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NORTH PLAINS, Ore., Nov. 12, 2020 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2020.
For the fiscal year ended August 31, 2020, Jewett-Cameron had sales of $44.9 million and net income of $2,784,525, or $0.77 per share, compared to sales of $45.4 million and net income of $2,100,452, or $0.50 per share, for fiscal 2019.
Sales for the fourth quarter of fiscal 2020 totaled $14.0 million compared to sales of $11.8 million in Q4 2019. Net income was $1,568,436, or $0.43 per share, compared to net income of $532,918, or $0.13 per share, in the fourth quarter of fiscal 2019.
"2020 has been a year to further invest in our core businesses by adding to our facilities, staff, products and brand awareness," said CEO Charlie Hopewell. "However, the COVID-19 pandemic presented tremendous challenges beginning in January. Due to our strict safety protocols, we have had no cases of COVID-19 among our personnel and we have been able to operate effectively throughout calendar 2020 to date. This allowed us to meet the increased demand for certain of our products during the second half of fiscal 2020, particularly in our DIY and pet lines."
As of August 31, 2020, the Company's cash position was $3.8 million, and currently there is no borrowing against its $3.0 million line of credit. During fiscal 2020, the Company privately repurchased for cancelation a total of 490,120 common shares from two large shareholders, including an officer and director of the Company, at a price of $7.89 per share. The total cost of the share repurchases was $3,867,046.
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, Animal House and AKC licensed products in the expanding pet market; fencing products under the Adjust-A-Gates, Fit-Right, Perimeter Patrol, and INFINITY Euro fence 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. AND SUBSIDIARIES | |||||
CONSOLIDATED BALANCE SHEETS | |||||
(Expressed in U.S. Dollars) | |||||
AS OF AUGUST 31 | |||||
2020 | 2019 | ||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 3,801,037 | $ | 9,652,310 | |
Accounts receivable, net of allowance of $Nil (August 31, 2019 - $Nil) | 6,274,426 | 2,835,952 | |||
Inventory, net of allowance of $65,000 (August 31, 2019 - $119,357) | 9,198,146 | 6,377,805 | |||
Note receivable | - | 1,197 | |||
Prepaid expenses | 1,036,128 | 393,539 | |||
Prepaid income taxes | - | 223,420 | |||
Total current assets | 20,309,737 | 19,484,223 | |||
Property, plant and equipment, net | 2,967,565 | 2,727,406 | |||
Intangible assets, net | 659 | 3,048 | |||
Total assets | $ | 23,277,961 | $ | 22,214,677 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 1,095,061 | $ | 410,027 | |
Current portion of notes payable | 342,326 | - | |||
Income taxes payable | 40,596 | - | |||
Accrued liabilities | 2,016,300 | 1,312,580 | |||
Total current liabilities | 3,494,283 | 1,722,607 | |||
Long-term liabilities | |||||
Notes payable | 338,381 | - | |||
Deferred tax liability | 96,952 | 61,204 | |||
Total liabilities | 3,929,616 | 1,783,811 | |||
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, 2019 – 3,971,282) | 821,284 | 936,903 | |||
Additional paid-in capital | 618,707 | 618,707 | |||
Retained earnings | 17,908,354 | 18,875,256 | |||
Total stockholders' equity | 19,348,345 | 20,430,866 | |||
Total liabilities and stockholders' equity | $ | 23,277,961 | $ | 22,214,677 | |
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||
(Expressed in U.S. Dollars) | |||||
YEARS ENDED AUGUST 31 | |||||
2020 | 2019 | ||||
SALES | $ | 44,945,263 | $ | 45,446,362 | |
COST OF SALES | 32,472,080 | 35,481,931 | |||
GROSS PROFIT | 12,473,183 | 9,964,431 | |||
OPERATING EXPENSES | |||||
Selling, general and administrative | 2,502,989 | 2,127,296 | |||
Depreciation and amortization | 217,712 | 191,819 | |||
Wages and employee benefits | 5,894,346 | 4,907,766 | |||
8,615,047 | 7,226,881 | ||||
Income from operations | 3,858,136 | 2,737,550 | |||
OTHER ITEMS | |||||
Gain on sale of property, plant and equipment | 6,600 | 105,366 | |||
Interest and other income | 24,420 | 45,228 | |||
31,020 | 150,594 | ||||
Income before income taxes | 3,889,156 | 2,888,144 | |||
Income taxes | |||||
Current | 1,068,883 | 808,341 | |||
Deferred (recovery) | 35,748 | (20,649) | |||
Net income for the year | $ | 2,784,525 | $ | 2,100,452 | |
Basic earnings per common share | $ | 0.77 | $ | 0.50 | |
Diluted earnings per common share | $ | 0.77 | $ | 0.50 | |
Weighted average number of common shares outstanding: | |||||
Basic | 3,623,413 | 4,233,304 | |||
Diluted | 3,623,413 | 4,233,304 | |||
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(Expressed in U.S. Dollars) | |||||
YEARS ENDED AUGUST 31 | |||||
2020 | 2019 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income for the year | $ | 2,784,525 | $ | 2,100,452 | |
Items not affecting cash: | |||||
Depreciation and amortization | 217,712 | 191,819 | |||
(Gain) on sale of property, plant and equipment | (6,600) | (105,366) | |||
Deferred income taxes | 35,748 | (20,649) | |||
Changes in non-cash working capital items: | |||||
(Increase) decrease in accounts receivable | (3,438,474) | 1,316,540 | |||
Decrease in note receivable | 1,197 | 2,803 | |||
(Increase) decrease in inventory | (2,820,341) | 3,425,392 | |||
(Increase) in prepaid expenses | (642,589) | (46,288) | |||
Decrease (increase) in prepaid income taxes | 223,420 | (109,110) | |||
Increase (decrease) in accounts payable and accrued liabilities | 1,388,754 | (449,692) | |||
Increase in income taxes payable | 40,596 | - | |||
Net cash (used by) provided by operating activities | (2,216,052) | 6,305,901 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Proceeds on sale of property, plant and equipment | 400 | 324,675 | |||
Purchase of property, plant and equipment | (449,282) | (32,732) | |||
Net cash (used in) provided by investing activities | (448,882) | 291,943 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Increase in notes payable | 680,707 | - | |||
Issuance of common stock | - | 18,444 | |||
Redemption of common stock | (3,867,046) | (3,061,441) | |||
Net cash used in financing activities | (3,186,339) | (3,042,997) | |||
Net (decrease) increase in cash | (5,851,273) | 3,554,847 | |||
Cash, beginning of year | 9,652,310 | 6,097,463 | |||
Cash, end of year | $ | 3,801,037 | $ | 9,652,310 | |
Contact: Charlie Hopewell, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
