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NORTH PLAINS, Ore., July 14, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine-month periods of fiscal 2022 ended May 31, 2022.
Sales for the third quarter of fiscal 2022 totaled approximately $20.9 million compared to sales of $21.6 million for the third quarter of fiscal 2021. Income from operations was $2,019,644 compared to $2,638,011 for the third quarter ended May 31, 2021. Net income after other items and income taxes for the current quarter was $1,494,111, or $0.43 per share, compared to net income of $2,414,477, or $0.69 per share, in the same quarter of 2021.
For the nine months ended May 31, 2022, Jewett-Cameron reported sales of $47.9 million compared to sales of $42.4 million for the nine months ended May 31, 2021. Net income was $1,372,789, or $0.39 per share, compared to net income of $2,849,839, or $0.82 per share, for the first nine months of fiscal 2021.
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.
"Our decision to build our most important inventory at the beginning of our busy Spring and Summer season worked well," said CEO Chad Summers. "It reduced some product costs and helped insulate us against the continuing supply chain disruptions from China. We were able to provide high product availability and on-time fulfillment rates for our customers. We remain well positioned with our inventory on hand entering the 4th quarter."
As of May 31, 2022, the Company's cash position was approximately $2.1 million, and there was $9.0 million borrowed against its $10.0 million line of credit. Subsequent to the end of the period, the Company repaid an additional $1.0 million, and as product is sold and accounts receivable are collected, we expect to continue to repay the amount drawn against the 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 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) |
May 31, 2022 | August 31, 2021 | ||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 2,130,450 | $ | 1,184,313 | |
Accounts receivable, net of allowance of $Nil (August 31, 2021 - $0) | 8,271,856 | 7,086,503 | |||
Inventory, net of allowance of $250,000 (August 31, 2021 - $250,000) | 19,898,803 | 14,391,365 | |||
Prepaid expenses | 2,257,576 | 2,305,820 | |||
Prepaid income taxes | 3,876 | 252,958 | |||
Total current assets | 32,562,561 | 25,220,959 | |||
Property, plant and equipment, net | 4,661,706 | 3,886,543 | |||
Intangible assets, net | 30,092 | 30,897 | |||
Total assets | $ | 37,254,359 | $ | 29,138,399 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 1,794,717 | $ | 1,349,677 | |
Bank indebtedness | 9,000,000 | 3,000,000 | |||
Accrued liabilities | 2,045,281 | 1,798,088 | |||
Total current liabilities | 12,839,998 | 6,147,765 | |||
Deferred tax liability | 128,497 | 116,945 | |||
Total liabilities | 12,968,495 | 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 3,492,842common shares (August 31, 2021 –3,489,161) | 824,039 | 823,171 | |||
Additional paid-in capital | 725,729 | 687,211 | |||
Retained earnings | 22,736,096 | 21,363,307 | |||
Total stockholders' equity | 24,285,864 | 22,873,689 | |||
Total liabilities and stockholders' equity | $ | 37,254,359 | $ | 29,138,399 | |
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, | ||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||
SALES | $ | 20,922,190 | $ | 21,619,952 | $ | 47,900,665 | $ | 42,396,591 | |||
COST OF SALES | 15,569,380 | 16,037,702 | 36,658,766 | 31,239,866 | |||||||
GROSS PROFIT | 5,352,810 | 5,582,250 | 11,241,899 | 11,156,725 | |||||||
OPERATING EXPENSES | |||||||||||
Selling, general and administrative expenses | 1,125,692 | 966,298 | 2,798,094 | 2,556,902 | |||||||
Depreciation and amortization | 83,291 | 69,353 | 237,001 | 175,171 | |||||||
Wages and employee benefits | 2,124,183 | 1,908,588 | 5,957,601 | 5,226,021 | |||||||
3,333,166 | 2,944,239 | 8,992,696 | 7,958,094 | ||||||||
Income from operations | 2,019,644 | 2,638,011 | 2,249,203 | 3,198,631 | |||||||
OTHER ITEMS | |||||||||||
Other income | 903 | 3,000 | (294,097) | 9,000 | |||||||
Interest expense | (47,972) | (9,283) | (98,868) | (9,283) | |||||||
Gain on extinguishment of debt | - | 687,387 | - | 687,387 | |||||||
(47,069) | 681,104 | (392,965) | 687,104 | ||||||||
Income before income taxes | 1,972,575 | 3,319,115 | 1,856,238 | 3,885,735 | |||||||
Income tax expense | (478,464) | (904,638) | (483,449) | (1,035,896) | |||||||
Net income | $ | 1,494,111 | $ | 2,414,477 | $ | 1,372,789 | $ | 2,849,839 | |||
Basic earnings per common share | $ | 0.43 | $ | 0.69 | $ | 0.39 | $ | 0.82 | |||
Diluted earnings per common share | $ | 0.43 | $ | 0.69 | $ | 0.39 | $ | 0.82 | |||
Weighted average number of common shares outstanding: | |||||||||||
Basic | 3,492,842 | 3,489,161 | 3,492,266 | 3,485,525 | |||||||
Diluted | 3,492,842 | 3,489,161 | 3,492,266 | 3,485,525 | |||||||
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, | ||||||
2022 | 2021 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income | $ | 1,372,789 | $ | 2,849,839 | ||
Items not involving an outlay of cash: | ||||||
Depreciation and amortization | 237,001 | 175,171 | ||||
Stock-based compensation expense | 39,386 | 70,391 | ||||
Gain on extinguishment of debt | - | (680,707) | ||||
Deferred income tax expense | 11,552 | (57,768) | ||||
Changes in non-cash working capital items: | ||||||
(Increase) in accounts receivable | (1,185,353) | (4,776,635) | ||||
(Increase) decrease in inventory | (5,507,438) | 1,430,506 | ||||
Decrease (increase) in prepaid expenses | 48,244 | (1,544,728) | ||||
Decrease in prepaid income taxes | 249,082 | - | ||||
Increase in accounts payable and accrued liabilities | 692,233 | 736,595 | ||||
Increase in income taxes payable | - | 189,594 | ||||
Net cash (used in) provided by operating activities | (4,042,504) | (1,607,742) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Purchase of property, plant and equipment | (1,011,359) | (1,019,259) | ||||
Net cash provided by (used in) investing activities | (1,011,359) | (1,019,259) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Proceeds from bank indebtedness | 6,000,000 | 996,010 | ||||
Net cash provided by (used in) financing activities | 6,000,000 | 996,010 | ||||
Net increase (decrease) in cash | 946,137 | (1,630,991) | ||||
Cash, beginning of period | 1,184,313 | 3,801,037 | ||||
Cash, end of period | $ | 2,130,450 | $ | 2,170,046 | ||
Contact: Chad Summers, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
