NORTH
PLAINS, Ore., April 15,
2024 /PRNewswire/ -- Jewett-Cameron Trading Company
Ltd. (NASDAQ: JCTCF) today reported financial results for the
second quarter and six month periods of fiscal 2024 ended
February 29, 2024.
Sales for the second quarter of fiscal 2024 were $8.23 million compared to sales of $8.14 million for the second quarter of fiscal
2023. Loss from operations was ($726,687) compared to a loss of ($1,210,085) for the quarter ended February 28, 2023. Net loss was ($534,145), or ($0.15) per share compared to a net loss of
($972,038), or ($0.28) per share, in the year-ago quarter.
For the six months ended February 29,
2024, sales totaled $18.0
million compared to sales of $20.7
million for the six months ended February 28, 2023. Loss from operations was
($1,515,911) compared to a loss of
($1,216,883) for the six months
ending February 28, 2023. After a
one-time gain from a favorable arbitration settlement, net income
of the current six months was $757,395, or $0.22
per share, compared to a net loss of ($1,045,798), or ($0.30) per share, for the first six months of
fiscal 2023.
"Consumer spending continues to be negatively affected by
inflation and general economic pressures," said CEO Chad Summers. "In response, we are focusing on
innovation and growing our core product lines of fencing, pet
containment and the new MyEcoWorld® line of sustainable bag
products. These efforts include the addition of new customers and
complementary new products, while working to identify cost
reductions and improving our margins."
As of February 29, 2024, the
Company's cash position was approximately $1.15 million, and there was no borrowing against
our bank line of credit. We requested the bank reduce our line of
credit from $10 million to
$5 million as our forecasts do not
anticipate the need to borrow above that level. Our bank has
decided that we do not currently meet their criteria for a line of
credit, and the revised $5 million
line will expire on June 30, 2024. We
are currently in negotiations with other lenders, including asset
based lenders, on establishing a new line of credit of $5 million or less. We anticipate having one or
more new funding and banking arrangements in place by May 31, 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
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)
|
|
|
February
29,
2024
|
|
August
31,
2023
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,149,316
|
|
$
|
83,696
|
|
Accounts
receivable, net of allowance of $0 (August 31, 2023 -
$0)
|
|
4,676,317
|
|
|
5,634,924
|
|
Inventory, net
of allowance of $410,325 (August 31, 2023 - $497,884)
|
|
17,576,787
|
|
|
18,339,048
|
|
Prepaid
expenses
|
|
796,393
|
|
|
630,788
|
|
|
|
|
|
|
|
Total current
assets
|
|
24,198,813
|
|
|
24,688,456
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
4,450,788
|
|
|
4,655,427
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
112,639
|
|
|
134,845
|
|
|
|
|
|
|
|
Deferred tax
assets
|
|
226,148
|
|
|
319,875
|
|
|
|
|
|
|
|
Total
assets
|
$
|
28,988,388
|
|
$
|
29,798,603
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
2,190,006
|
|
$
|
2,181,194
|
|
Bank
indebtedness
|
|
-
|
|
|
1,259,259
|
|
Income taxes
payable
|
|
172,722
|
|
|
147,629
|
|
Accrued
liabilities
|
|
1,738,874
|
|
|
2,113,194
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,101,602
|
|
|
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
3,504,802 common
shares (August 31, 2023 – 3,498,899)
|
|
826,861
|
|
|
825,468
|
|
Additional
paid-in capital
|
|
795,726
|
|
|
765,055
|
|
Retained
earnings
|
|
23,264,199
|
|
|
22,506,804
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
24,886,786
|
|
|
24,097,327
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
28,988,388
|
|
$
|
29,798,603
|
|
JEWETT-CAMERON
TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS
OF OPERATIONS
(Expressed in U.S.
