NORTH PLAINS, Ore.,
Nov. 12, 2020 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today
reported financial results for its fourth quarter and fiscal year
ended August 31, 2020.
For the fiscal year ended August 31,
2020, Jewett-Cameron had sales of $44.9 million and net income of $2,784,525, or $0.77 per share, compared to sales of $45.4
million and net income of $2,100,452,
or $0.50 per share, for fiscal
2019.
Sales for the fourth quarter of fiscal 2020 totaled $14.0 million compared to sales of $11.8 million in Q4 2019. Net income was
$1,568,436, or $0.43 per share, compared to net income of
$532,918, or $0.13 per share, in the fourth quarter of fiscal
2019.
"2020 has been a year to further invest in our core businesses
by adding to our facilities, staff, products and brand awareness,"
said CEO Charlie Hopewell. "However,
the COVID-19 pandemic presented tremendous challenges beginning in
January. Due to our strict safety protocols, we have had no cases
of COVID-19 among our personnel and we have been able to operate
effectively throughout calendar 2020 to date. This allowed us to
meet the increased demand for certain of our products during the
second half of fiscal 2020, particularly in our DIY and pet
lines."
As of August 31, 2020, the
Company's cash position was $3.8
million, and currently there is no borrowing against its
$3.0 million line of credit. During
fiscal 2020, the Company privately repurchased for cancelation a
total of 490,120 common shares from two large shareholders,
including an officer and director of the Company, at a price of
$7.89 per share. The total cost
of the share repurchases was $3,867,046.
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 patented and patent pending specialty metal
products, wholesale distribution of wood products, and seed
processing and sales. The Company's brands include Lucky Dog,
Animal House and AKC licensed products in the expanding pet market;
fencing products under the Adjust-A-Gates, Fit-Right, Perimeter
Patrol, and INFINITY Euro fence systems brands; Early Start,
Spring Gardner, and Weatherguard for
greenhouses; and TrueShade for patio umbrellas, furniture covers
and canopies. 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
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,801,037
|
|
$
|
9,652,310
|
|
Accounts
receivable, net of allowance
of $Nil (August 31, 2019 -
$Nil)
|
|
6,274,426
|
|
|
2,835,952
|
|
Inventory, net
of allowance
of $65,000 (August 31,
2019 - $119,357)
|
|
9,198,146
|
|
|
6,377,805
|
|
Note
receivable
|
|
-
|
|
|
1,197
|
|
Prepaid
expenses
|
|
1,036,128
|
|
|
393,539
|
|
Prepaid income
taxes
|
|
-
|
|
|
223,420
|
|
|
|
|
|
|
|
Total current
assets
|
|
20,309,737
|
|
|
19,484,223
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
2,967,565
|
|
|
2,727,406
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
659
|
|
|
3,048
|
|
|
|
|
|
|
|
Total
assets
|
$
|
23,277,961
|
|
$
|
22,214,677
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,095,061
|
|
$
|
410,027
|
|
Current portion
of notes payable
|
|
342,326
|
|
|
-
|
|
Income taxes
payable
|
|
40,596
|
|
|
-
|
|
Accrued
liabilities
|
|
2,016,300
|
|
|
1,312,580
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
3,494,283
|
|
|
1,722,607
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
Notes
payable
|
|
338,381
|
|
|
-
|
|
|
|
|
|
|
|
Deferred tax
liability
|
|
96,952
|
|
|
61,204
|
|
|
|
|
|
|
|
Total
liabilities
|
|
3,929,616
|
|
|
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
|
|
17,908,354
|
|
|
18,875,256
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
19,348,345
|
|
|
20,430,866
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
23,277,961
|
|
$
|
22,214,677
|
|
JEWETT-CAMERON
TRADING COMPANY LTD. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Expressed in U.S.
