NORTH PLAINS, Ore., Nov. 18 /PRNewswire-FirstCall/ -- Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTCF; TSX: JCT) today reported financial results for its fourth quarter and fiscal year ended August 31, 2009.
For the fiscal year ended August 31, 2009 Jewett-Cameron reported sales of $42.13 million compared to $64.32 million fiscal year ended August 31, 2008. Net income for fiscal 2009 was $1,582,477 or $0.66 per diluted share compared to net income of $2,610,134 or $1.09 per diluted share in the same period a year ago.
Sales for the fourth quarter of fiscal 2009 totaled $10.6 million compared to sales of $17.3 million for the fourth quarter of fiscal 2008. The company reported net income of $549,335 or $0.23 per diluted share compared to net income of $762,645 or $0.32 per diluted share in the same period a year ago.
"Our fiscal 2009 sales were down about 34.5% from the prior year, which primarily reflects the ongoing weakness in industrial wood sales to pleasure boat manufacturers," said CEO Don Boone. "Excluding our Greenwood industrial wood products segment, overall sales declined by 15.6%, as the weak economy and housing market in the United States reduced overall demand for our products. However, due to effective cost controls and healthy demand for our specialty metal products, we have been able to maintain our gross margins and strong balance sheet."
As of August 31, the Company''s cash position was $6.8 million. Jewett-Cameron''s financial position continues to be strong, and currently has no borrowing against its $5.0 million line of credit. Management is exploring possible uses for its cash to increase shareholder value, which may include a common share repurchase program for a portion of its currently outstanding common shares.
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.
2009 2008 ---- ---- ASSETS Current assets Cash and cash equivalents $6,828,571 $5,758,479 Accounts receivable, net of allowance of $3,816 (August 31, 2008 - $10,474) 3,603,916 5,405,861 Inventory, net of allowance of $313,000 (August 31, 2008 - $100,000) (note 3) 6,954,811 8,068,284 Note receivable 41,500 - Prepaid expenses 160,809 138,957 Prepaid income taxes 43,805 13,753 ------ ------ Total current assets 17,633,412 19,385,334 Property, plant and equipment, net (note 4) 1,872,191 1,861,652 Intangible assets, net (note 5) 662,045 740,382 Deferred income taxes (note 6) 261,780 192,870 ------- ------- Total assets $20,429,428 $22,180,238 LIABILITIES AND STOCKHOLDERS'' EQUITY Current liabilities Accounts payable $999,562 $1,585,844 Accrued liabilities 816,960 1,245,154 Current portion of promissory note and note payable - 367,807 --- ------- Total current liabilities 1,816,522 3,198,805 Long term liabilities Promissory note (note 8) - 1,951,004 --- --------- Total liabilities 1,816,522 5,149,809 --------- --------- Contingent liabilities and commitments (note 13) Stockholders'' equity Capital stock (note 9) Authorized 20,000,000 common shares, without par value 10,000,000 preferred shares, without par value Issued 2,390,977 common shares (August 31, 2008 - 2,390,977) 2,256,112 2,256,112 Additional paid-in capital 600,804 600,804 Retained earnings 15,755,990 14,173,513 ---------- ---------- Total stockholders'' equity 18,612,906 17,030,429 ---------- ---------- Total liabilities and stockholders'' equity $20,429,428 $22,180,238 ========================================== =========== =========== 2009 2008 ---- ---- SALES $42,130,097 $64,321,034 COST OF SALES 33,228,338 52,932,232 ---------- ---------- GROSS PROFIT 8,901,759 11,388,802 OPERATING EXPENSES Selling, general and administrative 2,182,143 2,166,535 Depreciation and amortization 316,964 313,561 Wages and employee benefits 3,743,847 4,535,823 --------- --------- 6,242,954 7,015,919 --------- --------- Income from operations 2,658,805 4,372,883 OTHER ITEMS Gain on sale of property, plant and equipment 2,850 16,115 Interest and other income 5,445 7,571 Interest expense (43,363) (189,627) ------- -------- (35,068) (165,941) ------- -------- Income before income taxes 2,623,737 4,206,942 Income taxes (note 6) Current 1,041,260 1,669,978 Deferred (recovered) - (73,170) --- ------- 1,041,260 1,596,808 --------- --------- Net income for the year $1,582,477 $2,610,134 Basic earnings per common share $0.66 $1.09 Diluted earnings per common share $0.66 $1.09 Weighted average number of common shares outstanding: Basic 2,390,977 2,390,284 Diluted 2,390,977 2,391,004 ======= ========= ========= 2009 2008 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net income $1,582,477 $2,610,134 Items not affecting cash: Depreciation and amortization 316,964 313,561 Gain on sale of property, plant and equipment (2,850) (16,115) Deferred income taxes (68,910) (73,170) Changes in non-cash working capital items: Decrease in accounts receivable 1,801,945 1,039,423 Increase in note receivable (41,500) - Decrease in inventory 1,113,473 2,810,259 (Increase) decrease in prepaid expenses (21,852) 63,198 Decrease in accounts payable and accrued liabilities (1,014,476) (699,663) Decrease in accrued income taxes (30,052) (187,510) ------- -------- Net cash provided by operating activities 3,635,219 5,860,117 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds on sale of property, plant and equipment 2,850 16,500 Purchase of property, plant and equipment (249,166) (63,582) Purchase of intangible assets and other - (3,595) --- ------ Net cash used in investing activities (246,316) (50,677) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of bank indebtedness - (1,059) Issuance of capital stock for cash - 56,098 Repayment of notes payable (300,000) (300,000) Promissory note (2,018,811) (63,131) ---------- ------- Net cash used in financing activities (2,318,811) (308,092) Net increase in cash and cash equivalents 1,070,092 5,501,348 Cash and cash equivalents, beginning of year 5,758,479 257,131 --------- ------- Cash and cash equivalents, end of year $6,828,571 $5,758,479 ====================================== ========== ========== Contact: Don Boone, President & CEO, (503) 647-0110
Jewett-Cameron Trading Company Ltd.
CONTACT: Don Boone, President & CEO of Jewett-Cameron Trading Company
Ltd., +1-503-647-0110
