Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
May 31, 2017 | Jul. 17, 2017 | |
Document and Entity Information: | ||
Entity Registrant Name | Jewett Cameron Trading Co LTD. | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2017 | |
Amendment Flag | false | |
Entity Central Index Key | 885,307 | |
Current Fiscal Year End Date | --08-31 | |
Entity Common Stock, Shares Outstanding | 2,245,634 | |
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 | 2,017 | |
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, 2017 | Aug. 31, 2016 | ||
Current assets | ||||
Cash | $ 4,872,068 | [1] | $ 4,519,922 | |
Accounts receivable, net of allowance of $Nil (August 31, 2016 - $Nil) | 5,532,541 | 3,342,204 | ||
Inventory, net of allowance of $157,879 (August 31, 2016 - $176,717) | [2] | 8,053,663 | 8,069,017 | |
Prepaid expenses | 772,802 | 832,895 | ||
Prepaid income taxes | 596 | |||
Total current assets | 19,231,074 | 16,764,634 | ||
Property, plant and equipment, net | [3] | 3,150,916 | 2,954,595 | |
Intangible assets, net | [4] | 96,014 | 150,543 | |
Total assets | 22,478,004 | 19,869,772 | ||
Current liabilities | ||||
Accounts payable | 891,623 | 839,972 | ||
Accrued liabilities | 1,710,069 | 1,473,792 | ||
Income taxes payable | 317,074 | |||
Total current liabilities | 2,918,766 | 2,313,764 | ||
Deferred tax liability | [5] | 33,515 | 31,353 | |
Total liabilities | 2,952,281 | 2,345,117 | ||
Contingent liabilities and commitments | [6] | |||
Stockholders' equity | ||||
Capital stock Authorized 21,567,564 common shares, without par value 10,000,000 preferred shares, without par value Issued 2,286,294 common shares (August 31, 2016 - 2,286,294) | [7] | 1,078,759 | 1,078,759 | |
Additional paid-in capital | 600,804 | 600,804 | ||
Retained earnings | 17,846,160 | 15,845,092 | ||
Total stockholders' equity | 19,525,723 | 17,524,655 | ||
Total liabilities and stockholders' equity | $ 22,478,004 | $ 19,869,772 | ||
[1] | Supplemental disclosure with respect to cash flows, note 15 | |||
[2] | Note 3 | |||
[3] | Note 4 | |||
[4] | Note 5 | |||
[5] | Note 6 | |||
[6] | Note 12 | |||
[7] | Note 8, 9 |
Statement of Financial Position
Statement of Financial Position - Parenthetical - USD ($) | May 31, 2017 | Aug. 31, 2016 |
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 | 2,286,294 | 2,286,294 |
Common Stock, Shares Outstanding | 2,286,294 | 2,286,294 |
Accounts Receivable allowance | $ 0 | $ 0 |
Inventory allowance | $ 157,879 | $ 176,717 |
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, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | ||
Income statement | |||||
SALES | $ 16,718,234 | $ 14,458,713 | $ 36,639,323 | $ 37,588,354 | |
COST OF SALES | 12,906,533 | 11,281,973 | 28,304,118 | 29,996,180 | |
GROSS PROFIT | 3,811,701 | 3,176,740 | 8,335,205 | 7,592,174 | |
OPERATING EXPENSES | |||||
Selling, general and administrative expenses | 466,014 | 542,581 | 1,470,731 | 1,616,796 | |
Depreciation and amortization | 84,693 | 82,978 | 222,700 | 226,961 | |
Wages and employee benefits | 1,237,756 | 1,046,229 | 3,277,797 | 3,017,643 | |
Total operating expenses | (1,788,463) | (1,671,788) | (4,971,228) | (4,861,400) | |
Income from operations | 2,023,238 | 1,504,952 | 3,363,977 | 2,730,774 | |
OTHER ITEMS | |||||
(Loss) gain on sale of property, plant and equipment | (393) | 5,600 | |||
Interest and other income | 2,400 | 2,978 | 6,220 | 13,538 | |
Interest expense | (27) | ||||
Litigation expense | [1] | (115,990) | |||
Total other items | 2,400 | 2,978 | 5,827 | (96,879) | |
Income before income taxes | 2,025,638 | 1,507,930 | 3,369,804 | 2,633,895 | |
Income tax expense | (819,503) | (599,200) | (1,368,736) | (1,060,960) | |
Net income | $ 1,206,135 | $ 908,730 | $ 2,001,068 | $ 1,572,935 | |
Basic earnings per common share | $ 0.53 | $ 0.37 | $ 0.88 | $ 0.64 | |
Diluted earnings per common share | $ 0.53 | $ 0.37 | $ 0.88 | $ 0.64 | |
Weighted average number of common shares outstanding: Basic | 2,286,294 | 2,458,170 | 2,286,294 | 2,470,566 | |
Weighted average number of common shares outstanding: Diluted | 2,286,294 | 2,458,170 | 2,286,294 | 2,470,566 | |
