Jewett-Cameron Announces Fiscal 2023 Financial Results

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Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) reported a net loss of ($0.01) per share for the fiscal year ended August 31, 2023, with sales of $54.3 million. In Q4 2023, the company had sales of $14.6 million and a net income of $0.08 per share. CEO Chad Summers attributed the lower results to extended winter weather and inflationary pressures. The company has ceased cleaning operations at its Jewett-Cameron Seed segment and is focusing on launching new sustainable bag products.

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• None.

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• Sales decreased from $62.9 million in fiscal 2022 to $54.3 million in fiscal 2023. Net income declined from $1,164,123 in fiscal 2022 to a net loss of ($20,626) in fiscal 2023. The company's cash position was approximately $84 thousand as of August 31, 2023, and it had borrowed $1.26 million against its $10 million line of credit.

NORTH PLAINS, Ore., Nov. 28, 2023 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2023.

For the fiscal year ended August 31, 2023, Jewett-Cameron had sales of $54.3 million and a net loss of ($20,626), or ($0.01) per share, compared to sales of $62.9 million and net income of $1,164,123, or $0.33 per share, for fiscal 2022.

Sales for the fourth quarter of fiscal 2023 totaled $14,6 million compared to sales of $15.0 million in Q4 2022. Net income in the current fourth quarter was $290,221, or $0.08 per share, compared to a net loss of ($208,666), or ($0.06) per share, in the fourth quarter of fiscal 2022.

"Our results were hurt by the extended winter weather across the US which delayed, and then reduced, purchases of our outdoor lines" said CEO Chad Summers. "Inflationary pressures also negatively affected results as consumers reduced their discretionary spending, particularly on home improvement and pet products. During the year, we improved our operations and favorably adjusted key supply and logistic agreements. We are continuing the launch of our new MyEcoWorld® sustainable bag products as a less seasonal product line while firmly focusing on our strengths and core product lines."

The Company has successfully ended cleaning operations at its Jewett-Cameron Seed segment effective August 31, 2023. Full closure of the facility is expected to be completed by the end of calendar 2023.

As of August 31, 2023, the Company's cash position was approximately $84 thousand and had borrowed $1.26 million against its $10 million line of credit. Subsequent to the end of the fiscal year, the Company repaid the remaining balance borrowed against the line of credit.

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. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) AS OF AUGUST 31
	2023					2022
ASSETS
Current assets
Cash and cash equivalents	$	83,696				$		484,463
Accounts receivable, net of allowance of $0 (August 31, 2022 - $0)		5,634,924						7,191,646
Inventory, net of allowance of $497,884 (August 31, 2022 - $800,000)		18,339,048						20,632,313
Prepaid expenses		630,788						1,112,575
Prepaid income taxes		-						208,963
Total current assets		24,688,456						29,629,960
Property, plant and equipment, net		4,655,427						4,828,420
Intangible assets, net		134,845						33,358
Deferred tax assets		319,875						24,998
Total assets	$	29,798,603				$		34,516,736
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	2,181,194				$		1,566,047
Bank indebtedness		1,259,259						7,000,000
Income taxes payable		147,629						-
Accrued liabilities		2,113,194						1,856,039
Total liabilities		5,701,276						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       3,498,899 common shares (August 31, 2022 – 3,495,342)		825,468						824,629
Additional paid-in capital		765,055						742,591
Retained earnings		22,506,804						22,527,430
Total stockholders' equity		24,097,327						24,094,650
Total liabilities and stockholders' equity	$	29,798,603				$		34,516,736

 

