NORTH PLAINS, Ore.,
July 15, 2021 /PRNewswire/ --
Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported
financial results for the third quarter and nine month periods of
fiscal 2021 ended May 31, 2021.
Sales for the third quarter of fiscal 2021 totaled approximately
$21.6 million compared to sales of
$16.2 million for the third quarter
of fiscal 2020. Income from operations was $2,638,010 compared to $1,913,582 for
the third quarter ended May 31, 2020.
Net income after other items and income taxes for the current
quarter was $2,414,477, or
$0.69 per share, compared to net
income of $1,396,973, or $0.40 per share, in the same quarter of 2020.
For the nine months ended May 31,
2021, Jewett-Cameron reported sales of $42.4 million compared to sales of $30.9 million for the nine months ended
May 31, 2020. Net income was
$2,849,839, or $0.82 per share, compared to net income of
$1,216,089, or $0.33 per share, in the first nine months of
fiscal 2020.
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.
"We are pleased with the higher level of sales and net income in
the current periods, which continues to reflect the success of our
ongoing corporate strategy," said CEO Charlie Hopewell. "All of our sales channels
showed sales increases, with many customers boosting both the
volume of individual products and the number of different products
in their orders. However, the worldwide supply chain disorder is
having a negative effect on our operations and margins, which may
continue for the remainder of fiscal 2021 and into fiscal
2022."
As of May 31, 2021, the Company's
cash position was approximately $2.2
million. Due to higher customer demand and logistical
issues, the Company tapped its line of credit in the third quarter.
The borrowing totaled $996,010 as of
May 31, 2021. In June 2021, the Company's line of credit was
increased from $3.0 million to
$5.0 million.
About Jewett-Cameron Trading Company Ltd.
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, and seed
processing and sales. Examples of the Company's brands include
Lucky Dog®, Animal House® and AKC (used under license from the
American Kennel Club) for pet enclosures and kennels;
Adjust-A-Gate, Fit-Right™, LIFETIME POST™ and Perimeter Patrol® for
gates and fencing; Early Start, Spring Gardener™, and Weatherguard
for greenhouses; and TrueShade® for patio umbrellas, furniture
covers and canopies.
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, 2021
|
|
August
31, 2020
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,170,046
|
|
$
|
3,801,037
|
|
Accounts
receivable, net of allowance of $Nil (August 31, 2020 - $Nil)
|
|
11,051,061
|
|
|
6,274,426
|
|
Inventory, net
of allowance of $250,000 (August
31, 2020 - $65,000)
|
|
7,767,640
|
|
|
9,198,146
|
|
Prepaid
expenses
|
|
2,580,856
|
|
|
1,036,128
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
23,569,603
|
|
|
20,309,737
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
3,799,402
|
|
|
2,967,565
|
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
12,910
|
|
|
659
|
|
|
|
|
|
|
|
|
Total
assets
|
$
|
27,381,915
|
|
$
|
23,277,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,557,721
|
|
$
|
1,095,061
|
|
Bank
indebtedness
|
|
996,010
|
|
|
-
|
|
Current portion
of notes payable
|
|
-
|
|
|
342,326
|
|
Income taxes
payable
|
|
230,190
|
|
|
40,596
|
|
Accrued
liabilities
|
|
2,290,235
|
|
|
2,016,300
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
5,074,156
|
|
|
3,494,283
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
Notes
payable
|
|
-
|
|
|
338,381
|
|
|
|
|
|
|
|
|
Deferred tax
liability
|
|
39,184
|
|
|
96,952
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
5,113,340
|
|
|
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
|
|
687,211
|
|
|
618,707
|
|
Retained
earnings
|
|
20,758,193
|
|
|
17,908,354
|
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
22,268,575
|
|
|
19,348,345
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
27,381,915