[1] | Note 12 (a) |
JEWETT-CAMERON TRADING COMPANY5
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Prepared by Management) (Unaudited) - USD ($) | Number of Shares | Amount | Additional paid in capital | Retained earnings | Total | |
Beginning 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] | (89,953) | (2,034,626) | (2,124,579) | ||
Shares repurchased and cancelled, shares | [1] | (190,538) | ||||
Net income | 2,125,099 | 2,125,099 | ||||
Ending balance at Aug. 31, 2016 | 1,078,759 | 600,804 | 15,845,092 | 17,524,655 | ||
Shares outstanding at Aug. 31, 2016 | 2,286,294 | |||||
Net income | 2,001,068 | 2,001,068 | ||||
Ending balance at May. 31, 2017 | $ 1,078,759 | $ 600,804 | $ 17,846,160 | $ 19,525,723 | ||
Shares outstanding at May. 31, 2017 | 2,286,294 | |||||
[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, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income | $ 1,206,135 | $ 908,730 | $ 2,001,068 | $ 1,572,935 | |
Items not involving an outlay of cash: | |||||
Depreciation and amortization | 84,693 | 82,978 | 222,700 | 226,961 | |
Loss (gain) on sale of property, plant and equipment | 393 | (5,600) | |||
Deferred income tax expense (recovery) | (2,378) | (33,601) | 2,162 | (30,097) | |
Interest income on litigation | (6,661) | ||||
Decrease in litigation reserve | (84,010) | ||||
Changes in non-cash working capital items: | |||||
(Increase) in accounts receivable | (984,800) | (597,843) | (2,190,337) | (694,191) | |
Decrease in inventory | 832,580 | 213,122 | 15,354 | 1,053,681 | |
Decrease in note receivable | 1,310 | ||||
Decrease (increase) in prepaid expenses | 34,891 | (271,860) | 60,093 | (61,249) | |
Decrease in prepaid income taxes | 149,487 | 159,031 | 596 | 26,570 | |
Increase in accounts payable and accrued liabilities | 1,249,205 | 974,527 | 287,928 | 689,427 | |
Increase in income taxes payable | 317,074 | 317,074 | |||
Net cash provided by operating activities | 2,886,887 | 1,435,084 | 717,031 | 2,689,076 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of property, plant and equipment | (33,351) | (31,618) | (368,365) | (79,520) | |
Proceeds from sale of property, plant and equipment | 3,480 | 5,600 | |||
Net cash used in investing activities | (33,351) | (31,618) | (364,885) | (73,920) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Redemption of common stock | (745,878) | (745,878) | |||
Net cash used in financing activities | (745,878) | (745,878) | |||
Net increase in cash | 2,853,536 | 657,588 | 352,146 | 1,869,278 | |
Cash, beginning of period | 4,519,922 | 4,416,297 | |||
Cash, end of period | [1] | $ 4,872,068 | $ 6,285,575 | $ 4,872,068 | $ 6,285,575 |
[1] | Supplemental disclosure with respect to cash flows, note 15 |
1. Nature of Operations
1. Nature of Operations | 9 Months Ended |
May 31, 2017 | |
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, 2017 and August 31, 2016 and its results of operations and cash flows for the three and nine month periods ended May 31, 2017 and 2016 in accordance with generally accepted accounting principles of the United States of America |
3. Inventory
3. Inventory | 9 Months Ended |
May 31, 2017 | |
Notes | |
3. Inventory | 3. INVENTORY A summary of inventory is as follows: May 31, 2017 August 31, 2016 Wood products and metal products $ 7,331,381 $ 7,374,255 Industrial tools 413,312 450,924 Agricultural seed products 308,970 243,838 $ 8,053,663 $ 8,069,017 |
4. Property, Plant and Equipmen
4. Property, Plant and Equipment | 9 Months Ended |
May 31, 2017 | |
Notes | |
4. Property, Plant and Equipment | 4. PROPERTY, PLANT AND EQUIPMENT A summary of property, plant, and equipment is as follows: May 31, 2017 August 31, 2016 Office equipment $ 558,370 $ 615,031 Warehouse equipment 1,294,695 1,498,960 Buildings 3,990,308 3,697,100 Land 761,924 761,924 6,605,297 6,573,015 Accumulated depreciation (3,454,381) (3,618,420) Net book value $ 3,150,916 $ 2,954,595 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, 2017 | |
Notes | |