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) YEARS ENDED AUGUST 31
	2023			2022
SALES	$	54,289,303		$	62,901,831
COST OF SALES		42,042,178			49,108,772
GROSS PROFIT		12,247,125			13,793,059
OPERATING EXPENSES
Selling, general and administrative		3,973,055			4,008,166
Depreciation and amortization (notes 4, 5)		397,922			319,617
Wages and employee benefits		7,445,464			7,495,723
		11,816,441			11,823,506
Income from operations		430,684			1,969,553
OTHER ITEMS
Gain on sale of property, plant and equipment		70,250			4,526
Other income (loss) (note 14)		-			(230,034)
Interest expense		(458,463)			(163,045)
		(388,213)			(388,553)
Income before income taxes		42,471			1,581,000
Income taxes (note 6)
Current		(63,097)			(558,820)
Deferred recovery		-			141,943
Net (loss) income for the year	$	(20,626)		$	1,164,123
Basic (loss) earnings per common share	$	(0.01)		$	0.33
Diluted (loss) earnings per common share	$	(0.01)		$	0.33
Weighted average number of common shares outstanding:
Basic		3,498,236			3,493,807
Diluted		3,498,236			3,493,807

 

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) YEARS ENDED AUGUST 31
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income for the year	$	(20,626)		$	1,164,123
Items not affecting cash:
Depreciation and amortization		397,922			319,617
Stock-based compensation expense		23,303			56,838
Gain on sale of property, plant and equipment		(70,250)			(4,526)
Deferred income taxes		(294,877)			(141,943)
Changes in non-cash working capital items:
Decrease (increase) in accounts receivable		1,556,722			(105,143)
Decrease (increase) in inventory		2,293,265			(6,240,948)
Decrease in prepaid expenses		481,787			1,193,245
Decrease in prepaid income taxes		208,963			43,995
Increase in accounts payable and accrued liabilities		872,302			274,321
Increase in income taxes payable		147,629			-
Net cash and cash equivalents provided by (used by) operating activities		5,596,140			(3,440,421)
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in intangible assets		(102,500)			(3,535)
Proceeds on sale of property, plant and equipment		70,250			-
Purchase of property, plant and equipment		(223,916)			(1,255,894)
Net cash and cash equivalents used in investing activities		(256,166)			(1,259,429)
CASH FLOWS FROM FINANCING ACTIVITIES
(Repayment) proceeds from bank indebtedness		(5,740,741)			4,000,000
Net cash and cash equivalents provided by (used in) financing activities		(5,740,741)			4,000,000
Net (decrease) in cash and cash equivalents		(400,767)			(699,850)
Cash and cash equivalents, beginning of year		484,463			1,184,313
Cash and cash equivalents, end of year	$	83,696		$	484,463

 

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

 

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SOURCE Jewett-Cameron Trading Company Ltd.

FAQ

What were Jewett-Cameron Trading Company's sales for the fiscal year ended August 31, 2023?

Jewett-Cameron Trading Company reported sales of $54.3 million for the fiscal year ended August 31, 2023.

What was Jewett-Cameron Trading Company's net loss per share for the fiscal year ended August 31, 2023?

Jewett-Cameron Trading Company reported a net loss of ($0.01) per share for the fiscal year ended August 31, 2023.

What were Jewett-Cameron Trading Company's sales for the fourth quarter of fiscal 2023?

Jewett-Cameron Trading Company had sales of $14.6 million in the fourth quarter of fiscal 2023.

What was Jewett-Cameron Trading Company's net income per share for the fourth quarter of fiscal 2023?

Jewett-Cameron Trading Company reported a net income of $0.08 per share for the fourth quarter of fiscal 2023.

What factors negatively affected Jewett-Cameron Trading Company's results?

CEO Chad Summers attributed the lower results to extended winter weather and inflationary pressures that negatively affected consumer discretionary spending, particularly on home improvement and pet products.

What are the key products and brands of Jewett-Cameron Trading Company?

Jewett-Cameron Trading Company's brands include Lucky Dog®, Adjust-A-Gate™, Fit-Right®, Perimeter Patrol®, Infinity Euro Fence, Lifetime Post™, MyEcoWorld®, Early Start, Spring Gardner™, Greenline®, and Weatherguard.