NORTH PLAINS, Ore.,
July 15, 2020 /PRNewswire/
-- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today
reported financial results for the third quarter and nine month
periods of fiscal 2020 ended May 31,
2020.
Sales for the third quarter of fiscal 2020 totaled approximately
$16.2 million compared to sales of
$16.7 million for the third quarter
of fiscal 2019. Income from operations was $1,913,582 compared to $1,506,638 for the third quarter ended
May 31, 2019. Net income after other
items and income taxes for the current quarter was $1,396,973, or $0.40 per share, compared to $1,098,210, or
$0.27 per share, in the same quarter
of 2019.
For the nine months ended May 31,
2020, Jewett-Cameron reported sales of $30.9 million compared to sales of $33.6 million for the nine months ended
May 31, 2019. Net income was
$1,216,089, or $0.33 per share, compared to net income of
$1,567,534, or $0.36 per share, in the first nine months of
fiscal 2019.
"The Company has been navigating the COVID-19 pandemic well to
date, with our DIY and Pet Products performing solidly," said CEO
Charlie Hopewell. "We are
maintaining strict safety protocols across all our operations, and
have no cases of COVID among any of our personnel. The pandemic has
not changed our plans to introduce new products and continue our
efforts to widen our offerings through both existing and new sales
channels".
As of May 31, 2020, the Company's
cash position was approximately $3.2
million, and there was no borrowing against its $3.0 million line of credit.
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 specialty metal products and wholesale distribution
of wood products to home centers and other retailers located
primarily in the United States.
Greenwood Products is a processor and distributor of industrial
wood and other specialty building products principally to customers
in the marine and transportation industries in the United States. MSI-PRO is an importer and
distributor of pneumatic air tools, industrial clamps, and the
Avenger Products line of sawblades and other products.
Jewett-Cameron Seed Company is a processor and distributor of
agricultural seeds. JC USA
provides professional and administrative services, including
accounting and credit services, to its subsidiary companies.
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,
2020
|
|
|
August 31,
2019
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
3,269,289
|
|
$
|
9,652,310
|
|
Accounts
receivable, net of allowance of
$Nil (August 31, 2019 - $Nil)
|
|
6,880,459
|
|
|
2,835,952
|
|
Inventory, net
of allowance of $32,538 (August
31, 2019 - $119,357)
|
|
6,786,087
|
|
|
6,377,805
|
|
Notes
receivable
|
|
563,010
|
|
|
1,197
|
|
Prepaid
expenses
|
|
1,336,080
|
|
|
393,539
|
|
Prepaid income
taxes
|
|
121,734
|
|
|
223,420
|
|
|
|
|
|
|
|
Total current
assets
|
|
18,956,659
|
|
|
19,484,223
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
2,774,912
|
|
|
2,727,406
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
719
|
|
|
3,048
|
|
|
|
|
|
|
|
Total
assets
|
$
|
21,732,290
|
|
$
|
22,214,677
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
1,520,610
|
|
$
|
410,027
|
|
Current portion
of notes payable
|
|
302,536
|
|
|
-
|
|
Accrued
liabilities
|
|
1,650,289
|
|
|
1,312,580
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
3,473,435
|
|
|
1,722,607
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
378,171
|
|
|
|
|
|
|
|
|
|
|
Deferred tax
liability
|
|
100,775
|
|
|
61,204
|
|
|
|
|
|
|
|
Total
liabilities
|
|
3,952,381
|
|
|
1,783,811
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
Capital
stock
|
|
|
|
|
|
|
Authorized
|
|
|
|
|
|
|
21,567,564 common
shares, without par value
|
|
|
|
|
|
|
10,000,000 preferred
shares, without par value
|
|
|
|
|
|
|
Issued
|
|
|
|
|
|
|
3,481,162
common shares (August 31, 2019 – 3,971,282)
|
|
821,284
|
|
|
936,903
|
|
Additional
paid-in capital
|
|
618,707
|
|
|
618,707
|
|
Retained
earnings
|
|
16,339,918
|
|
|
18,875,256
|
|
|
|
|
|
|
|
Total
stockholders' equity