5. Intangible Assets | 5. INTANGIBLE ASSETS A summary of intangible assets is as follows: May 31, 2017 August 31, 2016 Patent $ 850,000 $ 850,000 Other 43,655 43,655 893,655 893,655 Accumulated amortization (797,641) (743,112) Net book value $ 96,014 $ 150,543 |
6. Income Taxes
6. Income Taxes | 9 Months Ended |
May 31, 2017 | |
Notes | |
6. Income Taxes | 6. DEFERRED INCOME TAXES Deferred income tax liability as of May 31, 2017 of $ 33,515 (August 31, 2016 $ 31,353 ) 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, 2017 | |
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, 2017 or August 31, 2016. 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, 2017 | |
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, 2017 | |
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 |
10. Stock Options
10. Stock Options | 9 Months Ended |
May 31, 2017 | |
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, 2017 and August 31, 2016. |
11. Pension and Profit-sharing
11. Pension and Profit-sharing Plans | 9 Months Ended |
May 31, 2017 | |
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 enrolment time. The plan allows for a non-elective discretionary contribution based on the first $50,000 of eligible compensation, which was decreased from the prior $60,000 of eligible compensation during the second quarter of fiscal 2017. 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, 2017 and 2016, the 401(k) compensation expense was $ 256,385 and $ 360,275 , respectively. |
12. Contingent Liabilities and
12. Contingent Liabilities and Commitments | 9 Months Ended |
May 31, 2017 | |
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. A series of rulings and appeals between the years ended August 31, 2011 to August 31, 2015, resulted in the Company recognizing aggregate litigation income of $272,695, and aggregate interest expense of $363,366 to August 31, 2015, totaling a net loss of $90,671. During the year ended August 31, 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). During the nine months ended May 31, 2016 and year ended August 31, 2016, litigation expense of $115,990 was recorded. As a result, to the date of settlement during the year ended August 31, 2016, the Company recognized aggregate litigation income, and aggregate interest expense of $156,705, and $363,366 respectively, resulting in an aggregate loss of $206,661. b ) At May 31, 2017 and August 31, 2016, 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, 2017 | |
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, 2017 and 2016: 2017 2016 Sales to unaffiliated customers: Industrial wood products $ 2,857,334 $ 3,810,183 Lawn, garden, pet and other 29,692,781 30,313,357 Seed processing and sales 2,834,311 2,587,373 Industrial tools and clamps 1,254,897 877,441 $ 36,639,323 $ 37,588,354 Income (loss) before income taxes: Industrial wood products $ (58,597) $ 36,714 Lawn, garden, pet and other 2,494,172 2,417,382 Seed processing and sales 126,507 (95,840) Industrial tools and clamps 86,581 (83,839) Corporate and administrative 721,141 359,478 $ 3,369,804 $ 2,633,895 Identifiable assets: Industrial wood products $ 1,066,183 $ 1,074,934 Lawn, garden, pet and other 11,987,315 10,215,128 Seed processing and sales 528,954 364,294 Industrial tools and clamps 494,625 504,628 Corporate and administrative 8,400,927 8,895,151 $ 22,478,004 $ 21,054,135 Depreciation and amortization: Industrial wood products $ 248 $ 573 Lawn, garden, pet and other 38,626 49,318 Seed processing and sales 9,857 7,943 Industrial tools and clamps 986 1,528 Corporate and administrative 172,983 167,599 $ 222,700 $ 226,961 Capital expenditures: Industrial wood products $ - $ - Lawn, garden, pet and other - - Seed processing and sales 12,495 - Industrial tools and clamps - - Corporate and administrative 355,870 79,520 $ 368,365 $ 79,520 Interest expense : $ - $ 658 * Litigation expense of $115,990 incurred during the nine months ended May 31, 2016 is included in the 2016 balance (Note 12(a)). 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, 2017 and 2016: 2017 2016 Sales $ 18,011,073 $ 18,108,481 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, 2017 and 2016: 2017 2016 United States $ 34,483,170 $ 34,666,374 Canada 1,425,525 1,051,116 Mexico / Latin America 636,954 1,774,158 Middle East - 11,686 Europe 16,330 - Asia/Pacific 77,344 85,020 All of the Companys significant identifiable assets were located in the United States as of May 31, 2017 and 2016. |
