Jewett-Cameron Announces 1st Quarter Financial Results

Published: Jan. 14, 2022 at 3:45 PM CST

NORTH PLAINS, Ore., Jan. 14, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2022 ended November 30, 2021.

Sales for the first quarter of fiscal 2022 totaled $12.9 million compared to sales of $10.3 million for the first quarter of fiscal 2021. Net loss for the current quarter was ($391,141), or ($0.11) per share, compared to net income of $488,527, or $0.14 per share, in the year-ago quarter.

"Our sales quarter over quarter increased by 25%, reflecting the continued strong demand for our products, but higher costs for raw materials and global logistical issues significantly reduced our margins," said CEO Chad Summers. "In response, we have now successfully increased our selling prices with our customers, but these inflationary pressures will remain an issue affecting our margins throughout fiscal 2022."

As of November 30, 2021, the Company's cash position was approximately $1.2 million, and there was $5.0 million borrowed against its $10.0 million line of credit. Based on the timing of accounts receivable and the unused portion of the line of credit, the Company believes it has sufficient working capital available for the remainder of fiscal 2022.

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®, 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)

 


November 30,2021


August 31,2021







ASSETS






Current assets






  Cash and cash equivalents

$

1,235,445


$

1,184,313

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


5,806,987



7,086,503

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


17,223,927



14,391,365

  Prepaid expenses


2,267,341



2,305,820

  Prepaid income taxes


355,163



252,958







  Total current assets


26,888,863



25,220,959







Property, plant and equipment, net


4,407,548



3,886,543







Intangible assets, net


30,629



30,897







Total assets

$

31,327,040


$

29,138,399







LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities












  Accounts payable

$

2,084,438


$

1,349,677

  Bank indebtedness


5,000,000



3,000,000

  Accrued liabilities


1,594,834



1,798,088







  Total current liabilities


8,679,272



6,147,765







Deferred tax liability


125,834



116,945







Total liabilities


8,805,106



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


20,972,166



21,363,307







  Total stockholders' equity


22,521,934



22,873,689







  Total liabilities and stockholders' equity

$

31,327,040


$

29,138,399

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

 


Three Months

Ended

November 30,

2021


Three Months

Ended

November 30,

2020







SALES

$

12,917,724


$

10,316,284







COST OF SALES


10,452,861



7,353,385







GROSS PROFIT


2,464,863



2,962,899







OPERATING EXPENSES






  Selling, general and administrative expenses


988,288



694,628

  Depreciation and amortization


69,638



50,529

  Wages and employee benefits


1,874,118



1,593,959









2,932,044



2,339,116







(Loss) income from operations


(467,181)



623,783







OTHER ITEMS






Other income


3,000



3,000

Interest expense


(20,276)



-







Total other items


(17,276)



3,000







(Loss) income before income taxes


(484,457)



626,783







Income tax recovery (expense)


93,316



(138,256)







Net (loss) income

$

(391,141)


$

488,527







Basic (loss) earnings per common share

$

(0.11)


$

0.14







Diluted (loss) earnings per common share

$

(0.11)


$

0.14







Weighted average number of common shares outstanding:






  Basic


3,491,103



3,481,162

  Diluted


3,491,103



3,481,162

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

 


Three Months

Ended

November 30,

2021


Three Months

Ended

November 30,

2020







CASH FLOWS FROM OPERATING ACTIVITIES






Net (loss) income

$

(391,141)


$

488,527

Items not involving an outlay of cash:






    Depreciation and amortization


69,638



50,529

    Stock-based compensation expense


39,386



-

    Deferred income taxes


8,889



(40,784)







Changes in non-cash working capital items:






    Decrease in accounts receivable


1,279,516



2,027,469

    (Increase) in inventory


(2,832,562)



(223,013)

    Decrease in prepaid expenses


38,479



196,255

    Increase (decrease) in accounts payable and accrued liabilities


531,507



(454,861)

    (Increase) in prepaid income taxes


(102,205)



-

    Increase in income taxes payable


-



179,040







Net cash (used by) provided by operating activities


(1,358,493)



2,223,162







CASH FLOWS FROM INVESTING ACTIVITIES






    Purchase of property, plant and equipment


(590,375)



(184,247)







Net cash used in investing activities


(590,375)



(184,247)







CASH FLOWS FROM FINANCING ACTIVITIES






    Proceeds from bank indebtedness


2,000,000



-







Net cash provided by financing activities


2,000,000



-







Net increase in cash


51,132



2,038,915







Cash, beginning of period


1,184,313



3,801,037







Cash, end of period

$

1,235,445


$

5,839,952

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

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SOURCE Jewett-Cameron Trading Company Ltd.

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