Jewett-Cameron Announces Second Quarter 2007 Results



    Sales for the Quarter Were Down 14%, but Earnings from Operations Were up
29% vs. the Same Period a Year Ago; Outlook is Positive

    NORTH PLAINS, ORE., April 10 /CNW/ - Jewett-Cameron Trading Company Ltd.
(NASDAQ:  JCTCF)(TSX:JCT) today reported financial results for the second
quarter and six months ended February 28, 2007.

    Sales for the second quarter of 2007 totaled $16.4 million compared to
sales of $18.9 million for the second quarter of 2006. The company reported
net income of $0.3 million or $.20 per diluted share compared to net income of
$0.6 million or $.39 per diluted share in the same period a year ago. However,
the year ago period included a pre-tax gain of $0.6 million related to the
sale of the company's distribution center in Utah, and excluding this item net
income a year ago was $.16 per diluted share.

    For the six months ended February 28, 2007 Jewett-Cameron reported sales
of $31.9 million compared to $37.2 million for the same period a year ago. Net
income for the first six months of fiscal 2007 was $0.6 million or $.38 per
diluted share compared to net income of $1.2 million or $.74 per diluted share
in the same period a year ago. The year ago period included the gain on the
sale of the distribution center, and if this is excluded, net income for that
period was $.51 per diluted share.

    "Total company sales for the second quarter were down about 14% from the
prior year, yet net income and earnings per share excluding the gain from the
sale of property last year were up about 29%," said CEO Don Boone. "This
reflects a coupling of a year over year sales decline in our industrial wood
segment with more steady sales in our lumber and building materials segment,
which includes higher profit sales than the industrial segment. In fact we
continue to experience good sales increases in our non-wood specialty products
like dog kennels, our proprietary fence gate systems, perimeter fencing, and
greenhouses."

    Mr. Boone went on to add, "Market conditions are continuing to be
difficult for our industrial wood segment. However, in the lumber and building
materials segment the third quarter is shaping up to be a good one. A seasonal
surge in fencing sales will positively impact our third quarter, and we
continue to have good success in increasing sales of our specialty non-wood
products."

    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.

    Financial results for the second quarter and six months ended February
28, 2007 do not 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 the processing and
distribution of agricultural seed and the distribution of pneumatic air tools
and industrial 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 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.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)

                          Three Month Periods        Six Month Periods
                          Ended February 28,         Ended February 28,
                           2007        2006             2007     2006
                       ------------ ------------ ------------ ------------

    SALES              $16,378,530  $18,948,343  $31,919,499  $37,173,300

    COST OF SALES       13,868,269   16,187,677   26,958,885   31,628,215
                       ------------ ------------ ------------ ------------

    GROSS PROFIT         2,510,261    2,760,666    4,960,614    5,545,085
                       ------------ ------------ ------------ ------------

    OPERATING EXPENSES
    Selling, general
     and administrative
     expenses              793,860      896,557    1,535,670    1,529,614
    Depreciation            81,442       70,919      149,292      142,881
    Wages and employee
     benefits            1,031,959    1,335,467    2,138,241    2,541,607
                       ------------ ------------ ------------ ------------
                         1,907,261    2,302,943    3,823,203    4,214,102
                       ------------ ------------ ------------ ------------

    Income from
     operations            603,000      457,723    1,137,411    1,330,983
                       ------------ ------------ ------------ ------------

    OTHER ITEMS
    Gain on sale of
     property, plant
     and equipment               -      599,825            -      599,825
    Interest and other
     income                  3,807            1        3,863       60,435
    Interest expense       (72,459)     (54,823)    (125,599)    (114,126)
                       ------------ ------------ ------------ ------------
                           (68,652)     545,003     (121,736)     546,134
                       ------------ ------------ ------------ ------------

    Income before
     income taxes          534,348    1,002,726    1,015,675    1,877,117

    Income taxes           213,000      385,000      406,444      709,000
                       ------------ ------------ ------------ ------------

    Net income         $   321,348     $617,726  $   609,231   $1,168,117
    ----------------------------------------------------------------------

    Basic earnings per
     common share      $       .20         $.40  $       .38         $.76
    ----------------------------------------------------------------------

    Diluted earnings
     per common share  $       .20         $.39  $       .38         $.74
    ----------------------------------------------------------------------

    Weighted average
     number of common
     shares
     outstanding:
    Basic                1,584,859    1,532,359    1,584,859    1,527,984
    Diluted              1,584,859    1,572,616    1,586,368    1,571,424
    

    
                     JEWETT-CAMERON TRADING COMPANY LTD.
                         CONSOLIDATED BALANCE SHEETS

                                                 February 28,  August 31,
                                                     2007         2006
                                                 ------------ ------------
                                                  (Unaudited)
    ASSETS

    Current assets
      Cash and cash equivalents                  $   577,945  $   146,810
      Accounts receivable, net of allowances
       of $0 (August 31, 2006-$0)                  7,135,891    6,822,197
      Inventory                                    9,856,497    8,750,861
      Prepaid expenses                               322,750      139,936
      Income taxes receivable                        126,765            -
      Note receivable                                  4,000        4,000
                                                 ------------ ------------