14. Concentrations
14. Concentrations | 9 Months Ended |
May 31, 2017 | |
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, 2017, two customers accounted for accounts receivable greater than 10% of total accounts receivable at 53 %. At May 31, 2016, one customer accounted for accounts receivable greater than 10% of total accounts receivable at 43 %. 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, 2017, there were two suppliers that each accounted for 10% of total purchases, and the aggregate purchases amounted to $ 13,945,620 . 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 . |
15. Supplemental Disclosure Wit
15. Supplemental Disclosure With Respect To Cash Flows | 9 Months Ended |
May 31, 2017 | |
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, 2017 and 2016 are summarized as follows: 2017 2016 Cash paid during the periods for: Interest $ 0 $ 0 Income taxes $ 1,032,725 $ 895,607 There were no non-cash investing or financing activities during the periods presented. |
Subsequent Events
Subsequent Events | 9 Months Ended |
May 31, 2017 | |
Notes | |
Subsequent Events | 16. SUBSEQUENT EVENTS Subsequent to the period ended May 31, 2017, the Company re-purchased for cancellation a total of 40,660 shares of its common stock pursuant to a 10b5-1 share re-purchase plan, previously announced on May 23, 2017. The total cost was $511,959 at an average share price of $12.59 per share. |
Generally Accepted Accounting P
Generally Accepted Accounting Principles (Policies) | 9 Months Ended |
May 31, 2017 | |
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. |
Principles of Consolidation (Po
Principles of Consolidation (Policies) | 9 Months Ended |
May 31, 2017 | |
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. |
Estimates (Policies)
Estimates (Policies) | 9 Months Ended |
May 31, 2017 | |
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. |
Cash and Cash Equivalents (Poli
Cash and Cash Equivalents (Policies) | 9 Months Ended |
May 31, 2017 | |
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, 2017, cash was $ 4,872,068 compared to $ 4,519,922 at August 31, 2016. At May 31, 2017 and August 31, 2016, there were no cash equivalents. |
Accounts Receivable (Policies)
Accounts Receivable (Policies) | 9 Months Ended |
May 31, 2017 | |
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. |
Inventory (Policies)
Inventory (Policies) | 9 Months Ended |
May 31, 2017 | |
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. |
Property, Plant and Equipment (
Property, Plant and Equipment (Policies) | 9 Months Ended |
May 31, 2017 | |
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 |
Intangibles (Policies)
Intangibles (Policies) | 9 Months Ended |
May 31, 2017 | |
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 9 months and 21 months, respectively, and are reviewed annually for impairment. |
Asset Retirement Obligations (P
Asset Retirement Obligations (Policies) | 9 Months Ended |
May 31, 2017 | |
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. |
Impairment of Long-lived Assets
Impairment of Long-lived Assets and Long-lived Assets To Be Disposed of (Policies) | 9 Months Ended |
May 31, 2017 | |
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. |
Currency and Foreign Exchange (
Currency and Foreign Exchange (Policies) | 9 Months Ended |
May 31, 2017 | |
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. |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 9 Months Ended |
May 31, 2017 | |
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, 2017 and 2016 are as follows: Three Month Periods ended May 31, Nine Month Periods ended May 31, 2017 2016 2017 2016 Net income $ 1,206,135 $ 908,730 $ 2,001,068 $ 1,572,935 Basic weighted average number of common shares outstanding 2,286,294 2,458,170 2,286,294 2,470,566 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 2,286,294 2,458,170 2,286,294 2,470,566 |
