Jewett-Cameron Reports Strong Second Quarter Results with EPS Up 50% from the Prior Year



    NORTH PLAINS, Ore., March 26 /CNW/ -- Jewett-Cameron Trading Company Ltd.
(Nasdaq:   JCTCF; TSX: JCT) today reported financial results for the second
quarter and six months ended February 29, 2008.
    Sales for the second quarter of 2008 totaled $15.1 million compared to
sales of $16.4 million for the second quarter of 2007.  The company reported
net income of $513 thousand or $.21 per diluted share compared to net income
of $321 thousand or $.14 per diluted share in the same period a year ago.  EPS
was up 50% vs. the year ago period.
    For the six months ended February 29, 2008 Jewett-Cameron reported sales
of $29.3 million compared to $31.9 million for the same period a year ago. Net
income for the six months of fiscal 2008 was $887 thousand or $.37 per diluted
share compared to net income of $609 thousand or $.26 per diluted share in the
prior fiscal year.  However, the year ago period included an inventory reserve
reversal that increased pre-tax income by $150,000.  If this item is excluded,
then earnings per diluted share in that period would have been $.22, and the
current year reflects a 68% increase over that level of EPS in the prior year.
    The sales decline in the quarter and the six month periods reflects a
decrease in sales in our industrial wood segment that was only partially
offset by sales increases in our other business segments.  However, income was
up significantly based primarily on margin improvement and operating expense
reduction in the industrial wood segment coupled with a large increase in
sales of specialty metal products in our lawn, garden and pet segment.  These
metal products have a higher gross margin than our other sales.
    
    Outlook
    
    We continue to believe that the current fiscal year can be a record year
in terms of earnings.  Results in the third and fourth quarters should be
significantly better than the first two quarters of the current fiscal year
based on very positive order trends for our specialty metal products coupled
with a normal seasonal pickup in activity in our lawn, garden and pet segment.
    
    CEO Comment
    
    "We are very pleased with our results so far this year," said Don Boone,
CEO of Jewett-Cameron.  "We are particularly encouraged with the continued
rapid growth in demand for our specialty metal products, which include our
gate support systems, perimeter fencing, and dog kennels.  Also, our financial
condition is as strong as it has ever been."
    
    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 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.
    
    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, uncertainties, 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
    (Expressed in U.S. Dollars)
    (Prepared by Management)
    (Unaudited)
    

    
                           Three Month Periods to      Six Month Periods to
                            the End of February        the End of February
                             2008          2007          2008         2007
    

    SALES                $15,083,231  $16,378,530    $29,346,390  $31,919,499

    COST OF SALES         12,348,468   13,868,269     24,087,602   26,958,885

    GROSS PROFIT           2,734,763    2,510,261      5,258,788    4,960,614

    
    OPERATING EXPENSES
      Selling, general
       and administrative
       expenses              731,182      793,860      1,441,128    1,535,670
      Depreciation and
       amortization           78,089       81,442        157,095      149,292
      Wages and employee
       benefits            1,037,088    1,031,959      2,112,287    2,138,241
                           1,846,359    1,907,261      3,710,510    3,823,203
    

    
      Income from
       operations            888,404      603,000      1,548,278    1,137,411
    

    
    OTHER ITEMS
      Gain (loss) on sale
       of property, plant
       and equipment            (385)           -           (385)           -
      Interest and other
       income                    146        3,807            146        3,863
      Interest expense       (39,217)     (72,459)       (81,426)    (125,599)
                             (39,456)     (68,652)       (81,665)     121,736
    

    
      Income before income
       taxes                 848,948      534,348      1,466,613    1,015,675
    

    Income taxes           335,750      213,000        579,500      406,444

    Net income          $  513,198   $  321,348      $ 887,113     $609,231

    
      Basic earnings per
       common share       $      .21   $      .14      $     .37     $    .26
    

    
      Diluted earnings per
       common share       $      .21   $      .14      $     .37     $    .26
    

    
      Weighted average
       number of common
       shares outstanding:
         Basic             2,390,977    2,377,289      2,389,618    2,377,289
         Diluted           2,391,589    2,377,289      2,391,643    2,379,552
    



    
    JEWETT-CAMERON TRADING COMPANY LTD.
    CONSOLIDATED BALANCE SHEETS
    (Expressed in U.S. Dollars)
    (Prepared by Management)
    

    
                                         Februray 29,        August 31,
                                                 2008              2007
                                          (Unaudited)
    

    ASSETS

    
    Current assets
      Cash and cash equivalents         $     603,185     $     257,131
      Accounts receivable, net
       of allowances of $1,637
       (August 31, 2007 - $15,396)          7,428,905         6,445,284
      Inventory (note 3)                    9,808,359        10,878,543
      Prepaid expenses                        283,592           202,155
    

