NORTH PLAINS, Ore.,
Jan. 14, 2022 /PRNewswire/ --
Jewett-Cameron Trading Company Ltd. (NASDAQ: 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
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-1st-quarter-financial-results-301461465.html
SOURCE Jewett-Cameron Trading Company Ltd.