Comprehensive Income (Policies)
Comprehensive Income (Policies) | 9 Months Ended |
May 31, 2017 | |
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. |
Stock-based Compensation (Polic
Stock-based Compensation (Policies) | 9 Months Ended |
May 31, 2017 | |
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, 2017, and there were no options outstanding on May 31, 2017. |
Financial Instruments (Policies
Financial Instruments (Policies) | 9 Months Ended |
May 31, 2017 | |
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. 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, 2017 and August 31, 2016 follows: May 31, 2017 August 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value Cash $ 4,872,068 $4,872,068 $4,519,922 $4,519,922 Accounts receivable, net of allowance 5,532,541 5,532,541 3,342,204 3,342,204 Accounts payable and accrued liabilities 2,601,692 2,601,692 2,313,764 2,313,764 The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2017, 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, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 4,872,068 $ 4,872,068 $ $ The fair values of cash are determined through market, observable and corroborated sources. |
Income Tax, Policy (Policies)
Income Tax, Policy (Policies) | 9 Months Ended |
May 31, 2017 | |
Policies | |
Income Tax, Policy | 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 (Po
Shipping and Handling Costs (Policies) | 9 Months Ended |
May 31, 2017 | |
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 sales in the consolidated statement of operations. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 9 Months Ended |
May 31, 2017 | |
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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
May 31, 2017 | |
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. |
Property, Plant and Equipment_
Property, Plant and Equipment: Property, Plant and Equipment, Estimated Useful Lives (Tables) | 9 Months Ended |
May 31, 2017 | |
Tables/Schedules | |
Property, Plant and Equipment, Estimated Useful Lives | Minimum Maximum Office equipment 3 7 Warehouse equipment 2 10 Buildings 5 30 |
Earnings Per Share_ Schedule of
Earnings Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 9 Months Ended |
May 31, 2017 | |
Tables/Schedules | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Month Periods ended May 31, Nine Month Periods ended May 31, 2017 2016 2017 2016 Net income $ 1,206,135 $ 908,730 $ 2,001,068 $ 1,572,935 Basic weighted average number of common shares outstanding 2,286,294 2,458,170 2,286,294 2,470,566 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 2,286,294 2,458,170 2,286,294 2,470,566 |
Financial Instruments_ Fair Val
Financial Instruments: Fair Value, Option, Quantitative Disclosures (Tables) | 9 Months Ended |
May 31, 2017 | |
Tables/Schedules | |
Fair Value, Option, Quantitative Disclosures | May 31, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 4,872,068 $ 4,872,068 $ $ |
3. Inventory_ Schedule of Inven
3. Inventory: Schedule of Inventory, Current (Tables) | 9 Months Ended |
May 31, 2017 | |
Tables/Schedules | |
Schedule of Inventory, Current | May 31, 2017 August 31, 2016 Wood products and metal products $ 7,331,381 $ 7,374,255 Industrial tools 413,312 450,924 Agricultural seed products 308,970 243,838 $ 8,053,663 $ 8,069,017 |
4. Property, Plant and Equipm45
4. Property, Plant and Equipment: Property, Plant and Equipment (Tables) | 9 Months Ended |
May 31, 2017 | |
Tables/Schedules | |
Property, Plant and Equipment | May 31, 2017 August 31, 2016 Office equipment $ 558,370 $ 615,031 Warehouse equipment 1,294,695 1,498,960 Buildings 3,990,308 3,697,100 Land 761,924 761,924 6,605,297 6,573,015 Accumulated depreciation (3,454,381) (3,618,420) Net book value $ 3,150,916 $ 2,954,595 |
5. Intangible Assets_ Property,
5. Intangible Assets: Property, Plant, and Equipment and Intangible Assets (Tables) | 9 Months Ended |
May 31, 2017 | |
Tables/Schedules | |
