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
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-fiscal-2023-financial-results-301999862.html
SOURCE Jewett-Cameron Trading Company Ltd.