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NORTH PLAINS, Ore., Nov. 29, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2022.
For the fiscal year ended August 31, 2022, Jewett-Cameron had sales of $62.9 million and net income of $1,164,123, or $0.33 per share, compared to sales of $57.5 million and net income of $3,454,953, or $0.99 per share, for fiscal 2021.
Sales for the fourth quarter of fiscal 2022 totaled $15.0 million compared to sales of $15.1 million in Q4 2021. Net loss in the current fourth quarter was ($208,666), or ($0.06) per share, compared to net income of $605,114, or $0.18 per share, in the fourth quarter of fiscal 2021.
"Jewett-Cameron has weathered the unprecedented supply chain challenges well over the past year given the extraordinary circumstances. We sold more units year over year in multiple categories", said CEO Chad Summers. "Some products faced unique challenges that reduced their sales, but we have already met with customers to correct the issues going forward. We are excited to build upon our successes in the year ahead."
As of August 31, 2022, the Company's cash position was approximately $484 thousand and had borrowed $7 million against its $10 million line of credit. The Company expects to purchase less goods in the first two quarters of fiscal 2023 than it typically does as its current inventory position will be sufficient to carry the Company into its historically busy season in the final two quarters of the fiscal year.
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. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Expressed in U.S. Dollars)AS OF AUGUST 31 | |||||||||
2022 | 2021 | ||||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 484,463 | $ | 1,184,313 | |||||
Accounts receivable, net of allowance of $0 (August 31, 2021 - $0) | 7,191,646 | 7,086,503 | |||||||
Inventory, net of allowance of $800,000 (August 31, 2021 - $250,000) | 20,632,313 | 14,391,365 | |||||||
Prepaid expenses | 1,112,575 | 2,305,820 | |||||||
Prepaid income taxes | 208,963 | 252,958 | |||||||
Total current assets | 29,629,960 | 25,220,959 | |||||||
Property, plant and equipment, net | 4,828,420 | 3,886,543 | |||||||
Intangible assets, net | 33,358 | 30,897 | |||||||
Deferred tax assets | 24,998 | - | |||||||
Total assets | $ | 34,516,736 | $ | 29,138,399 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 1,566,047 | $ | 1,349,677 | |||||
Bank indebtedness | 7,000,000 | 3,000,000 | |||||||
Accrued liabilities | 1,856,039 | 1,798,088 | |||||||
Total current liabilities | 10,422,086 | 6,147,765 | |||||||
Deferred tax liability | - | 116,945 | |||||||
Total liabilities | 10,422,086 | 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 3,495,342common shares (August 31, 2021 –3,489,161) |
824,629 | 823,171 | |||||||
Additional paid-in capital | 742,591 | 687,211 | |||||||
Retained earnings | 22,527,430 | 21,363,307 | |||||||
Total stockholders' equity | 24,094,650 | 22,873,689 | |||||||
Total liabilities and stockholders' equity | $ | 34,516,736 | $ | 29,138,399 | |||||
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(Expressed in U.S. Dollars)YEARS ENDED AUGUST 31 | |||||
2022 | 2021 | ||||
SALES | $ | 62,901,831 | $ | 57,501,543 | |
COST OF SALES | 49,108,772 | 43,354,897 | |||
GROSS PROFIT | 13,793,059 | 14,146,646 | |||
OPERATING EXPENSES | |||||
Selling, general and administrative | 4,008,166 | 3,204,945 | |||
Depreciation and amortization | 319,617 | 244,279 | |||
Wages and employee benefits | 7,495,723 | 6,957,730 | |||
11,823,506 | 10,406,954 | ||||
Income from operations | 1,969,553 | 3,739,692 | |||
OTHER ITEMS | |||||
Gain on sale of property, plant and equipment | 4,526 | - | |||
Other income (loss) | (230,034) | 12,450 | |||
Interest expense | (163,045) | (15,321) | |||
Gain on extinguishment of debt | - | 687,387 | |||
(388,553) | 684,516 | ||||
Income before income taxes | 1,581,000 | 4,424,208 | |||
Income taxes (note 6) | |||||
Current | (558,820) | (949,262) | |||
Deferred recovery (expense) | 141,943 | (19,993) | |||
Net income for the year | $ | 1,164,123 | $ | 3,454,953 | |
Basic earnings per common share | $ | 0.33 | $ | 0.99 | |
Diluted earnings per common share | $ | 0.33 | $ | 0.99 | |
Weighted average number of common shares outstanding: | |||||
Basic | 3,493,807 | 3,486,537 | |||
Diluted | 3,493,807 | 3,486,537 | |||
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Expressed in U.S. Dollars)YEARS ENDED AUGUST 31 | |||||
2022 | 2021 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income for the year | $ | 1,164,123 | $ | 3,454,953 | |
Items not affecting cash: | |||||
Depreciation and amortization | 319,617 | 244,279 | |||
Stock-based compensation expense | 56,838 | 70,391 | |||
(Gain) on sale of property, plant and equipment | (4,526) | - | |||
Gain on extinguishment of debt | - | (680,707) | |||
Deferred income taxes | (141,943) | 19,993 | |||
Changes in non-cash working capital items: | |||||
(Increase) in accounts receivable | (105,143) | (812,077) | |||
(Increase) in inventory | (6,240,948) | (5,193,219) | |||
Decrease (increase) in prepaid expenses | 1,193,245 | (1,269,692) | |||
Decrease (increase) in prepaid income taxes | 43,995 | (252,959) | |||
Increase in accounts payable and accrued liabilities | 274,321 | 36,404 | |||
(Decrease) in income taxes payable | - | (40,596) | |||
Net cash (used by) operating activities | (3,440,421) | (4,423,230) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Increase in intangible assets | (3,535) | (30,755) | |||
Purchase of property, plant and equipment | (1,255,894) | (1,162,739) | |||
Net cash used in investing activities | (1,259,429) | (1,193,494) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Proceeds from bank indebtedness | 4,000,000 | 3,000,000 | |||
Net cash provided by financing activities | 4,000,000 | 3,000,000 | |||
Net (decrease) in cash | (699,850) | (2,616,724) | |||
Cash, beginning of year | 1,184,313 | 3,801,037 | |||
Cash, end of year | $ | 484,463 | $ | 1,184,313 | |
Contact: Chad Summers, Chief Executive Officer, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
