Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2016 | Jul. 14, 2016 | |
Document and Entity Information: | ||
Entity Registrant Name | Jewett Cameron Trading Co Ltd | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2016 | |
Amendment Flag | false | |
Entity Central Index Key | 885,307 | |
Current Fiscal Year End Date | --08-31 | |
Entity Common Stock, Shares Outstanding | 2,413,446 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Incorporation, State Country Name | British Columbia | |
Entity Incorporation, Date of Incorporation | Jul. 8, 1987 | |
Trading Symbol | jctcf |
JEWETT-CAMERON TRADING COMPANY
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED BALANCE SHEETS (Prepared by Management) (Unaudited) - USD ($) | May 31, 2016 | Aug. 31, 2015 | ||
Current assets | ||||
Cash | $ 6,285,575 | [1] | $ 4,416,297 | |
Accounts receivable, net of allowance of $Nil (August 31, 2015 - $Nil) | 4,382,438 | 3,688,247 | ||
Inventory, net of allowance of $189,761 (August 31, 2015 - $120,824) | [2] | 7,297,894 | 8,351,575 | |
Note receivable | 1,310 | |||
Prepaid expenses | 780,708 | 719,459 | ||
Prepaid income taxes | 26,570 | |||
Total current assets | 18,746,615 | 17,203,458 | ||
Property, plant and equipment, net | [3] | 2,138,800 | 2,231,711 | |
Intangible assets, net | [4] | 168,720 | 223,250 | |
Total assets | 21,054,135 | 19,658,419 | ||
Current liabilities | ||||
Accounts payable | [5] | 1,304,549 | 984,955 | |
Litigation reserve | 90,671 | |||
Accrued liabilities | 1,394,191 | 1,024,358 | ||
Total current liabilities | 2,698,740 | 2,099,984 | ||
Deferred tax liability | [6] | 4,203 | 34,300 | |
Total liabilities | 2,702,943 | 2,134,284 | ||
Contingent liabilities and commitments | [7] | 0 | 0 | |
Stockholders' equity | ||||
Capital stock authorized: 21,567,564 common shares, without par value, 10,000,000 preferred shares, without par value. Issued 2,413,446 common shares (August 31, 2015 - 2,476,832) | [8] | 1,138,590 | 1,168,712 | |
Additional paid-in capital | 600,804 | 600,804 | ||
Retained earnings | 16,611,798 | 15,754,619 | ||
Total stockholders' equity | 18,351,192 | 17,524,135 | ||
Total liabilities and stockholders' equity | $ 21,054,135 | $ 19,658,419 | ||
[1] | Supplemental disclosure with respect to cash flows, note 15 | |||
[2] | Note 3 | |||
[3] | Note 4 | |||
[4] | Note 5 | |||
[5] | Note 12 (a) | |||
[6] | Note 6 | |||
[7] | Note 12 | |||
[8] | Note 8 |
Statement of Financial Position
Statement of Financial Position - Parenthetical - USD ($) | May 31, 2016 | Aug. 31, 2015 |
Statement of financial position | ||
Preferred Stock, Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 21,567,564 | 21,567,564 |
Common Stock, Shares Issued | 2,413,446 | 2,476,832 |
Common Stock, Shares Outstanding | 2,413,446 | 2,476,832 |
Accounts Receivable allowance | $ 0 | $ 0 |
Inventory allowance | $ 189,761 | $ 120,824 |
JEWETT-CAMERON TRADING COMPANY4
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Prepared by Management) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Income statement | ||||
SALES | $ 14,458,713 | $ 13,289,408 | $ 37,588,354 | $ 30,755,429 |
COST OF SALES | 11,281,973 | 11,047,607 | 29,996,180 | 24,741,485 |
GROSS PROFIT | 3,176,740 | 2,241,801 | 7,592,174 | 6,013,944 |
OPERATING EXPENSES | ||||
Selling, general and administrative expenses | 542,581 | 465,864 | 1,616,796 | 1,438,687 |
Depreciation and amortization | 82,978 | 71,211 | 226,961 | 210,894 |
Wages and employee benefits | 1,046,229 | 925,386 | 3,017,643 | 2,588,420 |
TOTAL OPERATING EXPENSES | (1,671,788) | (1,462,461) | (4,861,400) | (4,238,001) |
Income from operations | 1,504,952 | 779,340 | 2,730,774 | 1,775,943 |
OTHER ITEMS | ||||
Gain on sale of property, plant and equipment | 5,600 | |||
Interest and other income | 2,978 | 8,534 | 13,538 | 22,617 |
Interest expense | (658) | (27) | (658) | |
Litigation expense (Note 12(a)) | (115,990) | |||
TOTAL OTHER ITEMS | 2,978 | 7,876 | (96,879) | 21,959 |
Income before income taxes | 1,507,930 | 787,216 | 2,633,895 | 1,797,902 |
Income tax expense | (599,200) | (326,116) | (1,060,960) | (725,455) |
Net income | $ 908,730 | $ 461,100 | $ 1,572,935 | $ 1,072,447 |
Basic earnings per common share | $ 0.37 | $ 0.18 | $ 0.64 | $ 0.41 |
Diluted earnings per common share | $ 0.37 | $ 0.18 | $ 0.64 | $ 0.41 |
Weighted average number of common shares outstanding: Basic | 2,458,170 | 2,561,702 | 2,470,566 | 2,612,199 |
Weighted average number of common shares outstanding: Diluted | 2,458,170 | 2,561,702 | 2,470,566 | 2,612,199 |
JEWETT-CAMERON TRADING COMPANY5
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Prepared by Management) (Unaudited) - USD ($) | Number of Shares | Amount | Additional paid in capital | Retained earnings | Total | |
Beginning balance at Aug. 31, 2013 | $ 1,479,246 | $ 600,804 | $ 18,517,971 | $ 20,598,021 | ||
Shares outstanding at Aug. 31, 2013 | 3,134,936 | |||||
Shares repurchased and cancelled, value | [1] | (203,045) | (4,054,723) | (4,257,768) | ||
Shares repurchased and cancelled, shares | [1] | (430,306) | ||||
Net income | 1,858,453 | 1,858,453 | ||||
Ending balance at Aug. 31, 2014 | 1,276,201 | 600,804 | 16,321,701 | 18,198,706 | ||
Shares outstanding at Aug. 31, 2014 | 2,704,630 | |||||
Shares repurchased and cancelled, value | [1] | (107,489) | (2,341,053) | (2,448,542) | ||
Shares repurchased and cancelled, shares | [1] | (227,798) | ||||
Net income | 1,773,971 | 1,773,971 | ||||
Ending balance at Aug. 31, 2015 | 1,168,712 | 600,804 | 15,754,619 | 17,524,135 | ||
Shares outstanding at Aug. 31, 2015 | 2,476,832 | |||||
Shares repurchased and cancelled, value | [1] | (30,122) | (715,756) | (745,878) | ||
Shares repurchased and cancelled, shares | [1] | (63,386) | ||||
Net income | 1,572,935 | 1,572,935 | ||||
Ending balance at May. 31, 2016 | $ 1,138,590 | $ 600,804 | $ 16,611,798 | $ 18,351,192 | ||
Shares outstanding at May. 31, 2016 | 2,413,446 | |||||
[1] | Note 9 |
JEWETT-CAMERON TRADING COMPANY6
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Prepared by Management) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | |||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income | $ 908,730 | $ 461,100 | $ 1,572,935 | $ 1,072,447 | |
Items not involving an outlay of cash: | |||||
Depreciation and amortization | 82,978 | 71,211 | 226,961 | 210,894 | |
Gain on sale of property, plant and equipment | (5,600) | ||||
Deferred income tax expense (recovery) | (33,601) | (2,163) | (30,097) | (4,872) | |
Interest income on litigation | (6,734) | (6,661) | (19,983) | ||
Decrease in litigation reserve | (84,010) | ||||
Changes in non-cash working capital items: | |||||
(Increase) decrease in accounts receivable | (597,843) | 107,980 | (694,191) | (2,483,168) | |
Decrease in inventory | 213,122 | 2,485,712 | 1,053,681 | 536,845 | |
(Increase) decrease in note receivable | 275 | 1,310 | 13,575 | ||
(Increase) decrease in prepaid expenses | (271,860) | 104,098 | (61,249) | 41,194 | |
(Increase) decrease in prepaid income taxes | 159,031 | 19,133 | 26,570 | 350,863 | |
Increase (decrease) in accounts payable and accrued liabilities | 974,527 | 631,547 | 689,427 | 270,805 | |
Net cash provided by (used in) operating activities | 1,435,084 | 3,872,159 | 2,689,076 | (11,400) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of property, plant and equipment | (31,618) | (70,543) | (79,520) | (85,240) | |
