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
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-3rd-quarter-financial-results-302197471.html
SOURCE Jewett-Cameron Trading Company Ltd.
