JewettCameron Trading Company Reports Operating Results (10-Q)
Jewettcameron Trading Company has a market cap of $16.54 million; its shares were traded at around $6.916 with a P/E ratio of 12.57 and P/S ratio of 0.39. Jewettcameron Trading Company had an annual average earning growth of 19.7% over the past 10 years.
Highlight of Business Operations: Sales at Greenwood were $1,890,565 for the three months ended May 31, 2010 compared to sales of $2,696,711 for the three months ended May 31, 2009, which was a decrease of $806,146 or 30%. Continued weakness in the boat manufacturing industry has resulted in lower demand for Greenwoods industrial wood products, although the Company is developing new industry relationships in other industries. Operating income at Greenwood was ($209,178) for the three months ended May 31, 2010, which was a decline of ($105,767) from the loss of ($103,411) recorded in the same period a year ago. This primarily reflects the effect of fixed costs at the relatively low level of sales during the period.
Sales at JCLC were $8,622,982 for the three months ended May 31, 2010, compared to sales of $7,783,371 for the three months ended May 31, 2009, which was an increase of $839,611, or 11%. Operating income was $1,373,206, which was an increase of $298,058 compared to income of $1,075,148 in the year-ago quarter. 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
Operating expenses decreased by $10,362 to $1,554,601 in the three month period ended May 31, 2010 from $1,564,963 for the three month period ended May 31, 2009. Selling, General and Administrative Expenses increased by $19,217 from $535,418 to $554,635, while Wages and Employee Benefits declined by a similar amount of $18,311 to $930,501 from $948,812. Depreciation and Amortization declined by $11,268, from $80,733 to $69,465.
Sales at JCSC were $3,601,377 for the nine months ended May 31, 2010 compared to sales of $3,153,539 for the nine months ended May 31, 2009, which was an increase of $447,838, or 14.2%. The increase is due to successful sales efforts of existing products to new customers. Operating income for the current nine month period was ($249,115), a decrease of ($300,946) from the operating income $51,831 recorded in the prior years nine month period. The current periods results were negatively affected by a one-time $463,498 inventory write-down due to the significant decrease in market value which was recorded in November 2009.
Operating expenses decreased by $413,891, or 8.5%, to $4,445,809 for the nine month period ended May 31, 2010 from $4,859,700 for the nine month period ended May 31, 2009. The decrease was largely due to a decline of $393,516 in Wages and Employee Benefits, which fell to $2,628,063 from $3,021,579. Depreciation and Amortization fell to $203,084 from $239,121, and Selling, General and Administrative expenses rose slightly to $1,614,662 from the $1,599,000 recorded in the nine month period ended May 31, 2009.
As of May 31, 2010 the Company had working capital of $16,967,955, which represented an increase of $1,151,065 compared to working capital of $15,816,890 as of August 31, 2009. The largest differences regarding this change in working capital were a $1,593,782 increase in cash and cash equivalents, a $633,479 increase in accounts receivable, and a $1,067,948 decrease in inventory. Other changes include a $11,841 decrease in prepaid expenses, a $101,640 increase in prepaid income taxes, a $242,401 decrease in accounts payable, and a $364,130 increase in accrued liabilities.
Read the The complete Report