Proceeds from sale of property, plant and equipment | 5,600 | ||||
Net cash used in investing activities | (31,618) | (70,543) | (73,920) | (85,240) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Proceeds from bank indebtedness | 875,386 | ||||
Repayment of bank indebtedness | (875,386) | (875,386) | |||
Redemption of common stock | (745,878) | (1,101,574) | (745,878) | (2,394,051) | |
Net cash used in financing activities | (745,878) | (1,976,960) | (745,878) | (2,394,051) | |
Net increase (decrease) in cash | 657,588 | 1,824,656 | 1,869,278 | (2,490,691) | |
Cash, beginning of period | 5,627,987 | 12,193 | 4,416,297 | 4,327,540 | |
Cash, end of period | [1] | $ 6,285,575 | $ 1,836,849 | $ 6,285,575 | $ 1,836,849 |
[1] | Supplemental disclosure with respect to cash flows, note 15 |
1. Nature of Operations
1. Nature of Operations | 9 Months Ended |
May 31, 2016 | |
Notes | |
1. Nature of Operations | 1. NATURE OF OPERATIONS Jewett-Cameron Trading Company Ltd. was incorporated in British Columbia on July 8, 1987 as a holding company for Jewett-Cameron Lumber Corporation (JCLC), incorporated September 1953. Jewett-Cameron Trading Company, Ltd. acquired all the shares of JCLC through a stock-for-stock exchange on July 13, 1987, and at that time JCLC became a wholly owned subsidiary. Effective September 1, 2013, the Company reorganized certain of its subsidiaries. JCLCs name was changed to JC USA Inc. (JC USA), and a new subsidiary, Jewett-Cameron Company (JCC), was incorporated. JC USA has the following wholly owned subsidiaries: MSI-PRO Co. (MSI), incorporated April 1996, Jewett-Cameron Seed Company, (JCSC), incorporated October 2000, Greenwood Products, Inc. (Greenwood), incorporated February 2002, and Jewett-Cameron Company, incorporated September 2013. Jewett-Cameron Trading Company Ltd. and its subsidiaries (the Company) have no significant assets in Canada. The Company, through its subsidiaries, operates out of facilities located in North Plains, Oregon. JCCs business consists of the manufacturing and distribution of specialty metal products and wholesale distribution of wood products to home centers and other retailers located primarily in the United States. Greenwood is a processor and distributor of industrial wood and other specialty building products principally to customers in the marine and transportation industries in the United States. MSI is an importer and distributor of pneumatic air tools and industrial clamps in the United States. JCSC is a processor and distributor of agricultural seeds in the United States. JC USA provides professional and administrative services, including accounting and credit services, to its subsidiary companies. These unaudited financial statements are those of the Company and its wholly owned subsidiaries. In the opinion of management, the accompanying Consolidated Financial Statements of Jewett-Cameron Trading Company Ltd., contain all adjustments, consisting only of normal recurring adjustments, necessary to fairly state its financial position as of May 31, 2016 and August 31, 2015 and its results of operations and cash flows for the three and nine month periods ended May 31, 2016 and May 31, 2015 in accordance with generally accepted accounting principles of the United States of America |
2. Significant Accounting Polic
2. Significant Accounting Policies | 9 Months Ended |
May 31, 2016 | |
Notes | |
2. Significant Accounting Policies | 2. SIGNIFICANT ACCOUNTING POLICIES Generally accepted accounting principles These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America. Principles of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A. All inter-company balances and transactions have been eliminated upon consolidation. Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates incorporated into the Companys consolidated financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowances for doubtful accounts receivable and inventory obsolescence, possible product liability and possible product returns, and litigation contingencies and claims. Actual results could differ from those estimates. Cash and cash equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. At May 31, 2016, cash was $ 6,285,575 compared to $ 4,416,297 at August 31, 2015. At May 31, 2016 and August 31, 2015, there were no cash equivalents. Accounts receivable Trade and other accounts receivable are reported at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable primarily includes trade receivables from customers. The Company estimates doubtful accounts on an item-by-item basis and includes over aged accounts as part of allowance for doubtful accounts, which are generally ones that are ninety days or greater overdue. The Company extends credit to domestic customers and offers discounts for early payment. When extension of credit is not advisable, the Company relies on either prepayment or a letter of credit. Inventory Inventory, which consists primarily of finished goods, is recorded at the lower of cost, based on the average cost method, and market. Market is defined as net realizable value. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a review of inventory components. Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation. The Company provides for depreciation over the estimated life of each asset on a straight-line basis over the following periods: Minimum Maximum Office equipment 3 7 Warehouse equipment 2 10 Buildings 5 30 Intangibles The Companys intangible assets have a finite life and are recorded at cost. The most significant intangible assets are two patents related to gate support systems. Amortization is calculated using the straight-line method over the remaining lives of 21 months and 33 months, respectively, and are reviewed annually for impairment. Asset retirement obligations The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and normal use of the long-lived assets. The Company also records a corresponding asset which is amortized over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). The Company does not have any significant asset retirement obligations. Impairment of long-lived assets and long-lived assets to be disposed of Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell. Currency and foreign exchange These financial statements are expressed in U.S. dollars as the Company's operations are based only in the United States. The Company does not have non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar. Any statement of operations transactions in a foreign currency are translated at rates that approximate those in effect at the time of translation. Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations. Earnings per share Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares. The earnings per share data for the three and nine month periods ended May 31, 2016 and 2015 are as follows: Three Month Period Ended May 31, Nine Month Period Ended May 31, 2016 2015 2016 2015 Net income $ 908,730 $ 461,100 $ 1,572,935 $ 1,072,447 Basic weighted average number of common shares outstanding 2,458,170 2,561,702 2,470,566 2,612,199 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 2,458,170 2,561,702 2,470,566 2,612,199 Comprehensive income The Company has no items of other comprehensive income in any year presented. Therefore, net income presented in the consolidated statements of operations equals comprehensive income. Stock-based compensation All stock-based compensation is recognized as an expense in the financial statements and such costs are measured at the fair value of the award. No options were granted during the nine month period ended May 31, 2016, and there were no options outstanding on May 31, 2016. Financial instruments The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values: Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank and cash held in short term investment accounts. Accounts receivable - the carrying amounts approximate fair value due to the short-term nature and historical collectability. Notes receivable - the carrying amounts approximate fair value due to the short-term nature of the amount. Accounts payable and accrued liabilities - the carrying amount approximates fair value due to the short-term nature of the obligations. The estimated fair values of the Company's financial instruments as of May 31, 2016 and August 31, 2015 follows: May 31, 2016 August 31, 2015 Carrying Fair Carrying Fair Amount Value Amount Value Cash $6,285,575 $6,285,575 $4,416,297 $4,416,297 Accounts receivable, net of allowance 4,382,438 4,382,438 3,688,247 3,688,247 Note receivable - - 1,310 1,310 Accounts payable and accrued liabilities 2,698,740 2,698,740 2,009,313 2,009,313 The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2016, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: May 31, 2016 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 6,285,575 $ 6,285,575 $ $ The fair values of cash are determined through market, observable and corroborated sources. Income taxes A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Shipping and handling costs The Company incurs certain expenses related to preparing, packaging and shipping its products to its customers, mainly third-party transportation fees. All costs related to these activities are included as a component of cost of goods sold in the consolidated statement of operations. All costs billed to the customer are included as revenue in the consolidated statement of operations. Revenue recognition The Company recognizes revenue from the sales of lumber, building supply products, industrial wood products, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured. Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products. Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured. Recent Accounting Pronouncements Management has reviewed the new accounting guidance and determined that there is not a material impact on our financial statements. |
3. Inventory
3. Inventory | 9 Months Ended |
May 31, 2016 | |
Notes | |
3. Inventory | 3. INVENTORY A summary of inventory is as follows: May 31, 2016 August 31, 2015 Wood products and metal products $ 6,621,744 $ 7,376,505 Industrial tools 394,937 525,667 Agricultural seed products 281,213 449,403 $ 7,297,894 $ 8,351,575 |
4. Property, Plant and Equipmen
4. Property, Plant and Equipment | 9 Months Ended |
May 31, 2016 | |
Notes | |
4. Property, Plant and Equipment | 4. PROPERTY, PLANT AND EQUIPMENT A summary of property, plant, and equipment is as follows: May 31, 2016 August 31, 2015 Office equipment 600,805 $ 591,124 Warehouse equipment 1,484,512 1,520,724 Buildings 2,878,849 2,878,849 Land 761,924 761,924 5,726,090 5,752,621 Accumulated depreciation (3,587,290) (3,520,910) Net book value $ 2,138,800 $ 2,231,711 In the event that facts and circumstances indicate that the carrying amount of an asset may not be recoverable and an estimate of future discounted cash flows is less than the carrying amount of the asset, an impairment loss will be recognized. Management's estimates of revenues, operating expenses, and operating capital are subject to certain risks and uncertainties which may affect the recoverability of the Company's investments in its assets. Although management has made its best estimate of these factors based on current conditions, it is possible that changes could occur which could adversely affect management's estimate of the net cash flow expected to be generated from its operations. |
5. Intangible Assets
5. Intangible Assets | 9 Months Ended |
May 31, 2016 | |
Notes | |
5. Intangible Assets | 5. INTANGIBLE ASSETS A summary of intangible assets is as follows: May 31, 2016 August 31, 2015 Patent $ 850,000 $ 850,000 Other 43,655 43,655 893,655 893,655 Accumulated amortization (724,935) (670,405) Net book value $ 168,720 $ 223,250 |
6. Deferred Income Taxes
6. Deferred Income Taxes | 9 Months Ended |
May 31, 2016 | |
Notes | |
6. Deferred Income Taxes | 6. DEFERRED INCOME TAXES Deferred income tax liability as of May 31, 2016 of $ 4,203 (August 31, 2015 $ 34,300 ) reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. |
7. Bank Indebtedness
7. Bank Indebtedness | 9 Months Ended |
May 31, 2016 | |
Notes | |
7. Bank Indebtedness | 7. BANK INDEBTEDNESS There was no bank indebtedness under the Companys $ 3,000,000 line of credit as of May 31, 2016 or August 31, 2015. Bank indebtedness, when it exists, is secured by an assignment of accounts receivable and inventory. I |
8. Capital Stock
8. Capital Stock | 9 Months Ended |
May 31, 2016 | |
Notes | |
8. Capital Stock | 8. CAPITAL STOCK Common Stock Holders of common stock are entitled to one vote for each share held. There are no restrictions that limit the Company's ability to pay dividends on its common stock. The Company has not declared any dividends since incorporation. |
9. Cancellation of Capital Stoc
9. Cancellation of Capital Stock | 9 Months Ended |
May 31, 2016 | |
Notes | |
9. Cancellation of Capital Stock | 9. Treasury stock may be kept based on an acceptable inventory method such as the average cost basis. Upon disposition or cancellation, the treasury stock account is credited for an amount equal to the number of shares cancelled, multiplied by the cost per share and the difference is treated as additional paid-in-capital in excess of stated value. During the 3 rd During the 4 th During the 3 rd During the 1 st |
10. Stock Options
10. Stock Options | 9 Months Ended |
May 31, 2016 | |
Notes | |
10. Stock Options | 10. STOCK OPTIONS The Company has a stock option program under which stock options to purchase securities from the Company can be granted to directors and employees of the Company on terms and conditions acceptable to the regulatory authorities of Canada, notably the Ontario Securities Commission and the British Columbia Securities Commission. Under the stock option program, stock options for up to 10% of the number of issued and outstanding common shares may be granted from time to time, provided that stock options in favor of any one individual may not exceed 5% of the issued and outstanding common shares. No stock option granted under the stock option program is transferable by the optionee other than by will or the laws of descent and distribution, and each stock option is exercisable during the lifetime of the optionee only by such optionee. Generally, no option can be for a term of more than 10 years from the date of the grant. The exercise price of all stock options, granted under the stock option program, must be at least equal to the fair market value (subject to regulated discounts) of such common shares on the date of grant. Options vest at the discretion of the Board of Directors. The Company had no stock options outstanding as of May 31, 2016 and August 31, 2015. |
