NORTH
PLAINS, Ore., July 13,
2023 /PRNewswire/ -- Jewett-Cameron Trading
Company Ltd. (NASDAQ: JCTCF) today reported financial results for
the third quarter and nine-month periods of fiscal 2023 ended
May 31, 2023.
Sales for the third quarter of fiscal 2023 totaled approximately
$18.9 million compared to sales of
$20.9 million for the third quarter
of fiscal 2022. Income from operations was $1,251,019 compared to $2,019,644 for the third quarter ended
May 31, 2022. Net income after other
items and income taxes for the current quarter was $734,951, or $0.21
per share, compared to net income of $1,494,111, or $0.43 per share, in the same quarter of 2022.
For the nine months ended May 31,
2023, Jewett-Cameron reported sales of approximately
$39.67 million compared to sales of
$47.90 million for the nine months
ended May 31, 2022. Net loss was
($310,847), or ($0.09) per share, compared to net income of
$1,372,789, or $0.39 per share, for the first nine months of
fiscal 2022.
"The winter weather which covered much of the US into April had
a negative effect on our 3rd quarter sales, as many of
our customers delayed, and then reduced, purchases of our outdoor
products," said CEO Chad Summers.
"We soft-launched our new MyEcoWorld® sustainable bag products
in the 3rd quarter, with full launch to occur in the
4th quarter. This new line is less seasonal than our
other products and has the potential to grow into a significant
segment of our business as consumers seek alternatives to
traditional hydrocarbon derived plastics."
During the 3rd quarter, the Company announced it has
decided to close its Jewett-Cameron
Seed segment effective August 31,
2023. The wind-down of operations has been proceeding
smoothly, and full closure of the facility is expected to be
completed by the end of calendar 2023.
As of May 31, 2023, the Company's
cash position was approximately $2.7
million, and there was $8.0
million borrowed against its $12.0
million line of credit, which was temporarily increased by
$2.0 million during the
3rd quarter. Subsequent to the end of the period, the
Company repaid an additional $1.0
million.
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®, 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. CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
|
|
|
May
31,
2023
|
|
August
31,
2022
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,716,051
|
|
$
|
484,463
|
Accounts
receivable, net of allowance of $0 (August 31, 2022 -
$0)
|
|
7,530,135
|
|
|
7,191,646
|
Inventory, net
of allowance of $449,707 (August 31, 2022 - $800,000)
|
|
20,529,230
|
|
|
20,632,313
|
Prepaid
expenses
|
|
870,148
|
|
|
1,112,575
|
Prepaid income
taxes
|
|
-
|
|
|
208,963
|
|
|
|
|
|
|
Total current
assets
|
|
31,645,564
|
|
|
29,629,960
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
4,745,987
|
|
|
4,828,420
|
|
|
|
|
|
|
Intangible assets,
net
|
|
134,399
|
|
|
33,358
|
|
|
|
|
|
|
Deferred tax
assets
|
|
391,564
|
|
|
24,998
|
|
|
|
|
|
|
Total
assets
|
$
|
36,917,514
|
|
$
|
34,516,736
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
2,631,045
|
|
$
|
1,566,047
|
Bank
indebtedness
|
|
8,000,000
|
|
|
7,000,000
|
Accrued
liabilities
|
|
2,332,148
|
|
|
1,856,039
|
Income taxes
payable
|
|
147,215
|
|
|
-
|
|
|
|
|
|
|
Total
liabilities
|
|
13,110,408
|
|
|
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
|
|
22,216,583
|
|
|
22,527,430
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
23,807,106
|
|
|
24,094,650
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
36,917,514
|
|
$
|
34,516,736
|
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,
|
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
|
|
|
SALES
|
$
|
18,945,738
|
$
|
20,922,190
|
|
$
|
39,666,658
|
$
|
47,900,665
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
14,532,366
|
|
15,569,380
|
|
|
30,473,044
|
|
36,658,766
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
4,413,372
|
|
5,352,810
|
|
|
9,193,614
|
|
11,241,899
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expenses
|
|
961,566
|
|
1,125,692
|
|
|
2,884,463
|
|
2,798,094
|
Depreciation and
amortization
|
|
99,962
|
|
83,291
|
|
|
299,577
|
|
237,001
|
Wages and
employee benefits
|
|
2,100,825
|
|
2,124,183
|
|
|
5,975,438
|
|
5,957,601
|
|
|
|
|
|
|
|
|
|
|
|
|
3,162,353
|
|
3,333,166
|
|
|
9,159,478
|
|
8,992,696
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
1,251,019
|
|
2,019,644
|
|
|
34,136
|
|
2,249,203
|
|
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
-
|
|
903
|
|
|
-
|
|
(294,097)
|
Interest
expense
|
|
(152,905)
|
|
(47,972)
|
|
|
(353,987)
|
|
(98,868)
|
|
|
(152,905)
|
|
(47,069)
|
|
|
(353,987)
|
|
(392,965)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
1,098,114
|
|
1,972,575
|
|
|
(319,851)
|
|
1,856,238
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
(363,163)
|
|
(478,464)
|
|
|
9,004
|
|
(483,449)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
734,951
|
$
|
1,494,111
|
|
$
|
(310,847)
|
$
|
1,372,789
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.21
|
$
|
0.43
|
|
$
|
(0.09)
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
0.21
|
$
|
0.43
|
|
$
|
(0.09)
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,498,899
|
|
3,492,842
|
|
|
3,498,000
|
|
3,492,266
|
Diluted
|
|
3,498,899
|
|
3,492,842
|
|
|
3,498,000
|
|
3,492,266
|
JEWETT-CAMERON
TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
|
|
|
Nine
Month
Period
Ended
May
31,
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net (loss)
income
|
$
|
(310,847)
|
|
$
|
1,372,789
|
Items not involving an
outlay of cash:
|
|
|
|
|
|
Depreciation and
amortization
|
|
299,577
|
|
|
237,001
|
Stock-based
compensation expense
|
|
23,303
|
|
|
39,386
|
Deferred income
tax expense
|
|
(366,566)
|
|
|
11,552
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
(Increase) in
accounts receivable
|
|
(338,489)
|
|
|
(1,185,353)
|
Decrease
(increase) in inventory
|
|
103,083
|
|
|
(5,507,438)
|
Decrease in
prepaid expenses
|
|
242,427
|
|
|
48,244
|
Decrease in
prepaid income taxes
|
|
208,963
|
|
|
249,082
|
Increase in
accounts payable and accrued liabilities
|
|
1,541,107
|
|
|
692,233
|
Increase in
income taxes payable
|
|
147,215
|
|
|
-
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
1,549,773
|
|
|
(4,042,504)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Increase in
intangible assets
|
|
(102,500)
|
|
|
-
|
Purchase of
property, plant and equipment
|
|
(215,685)
|
|
|
(1,011,359)
|
|
|
|
|
|
|
Net cash (used in)
investing activities
|
|
(318,185)
|
|
|
(1,011,359)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Net proceeds and
repayments from bank indebtedness
|
|
1,000,000
|
|
|
6,000,000
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
1,000,000
|
|
|
6,000,000
|
|
|
|
|
|
|
Net increase in
cash
|
|
2,231,588
|
|
|
946,137
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
484,463
|
|
|
1,184,313
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
2,716,051
|
|
$
|
2,130,450
|
Contact: Chad Summers, President
& CEO, (503) 647-0110
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-3rd-quarter-financial-results-301877068.html
SOURCE Jewett-Cameron Trading Company Ltd.