Jewett-Cameron Announces Fiscal 2017 Financial Results
Montag, 13.11.2017 22:25 von PR Newswire
PR Newswire
NORTH PLAINS, Ore., Nov. 13, 2017
NORTH PLAINS, Ore., Nov. 13, 2017 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2017.
For the fiscal year ended August 31, 2017, Jewett-Cameron reported net income of $2,726,657, or $1.20 per share on sales of $47.70 million compared to net income of $2,125,099, or $0.87 per share, on sales of $48.11 million reported for fiscal 2016.
Sales for the fourth quarter of fiscal 2017 totaled $11.1 million compared to sales of $10.5 million in the prior year's fourth quarter. Net income was $725,589, or $0.32 per share, compared to net income of $552,164, or $0.23 per diluted share, in the fourth quarter of fiscal 2016.
"We are pleased with the progress we have made in eCommerce and in developing new international customers," said CEO Charlie Hopewell. "In fiscal 2018, we will continue our efforts to expand our business in both our existing sales channels and through new sales initiatives."
As of August 31, 2017, the Company's cash position was $5.9 million, and currently there is no borrowing against its $3.0 million line of credit. During fiscal 2017, the Company repurchased and cancelled a total of 41,800 common shares at a cost of $526,941, which represents an average price of $12.61 per share. Donald M. Boone, Chairman and Director, also voluntarily returned 10,000 common shares to the Company's treasury for cancellation. The Company paid Mr. Boone no consideration for these shares. The Company's most recent share repurchase plan terminated on August 31, 2017. The Board of Directors will consider implementing new share repurchase plans in the future as an effective use of the Company's cash position.
About Jewett-Cameron Trading Company Ltd.
Jewett-Cameron Trading Company is a holding company that, through its subsidiaries, operates out of facilities located in North Plains, Oregon. Jewett-Cameron Company's business consists 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.
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JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES | |||||
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CONSOLIDATED BALANCE SHEETS | |||||
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(Expressed in U.S. Dollars) | |||||
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AS OF AUGUST 31 | |||||
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2017 |
2016 |
||||
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ASSETS |
|||||
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Current assets |
|||||
|
Cash |
$ 5,912,250 |
$ 4,519,922 |
|||
|
Accounts receivable, net of allowance of $1,725 (August 31, 2016 - $Nil) |
3,565,055 |
3,342,204 |
|||
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Inventory, net of allowance of $156,713 (August 31, 2016 - $176,717) |
8,807,545 |
8,069,017 |
|||
|
Prepaid expenses |
595,776 |
832,895 |
|||
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Prepaid income taxes |
- |
596 |
|||
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Total current assets |
18,880,626 |
16,764,634 |
|||
|
Property, plant and equipment, net |
3,222,572 |
2,954,595 |
|||
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Intangible assets, net |
77,837 |
150,543 |
|||
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Total assets |
$ 22,181,035 |
$ 19,869,772 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
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Current liabilities |
|||||
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Accounts payable |
$ 638,128 |
$ 839,972 | |||
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Accrued liabilities |
1,807,192 |
1,473,792 | |||
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Total current liabilities |
2,445,320 |
2,313,764 | |||
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Deferred tax liability |
11,344 |
31,353 | |||
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Total liabilities |
2,456,664 |
2,345,117 | |||
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Contingent liabilities and commitments |
|||||
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Stockholders' equity |
|||||
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Capital stock |
|||||
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Authorized |
|||||
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21,567,564 common shares, without par value |
|||||
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10,000,000 preferred shares, without par value |
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Issued |
|||||
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2,234,494 common shares (August 31, 2016 – 2,286,294) |
1,054,316 |
1,078,759 | |||
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Additional paid-in capital |
600,804 |
600,804 | |||
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Retained earnings |
18,069,251 |
15,845,092 | |||
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Total stockholders' equity |
19,724,371 |
17,524,655 | |||
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Total liabilities and stockholders' equity |
$ 22,181,035 |
$ 19,869,772 | |||
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JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES | |||
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||
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(Expressed in U.S. Dollars) | |||
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YEARS ENDED AUGUST 31 | |||
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2017 |
2016 | ||
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SALES |
$ 47,701,056 |
$ 48,110,998 | |
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COST OF SALES |
36,621,773 |
38,374,405 | |
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GROSS PROFIT |
11,079,283 |
9,736,593 | |
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OPERATING EXPENSES |
|||
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Selling, general and administrative |
2,016,776 |
1,789,231 | |
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Depreciation and amortization |
275,214 |
276,268 | |
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Wages and employee benefits |
4,349,542 |
4,055,948 | |
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6,641,532 |
6,121,447 | ||
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Income from operations |
4,437,751 |
3,615,146 | |
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OTHER ITEMS |
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(Loss) gain on sale of property, plant and equipment |
(394) |
5,600 | |
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Interest and other income |
27,894 |
15,164 | |
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Interest expense |
- |
(27) | |
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Litigation expense |
- |
(115,990) | |
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27,500 |
(95,253) | ||
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Income before income taxes |
4,465,251 |
3,519,893 | |
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Income taxes |
|||
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Current |
1,758,603 |
1,397,741 | |
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Deferred (recovery) |
(20,009) |
(2,947) | |
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Net income for the year |
$ 2,726,657 |
$ 2,125,099 | |
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Basic earnings per common share |
$ 1.20 |
$ 0.87 | |
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Diluted earnings per common share |
$ 1.20 |
$ 0.87 | |
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Weighted average number of common shares outstanding: |
|||
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Basic |
2,272,522 |
2,435,650 | |
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Diluted |
2,272,522 |
2,435,650 | |
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JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES | |||
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CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
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(Expressed in U.S. Dollars) | |||
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YEARS ENDED AUGUST 31 | |||
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2017 |
2016 | ||
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CASH FLOWS FROM OPERATING ACTIVITIES |
|||
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Net income for the year |
$ 2,726,657 |
$ 2,125,099 | |
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Items not affecting cash: |
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Depreciation and amortization |
275,214 |
276,268 | |
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Loss (gain) on sale of property, plant and equipment |
394 |
(5,600) | |
|
Deferred income taxes |
(20,009) |
(2,947) | |
|
Interest income on litigation |
- |
(6,661) | |
|
Decrease in litigation reserve |
- |
(84,010) | |
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Changes in non-cash working capital items: |
|||
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(Increase) decrease in accounts receivable |
(222,851) |
346,043 | |
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Decrease in note receivable |
- |
1,310 | |
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(Increase) decrease in inventory |
(738,528) |
282,558 | |
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Decrease (increase) in prepaid expenses |
237,119 |
(113,436) | |
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Decrease in prepaid income taxes |
596 |
25,974 | |
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Increase in accounts payable and accrued liabilities |
131,556 |
304,451 | |
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Net cash provided by operating activities |
2,390,148 |
3,149,049 | |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Proceeds on sale of property, plant and equipment |
3,480 |
5,600 | |
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Purchase of property, plant and equipment |
(474,359) |
(926,445) | |
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Net cash used in investing activities |
(470,879) |
(920,845) | |
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CASH FLOWS FROM FINANCING ACTIVITIES |
|||
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Redemption of common stock |
(526,941) |
(2,124,579) | |
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Net cash used in financing activities |
(526,941) |
(2,124,579) | |
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Net increase in cash |
1,392,328 |
103,625 | |
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Cash, beginning of year |
4,519,922 |
4,416,297 | |
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Cash, end of year |
$ 5,912,250 |
$ 4,519,922 | |
Contact: Charlie Hopewell, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.