NORTH PLAINS, Ore., April 14, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. JCTCF today reported financial results for the second quarter and six month periods of fiscal 2022 ended February 28, 2022.
Sales for the second quarter of fiscal 2022 totaled $14.06 million compared to sales of $10.46 million for the second quarter of fiscal 2021. Income from operations was $696,740 compared to a loss of ($63,162) for the quarter ended February 28, 2021. Net income was $269,820, or $0.08 per share, compared to a net loss of ($53,164), or ($0.02) per share, in the year-ago quarter.
For the six months ended February 28, 2022, sales totaled $27.0 million compared to sales of $20.8 million for the six months ended February 28, 2021. Income from operations was $229,559 compared to income of $560,621 for the six months ending in February 28, 2021. Net loss was ($121,322), or ($0.03) per share, compared to net income of $435,363, or $0.12 per share, in the first six months of fiscal 2021
Net income in both the current quarter and six month periods was negatively affected by the accrual of $300,000 to settle a legal claim in California regarding the environmental labeling and marketing of the Company's dog waste bags.
"We are pleased with the sales increases for both the quarter and six months, which continues to reflect the strong demand for our products" said CEO Chad Summers. "We feel well positioned to navigate the rising raw material and shipping costs and continuing worldwide logistic disruptions. Entering the third quarter, we have more months of inventory on hand of our most strategically important products compared to prior years. Our decision to optimize our inventory on hand mitigates the risk of not having enough goods to fulfill expected orders during our traditionally busy Spring and Summer seasons."
As of February 28, 2022, the Company's cash position was approximately $0.9 million, and there was $9.5 million borrowed against its $10.0 million line of credit. Based on the timing of accounts receivable, the Company believes it will begin to repay the amounts borrowed on its line of credit in the third quarter, and 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®, 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. | |||||
February 28, 2022 | August 31, 2021 | ||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 899,055 | $ | 1,184,313 | |
Accounts receivable, net of allowance of $Nil (August 31, 2021 - $0) | 9,137,254 | 7,086,503 | |||
Inventory, net of allowance of $250,000 (August 31, 2021 - |
18,630,148 | 14,391,365 | |||
Prepaid expenses | 2,559,893 | 2,305,820 | |||
Prepaid income taxes | 258,205 | 252,958 | |||
Total current assets | 31,484,555 | 25,220,959 | |||
Property, plant and equipment, net | 4,638,238 | 3,886,543 | |||
Intangible assets, net | 33,894 | 30,897 | |||
Total assets | $ | 36,156,687 | $ | 29,138,399 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 1,660,664 | $ | 1,349,677 | |
Bank indebtedness | 9,500,000 | 3,000,000 | |||
Accrued liabilities | 2,078,436 | 1,798,088 | |||
Total current liabilities | 13,239,100 | 6,147,765 | |||
Deferred tax liability | 125,834 | 116,945 | |||
Total liabilities | 13,364,934 | 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 | 21,241,985 | 21,363,307 | |||
Total stockholders' equity | 22,791,753 | 22,873,689 | |||
Total liabilities and stockholders' equity | $ | 36,156,687 | $ | 29,138,399 | |
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) | |||||||||
Three Month Periods at the end of February | Six Month Periods at the end of February | ||||||||
2022 | 2021 | 2022 | 2021 | ||||||
SALES | $ | 14,060,751 | $ | 10,460,355 | $ | 26,978,475 | $ | 20,776,639 | |
COST OF SALES | 10,636,524 | 7,848,779 | 21,089,386 | 15,202,164 | |||||
GROSS PROFIT | 3,424,227 | 2,611,576 | 5,889,089 | 5,574,475 | |||||
OPERATING EXPENSES | |||||||||
Selling, general and administrative expenses | 684,116 | 895,974 | 1,672,403 | 1,590,603 | |||||
Depreciation and amortization | 84,071 | 55,290 | 153,709 | 105,818 | |||||
Wages and employee benefits | 1,959,300 | 1,723,474 | 3,833,418 | 3,317,433 | |||||
2,727,487 | 2,674,738 | 5,659,530 | 5,013,854 | ||||||
Income (loss) from operations | 696,740 | (63,162) | 229,559 | 560,621 | |||||
OTHER ITEMS | |||||||||
Other income | 2,000 | 3,000 | 5,000 | 6,000 | |||||
Interest expense | (30,620) | - | (50,896) | - | |||||
Accrual for legal claim | (300,000) | - | (300,000) | ||||||
(328,620) | 3,000 | (345,896) | 6,000 | ||||||
Income (loss) before income taxes | 368,120 | (60,162) | (116,337) | 566,621 | |||||
Income tax (expense) recovery | (98,300) | 6,998 | (4,985) | (131,258) | |||||
Net income (loss) | $ | 269,820 | $ | (53,164) | $ | (121,322) | $ | 435,363 | |
Basic earnings (loss) per common share | $ | 0.08 | $ | (0.02) | $ | (0.03) | $ | 0.12 | |
Diluted earnings (loss) per common share | $ | 0.08 | $ | (0.02) | $ | (0.03) | $ | 0.12 | |
Weighted average number of common | |||||||||
Basic | 3,492,842 | 3,486,495 | 3,491,969 | 3,483,814 | |||||
Diluted | 3,492,842 | 3,486,495 | 3,491,969 | 3,483,814 | |||||
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) | |||||
Six Month Period at the end of February, | |||||
2022 | 2021 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net (loss) income | $ | (121,322) | $ | 435,363 | |
Items not involving an outlay of cash: | |||||
Depreciation and amortization | 153,709 | 105,818 | |||
Stock-based compensation expense | 39,386 | - | |||
Deferred income taxes | 8,889 | (84,080) | |||
Changes in non-cash working capital items: | |||||
(Increase) decrease in accounts receivable | (2,050,751) | 1,184,865 | |||
(Increase) in inventory | (4,238,783) | (837,400) | |||
(Increase) in prepaid expenses | (254,073) | (462,085) | |||
Increase (decrease) in accounts payable and accrued liabilities | 591,335 |
(424,881) | |||
(Increase) in prepaid income taxes | (5,247) | (307,433) | |||
Net cash used in operating activities | (5,876,857) | (389,833) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of property, plant and equipment | (908,401) | (519,470) | |||
Net cash used in investing activities | (908,401) | (519,470) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Proceeds from bank indebtedness | 6,500,000 | - | |||
Net cash provided by financing activities | 6,500,000 | - | |||
Net decrease in cash | (285,258) | (909,303) | |||
Cash, beginning of period | 1,184,313 | 3,801,037 | |||
Cash, end of period | $ | 899,055 | $ | 2,891,734 | |
Contact: Chad Summers, President & CEO, (503) 647-0110
SOURCE Jewett-Cameron Trading Company Ltd.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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