|
|
$
|
23,277,961
|
|
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,
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
|
|
|
|
SALES
|
$
|
21,619,952
|
$
|
16,241,239
|
|
$
|
42,396,591
|
$
|
30,918,345
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
16,037,702
|
|
11,931,746
|
|
|
31,239,866
|
|
22,555,253
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
5,582,250
|
|
4,309,493
|
|
|
11,156,725
|
|
8,363,092
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
966,299
|
|
706,079
|
|
|
2,556,902
|
|
2,118,999
|
Depreciation
and amortization
|
|
69,353
|
|
54,781
|
|
|
175,171
|
|
160,992
|
Wages and
employee benefits
|
|
1,908,588
|
|
1,635,051
|
|
|
5,226,021
|
|
4,343,412
|
|
|
|
|
|
|
|
|
|
|
|
|
2,944,240
|
|
2,395,911
|
|
|
7,958,094
|
|
6,623,403
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
2,638,010
|
|
1,913,582
|
|
|
3,198,631
|
|
1,739,689
|
|
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
|
|
Gain on sale
of property, plant and equipment
|
|
-
|
|
2,200
|
|
|
-
|
|
2,600
|
Gain on
extinguishment of debt
|
|
687,387
|
|
|
|
|
687,387
|
|
|
Interest
and other income
|
|
(6,282)
|
|
3,217
|
|
|
(283)
|
|
21,414
|
|
|
681,105
|
|
5,417
|
|
|
687,104
|
|
24,014
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
3,319,115
|
|
1,918,999
|
|
|
3,885,735
|
|
1,763,703
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(904,638)
|
|
(522,026)
|
|
|
(1,035,896)
|
|
(547,614)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
2,414,477
|
$
|
1,396,973
|
|
$
|
2,849,839
|
$
|
1,216,089
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.69
|
$
|
0.40
|
|
$
|
0.82
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share
|
$
|
0.69
|
$
|
0.40
|
|
$
|
0.82
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,489,161
|
|
3,481,162
|
|
|
3,485,525
|
|
3,672,858
|
Diluted
|
|
3,489,161
|
|
3,481,162
|
|
|
3,485,525
|
|
3,672,858
|
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,
|
|
2021
|
|
2020
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
$
|
2,849,839
|
|
$
|
1,216,089
|
Items not involving
an outlay of cash:
|
|
|
|
|
|
Depreciation
and amortization
|
|
175,171
|
|
|
160,992
|
Stock-based
compensation expense
|
|
70,391
|
|
|
-
|
(Gain) on sale
of property, plant and equipment
|
|
-
|
|
|
(2,600)
|
Gain on
extinguishment of debt
|
|
(680,707)
|
|
|
-
|
Deferred
income tax expense
|
|
(57,768)
|
|
|
39,571
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
(Increase) in
accounts receivable
|
|
(4,776,635)
|
|
|
(4,044,507)
|
Decrease
(increase) in inventory
|
|
1,430,506
|
|
|
(408,282)
|
(Increase) in
notes receivable
|
|
-
|
|
|
(561,813)
|
(Increase) in
prepaid expenses
|
|
(1,544,728)
|
|
|
(942,541)
|
Decrease in
prepaid income taxes
|
|
-
|
|
|
101,686
|
Increase in
accounts payable and accrued liabilities
|
|
736,595
|
|
|
1,448,292
|
Increase in
income taxes payable
|
|
189,594
|
|
|
-
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
(1,607,742)
|
|
|
(2,993,113)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of
property, plant and equipment
|
|
(1,019,259)
|
|
|
(207,469)
|
Proceeds from
sale of property, plant and
equipment
|
|
-
|
|
|
3,900
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
(1,019,259)
|
|
|
(203,569)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from
bank indebtedness
|
|
996,010
|
|
|
-
|
Increase in
notes payable
|
|
-
|
|
|
680,707
|
Redemption of
common stock
|
|
-
|
|
|
(3,867,046)
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
996,010
|
|
|
(3,186,339)
|
|
|
|
|
|
|
Net (decrease) in
cash
|
|
(1,630,991)
|
|
|
(6,383,021)
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
3,801,037
|
|
|
9,652,310
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
2,170,046
|
|
$
|
3,269,289
|
Contact: Charlie Hopewell, Chief
Executive Officer, (503) 647-0110
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-3rd-quarter-financial-results-301335195.html
SOURCE Jewett-Cameron Trading Company Ltd.