Jewett-Cameron Announces 3rd Quarter Financial Results

Rhea-AI Summary

Jewett-Cameron Trading Company (JCTCF) reported Q3 2020 sales of $16.2 million, down from $16.7 million in Q3 2019, while Q3 income from operations increased to $1.9 million from $1.5 million year-over-year. Net income rose to $1.4 million ($0.40/share) compared to $1.1 million ($0.27/share) in Q3 2019. For the nine months ending May 31, 2020, sales totaled $30.9 million, down from $33.6 million, with net income at $1.2 million ($0.33/share), down from $1.6 million ($0.36/share) in the prior year. The company reports a solid cash position of $3.2 million amid ongoing pandemic challenges.

Positive

• Net income for Q3 2020 was $1,396,973, or $0.40 per share, up from $1,098,210, or $0.27 per share in Q3 2019.
• Income from operations increased to $1,913,582 in Q3 2020, compared to $1,506,638 in Q3 2019.
• The company maintained a cash position of approximately $3.2 million without borrowing against its $3.0 million line of credit.

Negative

• Q3 2020 sales decreased to $16.2 million from $16.7 million in Q3 2019.
• Sales for the nine months ended May 31, 2020, fell to $30.9 million from $33.6 million for the same period in 2019.
• Net income for the nine months ending May 31, 2020, was down to $1,216,089 from $1,567,534 in the same nine months of 2019.

NORTH PLAINS, Ore., July 15, 2020 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine month periods of fiscal 2020 ended May 31, 2020.

Sales for the third quarter of fiscal 2020 totaled approximately $16.2 million compared to sales of $16.7 million for the third quarter of fiscal 2019. Income from operations was $1,913,582 compared to $1,506,638 for the third quarter ended May 31, 2019. Net income after other items and income taxes for the current quarter was $1,396,973, or $0.40 per share, compared to $1,098,210, or $0.27 per share, in the same quarter of 2019.

For the nine months ended May 31, 2020, Jewett-Cameron reported sales of $30.9 million compared to sales of $33.6 million for the nine months ended May 31, 2019. Net income was $1,216,089, or $0.33 per share, compared to net income of $1,567,534, or $0.36 per share, in the first nine months of fiscal 2019.

"The Company has been navigating the COVID-19 pandemic well to date, with our DIY and Pet Products performing solidly," said CEO Charlie Hopewell. "We are maintaining strict safety protocols across all our operations, and have no cases of COVID among any of our personnel. The pandemic has not changed our plans to introduce new products and continue our efforts to widen our offerings through both existing and new sales channels".

As of May 31, 2020, the Company's cash position was approximately $3.2 million, and there was no borrowing against its $3.0 million line of credit.

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 specialty metal products and wholesale distribution of wood products to home centers and other retailers located primarily in the United States. Greenwood Products 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-PRO is an importer and distributor of pneumatic air tools, industrial clamps, and the Avenger Products line of sawblades and other products. Jewett-Cameron Seed Company is a processor and distributor of agricultural seeds. JC USA provides professional and administrative services, including accounting and credit services, to its subsidiary companies.

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, 2020			August 31, 2019
ASSETS
Current assets
Cash and cash equivalents	$	3,269,289		$	9,652,310
Accounts receivable, net of allowance of $Nil (August 31, 2019 - $Nil)		6,880,459			2,835,952
Inventory, net of allowance of $32,538 (August 31, 2019 - $119,357)		6,786,087			6,377,805
Notes receivable		563,010			1,197
Prepaid expenses		1,336,080			393,539
Prepaid income taxes		121,734			223,420
Total current assets		18,956,659			19,484,223
Property, plant and equipment, net		2,774,912			2,727,406
Intangible assets, net		719			3,048
Total assets	$	21,732,290		$	22,214,677
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	1,520,610		$	410,027
Current portion of notes payable		302,536			-
Accrued liabilities		1,650,289			1,312,580
Total current liabilities		3,473,435			1,722,607
Long-term liabilities
Notes payable		378,171
Deferred tax liability		100,775			61,204
Total liabilities		3,952,381			1,783,811
Stockholders' equity
Capital stock
Authorized
21,567,564 common shares, without par value
10,000,000 preferred shares, without par value
Issued
3,481,162 common shares (August 31, 2019 – 3,971,282)		821,284			936,903
Additional paid-in capital		618,707			618,707
Retained earnings		16,339,918			18,875,256
Total stockholders' equity		17,779,909			20,430,866
Total liabilities and stockholders' equity	$	21,732,290		$	22,214,677

 

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,
	2020	2019		2020	2019
SALES	$	16,241,239	$	16,692,241		$	30,918,345	$	33,615,516
COST OF SALES		11,931,746		13,054,487			22,555,253		25,907,388
GROSS PROFIT		4,309,493		3,637,754			8,363,092		7,708,128
OPERATING EXPENSES
Selling, general and administrative expenses		706,079		759,708			2,118,999		1,721,743
Depreciation and amortization		54,781		47,141			160,992		143,413
Wages and employee benefits		1,635,051		1,324,267			4,343,412		3,799,700
		(2,395,911)		(2,131,116)			(6,623,403)		(5,664,856)
Income from operations		1,913,582		1,506,638			1,739,689		2,043,272
OTHER ITEMS
Gain on sale of property, plant and equipment		2,200		-			2,600		105,366
Interest and other income		3,217		7,033			21,414		33,368
		5,417		7,033			24,014		138,734
Income before income taxes		1,918,999		1,513,671			1,763,703		2,182,006
Income tax expense		(522,026)		(415,461)			(547,614)		(614,472)
Net income	$	1,396,973	$	1,098,210		$	1,216,089	$	1,567,534
Basic earnings per common share	$	0.40	$	0.27		$	0.33	$	0.36
Diluted earnings per common share	$	0.40	$	0.27		$	0.33	$	0.36
Weighted average number of common shares outstanding:
Basic

FAQ

What were the earnings results for Jewett-Cameron Trading Company (JCTCF) in Q3 2020?

In Q3 2020, Jewett-Cameron reported net income of $1,396,973, or $0.40 per share, compared to $1,098,210, or $0.27 per share in Q3 2019.

How did the sales of Jewett-Cameron (JCTCF) perform in the first nine months of fiscal 2020?

Sales for the nine months ended May 31, 2020, were $30.9 million, a decrease from $33.6 million during the same period in 2019.

What is the cash position of Jewett-Cameron Trading Company (JCTCF) as of May 31, 2020?

As of May 31, 2020, Jewett-Cameron had a cash position of approximately $3.2 million with no borrowings against its $3.0 million line of credit.