11. Pension and Profit-sharing
11. Pension and Profit-sharing Plans | 9 Months Ended |
May 31, 2016 | |
Notes | |
11. Pension and Profit-sharing Plans | 11. PENSION AND PROFIT-SHARING PLANS The Company has a deferred compensation 401(k) plan for all employees with at least 12 months of service pending a monthly enrollment time. The plan allows for a non-elective discretionary contribution based on the first $60,000 of eligible compensation. During the second quarter of fiscal 2016 ended February 29, 2016, the Company made an additional 10% contribution for all eligible employees as a one-time compensation bonus. For the nine month periods ended May 31, 2016 and 2015, the 401(k) compensation expense was $ 360,275 and $ 186,345 , respectively. |
12. Contingent Liabilities and
12. Contingent Liabilities and Commitments | 9 Months Ended |
May 31, 2016 | |
Notes | |
12. Contingent Liabilities and Commitments | 12. CONTINGENT LIABILITIES AND COMMITMENTS a) A subsidiary was a plaintiff in a lawsuit filed in Portland, Oregon, entitled, Greenwood Products, Inc. et al v. Greenwood Forest Products, Inc. et al., Case No. 05-02553 (Multnomah County Circuit Court). During fiscal 2002 the Company entered into a purchase agreement to acquire inventory over a 15 month period with an initial estimated value of $7,000,000 from Greenwood Forest Products, Inc. During the year ended August 31, 2003, the Company completed the final phase of the inventory acquisition. As partial consideration for the purchase of the inventory the Company issued two promissory notes, based on its understanding of the value of the inventory purchased. The Company believes it overpaid the obligation by approximately $820,000. The holder counterclaimed for approximately $2,400,000. Litigation was completed on March 5, 2007, with the courts general judgment and money award. The net effect was money judgment in favor of Greenwood Forest Products, Inc. for $242,604. The Company accrued reserves to cover the money judgment related to this dispute. Both parties filed appeals for review of the courts opinion. During the 1st quarter of fiscal 2011, the Oregon Court of Appeals ruled that the judgment in favor of Jewett Cameron as plaintiffs should be reversed and the judgment in favor of the defendants should stand. The judgment in favor of the Company was for $819,000 plus attorneys fees. The judgment against the plaintiffs is for $1,187,137. The Company appealed the decision to the Oregon Supreme Court. During the 1st quarter of fiscal 2011, the Company recorded a litigation loss of $962,137 and interest of $391,988 in addition to the existing litigation reserve of $225,000. Additional interest of $48,790 was recorded during the remainder of fiscal 2011. During the 1st quarter of fiscal 2012 ended November 30, 2011, additional interest of $16,204 was accrued. In February 2012, the Company received the decision from the Oregon Supreme Court which was favorable to Jewett Cameron as plaintiff. As a result, the Company has reversed $1,459,832 of the litigation reserve and accrued interest during the 2nd quarter of fiscal 2012 ended February 29, 2012. The reversal was treated as a one-time gain during the quarter. In July 2014, upon remand from the Oregon Supreme Court, the Oregon Court of Appeals has concluded that Greenwood Forest Products, Inc. as defendants are entitled to a new trial, and, as a consequence, ruled that the judgment in favor of Jewett Cameron as plaintiffs should be reversed and the judgment in favor of defendants should stand. The judgment in favor of the Company was for $819,000 plus attorneys fees. The judgment against plaintiffs was for $1,187,137. On August 7, 2014, the Company filed a petition with the Oregon Supreme Court for a review of the Oregon Court of Appeals notice. The petition requests the Oregon Supreme Court review the most recent ruling by the Oregon Court of Appeals, reverse the decision, and affirm the original judgment of the trial court. In September 2015, the Oregon Supreme Court ruled on the Companys petition and has reversed the decision of the Oregon Court of Appeals and remanded the case to back to the Court of Appeals for further proceedings. The Court also denied the defendants request for a new trial. During the year ended August 31, 2015, the Company recorded $ 26,716 of interest income due to the favorable difference in interest rates between the judgments. During the nine months ended May 31, 2016, the Company recorded $ 6,661 of interest income. During the quarter ended February 29, 2016, the Company and Greenwood Forest Products, Inc., settled all litigation between the two companies. The Company made a cash payment of $200,000 to Greenwood Forest Products, Inc., as full settlement and termination of the litigation (the Settlement Payment). The litigation expense of $115,990 represents the difference between the Settlement Payment, and the litigation reserve balance on the date of settlement of $84,010 which is net of interest income recognized for the period. A summary of the litigation reserve is as follows: May 31, 2016 August 31, 2015 Litigation expense (1) $ (84,010) $ - Litigation reserve 84,010 117,387 Interest expense - - Interest income - (26,716) Total $ - $ 90,671 (1) The litigation reserve was reversed in full upon the settlement reached during the nine month period ended May 31, 2016. b ) At May 31, 2016 and August 31, 2015 the Company had an un-utilized line-of-credit of $ 3,000,000 (note 7). The line-of-credit has certain financial covenants. The Company is in compliance with these covenants. |
13. Segment Information
13. Segment Information | 9 Months Ended |
May 31, 2016 | |
Notes | |
13. Segment Information | 13. SEGMENT INFORMATION The Company has four principal reportable segments. These reportable segments were determined based on the nature of the products offered. Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company evaluates performance based on several factors, of which the primary financial measure is business segment income before taxes. The following tables show the operations of the Company's reportable segments. Following is a summary of segmented information for the nine month periods ended May 31: 2016 2015 Sales to unaffiliated customers: Industrial wood products $ 3,810,183 $ 3,183,802 Lawn, garden, pet and other 30,313,357 24,164,127 Seed processing and sales 2,587,373 2,103,553 Industrial tools and clamps 877,441 1,303,947 $ 37,588,354 $ 30,755,429 Income (loss) before income taxes: Industrial wood products $ 36,714 $ 60,543 Lawn, garden, pet and other 2,417,382 1,058,352 Seed processing and sales (95,840) 50,753 Industrial tools and clamps (83,839) 68,227 Corporate and administrative 359,478 560,026 $ 2,633,895 $ 1,797,901 Identifiable assets: Industrial wood products $ 1,074,934 $ 1,242,471 Lawn, garden, pet and other 10,215,128 11,342,373 Seed processing and sales 364,294 552,280 Industrial tools and clamps 504,628 747,022 Corporate and administrative 8,895,151 4,762,020 $ 21,054,135 $ 18,616,166 Depreciation and amortization: Industrial wood products $ 573 $ 735 Lawn, garden, pet and other 49,318 43,537 Seed processing and sales 7,943 8,209 Industrial tools and clamps 1,528 2,067 Corporate and administrative 167,599 156,346 $ 226,961 $ 210,894 Capital expenditures: Industrial wood products $ - $ - Lawn, garden, pet and other - - Seed processing and sales - - Industrial tools and clamps - - Corporate and administrative 79,521 85,240 $ 79,521 $ 85,240 Interest expense: Lawn, garden, pet and other $ 658 $ 658 The following table lists sales made by the Company to customers which were in excess of 10% of total sales for the nine months ended May 31, 2016 and 2015: 2016 2015 Sales $ 18,108,481 $ 13,426,962 The Company conducts business primarily in the United States, but also has limited amounts of sales in foreign countries. The following table lists sales by country for the nine months ended May 31, 2016 and 2015: 2016 2015 United States $ 34,666,374 $ 29,044,754 Canada 1,051,116 919,603 Mexico / Latin America 1,774,158 744,775 Middle East 11,686 12,164 Africa - 2,960 Asia/Pacific 85,020 31,173 $ 37,588,354 $ 30,755,429 All of the Companys significant identifiable assets were located in the United States as of May 31, 2016 and 2015. |
