Jewett-Cameron Announces 1st Quarter Financial Results

NORTH PLAINS, Ore., Jan. 14, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. JCTCF today reported financial results for the first quarter of fiscal 2022 ended November 30, 2021.

Sales for the first quarter of fiscal 2022 totaled $12.9 million compared to sales of $10.3 million for the first quarter of fiscal 2021. Net loss for the current quarter was ($391,141), or ($0.11) per share, compared to net income of $488,527, or $0.14 per share, in the year-ago quarter.

"Our sales quarter over quarter increased by 25%, reflecting the continued strong demand for our products, but higher costs for raw materials and global logistical issues significantly reduced our margins," said CEO Chad Summers. "In response, we have now successfully increased our selling prices with our customers, but these inflationary pressures will remain an issue affecting our margins throughout fiscal 2022."

As of November 30, 2021, the Company's cash position was approximately $1.2 million, and there was $5.0 million borrowed against its $10.0 million line of credit. Based on the timing of accounts receivable and the unused portion of the line of credit, the Company believes it has sufficient working capital available for the remainder of fiscal 2022.

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®, 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.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

 



November 30,2021



August 31,2021













ASSETS











Current assets











  Cash and cash equivalents

$

1,235,445



$

1,184,313

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



5,806,987





7,086,503

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



17,223,927





14,391,365

  Prepaid expenses



2,267,341





2,305,820

  Prepaid income taxes



355,163





252,958













  Total current assets



26,888,863





25,220,959













Property, plant and equipment, net



4,407,548





3,886,543













Intangible assets, net



30,629





30,897













Total assets

$

31,327,040



$

29,138,399













LIABILITIES AND STOCKHOLDERS' EQUITY











Current liabilities























  Accounts payable

$

2,084,438



$

1,349,677

  Bank indebtedness



5,000,000





3,000,000

  Accrued liabilities



1,594,834





1,798,088













  Total current liabilities



8,679,272





6,147,765













Deferred tax liability



125,834





116,945













Total liabilities



8,805,106





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

      3,492,842 common shares (August 31, 2021 –3,489,161)



824,039





823,171

  Additional paid-in capital



725,729





687,211

  Retained earnings



20,972,166





21,363,307













  Total stockholders' equity



22,521,934





22,873,689













  Total liabilities and stockholders' equity

$

31,327,040



$

29,138,399

 

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

 



Three Months

Ended

November 30,

2021



Three Months

Ended

November 30,

2020













SALES

$

12,917,724



$

10,316,284













COST OF SALES



10,452,861





7,353,385













GROSS PROFIT



2,464,863





2,962,899













OPERATING EXPENSES











  Selling, general and administrative expenses



988,288





694,628

  Depreciation and amortization



69,638





50,529

  Wages and employee benefits



1,874,118





1,593,959

















2,932,044





2,339,116













(Loss) income from operations



(467,181)





623,783













OTHER ITEMS











Other income



3,000





3,000

Interest expense



(20,276)





-













Total other items



(17,276)





3,000













(Loss) income before income taxes



(484,457)





626,783













Income tax recovery (expense)



93,316





(138,256)













Net (loss) income

$

(391,141)



$

488,527













Basic (loss) earnings per common share

$

(0.11)



$

0.14













Diluted (loss) earnings per common share

$

(0.11)



$

0.14













Weighted average number of common shares outstanding:











  Basic



3,491,103





3,481,162

  Diluted



3,491,103





3,481,162

 

 

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

 



Three Months

Ended

November 30,

2021



Three Months

Ended

November 30,

2020













CASH FLOWS FROM OPERATING ACTIVITIES











Net (loss) income

$

(391,141)



$

488,527

Items not involving an outlay of cash:











    Depreciation and amortization



69,638





50,529

    Stock-based compensation expense



39,386





-

    Deferred income taxes



8,889





(40,784)













Changes in non-cash working capital items:











    Decrease in accounts receivable



1,279,516





2,027,469

    (Increase) in inventory



(2,832,562)





(223,013)

    Decrease in prepaid expenses



38,479





196,255

    Increase (decrease) in accounts payable and accrued liabilities



531,507





(454,861)

    (Increase) in prepaid income taxes



(102,205)





-

    Increase in income taxes payable



-





179,040













Net cash (used by) provided by operating activities



(1,358,493)





2,223,162













CASH FLOWS FROM INVESTING ACTIVITIES











    Purchase of property, plant and equipment



(590,375)





(184,247)













Net cash used in investing activities



(590,375)





(184,247)













CASH FLOWS FROM FINANCING ACTIVITIES











    Proceeds from bank indebtedness



2,000,000





-













Net cash provided by financing activities



2,000,000





-













Net increase in cash



51,132





2,038,915













Cash, beginning of period



1,184,313





3,801,037













Cash, end of period

$

1,235,445



$

5,839,952

Contact: Chad Summers, President & CEO, (503) 647-0110

 

Cision View original content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-1st-quarter-financial-results-301461465.html

SOURCE Jewett-Cameron Trading Company Ltd.

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