Jewett-Cameron Announces Fiscal 2020 Financial Results

News provided by

Jewett-Cameron Trading Company Ltd.

Nov 12, 2020, 16:20 ET

NORTH PLAINS, Ore., Nov. 12, 2020 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2020.

For the fiscal year ended August 31, 2020, Jewett-Cameron had sales of $44.9 million and net income of $2,784,525, or $0.77 per share, compared to sales of $45.4 million and net income of $2,100,452, or $0.50 per share, for fiscal 2019.

Sales for the fourth quarter of fiscal 2020 totaled $14.0 million compared to sales of $11.8 million in Q4 2019. Net income was $1,568,436, or $0.43 per share, compared to net income of $532,918, or $0.13 per share, in the fourth quarter of fiscal 2019.

"2020 has been a year to further invest in our core businesses by adding to our facilities, staff, products and brand awareness," said CEO Charlie Hopewell. "However, the COVID-19 pandemic presented tremendous challenges beginning in January. Due to our strict safety protocols, we have had no cases of COVID-19 among our personnel and we have been able to operate effectively throughout calendar 2020 to date. This allowed us to meet the increased demand for certain of our products during the second half of fiscal 2020, particularly in our DIY and pet lines."

As of August 31, 2020, the Company's cash position was $3.8 million, and currently there is no borrowing against its $3.0 million line of credit. During fiscal 2020, the Company privately repurchased for cancelation a total of 490,120 common shares from two large shareholders, including an officer and director of the Company, at a price of $7.89 per share.  The total cost of the share repurchases was $3,867,046.

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, 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 Gardner, 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. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

AS OF AUGUST 31



2020


2019







ASSETS












Current assets






  Cash and cash equivalents

$

3,801,037


$

9,652,310

  Accounts receivable, net of allowance  
     of $Nil (August 31, 2019 - $Nil)


6,274,426



2,835,952

  Inventory, net of allowance
      of $65,000 (August 31, 2019 - $119,357)


9,198,146



6,377,805

  Note receivable


-



1,197

  Prepaid expenses


1,036,128



393,539

  Prepaid income taxes


-



223,420







  Total current assets


20,309,737



19,484,223







Property, plant and equipment, net


2,967,565



2,727,406







Intangible assets, net


659



3,048







Total assets

$

23,277,961


$

22,214,677







LIABILITIES AND STOCKHOLDERS' EQUITY












Current liabilities












  Accounts payable

$

1,095,061


$

410,027

  Current portion of notes payable


342,326



-

  Income taxes payable


40,596



-

  Accrued liabilities


2,016,300



1,312,580







  Total current liabilities


3,494,283



1,722,607







Long-term liabilities






Notes payable


338,381



-







Deferred tax liability


96,952



61,204







Total liabilities


3,929,616



1,783,811







Stockholders' equity






  Capital stock






    Authorized






      21,567,564 common shares, without par value






      10,000,000 preferred shares, without par value






    Issued






      3,481,162 common shares (August 31, 2019 – 3,971,282)


821,284



936,903

  Additional paid-in capital


618,707



618,707

  Retained earnings


17,908,354



18,875,256







  Total stockholders' equity


19,348,345



20,430,866







  Total liabilities and stockholders' equity

$

23,277,961


$

22,214,677

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31



2020


2019













SALES

$

44,945,263


$

45,446,362







COST OF SALES


32,472,080



35,481,931







GROSS PROFIT


12,473,183



9,964,431







OPERATING EXPENSES






Selling, general and administrative


2,502,989



2,127,296

Depreciation and amortization


217,712



191,819

Wages and employee benefits


5,894,346



4,907,766









8,615,047



7,226,881













Income from operations


3,858,136



2,737,550







OTHER ITEMS






       Gain on sale of property, plant and equipment


6,600



105,366

Interest and other income


24,420



45,228



31,020



150,594







Income before income taxes


3,889,156



2,888,144







Income taxes






Current


1,068,883



808,341

Deferred (recovery)


35,748



(20,649)







Net income for the year

$

2,784,525


$

2,100,452







Basic earnings per common share

$

0.77


$

0.50







Diluted earnings per common share

$

0.77


$

0.50







Weighted average number of common shares outstanding:






Basic


3,623,413



4,233,304

Diluted


3,623,413



4,233,304

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31



2020


2019













CASH FLOWS FROM OPERATING ACTIVITIES






Net income for the year

$

2,784,525


$

2,100,452

Items not affecting cash:






Depreciation and amortization


217,712



191,819

(Gain) on sale of property, plant and equipment


(6,600)



(105,366)

Deferred income taxes


35,748



(20,649)







Changes in non-cash working capital items:






(Increase) decrease in accounts receivable


(3,438,474)



1,316,540

Decrease in note receivable


1,197



2,803

(Increase) decrease in inventory


(2,820,341)



3,425,392

(Increase) in prepaid expenses


(642,589)



(46,288)

Decrease (increase) in prepaid income taxes


223,420



(109,110)

Increase (decrease) in accounts payable and accrued liabilities


1,388,754



(449,692)

Increase in income taxes payable


40,596



-







Net cash (used by) provided by operating activities


(2,216,052)



6,305,901







CASH FLOWS FROM INVESTING ACTIVITIES






Proceeds on sale of property, plant and equipment


400



324,675

Purchase of property, plant and equipment


(449,282)



(32,732)







Net cash (used in) provided by investing activities


(448,882)



291,943







CASH FLOWS FROM FINANCING ACTIVITIES






Increase in notes payable


680,707



-

Issuance of common stock


-



18,444

Redemption of common stock


(3,867,046)



(3,061,441)







Net cash used in financing activities


(3,186,339)



(3,042,997)







Net (decrease) increase in cash


(5,851,273)



3,554,847







Cash, beginning of year


9,652,310



6,097,463







Cash, end of year

$

3,801,037


$

9,652,310

Contact: Charlie Hopewell, President & CEO, (503) 647-0110

SOURCE Jewett-Cameron Trading Company Ltd.