NORTH PLAINS, Ore., July 15, 2024 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the third quarter and nine-month periods of fiscal 2024 ended May 31, 2024.
Sales for the third quarter of fiscal 2024 totaled approximately $15.9 million compared to sales of $18.9 million for the third quarter of fiscal 2023. Income from operations was $55,595 compared to $1,251,019 for the third quarter ended May 31, 2023. Net income after other items and income taxes for the current quarter was $154,862, or $0.04 per share, compared to net income of $734,951, or $0.21 per share, in the 3rd quarter of 2023.
For the nine months ended May 31, 2024, Jewett-Cameron reported sales of approximately $33.9 million compared to sales of $39.7 million for the nine months ended May 31, 2023. After a one-time gain from a favorable arbitration settlement, net income was $912,257, or $0.26 per share, compared to a net loss of ($310,847), or ($0.09) per share, for the first nine months of fiscal 2023.
"Economic factors and restrained consumer spending, particularly in the home improvement and pet categories, continue to challenge our sales and margins" said CEO Chad Summers. "In response, we are continuing to focus on our core products and increase our visibility and brand recognition with consumers. This includes the expansion of our successful in-store product placement campaign for several of our core fence products into more stores in the 4th quarter and into fiscal 2025".
As of May 31, 2024, the Company's cash position was approximately $1.05 million. Subsequent to the end of the 3rd quarter, we established a new asset-based line with Northrim Funding Services for short-term operating capital as needed. Although the interest rate on the new line is higher than we were previously paying, it does provide us with additional financial flexibility. We currently have no borrowing against this new line.
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 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.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
May 31,
2024
August 31,
2023
ASSETS
Current assets
Cash and cash equivalents
$
1,054,704
$
83,696
Accounts receivable, net of allowance of $0 (August 31, 2023 - $0)
7,408,344
5,634,924
Inventory, net of allowance of $90,536 (August 31, 2023 - $497,884)
13,470,934
18,339,048
Prepaid expenses
1,402,472
630,788
Total current assets
23,336,454
24,688,456
Property, plant and equipment, net
4,482,130
4,655,427
Intangible assets, net
112,431
134,845
Deferred tax assets
396,788
319,875
Total assets
$
28,327,803
$
29,798,603
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
787,563
$
2,181,194
Bank indebtedness
-
1,259,259
Income taxes payable
244,108
147,629
Accrued liabilities
2,254,484
2,113,194
Total liabilities
3,286,155
5,701,276
Stockholders' equity
Capital stock
Authorized
21,567,564 common shares, no par value
10,000,000 preferred shares, no par value
Issued
3,504,802 common shares (August 31, 2023 – 3,498,899)
826,861
825,468
Additional paid-in capital
795,726
765,055
Retained earnings
23,419,061
22,506,804
Total stockholders' equity
25,041,648
24,097,327
Total liabilities and stockholders' equity
$
28,327,803
$
29,798,603
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Month
Period Ended
May 31,
Nine Month
Period Ended
May 31,
2024
2023
2024
2023
SALES
$
15,896,017
$
18,945,738
$
33,931,050
$
39,666,658
COST OF SALES
12,944,941
14,532,366
26,959,377
30,473,044
GROSS PROFIT
2,951,076
4,413,372
6,971,673
9,193,614
OPERATING EXPENSES
Selling, general and administrative expenses
1,026,071
961,566
2,941,978
2,884,463
Depreciation and amortization
79,406
99,962
268,349
299,577
Wages and employee benefits
1,790,004
2,100,825
5,221,662
5,975,438
2,895,481
3,162,353
8,431,989
9,159,478
Income (loss) from operations
55,595
1,251,019
(1,460,316)
34,136
OTHER ITEMS
Other income
-
-
2,450,000
-
Gain on sale of assets
1,450
-
90,537
-
Interest (expense) income
(1,437)
(152,905)
11,527
(353,987)
13
(152,905)
2,552,064
(353,987)
Income (loss) before income taxes
55,608
1,098,114
1,091,748
(319,851)
Income tax expense (recovery)
(99,254)
363,163
179,491
(9,004)
Net income (loss)
$
154,862
$
734,951
$
912,257
$
(310,847)
Basic earnings (loss) per common share
$
0.04
$
0.21
$
0.26
$
(0.09)
Diluted earnings (loss) per common share
$
0.04
$
0.21
$
0.26
$
(0.09)
Weighted average number of common shares outstanding:
Basic
3,504,802
3,498,899
3,502,399
3,498,000
Diluted
3,504,802
3,498,899
3,502,399
3,498,000
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Nine Month
Period Ended
May 31,
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)
$
912,257
$
(310,847)
Items not involving an outlay of cash:
Depreciation and amortization
268,349
299,577
Stock-based compensation expense
32,064
23,303
Gain on sale of property, plant and equipment
(90,537)
-
Write-down of intangible assets
21,790
-
Deferred income tax expense
(76,913)
(366,566)
Changes in non-cash working capital items:
Increase in accounts receivable
(1,773,420)
(338,489)
Decrease in inventory
4,868,114
103,083
(Increase) decrease in prepaid expenses
(771,684)
242,427
Decrease in prepaid income taxes
-
208,963
(Decrease) increase in accounts payable and accrued liabilities
(1,252,341)
1,541,107
Increase in income taxes payable
96,479
147,215
Net cash provided by operating activities
2,234,158
1,549,773
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in intangible assets
-
(102,500)
Proceeds on sale of property, plant and equipment
106,649
Purchase of property, plant and equipment
(110,540)
(215,685)
Net cash used in investing activities
(3,891)
(318,185)
CASH FLOWS FROM FINANCING ACTIVITIES
(Repayment to) proceeds from bank indebtedness
(1,259,259)
1,000,000
Net cash (used in) provided by financing activities
(1,259,259)
1,000,000
Net increase in cash
971,008
2,231,588
Cash, beginning of period
83,696
484,463
Cash, end of period
$
1,054,704
$
2,716,051
Contact: Chad Summers, President & CEO, (503) 647-0110