14. Concentrations
14. Concentrations | 9 Months Ended |
May 31, 2016 | |
Notes | |
14. Concentrations | 14. CONCENTRATIONS Credit risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company places its cash with a high quality financial institution. The Company has concentrations of credit risk with respect to accounts receivable as large amounts of its accounts receivable are concentrated geographically in the United States amongst a small number of customers. At May 31, 2016, one customer accounted for accounts receivable greater than 10% of total accounts receivable at 43 %. At May 31, 2015, four customers accounted for accounts receivable greater than 10% of total accounts receivable at 77 %. The Company controls credit risk through credit approvals, credit limits, credit insurance and monitoring procedures. The Company performs credit evaluations of its commercial customers but generally does not require collateral to support accounts receivable. Volume of business The Company has concentrations in the volume of purchases it conducts with its suppliers. For the nine months ended May 31, 2016, there were three suppliers that each accounted for 10% of total purchases, and the aggregate purchases amounted to $ 16,016,162 . For the nine months ended May 31, 2015, there were three suppliers that each accounted for greater than 10% of total purchases, and the aggregate purchases amounted to $ 15,064,820 . |
15. Supplemental Disclosure Wit
15. Supplemental Disclosure With Respect To Cash Flows | 9 Months Ended |
May 31, 2016 | |
Notes | |
15. Supplemental Disclosure With Respect To Cash Flows | 15. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS Certain cash payments for the nine months ended May 31, 2016 and 2015 are summarized as follows: 2016 2015 Cash paid during the periods for: Interest $ - $ - Income taxes $ 895,607 $ 379,234 There were no non-cash investing or financing activities during the periods presented. |
16. Subsequent Events
16. Subsequent Events | 9 Months Ended |
May 31, 2016 | |
Notes | |
16. Subsequent Events | 16. SUBSEQUENT EVENTS a) Subsequent to the end of the third quarter, the Company re-purchased and cancelled a total of 42,742 shares of its common stock pursuant to the Companys 10b5-1 share re-purchase plan, previously announced on March 7, 2016. The total cost was $489,274 at an average share price of $11.45 per share. b) On June 2, 2016, the Company incorporated a new wholly-owned subsidiary in the State of Oregon. c) On June 22, 2016, |
2. Significant Accounting Pol23
2. Significant Accounting Policies: Generally Accepted Accounting Principles (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Generally Accepted Accounting Principles | Generally accepted accounting principles These consolidated financial statements have been prepared in conformity with generally accepted accounting principles of the United States of America. |
2. Significant Accounting Pol24
2. Significant Accounting Policies: Principles of Consolidation (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Principles of Consolidation | Principles of consolidation These consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, JC USA, JCC, MSI, JCSC, and Greenwood, all of which are incorporated under the laws of Oregon, U.S.A. All inter-company balances and transactions have been eliminated upon consolidation. |
2. Significant Accounting Pol25
2. Significant Accounting Policies: Estimates (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Estimates | Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates incorporated into the Companys consolidated financial statements include the estimated useful lives for depreciable and amortizable assets, the estimated allowances for doubtful accounts receivable and inventory obsolescence, possible product liability and possible product returns, and litigation contingencies and claims. Actual results could differ from those estimates. |
2. Significant Accounting Pol26
2. Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Cash and Cash Equivalents | Cash and cash equivalents The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. At May 31, 2016, cash was $ 6,285,575 compared to $ 4,416,297 at August 31, 2015. At May 31, 2016 and August 31, 2015, there were no cash equivalents. |
2. Significant Accounting Pol27
2. Significant Accounting Policies: Accounts Receivable (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Accounts Receivable | Accounts receivable Trade and other accounts receivable are reported at face value less any provisions for uncollectible accounts considered necessary. Accounts receivable primarily includes trade receivables from customers. The Company estimates doubtful accounts on an item-by-item basis and includes over aged accounts as part of allowance for doubtful accounts, which are generally ones that are ninety days or greater overdue. The Company extends credit to domestic customers and offers discounts for early payment. When extension of credit is not advisable, the Company relies on either prepayment or a letter of credit. |
2. Significant Accounting Pol28
2. Significant Accounting Policies: Inventory (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Inventory | Inventory Inventory, which consists primarily of finished goods, is recorded at the lower of cost, based on the average cost method, and market. Market is defined as net realizable value. An allowance for potential non-saleable inventory due to excess stock or obsolescence is based upon a review of inventory components. |
2. Significant Accounting Pol29
2. Significant Accounting Policies: Property, Plant and Equipment (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Property, Plant and Equipment | Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated depreciation. The Company provides for depreciation over the estimated life of each asset on a straight-line basis over the following periods: Minimum Maximum Office equipment 3 7 Warehouse equipment 2 10 Buildings 5 30 |
2. Significant Accounting Pol30
2. Significant Accounting Policies: Intangibles (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Intangibles | Intangibles The Companys intangible assets have a finite life and are recorded at cost. The most significant intangible assets are two patents related to gate support systems. Amortization is calculated using the straight-line method over the remaining lives of 21 months and 33 months, respectively, and are reviewed annually for impairment. |
