NORTH
PLAINS, Ore., April 14,
2022 /PRNewswire/ -- Jewett-Cameron Trading Company
Ltd. (NASDAQ: JCTCF) today reported financial results for the
second quarter and six month periods of fiscal 2022 ended
February 28, 2022.
Sales for the second quarter of fiscal 2022 totaled $14.06 million compared to sales of $10.46 million for the second quarter of fiscal
2021. Income from operations was $696,740 compared to a loss of ($63,162) for the quarter ended February 28, 2021. Net income was $269,820, or $0.08
per share, compared to a net loss of ($53,164), or ($0.02) per share, in the year-ago quarter.
For the six months ended February 28,
2022, sales totaled $27.0
million compared to sales of $20.8
million for the six months ended February 28, 2021. Income from operations was
$229,559 compared to income of
$560,621 for the six months ending in
February 28, 2021. Net loss was
($121,322), or ($0.03) per share, compared to net income of
$435,363, or $0.12 per share, in the first six months of
fiscal 2021
Net income in both the current quarter and six month periods was
negatively affected by the accrual of $300,000 to settle a legal claim in California regarding the environmental
labeling and marketing of the Company's dog waste bags.
"We are pleased with the sales increases for both the quarter
and six months, which continues to reflect the strong demand for
our products" said CEO Chad Summers.
"We feel well positioned to navigate the rising raw material and
shipping costs and continuing worldwide logistic disruptions.
Entering the third quarter, we have more months of inventory
on hand of our most strategically important products compared to
prior years. Our decision to optimize our inventory on hand
mitigates the risk of not having enough goods to fulfill expected
orders during our traditionally busy Spring and Summer
seasons."
As of February 28, 2022, the
Company's cash position was approximately $0.9 million, and there was $9.5 million borrowed against its $10.0 million line of credit. Based on the timing
of accounts receivable, the Company believes it will begin to repay
the amounts borrowed on its line of credit in the third quarter,
and it has sufficient working capital available for the remainder
of fiscal 2022.
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)
|
|
|
February
28,
2022
|
|
August
31,
2021
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
899,055
|
|
$
|
1,184,313
|
Accounts
receivable, net of allowance of $Nil (August 31, 2021 -
$0)
|
|
9,137,254
|
|
|
7,086,503
|
Inventory, net
of allowance of $250,000 (August 31, 2021 -
$250,000)
|
|
18,630,148
|
|
|
14,391,365
|
Prepaid
expenses
|
|
2,559,893
|
|
|
2,305,820
|
Prepaid income
taxes
|
|
258,205
|
|
|
252,958
|
|
|
|
|
|
|
Total current
assets
|
|
31,484,555
|
|
|
25,220,959
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
4,638,238
|
|
|
3,886,543
|
|
|
|
|
|
|
Intangible assets,
net
|
|
33,894
|
|
|
30,897
|
|
|
|
|
|
|
Total
assets
|
$
|
36,156,687
|
|
$
|
29,138,399
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,660,664
|
|
$
|
1,349,677
|
Bank
indebtedness
|
|
9,500,000
|
|
|
3,000,000
|
Accrued
liabilities
|
|
2,078,436
|
|
|
1,798,088
|
|
|
|
|
|
|
Total current
liabilities
|
|
13,239,100
|
|
|
6,147,765
|
|
|
|
|
|
|
Deferred tax
liability
|
|
125,834
|
|
|
116,945
|
|
|
|
|
|
|
Total
liabilities
|
|
13,364,934
|
|
|
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
3,492,842 common
shares (August 31, 2021 –3,489,161)
|
|
824,039
|
|
|
823,171
|
Additional
paid-in capital
|
|
725,729
|
|
|
687,211
|
Retained
earnings
|
|
21,241,985
|
|
|
21,363,307
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
22,791,753
|
|
|
22,873,689
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
36,156,687
|
|
$
|
29,138,399
|
JEWETT-CAMERON TRADING COMPANY
LTD.
CONSOLIDATED STATEMENTS
OF OPERATIONS
(Expressed in U.S.
