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Jewett-Cameron Announces 3rd Quarter Financial Results

JCTC

NORTH PLAINS, Ore., July 13, 2023 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine-month periods of fiscal 2023 ended May 31, 2023.

Sales for the third quarter of fiscal 2023 totaled approximately $18.9 million compared to sales of $20.9 million for the third quarter of fiscal 2022. Income from operations was $1,251,019 compared to $2,019,644 for the third quarter ended May 31, 2022. Net income after other items and income taxes for the current quarter was $734,951, or $0.21 per share, compared to net income of $1,494,111, or $0.43 per share, in the same quarter of 2022.

For the nine months ended May 31, 2023, Jewett-Cameron reported sales of approximately $39.67 million compared to sales of $47.90 million for the nine months ended May 31, 2022. Net loss was ($310,847), or ($0.09) per share, compared to net income of $1,372,789, or $0.39 per share, for the first nine months of fiscal 2022.

"The winter weather which covered much of the US into April had a negative effect on our 3rd quarter sales, as many of our customers delayed, and then reduced, purchases of our outdoor products," said CEO Chad Summers. "We soft-launched our new MyEcoWorld® sustainable bag products in the 3rd quarter, with full launch to occur in the 4th quarter. This new line is less seasonal than our other products and has the potential to grow into a significant segment of our business as consumers seek alternatives to traditional hydrocarbon derived plastics."

During the 3rd quarter, the Company announced it has decided to close its Jewett-Cameron Seed segment effective August 31, 2023. The wind-down of operations has been proceeding smoothly, and full closure of the facility is expected to be completed by the end of calendar 2023.

As of May 31, 2023, the Company's cash position was approximately $2.7 million, and there was $8.0 million borrowed against its $12.0 million line of credit, which was temporarily increased by $2.0 million during the 3rd quarter. Subsequent to the end of the period, the Company repaid an additional $1.0 million.

About Jewett-Cameron Trading Company Ltd.

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 products, wholesale distribution of wood products, and seed processing and sales. 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; 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)



May 31,

2023


August 31,

2022







ASSETS






Current assets






Cash and cash equivalents

$

2,716,051


$

484,463

Accounts receivable, net of allowance of $0 (August 31, 2022 - $0)


7,530,135



7,191,646

Inventory, net of allowance of $449,707 (August 31, 2022 - $800,000)


20,529,230



20,632,313

Prepaid expenses


870,148



1,112,575

Prepaid income taxes


-



208,963







Total current assets


31,645,564



29,629,960







Property, plant and equipment, net


4,745,987



4,828,420







Intangible assets, net


134,399



33,358







Deferred tax assets


391,564



24,998







Total assets

$

36,917,514


$

34,516,736







LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities












Accounts payable

$

2,631,045


$

1,566,047

Bank indebtedness


8,000,000



7,000,000

Accrued liabilities


2,332,148



1,856,039

Income taxes payable


147,215



-







Total liabilities


13,110,408



10,422,086







Stockholders' equity






Capital stock

Authorized

21,567,564 common shares, no par value

10,000,000 preferred shares, no par value

Issued

3,498,899common shares (August 31, 2022 –3,495,342)


825,468



824,629

Additional paid-in capital


765,055



742,591

Retained earnings


22,216,583



22,527,430







Total stockholders' equity


23,807,106



24,094,650







Total liabilities and stockholders' equity

$

36,917,514


$

34,516,736

JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)



Three Month

Period Ended

May 31,


Nine Month

Period Ended

May 31,


2023

2022


2023

2022











SALES

$

18,945,738

$

20,922,190


$

39,666,658

$

47,900,665











COST OF SALES


14,532,366


15,569,380



30,473,044


36,658,766











GROSS PROFIT


4,413,372


5,352,810



9,193,614


11,241,899











OPERATING EXPENSES










Selling, general and administrative expenses


961,566


1,125,692



2,884,463


2,798,094

Depreciation and amortization


99,962


83,291



299,577


237,001

Wages and employee benefits


2,100,825


2,124,183



5,975,438


5,957,601













3,162,353


3,333,166



9,159,478


8,992,696











Income from operations


1,251,019


2,019,644



34,136


2,249,203











OTHER ITEMS










Other income


-


903



-


(294,097)

Interest expense


(152,905)


(47,972)



(353,987)


(98,868)



(152,905)


(47,069)



(353,987)


(392,965)











Income (loss) before income taxes


1,098,114


1,972,575



(319,851)


1,856,238











Income tax expense (recovery)


(363,163)


(478,464)



9,004


(483,449)











Net income (loss)

$

734,951

$

1,494,111


$

(310,847)

$

1,372,789











Basic earnings per common share

$

0.21

$

0.43


$

(0.09)

$

0.39











Diluted earnings per common share

$

0.21

$

0.43


$

(0.09)

$

0.39











Weighted average number of common shares outstanding:










Basic


3,498,899


3,492,842



3,498,000


3,492,266

Diluted


3,498,899


3,492,842



3,498,000


3,492,266

JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)



Nine Month

Period Ended

May 31,


2023



2022







CASH FLOWS FROM OPERATING ACTIVITIES






Net (loss) income

$

(310,847)


$

1,372,789

Items not involving an outlay of cash:






Depreciation and amortization


299,577



237,001

Stock-based compensation expense


23,303



39,386

Deferred income tax expense


(366,566)



11,552







Changes in non-cash working capital items:






(Increase) in accounts receivable


(338,489)



(1,185,353)

Decrease (increase) in inventory


103,083



(5,507,438)

Decrease in prepaid expenses


242,427



48,244

Decrease in prepaid income taxes


208,963



249,082

Increase in accounts payable and accrued liabilities


1,541,107



692,233

Increase in income taxes payable


147,215



-







Net cash provided by (used in) operating activities


1,549,773



(4,042,504)







CASH FLOWS FROM INVESTING ACTIVITIES






Increase in intangible assets


(102,500)



-

Purchase of property, plant and equipment


(215,685)



(1,011,359)







Net cash (used in) investing activities


(318,185)



(1,011,359)







CASH FLOWS FROM FINANCING ACTIVITIES






Net proceeds and repayments from bank indebtedness


1,000,000



6,000,000







Net cash provided by financing activities


1,000,000



6,000,000







Net increase in cash


2,231,588



946,137







Cash, beginning of period


484,463



1,184,313







Cash, end of period

$

2,716,051


$

2,130,450

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

Cision View original content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-3rd-quarter-financial-results-301877068.html

SOURCE Jewett-Cameron Trading Company Ltd.

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