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NORTH PLAINS, Ore., Jan. 17, 2023 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2023 ended November 30, 2022.
Sales for the first quarter of fiscal 2023 totaled $12.58 million compared to sales of $12.92 million for the first quarter of fiscal 2022. Net loss for the current quarter was ($73,760), or ($0.02) per share, compared to a net loss of ($391,141), or ($0.11) per share, in the year-ago quarter.
"We are working through the challenges stemming from the global supply issues that occurred in calendar 2022 as reflected in our improved gross margins during the quarter" said CEO Chad Summers. "Although our current inventory position is higher than usual, it has us well positioned to meet our customer's needs in the second and into the third quarter while avoiding any potential shipping delays during Chinese New Year and any unexpected disruptions from rising COVID rates within China."
The Company has also entered into two important new sales agreements. In fencing, we have signed a consignment sales agreement with a major retailer for stores in several states that positions Jewett-Cameron as their primary supplier. This arrangement reduces our storage costs while improving our ability to meet market demand. We have also inked a new distribution agreement with SECOS Group of Australia to be the exclusive distributor of their MyEcoWorld® sustainable bag products in the US and Canada. SECOS is the supplier of our existing Lucky Dog Poop Bags, and this new agreement expands our line of sustainable products, including bin liners and other pet products and provide consumers with more environmentally friendly alternatives to hydrocarbon derived plastics. These agreements are examples of our continuing efforts to expand our product offerings that complement our traditional strengths.
As of November 30, 2022, the Company's cash position was approximately $1.7 million, and there was $7.6 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 2023.
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®, Infinity Euro Fence, 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, 2022 | August 31, 2022 | ||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 1,742,482 | $ | 484,463 | |
Accounts receivable, net of allowance of $0 (August 31, 2022 - $0) | 5,237,397 | 7,191,646 | |||
Inventory, net of allowance of $456,021 (August 31, 2022 - $800,000) | 22,002,459 | 20,632,313 | |||
Prepaid expenses | 624,114 | 1,112,575 | |||
Prepaid income taxes | 208,551 | 208,963 | |||
Total current assets | 29,815,003 | 29,629,960 | |||
Property, plant and equipment, net | 4,753,375 | 4,828,420 | |||
Intangible assets, net | 33,090 | 33,358 | |||
Deferred tax assets | 45,000 | 24,998 | |||
Total assets | $ | 34,646,468 | $ | 34,516,736 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 1,381,077 | $ | 1,566,047 | |
Bank indebtedness | 7,600,000 | 7,000,000 | |||
Accrued liabilities | 1,621,198 | 1,856,039 | |||
Total current liabilities | 10,602,275 | 10,422,086 | |||
Total liabilities | 10,602,275 | 10,422,086 | |||
Stockholders' equity | |||||
Capital stock Authorized 21,567,564 common shares, no par value 10,000,000 preferred shares, no par value Issued 3,498,899common shares (August 31, 2022 –3,495,342) | 825,468 | 824,629 | |||
Additional paid-in capital | 765,055 | 742,591 | |||
Retained earnings | 22,453,670 | 22,527,430 | |||
Total stockholders' equity | 24,044,193 | 24,094,650 | |||
Total liabilities and stockholders' equity | $ | 34,646,468 | $ | 34,516,736 | |
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) | |||||
Three Months Ended November 30, 2022 | Three Months Ended November 30, 2021 | ||||
SALES | $ | 12,577,500 | $ | 12,917,724 | |
COST OF SALES | 9,717,800 | 10,452,861 | |||
GROSS PROFIT | 2,859,700 | 2,464,863 | |||
OPERATING EXPENSES | |||||
Selling, general and administrative expenses | 826,807 | 988,288 | |||
Depreciation and amortization | 111,536 | 69,638 | |||
Wages and employee benefits | 1,928,155 | 1,874,118 | |||
2,866,498 | 2,932,044 | ||||
Loss from operations | (6,798) | (467,181) | |||
OTHER ITEMS | |||||
Other income | - | 3,000 | |||
Interest expense | (86,552) | (20,276) | |||
Total other items | (86,552) | (17,276) | |||
Loss before income taxes | (93,350) | (484,457) | |||
Income tax recovery | 19,590 | 93,316 | |||
Net loss | $ | (73,760) | $ | (391,141) | |
Basic loss per common share | $ | (0.02) | $ | (0.11) | |
Diluted loss per common share | $ | (0.02) | $ | (0.11) | |
Weighted average number of common shares outstanding: | |||||
Basic | 3,496,202 | 3,491,103 | |||
Diluted | 3,496,202 | 3,491,103 | |||
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) | |||||
Three Months Ended November 30, 2022 | Three Months Ended November 30, 2021 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net loss | $ | (73,760) | $ | (391,141) | |
Items not involving an outlay of cash: | |||||
Depreciation and amortization | 111,536 | 69,638 | |||
Stock-based compensation expense | 23,303 | 39,386 | |||
Deferred income taxes | (20,002) | 8,889 | |||
Changes in non-cash working capital items: | |||||
Decrease in accounts receivable | 1,954,249 | 1,279,516 | |||
(Increase) in inventory | (1,370,146) | (2,832,562) | |||
Decrease in prepaid expenses | 488,461 | 38,479 | |||
(Decrease) increase in accounts payable and accrued liabilities | (419,811) | 531,507 | |||
Decrease (increase) in prepaid income taxes | 412 | (102,205) | |||
Net cash provided by (used by) operating activities | 694,242 | (1,358,493) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of property, plant and equipment | (36,223) | (590,375) | |||
Net cash used in investing activities | (36,223) | (590,375) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Proceeds from bank indebtedness | 600,000 | 2,000,000 | |||
Net cash provided by financing activities | 600,000 | 2,000,000 | |||
Net increase in cash | 1,258,019 | 51,132 | |||
Cash, beginning of period | 484,463 | 1,184,313 | |||
Cash, end of period | $ | 1,742,482 | $ | 1,235,445 | |
Contact: Chad Summers, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
