NORTH
PLAINS, Ore., Jan. 17,
2023 /PRNewswire/ -- Jewett-Cameron Trading Company
Ltd. (NASDAQ: JCTCF) today reported financial results for the first
quarter of fiscal 2023 ended November 30,
2022.
Sales for the first quarter of fiscal 2023 totaled $12.58 million compared to sales of $12.92 million for the first quarter of fiscal
2022. Net loss for the current quarter was ($73,760), or ($0.02) per share, compared to a net loss of
($391,141), or ($0.11) per share, in the year-ago quarter.
"We are working through the challenges stemming from the global
supply issues that occurred in calendar 2022 as reflected in our
improved gross margins during the quarter" said CEO Chad Summers. "Although our current inventory
position is higher than usual, it has us well positioned to meet
our customer's needs in the second and into the third quarter while
avoiding any potential shipping delays during Chinese New Year and
any unexpected disruptions from rising COVID rates within
China."
The Company has also entered into two important new sales
agreements. In fencing, we have signed a consignment sales
agreement with a major retailer for stores in several states that
positions Jewett-Cameron as their primary supplier. This
arrangement reduces our storage costs while improving our ability
to meet market demand. We have also inked a new distribution
agreement with SECOS Group of Australia to be the exclusive distributor of
their MyEcoWorld® sustainable bag products in the US and
Canada. SECOS is the supplier of
our existing Lucky Dog Poop Bags, and this new agreement expands
our line of sustainable products, including bin liners and other
pet products and provide consumers with more environmentally
friendly alternatives to hydrocarbon derived plastics. These
agreements are examples of our continuing efforts to expand our
product offerings that complement our traditional strengths.
As of November 30, 2022, the
Company's cash position was approximately $1.7 million, and there was $7.6 million borrowed against its $10.0 million line of credit. Based on the timing
of accounts receivable and the unused portion of the line of
credit, the Company believes it has sufficient working capital
available for the remainder of fiscal 2023.
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)
|
|
|
November
30,
2022
|
|
August
31,
2022
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,742,482
|
|
$
|
484,463
|
Accounts
receivable, net of allowance of $0 (August 31, 2022 -
$0)
|
|
5,237,397
|
|
|
7,191,646
|
Inventory, net
of allowance of $456,021 (August 31, 2022 - $800,000)
|
|
22,002,459
|
|
|
20,632,313
|
Prepaid
expenses
|
|
624,114
|
|
|
1,112,575
|
Prepaid income
taxes
|
|
208,551
|
|
|
208,963
|
|
|
|
|
|
|
Total current
assets
|
|
29,815,003
|
|
|
29,629,960
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
4,753,375
|
|
|
4,828,420
|
|
|
|
|
|
|
Intangible assets,
net
|
|
33,090
|
|
|
33,358
|
|
|
|
|
|
|
Deferred tax
assets
|
|
45,000
|
|
|
24,998
|
|
|
|
|
|
|
Total
assets
|
$
|
34,646,468
|
|
$
|
34,516,736
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,381,077
|
|
$
|
1,566,047
|
Bank
indebtedness
|
|
7,600,000
|
|
|
7,000,000
|
Accrued
liabilities
|
|
1,621,198
|
|
|
1,856,039
|
|
|
|
|
|
|
Total current
liabilities
|
|
10,602,275
|
|
|
10,422,086
|
|
|
|
|
|
|
Total
liabilities
|
|
10,602,275
|
|
|
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
3,498,899 common
shares (August 31, 2022 –3,495,342)
|
|
825,468
|
|
|
824,629
|
Additional
paid-in capital
|
|
765,055
|
|
|
742,591
|
Retained
earnings
|
|
22,453,670
|
|
|
22,527,430
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
24,044,193
|
|
|
24,094,650
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
34,646,468
|
|
$
|
34,516,736
|
JEWETT-CAMERON
TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS
OF OPERATIONS
(Expressed in U.S.
Dollars)
(Prepared by
Management)
(Unaudited)
|
|
|
Three
Months
Ended
November
30,
2022
|
|
Three
Months
Ended
November
30,
2021
|
|
|
|
|
|
|
SALES
|
$
|
12,577,500
|
|
$
|
12,917,724
|
|
|
|
|
|
|
COST OF
SALES
|
|
9,717,800
|
|
|
10,452,861
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
2,859,700
|
|
|
2,464,863
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
Selling, general
and administrative expenses
|
|
826,807
|
|
|
988,288
|
Depreciation and
amortization
|
|
111,536
|
|
|
69,638
|
Wages and
employee benefits
|
|
1,928,155
|
|
|
1,874,118
|
|
|
|
|
|
|
|
|
2,866,498
|
|
|
2,932,044
|
|
|
|
|
|
|
Loss from
operations
|
|
(6,798)
|
|
|
(467,181)
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
Other income
|
|
-
|
|
|
3,000
|
Interest
expense
|
|
(86,552)
|
|
|
(20,276)
|
|
|
|
|
|
|
Total other
items
|
|
(86,552)
|
|
|
(17,276)
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(93,350)
|
|
|
(484,457)
|
|
|
|
|
|
|
Income tax
recovery
|
|
19,590
|
|
|
93,316
|
|
|
|
|
|
|
Net
loss
|
$
|
(73,760)
|
|
$
|
(391,141)
|
|
|
|
|
|
|
Basic loss per
common share
|
$
|
(0.02)
|
|
$
|
(0.11)
|
|
|
|
|
|
|
Diluted loss per
common share
|
$
|
(0.02)
|
|
$
|
(0.11)
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
Basic
|
|
3,496,202
|
|
|
3,491,103
|
Diluted
|
|
3,496,202
|
|
|
3,491,103
|
JEWETT-CAMERON
TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS
OF CASH FLOWS
(Expressed in U.S.
Dollars)
(Prepared by
Management)
(Unaudited)
|
|
|
Three
Months
Ended
November
30,
2022
|
|
Three
Months
Ended
November
30,
2021
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
|
|
|
|
|
Net loss
|
$
|
(73,760)
|
|
$
|
(391,141)
|
Items not involving an
outlay of cash:
|
|
|
|
|
|
Depreciation and amortization
|
|
111,536
|
|
|
69,638
|
Stock-based compensation expense
|
|
23,303
|
|
|
39,386
|
Deferred income taxes
|
|
(20,002)
|
|
|
8,889
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
Decrease in accounts receivable
|
|
1,954,249
|
|
|
1,279,516
|
(Increase) in inventory
|
|
(1,370,146)
|
|
|
(2,832,562)
|
Decrease in prepaid expenses
|
|
488,461
|
|
|
38,479
|
(Decrease) increase in accounts payable and accrued
liabilities
|
|
(419,811)
|
|
|
531,507
|
Decrease (increase) in prepaid income taxes
|
|
412
|
|
|
(102,205)
|
|
|
|
|
|
|
Net cash provided by
(used by) operating activities
|
|
694,242
|
|
|
(1,358,493)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
(36,223)
|
|
|
(590,375)
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
(36,223)
|
|
|
(590,375)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Proceeds from bank indebtedness
|
|
600,000
|
|
|
2,000,000
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
600,000
|
|
|
2,000,000
|
|
|
|
|
|
|
Net increase in
cash
|
|
1,258,019
|
|
|
51,132
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
484,463
|
|
|
1,184,313
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
1,742,482
|
|
$
|
1,235,445
|
Contact: Chad Summers, President
& CEO, (503) 647-0110
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-1st-quarter-financial-results-301723990.html
SOURCE Jewett-Cameron Trading Company Ltd.