Property, Plant, and Equipment and Intangible Assets | May 31, 2017 August 31, 2016 Patent $ 850,000 $ 850,000 Other 43,655 43,655 893,655 893,655 Accumulated amortization (797,641) (743,112) Net book value $ 96,014 $ 150,543 |
13. Segment Information_ Schedu
13. Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) | 9 Months Ended |
May 31, 2017 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | 2017 2016 Sales to unaffiliated customers: Industrial wood products $ 2,857,334 $ 3,810,183 Lawn, garden, pet and other 29,692,781 30,313,357 Seed processing and sales 2,834,311 2,587,373 Industrial tools and clamps 1,254,897 877,441 $ 36,639,323 $ 37,588,354 Income (loss) before income taxes: Industrial wood products $ (58,597) $ 36,714 Lawn, garden, pet and other 2,494,172 2,417,382 Seed processing and sales 126,507 (95,840) Industrial tools and clamps 86,581 (83,839) Corporate and administrative 721,141 359,478 $ 3,369,804 $ 2,633,895 Identifiable assets: Industrial wood products $ 1,066,183 $ 1,074,934 Lawn, garden, pet and other 11,987,315 10,215,128 Seed processing and sales 528,954 364,294 Industrial tools and clamps 494,625 504,628 Corporate and administrative 8,400,927 8,895,151 $ 22,478,004 $ 21,054,135 Depreciation and amortization: Industrial wood products $ 248 $ 573 Lawn, garden, pet and other 38,626 49,318 Seed processing and sales 9,857 7,943 Industrial tools and clamps 986 1,528 Corporate and administrative 172,983 167,599 $ 222,700 $ 226,961 Capital expenditures: Industrial wood products $ - $ - Lawn, garden, pet and other - - Seed processing and sales 12,495 - Industrial tools and clamps - - Corporate and administrative 355,870 79,520 $ 368,365 $ 79,520 Interest expense : $ - $ 658 |
13. Segment Information_ Sche48
13. Segment Information: Schedule of Sales in Excess of Ten Percent (Tables) | 9 Months Ended |
May 31, 2017 | |
Tables/Schedules | |
Schedule of Sales in Excess of Ten Percent | 2017 2016 Sales $ 18,011,073 $ 18,108,481 |
13. Segment Information_ Sche49
13. Segment Information: Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Tables) | 9 Months Ended |
May 31, 2017 | |
Tables/Schedules | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | 2017 2016 United States $ 34,483,170 $ 34,666,374 Canada 1,425,525 1,051,116 Mexico / Latin America 636,954 1,774,158 Middle East - 11,686 Europe 16,330 - Asia/Pacific 77,344 85,020 |
15. Supplemental Disclosure W50
15. Supplemental Disclosure With Respect To Cash Flows: Schedule of Cash Flow, Supplemental Disclosures (Tables) | 9 Months Ended |
May 31, 2017 | |
Tables/Schedules | |
Schedule of Cash Flow, Supplemental Disclosures | 2017 2016 Cash paid during the periods for: Interest $ 0 $ 0 Income taxes $ 1,032,725 $ 895,607 |
1. Nature of Operations (Detail
1. Nature of Operations (Details) | 9 Months Ended |
May 31, 2017 | |
Details | |
Entity Incorporation, State Country Name | British Columbia |
Entity Incorporation, Date of Incorporation | Jul. 8, 1987 |
Items (Details)
Items (Details) | 9 Months Ended |
May 31, 2017 | |
Details | |
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, 2017, cash was $ 4,872,068 compared to $ 4,519,922 at August 31, 2016. At May 31, 2017 and August 31, 2016, 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 9 months and 21 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, 2017 and 2016 are as follows: Three Month Periods ended May 31, Nine Month Periods ended May 31, 2017 2016 2017 2016 Net income $ 1,206,135 $ 908,730 $ 2,001,068 $ 1,572,935 Basic weighted average number of common shares outstanding 2,286,294 2,458,170 2,286,294 2,470,566 Effect of dilutive securities Stock options - - - - Diluted weighted average number of common shares outstanding 2,286,294 2,458,170 2,286,294 2,470,566 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, 2017, and there were no options outstanding on May 31, 2017. 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. 