2. Significant Accounting Pol31
2. Significant Accounting Policies: Asset Retirement Obligations (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Asset Retirement Obligations | Asset retirement obligations The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development, and normal use of the long-lived assets. The Company also records a corresponding asset which is amortized over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation is adjusted at the end of each period to reflect the passage of time (accretion expense) and changes in the estimated future cash flows underlying the obligation (asset retirement cost). The Company does not have any significant asset retirement obligations. |
2. Significant Accounting Pol32
2. Significant Accounting Policies: Impairment of Long-lived Assets and Long-lived Assets To Be Disposed of (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Impairment of Long-lived Assets and Long-lived Assets To Be Disposed of | Impairment of long-lived assets and long-lived assets to be disposed of Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount and the fair value less costs to sell. |
2. Significant Accounting Pol33
2. Significant Accounting Policies: Currency and Foreign Exchange (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Currency and Foreign Exchange | Currency and foreign exchange These financial statements are expressed in U.S. dollars as the Company's operations are based only in the United States. The Company does not have non-monetary or monetary assets and liabilities that are in a currency other than the U.S. dollar. Any statement of operations transactions in a foreign currency are translated at rates that approximate those in effect at the time of translation. Gains and losses from translation of foreign currency transactions into U.S. dollars are included in current results of operations. |
2. Significant Accounting Pol34
2. Significant Accounting Policies: Earnings Per Share (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Earnings Per Share | Earnings per share Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding in the period. Diluted earnings per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares. The earnings per share data for the three and nine month periods ended May 31, 2016 and 2015 are as follows: Three Month Period Ended May 31, Nine Month Period Ended May 31, 2016 2015 2016 2015 Net income $ 908,730 $ 461,100 $ 1,572,935 $ 1,072,447 Basic weighted average number of common shares outstanding 2,458,170 2,561,702 2,470,566 2,612,199 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 2,458,170 2,561,702 2,470,566 2,612,199 |
2. Significant Accounting Pol35
2. Significant Accounting Policies: Comprehensive Income (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Comprehensive Income | Comprehensive income The Company has no items of other comprehensive income in any year presented. Therefore, net income presented in the consolidated statements of operations equals comprehensive income. |
2. Significant Accounting Pol36
2. Significant Accounting Policies: Stock-based Compensation (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Stock-based Compensation | Stock-based compensation All stock-based compensation is recognized as an expense in the financial statements and such costs are measured at the fair value of the award. No options were granted during the nine month period ended May 31, 2016, and there were no options outstanding on May 31, 2016. |
2. Significant Accounting Pol37
2. Significant Accounting Policies: Financial Instruments (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Financial Instruments | Financial instruments The Company uses the following methods and assumptions to estimate the fair value of each class of financial instruments for which it is practicable to estimate such values: Cash - the carrying amount approximates fair value because the amounts consist of cash held at a bank and cash held in short term investment accounts. Accounts receivable - the carrying amounts approximate fair value due to the short-term nature and historical collectability. Notes receivable - the carrying amounts approximate fair value due to the short-term nature of the amount. Accounts payable and accrued liabilities - the carrying amount approximates fair value due to the short-term nature of the obligations. The estimated fair values of the Company's financial instruments as of May 31, 2016 and August 31, 2015 follows: May 31, 2016 August 31, 2015 Carrying Fair Carrying Fair Amount Value Amount Value Cash $6,285,575 $6,285,575 $4,416,297 $4,416,297 Accounts receivable, net of allowance 4,382,438 4,382,438 3,688,247 3,688,247 Note receivable - - 1,310 1,310 Accounts payable and accrued liabilities 2,698,740 2,698,740 2,009,313 2,009,313 The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2016, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included situations where there is little, if any, market activity for the asset: May 31, 2016 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 6,285,575 $ 6,285,575 $ $ The fair values of cash are determined through market, observable and corroborated sources. |
2. Significant Accounting Pol38
2. Significant Accounting Policies: Income Taxes (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Income Taxes | Income taxes A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carryforwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
2. Significant Accounting Pol39
2. Significant Accounting Policies: Shipping and Handling Costs (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Shipping and Handling Costs | Shipping and handling costs The Company incurs certain expenses related to preparing, packaging and shipping its products to its customers, mainly third-party transportation fees. All costs related to these activities are included as a component of cost of goods sold in the consolidated statement of operations. All costs billed to the customer are included as revenue in the consolidated statement of operations. |
2. Significant Accounting Pol40
2. Significant Accounting Policies: Revenue Recognition (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Revenue Recognition | Revenue recognition The Company recognizes revenue from the sales of lumber, building supply products, industrial wood products, specialty metal products, and other specialty products and tools, when the products are shipped, title passes, and the ultimate collection is reasonably assured. Revenue from the Company's seed operations is generated from seed processing, handling and storage services provided to seed growers, and by the sales of seed products. Revenue from the provision of these services and products is recognized when the services have been performed, products sold and collection of the amounts is reasonably assured. |
2. Significant Accounting Pol41
2. Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
May 31, 2016 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Management has reviewed the new accounting guidance and determined that there is not a material impact on our financial statements. |
2. Significant Accounting Pol42
