July 16, 2024

Jewett-Cameron Announces 3rd Quarter Financial Results

NORTH PLAINS, Ore., July 15, 2024 /PRNewswire/ — Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine-month periods of fiscal 2024 ended May 31, 2024.

Sales for the third quarter of fiscal 2024 totaled approximately $15.9 million compared to sales of $18.9 million for the third quarter of fiscal 2023. Income from operations was $55,595 compared to $1,251,019 for the third quarter ended May 31, 2023. Net income after other items and income taxes for the current quarter was $154,862, or $0.04 per share, compared to net income of $734,951, or $0.21 per share, in the 3rd quarter of 2023.

For the nine months ended May 31, 2024, Jewett-Cameron reported sales of approximately $33.9 million compared to sales of $39.7 million for the nine months ended May 31, 2023. After a one-time gain from a favorable arbitration settlement, net income was $912,257, or $0.26 per share, compared to a net loss of ($310,847), or ($0.09) per share, for the first nine months of fiscal 2023.

“Economic factors and restrained consumer spending, particularly in the home improvement and pet categories, continue to challenge our sales and margins” said CEO Chad Summers. “In response, we are continuing to focus on our core products and increase our visibility and brand recognition with consumers. This includes the expansion of our successful in-store product placement campaign for several of our core fence products into more stores in the 4th quarter and into fiscal 2025”.

As of May 31, 2024, the Company’s cash position was approximately $1.05 million. Subsequent to the end of the 3rd quarter, we established a new asset-based line with Northrim Funding Services for short-term operating capital as needed. Although the interest rate on the new line is higher than we were previously paying, it does provide us with additional financial flexibility. We currently have no borrowing against this new 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 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)

May 31,

2024

August 31,

2023

ASSETS

Current assets

  Cash and cash equivalents

$

1,054,704

$

83,696

  Accounts receivable, net of allowance of $0 (August 31, 2023 – $0)

7,408,344

5,634,924

  Inventory, net of allowance of $90,536 (August 31, 2023 – $497,884)

13,470,934

18,339,048

  Prepaid expenses

1,402,472

630,788

  Total current assets

23,336,454

24,688,456

Property, plant and equipment, net

4,482,130

4,655,427

Intangible assets, net

112,431

134,845

Deferred tax assets

396,788

319,875

Total assets

$

28,327,803

$

29,798,603

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

  Accounts payable

$

787,563

$

2,181,194

  Bank indebtedness

–

1,259,259

  Income taxes payable

244,108

147,629

  Accrued liabilities

2,254,484

2,113,194

Total liabilities

3,286,155

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

23,419,061

22,506,804

  Total stockholders’ equity

25,041,648

24,097,327

  Total liabilities and stockholders’ equity

$

28,327,803

$

29,798,603

 

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,

2024

2023

2024

2023

SALES

$

15,896,017

$

18,945,738

$

33,931,050

$

39,666,658

COST OF SALES

12,944,941

14,532,366

26,959,377

30,473,044

GROSS PROFIT

2,951,076

4,413,372

6,971,673

9,193,614

OPERATING EXPENSES

  Selling, general and administrative expenses

1,026,071

961,566

2,941,978

2,884,463

  Depreciation and amortization

79,406

99,962

268,349

299,577

  Wages and employee benefits

1,790,004

2,100,825

5,221,662

5,975,438

2,895,481

3,162,353

8,431,989

9,159,478

Income (loss) from operations

55,595

1,251,019

(1,460,316)

34,136

OTHER ITEMS

   Other income

–

–

2,450,000

–

Gain on sale of assets

1,450

–

90,537

–

   Interest (expense) income

(1,437)

(152,905)

11,527

(353,987)

13

(152,905)

2,552,064

(353,987)

Income (loss) before income taxes

55,608

1,098,114

1,091,748

(319,851)

Income tax expense (recovery)

(99,254)

363,163

179,491

(9,004)

Net income (loss)

$

154,862

$

734,951

$

912,257

$

(310,847)

Basic earnings (loss) per common share

$

0.04

$

0.21

$

0.26

$

(0.09)

Diluted earnings (loss) per common share

$

0.04

$

0.21

$

0.26

$

(0.09)

Weighted average number of common shares outstanding:

  Basic

3,504,802

3,498,899

3,502,399

3,498,000

  Diluted

3,504,802

3,498,899

3,502,399

3,498,000

 

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,

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)

$

912,257

$

(310,847)

Items not involving an outlay of cash:

  Depreciation and amortization

268,349

299,577

  Stock-based compensation expense

32,064

23,303

  Gain on sale of property, plant and equipment

(90,537)

–

  Write-down of intangible assets

21,790

–

  Deferred income tax expense

(76,913)

(366,566)

Changes in non-cash working capital items:

  Increase in accounts receivable

(1,773,420)

(338,489)

  Decrease in inventory

4,868,114

103,083

  (Increase) decrease in prepaid expenses

(771,684)

242,427

  Decrease in prepaid income taxes

–

208,963

  (Decrease) increase in accounts payable and accrued liabilities

(1,252,341)

1,541,107

  Increase in income taxes payable

96,479

147,215

Net cash provided by operating activities

2,234,158

1,549,773

CASH FLOWS FROM INVESTING ACTIVITIES

  Increase in intangible assets

–

(102,500)

  Proceeds on sale of property, plant and equipment

106,649

  Purchase of property, plant and equipment

(110,540)

(215,685)

Net cash used in investing activities

(3,891)

(318,185)

CASH FLOWS FROM FINANCING ACTIVITIES

  (Repayment to) proceeds from bank indebtedness

(1,259,259)

1,000,000

Net cash (used in) provided by financing activities

(1,259,259)

1,000,000

Net increase in cash

971,008

2,231,588

Cash, beginning of period

83,696

484,463

Cash, end of period

$

1,054,704

$

2,716,051

 

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

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SOURCE Jewett-Cameron Trading Company Ltd.

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