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, 2017 and August 31, 2016 follows: May 31, 2017 August 31, 2016 Carrying Fair Carrying Fair Amount Value Amount Value Cash $ 4,872,068 $4,872,068 $4,519,922 $4,519,922 Accounts receivable, net of allowance 5,532,541 5,532,541 3,342,204 3,342,204 Accounts payable and accrued liabilities 2,601,692 2,601,692 2,313,764 2,313,764 The following table presents information about the assets that are measured at fair value on a recurring basis as of May 31, 2017, 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, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash $ 4,872,068 $ 4,872,068 $ $ 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 sales 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. |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) | May 31, 2017 | Aug. 31, 2016 | May 31, 2016 | Aug. 31, 2015 | ||
Details | ||||||
Cash | $ 4,872,068 | [1] | $ 4,519,922 | $ 6,285,575 | [1] | $ 4,416,297 |
[1] | Supplemental disclosure with respect to cash flows, note 15 |
Property, Plant and Equipment54
Property, Plant and Equipment: Property, Plant and Equipment, Estimated Useful Lives (Details) | 9 Months Ended |
May 31, 2017 | |
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 |
Earnings Per Share_ Schedule 55
Earnings Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Details | ||||
Net income for the year | $ 1,206,135 | $ 908,730 | $ 2,001,068 | $ 1,572,935 |
Weighted Average Number of Shares Issued, Basic | 2,286,294 | 2,458,170 | 2,286,294 | 2,470,566 |
Weighted average number of common shares outstanding: Diluted | 2,286,294 | 2,458,170 | 2,286,294 | 2,470,566 |
Financial Instruments_ Fair V56
Financial Instruments: Fair Value, Option, Quantitative Disclosures (Details) - USD ($) | May 31, 2017 | Aug. 31, 2016 | May 31, 2016 | [1] | Aug. 31, 2015 | |
Details | ||||||
Cash | $ 4,872,068 | [1] | $ 4,519,922 | $ 6,285,575 | $ 4,416,297 | |
Accounts Receivable, Net | 5,532,541 | 3,342,204 | ||||
Accounts Payable and Accrued Liabilities, Current | 2,017 | 2,313,764 | ||||
Cash | $ 4,872,068 | [1] | $ 4,519,922 | $ 6,285,575 | $ 4,416,297 | |
[1] | Supplemental disclosure with respect to cash flows, note 15 |
3. Inventory_ Schedule of Inv57
3. Inventory: Schedule of Inventory, Current (Details) - USD ($) | May 31, 2017 | Aug. 31, 2016 | |
Details | |||
Wood products and metal products | $ 7,331,381 | $ 7,374,255 | |
Industrial tools | 413,312 | 450,924 | |
Agricultural seed products | 308,970 | 243,838 | |
Inventory, net of allowance of $176,717 (August 31, 2015 - $120,824) | [1] | $ 8,053,663 | $ 8,069,017 |
[1] | Note 3 |
4. Property, Plant and Equipm58
4. Property, Plant and Equipment: Property, Plant and Equipment (Details) - USD ($) | May 31, 2017 | Aug. 31, 2016 | |
Details | |||
Office equipment | $ 558,370 | $ 615,031 | |
Warehouse equipment | 1,294,695 | 1,498,960 | |
Buildings and Improvements, Gross | 3,990,308 | 3,697,100 | |
Land | 761,924 | 761,924 | |
Property, Plant and Equipment, Gross | 6,605,297 | 6,573,015 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (3,454,381) | (3,618,420) | |
Property, plant and equipment, net | [1] | $ 3,150,916 | $ 2,954,595 |
[1] | Note 4 |
5. Intangible Assets_ Propert59
5. Intangible Assets: Property, Plant, and Equipment and Intangible Assets (Details) | 9 Months Ended |
May 31, 2017USD ($) | |
Details | |
Finite-Lived Patents, Gross | $ 850,000 |
Other Finite-Lived Intangible Assets, Gross | 43,655 |
Amortization of Intangible Assets | 150,543 |
Intangible Assets, Current | $ 96,014 |
6. Income Taxes (Details)
6. Income Taxes (Details) - USD ($) | May 31, 2017 | Aug. 31, 2016 |
Details | ||
Deferred Tax Assets, Net | $ 33,515 | $ 31,353 |
7. Bank Indebtedness (Details)
7. Bank Indebtedness (Details) | May 31, 2017USD ($) |
Details | |
Line of Credit Facility, Current Borrowing Capacity | $ 3,000,000 |
9. Cancellation of Capital St62
9. Cancellation of Capital Stock (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2016 | May 31, 2016 | |
Details | ||
Shares repurchased and cancelled, shares | 112,152 | 63,386 |
Payments for Repurchase of Common Stock | $ 1,378,701 | $ 745,878 |
Average price per share repurchased and cancelled | $ 12.29 | $ 11.77 |
Cumulative Effect on Retained Earnings, before Tax | $ 1,325,994 | |
Shares returned to treasury for cancellation | 15,000 | |