      Total current assets                        18,023,848   15,863,804

    Property, plant and equipment, net             2,119,770    2,217,756

    Intangible assets, net                           836,743          101

    Deferred income taxes                            143,300      142,900
                                                 ------------ ------------

    Total assets                                 $21,123,661  $18,224,561
    ----------------------------------------------------------------------
    

    
                     JEWETT-CAMERON TRADING COMPANY LTD.
                         CONSOLIDATED BALANCE SHEETS

                                                 February 28,  August 31,
                                                     2007         2006
                                                 ------------ ------------
                                                  (Unaudited)
    Continued

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities
      Bank indebtedness                          $ 2,448,266  $         -
      Account payable                              1,878,116    2,514,801
      Accrued liabilities                          1,459,862    1,537,290
      Accrued income taxes                                 -       40,871
      Current portion of long term liabilities       361,807       59,432
                                                 ------------ ------------

      Total current liabilities                    6,148,051    4,152,394

    Long term liabilities
      Promissory note                              2,049,786    2,081,963
      Note payable                                   300,000            -
                                                 ------------ ------------
      Total long term liabilities                  2,349,786    2,081,963
                                                 ------------ ------------

    Total liabilities                              8,497,837    6,234,357
                                                 ------------ ------------

    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
          1,584,859 common shares (August 31,
           2006-1,584,859)                         2,138,468    2,138,468
      Additional paid-in capital                     609,600      583,211
      Retained earnings                            9,877,756    9,268,525
                                                 ------------ ------------

      Total stockholders' equity                  12,625,824   11,990,204
                                                 ------------ ------------

      Total liabilities and stockholders' equity $21,123,661  $18,224,561
    ----------------------------------------------------------------------
    

    
                     JEWETT-CAMERON TRADING COMPANY LTD.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                         Six Month
                                                       Periods Ended
                                                        February 28
                                                  ------------------------
                                                      2007        2006
                                                  ------------ -----------

    CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                                    $   609,231  $1,168,117
    Items not involving an outlay of cash:
      Depreciation                                    149,292     142,881
      Gain on sale of property, plant and
       equipment                                            -    (599,825)
      Deferred income taxes                              (400)     23,600
      Stock based compensation expense                 26,389           -
    Changes in non-cash working capital items:
      Increase in accounts receivable                (313,694)   (641,129)
      (Increase) decrease in inventory             (1,105,636)    105,768
      Increase in prepaid expenses                   (182,814)    (71,633)
      Increase in income taxes receivable            (126,765)    (71,633)
      Decrease in notes receivable                          -      25,338
      Increase (decrease) in accounts payable and
       accrued liabilities                           (714,113)    317,829
      Decrease in accrued income taxes                (40,871)   (310,847)
                                                  ------------ -----------
    Net cash provided by (used in) operating
     activities                                    (1,699,381)    160,099
                                                  ------------ -----------
    CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds (repayment) of bank indebtedness       2,448,266    (805,577)
    Promissory note                                   (29,802)    (27,963)
    Note payable                                      600,000           -
                                                  ------------ -----------
    Net cash provided by (used in) financing
     activities                                     3,018,464    (833,540)
                                                  ------------ -----------

    CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of property, plant and equipment         (32,948)    (30,378)
    Purchase of intangible assets and other          (855,000)          -
    Proceeds on sale of property, plant and
     equipment                                              -     660,000
                                                  ------------ -----------
    Net cash provided by (used in) investing
     activities                                      (887,948)    629,622
                                                  ------------ -----------

    Net increase (decrease) in cash and cash
     equivalents                                      431,135     (43,819)

    Cash and cash equivalents, beginning of period    146,810     609,944
                                                  ------------ -----------

    Cash and cash equivalents, end of period      $   577,945  $  566,125
    ----------------------------------------------------------------------
    

    
                     JEWETT-CAMERON TRADING COMPANY LTD.
                             SEGMENT INFORMATION

    Following is a summary of segmented information for the six month
     periods ended February 28:
                                                     2007         2006
                                                 ------------ ------------
    Sales to unaffiliated customers:
    Industrial wood products                     $21,125,358  $26,031,360
    Lumber, building materials & other             6,316,941    7,558,595
    Seed processing and sales                      4,000,874    3,128,027
    Industrial tools                                 476,326      455,318
                                                 ------------ ------------
                                                 $31,919,499  $37,173,300
                                                 ------------ ------------
    Income (loss) from operations:
    Industrial wood products                     $   442,369  $ 1,070,591
    Lumber, building materials & other               670,713      193,425
    Seed processing and sales                         81,383       63,365
    Industrial tools                                  16,759       62,809
    General corporate                                (73,813)     (59,207)
                                                 ------------ ------------
                                                 $ 1,137,411  $ 1,330,983
    ----------------------------------------------------------------------
    




For further information:

For further information: Jewett-Cameron Trading Company Ltd. Donald M.
Boone, President & CEO, 503-647-0110 Facsimile: 503-647-2272 Web:
www.jewettcameron.com

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Jewett-Cameron Trading Company Ltd.

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