Jewett-Cameron Announces 1st Quarter Financial Results

Jewett-Cameron Announces 1st Quarter Financial Results

PR Newswire

NORTH PLAINS, Ore., Jan. 16, 2024

NORTH PLAINS, Ore., Jan. 16, 2024 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2024 ended November 30, 2023.

Sales for the first quarter of fiscal 2024 totaled $9.8 million compared to sales of $12.5 million for the first quarter of fiscal 2023. Loss from operations was ($789,224) compared to a loss of ($6,798) in the year ago period. After a one-time gain from a favorable arbitration settlement and other items, net income for the current quarter was $1,291,541, or $0.37 per share, compared to a net loss of ($73,760), or ($0.02) per share, in the year-ago quarter.

"We are continuing to work through the effects of the pandemic and the high rate of inflation that has caused price disruptions and negatively affected consumer buying," said CEO Chad Summers. "The pet segment continues to lag, but sales of our fencing products are meeting expectations. We officially launched our new MyEcoWorld® line of sustainable bag products in the 4th quarter and sales are growing. With the exception of pet products, we are approaching the desired inventory levels for most of our primary products as we sharpen our focus on our operational strengths and core product lines."

As of November 30, 2023, the Company's cash position was $3.5 million, and there was no borrowing against its $10.0 million line of credit. Based on the timing of accounts receivable and the available line of credit, the Company believes it has sufficient working capital available for the remainder of fiscal 2024.

Jewett-Cameron Trading Company is a holding company that, through its subsidiaries, operates out of facilities located in North Plains, Oregon. Jewett-Cameron Company's business consists of the manufacturing and distribution of patented and patent pending specialty metal and sustainable bag products, and wholesale distribution of wood products. The Company's brands include Lucky Dog®, for pet products; Adjust-A-Gate™, Fit-Right®, Perimeter Patrol®, Infinity Euro Fence, and Lifetime Post™ for gates and fencing; MyEcoWorld® for sustainable bag products; and Early Start, Spring Gardner™, Greenline®, and Weatherguard for greenhouses.  Additional information about the Company and its products can be found the Company's website at www.jewettcameron.com.

Forward-looking Statements

The information in this release contains certain forward-looking statements that anticipate future trends and events.  These statements are based on certain assumptions that may prove to be erroneous and are subject to certain risks, including but not limited to, the uncertainties of the Company's new product introductions, the risks of increased competition and technological change in the Company's industry, and other factors detailed in the Company's SEC filings.  Accordingly, actual results may differ, possibly materially, from predictions contained herein.

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)



November 30,

2023


August 31,

2023





ASSETS






Current assets






  Cash and cash equivalents

$

3,558,168


$

83,696

  Accounts receivable, net of allowance of $0 (August 31, 2023 - $0)


3,365,430



5,634,924

  Inventory, net of allowance of $410,325 (August 31, 2023 - $497,884)


17,513,417



18,339,048

  Prepaid expenses


613,358



630,788







  Total current assets


25,050,373



24,688,456







Property, plant and equipment, net


4,545,687



4,655,427







Intangible assets, net


112,847



134,845







Deferred tax assets


229,062



319,875







Total assets

$

29,937,969


$

29,798,603







LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities












  Accounts payable

$

2,802,837


$

2,181,194

  Bank indebtedness


-



1,259,259

  Income taxes payable


349,745



147,629

  Accrued liabilities


1,396,519



2,113,194







Total liabilities


4,549,101



5,701,276







Stockholders' equity






  Capital stock

    Authorized

      21,567,564 common shares, no par value

      10,000,000 preferred shares, no par value

    Issued

      3,498,899 common shares (August 31, 2023 – 3,498,899)


825,468



825,468

  Additional paid-in capital


765,055



765,055

  Retained earnings


23,798,345



22,506,804







  Total stockholders' equity


25,388,868



24,097,327







  Total liabilities and stockholders' equity

$

29,937,969


$

29,798,603

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)



Three Months

Ended

November 30,

2023


Three Months

Ended

November 30,

2022







SALES

$

9,805,841


$

12,577,500







COST OF SALES


7,849,760



9,717,800







GROSS PROFIT


1,956,081



2,859,700







OPERATING EXPENSES






  Selling, general and administrative expenses


948,481



826,807

  Depreciation and amortization


97,903



111,536

  Wages and employee benefits


1,698,920



1,928,155









2,745,305



2,866,498







Loss from operations


(789,224)



(6,798)







OTHER ITEMS






Gain on sale of property, plant and equipment


89,655



-

Other income


2,450,000



-

Interest expense


(6,855)



(86,552)







Total other items


2,532,800



(86,552)







Income (loss) before income taxes


1,743,576



(93,350)







Income tax (expense) recovery


(452,035)



19,590







Net income (loss)

$

1,291,541


$

(73,760)







Basic income (loss) per common share

$

0.37


$

(0.02)







Diluted income (loss) per common share

$

0.37


$

(0.02)







Weighted average number of common shares outstanding:






  Basic


3,498,899



3,496,202

  Diluted


3,498,899



3,496,202

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)



Three Months

Ended

November 30,

2023


Three Months

Ended

November 30,

2022







CASH FLOWS FROM OPERATING ACTIVITIES






Net income (loss)

$

1,291,541


$

(73,760)

Items not involving an outlay of cash:






    Depreciation and amortization


97,903



111,536

    Stock-based compensation expense


-



23,303

    Gain on sale of property, plant and equipment


(89,655)




    Write-down of intangible assets


21,790




    Deferred income taxes


90,813



(20,002)







Changes in non-cash working capital items:






    Decrease in accounts receivable


2,269,494



1,954,249

    Decrease (increase) in inventory


825,631



(1,370,146)

    Decrease in prepaid expenses


17,430



488,461

    Decrease in prepaid income taxes


-



412

    (Decrease) in accounts payable and accrued liabilities


(95,032)



(419,811)

    Increase in income taxes payable


202,116



-







Net cash provided by (used by) operating activities


4,632,031



694,242







CASH FLOWS FROM INVESTING ACTIVITIES






    Proceeds on sale of property, plant and equipment


101,700



-

    Purchase of property, plant and equipment


-



(36,223)







Net cash provided by (used in) investing activities


101,700



(36,223)







CASH FLOWS FROM FINANCING ACTIVITIES






    (Repayment of) proceeds from bank indebtedness


(1,259,259)



600,000







Net cash (used) provided by financing activities


(1,259,259)



600,000







Net increase in cash


3,474,472



1,258,019







Cash, beginning of period


83,696



484,463







Cash, end of period

$

3,558,168


$

1,742,482

 

Contact: Chad Summers, President & CEO, (503) 647-0110

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SOURCE Jewett-Cameron Trading Company Ltd.

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