Shares returned to treasury for cancellation, value | $ 7,124 | |
Shares returned to treasury for cancellation, value, effect on retained earnings | $ 7,124 | $ 715,756 |
11. Pension and Profit-sharin63
11. Pension and Profit-sharing Plans (Details) - USD ($) | 9 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Details | ||
Pension Contributions | $ 256,385 | $ 360,275 |
12. Contingent Liabilities an64
12. Contingent Liabilities and Commitments (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2016 | May 31, 2017 | |
Details | ||
Litigation Settlement Amount | $ 200,000 | |
Payments for Legal Settlements | $ 206,661 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 |
13. Segment Information_ Sche65
13. Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Details | ||||
Industrial wood products, sales | $ 2,857,334 | $ 3,810,183 | ||
Lawn, garden, pet and other, sales | 29,692,781 | 30,313,357 | ||
Seed processing and sales, sales | 2,834,311 | 2,587,373 | ||
Industrial tools and clamps, sales | 1,254,897 | 877,441 | ||
SALES | $ 16,718,234 | $ 14,458,713 | 36,639,323 | 37,588,354 |
Industrial wood products, income before tax | (58,597) | 36,714 | ||
Lawn, garden, pet and other, income before tax | 2,494,172 | 2,417,382 | ||
Seed processing and sales, income before tax | 126,507 | (95,840) | ||
Industrial tools and clamps, income before tax | 86,581 | (83,839) | ||
Corporate and administrative income before tax | 721,141 | 359,478 | ||
Interest Expense, Other | 3,369,804 | 658 | ||
Income (loss) before income taxes | 2,633,895 | |||
Industrial wood products, assets | 1,066,183 | 1,074,934 | ||
Lawn, garden, pet and other, assets | 11,987,315 | 10,215,128 | ||
Seed processing and sales, assets | 528,954 | 364,294 | ||
Industrial tools and clamps, assets | 494,625 | 504,628 | ||
Corporate and administrative assets | 8,400,927 | 8,895,151 | ||
Identifiable assets | 22,478,004 | 21,054,135 | ||
Industrial wood products, depreciation and amortization | 248 | 573 | ||
Lawn, garden, pet and other, depreciation and amortization | 38,626 | 49,318 | ||
Seed processing and sales, depreciation and amortization | 9,857 | 7,943 | ||
Industrial tools and clamps, depreciation and amortization | 986 | 1,528 | ||
Corporate and administrative depreciation and amortization | 172,983 | 167,599 | ||
Depreciation and amortization | 84,693 | 82,978 | 222,700 | 226,961 |
Seed processing and sales capital expenditures | 12,495 | |||
Corporate and administrative capital expenditures | 355,870 | 79,520 | ||
Purchase of property, plant and equipment | $ 33,351 | $ 31,618 | $ 368,365 | $ 79,520 |
13. Segment Information_ Sche66
13. Segment Information: Schedule of Sales in Excess of Ten Percent (Details) - USD ($) | 9 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Details | ||
Sales to customers in excess of 10% of total sales | $ 34,483,170 | $ 34,666,374 |
13. Segment Information_ Sche67
13. Segment Information: Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Details) - USD ($) | 9 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Details | ||
Sales to customers in excess of 10% of total sales | $ 34,483,170 | $ 34,666,374 |
Canada sales | 1,425,525 | 1,051,116 |
Mexico/Latin America sales | 636,954 | 1,774,158 |
Middle East Sales | 11,686 | |
Europe sales | 16,330 | |
Asia/Pacific sales | $ 77,344 | $ 85,020 |
14. Concentrations (Details)
14. Concentrations (Details) - USD ($) | 9 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Details | ||
Concentration Risk, Customer | 53 | 43 |
Concentration, volume of purchases | $ 13,945,620 | $ 16,016,162 |
15. Supplemental Disclosure W69
15. Supplemental Disclosure With Respect To Cash Flows: Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) | 9 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Details | ||
Interest Paid | $ 0 | $ 0 |
Income Taxes Paid | $ 1,032,725 | $ 895,607 |
Uncategorized Items - jctcf-201
Label | Element | Value |
Net income {1} | us-gaap_ProfitLoss | $ 1,206,135 |
Net income {1} | us-gaap_ProfitLoss | 908,730 |
Net income {1} | us-gaap_ProfitLoss | $ 1,572,935 |