Jewett-Cameron Announces Fiscal 2022 Financial Results

News provided by

Jewett-Cameron Trading Company Ltd.

Nov 29, 2022, 16:25 ET

NORTH PLAINS, Ore., Nov. 29, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2022.

For the fiscal year ended August 31, 2022, Jewett-Cameron had sales of $62.9 million and net income of $1,164,123, or $0.33 per share, compared to sales of $57.5 million and net income of $3,454,953, or $0.99 per share, for fiscal 2021.

Sales for the fourth quarter of fiscal 2022 totaled $15.0 million compared to sales of $15.1 million in Q4 2021. Net loss in the current fourth quarter was ($208,666), or ($0.06) per share, compared to net income of $605,114, or $0.18 per share, in the fourth quarter of fiscal 2021.

"Jewett-Cameron has weathered the unprecedented supply chain challenges well over the past year given the extraordinary circumstances. We sold more units year over year in multiple categories", said CEO Chad Summers. "Some products faced unique challenges that reduced their sales, but we have already met with customers to correct the issues going forward. We are excited to build upon our successes in the year ahead."

As of August 31, 2022, the Company's cash position was approximately $484 thousand and had borrowed $7 million against its $10 million line of credit. The Company expects to purchase less goods in the first two quarters of fiscal 2023 than it typically does as its current inventory position will be sufficient to carry the Company into its historically busy season in the final two quarters of the fiscal year.

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. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)
AS OF AUGUST 31



2022


2021







ASSETS






Current assets






  Cash and cash equivalents

$

484,463


$

1,184,313

  Accounts receivable, net of allowance of $0 (August 31, 2021 - $0)


7,191,646



7,086,503

  Inventory, net of allowance of $800,000 (August 31, 2021 - $250,000)


20,632,313



14,391,365

  Prepaid expenses


1,112,575



2,305,820

  Prepaid income taxes


208,963



252,958







  Total current assets


29,629,960



25,220,959







Property, plant and equipment, net


4,828,420



3,886,543







Intangible assets, net


33,358



30,897







Deferred tax assets


24,998



-







Total assets

$

34,516,736


$

29,138,399







LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities












  Accounts payable

$

1,566,047


$

1,349,677

  Bank indebtedness


7,000,000



3,000,000

  Accrued liabilities


1,856,039



1,798,088







  Total current liabilities


10,422,086



6,147,765







Deferred tax liability


-



116,945







Total liabilities


10,422,086



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

      3,495,342 common shares (August 31, 2021 –3,489,161)

824,629



823,171

  Additional paid-in capital


742,591



687,211

  Retained earnings


22,527,430



21,363,307







  Total stockholders' equity


24,094,650



22,873,689







  Total liabilities and stockholders' equity

$

34,516,736


$

29,138,399











JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
YEARS ENDED AUGUST 31



2022


2021












SALES

$

62,901,831


$

57,501,543







COST OF SALES


49,108,772



43,354,897







GROSS PROFIT


13,793,059



14,146,646







OPERATING EXPENSES






Selling, general and administrative


4,008,166



3,204,945

Depreciation and amortization


319,617



244,279

Wages and employee benefits


7,495,723



6,957,730









11,823,506



10,406,954







Income from operations


1,969,553



3,739,692







OTHER ITEMS






Gain on sale of property, plant and equipment


4,526



-

Other income (loss)


(230,034)



12,450

Interest expense


(163,045)



(15,321)

Gain on extinguishment of debt


-



687,387



(388,553)



684,516







Income before income taxes


1,581,000



4,424,208







Income taxes (note 6)






Current


(558,820)



(949,262)

Deferred recovery (expense)


141,943



(19,993)







Net income for the year

$

1,164,123


$

3,454,953







Basic earnings per common share

$

0.33


$

0.99







Diluted earnings per common share

$

0.33


$

0.99







Weighted average number of common shares outstanding:






Basic


3,493,807



3,486,537

Diluted


3,493,807



3,486,537

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
YEARS ENDED AUGUST 31


2022


2021













CASH FLOWS FROM OPERATING ACTIVITIES






Net income for the year

$

1,164,123


$

3,454,953

Items not affecting cash:






Depreciation and amortization


319,617



244,279

Stock-based compensation expense


56,838



70,391

(Gain) on sale of property, plant and equipment


(4,526)



-

Gain on extinguishment of debt


-



(680,707)

Deferred income taxes


(141,943)



19,993







Changes in non-cash working capital items:






 (Increase) in accounts receivable


(105,143)



(812,077)

 (Increase) in inventory


(6,240,948)



(5,193,219)

 Decrease (increase) in prepaid expenses


1,193,245



(1,269,692)

 Decrease (increase) in prepaid income taxes


43,995



(252,959)

Increase in accounts payable and accrued liabilities


274,321



36,404

 (Decrease) in income taxes payable


-



(40,596)







Net cash (used by) operating activities


(3,440,421)



(4,423,230)







CASH FLOWS FROM INVESTING ACTIVITIES






Increase in intangible assets


(3,535)



(30,755)

Purchase of property, plant and equipment


(1,255,894)



(1,162,739)







Net cash used in investing activities


(1,259,429)



(1,193,494)







CASH FLOWS FROM FINANCING ACTIVITIES






Proceeds from bank indebtedness


4,000,000



3,000,000







Net cash provided by financing activities


4,000,000



3,000,000







Net (decrease) in cash


(699,850)



(2,616,724)







Cash, beginning of year


1,184,313



3,801,037







Cash, end of year

$

484,463


$

1,184,313

Contact: Chad Summers, Chief Executive Officer, (503) 647-0110

SOURCE Jewett-Cameron Trading Company Ltd.