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NORTH PLAINS, Ore., Nov. 28, 2023 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2023.
For the fiscal year ended August 31, 2023, Jewett-Cameron had sales of $54.3 million and a net loss of ($20,626), or ($0.01) per share, compared to sales of $62.9 million and net income of $1,164,123, or $0.33 per share, for fiscal 2022.
Sales for the fourth quarter of fiscal 2023 totaled $14,6 million compared to sales of $15.0 million in Q4 2022. Net income in the current fourth quarter was $290,221, or $0.08 per share, compared to a net loss of ($208,666), or ($0.06) per share, in the fourth quarter of fiscal 2022.
"Our results were hurt by the extended winter weather across the US which delayed, and then reduced, purchases of our outdoor lines" said CEO Chad Summers. "Inflationary pressures also negatively affected results as consumers reduced their discretionary spending, particularly on home improvement and pet products. During the year, we improved our operations and favorably adjusted key supply and logistic agreements. We are continuing the launch of our new MyEcoWorld® sustainable bag products as a less seasonal product line while firmly focusing on our strengths and core product lines."
The Company has successfully ended cleaning operations at its Jewett-Cameron Seed segment effective August 31, 2023. Full closure of the facility is expected to be completed by the end of calendar 2023.
As of August 31, 2023, the Company's cash position was approximately $84 thousand and had borrowed $1.26 million against its $10 million line of credit. Subsequent to the end of the fiscal year, the Company repaid the remaining balance borrowed against the 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 and sustainable bag products, and wholesale distribution of wood products. 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; MyEcoWorld® for sustainable bag products; 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 SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) AS OF AUGUST 31 | |||||||||
2023 | 2022 | ||||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 83,696 | $ | 484,463 | |||||
Accounts receivable, net of allowance of $0 (August 31, 2022 - $0) | 5,634,924 | 7,191,646 | |||||||
Inventory, net of allowance of $497,884 (August 31, 2022 - $800,000) | 18,339,048 | 20,632,313 | |||||||
Prepaid expenses | 630,788 | 1,112,575 | |||||||
Prepaid income taxes | - | 208,963 | |||||||
Total current assets | 24,688,456 | 29,629,960 | |||||||
Property, plant and equipment, net | 4,655,427 | 4,828,420 | |||||||
Intangible assets, net | 134,845 | 33,358 | |||||||
Deferred tax assets | 319,875 | 24,998 | |||||||
Total assets | $ | 29,798,603 | $ | 34,516,736 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 2,181,194 | $ | 1,566,047 | |||||
Bank indebtedness | 1,259,259 | 7,000,000 | |||||||
Income taxes payable | 147,629 | - | |||||||
Accrued liabilities | 2,113,194 | 1,856,039 | |||||||
Total liabilities | 5,701,276 | 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 | 22,506,804 | 22,527,430 | |||||||
Total stockholders' equity | 24,097,327 | 24,094,650 | |||||||
Total liabilities and stockholders' equity | $ | 29,798,603 | $ | 34,516,736 | |||||
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) YEARS ENDED AUGUST 31 | |||||
2023 | 2022 | ||||
SALES | $ | 54,289,303 | $ | 62,901,831 | |
COST OF SALES | 42,042,178 | 49,108,772 | |||
GROSS PROFIT | 12,247,125 | 13,793,059 | |||
OPERATING EXPENSES | |||||
Selling, general and administrative | 3,973,055 | 4,008,166 | |||
Depreciation and amortization (notes 4, 5) | 397,922 | 319,617 | |||
Wages and employee benefits | 7,445,464 | 7,495,723 | |||
11,816,441 | 11,823,506 | ||||
Income from operations | 430,684 | 1,969,553 | |||
OTHER ITEMS | |||||
Gain on sale of property, plant and equipment | 70,250 | 4,526 | |||
Other income (loss) (note 14) | - | (230,034) | |||
Interest expense | (458,463) | (163,045) | |||
(388,213) | (388,553) | ||||
Income before income taxes | 42,471 | 1,581,000 | |||
Income taxes (note 6) | |||||
Current | (63,097) | (558,820) | |||
Deferred recovery | - | 141,943 | |||
Net (loss) income for the year | $ | (20,626) | $ | 1,164,123 | |
Basic (loss) earnings per common share | $ | (0.01) | $ | 0.33 | |
Diluted (loss) earnings per common share | $ | (0.01) | $ | 0.33 | |
Weighted average number of common shares outstanding: | |||||
Basic | 3,498,236 | 3,493,807 | |||
Diluted | 3,498,236 | 3,493,807 | |||
JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) YEARS ENDED AUGUST 31 | |||||
2023 |
2022 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net (loss) income for the year | $ | (20,626) | $ | 1,164,123 | |
Items not affecting cash: | |||||
Depreciation and amortization | 397,922 | 319,617 | |||
Stock-based compensation expense | 23,303 | 56,838 | |||
Gain on sale of property, plant and equipment | (70,250) | (4,526) | |||
Deferred income taxes | (294,877) | (141,943) | |||
Changes in non-cash working capital items: | |||||
Decrease (increase) in accounts receivable | 1,556,722 | (105,143) | |||
Decrease (increase) in inventory | 2,293,265 | (6,240,948) | |||
Decrease in prepaid expenses | 481,787 | 1,193,245 | |||
Decrease in prepaid income taxes | 208,963 | 43,995 | |||
Increase in accounts payable and accrued liabilities | 872,302 | 274,321 | |||
Increase in income taxes payable | 147,629 | - | |||
Net cash and cash equivalents provided by (used by) operating activities | 5,596,140 | (3,440,421) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Increase in intangible assets | (102,500) | (3,535) | |||
Proceeds on sale of property, plant and equipment | 70,250 | - | |||
Purchase of property, plant and equipment | (223,916) | (1,255,894) | |||
Net cash and cash equivalents used in investing activities | (256,166) | (1,259,429) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
(Repayment) proceeds from bank indebtedness | (5,740,741) | 4,000,000 | |||
Net cash and cash equivalents provided by (used in) financing activities | (5,740,741) | 4,000,000 | |||
Net (decrease) in cash and cash equivalents | (400,767) | (699,850) | |||
Cash and cash equivalents, beginning of year | 484,463 | 1,184,313 | |||
Cash and cash equivalents, end of year | $ | 83,696 | $ | 484,463 | |
Contact: Chad Summers, Chief Executive Officer, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