2. Significant Accounting Policies: Property, Plant and Equipment: Property, Plant and Equipment, Estimated Useful Lives (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Property, Plant and Equipment, Estimated Useful Lives | Minimum Maximum Office equipment 3 7 Warehouse equipment 2 10 Buildings 5 30 |
2. Significant Accounting Pol43
2. Significant Accounting Policies: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Month Period Ended May 31, Nine Month Period Ended May 31, 2016 2015 2016 2015 Net income $ 908,730 $ 461,100 $ 1,572,935 $ 1,072,447 Basic weighted average number of common shares outstanding 2,458,170 2,561,702 2,470,566 2,612,199 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 2,458,170 2,561,702 2,470,566 2,612,199 |
2. Significant Accounting Pol44
2. Significant Accounting Policies: Financial Instruments: Fair Value, Option, Quantitative Disclosures (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Fair Value, Option, Quantitative Disclosures | May 31, 2016 August 31, 2015 Carrying Fair Carrying Fair Amount Value Amount Value Cash $6,285,575 $6,285,575 $4,416,297 $4,416,297 Accounts receivable, net of allowance 4,382,438 4,382,438 3,688,247 3,688,247 Note receivable - - 1,310 1,310 Accounts payable and accrued liabilities 2,698,740 2,698,740 2,009,313 2,009,313 |
2. Significant Accounting Pol45
2. Significant Accounting Policies: Financial Instruments: Fair Value, Assets Measured on Recurring Basis (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis | May 31, 2016 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 6,285,575 $ 6,285,575 $ $ |
3. Inventory_ Schedule of Inven
3. Inventory: Schedule of Inventory, Current (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Schedule of Inventory, Current | May 31, 2016 August 31, 2015 Wood products and metal products $ 6,621,744 $ 7,376,505 Industrial tools 394,937 525,667 Agricultural seed products 281,213 449,403 $ 7,297,894 $ 8,351,575 |
4. Property, Plant and Equipm47
4. Property, Plant and Equipment: Property, Plant and Equipment (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Property, Plant and Equipment | May 31, 2016 August 31, 2015 Office equipment 600,805 $ 591,124 Warehouse equipment 1,484,512 1,520,724 Buildings 2,878,849 2,878,849 Land 761,924 761,924 5,726,090 5,752,621 Accumulated depreciation (3,587,290) (3,520,910) Net book value $ 2,138,800 $ 2,231,711 |
5. Intangible Assets_ Property,
5. Intangible Assets: Property, Plant, and Equipment and Intangible Assets (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Property, Plant, and Equipment and Intangible Assets | May 31, 2016 August 31, 2015 Patent $ 850,000 $ 850,000 Other 43,655 43,655 893,655 893,655 Accumulated amortization (724,935) (670,405) Net book value $ 168,720 $ 223,250 |
12. Contingent Liabilities an49
12. Contingent Liabilities and Commitments: Legal Matters and Contingencies (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Legal Matters and Contingencies | May 31, 2016 August 31, 2015 Litigation expense (1) $ (84,010) $ - Litigation reserve 84,010 117,387 Interest expense - - Interest income - (26,716) Total $ - $ 90,671 |
13. Segment Information_ Schedu
13. Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | 2016 2015 Sales to unaffiliated customers: Industrial wood products $ 3,810,183 $ 3,183,802 Lawn, garden, pet and other 30,313,357 24,164,127 Seed processing and sales 2,587,373 2,103,553 Industrial tools and clamps 877,441 1,303,947 $ 37,588,354 $ 30,755,429 Income (loss) before income taxes: Industrial wood products $ 36,714 $ 60,543 Lawn, garden, pet and other 2,417,382 1,058,352 Seed processing and sales (95,840) 50,753 Industrial tools and clamps (83,839) 68,227 Corporate and administrative 359,478 560,026 $ 2,633,895 $ 1,797,901 Identifiable assets: Industrial wood products $ 1,074,934 $ 1,242,471 Lawn, garden, pet and other 10,215,128 11,342,373 Seed processing and sales 364,294 552,280 Industrial tools and clamps 504,628 747,022 Corporate and administrative 8,895,151 4,762,020 $ 21,054,135 $ 18,616,166 Depreciation and amortization: Industrial wood products $ 573 $ 735 Lawn, garden, pet and other 49,318 43,537 Seed processing and sales 7,943 8,209 Industrial tools and clamps 1,528 2,067 Corporate and administrative 167,599 156,346 $ 226,961 $ 210,894 Capital expenditures: Industrial wood products $ - $ - Lawn, garden, pet and other - - Seed processing and sales - - Industrial tools and clamps - - Corporate and administrative 79,521 85,240 $ 79,521 $ 85,240 Interest expense: Lawn, garden, pet and other $ 658 $ 658 |
13. Segment Information_ Sche51
13. Segment Information: Schedule of Sales in Excess of Ten Percent (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Schedule of Sales in Excess of Ten Percent | 2016 2015 Sales $ 18,108,481 $ 13,426,962 |
13. Segment Information_ Sche52
13. Segment Information: Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | 2016 2015 United States $ 34,666,374 $ 29,044,754 Canada 1,051,116 919,603 Mexico / Latin America 1,774,158 744,775 Middle East 11,686 12,164 Africa - 2,960 Asia/Pacific 85,020 31,173 $ 37,588,354 $ 30,755,429 |
15. Supplemental Disclosure W53
15. Supplemental Disclosure With Respect To Cash Flows: Schedule of Cash Flow, Supplemental Disclosures (Tables) | 9 Months Ended |
May 31, 2016 | |
Tables/Schedules | |
Schedule of Cash Flow, Supplemental Disclosures | 2016 2015 Cash paid during the periods for: Interest $ - $ - Income taxes $ 895,607 $ 379,234 |
1. Nature of Operations (Detail
1. Nature of Operations (Details) | 9 Months Ended |
May 31, 2016 | |
Details | |
Entity Incorporation, State Country Name | British Columbia |
Entity Incorporation, Date of Incorporation | Jul. 8, 1987 |
2. Significant Accounting Pol55
2. Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | May 31, 2016 | Feb. 29, 2016 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2015 | Aug. 31, 2014 | ||
Details | ||||||||
Cash | $ 6,285,575 | [1] | $ 5,627,987 | $ 4,416,297 | $ 1,836,849 | [1] | $ 12,193 | $ 4,327,540 |
[1] | Supplemental disclosure with respect to cash flows, note 15 |
2. Significant Accounting Pol56
2. Significant Accounting Policies: Property, Plant and Equipment: Property, Plant and Equipment, Estimated Useful Lives (Details) | 9 Months Ended |
May 31, 2016 | |
Minimum | |
Office equipment, expected useful lives in years | 3 |
Warehouse equipment, expected useful lives in years | 2 |
Buildings, expected useful lives in years | 5 |
Maximum | |
Office equipment, expected useful lives in years | 7 |
Warehouse equipment, expected useful lives in years | 10 |
Buildings, expected useful lives in years | 30 |
2. Significant Accounting Pol57
2. Significant Accounting Policies: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Details | ||||
Net income | $ 908,730 | $ 461,100 | $ 1,572,935 | $ 1,072,447 |
Weighted Average Number of Shares Issued, Basic | 2,458,170 | 2,561,702 | 2,470,566 | 2,612,199 |
Weighted average number of common shares outstanding: Diluted | 2,458,170 | 2,561,702 | 2,470,566 | 2,612,199 |
2. Significant Accounting Pol58
2. Significant Accounting Policies: Financial Instruments: Fair Value, Option, Quantitative Disclosures (Details) - USD ($) | May 31, 2016 | Feb. 29, 2016 | Aug. 31, 2015 | May 31, 2015 | [1] | Feb. 28, 2015 | Aug. 31, 2014 | |
Details | ||||||||
