Cameron is the manufacture and distribution of specialty metal products like dog kennels, gate support systems, perimeter fencing, and greenhouses.
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 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 STATEMENTS OF OPERATIONS
(Unaudited)
Three Month Periods Ended Nine Month Periods Ended
May 31, May 31,
2007 2006 2007 2006
SALES $20,855,492 $20,557,496 $52,774,991 $57,730,796
COST OF SALES 17,700,854 17,606,950 44,659,739 49,235,165
GROSS PROFIT 3,154,638 2,950,546 8,115,252 8,495,631
OPERATING EXPENSES
Selling, general
and
administrative
expenses 743,090 743,131 2,278,760 2,272,745
Depreciation and
amortization 84,676 71,899 233,968 214,780
Wages and
employee
benefits 1,018,768 1,195,64 3,157,009 3,737,254
1,846,534 2,010,677 5,669,737 6,224,779
Income from operations 1,308,104 939,869 2,445,515 2,270,852
OTHER ITEMS
Gain on sale of
property, plant
and equipment
(note 5) 6,787 -- 6,787 599,825
Interest and
other income (3,863) -- -- 60,435
Interest expense (65,130) (53,367) (190,729) (167,493)
(62,206) 53,367 (183,942) 492,767
Income before income taxes 1,245,898 886,502 2,261,573 2,763,619
Income taxes 489,001 326,000 895,445 1,035,000
Net income $756,897 $560,502 $1,366,128 $1,728,619
Basic earnings per common share $.32 $.24 $.57 $.75
Diluted earnings per common share $.32 $.24 $.57 $.73
Weighted average number of common shares outstanding: Basic 2,377,289 2,298,539 2,377,289 2,294,163 Diluted 2,378,353 2,361,689 2,379,193 2,372,913
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
May 31, August 31,
2007 2006
(Unaudited)
ASSETS
Current assets Cash and cash equivalents $468,131 $146,810 Accounts receivable, net of allowances of $0 (August 31, 2006-$0) 6,346,073 6,822,197 Inventory (note 3) 9,426,825 8,750,861 Prepaid expenses 187,736 139,936
Note receivable (note 4) 4,000 4,000
Total current assets 16,432,765 15,863,804
Property, plant and equipment, net (note 5) 2,090,656 2,217,756
Intangible assets, net (note 6) 836156 101
Deferred income taxes (note 7) 143,300 142,900
Total assets $19,502,877 $18,224,561
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Account payable $1,644,505 $2,514,801 Accrued liabilities 1,757,910 1,537,290 Accrued income taxes 20,848 40,871 Current portion of long term liabilities 362,843 59,432
Total current liabilities 3,786,106 4,152,394
Long term liabilities (note 8) Promissory note 2,034,050 2,081,963 Note payable 300,000 --
Total long term liabilities 2,334,050 2,081,963
Total liabilities 6,120,156 6,234,357
Contingent liabilities and commitments (note 10)
Stockholders' equity
Capital stock (note 9)
Authorized
20,000,000 common shares, without par value
10,000,000 preferred shares, without
par value
Issued
2,377,289 common shares
(August 31, 2006-2,377,289) 2,138,468 2,138,468
Additional paid-in capital 609,600 583,211
Retained earnings 10,634,653 9,268,525
Total stockholders' equity 13,382,721 11,990,204
Total liabilities and stockholders' equity $19,502,877 $18,224,561
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Month
Periods Ended
May 31
2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES Net income $1,366,128 $1,728,619 Items not involving an outlay of cash: Depreciation 233,968 214,780 Gain on sale of property, plant and equipment (6,787) (599,825) Deferred income taxes (400) 400 Stock based compensation expense 26,389 -- Changes in non-cash working capital items: (Increase) decrease in accounts receivable 476,124 (148,541) (Increase) decrease in inventory (675,964) 543,777 (Increase) decrease in prepaid expenses (47,800) 1,044 (Increase) decrease in income taxes receivable -- -- (Increase) decrease in notes receivable -- 32,994 Increase (decrease) in accounts payable and accrued liabilities (649,676) (89,377) Increase (decrease) in accrued income taxes (20,023) 38,353
Net cash provided by operating activities 701,959 1,722,224
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds (repayment) of bank indebtedness 0 (2,000,617) Promissory note (44,502) (41,706) Note payable 600,000 --
Net cash provided by (used in) financing activities 555,498 (2,042,323)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (70,223) (41,131) Purchase of intangible assets and other (872,700) -- Proceeds on sale of property, plant and equipment 6,787 660,000
Net cash provided by (used in) investing activities (936,136) 618,869
Net increase in cash and cash equivalents 321,321 298,770
Cash and cash equivalents, beginning of period 146,810 609,944
Cash and cash equivalents, end of period $468,131 $908,714
JEWETT-CAMERON TRADING COMPANY LTD.
SEGMENT INFORMATION
(Unaudited)
Following is a summary of segment information for the
nine months ended May 31:
2007 2006
Sales to unaffiliated customers:
Industrial wood products $32,153,737 $38,480,180
Lumber, building materials & other 14,533,573 14,261,103
Seed processing and sales 5,296,785 4,296,768
Industrial tools 790,897 692,745
$52,774,991 $57,730,796
Income (loss) from operations:
Industrial wood products $790,801 $1,405,531
Lumber, building materials & other 1,531,858 641,972
Seed processing and sales 220,204 198,610
Industrial tools 1,595 112,150
General corporate (98,944) (87,411)
$2,445,515 $2,270,852
Contact: Don Boone, President & CEO, (503) 647-0110
