Jewett-Cameron Reports EPS of $.12 for the First Quarter of Fiscal 2009



    NORTH PLAINS, OR, Jan. 13 /CNW/ - Jewett-Cameron Trading Company Ltd.
(Nasdaq:   JCTCF; TSX: JCT) today reported financial results for the first
quarter of fiscal 2009, which is the three months ended November 30, 2008.
    Sales for the first quarter of 2009 totaled $10.8 million compared to
sales of $14.0 million for the first quarter of 2008. Net income for the first
quarter of 2009 was $293 thousand or $.12 per diluted share compared to net
income of $374 thousand or $.16 per diluted share in the same period a year
ago.
    Jewett-Cameron's financial condition continues to be strong. At November
30, 2008 the company had cash of $7.3 million and total debt of only $2.3
million. The company had no borrowing against its $5.0 million line of credit.

    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.  The area of most significant growth within Jewett-Cameron
is the manufacture and distribution of specialty metal products like dog
kennels, gate support systems, and perimeter fencing.

    
    JEWETT-CAMERON TRADING COMPANY LTD.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)

                                                 Three Month Periods Ended
                                                         November 30,
                                                     2008              2007

    SALES                                      $10,782,063       $14,005,330

    COST OF SALES                                8,565,598        11,516,955

    GROSS PROFIT                                 2,216,465         2,488,375

    OPERATING EXPENSES
    Selling, general and administrative
     expenses                                      554,125           631,075
    Depreciation and amortization                   79,401            79,006
    Wages and employee benefits                  1,061,884         1,118,421
                                                 1,695,410         1,828,502

    Income from operations                         521,055           659,873

    OTHER ITEMS

    Interest and other income                       11,344                 -
    Interest expense                               (36,924)          (42,208)
                                                   (25,580)          (42,208)

    Income before income taxes                     495,475           617,665

    Income taxes                                   202,000           243,750

    Net income                                    $293,475          $373,915

    Basic earnings per common share                   $.12              $.16

    Diluted earnings per common share                 $.12              $.16

    Weighted average number of common shares
     outstanding:
    Basic                                        2,390,977         2,388,258
    Diluted                                      2,390,977         2,391,265



    JEWETT-CAMERON TRADING COMPANY LTD.
    CONSOLIDATED BALANCE SHEETS

                                                November 30,       August 31,
                                                     2008              2008
                                               (Unaudited)         (Audited)

    ASSETS

    Current assets
     Cash and cash equivalents                  $7,277,532        $5,758,479
     Accounts receivable, net of allowance
      of $43 (August 31, 2008 - $10,474)         3,293,534         5,405,861
     Inventory, net of allowance of
      $100,000 (August 31, 2008 - $100,000)      8,332,732         8,068,284
     Prepaid expenses                               91,986           138,957
     Prepaid income taxes                                -            13,753

       Total current assets                     18,995,784        19,385,334

    Property, plant and equipment, net           1,814,000         1,861,652

    Intangible assets, net                         720,676           740,382

    Deferred income taxes                          204,810           192,870

    Total assets                               $21,735,270       $22,180,238

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities
     Accounts payable                           $1,183,458        $1,585,844
     Accrued liabilities                           729,852         1,245,154
     Accrued income taxes                          195,875                 -
     Current portion of long term
      liabilities                                  368,931           367,807

       Total current liabilities                 2,478,116         3,198,805

    Long term liabilities
     Promissory note                             1,933,250         1,951,004
     Note payable                                        -                 -

    	  Total long term liabilities                1,933,250         1,951,004

    Total liabilities                            4,411,366         5,149,809

    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
      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                          14,466,988        14,173,513
    Total stockholders' equity                  17,323,904        17,030,429

    Total liabilities and stockholders' equity $21,735,270       $22,180,238



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

                                                  Three Month Periods Ended
    	                                                 2008              2007

    CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                                    $293,475          $373,915
    Items not involving an outlay of cash:
     Depreciation and amortization                  79,401            79,006
     Deferred income taxes                         (11,940)                -
    Changes in non-cash working capital items:
     Decrease in accounts receivable             2,112,327         1,588,468
     (Increase) decrease in inventory             (264,448)        1,668,017
     Decrease in prepaid expenses                   46,970            48,816
     Decrease in accounts payable and
      accrued liabilities                         (917,688)       (1,142,902)
     Increase in accrued income taxes              209,629           243,750

    Net cash provided by operating activities    1,547,726         2,859,070

    CASH FLOWS FROM INVESTING ACTIVITIES
     Purchase of property, plant and equipment     (12,043)          (30,837)

    Net cash used in investing activities          (12,043)          (30,837)

    CASH FLOWS FROM FINANCING ACTIVITIES
    Repayment of bank indebtedness                       -            (1,059)
    Promissory note                                (16,630)          (15,582)
    Proceeds from issuance of stock                      -            56,097

    Net cash provided by (used in)
     financing activities                          (16,630)           39,456

    Net increase in cash and cash
     equivalents                                 1,519,053         2,867,689

    Cash and cash equivalents, beginning
     of period                                   5,758,479           257,131

    Cash and cash equivalents, end
     of period                                  $7,277,532        $3,124,820


    JEWETT-CAMERON TRADING COMPANY LTD.
    SEGMENT INFORMATION
    (Unaudited)

    Following is a summary of segment information for the three months ended
November 30:

    	                                                  2008             2007
    Sales to unaffiliated customers:
    Industrial wood products                    $3,281,558        $8,118,301
    Lawn, garden, pet and other                  5,526,956         3,502,370
    Seed processing and sales                    1,710,648         2,117,708
    Industrial tools                               262,901           266,951
                                               $10,782,063       $14,005,330

    Income (loss) from operations:
    Industrial wood products                     $(101,707)         $420,076
    Lawn, garden, pet and other                    513,329           145,250
    Seed processing and sales                      119,732           103,068
    Industrial tools                                17,295            12,969
    Unallocated overhead                           (27,594)          (21,490)
                                                  $521,055          $659,873

    Certain reclassifications have been made to the prior years' financial
statements to conform to the classifications used in the current year.
    





For further information:

For further information: Don Boone, President & CEO of Jewett-Cameron
Trading Company Ltd., (503) 647-0110

Organization Profile

Jewett-Cameron Trading Company Ltd.

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