Dollars)
(Prepared by
Management)
(Unaudited)
|
|
|
|
Three
Month
Periods at
the
end of
February
|
|
Six
Month
Periods at
the
end of
February
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
|
SALES
|
$
|
14,060,751
|
$
|
10,460,355
|
|
$
|
26,978,475
|
$
|
20,776,639
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
10,636,524
|
|
7,848,779
|
|
|
21,089,386
|
|
15,202,164
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
3,424,227
|
|
2,611,576
|
|
|
5,889,089
|
|
5,574,475
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expenses
|
|
684,116
|
|
895,974
|
|
|
1,672,403
|
|
1,590,603
|
Depreciation and
amortization
|
|
84,071
|
|
55,290
|
|
|
153,709
|
|
105,818
|
Wages and
employee benefits
|
|
1,959,300
|
|
1,723,474
|
|
|
3,833,418
|
|
3,317,433
|
|
|
2,727,487
|
|
2,674,738
|
|
|
5,659,530
|
|
5,013,854
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
696,740
|
|
(63,162)
|
|
|
229,559
|
|
560,621
|
|
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
2,000
|
|
3,000
|
|
|
5,000
|
|
6,000
|
Interest
expense
|
|
(30,620)
|
|
-
|
|
|
(50,896)
|
|
-
|
Accrual
for legal claim
|
|
(300,000)
|
|
-
|
|
|
(300,000)
|
|
|
|
|
(328,620)
|
|
3,000
|
|
|
(345,896)
|
|
6,000
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
368,120
|
|
(60,162)
|
|
|
(116,337)
|
|
566,621
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
recovery
|
|
(98,300)
|
|
6,998
|
|
|
(4,985)
|
|
(131,258)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
269,820
|
$
|
(53,164)
|
|
$
|
(121,322)
|
$
|
435,363
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per common share
|
$
|
0.08
|
$
|
(0.02)
|
|
$
|
(0.03)
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per common share
|
$
|
0.08
|
$
|
(0.02)
|
|
$
|
(0.03)
|
$
|
0.12
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,492,842
|
|
3,486,495
|
|
|
3,491,969
|
|
3,483,814
|
Diluted
|
|
3,492,842
|
|
3,486,495
|
|
|
3,491,969
|
|
3,483,814
|
|
|
|
|
|
|
|
|
|
|
JEWETT-CAMERON TRADING COMPANY
LTD.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Expressed in U.S.
Dollars)
(Prepared by
Management)
(Unaudited)
|
|
|
Six Month
Period
at the end of
February,
|
|
2022
|
|
2021
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net (loss)
income
|
$
|
(121,322)
|
|
$
|
435,363
|
Items not involving an
outlay of cash:
|
|
|
|
|
|
Depreciation and
amortization
|
|
153,709
|
|
|
105,818
|
Stock-based
compensation expense
|
|
39,386
|
|
|
-
|
Deferred income
taxes
|
|
8,889
|
|
|
(84,080)
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
(Increase)
decrease in accounts receivable
|
|
(2,050,751)
|
|
|
1,184,865
|
(Increase) in
inventory
|
|
(4,238,783)
|
|
|
(837,400)
|
(Increase) in
prepaid expenses
|
|
(254,073)
|
|
|
(462,085)
|
Increase
(decrease) in accounts payable and
accrued
liabilities
|
|
591,335
|
|
|
(424,881)
|
(Increase) in
prepaid income taxes
|
|
(5,247)
|
|
|
(307,433)
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(5,876,857)
|
|
|
(389,833)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of
property, plant and equipment
|
|
(908,401)
|
|
|
(519,470)
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(908,401)
|
|
|
(519,470)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from
bank indebtedness
|
|
6,500,000
|
|
|
-
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
6,500,000
|
|
|
-
|
|
|
|
|
|
|
Net decrease in
cash
|
|
(285,258)
|
|
|
(909,303)
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
1,184,313
|
|
|
3,801,037
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
899,055
|
|
$
|
2,891,734
|
Contact: Chad Summers, President
& CEO, (503) 647-0110
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-2nd-quarter-financial-results-301526256.html
SOURCE Jewett-Cameron Trading Company Ltd.