Jewett-Cameron Announces Fiscal 2022 Financial Results

Rhea-AI Summary

Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) reported its financial results for the fiscal year ending August 31, 2022. Sales increased to $62.9 million from $57.5 million in the previous year, but net income fell to $1.16 million ($0.33 per share) from $3.45 million ($0.99 per share). The fourth quarter showed stagnant sales at $15.0 million and a net loss of ($208,666) (($0.06) per share), compared to a profit in Q4 2021. The company anticipates lower purchasing in early fiscal 2023 due to sufficient inventory.

Positive

• Sales increased to $62.9 million for fiscal 2022, compared to $57.5 million in fiscal 2021.
• Despite challenges, units sold year-over-year increased in multiple categories.

Negative

• Net income declined significantly to $1.16 million ($0.33 per share) from $3.45 million ($0.99 per share) year-over-year.
• The fourth quarter net loss of ($208,666) contrasts sharply with a net income of $605,114 in Q4 2021.

NORTH PLAINS, Ore., Nov. 29, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2022.

For the fiscal year ended August 31, 2022, Jewett-Cameron had sales of $62.9 million and net income of $1,164,123, or $0.33 per share, compared to sales of $57.5 million and net income of $3,454,953, or $0.99 per share, for fiscal 2021.

Sales for the fourth quarter of fiscal 2022 totaled $15.0 million compared to sales of $15.1 million in Q4 2021. Net loss in the current fourth quarter was ($208,666), or ($0.06) per share, compared to net income of $605,114, or $0.18 per share, in the fourth quarter of fiscal 2021.

"Jewett-Cameron has weathered the unprecedented supply chain challenges well over the past year given the extraordinary circumstances. We sold more units year over year in multiple categories", said CEO Chad Summers. "Some products faced unique challenges that reduced their sales, but we have already met with customers to correct the issues going forward. We are excited to build upon our successes in the year ahead."

As of August 31, 2022, the Company's cash position was approximately $484 thousand and had borrowed $7 million against its $10 million line of credit. The Company expects to purchase less goods in the first two quarters of fiscal 2023 than it typically does as its current inventory position will be sufficient to carry the Company into its historically busy season in the final two quarters of the fiscal year.

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. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) AS OF AUGUST 31
	2022					2021
ASSETS
Current assets
Cash and cash equivalents	$	484,463				$		1,184,313
Accounts receivable, net of allowance of $0 (August 31, 2021 - $0)		7,191,646						7,086,503
Inventory, net of allowance of $800,000 (August 31, 2021 - $250,000)		20,632,313						14,391,365
Prepaid expenses		1,112,575						2,305,820
Prepaid income taxes		208,963						252,958
Total current assets		29,629,960						25,220,959
Property, plant and equipment, net		4,828,420						3,886,543
Intangible assets, net		33,358						30,897
Deferred tax assets		24,998						-
Total assets	$	34,516,736				$		29,138,399
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	1,566,047				$		1,349,677
Bank indebtedness		7,000,000						3,000,000
Accrued liabilities		1,856,039						1,798,088
Total current liabilities		10,422,086						6,147,765
Deferred tax liability		-						116,945
Total liabilities		10,422,086						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       3,495,342 common shares (August 31, 2021 –3,489,161)		824,629						823,171
Additional paid-in capital		742,591						687,211
Retained earnings		22,527,430						21,363,307
Total stockholders' equity		24,094,650						22,873,689
Total liabilities and stockholders' equity	$	34,516,736				$		29,138,399

 

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) YEARS ENDED AUGUST 31
	2022			2021
SALES	$	62,901,831		$	57,501,543
COST OF SALES		49,108,772			43,354,897
GROSS PROFIT		13,793,059			14,146,646
OPERATING EXPENSES
Selling, general and administrative		4,008,166			3,204,945
Depreciation and amortization		319,617			244,279
Wages and employee benefits		7,495,723			6,957,730
		11,823,506			10,406,954
Income from operations		1,969,553			3,739,692
OTHER ITEMS
Gain on sale of property, plant and equipment		4,526			-
Other income (loss)		(230,034)			12,450
Interest expense		(163,045)			(15,321)
Gain on extinguishment of debt		-			687,387
		(388,553)			684,516
Income before income taxes		1,581,000			4,424,208
Income taxes (note 6)
Current		(558,820)			(949,262)
Deferred recovery (expense)		141,943			(19,993)
Net income for the year	$	1,164,123		$	3,454,953
Basic earnings per common share	$	0.33		$	0.99
Diluted earnings per common share	$	0.33		$	0.99
Weighted average number of common shares outstanding:
Basic		3,493,807			3,486,537
Diluted		3,493,807			3,486,537

 

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) YEARS ENDED AUGUST 31
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the year	$	1,164,123		$	3,454,953
Items not affecting cash:
Depreciation and amortization		319,617			244,279
Stock-based compensation expense		56,838			70,391
(Gain) on sale of property, plant and equipment		(4,526)			-
Gain on extinguishment of debt		-			(680,707)
Deferred income taxes		(141,943)			19,993
Changes in non-cash working capital items:
(Increase) in accounts receivable		(105,143)			(812,077)
(Increase) in inventory		(6,240,948)			(5,193,219)
Decrease (increase) in prepaid expenses		1,193,245			(1,269,692)
Decrease (increase) in prepaid income taxes		43,995			(252,959)
Increase in accounts payable and accrued liabilities		274,321			36,404
(Decrease) in income taxes payable		-			(40,596)
Net cash (used by) operating activities		(3,440,421)			(4,423,230)
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in intangible assets		(3,535)			(30,755)
Purchase of property, plant and equipment		(1,255,894)			(1,162,739)
Net cash used in investing activities		(1,259,429)			(1,193,494)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank indebtedness		4,000,000			3,000,000
Net cash provided by financing activities		4,000,000			3,000,000
Net (decrease) in cash		(699,850)			(2,616,724)
Cash, beginning of year		1,184,313			3,801,037
Cash, end of year	$	484,463		$	1,184,313

 

Contact: Chad Summers, Chief Executive Officer, (503) 647-0110

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SOURCE Jewett-Cameron Trading Company Ltd.

FAQ

What were Jewett-Cameron's sales and net income for fiscal 2022?

Jewett-Cameron had sales of $62.9 million and net income of $1.16 million for fiscal 2022.

How did Jewett-Cameron's fourth quarter results compare to the previous year?

In Q4 2022, sales were $15.0 million, with a net loss of $208,666, compared to $15.1 million in sales and net income of $605,114 in Q4 2021.

What is the outlook for Jewett-Cameron in fiscal 2023?

Jewett-Cameron expects to purchase less inventory in the first half of fiscal 2023 due to sufficient current stock.