Dollars)
(Prepared by
Management)
(Unaudited)
|
|
|
Three
Month
Periods to the
end
of
February
|
|
Six
Month
Periods to the
end
of
February
|
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
$
|
8,229,192
|
$
|
8,143,421
|
|
$
|
18,035,033
|
$
|
20,720,921
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
6,164,676
|
|
6,222,879
|
|
|
14,014,436
|
|
15,940,679
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
2,064,516
|
|
1,920,542
|
|
|
4,020,597
|
|
4,780,242
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expenses
|
|
967,426
|
|
1,096,090
|
|
|
1,915,907
|
|
1,922,897
|
|
Depreciation and
amortization
|
|
91,039
|
|
88,079
|
|
|
188,943
|
|
199,615
|
|
Wages and
employee benefits
|
|
1,732,738
|
|
1,946,458
|
|
|
3,431,658
|
|
3,874,613
|
|
|
2,791,203
|
|
3,130,627
|
|
|
5,536,508
|
|
5,997,125
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
operations
|
|
(726,687)
|
|
(1,210,085)
|
|
|
(1,515,911)
|
|
(1,216,883)
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
-
|
|
-
|
|
|
2,450,000
|
|
-
|
|
Interest
income (expense)
|
|
19,819
|
|
(114,530)
|
|
|
12,964
|
|
(201,082)
|
|
(Loss)
gain on sale of assets
|
|
(568)
|
|
-
|
|
|
89,087
|
|
-
|
|
|
19,251
|
|
(114,530)
|
|
|
2,552,051
|
|
(201,082)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
|
(707,436)
|
|
(1,324,615)
|
|
|
1,036,140
|
|
(1,417,965)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax recovery
(expense)
|
|
173,291
|
|
352,577
|
|
|
(278,745)
|
|
372,167
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(534,145)
|
$
|
(972,038)
|
|
|
757,395
|
$
|
(1,045,798)
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss)
earnings per common share
|
$
|
(0.15)
|
$
|
(0.28)
|
|
|
0.22
|
$
|
(0.30)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per common share
|
$
|
(0.15)
|
$
|
(0.28)
|
|
|
0.22
|
$
|
(0.30)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,504,348
|
|
3,498,899
|
|
|
3,501,623
|
|
3,497,543
|
|
Diluted
|
|
3,504,348
|
|
3,498,899
|
|
|
3,501,623
|
|
3,497,543
|
|
|
|
|
|
|
|
|
|
|
|
JEWETT-CAMERON
TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS
OF CASH FLOWS
(Expressed in U.S.
Dollars)
(Prepared by
Management)
(Unaudited)
|
|
|
Six Month
Period
at the end of
February,
|
|
Six Month
Period
at the end of
February,
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
757,395
|
|
$
|
(1,045,798)
|
|
Items not involving an
outlay of cash:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
188,943
|
|
|
199,615
|
|
Stock-based
compensation expense
|
|
32,064
|
|
|
23,303
|
|
Gain on sale of
property, plant and equipment
|
|
(89,087)
|
|
|
-
|
|
Write-down of
intangible assets
|
|
21,790
|
|
|
-
|
|
Deferred income
taxes
|
|
93,727
|
|
|
(372,992)
|
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
|
Decrease in
accounts receivable
|
|
958,607
|
|
|
2,930,390
|
|
Decrease
(increase) in inventory
|
|
762,261
|
|
|
(2,447,334)
|
|
(Increase)
decrease in prepaid expenses
|
|
(165,605)
|
|
|
318,009
|
|
(Decrease) in
accounts payable and accrued liabilities
|
|
(365,508)
|
|
|
(1,020,411)
|
|
Decrease
(increase) in prepaid income taxes
|
|
-
|
|
|
825
|
|
Increase in
income taxes payable
|
|
25,093
|
|
|
-
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
2,219,680
|
|
|
(1,414,393)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Proceeds on sale
of property, plant and equipment
|
|
105,199
|
|
|
-
|
|
Purchase of
property, plant and equipment
|
|
-
|
|
|
(301,681)
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
105,199
|
|
|
(301,681)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
(Repayment)
proceeds from bank indebtedness
|
|
(1,259,259)
|
|
|
1,500,000
|
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
(1,259,259)
|
|
|
1,500,000
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
1,065,620
|
|
|
(216,074)
|
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
83,696
|
|
|
484,463
|
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
1,149,316
|
|
$
|
268,389
|
Contact: Chad Summers, President
& CEO, (503) 647-0110
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-2nd-quarter-financial-results-302117151.html
SOURCE Jewett-Cameron Trading Company Ltd.