NORTH PLAINS, Ore.,
April 14, 2021 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today
reported financial results for the second quarter and six month
periods of fiscal 2021 ended February 28,
2021.
Sales for the second quarter of fiscal 2021 totaled $10.46 million compared to sales of $7.62 million for the second quarter of fiscal
2020. Loss from operations was ($63,162) compared to a loss of ($163,020) for the quarter ended February 29, 2020. Net loss was ($53,164), or ($0.02) per share, compared to a net loss of
($174,262), or ($0.05) per share, in the year-ago quarter.
For the six months ended February 28,
2021, sales totaled $20.8
million compared to sales of $14.7 million for the six
months ended February 29, 2020.
Income from operations was $560,621
compared to income of $536,634 for
the six months ending in February 29,
2020. Net income was $435,363,
or $0.12 per share, compared to net
loss of ($180,884), or ($0.05)
per share, in the first six months of fiscal 2020.
"Our increased sales in the current six months reflect the
success of our ongoing corporate strategy to expand our sales
channels and introduce new products," said CEO Charlie Hopewell. "We remain committed to this
strategy. However, COVID-19 issues continue to cause uncertainly
for the remainder of fiscal 2021. The pandemic has also caused a
shortage of shipping containers and seaborne shipping space. This
is now causing some delivery delays of our China manufactured products and is increasing
our shipping costs, which may continue through the remainder of
fiscal 2021".
As of February 28, 2021, the
Company's cash position was approximately $2.89 million, and there was no borrowing against
its $3.0 million line of credit. The
Company has historically utilized its cash position by implementing
share repurchase programs as an effective method of enhancing
shareholder value.
Jewett-Cameron Trading Company is a holding company that,
through its subsidiaries (Jewett-Cameron Companies), operate out of
facilities located in North Plains,
Oregon. Those businesses consist of the manufacturing and
distribution of patented and patent pending specialty metal
products, wholesale distribution of wood products, seed processing
and sales, and sales of industrial tools and clamps. The Company's
brands include Lucky Dog, Animal House and AKC licensed products in
the expanding pet market; fencing products under the
Adjust-A-Gates, Fit-Right, Perimeter Patrol, and INFINITY Euro
fence systems brands; Early Start, Spring
Gardener, and Weatherguard for greenhouses; and TrueShade
for patio umbrellas, furniture covers and canopies. 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
28, 2021
|
|
August
31, 2020
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,891,734
|
|
$
|
3,801,037
|
Accounts
receivable, net of allowance of
$Nil (August 31, 2020 - $Nil)
|
|
5,089,561
|
|
|
6,274,426
|
Inventory, net
of allowance of $250,000 (August
31, 2020 - $65,000)
|
|
10,035,546
|
|
|
9,198,146
|
Prepaid
expenses
|
|
1,498,213
|
|
|
1,036,128
|
Prepaid income
taxes
|
|
307,433
|
|
|
-
|
|
|
|
|
|
|
Total current
assets
|
|
19,822,487
|
|
|
20,309,737
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
3,411,132
|
|
|
2,967,565
|
|
|
|
|
|
|
Intangible assets,
net
|
|
539
|
|
|
659
|
|
|
|
|
|
|
Total
assets
|
$
|
23,234,158
|
|
$
|
23,277,961
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
756,881
|
|
$
|
1,095,061
|
Current portion
of notes payable
|
|
529,439
|
|
|
342,326
|
Income taxes
payable
|
|
-
|
|
|
40,596
|
Accrued
liabilities
|
|
1,929,599
|
|
|
2,016,300
|
|
|
|
|
|
|
Total current
liabilities
|
|
3,215,919
|
|
|
3,494,283
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
Notes
payable
|
|
151,268
|
|
|
338,381
|
|
|
|
|
|
|
Deferred tax
liability
|
|
12,872
|
|
|
96,952
|
|
|
|
|
|
|
Total
liabilities
|
|
3,380,059
|
|
|
3,929,616
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Capital
stock
|
|
|
|
|
|
Authorized
|
|
|
|
|
|
21,567,564 common
shares, without par value
|
|
|
|
|
|
10,000,000 preferred
shares, without par value
|
|
|
|
|
|
Issued
|
|
|
|
|
|
3,489,161 common
shares (August 31, 2020 – 3,481,162)
|
|
823,171
|
|
|
821,284
|
Additional
paid-in capital
|
|
618,707
|
|
|
618,707
|
Retained
earnings
|
|
18,412,221
|
|
|
17,908,354
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
19,854,099
|
|
|
19,348,345
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
23,234,158
|
|
$
|
23,277,961
|
JEWETT-CAMERON
TRADING COMPANY LTD.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Expressed in U.S.
