Jewett-Cameron Announces 2nd Quarter Financial Results
NORTH PLAINS, Ore., April 14, 2021 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2021 ended February 28, 2021.
Sales for the second quarter of fiscal 2021 totaled $10.46 million compared to sales of $7.62 million for the second quarter of fiscal 2020. Loss from operations was ($63,162) compared to a loss of ($163,020) for the quarter ended February 29, 2020. Net loss was ($53,164), or ($0.02) per share, compared to a net loss of ($174,262), or ($0.05) per share, in the year-ago quarter.
For the six months ended February 28, 2021, sales totaled $20.8 million compared to sales of $14.7 million for the six months ended February 29, 2020. Income from operations was $560,621 compared to income of $536,634 for the six months ending in February 29, 2020. Net income was $435,363, or $0.12 per share, compared to net loss of ($180,884), or ($0.05) per share, in the first six months of fiscal 2020.
"Our increased sales in the current six months reflect the success of our ongoing corporate strategy to expand our sales channels and introduce new products," said CEO Charlie Hopewell. "We remain committed to this strategy. However, COVID-19 issues continue to cause uncertainly for the remainder of fiscal 2021. The pandemic has also caused a shortage of shipping containers and seaborne shipping space. This is now causing some delivery delays of our China manufactured products and is increasing our shipping costs, which may continue through the remainder of fiscal 2021".
As of February 28, 2021, the Company's cash position was approximately $2.89 million, and there was no borrowing against its $3.0 million line of credit. The Company has historically utilized its cash position by implementing share repurchase programs as an effective method of enhancing shareholder value.
Jewett-Cameron Trading Company is a holding company that, through its subsidiaries (Jewett-Cameron Companies), operate out of facilities located in North Plains, Oregon. Those businesses consist of the manufacturing and distribution of patented and patent pending specialty metal products, wholesale distribution of wood products, seed processing and sales, and sales of industrial tools and clamps. The Company's brands include Lucky Dog, Animal House and AKC licensed products in the expanding pet market; fencing products under the Adjust-A-Gates, Fit-Right, Perimeter Patrol, and INFINITY Euro fence systems brands; Early Start, Spring Gardener, and Weatherguard for greenhouses; and TrueShade for patio umbrellas, furniture covers and canopies. 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, | August 31, | |||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 2,891,734 | $ | 3,801,037 | ||
Accounts receivable, net of allowance of $Nil (August 31, 2020 - $Nil) | 5,089,561 | 6,274,426 | ||||
Inventory, net of allowance of $250,000 (August 31, 2020 - $65,000) | 10,035,546 | 9,198,146 | ||||
Prepaid expenses | 1,498,213 | 1,036,128 | ||||
Prepaid income taxes | 307,433 | - | ||||
Total current assets | 19,822,487 | 20,309,737 | ||||
Property, plant and equipment, net | 3,411,132 | 2,967,565 | ||||
Intangible assets, net | 539 | 659 | ||||
Total assets | $ | 23,234,158 | $ | 23,277,961 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities | ||||||
Accounts payable | $ | 756,881 | $ | 1,095,061 | ||
Current portion of notes payable | 529,439 | 342,326 | ||||
Income taxes payable | - | 40,596 | ||||
Accrued liabilities | 1,929,599 | 2,016,300 | ||||
Total current liabilities | 3,215,919 | 3,494,283 | ||||
Long-term liabilities | ||||||
Notes payable | 151,268 | 338,381 | ||||
Deferred tax liability | 12,872 | 96,952 | ||||
Total liabilities | 3,380,059 | 3,929,616 | ||||
Stockholders' equity | ||||||
Capital stock | ||||||
Authorized | ||||||
21,567,564 common shares, without par value | ||||||
