Jewett-Cameron Announces 1st Quarter Financial Results

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 4^th 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.