Jewett-Cameron Announces 1st Quarter Financial Results

Rhea-AI Summary

Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) reported Q1 fiscal 2022 results, achieving $12.9 million in sales, up 25% from $10.3 million in Q1 fiscal 2021. However, the company posted a net loss of ($391,141), which translates to ($0.11) per share, a decline from the previous year's net income of $488,527 or $0.14 per share. CEO Chad Summers noted that while demand remains strong, increased raw material costs and logistical issues are compressing margins, despite recent price increases. As of November 30, 2021, cash stood at $1.2 million with a $5 million draw on its $10 million credit line.

Positive

• Sales increased by 25% year-over-year.
• Strong demand for products continues.

Negative

• Net loss of ($391,141) compared to prior year's profit.
• Higher raw material costs and logistical issues reduced margins.

NORTH PLAINS, Ore., Jan. 14, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2022 ended November 30, 2021.

Sales for the first quarter of fiscal 2022 totaled $12.9 million compared to sales of $10.3 million for the first quarter of fiscal 2021. Net loss for the current quarter was ($391,141), or ($0.11) per share, compared to net income of $488,527, or $0.14 per share, in the year-ago quarter.

"Our sales quarter over quarter increased by 25%, reflecting the continued strong demand for our products, but higher costs for raw materials and global logistical issues significantly reduced our margins," said CEO Chad Summers. "In response, we have now successfully increased our selling prices with our customers, but these inflationary pressures will remain an issue affecting our margins throughout fiscal 2022."

As of November 30, 2021, the Company's cash position was approximately $1.2 million, and there was $5.0 million borrowed against its $10.0 million line of credit. Based on the timing of accounts receivable and the unused portion of the line of credit, the Company believes it has sufficient working capital available for the remainder of fiscal 2022.

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®, 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)
	November 30,2021			August 31,2021
ASSETS
Current assets
Cash and cash equivalents	$	1,235,445		$	1,184,313
Accounts receivable, net of allowance of $0 (August 31, 2021 - $0)		5,806,987			7,086,503
Inventory, net of allowance of $250,000 (August 31, 2021 - $250,000)		17,223,927			14,391,365
Prepaid expenses		2,267,341			2,305,820
Prepaid income taxes		355,163			252,958
Total current assets		26,888,863			25,220,959
Property, plant and equipment, net		4,407,548			3,886,543
Intangible assets, net		30,629			30,897
Total assets	$	31,327,040		$	29,138,399
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	2,084,438		$	1,349,677
Bank indebtedness		5,000,000			3,000,000
Accrued liabilities		1,594,834			1,798,088
Total current liabilities		8,679,272			6,147,765
Deferred tax liability		125,834			116,945
Total liabilities		8,805,106			6,264,710
Stockholders' equity
Capital stock     Authorized       21,567,564 common shares, no par value       10,000,000 preferred shares, no par value     Issued       3,492,842 common shares (August 31, 2021 –3,489,161)		824,039			823,171
Additional paid-in capital		725,729			687,211
Retained earnings		20,972,166			21,363,307
Total stockholders' equity		22,521,934			22,873,689
Total liabilities and stockholders' equity	$	31,327,040		$	29,138,399

 

JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited)
	Three Months Ended November 30, 2021			Three Months Ended November 30, 2020
SALES	$	12,917,724		$	10,316,284
COST OF SALES		10,452,861			7,353,385
GROSS PROFIT		2,464,863			2,962,899
OPERATING EXPENSES
Selling, general and administrative expenses		988,288			694,628
Depreciation and amortization		69,638			50,529
Wages and employee benefits		1,874,118			1,593,959
		2,932,044			2,339,116
(Loss) income from operations		(467,181)			623,783
OTHER ITEMS
Other income		3,000			3,000
Interest expense		(20,276)			-
Total other items		(17,276)			3,000
(Loss) income before income taxes		(484,457)			626,783
Income tax recovery (expense)		93,316			(138,256)
Net (loss) income	$	(391,141)		$	488,527
Basic (loss) earnings per common share	$	(0.11)		$	0.14
Diluted (loss) earnings per common share	$	(0.11)		$	0.14
Weighted average number of common shares outstanding:
Basic		3,491,103			3,481,162
Diluted		3,491,103			3,481,162

 

JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited)
	Three Months Ended November 30, 2021			Three Months Ended November 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(391,141)		$	488,527
Items not involving an outlay of cash:
Depreciation and amortization		69,638			50,529
Stock-based compensation expense		39,386			-
Deferred income taxes		8,889			(40,784)
Changes in non-cash working capital items:
Decrease in accounts receivable		1,279,516			2,027,469
(Increase) in inventory		(2,832,562)			(223,013)
Decrease in prepaid expenses		38,479			196,255
Increase (decrease) in accounts payable and accrued liabilities		531,507			(454,861)
(Increase) in prepaid income taxes		(102,205)			-
Increase in income taxes payable		-			179,040
Net cash (used by) provided by operating activities		(1,358,493)			2,223,162
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(590,375)			(184,247)
Net cash used in investing activities		(590,375)			(184,247)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank indebtedness		2,000,000			-
Net cash provided by financing activities		2,000,000			-
Net increase in cash		51,132			2,038,915
Cash, beginning of period		1,184,313			3,801,037
Cash, end of period	$	1,235,445		$	5,839,952

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

 

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SOURCE Jewett-Cameron Trading Company Ltd.

FAQ

What were Jewett-Cameron Trading Company's Q1 2022 sales figures?

Jewett-Cameron reported Q1 sales of $12.9 million, a 25% increase from $10.3 million in Q1 2021.

What is the net income for JCTCF in Q1 2022?

The company reported a net loss of ($391,141) or ($0.11) per share for Q1 2022.

How did Jewett-Cameron respond to increased costs in Q1 2022?

The company successfully increased selling prices to offset higher raw material costs and logistical challenges.

What is the outlook for Jewett-Cameron Trading Company regarding margins?

CEO Chad Summers indicated that inflationary pressures are expected to affect margins throughout fiscal 2022.

What is the cash position of JCTCF as of November 30, 2021?

As of November 30, 2021, Jewett-Cameron had a cash position of approximately $1.2 million.