10,000,000 preferred shares, without par value | ||||||
Issued | ||||||
3,489,161 common shares (August 31, 2020 – 3,481,162) | 823,171 | 821,284 | ||||
Additional paid-in capital | 618,707 | 618,707 | ||||
Retained earnings | 18,412,221 | 17,908,354 | ||||
Total stockholders' equity | 19,854,099 | 19,348,345 | ||||
Total liabilities and stockholders' equity | $ | 23,234,158 | $ | 23,277,961 | ||
JEWETT-CAMERON TRADING COMPANY LTD. | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(Expressed in U.S. Dollars) | |||||||||
(Prepared by Management) | |||||||||
(Unaudited) | |||||||||
Three Month | Six Month | ||||||||
2021 | 2020 | 2021 | 2020 | ||||||
SALES | $ | 10,460,355 | $ | 7,621,927 | $ | 20,776,639 | $ | 14,677,105 | |
COST OF SALES | 7,848,779 | 5,616,672 | 15,202,164 | 10,623,507 | |||||
GROSS PROFIT | 2,611,576 | 2,005,255 | 5,574,475 | 4,053,598 | |||||
OPERATING EXPENSES | |||||||||
Selling, general and administrative expenses | 895,974 | 763,910 | 1,590,603 | 1,412,920 | |||||
Depreciation and amortization | 55,290 | 58,063 | 105,818 | 106,211 | |||||
Wages and employee benefits | 1,723,474 | 1,346,302 | 3,317,433 | 2,708,361 | |||||
2,674,738 | 2,168,275 | 5,013,854 | 4,227,492 | ||||||
(Loss) income from operations | (63,162) | (163,020) | 560,621 | (173,894) | |||||
OTHER ITEMS | |||||||||
Gain on sale of property, plant and equipment | - | 400 | - | 400 | |||||
Interest and other income | 3,000 | 6,584 | 6,000 | 18,198 | |||||
3,000 | 6,984 | 6,000 | 18,598 | ||||||
(Loss) income before income taxes | (60,162) | (156,036) | 566,621 | (155,296) | |||||
Income tax recovery (expense) | 6,998 | (18,226) | (131,258) | (25,588) | |||||
Net (loss) income | $ | (53,164) | (174,262) | $ | 435,363 | $ | (180,884) | ||
Basic (loss) earnings per common share | $ | (0.02) | (0.05) | $ | 0.12 | $ | (0.05) | ||
Diluted (loss) earnings per common share | $ | (0.02) | (0.05) | $ | 0.12 | $ | (0.05) | ||
Weighted average number of common shares outstanding: | |||||||||
Basic | 3,486,495 | 3,562,630 | 3,483,814 | 3,811,956 | |||||
Diluted | 3,486,495 | 3,562,630 | 3,483,814 | 3,811,956 | |||||
JEWETT-CAMERON TRADING COMPANY LTD. | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
(Expressed in U.S. Dollars) | |||||
(Prepared by Management) | |||||
(Unaudited) | |||||
Six Month Period | |||||
2021 | 2020 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income (loss) | $ | 435,363 | $ | (180,884) | |
Items not involving an outlay of cash: | |||||
Depreciation and amortization | 105,818 | 106,211 | |||
(Gain) on sale of property, plant and equipment | - | (400) | |||
Deferred income taxes | (84,080) | 24,592 | |||
Changes in non-cash working capital items: | |||||
Decrease in accounts receivable | 1,184,865 | 135,288 | |||
(Increase) in inventory | (837,400) | (870,743) | |||
Decrease in note receivable | - | 300 | |||
(Increase) in prepaid expenses | (462,085) | (474,253) | |||
(Increase) in prepaid income taxes | (307,433) | (146,582) | |||
(Decrease) in accounts payable and accrued liabilities | (424,881) | (351,259) | |||
Net cash used in operating activities | (389,833) | (1,757,730) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of property, plant and equipment | (519,470) | (152,403) | |||
Proceeds from sale of property, plant and equipment | - | 400 | |||
Net cash used in investing activities | (519,470) | (152,003) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Redemption of common stock | - | (3,867,046) | |||
Net cash used in financing activities | - | (3,867,046) | |||
Net decrease in cash | (909,303) | (5,776,779) | |||
Cash, beginning of period | 3,801,037 | 9,652,310 | |||
Cash, end of period | $ | 2,891,734 | $ | 3,875,531 | |
Contact: Charlie Hopewell, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
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