NORTH PLAINS, Ore.,
April 14, 2020 /PRNewswire/ --
Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported
financial results for the second quarter and six month periods of
fiscal 2020 ended February 29,
2020.
Sales for the second quarter of fiscal 2020 totaled $7.62 million compared to sales of $7.86 million for the second quarter of fiscal
2019. Loss from operations was ($163,020) compared to income from operations of
$57,625 for the quarter ended
February 28, 2019. Net loss was
($174,262), or ($0.05) per share, compared to net income of
$119,629, or $0.03 per share, in the year-ago quarter.
For the six months ended February 29,
2020, sales totaled $14.7
million compared to sales of $16.9
million for the six months ended February 28, 2019. Loss from operations was
($173,894) compared to income from
operations of $536,634. Net loss was
($180,884), or ($0.05) per share, compared to net income of
$469,323, or $0.11 per share, in the first six months of
fiscal 2019.
"Although COVID-19 began to affect our operations in January,"
said CEO Charlie Hopewell, "We have
adjusted our work processes to comply with the State of Oregon's directives. Many of our
employees are working from home, while others are on split shifts.
We continue operations with our full staff with no lay-offs or
reduced hours. Even though the outlook for the rest of fiscal 2020
is uncertain due to the COVID-19 situation, demand for our pet and
fencing products so far in the 3rd fiscal quarter has
been consistent with historic levels."
As of February 29, 2020, the
Company's cash position was approximately $3.875 million, and there was no borrowing
against its $3.0 million line of
credit. The Company has historically utilized its cash position by
implementing share repurchase programs as an effective method of
enhancing shareholder value. During the period ended February 29, 2020, the Company privately
repurchased for cancelation a total of 490,120 common shares from
two large shareholders, including a current officer and director of
Jewett-Cameron. The shares were repurchased at a price of
$7.89 per share, calculated as the
Volume Weighted Average Price (VWAP) of all the shares traded on
NASDAQ during the first quarter of fiscal 2020. The total
cost of the share repurchases was $3,867,046.
Jewett-Cameron Trading Company is a holding company that,
through its subsidiaries (Jewett-Cameron Companies), operate out of
facilities located in North Plains,
Oregon. Those businesses consist of the manufacturing and
distribution of patented and patent pending specialty metal
products, wholesale distribution of wood products, seed processing
and sales, and sales of industrial tools and clamps. The Company's
brands include Lucky Dog, Animal House and AKC licensed products in
the expanding pet market; fencing products under the
Adjust-A-Gates, Fit-Right, Perimeter Patrol, and INFINITY Euro
fence systems brands; Early Start, Spring
Gardner, and Weatherguard for greenhouses; and TrueShade for
patio umbrellas, furniture covers and canopies. Additional
information about the Company and its products can be found the
Company's website at www.jewettcameron.com.
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.
Contact: Charlie Hopewell,
President & CEO, (503) 647-0110
JEWETT-CAMERON
TRADING COMPANY LTD.
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CONSOLIDATED BALANCE
SHEETS
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|
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(Expressed in U.S.
Dollars)
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(Prepared by
Management)
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|
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(Unaudited)
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February
29, 2020
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August
31, 2019
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ASSETS
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|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,875,531
|
|
$
|
9,652,310
|
Accounts
receivable, net of allowance
of $Nil (August
31, 2019 - $Nil)
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|
2,700,664
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|
|
2,835,952
|
Inventory, net
of allowance
of $32,538
(August 31, 2019 - $119,357)
|
|
7,248,548
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|
|
6,377,805
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Note
receivable
|
|
897
|
|
|
1,197
|
Prepaid
expenses
|
|
867,792
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|
|
393,539
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Prepaid income
taxes
|
|
370,002
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|
|
223,420
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|
|
|
|
|
|
Total current
assets
|
|
15,063,434
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|
|
19,484,223
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|
|
|
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|
Property, plant and
equipment, net
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|
2,775,867
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|
|
2,727,406
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Intangible assets,
net
|
|
779
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|
|
3,048
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|
|
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Total
assets
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$
|
17,840,080
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$
|
22,214,677
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Current
liabilities
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|
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Accounts
payable
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$
|
449,586
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|
$
|
410,027
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Accrued
liabilities
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|
921,762
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|
|
1,312,580
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|
Total current
liabilities
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|
1,371,348
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1,722,607
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Deferred tax
liability
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|
85,796
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|
61,204
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|
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Total
liabilities
|
|
1,457,144
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|
1,783,811
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Stockholders'
equity
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Capital
stock
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Authorized
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21,567,564 common
shares, without par value
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10,000,000 preferred
shares, without par value
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Issued
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3,481,162
common shares (August 31, 2019 – 3,971,282)
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821,284
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|
936,903
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Additional
paid-in capital
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|
618,707
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618,707
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Retained
earnings
|
|
14,942,945
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18,875,256
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Total
stockholders' equity
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16,382,936
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20,430,866
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Total
liabilities and stockholders' equity
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$
|
17,840,080
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|
$
|
22,214,677
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JEWETT-CAMERON
TRADING COMPANY LTD.
