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NORTH PLAINS, Ore., Jan. 14, 2021 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2021 ended November 30, 2020.
Sales for the first quarter of fiscal 2021 totaled $10.3 million compared to sales of $7.1 million for the first quarter of fiscal 2020. Net income for the current quarter was $488,527, or $0.14 per share, compared to a net loss of ($6,621), or ($0.00) per share, in the year-ago quarter.
"We continue to see strong demand from the DIY and pet product sectors which is elevating our brand and market presence. We feel the pandemic has bolstered our market penetration and accelerated our strategic campaign to rebrand our products to connect directly with consumers and expand our presence in more sales channels" said CEO Charlie Hopewell. "Even though the economic effects of the ongoing COVID-19 pandemic are uncertain, we remain committed to this strategy in fiscal 2021."
As of November 30, 2020, the Company's cash position was approximately $5.8 million, and there was no borrowing against its $3.0 million line of credit.
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, Animal House and AKC licensed products in the expanding pet market; fencing products under the Adjust-A-Gates, Fit-Right, Perimeter Patrol, and LIFETIME POST™ systems brands; Early Start, Spring Gardner, and Weatherguard for greenhouses; and TrueShade for patio umbrellas, furniture covers and canopies. 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 30,2020 | August 31,2020 | ||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 5,839,952 | $ | 3,801,037 | |
Accounts receivable, net of allowance of $Nil (August 31, 2020 - $Nil) | 4,246,957 | 6,274,426 | |||
Inventory, net of allowance of $65,000 (August 31, 2020 - $65,000) | 9,421,159 | 9,198,146 | |||
Prepaid expenses | 839,873 | 1,036,128 | |||
Total current assets | 20,347,941 | 20,309,737 | |||
Property, plant and equipment, net | 3,101,343 | 2,967,565 | |||
Intangible assets, net | 599 | 659 | |||
Total assets | $ | 23,449,883 | $ | 23,277,961 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 974,176 | $ | 1,095,061 | |
Current portion of notes payable | 415,988 | 342,326 | |||
Income taxes payable | 219,636 | 40,596 | |||
Accrued liabilities | 1,682,324 | 2,016,300 | |||
Total current liabilities | 3,292,124 | 3,494,283 | |||
Long-term liabilities | |||||
Notes payable (note 8) | 264,719 | 338,381 | |||
Deferred tax liability | 56,168 | 96,952 | |||
Total liabilities | 3,613,011 | 3,929,616 | |||
Stockholders' equity | |||||
Capital stock | |||||
Authorized | |||||
21,567,564 common shares, without par value | |||||
10,000,000 preferred shares, without par value | |||||
Issued | |||||
3,481,162 common shares (August 31, 2020 – 3,481,162) | 821,284 | 821,284 | |||
Additional paid-in capital | 618,707 | 618,707 | |||
Retained earnings | 18,396,881 | 17,908,354 | |||
Total stockholders' equity | 19,836,872 | 19,348,345 | |||
Total liabilities and stockholders' equity | $ | 23,449,883 | $ | 23,277,961 | |
JEWETT-CAMERON TRADING COMPANY LTD. | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(Expressed in U.S. Dollars) | |||||
(Prepared by Management) | |||||
(Unaudited) | |||||
Three Months Ended November 30, 2020 | Three Months Ended November 30, 2019 | ||||
SALES | $ | 10,316,284 | $ | 7,055,178 | |
COST OF SALES | 7,353,385 | 5,006,835 | |||
GROSS PROFIT | 2,962,899 | 2,048,343 | |||
OPERATING EXPENSES | |||||
Selling, general and administrative expenses | 694,628 | 649,010 | |||
Depreciation and amortization | 50,529 | 48,148 | |||
Wages and employee benefits | 1,593,959 | 1,362,059 | |||
2,339,116 | 2,059,217 | ||||
Income from operations | 623,783 | (10,874) | |||
OTHER ITEMS | |||||
Interest and other income | 3,000 | 11,615 | |||
Income before income taxes | 626,783 | 741 | |||
Income tax expense | (138,256) | (7,362) | |||
Net income (loss) | $ | 488,527 | $ | (6,621) | |
Basic earnings per common share | $ | 0.14 | $ | (0.00) | |
Diluted earnings per common share | $ | 0.14 | $ | (0.00) | |
Weighted average number of common shares outstanding: | |||||
Basic | 3,481,162 | 3,971,282 | |||
Diluted | 3,481,162 | 3,971,282 | |||
JEWETT-CAMERON TRADING COMPANY LTD. | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(Expressed in U.S. Dollars) | |||||
(Prepared by Management) | |||||
(Unaudited) | |||||
Three Months Ended November 30, 2020 | Three Months Ended November 30, 2019 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income (loss) | $ | 488,527 | $ | (6,621) | |
Items not involving an outlay of cash: | |||||
Depreciation and amortization | 50,529 | 48,148 | |||
Deferred income taxes | (40,784) | (14,101) | |||
Changes in non-cash working capital items: | |||||
Decrease in accounts receivable | 2,027,469 | 671,926 | |||
(Increase) in inventory | (223,013) | (902,321) | |||
Decrease in note receivable | - | 200 | |||
Decrease (increase) in prepaid expenses | 196,255 | (175,276) | |||
Decrease in accounts payable and accrued liabilities | (454,861) | (297,730) | |||
Decrease in prepaid income taxes | - | 21,464 | |||
Increase in income taxes payable | 179,040 | - | |||
Net cash provided by (used by) operating activities | 2,223,162 | (654,311) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of property, plant and equipment | (184,247) | (28,750) | |||
Net cash used in investing activities | (184,247) | (28,750) | |||
Net increase (decrease) in cash | 2,038,915 | (683,061) | |||
Cash, beginning of period | 3,801,037 | 9,652,310 | |||
Cash, end of period | $ | 5,839,952 | $ | 8,969,249 | |
Contact: Charlie Hopewell, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
