Jewett-Cameron Announces Fiscal 2023 Financial Results

News provided by

Jewett-Cameron Trading Company Ltd.

Nov 28, 2023, 17:30 ET

NORTH PLAINS, Ore., Nov. 28, 2023 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2023.

For the fiscal year ended August 31, 2023, Jewett-Cameron had sales of $54.3 million and a net loss of ($20,626), or ($0.01) per share, compared to sales of $62.9 million and net income of $1,164,123, or $0.33 per share, for fiscal 2022.

Sales for the fourth quarter of fiscal 2023 totaled $14,6 million compared to sales of $15.0 million in Q4 2022. Net income in the current fourth quarter was $290,221, or $0.08 per share, compared to a net loss of ($208,666), or ($0.06) per share, in the fourth quarter of fiscal 2022.

"Our results were hurt by the extended winter weather across the US which delayed, and then reduced, purchases of our outdoor lines" said CEO Chad Summers. "Inflationary pressures also negatively affected results as consumers reduced their discretionary spending, particularly on home improvement and pet products. During the year, we improved our operations and favorably adjusted key supply and logistic agreements. We are continuing the launch of our new MyEcoWorld® sustainable bag products as a less seasonal product line while firmly focusing on our strengths and core product lines."

The Company has successfully ended cleaning operations at its Jewett-Cameron Seed segment effective August 31, 2023. Full closure of the facility is expected to be completed by the end of calendar 2023.

As of August 31, 2023, the Company's cash position was approximately $84 thousand and had borrowed $1.26 million against its $10 million line of credit. Subsequent to the end of the fiscal year, the Company repaid the remaining balance borrowed against the line of credit.

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 and sustainable bag products, and wholesale distribution of wood products. 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; MyEcoWorld® for sustainable bag products; 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


2023

2022






ASSETS




Current assets




  Cash and cash equivalents

$

83,696

$

484,463

  Accounts receivable, net of allowance of $0 (August 31, 2022 - $0)

5,634,924

7,191,646

  Inventory, net of allowance of $497,884 (August 31, 2022 - $800,000)

18,339,048

20,632,313

  Prepaid expenses

630,788

1,112,575

  Prepaid income taxes

-

208,963






  Total current assets

24,688,456

29,629,960






Property, plant and equipment, net

4,655,427

4,828,420






Intangible assets, net

134,845

33,358






Deferred tax assets

319,875

24,998






Total assets

$

29,798,603

$

34,516,736






LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities










  Accounts payable

$

2,181,194

$

1,566,047

  Bank indebtedness

1,259,259

7,000,000

  Income taxes payable

147,629

-

  Accrued liabilities

2,113,194

1,856,039






Total liabilities

5,701,276

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

22,506,804

22,527,430






  Total stockholders' equity

24,097,327

24,094,650






  Total liabilities and stockholders' equity

$

29,798,603

$

34,516,736










JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31


2023

2022











SALES

$

54,289,303

$

62,901,831






COST OF SALES

42,042,178

49,108,772






GROSS PROFIT

12,247,125

13,793,059






OPERATING EXPENSES




Selling, general and administrative


3,973,055

4,008,166

Depreciation and amortization (notes 4, 5)

397,922

319,617

Wages and employee benefits

7,445,464

7,495,723








11,816,441

11,823,506






Income from operations

430,684

1,969,553






OTHER ITEMS




Gain on sale of property, plant and equipment

70,250

4,526

Other income (loss) (note 14)

-

(230,034)

Interest expense

(458,463)

(163,045)


(388,213)

(388,553)






Income before income taxes

42,471

1,581,000






Income taxes (note 6)




Current

(63,097)

(558,820)

Deferred recovery

-

141,943






Net (loss) income for the year

$

(20,626)

$

1,164,123






Basic (loss) earnings per common share

$

(0.01)

$

0.33






Diluted (loss) earnings per common share

$

(0.01)

$

0.33






Weighted average number of common shares outstanding:




Basic

3,498,236

3,493,807

Diluted

3,498,236

3,493,807

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31


 

2023

 

2022












CASH FLOWS FROM OPERATING ACTIVITIES




Net (loss) income for the year

$

(20,626)

$

1,164,123

Items not affecting cash:




Depreciation and amortization

397,922

319,617

Stock-based compensation expense

23,303

56,838

Gain on sale of property, plant and equipment

(70,250)

(4,526)

Deferred income taxes

(294,877)

(141,943)






Changes in non-cash working capital items:




Decrease (increase) in accounts receivable

1,556,722

(105,143)

Decrease (increase) in inventory

2,293,265

(6,240,948)

Decrease in prepaid expenses


481,787

1,193,245

Decrease in prepaid income taxes

208,963

43,995

Increase in accounts payable and accrued liabilities

872,302

274,321

Increase in income taxes payable

147,629

-






Net cash and cash equivalents provided by (used by) operating activities

5,596,140

(3,440,421)






CASH FLOWS FROM INVESTING ACTIVITIES




Increase in intangible assets

(102,500)

(3,535)

Proceeds on sale of property, plant and equipment

70,250

-

Purchase of property, plant and equipment

(223,916)

(1,255,894)






Net cash and cash equivalents used in investing activities

(256,166)

(1,259,429)






CASH FLOWS FROM FINANCING ACTIVITIES




(Repayment) proceeds from bank indebtedness

(5,740,741)

4,000,000






Net cash and cash equivalents provided by (used in) financing activities

(5,740,741)

4,000,000






Net (decrease) in cash and cash equivalents

(400,767)

(699,850)






Cash and cash equivalents, beginning of year

484,463

1,184,313






Cash and cash equivalents, end of year

$

83,696

$

484,463

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

SOURCE Jewett-Cameron Trading Company Ltd.

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