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Jewett-Cameron Announces 3rd Quarter Financial Results

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NORTH PLAINS, Ore., July 14, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine-month periods of fiscal 2022 ended May 31, 2022.

Sales for the third quarter of fiscal 2022 totaled approximately $20.9 million compared to sales of $21.6 million for the third quarter of fiscal 2021. Income from operations was $2,019,644 compared to $2,638,011 for the third quarter ended May 31, 2021. Net income after other items and income taxes for the current quarter was $1,494,111, or $0.43 per share, compared to net income of $2,414,477, or $0.69 per share, in the same quarter of 2021.

For the nine months ended May 31, 2022, Jewett-Cameron reported sales of $47.9 million compared to sales of $42.4 million for the nine months ended May 31, 2021. Net income was $1,372,789, or $0.39 per share, compared to net income of $2,849,839, or $0.82 per share, for the first nine months of fiscal 2021.

Net income for both the three and nine-month periods ended May 31, 2021 were positively affected by a one-time gain of $687,387 related to the forgiveness of the Company's PPP loans.

"Our decision to build our most important inventory at the beginning of our busy Spring and Summer season worked well," said CEO Chad Summers. "It reduced some product costs and helped insulate us against the continuing supply chain disruptions from China. We were able to provide high product availability and on-time fulfillment rates for our customers. We remain well positioned with our inventory on hand entering the 4th quarter."

As of May 31, 2022, the Company's cash position was approximately $2.1 million, and there was $9.0 million borrowed against its $10.0 million line of credit. Subsequent to the end of the period, the Company repaid an additional $1.0 million, and as product is sold and accounts receivable are collected, we expect to continue to repay the amount drawn against the line.

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,

2022


August 31,

2021







ASSETS






Current assets






  Cash and cash equivalents

$

2,130,450


$

1,184,313

  Accounts receivable, net of allowance of $Nil (August 31, 2021 - $0)


8,271,856



7,086,503

  Inventory, net of allowance of $250,000 (August 31, 2021 - $250,000)


19,898,803



14,391,365

  Prepaid expenses


2,257,576



2,305,820

  Prepaid income taxes


3,876



252,958







  Total current assets


32,562,561



25,220,959







Property, plant and equipment, net


4,661,706



3,886,543







Intangible assets, net


30,092



30,897







Total assets

$

37,254,359


$

29,138,399







LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities












  Accounts payable

$

1,794,717


$

1,349,677

  Bank indebtedness


9,000,000



3,000,000

  Accrued liabilities


2,045,281



1,798,088







  Total current liabilities


12,839,998



6,147,765







Deferred tax liability


128,497



116,945







Total liabilities


12,968,495



6,264,710







Stockholders' equity






  Capital stock

    Authorized

      21,567,564 common shares, no par value

      10,000,000 preferred shares, no par value

    Issued

      3,492,842 common shares (August 31, 2021 –3,489,161)


824,039



823,171

  Additional paid-in capital


725,729



687,211

  Retained earnings


22,736,096



21,363,307







  Total stockholders' equity


24,285,864



22,873,689







  Total liabilities and stockholders' equity

$

37,254,359


$

29,138,399

 

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,


2022

2021


2022

2021











SALES

$

20,922,190

$

21,619,952


$

47,900,665

$

42,396,591











COST OF SALES


15,569,380


16,037,702



36,658,766


31,239,866











GROSS PROFIT


5,352,810


5,582,250



11,241,899


11,156,725











OPERATING EXPENSES










  Selling, general and administrative expenses


1,125,692


966,298



2,798,094


2,556,902

  Depreciation and amortization


83,291


69,353



237,001


175,171

  Wages and employee benefits


2,124,183


1,908,588



5,957,601


5,226,021













3,333,166


2,944,239



8,992,696


7,958,094











Income from operations


2,019,644


2,638,011



2,249,203


3,198,631











OTHER ITEMS










   Other income


903


3,000



(294,097)


9,000

   Interest expense


(47,972)


(9,283)



(98,868)


(9,283)

   Gain on extinguishment of debt


-


687,387



-


687,387



(47,069)


681,104



(392,965)


687,104











Income before income taxes


1,972,575


3,319,115



1,856,238


3,885,735











Income tax expense


(478,464)


(904,638)



(483,449)


(1,035,896)











Net income

$

1,494,111

$

2,414,477


$

1,372,789

$

2,849,839











Basic earnings per common share

$

0.43

$

0.69


$

0.39

$

0.82











Diluted earnings per common share

$

0.43

$

0.69


$

0.39

$

0.82











Weighted average number of common
shares outstanding:










  Basic


3,492,842


3,489,161



3,492,266


3,485,525

  Diluted


3,492,842


3,489,161



3,492,266


3,485,525























 

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,


2022



2021







CASH FLOWS FROM OPERATING ACTIVITIES






Net income

$

1,372,789


$

2,849,839

Items not involving an outlay of cash:






  Depreciation and amortization


237,001



175,171

  Stock-based compensation expense


39,386



70,391

  Gain on extinguishment of debt


-



(680,707)

  Deferred income tax expense


11,552



(57,768)







Changes in non-cash working capital items:






  (Increase) in accounts receivable


(1,185,353)



(4,776,635)

  (Increase) decrease in inventory


(5,507,438)



1,430,506

  Decrease (increase) in prepaid expenses


48,244



(1,544,728)

  Decrease in prepaid income taxes


249,082



-

  Increase in accounts payable and accrued liabilities


692,233



736,595

  Increase in income taxes payable


-



189,594







Net cash (used in) provided by operating activities


(4,042,504)



(1,607,742)







CASH FLOWS FROM INVESTING ACTIVITIES






  Purchase of property, plant and equipment


(1,011,359)



(1,019,259)







Net cash provided by (used in) investing activities


(1,011,359)



(1,019,259)







CASH FLOWS FROM FINANCING ACTIVITIES






  Proceeds from bank indebtedness


6,000,000



996,010







Net cash provided by (used in) financing activities


6,000,000



996,010







Net increase (decrease) in cash


946,137



(1,630,991)







Cash, beginning of period


1,184,313



3,801,037







Cash, end of period

$

2,130,450


$

2,170,046








Contact: Chad Summers, President & CEO, (503) 647-0110

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View original content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-3rd-quarter-financial-results-301587140.html

SOURCE Jewett-Cameron Trading Company Ltd.