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CONSOLIDATED
STATEMENTS OF OPERATIONS
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(Expressed in U.S.
Dollars)
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(Prepared by
Management)
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(Unaudited)
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Three
Month Periods at
the end of
February
|
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Six
Month Periods at
the end of
February
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2020
|
2019
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2020
|
2019
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SALES
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$
|
7,621,927
|
$
|
7,857,175
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$
|
14,677,105
|
$
|
16,923,275
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|
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COST OF
SALES
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|
5,616,672
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6,095,887
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10,623,507
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12,852,901
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GROSS
PROFIT
|
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2,005,255
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1,761,288
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4,053,598
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4,070,374
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OPERATING
EXPENSES
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Selling,
general and administrative expenses
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763,910
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405,888
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1,412,920
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|
962,036
|
Depreciation
and amortization
|
|
58,063
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|
45,401
|
|
|
106,211
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|
96,271
|
Wages and
employee benefits
|
|
1,346,302
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|
1,252,374
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|
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2,708,361
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|
2,475,433
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|
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2,168,275
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|
1,703,663
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4,227,492
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3,533,740
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(Loss) income from
operations
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(163,020)
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57,625
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(173,894)
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536,634
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OTHER
ITEMS
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Gain on
sale of property, plant and equipment
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|
400
|
|
105,365
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400
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|
105,365
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Interest
and other income
|
|
6,584
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|
9,184
|
|
|
18,198
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|
26,335
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|
|
6,984
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|
114,549
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|
|
18,598
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|
131,700
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(Loss) income before
income taxes
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(156,036)
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172,174
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(155,296)
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668,334
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Income tax
expense
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(18,226)
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|
(52,545)
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(25,588)
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(199,011)
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Net (loss)
income
|
$
|
(174,262)
|
$
|
119,629
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|
$
|
(180,884)
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$
|
469,323
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Basic earnings per
common share
|
$
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(0.05)
|
$
|
0.03
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$
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(0.05)
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$
|
0.11
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Diluted earnings
per common share
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$
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(0.05)
|
$
|
0.03
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$
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(0.05)
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$
|
0.11
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|
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Weighted average
number of common shares outstanding:
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Basic
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3,562,630
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4,218,348
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|
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3,811,956
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|
4,218,672
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Diluted
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3,562,630
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|
4,218,348
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|
|
3,811,956
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|
4,218,672
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JEWETT-CAMERON
TRADING COMPANY LTD.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Expressed in U.S.
Dollars)
|
(Prepared by
Management)
|
(Unaudited)
|
|
|
Six Month
Period at the end of
February,
|
|
2020
|
|
2019
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net (loss)
income
|
$
|
(180,884)
|
$
|
469,323
|
Items not involving
an outlay of cash:
|
|
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|
Depreciation
and amortization
|
|
106,211
|
|
96,271
|
(Gain) on sale
of property, plant and equipment
|
|
(400)
|
|
(105,365)
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Deferred
income taxes
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|
24,592
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|
(1,967)
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Changes in non-cash
working capital items:
|
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|
|
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Decrease in
accounts receivable
|
|
135,288
|
|
955,372
|
(Increase) in
inventory
|
|
(870,743)
|
|
(1,902,410)
|
Decrease in
note receivable
|
|
300
|
|
2,203
|
(Increase) in
prepaid expenses
|
|
(474,253)
|
|
(218,265)
|
(Increase) in
prepaid income taxes
|
|
(146,582)
|
|
(194,522)
|
(Decrease) in
accounts payable and
accrued
liabilities
|
|
(351,259)
|
|
(858,868)
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(1,757,730)
|
|
(1,758,228)
|
|
|
|
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CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Purchase of
property, plant and equipment
|
|
(152,403)
|
|
-
|
Proceeds from
sale of property, plant and
equipment
|
|
400
|
|
324,674
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
(152,003)
|
|
324,674
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Redemption of
common stock
|
|
(3,867,046)
|
|
(957,305)
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(3,867,046)
|
|
(957,305)
|
|
|
|
|
|
Net decrease in
cash
|
|
(5,776,779)
|
|
(2,390,859)
|
|
|
|
|
|
Cash, beginning of
period
|
|
9,652,310
|
|
6,097,463
|
|
|
|
|
|
Cash, end of
period
|
$
|
3,875,531
|
$
|
3,706,604
|
View original
content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-2nd-quarter-financial-results-301040488.html
SOURCE Jewett-Cameron Trading Company Ltd.