Dollars)
|
(Prepared by
Management)
|
(Unaudited)
|
|
|
Three
Month Periods at
the end of
February
|
|
Six
Month Periods at
the end of
February
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
|
SALES
|
$
|
10,460,355
|
$
|
7,621,927
|
|
$
|
20,776,639
|
$
|
14,677,105
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
7,848,779
|
|
5,616,672
|
|
|
15,202,164
|
|
10,623,507
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
2,611,576
|
|
2,005,255
|
|
|
5,574,475
|
|
4,053,598
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
895,974
|
|
763,910
|
|
|
1,590,603
|
|
1,412,920
|
Depreciation
and amortization
|
|
55,290
|
|
58,063
|
|
|
105,818
|
|
106,211
|
Wages and
employee benefits
|
|
1,723,474
|
|
1,346,302
|
|
|
3,317,433
|
|
2,708,361
|
|
|
2,674,738
|
|
2,168,275
|
|
|
5,013,854
|
|
4,227,492
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
operations
|
|
(63,162)
|
|
(163,020)
|
|
|
560,621
|
|
(173,894)
|
|
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
|
|
Gain on
sale of property, plant and equipment
|
|
-
|
|
400
|
|
|
-
|
|
400
|
Interest
and other income
|
|
3,000
|
|
6,584
|
|
|
6,000
|
|
18,198
|
|
|
3,000
|
|
6,984
|
|
|
6,000
|
|
18,598
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
|
(60,162)
|
|
(156,036)
|
|
|
566,621
|
|
(155,296)
|
|
|
|
|
|
|
|
|
|
|
Income tax recovery
(expense)
|
|
6,998
|
|
(18,226)
|
|
|
(131,258)
|
|
(25,588)
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(53,164)
|
|
(174,262)
|
|
$
|
435,363
|
$
|
(180,884)
|
|
|
|
|
|
|
|
|
|
|
Basic (loss)
earnings per common share
|
$
|
(0.02)
|
|
(0.05)
|
|
$
|
0.12
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per common share
|
$
|
(0.02)
|
|
(0.05)
|
|
$
|
0.12
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,486,495
|
|
3,562,630
|
|
|
3,483,814
|
|
3,811,956
|
Diluted
|
|
3,486,495
|
|
3,562,630
|
|
|
3,483,814
|
|
3,811,956
|
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,
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
(loss)
|
$
|
435,363
|
|
$
|
(180,884)
|
Items not involving
an outlay of cash:
|
|
|
|
|
|
Depreciation
and amortization
|
|
105,818
|
|
|
106,211
|
(Gain) on sale
of property, plant and equipment
|
|
-
|
|
|
(400)
|
Deferred
income taxes
|
|
(84,080)
|
|
|
24,592
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
Decrease in
accounts receivable
|
|
1,184,865
|
|
|
135,288
|
(Increase) in
inventory
|
|
(837,400)
|
|
|
(870,743)
|
Decrease in
note receivable
|
|
-
|
|
|
300
|
(Increase) in
prepaid expenses
|
|
(462,085)
|
|
|
(474,253)
|
(Increase) in
prepaid income taxes
|
|
(307,433)
|
|
|
(146,582)
|
(Decrease) in
accounts payable and
accrued
liabilities
|
|
(424,881)
|
|
|
(351,259)
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(389,833)
|
|
|
(1,757,730)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of
property, plant and equipment
|
|
(519,470)
|
|
|
(152,403)
|
Proceeds from
sale of property, plant and equipment
|
|
-
|
|
|
400
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(519,470)
|
|
|
(152,003)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Redemption of
common stock
|
|
-
|
|
|
(3,867,046)
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
-
|
|
|
(3,867,046)
|
|
|
|
|
|
|
Net decrease in
cash
|
|
(909,303)
|
|
|
(5,776,779)
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
3,801,037
|
|
|
9,652,310
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
2,891,734
|
|
$
|
3,875,531
|
Contact: Charlie Hopewell,
President & CEO, (503) 647-0110
View original
content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-2nd-quarter-financial-results-301269150.html
SOURCE Jewett-Cameron Trading Company Ltd.