|
|
17,779,909
|
|
|
20,430,866
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
21,732,290
|
|
$
|
22,214,677
|
|
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,
|
|
2020
|
2019
|
|
2020
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
$
|
16,241,239
|
$
|
16,692,241
|
|
$
|
30,918,345
|
$
|
33,615,516
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
SALES
|
|
11,931,746
|
|
13,054,487
|
|
|
22,555,253
|
|
25,907,388
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
4,309,493
|
|
3,637,754
|
|
|
8,363,092
|
|
7,708,128
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expenses
|
|
706,079
|
|
759,708
|
|
|
2,118,999
|
|
1,721,743
|
|
Depreciation
and amortization
|
|
54,781
|
|
47,141
|
|
|
160,992
|
|
143,413
|
|
Wages and
employee benefits
|
|
1,635,051
|
|
1,324,267
|
|
|
4,343,412
|
|
3,799,700
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,395,911)
|
|
(2,131,116)
|
|
|
(6,623,403)
|
|
(5,664,856)
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
1,913,582
|
|
1,506,638
|
|
|
1,739,689
|
|
2,043,272
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
ITEMS
|
|
|
|
|
|
|
|
|
|
|
Gain on sale
of property, plant and equipment
|
|
2,200
|
|
-
|
|
|
2,600
|
|
105,366
|
|
Interest
and other income
|
|
3,217
|
|
7,033
|
|
|
21,414
|
|
33,368
|
|
|
5,417
|
|
7,033
|
|
|
24,014
|
|
138,734
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
1,918,999
|
|
1,513,671
|
|
|
1,763,703
|
|
2,182,006
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(522,026)
|
|
(415,461)
|
|
|
(547,614)
|
|
(614,472)
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
1,396,973
|
$
|
1,098,210
|
|
$
|
1,216,089
|
$
|
1,567,534
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.40
|
$
|
0.27
|
|
$
|
0.33
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per common share
|
$
|
0.40
|
$
|
0.27
|
|
$
|
0.33
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
3,481,162
|
|
4,022,587
|
|
|
3,672,858
|
|
4,318,128
|
|
Diluted
|
|
3,481,162
|
|
4,022,587
|
|
|
3,672,858
|
|
4,318,128
|
|
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,
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
|
$
|
1,216,089
|
|
$
|
1,567,534
|
|
Items not involving
an outlay of cash:
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
160,992
|
|
|
143,413
|
|
(Gain) on sale
of property, plant and equipment
|
|
(2,600)
|
|
|
(105,366)
|
|
Deferred
income tax expense
|
|
39,571
|
|
|
3,997
|
|
|
|
|
|
|
|
Changes in non-cash
working capital items:
|
|
|
|
|
|
|
(Increase) in
accounts receivable
|
|
(4,044,507)
|
|
|
(2,972,532)
|
|
(Increase)
decrease in inventory
|
|
(408,282)
|
|
|
1,173,224
|
|
(Increase) in
notes receivable
|
|
(561,813)
|
|
|
-
|
|
(Increase)
decrease in prepaid expenses
|
|
(942,541)
|
|
|
21,268
|
|
Decrease
(increase) in prepaid income taxes
|
|
101,686
|
|
|
(65,975)
|
|
Increase
(decrease) in accounts payable and accrued liabilities
|
|
1,448,292
|
|
|
(82,148)
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
(2,993,113)
|
|
|
(316,585)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Purchase of
property, plant and equipment
|
|
(207,469)
|
|
|
(8,112)
|
|
Proceeds from
sale of property, plant and
equipment
|
|
3,900
|
|
|
327,077
|
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
(203,569)
|
|
|
318,965
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Increase in
notes payable
|
|
680,707
|
|
|
-
|
|
Redemption of
common stock
|
|
(3,867,046)
|
|
|
(2,661,848)
|
|
|
|
|
|
|
|
Net cash (used in)
financing activities
|
|
(3,186,339)
|
|
|
(2,661,848)
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash
|
|
(6,383,021)
|
|
|
(2,659,468)
|
|
|
|
|
|
|
|
Cash, beginning of
period
|
|
9,652,310
|
|
|
6,097,463
|
|
|
|
|
|
|
|
Cash, end of
period
|
$
|
3,269,289
|
|
$
|
3,437,995
|
|
|
|
|
|
|
|
Contact: Charlie Hopewell,
President & CEO, (503) 647-0110
View original
content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-3rd-quarter-financial-results-301094325.html
SOURCE Jewett-Cameron Trading Company Ltd.