Jewettcameron Trading Company has a market cap of $16.5 million; its shares were traded at around $6.9 with a P/E ratio of 10.5 and P/S ratio of 0.4. Jewettcameron Trading Company had an annual average earning growth of 41.9% over the past 5 years.
This is the annual revenues and earnings per share of JCTCF over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of JCTCF.
Highlight of Business Operations:Sales at Greenwood were $2,419,765 for the three months ended November 30, 2009, which was a decrease of $861,793 or 26% compared to sales of $3,281,558 for the three months ended November 30, 2008. Sales to boat manufacturers represented approximately 24% of Greenwoods total sales for the year ended August 31, 2009, and demand from these kinds of customers has been severely affected by weak economic conditions. Boat manufacturers continue to work down excess inventory accumulated over the past two years, and until such point, we do not foresee an industry recovery. We continue to develop a readiness to participate when the market rebounds. In the meantime, we have been searching for alternative uses for our industrial wood products and developing new customer relationships. As a result, operating income before taxes at Greenwood was ($10,812) for the three months ended November 30, 2009, which was an increase of $109,537 from the ($120,349) recorded in the same period a year ago.
Sales at JCLC were $3,651,100 for the three months ended November 30, 2009, which was a decrease of $1,875,856, or 34%, compared to sales of $5,526,956 for the three months ended November 30, 2008. Operating income was $640,591, which was an increase of $100,907 compared to the income of $539,684 from the year-ago quarter. After considering the reversal of the $313,000 inventory reserve held on behalf of the subsidiary JCSC in November 2009, the percentage decline in JCLCs adjusted operating income was approximately the same as the percentage decline in sales for the quarter, as gross margins remained relatively steady. Overall the operating results of JCLC are seasonal with the first two quarters of the fiscal year being much slower than the final two quarters of the fiscal year.
Sales at JCSC were $864,161 for the three months ended November 30, 2009, which was a decrease of $846,487 or 49% compared to $1,710,648 for the three months ended November 30, 2008. Grass seed demand has fallen due to the overall economy and substantially lower new home construction rates in North America. In November 2009, JCSC realized a one-time $463,498 inventory write-down due to the significant decrease in market value. Operating loss for the current quarter was ($481,506), a decrease of $579,016 from the operating income of $97,510 recorded by JCSC in the prior years quarter.
Sales at MSI were $439,900 for the three months ended November 30, 2009, which was an increase of $176,999 or 67% compared to $262,901 for the three months ended November 30, 2008. Operating income was $18,323, an increase of $12,100 compared to the operating income of $6,223 recorded in the comparative quarter in the prior fiscal year.
Operating expenses decreased by $213,712 from $1,695,410 for the three month period ended November 30, 2008 to $1,481,698 for the three month period ended November 30, 2009. Selling, General and Administrative Expenses decreased by $13,410 from $554,125 to $540,715. Wages and Employee Benefits declined by $181,597 to $880,287 from $1,061,884, as the Company has reduced total employment by approximately 10%. Depreciation and Amortization decreased by $18,705, from $79,401 to $60,696.
As of November 30, 2009 the Company had working capital of $16,037,108, which represented an increase of $220,218 compared to working capital of $15,816,890 as of August 31, 2009. The largest differences regarding this change in working capital were a $820,012 increase in cash and cash equivalents, a $1,390,869 decrease in accounts receivable, a $149,420 decrease in inventory, a $756,368 decrease in accounts payable, and a $151,191 decrease in accrued liabilities.
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