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NORTH PLAINS, Ore., July 13, 2023 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine-month periods of fiscal 2023 ended May 31, 2023.
Sales for the third quarter of fiscal 2023 totaled approximately $18.9 million compared to sales of $20.9 million for the third quarter of fiscal 2022. Income from operations was $1,251,019 compared to $2,019,644 for the third quarter ended May 31, 2022. Net income after other items and income taxes for the current quarter was $734,951, or $0.21 per share, compared to net income of $1,494,111, or $0.43 per share, in the same quarter of 2022.
For the nine months ended May 31, 2023, Jewett-Cameron reported sales of approximately $39.67 million compared to sales of $47.90 million for the nine months ended May 31, 2022. Net loss was ($310,847), or ($0.09) per share, compared to net income of $1,372,789, or $0.39 per share, for the first nine months of fiscal 2022.
"The winter weather which covered much of the US into April had a negative effect on our 3rd quarter sales, as many of our customers delayed, and then reduced, purchases of our outdoor products," said CEO Chad Summers. "We soft-launched our new MyEcoWorld® sustainable bag products in the 3rd quarter, with full launch to occur in the 4th quarter. This new line is less seasonal than our other products and has the potential to grow into a significant segment of our business as consumers seek alternatives to traditional hydrocarbon derived plastics."
During the 3rd quarter, the Company announced it has decided to close its Jewett-Cameron Seed segment effective August 31, 2023. The wind-down of operations has been proceeding smoothly, and full closure of the facility is expected to be completed by the end of calendar 2023.
As of May 31, 2023, the Company's cash position was approximately $2.7 million, and there was $8.0 million borrowed against its $12.0 million line of credit, which was temporarily increased by $2.0 million during the 3rd quarter. Subsequent to the end of the period, the Company repaid an additional $1.0 million.
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, 2023 | August 31, 2022 | ||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 2,716,051 | $ | 484,463 | |
Accounts receivable, net of allowance of $0 (August 31, 2022 - $0) | 7,530,135 | 7,191,646 | |||
Inventory, net of allowance of $449,707 (August 31, 2022 - $800,000) | 20,529,230 | 20,632,313 | |||
Prepaid expenses | 870,148 | 1,112,575 | |||
Prepaid income taxes | - | 208,963 | |||
Total current assets | 31,645,564 | 29,629,960 | |||
Property, plant and equipment, net | 4,745,987 | 4,828,420 | |||
Intangible assets, net | 134,399 | 33,358 | |||
Deferred tax assets | 391,564 | 24,998 | |||
Total assets | $ | 36,917,514 | $ | 34,516,736 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 2,631,045 | $ | 1,566,047 | |
Bank indebtedness | 8,000,000 | 7,000,000 | |||
Accrued liabilities | 2,332,148 | 1,856,039 | |||
Income taxes payable | 147,215 | - | |||
Total liabilities | 13,110,408 | 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 | 22,216,583 | 22,527,430 | |||
Total stockholders' equity | 23,807,106 | 24,094,650 | |||
Total liabilities and stockholders' equity | $ | 36,917,514 | $ | 34,516,736 | |
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, | ||||||||
2023 | 2022 | 2023 | 2022 | ||||||
SALES | $ | 18,945,738 | $ | 20,922,190 | $ | 39,666,658 | $ | 47,900,665 | |
COST OF SALES | 14,532,366 | 15,569,380 | 30,473,044 | 36,658,766 | |||||
GROSS PROFIT | 4,413,372 | 5,352,810 | 9,193,614 | 11,241,899 | |||||
OPERATING EXPENSES | |||||||||
Selling, general and administrative expenses | 961,566 | 1,125,692 | 2,884,463 | 2,798,094 | |||||
Depreciation and amortization | 99,962 | 83,291 | 299,577 | 237,001 | |||||
Wages and employee benefits | 2,100,825 | 2,124,183 | 5,975,438 | 5,957,601 | |||||
3,162,353 | 3,333,166 | 9,159,478 | 8,992,696 | ||||||
Income from operations | 1,251,019 | 2,019,644 | 34,136 | 2,249,203 | |||||
OTHER ITEMS | |||||||||
Other income | - | 903 | - | (294,097) | |||||
Interest expense | (152,905) | (47,972) | (353,987) | (98,868) | |||||
(152,905) | (47,069) | (353,987) | (392,965) | ||||||
Income (loss) before income taxes | 1,098,114 | 1,972,575 | (319,851) | 1,856,238 | |||||
Income tax expense (recovery) | (363,163) | (478,464) | 9,004 | (483,449) | |||||
Net income (loss) | $ | 734,951 | $ | 1,494,111 | $ | (310,847) | $ | 1,372,789 | |
Basic earnings per common share | $ | 0.21 | $ | 0.43 | $ | (0.09) | $ | 0.39 | |
Diluted earnings per common share | $ | 0.21 | $ | 0.43 | $ | (0.09) | $ | 0.39 | |
Weighted average number of common shares outstanding: | |||||||||
Basic | 3,498,899 | 3,492,842 | 3,498,000 | 3,492,266 | |||||
Diluted | 3,498,899 | 3,492,842 | 3,498,000 | 3,492,266 | |||||
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, | |||||
2023 | 2022 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net (loss) income | $ | (310,847) | $ | 1,372,789 | |
Items not involving an outlay of cash: | |||||
Depreciation and amortization | 299,577 | 237,001 | |||
Stock-based compensation expense | 23,303 | 39,386 | |||
Deferred income tax expense | (366,566) | 11,552 | |||
Changes in non-cash working capital items: | |||||
(Increase) in accounts receivable | (338,489) | (1,185,353) | |||
Decrease (increase) in inventory | 103,083 | (5,507,438) | |||
Decrease in prepaid expenses | 242,427 | 48,244 | |||
Decrease in prepaid income taxes | 208,963 | 249,082 | |||
Increase in accounts payable and accrued liabilities | 1,541,107 | 692,233 | |||
Increase in income taxes payable | 147,215 | - | |||
Net cash provided by (used in) operating activities | 1,549,773 | (4,042,504) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Increase in intangible assets | (102,500) | - | |||
Purchase of property, plant and equipment | (215,685) | (1,011,359) | |||
Net cash (used in) investing activities | (318,185) | (1,011,359) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Net proceeds and repayments from bank indebtedness | 1,000,000 | 6,000,000 | |||
Net cash provided by financing activities | 1,000,000 | 6,000,000 | |||
Net increase in cash | 2,231,588 | 946,137 | |||
Cash, beginning of period | 484,463 | 1,184,313 | |||
Cash, end of period | $ | 2,716,051 | $ | 2,130,450 | |
Contact: Chad Summers, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.