Cash | $ 6,285,575 | [1] | $ 5,627,987 | $ 4,416,297 | $ 1,836,849 | $ 12,193 | $ 4,327,540 | |
Accounts Receivable, Net | 4,382,438 | 3,688,247 | ||||||
Note receivable | 1,310 | |||||||
Accounts Payable and Accrued Liabilities, Current | $ 2,698,740 | $ 2,009,313 | ||||||
[1] | Supplemental disclosure with respect to cash flows, note 15 |
2. Significant Accounting Pol59
2. Significant Accounting Policies: Financial Instruments: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) | May 31, 2016 | Feb. 29, 2016 | Aug. 31, 2015 | May 31, 2015 | Feb. 28, 2015 | Aug. 31, 2014 | ||
Details | ||||||||
Cash | $ 6,285,575 | [1] | $ 5,627,987 | $ 4,416,297 | $ 1,836,849 | [1] | $ 12,193 | $ 4,327,540 |
[1] | Supplemental disclosure with respect to cash flows, note 15 |
3. Inventory_ Schedule of Inv60
3. Inventory: Schedule of Inventory, Current (Details) - USD ($) | May 31, 2016 | Aug. 31, 2015 | |
Details | |||
Wood products and metal products | $ 6,621,744 | $ 7,376,505 | |
Industrial tools | 394,937 | 525,667 | |
Agricultural seed products | 281,213 | 449,403 | |
Inventory, net of allowance of $90,384 (August 31, 2014 - $111,756) | [1] | $ 7,297,894 | $ 8,351,575 |
[1] | Note 3 |
4. Property, Plant and Equipm61
4. Property, Plant and Equipment: Property, Plant and Equipment (Details) - USD ($) | May 31, 2016 | Aug. 31, 2015 | |
Details | |||
Office equipment | $ 600,805 | $ 591,124 | |
Warehouse equipment | 1,484,512 | 1,520,724 | |
Buildings and Improvements, Gross | 2,878,849 | 2,878,849 | |
Land | 761,924 | 761,924 | |
Property, Plant and Equipment, Gross | 5,726,090 | 5,752,621 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (3,587,290) | (3,520,910) | |
Property, plant and equipment, net | [1] | $ 2,138,800 | $ 2,231,711 |
[1] | Note 4 |
5. Intangible Assets_ Propert62
5. Intangible Assets: Property, Plant, and Equipment and Intangible Assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2016 | Aug. 31, 2015 | Feb. 29, 2016 | |
Details | |||
Finite-Lived Patents, Gross | $ 850,000 | $ 850,000 | |
Other Finite-Lived Intangible Assets, Gross | $ 43,655 | ||
Amortization of Intangible Assets | (724,935) | (670,405) | |
Intangible Assets, Current, Total | $ 168,720 | $ 223,250 |
6. Deferred Income Taxes (Detai
6. Deferred Income Taxes (Details) - USD ($) | May 31, 2016 | Aug. 31, 2015 |
Details | ||
Deferred Tax Assets, Net | $ 4,203 | $ 34,300 |
7. Bank Indebtedness (Details)
7. Bank Indebtedness (Details) | May 31, 2016USD ($) |
Details | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 |
11. Pension and Profit-sharin65
11. Pension and Profit-sharing Plans (Details) - USD ($) | 9 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Details | ||
Pension Contributions | $ 360,275 | $ 186,345 |
12. Contingent Liabilities an66
12. Contingent Liabilities and Commitments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Feb. 29, 2016 | May 31, 2016 | Aug. 31, 2015 | |
Details | |||
Litigation Settlement Interest | $ (6,661) | $ 26,716 | |
Litigation Settlement Interest | 6,661 | (26,716) | |
Litigation Settlement, Amount | $ 200,000 | ||
Litigation expense | 115,990 | 115,990 | |
Litigation reserve | $ 84,010 | 84,010 | $ 117,387 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 |
12. Contingent Liabilities an67
12. Contingent Liabilities and Commitments: Legal Matters and Contingencies (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
May 31, 2016 | Aug. 31, 2015 | Feb. 29, 2016 | |
Details | |||
Litigation reserve | $ (84,010) | $ (117,387) | $ (84,010) |
Litigation reserve | 84,010 | 117,387 | $ 84,010 |
Litigation Settlement Interest | $ 6,661 | (26,716) | |
Litigation settlement total | $ 90,671 |
13. Segment Information_ Sche68
13. Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Details | ||||
Industrial wood products, sales | $ 3,810,183 | $ 3,183,802 | ||
Lawn, garden, pet and other, sales | 30,313,357 | 24,164,127 | ||
Seed processing and sales, sales | 2,587,373 | 2,103,553 | ||
Industrial tools and clamps, sales | 877,441 | 1,303,947 | ||
SALES | $ 14,458,713 | $ 13,289,408 | 37,588,354 | 30,755,429 |
Industrial wood products, income before tax | 36,714 | 60,543 | ||
Lawn, garden, pet and other, income before tax | 2,417,382 | 1,058,352 | ||
Seed processing and sales, income before tax | (95,840) | 50,753 | ||
Industrial tools and clamps, income before tax | (83,839) | 68,227 | ||
Corporate and administrative income before tax | 359,478 | 560,026 | ||
Income (loss) before income taxes | 2,633,895 | 1,797,901 | ||
Industrial wood products, assets | 1,074,934 | 1,242,471 | ||
Lawn, garden, pet and other, assets | 10,215,128 | 11,342,373 | ||
Seed processing and sales, assets | 364,294 | 552,280 | ||
Industrial tools and clamps, assets | 504,628 | 747,022 | ||
Corporate and administrative assets | 8,895,151 | 4,762,020 | ||
Identifiable assets | 21,054,135 | 18,616,166 | ||
Industrial wood products, depreciation and amortization | 573 | 735 | ||
Lawn, garden, pet and other, depreciation and amortization | 49,318 | 43,537 | ||
Seed processing and sales, depreciation and amortization | 7,943 | 8,209 | ||
Industrial tools and clamps, depreciation and amortization | 1,528 | 2,067 | ||
Corporate and administrative depreciation and amortization | 167,599 | 156,346 | ||
Depreciation and amortization | $ 82,978 | $ 71,211 | 226,961 | 210,894 |
Corporate and administrative capital expenditures | 79,521 | 85,240 | ||
Interest Paid | $ 658 | $ 658 |
13. Segment Information_ Sche69
13. Segment Information: Schedule of Sales in Excess of Ten Percent (Details) - USD ($) | 9 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Details | ||
Sales to customers in excess of 10% of total sales | $ 18,108,481 | $ 13,426,962 |
13. Segment Information_ Sche70
13. Segment Information: Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Details) - USD ($) | 9 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Details | ||
United States sales | $ 34,666,374 | $ 29,044,754 |
Canada sales | 1,051,116 | 919,603 |
Mexico/Latin America sales | 1,774,158 | 744,775 |
Middle East sales | 11,686 | 12,164 |
Africa sales | 2,960 | |
Asia/Pacific sales | $ 85,020 | $ 31,173 |
14. Concentrations (Details)
14. Concentrations (Details) - USD ($) | 9 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Details | ||
Concentration Risk, Customer | 43 | 77 |
Concentration, volume of purchases | $ 16,016,162 | $ 15,064,820 |
15. Supplemental Disclosure W72
15. Supplemental Disclosure With Respect To Cash Flows: Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) | 9 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Details | ||
Income Taxes Paid | $ 895,607 | $ 379,234 |
16. Subsequent Events (Details)
16. Subsequent Events (Details) | 9 Months Ended |
May 31, 2016 | |
Details | |
Subsequent Event, Description | a) Subsequent to the end of the third quarter, the Company re-purchased and cancelled a total of 42,742 shares of its common stock pursuant to the Company’s 10b5-1 share re-purchase plan, previously announced on March 7, 2016. The total cost was $489,274 at an average share price of $11.45 per share. b) On June 2, 2016, the Company incorporated a new wholly-owned subsidiary in the State of Oregon. c) On June 22, 2016, Donald Boone, President and CEO of the Company, voluntarily returned 15,000 common shares to treasury for cancellation. No consideration was paid to Mr. Boone for the shares. |