Dollars)
|
|
YEARS ENDED AUGUST
31
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
$
|
44,945,263
|
|
$
|
45,446,362
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
32,472,080
|
|
|
35,481,931
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
12,473,183
|
|
|
9,964,431
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
2,502,989
|
|
|
2,127,296
|
|
Depreciation and
amortization
|
|
217,712
|
|
|
191,819
|
|
Wages and employee
benefits
|
|
5,894,346
|
|
|
4,907,766
|
|
|
|
|
|
|
|
|
8,615,047
|
|
|
7,226,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
3,858,136
|
|
|
2,737,550
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
Gain on sale of
property, plant and equipment
|
|
6,600
|
|
|
105,366
|
|
Interest and other
income
|
|
24,420
|
|
|
45,228
|
|
|
31,020
|
|
|
150,594
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
3,889,156
|
|
|
2,888,144
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
|
|
|
|
Current
|
|
1,068,883
|
|
|
808,341
|
|
Deferred
(recovery)
|
|
35,748
|
|
|
(20,649)
|
|
|
|
|
|
|
|
Net income for the
year
|
$
|
2,784,525
|
|
$
|
2,100,452
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.77
|
|
$
|
0.50
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
0.77
|
|
$
|
0.50
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
3,623,413
|
|
|
4,233,304
|
|
Diluted
|
|
3,623,413
|
|
|
4,233,304
|
|
JEWETT-CAMERON
TRADING COMPANY LTD. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Expressed in U.S.
Dollars)
|
|
YEARS ENDED AUGUST
31
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
|
|
|
|
|
|
Net income for the
year
|
$
|
2,784,525
|
|
$
|
2,100,452
|
|
Items not affecting
cash:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
217,712
|
|
|
191,819
|
|
(Gain) on sale of
property, plant and equipment
|
|
(6,600)
|
|
|
(105,366)
|
|
Deferred income
taxes
|
|
35,748
|
|
|
(20,649)
|
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
|
(Increase) decrease in
accounts receivable
|
|
(3,438,474)
|
|
|
1,316,540
|
|
Decrease in note
receivable
|
|
1,197
|
|
|
2,803
|
|
(Increase) decrease in
inventory
|
|
(2,820,341)
|
|
|
3,425,392
|
|
(Increase) in prepaid
expenses
|
|
(642,589)
|
|
|
(46,288)
|
|
Decrease (increase) in
prepaid income taxes
|
|
223,420
|
|
|
(109,110)
|
|
Increase (decrease) in
accounts payable and accrued liabilities
|
|
1,388,754
|
|
|
(449,692)
|
|
Increase in income
taxes payable
|
|
40,596
|
|
|
-
|
|
|
|
|
|
|
|
Net cash (used by)
provided by operating activities
|
|
(2,216,052)
|
|
|
6,305,901
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES
|
|
|
|
|
|
|
Proceeds on sale of
property, plant and equipment
|
|
400
|
|
|
324,675
|
|
Purchase of property,
plant and equipment
|
|
(449,282)
|
|
|
(32,732)
|
|
|
|
|
|
|
|
Net cash (used in)
provided by investing activities
|
|
(448,882)
|
|
|
291,943
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES
|
|
|
|
|
|
|
Increase in notes
payable
|
|
680,707
|
|
|
-
|
|
Issuance of common
stock
|
|
-
|
|
|
18,444
|
|
Redemption of common
stock
|
|
(3,867,046)
|
|
|
(3,061,441)
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
(3,186,339)
|
|
|
(3,042,997)
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash
|
|
(5,851,273)
|
|
|
3,554,847
|
|
|
|
|
|
|
|
Cash, beginning of
year
|
|
9,652,310
|
|
|
6,097,463
|
|
|
|
|
|
|
|
Cash, end of
year
|
$
|
3,801,037
|
|
$
|
9,652,310
|
Contact: Charlie Hopewell,
President & CEO, (503) 647-0110
View original
content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-fiscal-2020-financial-results-301172356.html
SOURCE Jewett-Cameron Trading Company Ltd.