NORTH
PLAINS, Ore., Jan. 16,
2024 /PRNewswire/ -- Jewett-Cameron Trading Company
Ltd. (NASDAQ: JCTCF) today reported financial results for the first
quarter of fiscal 2024 ended November 30,
2023.
Sales for the first quarter of fiscal 2024 totaled $9.8 million compared to sales of $12.5 million for the first quarter of fiscal
2023. Loss from operations was ($789,224) compared to a loss of ($6,798) in the year ago period. After a one-time
gain from a favorable arbitration settlement and other items, net
income for the current quarter was $1,291,541, or $0.37 per share, compared to a net loss of
($73,760), or ($0.02) per share, in the year-ago quarter.
"We are continuing to work through the effects of the pandemic
and the high rate of inflation that has caused price disruptions
and negatively affected consumer buying," said CEO Chad Summers. "The pet segment continues to lag,
but sales of our fencing products are meeting expectations. We
officially launched our new MyEcoWorld® line of sustainable bag
products in the 4th quarter and sales are growing. With
the exception of pet products, we are approaching the desired
inventory levels for most of our primary products as we sharpen our
focus on our operational strengths and core product lines."
As of November 30, 2023, the
Company's cash position was $3.5
million, and there was no borrowing against its $10.0 million line of credit. Based on the timing
of accounts receivable and the available line of credit, the
Company believes it has sufficient working capital available for
the remainder of fiscal 2024.
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.
CONSOLIDATED BALANCE
SHEETS
(Expressed in U.S.
Dollars)
(Prepared by
Management)
(Unaudited)
|
|
|
November
30,
2023
|
|
August
31,
2023
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,558,168
|
|
$
|
83,696
|
|
Accounts
receivable, net of allowance of $0 (August 31, 2023 -
$0)
|
|
3,365,430
|
|
|
5,634,924
|
|
Inventory, net
of allowance of $410,325 (August 31, 2023 - $497,884)
|
|
17,513,417
|
|
|
18,339,048
|
|
Prepaid
expenses
|
|
613,358
|
|
|
630,788
|
|
|
|
|
|
|
|
Total current
assets
|
|
25,050,373
|
|
|
24,688,456
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
4,545,687
|
|
|
4,655,427
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
112,847
|
|
|
134,845
|
|
|
|
|
|
|
|
Deferred tax
assets
|
|
229,062
|
|
|
319,875
|
|
|
|
|
|
|
|
Total
assets
|
$
|
29,937,969
|
|
$
|
29,798,603
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
2,802,837
|
|
$
|
2,181,194
|
|
Bank
indebtedness
|
|
-
|
|
|
1,259,259
|
|
Income taxes
payable
|
|
349,745
|
|
|
147,629
|
|
Accrued
liabilities
|
|
1,396,519
|
|
|
2,113,194
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,549,101
|
|
|
5,701,276
|
|
|
|
|
|
|
|
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, 2023 – 3,498,899)
|
|
825,468
|
|
|
825,468
|
|
Additional
paid-in capital
|
|
765,055
|
|
|
765,055
|
|
Retained
earnings
|
|
23,798,345
|
|
|
22,506,804
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
25,388,868
|
|
|
24,097,327
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
29,937,969
|
|
$
|
29,798,603
|
|
JEWETT-CAMERON
TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS
OF OPERATIONS
(Expressed in U.S.
Dollars)
(Prepared by
Management)
(Unaudited)
|
|
|
Three
Months
Ended
November
30,
2023
|
|
Three
Months
Ended
November
30,
2022
|
|
|
|
|
|
|
|
SALES
|
$
|
9,805,841
|
|
$
|
12,577,500
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
7,849,760
|
|
|
9,717,800
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
1,956,081
|
|
|
2,859,700
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
Selling, general
and administrative expenses
|
|
948,481
|
|
|
826,807
|
|
Depreciation and
amortization
|
|
97,903
|
|
|
111,536
|
|
Wages and
employee benefits
|
|
1,698,920
|
|
|
1,928,155
|
|
|
|
|
|
|
|
|
2,745,305
|
|
|
2,866,498
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(789,224)
|
|
|
(6,798)
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
Gain on sale of
property, plant and equipment
|
|
89,655
|
|
|
-
|
|
Other income
|
|
2,450,000
|
|
|
-
|
|
Interest
expense
|
|
(6,855)
|
|
|
(86,552)
|
|
|
|
|
|
|
|
Total other
items
|
|
2,532,800
|
|
|
(86,552)
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
1,743,576
|
|
|
(93,350)
|
|
|
|
|
|
|
|
Income tax (expense)
recovery
|
|
(452,035)
|
|
|
19,590
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
1,291,541
|
|
$
|
(73,760)
|
|
|
|
|
|
|
|
Basic income (loss)
per common share
|
$
|
0.37
|
|
$
|
(0.02)
|
|
|
|
|
|
|
|
Diluted income
(loss) per common share
|
$
|
0.37
|
|
$
|
(0.02)
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
3,498,899
|
|
|
3,496,202
|
|
Diluted
|
|
3,498,899
|
|
|
3,496,202
|
|
JEWETT-CAMERON
TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS
OF CASH FLOWS
(Expressed in U.S.
Dollars)
(Prepared by
Management)
(Unaudited)
|
|
|
Three
Months
Ended
November
30,
2023
|
|
Three
Months
Ended
November
30,
2022
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
1,291,541
|
|
$
|
(73,760)
|
|
Items not involving an
outlay of cash:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
97,903
|
|
|
111,536
|
|
Stock-based compensation expense
|
|
-
|
|
|
23,303
|
|
Gain
on sale of property, plant and equipment
|
|
(89,655)
|
|
|
|
|
Write-down of intangible assets
|
|
21,790
|
|
|
|
|
Deferred income taxes
|
|
90,813
|
|
|
(20,002)
|
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
|
Decrease in accounts receivable
|
|
2,269,494
|
|
|
1,954,249
|
|
Decrease (increase) in inventory
|
|
825,631
|
|
|
(1,370,146)
|
|
Decrease in prepaid expenses
|
|
17,430
|
|
|
488,461
|
|
Decrease in prepaid income taxes
|
|
-
|
|
|
412
|
|
(Decrease) in accounts payable and accrued liabilities
|
|
(95,032)
|
|
|
(419,811)
|
|
Increase in income taxes payable
|
|
202,116
|
|
|
-
|
|
|
|
|
|
|
|
Net cash provided by
(used by) operating activities
|
|
4,632,031
|
|
|
694,242
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Proceeds on sale of property, plant and equipment
|
|
101,700
|
|
|
-
|
|
Purchase of property, plant and equipment
|
|
-
|
|
|
(36,223)
|
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
101,700
|
|
|
(36,223)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
(Repayment of) proceeds from bank indebtedness
|
|
(1,259,259)
|
|
|
600,000
|
|
|
|
|
|
|
|
Net cash (used)
provided by financing activities
|
|
(1,259,259)
|
|
|
600,000
|
|
|
|
|
|
|
|
Net increase in
cash
|
|
3,474,472
|
|
|
1,258,019
|
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
83,696
|
|
|
484,463
|
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
3,558,168
|
|
$
|
1,742,482
|
Contact: Chad Summers, President
& CEO, (503) 647-0110
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-1st-quarter-financial-results-302036292.html
SOURCE Jewett-Cameron Trading Company Ltd.