NORTH
PLAINS, Ore., July 14,
2022 /PRNewswire/ -- Jewett-Cameron Trading Company
Ltd. (NASDAQ: JCTCF) today reported financial results for the third
quarter and nine-month periods of fiscal 2022 ended May 31, 2022.
Sales for the third quarter of fiscal 2022 totaled approximately
$20.9 million compared to sales of
$21.6 million for the third quarter
of fiscal 2021. Income from operations was $2,019,644 compared to $2,638,011 for the third quarter ended
May 31, 2021. Net income after other
items and income taxes for the current quarter was $1,494,111, or $0.43 per share, compared to net income of
$2,414,477, or $0.69 per share, in the same quarter of 2021.
For the nine months ended May 31,
2022, Jewett-Cameron reported sales of $47.9 million compared to sales of $42.4 million for the nine months ended
May 31, 2021. Net income was
$1,372,789, or $0.39 per share, compared to net income of
$2,849,839, or $0.82 per share, for the first nine months of
fiscal 2021.
Net income for both the three and nine-month periods ended
May 31, 2021 were positively affected
by a one-time gain of $687,387
related to the forgiveness of the Company's PPP loans.
"Our decision to build our most important inventory at the
beginning of our busy Spring and Summer season worked well," said
CEO Chad Summers. "It reduced some
product costs and helped insulate us against the continuing supply
chain disruptions from China. We
were able to provide high product availability and on-time
fulfillment rates for our customers. We remain well positioned with
our inventory on hand entering the 4th quarter."
As of May 31, 2022, the Company's
cash position was approximately $2.1
million, and there was $9.0
million borrowed against its $10.0
million line of credit. Subsequent to the end of the period,
the Company repaid an additional $1.0
million, and as product is sold and accounts receivable are
collected, we expect to continue to repay the amount drawn against
the line.
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,
2022
|
|
August
31,
2021
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,130,450
|
|
$
|
1,184,313
|
Accounts
receivable, net of allowance of $Nil (August 31, 2021 -
$0)
|
|
8,271,856
|
|
|
7,086,503
|
Inventory, net
of allowance of $250,000 (August 31, 2021 - $250,000)
|
|
19,898,803
|
|
|
14,391,365
|
Prepaid
expenses
|
|
2,257,576
|
|
|
2,305,820
|
Prepaid income
taxes
|
|
3,876
|
|
|
252,958
|
|
|
|
|
|
|
Total current
assets
|
|
32,562,561
|
|
|
25,220,959
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
4,661,706
|
|
|
3,886,543
|
|
|
|
|
|
|
Intangible assets,
net
|
|
30,092
|
|
|
30,897
|
|
|
|
|
|
|
Total
assets
|
$
|
37,254,359
|
|
$
|
29,138,399
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,794,717
|
|
$
|
1,349,677
|
Bank
indebtedness
|
|
9,000,000
|
|
|
3,000,000
|
Accrued
liabilities
|
|
2,045,281
|
|
|
1,798,088
|
|
|
|
|
|
|
Total current
liabilities
|
|
12,839,998
|
|
|
6,147,765
|
|
|
|
|
|
|
Deferred tax
liability
|
|
128,497
|
|
|
116,945
|
|
|
|
|
|
|
Total
liabilities
|
|
12,968,495
|
|
|
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
|
|
22,736,096
|
|
|
21,363,307
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
24,285,864
|
|
|
22,873,689
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
37,254,359
|
|
$
|
29,138,399
|
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,
|
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
|
SALES
|
$
|
20,922,190
|
$
|
21,619,952
|
|
$
|
47,900,665
|
$
|
42,396,591
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
15,569,380
|
|
16,037,702
|
|
|
36,658,766
|
|
31,239,866
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
5,352,810
|
|
5,582,250
|
|
|
11,241,899
|
|
11,156,725
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
Selling, general
and administrative expenses
|
|
1,125,692
|
|
966,298
|
|
|
2,798,094
|
|
2,556,902
|
Depreciation and
amortization
|
|
83,291
|
|
69,353
|
|
|
237,001
|
|
175,171
|
Wages and
employee benefits
|
|
2,124,183
|
|
1,908,588
|
|
|
5,957,601
|
|
5,226,021
|
|
|
|
|
|
|
|
|
|
|
|
|
3,333,166
|
|
2,944,239
|
|
|
8,992,696
|
|
7,958,094
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
2,019,644
|
|
2,638,011
|
|
|
2,249,203
|
|
3,198,631
|
|
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
903
|
|
3,000
|
|
|
(294,097)
|
|
9,000
|
Interest
expense
|
|
(47,972)
|
|
(9,283)
|
|
|
(98,868)
|
|
(9,283)
|
Gain on
extinguishment of debt
|
|
-
|
|
687,387
|
|
|
-
|
|
687,387
|
|
|
(47,069)
|
|
681,104
|
|
|
(392,965)
|
|
687,104
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
1,972,575
|
|
3,319,115
|
|
|
1,856,238
|
|
3,885,735
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(478,464)
|
|
(904,638)
|
|
|
(483,449)
|
|
(1,035,896)
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
1,494,111
|
$
|
2,414,477
|
|
$
|
1,372,789
|
$
|
2,849,839
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.43
|
$
|
0.69
|
|
$
|
0.39
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
0.43
|
$
|
0.69
|
|
$
|
0.39
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,492,842
|
|
3,489,161
|
|
|
3,492,266
|
|
3,485,525
|
Diluted
|
|
3,492,842
|
|
3,489,161
|
|
|
3,492,266
|
|
3,485,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income
|
$
|
1,372,789
|
|
$
|
2,849,839
|
Items not involving an
outlay of cash:
|
|
|
|
|
|
Depreciation and
amortization
|
|
237,001
|
|
|
175,171
|
Stock-based
compensation expense
|
|
39,386
|
|
|
70,391
|
Gain on
extinguishment of debt
|
|
-
|
|
|
(680,707)
|
Deferred income
tax expense
|
|
11,552
|
|
|
(57,768)
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
(Increase) in
accounts receivable
|
|
(1,185,353)
|
|
|
(4,776,635)
|
(Increase)
decrease in inventory
|
|
(5,507,438)
|
|
|
1,430,506
|
Decrease
(increase) in prepaid expenses
|
|
48,244
|
|
|
(1,544,728)
|
Decrease in
prepaid income taxes
|
|
249,082
|
|
|
-
|
Increase in
accounts payable and accrued liabilities
|
|
692,233
|
|
|
736,595
|
Increase in
income taxes payable
|
|
-
|
|
|
189,594
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
(4,042,504)
|
|
|
(1,607,742)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of
property, plant and equipment
|
|
(1,011,359)
|
|
|
(1,019,259)
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
(1,011,359)
|
|
|
(1,019,259)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from
bank indebtedness
|
|
6,000,000
|
|
|
996,010
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
6,000,000
|
|
|
996,010
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
946,137
|
|
|
(1,630,991)
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
1,184,313
|
|
|
3,801,037
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
2,130,450
|
|
$
|
2,170,046
|
|
|
|
|
|
|
|
Contact: Chad Summers, President
& CEO, (503) 647-0110
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-3rd-quarter-financial-results-301587140.html
SOURCE Jewett-Cameron Trading Company Ltd.