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
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-fiscal-2022-financial-results-301689477.html
SOURCE Jewett-Cameron Trading Company Ltd.