    Total current assets                 18,124,041        17,783,113

    
    Property, plant and
     equipment, net (note 4)                1,945,001         2,033,671
    

    Intangible assets, net (note 5)           775,959           815,132

    Deferred income taxes (note 6)            119,700           119,700

    Total assets                        $  20,964,701     $  20,751,616



    
    JEWETT-CAMERON TRADING COMPANY LTD.
    CONSOLIDATED BALANCE SHEETS
    (Expressed in U.S. Dollars)
    (Prepared by Management)
    

    
                                            February 29,       August 31,
                                                    2008             2007
                                             (Unaudited)
    

    Continued

    LIABILITIES AND STOCKHOLDERS' EQUITY

    
    Current liabilities
      Bank indebtedness (note 7)             $         -       $    1,059
      Account payable                          2,326,029        2,106,051
      Accrued liabilities                      1,272,476        1,424,610
      Accrued income taxes payable
       (prepayment)                             (291,743)         173,757
      Current portion of promissory note         364,187          363,896
    

    Total current liabilities                3,670,949        4,069,373

    
    Long term liabilities
      Promissory note (note 8)                 1,986,345        2,018,046
      Note payable (note 8)                            -          300,000
    

    Total long term liabilities                1,986,345        2,318,046

    Total liabilities                          5,657,294        6,387,419

    
    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 2,390,977 common shares
         (August 31, 2007 - 2,384,792)         2,256,111        2,200,014
        Additional paid-in capital               600,804          600,804
        Retained earnings                     12,450,492       11,563,379
    

    Total stockholders' equity            15,307,407       14,364,197

    
        Total liabilities and
         stockholders' equity                $20,964,701      $20,751,616
    



    
    JEWETT-CAMERON TRADING COMPANY LTD.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Expressed in U.S. Dollars)
    (Prepared by Management)
    (Unaudited)
    

    
                                                  Six Month Periods to
                                                  the End of February
    

    2008              2007

    
    CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                             $   887,113       $   609,231
    Items not involving an outlay of cash:
      Depreciation and amortization            157,095           149,292
      Gain (loss) on sale of property,
       plant and equipment                         385                 -
      Deferred income taxes                          -              (400)
      Stock based compensation expense               -            26,389
    Changes in non-cash working capital items:
      Increase in accounts receivable         (983,621)         (313,694)
      (Increase) decrease in inventory       1,070,184        (1,105,636)
      Increase in prepaid expenses             (81,436)         (182,814)
      Increase in income taxes receivable            -          (126,765)
      Increase (decrease) in accounts
       payable and accrued liabilities          67,843          (714,113)
      Decrease in accrued income taxes        (465,500)          (40,871)
    

    
    Net cash provided by (used in)
     operating activities                      652,063        (1,699,381)
    

    
    CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds (repayment) of bank
     indebtedness                               (1,059)        2,448,266
    Promissory note                            (31,409)          (29,802)
    Note payable                              (300,000)          600,000
    Proceeds from issuance of stock             56,097                 -
    

    
    Net cash provided by (used in)
     financing activities                     (276,371)        3,018,464
    

    
    CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of property,
     plant and equipment                       (29,638)          (32,948)
    Purchase of intangible assets
     and other                                       -          (855,000)
    

    
    Net cash provided by (used in)
     investing activities                      (29,638)         (887,948)
    

    
    Net increase (decrease) in cash
     and cash equivalents                      346,054           431,135
    

    
    Cash and cash equivalents,
     beginning of period                       257,131           146,810
    

    
    Cash and cash equivalents,
     end of period                         $   603,185       $   577,945
    



    
    Following is a summary of segment information for the six month periods to
    the end of February:
    

    
                                                  2008           2007
    Sales to unaffiliated customers:
    Industrial wood products                    $ 15,368,770   $ 21,125,358
    Lawn, garden, pet and other                    9,041,561      6,316,941
    Seed processing and sales                      4,392,509      4,000,874
    Industrial tools                                 543,550        476,326
                                                $ 29,346,390   $ 31,919,499
    

    
    Income (loss) from operations:
    Industrial wood products                    $    782,261   $    442,369
    Lawn, garden, pet and other                      608,066        670,713
    Seed processing and sales                        184,114         81,383
    Industrial tools                                  28,790         16,759
    Unallocated overhead                             (54,953)       (73,813)
                                                $  1,548,278   $  1,137,411
    


    Contact: Don Boone, President & CEO, (503) 647-0110




For further information:

For further information: Don Boone, President & CEO of Jewett-Cameron 
Trading Company Ltd., +1-503-647-0110 Web Site: http://www.jewettcameron.com

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Jewett-Cameron Trading Company Ltd.

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